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Full text of "Department of State bulletin"

ciVc^..9.3.5.3...J..a.3.Q.. 

Vol.41 




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THE DEPARTMENT OF STATE 




HE 

fFIClAL 

/EEKLY RECORD 

F 

NITED STATES 

OREIGN POLICY 



October 5, 1959 



PEACEFUL CHANGE • Address by Secretary Herter .... 467 



CHAIRMAN NIKITA S. KHRUSHCHEV OF THE 

SOVIET UNION ARRIVES FOR U.S. VISIT .... 476 



ROLE OF THE TEACHER IN PROMOTING PEACE 

AND UNDERSTANDING • Remarks by President 
Eisenhower 479 



U.S. REJECTS SOVIET PROPOSAL FOR CON- 
FERENCE ON LAOS • Department Statement .... 475 



For index see inside back cover 



THE DEPARTMENT OF STATE 




Vol. XLI, No. 1058 • Publication 6889 
October 5, 1959 



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Note: Contents of this publication are not 
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The Department of State BULLETIN, 
a weekly publication issued by the 
Public Services Division, Bureau of 
Public Affairs, provides the public 
and interested agencies of the 
Government ivith information on 
developments in the field of foreign 
relations and on the work of the 
Department of State and the Foreign 
Service. The BULLETIN includes se- 
lected press releases on foreign policy, 
issued by the White House and the 
Department, and statements and ad- 
dresses made by the President and by 
the Secretary of State and other 
officers of the Department, as well as 
special articles on various phases of 
international affairs and the func- 
tions of the Department. Informa- 
tion is included concerning treaties 
and international agreements to 
which the United States is or may 
become a party and treaties of gen- 
eral international interest. 

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



Peaceful Change 



Address hy Secretary Uerter ' 



Introduction 

This, my firet appearance before the General 
Assembly, gives me a welcome opportunity to 
express my strong belief and firm faith in the 
United Nations. 

There is a special personal satisfaction to me 
in being here for this purpose today. A little 
over 40 years ago I served on the staff of a dis- 
tinguished American President, Woodrow Wil- 
son, when he went to France to negotiate what we 
then hoped would be an enduring peace. Presi- 
dent Wilson held strong convictions concerning 
the need for an effective international organiza- 
tion to provide means for nations of the world to 
work together to solve their common problems. 

Twenty years ago this month the structure of 
peace that he had helped to build collapsed in 
war. 

In the backwash of World War II, however, 
man continued his quest for peace through inter- 
national organization. The states subscribing to 
the United Nations Charter at San Francisco in 
1945 sought to build a new and more effective 
instrument for this purpose. 

This meeting is one more step in our continuing 
effort to strengthen that Organization and to ful- 
fill its goals. 

If all of us devote ourselves faithfully to this 
task, and thus carry out the obligations of the 
charter, I believe that we can achieve the peaceful 
world which people everywhere earnestly desire. 

Peaceful Change 

To do this, we must deal with a major prob- 
lem that the League of Nations did not master 



' Made before the 14th session of the U.N. General As- 
sembly at New York, N.T., on Sept. 17 (press release 
656). 



and that the United Nations has not yet been 
able fully to resolve: tliat of preventing change 
through the use of aggressive force, while de- 
vising processes to accomplish needed and con- 
structive change through peaceful means. 

The United States accepts tlie principle of 
change. Our history, as evidenced by tlie recent 
admission of Alaska and Hawaii to the Union, 
proves the capacity of our system of government 
to meet and adjust to change. 

But the way in which change comes about is of 
overriding importance in the nuclear age. At- 
tempts to change the international situation 
through force could destroy us all. Total nuclear 
war has now become, quite literally, a suicidal 
enterprise. Peaceful progress, on the other hand, 
could open up new vistas for all mankind. 

The United Nations itself is one of the major 
instruments both for deterring force and for ac- 
complishing peaceful change. 

The United Nations helped to resist force when 
aggression threatened the Republic of Korea. It 
helps to deter force through its effort to create 
standby arrangements, which could enable na- 
tional contingents to be brought together quickly 
in meeting any future need for a United Nations 
force. We hope that members will respond posi- 
tively to the Secretary-General's efforts in this 
regard. 

The United Nations assists peaceful change 
through factfinduig and conciliation processes, 
which can help to prevent disputes from explod- 
ing into wider conflict. 

The United States stands ready to work peace- 
fully, within the framework of the charter, with 
all states which share our objectives of insuring 
peaceful progress. 



Oc/ober 5, 7959 



467 



The Past Year 

The past year has seen continued movement 
toward this goal of peaceful change, on the one 
hand, and renewed threats of violence which 
would impede its fulfillment, on the other. 

Progress has been encouraging, in comparison 
with the situation existing at this time a year 
ago, in five major areas. 

In the Middle East a period of relative quiet 
prevails. This is in sharp contrast to the crisis 
of a year ago, when the Assembly had to take 
important emergency measures. The enlightened 
actions of the states in the area during the past 
year have helped to improve the situation. The 
agencies of the United Nations and the outstand- 
ing leadership and diplomacy of the Secretary- 
General have also contributed significantly to the 
lessening of tensions and the development of 
greater stability. 

We regard these trends as a hopeful portent that 
further progress can be made on the problems 
which still confront this area. 

The future welfare of the Palestine refugees is 
one such problem. It will be an important item 
for consideration at this Assembly. Progress 
toward a satisfactory solution of this tragic prob- 
lem is important not only to the human beings 
directly involved but also to cx)ntinued peace and 
stability in the area as a whole. 

Another problem in this area has arisen with 
regard to passage through the Suez Canal. The 
United States continues to support the principle 
of freedom of passage, as endorsed by the United 
Nations. We are confident that, if those imme- 
diately concerned seek to reconcile their differ- 
ences in a spirit of mutual accommodation, 
progress can be made toward a solution. 

Africa is an area where there has also been 
steady forward movement. Four new African 
states are to achieve independence in the coming 
year. Progress toward self-government is a 
development which the United States welcomes, 
in accordance with its historic policy tliat all 
peoples should have independence who desire it 
and are able to undertake its responsibilities. 

Political advancement in the non-self-govern- 
ing and trust territories of Africa is a tribute to 
the imagination, good will, and skill of the peo- 
ples of those territories and of the powers that 
administer them. It is also a tribute to the 
encouragement and assistance given by the United 



Nations and the specialized agencies to the 
advancement of these territories. 

In Europe the North Atlantic Treaty Organi- 
zation has continued to grow in peaceful power 
during the last year. It now represents an even 
more formidable bulwark of peace in support of 
the principles of the charter. President Eisen- 
hower's recent visit to the NATO area ^ has pro- 
duced new evidence of the unity, strength, and 
purpose of the Atlantic Commvmity. 

We welcome particularly the progress that has 
been made during the past year toward a just 
solution of the Cyprus problem, which directly 
concerns three of the NATO countries. These 
countries and the people of Cyprus are to be 
congratulated on tliis progress. 

In Latin America important steps have been 
taken in the last year to strengthen the peace 
machinery of the Organization of American 
States. The recent conference of the Foreign 
Ministers of the American Republics in Santiago ' 
is an encouraging example of how a regional 
organization can complement the work of the 
United Nations. It clearly demonstrated the 
determination of the American Republics to main- 
tain peace in the hemisphere through common 
action on problems creating international tensions. 

The Far East has also seen continued progress 
during the past year in promoting domestic wel- 
fare and in strengthening security. War-torn 
economies have been, for the most part, rebuilt and 
the foundations laid for further progress. 

We regret that the Republics of Korea and Viet- 
Nam are still excluded by the veto of one power 
from United Nations membership, although both 
have been found fully qualified by the General 
Assembly. 

The member countries of the Southeast Asia 
Treaty Organization have carried forward their 
programs for economic, social, and cultural ad- 
vancement. SEATO also plays a vital role in the 
collective defense of the area and is now carefully 
watching events in Laos. 

Side by side with these encouraging develop- 
ments, which aug-^ir well for peaceful and con- 
structive change, events in the past year have un- 
derlined the continuing danger posed by attempts 



' For backKFOund, see Bulletin of Sept 14, 1959, p. 371 ; 
Sept. 21, V^T^% p. 403; and Sept. 28, 1959, p. 4.3r). 
' Ihid., Aug. 31, 1959, p. 299. and Sept. 7, lOr.O. p. 342. 



468 



Depatimenf of Sfafe BxiWet'in 



to mold the international situation through the 
threat or use of force. 

Most recently the freedom and independence 
of Laos have been threatened by forces from out- 
side its borders. The Security Council subcom- 
mittee is now in Laos. We hope tliat it will not 
only succeed in collecting the facts but also by its 
presence contribute to easing a potentially danger- 
ous situation. 

In this circumstance there is no need for a con- 
ference as pi'oposed by the U.S.S.R. Such a con- 
ference would be disruptive and would ignore the 
authority of the United Nations.^ 

This recent action of the Security Council dem- 
onstrates the ability of the United Nations to act 
quickly in a case involving possible efforts to sub- 
vert the freedom and undermine the security of 
member states. 

The LTnited States is pledged under the charter 
to resist aggression. It will fulfill this pledge 
without equivocation. We will support the Royal 
Lao Government in its own efforts to preserve 
independence. 

In Tibet we are confronted by the revolting 
spect^^cle of the brutal Cliinese Communist repres- 
sion of the fundamental human rights of the 
Tibetans. The Dalai Lama under threat of force 
was driven from his country. From his exile in 
India, he has told the world a tragic story of per- 
secution, of forced labor, of deportation, of exe- 
cutions in such numbers as to threaten the sur- 
vival of the Tibetan race. Yet the Tibetans' only 
crime was their desire to live in peace and free- 
dom. This is a matter which is of deep concern 
to the LTnited Nations. Certainly this Organiza- 
tion must speak out in clear terms in the face of 
such events. 

In the Taiwan Strait area, where last year at 
this time we were seriously concerned by the mili- 
tary action of the Chinese Communists, Commu- 
nist China has continued its sporadic campaign of 
military harassment. Despite months of negotia- 
tions, it refuses to renounce the use of force. 

In Korea the Chinese Communist regime con- 
tinues to reject the principles for unification that 
would assure the freedom and independence of a 
united Korea. It has flouted the terms of the 
armistice in Korea. It still stands condemned as 



In supporting efforts to subvert the will of the 
free people of Laos, in attempting to exterminate 
the people of Tibet, and in its incursions into 
India, the Chinese Communist regime has demon- 
strated more clearly in the past year tlian at any 
time since its aggression in Korea its complete un- 
fitness to be admitted to this Organization. We 
are confident that the members of this Assembly 
will continue to resist efforts to obtain China's 
seat in the United Nations for the Communist 
regime. 

That seat is honorably occupied by the repre- 
sentative of the Republic of China, a charter 
member of this Organization. That Republic 
has given renewed evidence of its continuing dedi- 
cation to the principles of this Organization in 
the past year by its historic declaration that it 
would rely primarily upon peaceful principles 
and not upon force to secure the freeing of the 
mainland. 

Hungary is another area where the effects of 
the threat and use of violence are manifest. The 
tyrannical rule which was imposed on that un- 
happy country by the ruthless use of outside 
force still obtains. Every effort of Sir Leslie 
Munro, the Assembly's Special Representative, to 
investigate the situation firsthand has been re- 
buffed by the puppet Hungarian regime, which 
Soviet troops imposed and now maintain.^ The 
continued, deliberate defiance by Hungary of this 
Organization augurs ill for our continuing efforts 
to secure international peace and security. 

These events of the past year must be viewed in 
perspective. The progress that has been achieved 
testifies to the opportunities which lie ahead. 
Continuing threats of force and violence under- 
line the dangers which still confront us. 

To avert these dangers and fulfill those oppor- 
tunities, we must seek to promote peaceful change 
which will lay the basis for a just and lasting 
peace. We must seek such change in political, 
military, economic, and other fields. 

Political Change: Germany and Berlin 

We will always negotiate with other states tx) 
achieve peaceful political change which derives 
from the freely given consent of the peoples con- 
cerned. Our approach to the Geneva negotiations 



* For a U.S. statement, see p. 475; for background, see 
Bulletin of Sept. 28, 1959, p. 456. 



° For a statement of July 9, 1959, by Sir Leslie Munro 
on steps taken on the question of Hungary, see U.N. press 
release GA/1807. 



October 5, J 959 



469 



on Germany and Berlin reflected this philosophy 
in concrete terms. 

I spent 10 long weeks in Geneva with the 
Foreign Ministers of France, the United King- 
dom, and the U.S.S.R. in seeking agreement on 
the problem of a divided Germany and a divided 
Berlin. 

The Geneva conference met against the back- 
drop of a potential crisis over Berlin. This had 
been artificially precipitated by a Soviet threat to 
take unilateral action against West Berlin. It 
was only after this threat had been withdrawn 
that the Western Powers agreed to negotiate in 
the interests of peaceful change. 

The Governments of France, the United King- 
dom, and the United States had as their purpose 
at Geneva to secure the reunification of Germany 
in freedom. Such peaceful change would have 
solved the Berlin question on a lasting basis by 
restoring Berlin to its rightful place as the capital 
of a united Germany. 

To this end the Western Powers put forward 
a comprehensive Western peace plan." That plan 
was designed to achieve the reimification of Ger- 
many according to the will of the Gennan people 
and on a basis which took into account the ex- 
pressed concerns of the Soviet Union. 

The Western peace plan was a phased plan 
which provided time for a mixed German commit- 
tee to draft an electoral law and to work out pro- 
posals for increased teclinical contacts between 
the two parts of Germany and for freedom of 
movement and respect for hiunan rights through- 
out all of Germany. While this process went on, 
there would be related preliminary steps for the 
exchange of military information, for the limita- 
tion of overall strength of the forces of the Four 
Powei-s, and for measures of insiiection against 
surprise attack. 

In the next phase safeguarded elections for an 
all-Gei-man assembly would be held. This all- 
German assembly would draft a constitution on 
the basis of which an all-Gernian government 
would be formed. Tliat government would then 
be responsible for negotiating an all-German 
peace treaty. 

In this phase further disarmament and security 
measures were contemplated, including the estab- 
lislunent of a zone on either side of a line to be 



"For text, see Bullktin of Juuo 1, 19.1!), \). 77!). 
470 



mutually determined in which there would be 
agreed ceilings for the indigenous and nonindige- 
nous forces. 

Moreover, if the all-German government de- 
cided to adhere either to NATO or the Warsaw 
Pact, additional security arrangements were to be 
made. These would contemplate special measures 
regulating the disposition of forces in the area 
closest to the eastern frontier of a united Ger- 
many. They would provide for agreements be- 
tween the Four Powers and other European coun- 
tries about joint reaction against aggression. 

Unhappily — and I use the word advisedly — the 
Soviet Foreign IMinister [^Vndrei A. Gromyko] 
rejected tlie Western peace plan out of hand. He 
seemed disinterested in studying this carefully de- 
vised progi-am, to which the Western Governments 
had devoted many montlis of i^reparation. 

The conference then turned to the question of 
how to arrive at a modus vivendi on Berlin which 
would ease the tensions that the Soviet Union 
itself had created. 

For this purpose the Western Powers made 
many proposals. All of them seemed to meet as- 
pects of the problem concerning which the Soviets 
complained. None jeopardized the freedom and 
the security of the people of West Berlin. 

What we must never forget is that the problem 
of West Berlin is not really a legal problem or an 
abstract case history in political science. It is the 
matter of the lives and freedom and happiness of 
these more than 2 million people who live in West 
Berlin, people who have shown by their courage 
and the fruits of their labor the blessings that 
freedom brings. 

These people are surrounded by territory and 
forces under the control of an unfriendly regime. 
They rely on the presence of the token contingents 
of American, British, and French troops for their 
security. 

The long-drawn-out discussion of this problem 
of Berlin resulted in no agreement. The negotia- 
tions did, however, usefully isolate the areas of 
possible agreement. That is why the Foreign 
Ministers of France, the United Kingdom, and 
the United States have some hope that a resumed 
foreign ministers conference can agree on arrange- 
ments for Berlm which would s;ifeguard the fu- 
ture of tlie West Berliners. 

Through their dedication to this continuing ne- 
gotiation, the Western Powers evidence their sup- 

Deparfmenl of Sfofe Bulletin 



port for the process of peaceful cliange in the 
political field. 

Military Change: Arms Limitation and Control 

Acceptance of this process would be of at least 
equal importance in the military field. 

Perhaps the greatest contribution that could 
be made to peaceful change would be for the 
powers to move from reliance on unlimited arms, 
competition to reliance on safeguarded agreements 
as a means of preserving national security. 

During the past year there have been both 
promising and disappointing developments with 
respect to our efforts in this field, which are of 
such critical importance to the future of all man- 
kind. 

The United States took the initiative in propos- 
ing a technical conference on measures to guard 
against surprise attack. "Wliile the problems are 
understood more clearly as a result, we regret 
that little progi-ess was made. 

The United States and United Kingdom con- 
tinued the negotiations begun a year ago with 
the U.S.S.R. for an agreement on the discontinu- 
ance of nuclear weapons testing. There is some 
progress to report. Tlie Three Powers liave 
agreed on a number of details which would have 
to be a part of a full accord, and technical agree- 
ment has been recently reached on the means of 
detecting and identifying nuclear explosives at 
high altitudes and in outer space. 

However, there are still three central issues on 
which agreement has not been achieved. They 
all relate to effective inspection, which remains the 
key to agreement. 

First, there is the problem of staffing control 
posts — "the listening posts" that would be estab- 
lished to register data which might indicate an 
unauthorized nuclear explosion. 

Tlie Soviet Union has insisted that a major 
portion of the pei-sonnel at each control post must 
be from the host country, a form of "self-inspec- 
tion" which we cannot accept. 

The United States and the United Kingdom 
have proposed that all technical and supervisory 
positions at each post be staffed on the basis of 
one-third U.S. or U.K. specialists, one-third So- 
viet specialists, and one-third specialists from 
countries other than these three. This would allow 
for reasonable liost-country representation. It 
would be a genuinely international staffing pattern 



in which all countries could have confidence. 
Finally, it would provide a role for other mem- 
bers of the United Nations who have a deep in- 
terest in assuring a successfully operating system. 

The second key control issue is the matter of 
on-site inspections required to identify suspected 
underground explosions. 

Wliile the United States does not object to plac- 
ing a limit on these inspections, we believe that 
the nmnber should be based on a scientific judg- 
ment, not on political arguments. 

To assist in making this judgment we have sub- 
mitted scientific data bearing on the complex jirob- 
lem of detecting underground explosions and de- 
termining whether they are nuclear explosions 
or eartliquakes.' We remain convinced that this 
information should be considei-ed, although the 
Soviet Union has thus far refused to do so. 

The third key issue in the negotiations is the 
veto. 

The Soviet Union wants the veto in one form or 
another. The United States firmly believes that 
any control system which could be frustrated 
in its day-to-day operations by the veto power 
would be worse than useless. It would create the 
illusion and not the reality of control. 

These are the principal issues. It is clear that 
the points at issue are real. They cannot be 
ignored. 

We hope that these three issues can be resolved 
and that an agreement can be achieved for a 
comprehensive test ban. We will pursue this ap- 
proach with vigor, but there is another approach 
if the Soviets are not willing to agree to the neces- 
sary means of verification. 

On April 13 of this year President Eisenhower 
offered to Chairman Khrushchev to enter immedi- 
ately into an agreement to ban tests within the 
atmosphere and under water, if the Soviet Union 
remained unwilling to accept effective safeguards 
for a complete discontinuance of nuclear weapons 
tests.* 

This would be only a first step toward the ulti- 
mate objective of a total ban. However, it would 
represent a very good start. It would also ease 
concern over levels of radioactivity. Tliis offer 
still stands. 



' For background, see ibid., July 6, 1959, p. 16. 
' For text of the President's letter, see iMd., May 18, 
1959, p. 704. 



October 5, 7959 



471 



In the meantime, President Eisenhower re- 
cently announced that the 1-year unilateral ban 
on tests which the United States voluntarily un- 
dertook last October would be continued to the 
end of this year.** Our hope is that, if we allow 
a reasonable extension of time for the negotiations 
to proceed, significant progress can be made. 

These are the principal developments regard- 
ing a possible agreement on a comprehensive test 
ban. 

But the question of disarmament is much 
broader than suspension of nuclear testing. What 
we earnestly seek is the general limitation and 
control of armaments and armed forces. The de- 
gree to which we succeed may determine man's 
future. There would be growing danger in an 
indefinite continuation of the arms race. We must 
use all of our imagination and ingenuity to devise 
a way of controlling this race, to prevent it from 
exploding into nuclear conflict. 

In an effort to renew disarmament negotiations, 
the United States and the United Kingdom and 
France have agreed with the Soviet Union, with 
which they share a major responsibility for reach- 
ing a solution on this problem, to resume discus- 
sions on disarmament early next year.'" These 
four powers have invited a small group of other 
states to join them. 

The United States regards the coming negotia- 
tions as a major opportunity. We hope that the 
Soviet Government will view them with equal 
seriousness. Successful negotiations could not 
only open new avenues of progress toward limita- 
tion and control of armaments but also pave the 
way for settlement of other outstanding problems. 

Peaceful Uses of Outer Space 

Eecognizing that progress in disarmament 
might be slow, however, the United States has 
urged that peaceful uses of outer sjDace be con- 
sidered as a separate step toward constructive 
change. 

Last year my distinguished predecessor, Jolin 
Foster Dulles, proposed that the General As- 
sembly take the first step toward establishing a 
framework for international cooperation in this 



field." The United States hoped then that it 
would prove possible for all members to share in 
the benefits that seem certain to emerge from this 
challenging new frontier of human activity. 

Recent events have demonstrated how rapidly 
this frontier is being crossed. The American 
"paddlewheel," Explorer VI, still circles the 
earth 6 weeks after its launching, sending mes- 
sages back to earth with energy from the sun. 
We believe this development advances the day 
when nations of the world will be linked by a com- 
munications network extending to the heavens. 

The Soviet moon probe — certainly a great ac- 
complishment — foreshadows the early extension 
of terrestrial problems out into the universe. It 
also warns us to speed up our efforts to obtain 
peace on earth. And it signals the pressing need 
to get on with international arrangements to make 
a start on the regulation of man's activities away 
from his earthly home. 

In the early years after the development of 
atomic energy the United States tried long and 
hard to interest the U.S.S.R. in an international 
approach to harnessing this natural force of such 
great danger and promise to humanity. The 
U.S.S.R. refused to cooperate, apparently believ- 
ing that its late start in the atomic energy field 
would prejudice its national interests if an inter- 
national approach were adopted. The deadly arms 
race of the past decade stands as an ugly witness 
to the human tragedy of that Soviet non- 
cooperation. 

Now humanity is on the threshold of another 
and perhaps more fateful technological develop- 
ment — the penetration of outer space. Again the 
United States has called for an international ap- 
proach. This time surely the U.S.S.R. camiot 
plead a lack of Soviet advancement in this tech- 
nology. But we see little sign of any Soviet dis- 
position to cooperate as yet. The Soviets have 
declined to participate in the work of the United 
Nations conunittee this past year.^- 

Arguing that only the U.S.S.R. and the United 
States were carrying on activities in tlie field of 
outer space, the Soviet Union contended that the 
committee should be made up of an equal number 



'Ibid., Sept. 14, 1959, p. 374. 

'° For text of a Four Power communique on disarma- 
ment, 6ee ibid., Sept. 28, 1959, p. 438. 



" For an address by Secretary Dulles before the 13th 
General Assembly, see ibid., Oct. 6, 1958, p. 525. 

"For U.S. statements in the Ad Hoc Committee on 
Peaceful Uses of Outer Space, see i6i<7., June 15, 1959, 
p. 883 ; June 29, 1959, p. 972 : and July 27, 1959, p. 138. 



472 



Department of State Bulletin 



of states from these "two sides." This concept 
was rejected by the Assembly. The world is not 
divided into two "hostile camps," as the Soviet 
Union maintains. The world is divei"se. This 
concept is inherent in the United Nations. 

The United States believes that major commit- 
tees of the United Nations should continue to re- 
flect the principle of fair geographical represen- 
tation. This principle derogates in no way from 
the relative contribution which those states with 
superior technical capacity can make. 

We hope that the Soviet Union will join in the 
cooperative efforts of the United Nations. There 
could be no more dramatic illustration of a spirit 
of cooperation in the world today as we stand at 
the tlireshold of the space age than for this As- 
sembly to act unanimously in this field. This 
would be a major step forward in the process of 
peaceful change. 

Economic and Social Change 

Peaceful change in the economic and social field 
is also of key importance if our purposes are to be 
fulfilled. 

The United Nations is contributing to social 
progress through its activities in such fields as 
health, refugee assistance, narcotics, and the Chil- 
dren's Fimd. 

Economic improvement can be promoted by 
healthy competitive trade, which helps assure 
greater enjoyment of the fruits of economic activ- 
ity, and by continuing economic development. 

Last year Mr. Dulles proposed that the nations 
dedicate the year 1959 to taking stock of their 
current accomplishments in the field of economic 
development and to charting long-term courses of 
action. The United States has now taken the 
major steps which Secretary Dulles said that we 
would take in this field. 

First, the United States has vigorously pressed 
its development financing programs. The Con- 
gress has appropriated additional funds for the 
Development Loan Fund. The flexibility possi- 
ble in the administration of tliis Fund enhances 
its importance as a source of loans for less devel- 
oped countries. 

Second, the United States and other nations 
have doubled their subscriptions to the Inter- 
national Bank for Reconstruction and Develop- 
ment and have increased their subscriptions to 



the International Monetary Fund by 50 percent 
in the past year. 

Third, the United States will propose to the 
forthcoming meeting of the Governors of the 
International Bank a resolution calling for defi- 
nite steps toward the prompt cstablislmient of an 
international development association. Such an 
organization will provide a new and effective 
means of financing in less developed countries 
sound high-priority projects which cannot be ade- 
quately aided under existing criteria of the 
International Bank. 

Fourth, LTnited States acceptance of the agree- 
ment for the establishment of the Inter-Ameri- 
can Development Bank has been approved by our 
Congress. Establisliment of this institution will 
help to hasten the development of the countries 
of the Western Hemisphere. 

Fifth, the United States continues and will 
continue, in cooperation with other member states, 
to give full support to existing organizations 
devoted to the extension of technical assistance. 
We are gratified that the newly established Spe- 
cial Fund has taken hold so quickly and begun its 
important operations. It is my strong hope that 
other member governments will find it possible 
to increase their contribution to both the Ex- 
panded Program and the Special Fund in order 
that the initial goal of $100 million for both 
programs can be reached as soon as possible. 

In these and other ways the United States dedi- 
cates its resources and energies to the only kind 
of world war that any of us can hope to win : war 
on poverty, on disease, and on illiteracy. 

The fact that more than a billion and a half 
people of this world live in dire want poses a 
challenge to which we must respond. To try to 
escape this challenge would deny the common 
bond that joins all human beings regardless of 
race, sex, language, or religion. 

Make no mistake about it: Wherever men de- 
spair of being able to meet their needs through 
peaceful means, there will be found the seeds of 
tyranny and conflict. If peaceful change is to be 
accomplished in the political and military field, it 
must also go forward at an increasing pace in the 
economic field. 

The Need for "Open Societies" 

There is one other avenue to peace and peace- 
ful change which I would like to mention before 



Ocfober 5, 1959 



473 



I close, Mr. President. This avenue is to achieve 
that "world community of open societies" which 
President Eisenhower stressed at the 1958 emer- 
gency session.^'' This "openness" has long been a 
fundamental characteristic of American society 
and of many otlier free societies. The achieve- 
ment of "open societies" could make an important 
contribution to peace. 

But it must be recognized that tliis goal cannot 
be fully acliieved as long as governments and 
regimes disregard the basic principles of inter- 
national conduct. Realizing this, we I'egret the 
need for maintaining safeguards in the interest of 
peace and stability. For example, the concept of 
"open societies" cannot be fully achieved as long 
as the Chinese Communist regime uses increased 
contacts to subvert and to undermine neighboring 
peoples and countries. 

Witliin a number of other comitries, artificial 
barriers still exist to free, open, and friendly 
connnunications. 

There are barriers of secrecy and of artificial 
restrictions. 

There is censorship of tlie printed and broad- 
cast word. 

There is jamming of radio broadcasts from 
without, jamming based on fear that uncensored 
information may incidentally enter. Let me say 
right here, however, how heartened we have been 
to note that Soviet jamming of the Voice of 
America ceased on September 15. We profoundly 
hope that this beneficial change may prove of 
long duration. 

There are rules which severely limit contact of 
nationals with foreign visitors or travel from one 
part of the country to another. 

Behind such barriers are bred images, false re- 
ports, and false fears of imaginary enemies. 
These conditions feed upon themselves. They 
contribute to needless arming and counterarming. 
They can give a powerful impetus to the spiral 
tliat leads toward war. So long as such barriers 
exist to the flow of news and information into a 
country, we cannot even begin to weave the fabric 
of lasting peace. 

Openness is particularly important in those 
countries possessing great destnictive power and 
which bear a great responsibility for peace. 

Today, when we take stock of the situation, 
two impressions stand out. 



First, encouraging beginnings in breaking 
through these barriers have been made. 

Second, there are additional areas in which 
further removal of restrictions would be helpful 
to the cause of peace. 

Recent developments within the Soviet Union, 
despite their limited scope, provide a glimmer of 
hope that the Soviet Government may be willing 
to permit a freer exchange of ideas and informa- 
tion between its own people and other peoples. 
These developments permit the hope that the 
Soviet Govermnent may now be prepared to go 
even further. They prompt me to make a pro- 
posal comparable to the one tlie United States put 
forward during a Security Council session last 
year ^* — that the Soviet radio transmittere sus- 
pend their jamming sufficiently to permit the 
Soviet people to hear in full the proceedings of the 
14th session of the General Assembly now begin- 
ning. 

The debates in the Assembly are extremely use- 
ful in indicating tlie numerous and diverse view- 
points which are held on a variety of international 
issues. Public knowledge of these \'iewpoints 
cannot be regarded as subversive to any govern- 
ment regardless of its structure or policies. 

Conclusion 

We have thus sought and continue to seek peace- 
ful change through many approaches. 

These efforts draw force and inspiration from 
tlie work of the United Nations. Under its char- 
ter the United Nations is pledged to resist aggres- 
sive force. It can be the real catalyst in the 
process of constructive change. 

In assisting this process all members of the 
United Nations, large and small, have a voice. 
Bringing diverse viewpoints to bear, while re- 
specting each other's interests and viewpoints, 
the members of the United Nations are united in 
a common effort, in the words of the preamble of 
the charter, "to save succeeding generations from 
the scourge of war, which twice in our lifetime 
has brouglit untold sorrow to mankind" and "to 
promote social {)rogress and better standards of 
life in larger free<lom." 

The principles of the charter directly reflect 
the precepts of all the great religions. Let us 
then proceed to the task of fulfilling these prin- 



' lUd., Sept. 1, 1958, p. 337. 



" For a statement by Ambassador Henry Cabot Lodge 
in the Security Council on Aug. 7, 1958, see I'.S./U.N. 
press release 2079. 



474 



Departmenf of Sfafe Bulletin 



ciples. In the words of Abniliain Lincoln ". . . 
with firmness in the right as God gives us to see 
the right, let us strive on to tinisli the work we 
are in ... to do all which may achieve and cher- 
ish a just and lasting peace. . . ." 

The United States here rededicates itself to this 
noble effort to achieve peace and justice for all 
mankind. 



Secretary Herter and Advisers 
Depart for 14th General Assembly 

Press release 657 dated September 17 

Secretary of State Christian A. Herter de- 
parted from Washington on September 17 in 
order to attend the 14th General Assembly of 
the United Nations in New York City. The fol- 
lowing ofHcers of tl\e Department are in the 
Secretary's party : 

Senior Advisers 

Livingston T. Merchant, Deputy Under Secretary for 

Political Affairs 
Francis O. Wilcox, Assistant Secretary for International 

Organization Affairs 
Andrew H. Berding, Assistant Secretary for Public 

.-Vffairs 
J. Graliam Parsons, Assistant Secretary for Far Eastern 

Affairs 
Josepli C. Satterthwaite, Assistant Secretary for African 

Affairs 

Advisers 

William W. Scranton, Special Assistant to the Secretary 

of State 
Max V. Krebs, Special Assistant to the Secretary of State 
Joseph J. Sisco, Deputy Director, OflSce of United Nations 

Political and Security Affairs 



U.S. Rejects Soviet Proposal 
for Conference on Laos 

•Department Statement ^ 

Press release 651 dated September 15 

The Department of State's attention has been 
directed to a statement by the Soviet Government 
on the situation in Laos, as issued by TASS on 



'For previous Department statements on. the situation 
in Laos, see Bulletin of Aug. 24, 1959, p. 278; Sept. 7, 
1959, p. 344; Sept. 14, 1959, p. 374; and Sept. 21, 1959, 
p. 414. 



September 14, 1959. The statement proposed a 
"conference to be called without delay by the coun- 
tries which attended the 1954 Geneva Conference 
on Indochina to consider the Laos situation." 

The Geneva conference of 1954 was called to 
deal with the means of ending hostilities in Indo- 
china brought about, on the one hand, by the de- 
mands for independence by the three former Indo- 
chinese states and, on the other, by a general 
Conmiunist effort to extend control in southeast 
Asia. Although the United States was not a 
party, it has respected the Geneva agreements. 

During the 5 years since the Geneva agi-eeraents 
were signed, the free countries of southeast Asia 
have made remarkable progress toward stability 
and security, as well as economic and social ad- 
vancement. Even the small Kingdom of Laos, 
despite the many handicaps it faced, was begin- 
ning by the end of last year to achieve the degree 
of stability and security necessaiy for economic 
and social advancement. 

It has become clearer during recent months 
that this stabilization process did not comport 
with the plans of those who had expansionist de- 
signs in southeast Asia. The trouble in Laos has 
been caused by those who would disrupt that na- 
tion and reverse the forward trend. 

Laos would be a quiet spot today were it not 
for elements within the country and abroad which 
are trying to undermine its government. The 
solution of this situation is not to be found in 
international conferences but in the cessation of 
intervention and subversion of the Kingdom of 
Laos. 

The Government of Laos, as the Soviet Govern- 
ment is well aware, has strongly opposed the 
reconvening of the International Control Com- 
mission in Laos. The Eoyal Lao Government has 
consistently and justifiably held that it has ful- 
filled the provisions of the Geneva agreements of 
1954 and understandably resents any suggestion 
that it is not a fully sovereign government and 
that it is not entitled to the same rights of full 
independence and self-protection that are the 
inherent rights of all nations. The holding of a 
new Geneva conference would inevitably suggest 
to the Royal Lao Government the imposition of 
new disabilities and new external interferences. 
Laos, like every nation, seeks to control its own 
destiny. 

The fact that the Lao Conimmiists and their 



October 5, J 959 



475 



outside supporters are today creating disorder in 
Laos is surely no reason why they should further 
profit through the disruptive influences of a new 
Geneva conference. We believe that the recent 
action of the Security Council ^ opens the best 
avenue to tranquilizing the situation in Laos, and, 
though the Soviet Union opposed the Security 



Council's action, we believe all U.N. nations will 
come to see the merits of this approach to peace 
in Laos. Since the United Nations has already 
taken action on the Laos issue, the proposal for 
a second Geneva conference would also seem to be 
unnecessary and disruptive. Moreover, it would 
ignore the authority of the United Nations. 



Chairman Nikita S. Khrushchev of the Soviet Union 
Arrives for U.S. Visit 



Nikita S. Khrushchev, Chairman of the Council 
of Ministers of the Union of Soviet Socialist Re- 
fublics, arrived in the United States for a 13-day 
visit on Septeniber 15? Following are texts of a 
joint statement released at Washington, D.C., on 
September 15 at the conclusion of preliminary 
talks between President Eisenhower and Chair- 
man Khrushchev, the exchange of greetings at 
Andrews Air Force Base, and the toasts exchanged 
at the state dinner at the White House on Septem- 
her 15, together with a Department statement con- 
cerning a meeting on September 16 between Sec- 
retary Herter and Foreign Minister Andrei 
Gromyko. 



JOINT STATEMENT 

White House press release dated September 15 

President Dwight D. Eisenhower and the Chair- 
man of the Council of Ministers of the U.S.S.E., 
Nikita S. Khrushchev, met for nearly two hours 
this afternoon. They were accompanied by the 
Vice President, the Foreign Ministers and other 
advisers. The President and the Chairman re- 
viewed the relationship between the two countries 
and exchanged views in general terms on interna- 
tional problems. They agreed on the general 
line of their further discussions, which will take 
place on all these subjects following the Chair- 
man's return from his visit throughout the coun- 



" For U.S. statements made in the Security Council and 
text of the resolution, .see ihxil., Sept. 28, 19.'')0, p. 4.50. 

° For names of niembers of the olliciai party, .see Bul- 
letin of Sept. 21, 1959, p. 413 ; for the itinerary, see ibid., 
Sept. 14, 1959, p. 373. 



try. They plan to meet for this purpose at Camp 
David * from Friday evening, September 25th, 
until noon on September 27th. 

The atmosphere of the talk was friendly and 
frank with agreement that the discussions should 
continue in this spirit to seek ways to achieve a 
better understanding. 

The following were present : 

The President 

The Vice President 

Tlie Secretary of State 

The United States Ambassador to the U.S.S.R. 

Henry Cabot Lodge, Jr. 

Foy Kohler, Deputy Assistant Secretary of State 

Nilsita S. Khrushchev, Chairman of the Council of Minis- 
ters of the U.S.S.R. 

Andrei Gromyko, Minister of Foreign Affairs of the 
U.S.S.R. 

The U.S.S.R. Ambassador to the United States, Mikhail 
Menshikov 

A. Soidatov, Chief, American Department of the Ministry 
of Foreign Affairs 



EXCHANGE OF GREETINGS 
President Eisenhower 

White House press release dated September 15 

Mr. Chairman, I welcome you, your family, 
and party to the United States. I am especially 
happy that Mrs. Khrushchev and other mem- 
bers of your family are accompanying j-ou. On 
behalf of the Government and of the people of 
America, I express the hope that you and they 



* The President's retreat in the Catoctin Mountains in 
Maryland. 



476 



Deparfmenf of Sfafe BuUetin 



will lind your stay among us interesting and 
useful. 

I am looking forward to the talks we will have 
together. Although we shall not be negotiating 
any issues affecting the interests of other coun- 
tries, I trust that a full and frank exchange of 
views on many subjects may contribute to better 
understanding, on both sides, of unresolved in- 
ternational problems. 

During your stay here you will have an oppor- 
tunity to see something of our country, our in- 
stitutions, our customs, and our people. You will 
have a chance to speak with individuals and 
groups from all walks of life. 

The political and social systems of our two 
countries differ greatly. In our system the peo- 
ple themselves establish and control the Govern- 
ment. You will find, I am sure, that they, like 
your people, want to live in peace with justice. 
Although they have built and maintain strong 
security forces, it is clear that because our people 
do want peace and because they are the decisive 
influence in basic actions of our Government, ag- 
gression by this Nation is an impossibility. 

Just as 1 hope that I may later visit and learn 
more about your people, I know that you seek 
better understanding of our system, of our peo- 
ple, and of the principles which guide and moti- 
vate them. I assure you that they have no ill 
will toward any other people, that they covet 
no territory, no additional power. Nor do they 
seek to interfere in the internal affairs of any 
other nation. 

I most sincerely hope that as you come to see 
and believe these truths about our people there 
will develop an improved basis on which we can 
together consider the problems that divide us. 

After all, our common purpose should be, al- 
ways, a just, universal, and enduring peace. It 
is in this spirit, Mr. Chairman, that I greot you 
and welcome you to Washington and the United 
States. 

Chairman Khrushchev 

Unofficial translation 

Mr. President, ladies and gentlemen: Permit 
me at this moment, on first setting foot on Ameri- 
can soil, to thank Mr. Eisenhower for the invita- 
tion to visit your country and everyone present 
for the warm welcome accorded us, representa- 
tives of the Soviet Union. 



Russians say: "Every good job should be 
started in the morning." Our flight began in 
Moscow this morning, and we are glad that our 
first meeting with you on American soil is taking 
place on the morning of the same day. As you 
see, our countries are not so distant from each 
other. 

I accepted the invitation of the President of 
the United States to make an official visit to your 
country with great pleasure and gratitude, and 
I will be glad to talk with statesmen, representa- 
tives of the business world, intellectuals, workers, 
and farmers and to become familiar with the life 
of the industrious and enterprising American 
people. 

For our part, we will be glad to receive Mr. 
Eisenhower, his family, and those who will ac- 
company him in the Soviet Union shortly. We 
will give the President a most cordial welcome 
and every opportunity to become familiar with 
the life of the Soviet people. 

We have always considered reciprocal visits and 
meetings of representatives of states useful. Meet- 
ings and conversations between the statesmen of 
our two great countries, the Soviet Union and 
the United States of America, are especially im- 
portant. 

All the peoples are profoundly interested in the 
maintenance and consolidation of peace, in peace- 
ful coexistence. War does not promise anyone 
any good; peace is advantageous to all the na- 
tions. This is the basic principle which, we be- 
lieve, the statesmen of all countries should be 
guided by in order to realize the aspirations of 
the peoples. 

We have come to you with an open heart and 
good intentions. The Soviet people want to live 
in friendship with the American people. There 
are no obstacles to having the relations between 
our countries develop as relations between good 
neighbors. The Soviet and the American people, 
like other peoples, fought well together in the 
Second World War against the common enemy 
and broke his backbone. In peaceful conditions 
we have even more reason and more possibilities 
for friendship and for cooperation between the 
peoples of our countries. 

Shortly befoi-e our meeting you, Mr. President, 
the Soviet scientists, engineers, technicians, and 
workers filled our hearts with joy by launching 
the rocket to the moon. Thus has been blazed 



October 5, 7959 



/ 



477 



a road from the earth to the moon; and a con- 
tainer of 390 kilograms with a pennant bearing 
the national emblem of the Soviet Union is now 
on the moon. Our eartli lost several hundred kilo- 
grams in weiglit, and the moon gained in her 
weight the same amount of kilograms. I am 
sure that in this historic achievement of peaceful 
science rejoice not the Soviet people alone but 
also all those to whom peace and friendship among 
nations are dear. 

Recently an atomic icebreaker has been com- 
pleted in the Soviet Union. This practical em- 
bodiment of the desire of all peoples to see the 
nuclear energy put solely to peaceful use makes 
us happy. "We are aware, Mr. President, that the 
idea of peaceful use of atomic energy is dear to 
you, and we note with gratification that your aims 
in this field coincide with ours. 

We entertain no doubt that the splendid scien- 
tists, engineers, and workei-s of the United States 
of America, who are engaged in the field of con- 
quering the cosmos, will also carry their pennant 
to the moon. The Soviet pennant, as an old resi- 
dent of the moon, will welcome your pennant and 
they will live there together in peace and friend- 
ship, as we both should live together on the earth, 
in peace and friendship, as sliould live in peace 
and friendship all peoples who inhabit our com- 
mon mother earth, who so generously gives us 
her gifts. 

During these first few minut«s of my stay in 
the United States permit me to extend hearty 
greetings and best wishes to the American people. 

STATE DINNER AT THE WHITE HOUSE 

White House press release dated September 15 

President Eisenhower 

Mr. Chairman, the ladies and gentlemen gath- 
ered at this board are here to greet you as the 
head of the Union of Soviet Socialist Republics, 
and to greet Mi-s. Khrushchev, your family, and 
the members of your party. We trust that you 
will find your tii]), your tour of America, both 
instructive and interesting and enjoyable. 

It was 150 years ago that diplomatic relations 
between your country and ours were opened. On 
November 5, 1809, John Quincy Adams, later 
Secretary of State and later President of the 



United States, presented his credentials to Alex- 
ander I. And since that date there has been a 
history of many incidents of collaboration be- 
tween your countiy and mine and certainly a 
long history of friendship. In two world wars 
we have been allies. 

Aiid now today it seems to me that our two 
comitries have a very special obligation to the 
entire world. Because of our strength, because 
of our importance in the world, it is vital that 
we understand each other better. You and I 
have agreed on this point. 

I think that skillful debate is not now enough. 
We must depend upon fact and truth. And we 
must make it our common purpose, as I see it, 
that we develop for each other the maximum of 
fact and truth, so that we may better lead, be- 
tween us, this world into a better opportunity 
for peace and prosperity. 

And it is in that hope, sir, iia that effort, in 
the hope that that effort \\'ill be successful, that I 
ask this company to join me in a toast to you, Mr. 
Chairman, Chairman of the Council of Ministers, 
to Madame Khrushcheva, and to the people of 
the Soviet Union. 

Ladies and gentlemen, Chairman Klirushchev. 

Chairman Khrushchev 

Unofflclal translation 

Mr. President, Mrs. Eisenhower, ladies and 
gentlemen: I wish to tluuik you, Mr. President. 
for the good wishes that you voiced and to state 
on my part that we have come here on the in- 
vitation of the President with our intentions based 
on the need to come to an agreement on the im- 
provement of our relations, because our coun- 
tries are much too strong and we cannot quarrel 
with each other. If we were weak countries, then 
it would be another matter, because, when the 
weak quarrel, they are just scratching each 
other's faces and it takes just a couple of days 
for a cosmetician and everything comes out right 
again. But, if we quarrel, then not only our 
countries can suffer colossal damage but the other 
countries of the world will also be involved in a 
world shambles. 

But I am sure tluit we can live in peace and 
progi-ess together for peace. 

You mentioned the fact that 150 years have 
passed since diplomatic relations were established 



478 



Department of State Bulletin 



between the United States and Russia. I also 
want to say a few words on tliat example. I want 
to say that, when your Ambassador was presenting 
his credentials to the Emperor, Alexander the 
First, I don't think the Emperor trusted your 
Ambassador too much, because after all the 
United States was a Republic and Alexander was 
a czar, but all the same there did exist mutual un- 
derstanding between the two countries, and con- 
tacts between them strengthened. 

And our counti-ies not only never fought with 
each other, but I don't think there were ever even 
any major quan-els between them. I don't pre- 
tend that I have too profound a knowledge of his- 
tory, but I am sure that this was so. 

Our comitries have different social systems. 
We believe our system to be better, and you believe 
yours to be better. But surely we should not 
bring quarrels out onto the arena of open struggle. 
Let history judge which of us is right. If we 
agi-ee to accept this principle, then we can build 
our relations on the basis of peace and fi'iendship. 

You are a very rich and strong comitry. I read 
very many speeches made by many of the Senators 
and Representatives present here today, and so, 
although I have made their acquaintance here for 
the first time today, in actual fact they are my old 
acquaintances by their speeches. 

What we should now do is to strive together to 
improve our relations. We need nothing from the 
United States, and you require nothing that we 
have. It is true that you are richer than we are 
at present. But then tomorrow we will be as rich 
as you are, and the day after tomorrow we will be 
even richer. 

But is there anything bad in this ? After all, 
we are going to do this by our own forces, by our 
own strength. 

I must say that the meeting I had today heart- 
ened me. When some of our journalists ap- 
proached me after the meeting and asked me my 
impressions, I said that there was an agreed com- 
munique that was to be published and they should 
abide by what was said in that communique. But 
I could not help mentioning that I would inform 
my Government that a good beginning had been 
made and one could only hope that the final out- 
come would be even better. 

And so I would like to raise my glass and pro- 
pose a toast to the President, to his wife, to all of 
you esteemed ladies and gentlemen. 



DEPARTMENT STATEMENT, SEPTEMBER 16' 

Secretai-y Herter and Foreign Minister Gro- 
myko met for 45 minutes tliis morning [Septem- 
ber 16] in the Secretary's office and reached 
preliminary agreement on the order of the sub- 
jects to be discussed by President Eisenhower and 
Chairman Klu'ushchev at Camp David on Sep- 
tember 25 to 27. The order of discussion was 
decided upon so that the various advisei-s and 
specialists, Soviet and American, might be on 
hand when the matter of particular concern to 
them is brouglit up. There was no discussion 
on any substantive matter. The conversation was 
in the same friendly and frank atmosphere of the 
Wliite House meeting yesterday afternoon. 

Mr. Gromyko was accompanied by Mr. A. A. 
Soldatov, chief of the American Section of the 
Ministiy of Foreign Affairs, and Mr. N. M. Lun- 
kov and Mr. A. F. Kovalev, Counselor of the 
Ministry of Foreign Affairs. 

Jlr. Herter was accompanied by Mr. Livingston 
Merchant, Deputy Under Secretary of State, Mr. 
Foy Kohler, Deputy Asssistant Secretary of State 
for European Affairs, and Mr. Richard Davis, 
who recently returned from Moscow, where he 
served as Counselor at the American Embassy. 



Role'cf the Teacher in Promoting 
Peace and Understanding 

Remarks iy President Eisenhower ^ 

Ladies and gentlemen : First of all, welcome to 
Washington, our Nation's capital. Now ordinar- 
ily, with such a gi-oup like this meeting in the rose 
garden, I should content myself with a few words 
of greeting and a few off-the-cuff remarks. But 
because of the imjjortance of this group — repre- 
senting as you do the teaching profession m so 
many different countries — and because of your 
tremendous interest in promoting understanding 
by coming to this coimtry to se« what you can 
bi'ing to us and what you can take away from 

' Read to news correspondents by Robert J. MeCloskey, 
press officer. 

' JIade before a group of foreign educators participating 
in tlie international teacher development program, which 
is administered by the International Educational Ex- 
change Service of the Department of State, at Washing- 
ton, D.C, on Sept. 10 (White House press release). 



October 5, J 959 



479 



here, I decided to put my few simple thoughts, 
such as they are, on paper. So you will this morn- 
ing get from me a bit of a precedent. I think 
never before in this rose garden have I read a 
speech, which is probably self-flattery. I don't 
mean to call it a speech ; it's just an expression of 
some simple thoughts. 

Dr. Hauck," teachei-s, and school administra- 
tors: I am happy to join with Dr. Hauck and 
others in his group in extending to you this wel- 
come to our country. I hope in the coming months 
you will all have abundant opportunity to meet 
and talk with Americans in every walk of life. 
We of course want to show you our schools and 
colleges and our universities, our cultural institu- 
tions, farms, factories, and playgrounds. But 
most of all we want you to come to know our 
people, and what they think, and how they live, 
and what their aspirations for the future are. 
And I speak for all Americans when I say that we 
are tremendously iiiterested in you and your ideas. 
We want to know better what you think, how you 
live, and to what you aspire. 

A little more than 30 years ago I made my first 
transatlantic crossing; it took 7 days. My latest 
crossing — early this month — took a little less than 
7 hours. In the three decades between these trips 
the world has experienced awesome changes. One 
of these is that 25 nations, with a population of 
nearly 1 billion, have achieved political independ- 
ence. Each is struggling for stability, for a re- 
spected place in the family of nations, and for 
advancement in the well-being of its people. But 
to me the greatest change of all is the development 
of an exacting interdependence between free na- 
tions — an interdependence that involves the oldest 
and the youngest nations, the largest and the 
smallest, the most prosperous and the least de- 
veloped of nations. 

This interdependence calls for new thinking, 
new institutions, new vision. Above all, it calls 
for greater understanding among peoples — the 
genuine understanding of truth, which can dispel 
unfounded fears and suspicions, bars to true and 
lasting peace. People of good will everywhere 
have a tremendous job of communicating such 
understanding — and little enough time to do it. 
We need to pursue every possible avenue that can 
bring people together as friends and coworkers 



' Charles C. Hauck, Bpeclallst in comparative education, 
U.S. Office of Education. 



seeking solutions to their common problems. 

As teachers and school administrators you enjoy 
an extraordinary advantage in this great task. 
You are the multipliers of knowledge; you serve 
to develop and disseminate thoughts and ideas and 
to stimulate critical, creative thinking and under- 
standing in others. The educational institutions 
in which you work are the seedbeds of learning — 
and not merely of your own countries but of all 
mankind. 

Knowledge is or should be universal; it was 
meant to be shared ; and it has the peculiar quality 
about it that, when its parts are brought together, 
the result is a multiplication rather than a mere 
addition of those values. 

One of the powerful effects of teacher exchange 
is that the benefits are multiplied a thousandfold. 
A good teacher, given the opportmiity to compre- 
hend other cultures, is not just a transmitter of 
important facts about the language, economy, pol- 
itics, science of the country he has visited. He 
becomes far more — a sort of ambassador at large 
who brings to each one with whom he comes in 
contact greater depth of understanding and 
gi-eater toleration. 

All of us surely agree that the exchange of stu- 
dents is valuable. Indeed, I would like to see a 
substantial increase in the almost 50,000 foreign 
students now studying in the United States. But 
I emphasize that through teacher exchange we 
can open intellectual windows faster and in 
greater number and thus more rapidly progress 
toward the greater understanding so desperately 
needed by our quarrelsome and shrinking world. 
A world of understanding will be a world of true 
freedom. 

We shall not be serving mankind well if we 
become obsessed with just the business of putting 
new satellites into orbit — so obsessed that we over- 
look the fact that we have some real problems left 
right here on eartli. We need to put new ideas — 
and more of them — into orbit. And we must use 
every resource at our command to see that people 
everywhere achieve greater understanding of each 
other before it is too late. 

In this respect you of the teaching profession 
compose one of our most precious resources. As 
always with sound and enthusiastic teaching, we 
do not look for spectacular breakthroughs. 
There are no easy solutions for the complexities 
that surroimd us. I confidently expect the teach- 



480 



Deparfment of Stale Bulletin 



ing profession to write a new and one of the finest 
chapters in human history by developing the price- 
less commodity of genuine understanding. Only 
thus shall we ever achieve the kind of world we 
want. 

I hope all of you will take home much of Amer- 
ica in your minds and in your hearts. We cer- 
tainly expect to get much from you. 

Thank you very much. Goodby. 



President of Liberia Expresses 
Sympathy for Earthquake Victims 

White Uouse press release dated September 18 

The White House on September 18 tnade pub- 
lic the following exchange of messages between 
President Eisenhower and IF. F. S. Tiihman, 
President of the Republic of Liberia. 

President Eisenhower to President Tubman 

September 11, 1959 

Dear IVIr. President : Thank you for your most 
gracious message expressing sympathy for the 
victims of the recent earthquake in the western 
part of the United States. 

I deeply appreciate the humanitarian ideals 
which motivated your message and express my 
gratitude to you, Mr. President, and to the 
Government and people of the Kepublic of 
Liberia. 

With warm personal regard. 
Sincerely, 

DwiGHT D. Eisenhower 

President Tubman to President Eisenhower 

August 19, 1959 

The President 
The White House 
Washington 

The distressing report of devastating experience and 
results of the violent earthquake that struck the Pacific 
Coast of the United States has been received by me and 
the Government and people of Liberia with deep and sin- 
cere regrets and on behalf of the Government, people of 
Liberia, and myself, we extend to you, the Government, 
and people of the United States, especially the people of 
the afflicted areas, our most tender feelings of sympathy 
for this terrible disaster. Let us look to God in prayer 
for deliverance. 

With assurance of my highest esteem, 

W. V. S. Tubman 



Initial Validity of Passports 
Increased to 3 Years 

Press release 659 dated September 18 

The initial validity of passports issued on or 
after September 14, 1959, has been increased from 
2 to 3 years by Public Law 86-267 approved by 
the President on September 14, 1959. However, 
the one-time renewal period will still remain 2 
years. The initial 3-year period of validity plus 
the renewal period of 2 years will provide a total 
validity of 5 years for all passports issued on or 
after the effective date of P.L. 86-267, Septem- 
ber 14, 1959, except in those cases where special 
limitations are noted upon the passport at the 
time of issuance. 

The new act is not retroactive and does not 
affect the validity of passports issued prior to 
September 14, 1959. These passports are valid 
for 2 years from the date of issue, unless other- 
wise limited, as noted in the information con- 
tained under the caption "Expiration and Re- 
newal" on the inside cover of all passports. The 
one-time 2-year renewal period for these pass- 
ports is not changed by P.L. 86-267 nor is the 
final dnte of expiration of not more than 4 years 
from the original date of issue. 

Since many Government employees and tlieir 
dependents are assigned overseas for 2-year tours 
of duty, it has previously been necessary to renew 
their passports overseas. It will now be possible 
to eliminate in many instances the necessity for 
renewal until the employee and his family have 
returned to the United States. Nongovernmental 
travelers will also be affected. 



U.S. To Undertake Renegotiations 
on Wool-Fabric Tariff Concessions 

Press release 647 dated September 14 

As an outgrowth of the continuing study within 
the U.S. Government of the operation of the tariff 
quota on certain wool fabrics, which tlie President 
requested in a letter to the Secretary of Commerce 
on March 7, 1958,^ the U.S. Government has de- 
cided to enter into renegotiations looking toward 
possible modification of the tariff concessions in 
the General Agreement on Tariffs and Trade 



' BuxLETiN of Apr. 21, 1958, p. 671. 



October 5, 1959 



481 



under which the quota is maintained. The rene- 
gotiation, which was requested by the United 
Kingdom in August, is being undertaken in an 
effort to find a solution to the many problems 
wliich both importing interests in the United 
States and exporting interests in other countries 
have claimed arise from the application of this 
quota. 

In the proposed renegotiations the United 
States will follow the usual trade-agreement pro- 
cedures, including the holding of public hearings 
by the interagency Committee for Reciprocity In- 
formation and an investigation for tlie determina- 
tion of "peril points" by the U.S. Tariff Commis- 
sion. Formal announcements seeking public 
views will be issued by the interagency commit- 
tee involved and the Tariff Commission upon 
completion of preliminary steps now in progress. 

The proposed renegotiations will be in accord- 
ance with the provisions of article XXVIII of 
the General Agreement on Tariffs and Trade. 
The tariff concessions which account for the major 
part of the trade were negotiated with the United 
Kingdom in 1947, and one which accounts for the 
minor part was negotiated with Belgium in 1950 
and 19.51. In accordance with provisions of the 
General Agreement, the United States will nego- 
tiate with these two countries and will give con- 
sideration to the trade interests of other contract- 
ing parties, either in direct negotiations with any 
countries that may be found to have a principal 
supplying interest or in consultations with any 
found to have a substantial interest. 

The tariff quota on wool fabrics was established 
initially on October 1, 1956, wlien the President 
invoked the so-called Geneva reservation,^ which 
is a part of the tai-iff concessions on wool fabrics 
which the United States negotiated with the 
United Kingdom in 1947 and which is included in 
the U.S. schedule of the General Agreement. 
This reservation permits the United States to in- 
crease to 45 percent the ad valorem part of the rate 
of duty applicable to imports of wool fabrics in 
any year, in excess of an amount determined to 
be not le,ss than 5 percent of average annual U.S. 
production of similar fabrics for the preceding 3 
calendar years. The tariff quota has been con- 
tinued, with some modifications, each year since 
then. 
Under tliis tariff quota the ad valorem part of 



'' Ihid., Oct. 8, li).5G, p. .'tSS. 

482 



the rate of duty applied to most imports in excess 
of the tariff quota is 45 percent. For imports 
within the tariff quota the ad valorem rate of duty 
under the trade agreement concession is 20 per- 
cent or 25 percent (depending on the nature of the 
fabric). The specific part of the rate of duty is 
30 cents or 37% cents a pound (again depending 
on the nature of the fabric) for all imports 
whether within or in excess of the tariff quota. 
Special treatment has been provided in the form 
of a 30 percent ad valorem rate of duty, for over- 
quota imports of certain handwoven fabrics, 
fabrics for religious uses, and a limited quantity 
of high-priced fabrics. 

In addition to the Government of the United 
Kingdom, which has recently requested renegotia- 
tion, importers and direct consumers of imported 
fabrics in tlie United States have made repre- 
sentations to the U.S. Government concerning the 
difficulties of operating imder tlie present arrange- 
ments. Similar i-epresentations have been made 
by other governments and by export interests in 
other countries. A solution of these problems 
satisfactory to the various interests involved has 
not been found within the framework of the exist- 
ing concessions. It is in an effort to arrive at a 
solution equitable to all that renegotiations will 
be imdertaken. 

Development Loans 

Pakistan 

The U.S. Development Loan Fund announced 
on September 8 basic approval and commitment 
of funds for a new $10 million loan to the Pakistan 
Industrial Credit and Investment Corp.. Ltd., a 
privately owned and managed development bank 
in Karachi. The new funds will enable the bank 
to assist further in the development of private- 
enterprise projects in Pakistan. For details, see 
Department of State press release 638 dated Sep- 
tember 8. 

The Development Loan Fund and Pakistan 
signed a loan agreement at Dacca, East Pakistan, 
on September 12, whereby the DLF will lend 
$1,750,000 to the East Pakistan Inland Water 
Transport Autliority to assist in financing tlie in- 
stallation of improved navigational aids on East 
Pakistan's inland waterways. For details, see 
Department of State press release 645 dated 
September 11. 

Deparfmenf of Sfafe Bulletin 



1959 Pacific Festival 

A PROCLAMATION' 

WiiEKEAS there is to be held at San Francisco, Cali- 
fornia, from September 18, lOr.S), to September 27, 1959, 
inclusive, an event Iinowu as "Pacific Festival Days" ; 
and 

Whereas the purpose of this festival is to focus atten- 
tion on the growth and development of cities. States, and 
nations bordering the Pacific Ocean and tliereby to foster 
mutual understanding and cordial relations among the 
peoples of these areas ; and 

Whereas the Congress, by a joint resolution approved 
September 14, 19."i9, has aiitliorized and requested the 
President to issue a proclamation inviting foreign nations 
to participate in the 1959 Pacific Festival ; and 

Whereas participation by both American citizens and 
foreign nationals in this event is in lieeping with our 
objective of cultivating better relationships among the 
nations and the peoples of the world ; and it may be 
expected to contril)nte to the welfare and benefit of all 
concerned : 

Now, THEREFORE, I, DwioHT U. EISENHOWER. President 
of the United States of America, do hereby authorize and 
direct the Secretary of State to Invite, on my behalf. 
such foreign nations as he may consider appropriate to 
participate in the 1959 Pacific Festival at San Francisco, 
California, from September 18 to September 27, 1959. 

In WITNESS WHEREOF, I have hereunto set my hand 
and caused the Seal of the United States of xVmerica to be 
affixed. 

Done at the City of Washington this fourteenth day of 

September 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-fourth. 



^y Cxs-7- >^^'>0'C<-<,t*. A^kj.^^ 



By the President : 
Christian A. Herter, 
Secretory of State. 



Congressional Documents 
Relating to Foreign Policy 

86th Congress, 1st Session 

Briefing on Africa. Hearings liefore the Subcommittee 

on Africa of the House Foreign AfCairs Committee. 

March 5-.Tuly 21, 1959. 20 pp. 
Passport Security — Part 2. Hearings before the House 

Un-American Activities Committee. April 22-June 5, 

1959. 894 pp. 
Dissemination of Scientific Information. Hearings before 

the House Science and Astronautics Committee. May 

26-June 17, 1959. 182 pp. 



' No. 3313 ; 24 Fed. Reg. 7517. 
Ocfofaer 5, 7959 



To Establish an Advisory Commission on Intergovern- 
mental Relations. Joint hearings l>efore the Intergov- 
ernmental Relations Subcommittee of the House 
Government Operations Committee and the Senate 
Government Operations Comndttee on H.R. 6904, H.R. 
6905, and S. 2026. June 16-22, 1959. 206 pp. 

Depressed Domestic Mining and Mineral Industries. 
Hearings before the Subcommittee on Mines and Min- 
ing of the House Interior and Insular Affairs Commit- 
tee. June 25-JuIy 2, 19.59. 452 pp. 

The American National Exhibition, Moscow, July 1959: 
The Record of Certain Artists and an Appraisal of 
Their Worlis Selected for Display. Hearings before the 
House Un-American Activities Committee. July 1, 
1959. 67 pp. 

Administration of the Department of State and the For- 
eign Service, and the Establishment of a F<ireign Serv- 
ice Academy. Hearings before a subcommittee of the 
Senate Foreign Relations Committee. July 6-15, 1959. 
240 pp. 

North American Regional Broadcasting Agreement, Mex- 
ican Broadcasting Agreement. Hearing before a sub- 
committee of the Senate Foreign Relations Committee. 
July 9, 1959. 308 pp. 

Passport Legislation. Hearing before the Senate Foreign 
Relations Committee on bills on passport legislation. 
July 13, 1959. 176 pp. 

Communist Threat to the United States Through the 
Caribbean. Hearings before the House Judiciary Com- 
mittee's Subcommittee To Investigate the Administra- 
tion of the Internal Security Act and Other Internal 
Security Laws. Testimony of Maj. Pedro L. Diaz Lanz. 
July 14, 1959. 32 pp. 

Importation of Tourist Literature. Works of Art, Wood 
Moldings, and Book Bindings and Covers. Hearing be- 
fore the Senate Finance Committee on H.R. 2411, an 
act to amend paragraph 1629 of the Tariff Act of 1930 
so as to provide for the free importation of tourist 
literature. July 16, 1959. 97 pp. 

U.S. Participation in the UN: Report by the Pre.sident to 
the Congress for the Year 1958. H. Doc. 104. July 20, 
1959. 300 pp. 

Current Situation in the Far East. Hearings before the 
Far East and Pacific Subcommittee of the House For- 
eign Affairs Committee. July 27- August 14, 1959. 
338 pp. 

United States Foreign Policy : Worldwide and Domestic 
Economic Problems and Their Impact on the Foreign 
Policy of the United States. A study prepared at the 
request of the Senate Foreign Relations Committee 
by the Corjxjration for Economic and Industrial Re- 
search, Inc., August 1959. 92 pp. 

Providing Standards for the Issuance of Passports and 
for Other Purposes. Hearings before the House For- 
eign Affairs Committee. August 5-19, 1959. 186 i)p. 

Extension and Amendment of Public Law 480. Report to 
accompany H.R. 8609. H. Rept. 908. August 15, 19.59. 
70 pp. 

Operation of Article VII, NATO Status of Forces Treaty. 
Hearing before a subcommittee of the Senate Armed 
Services Committee to review for the period Decem- 
ber 1, 1957, through November 30, 1958, the operation 
of article VII of the agreement between the parties 
to the North Atlantic Treaty, together with the other 
crinunal jurisdictional arrangements throughout the 
world. August 18, 1959. 27 pp. 

Fortieth Report to Congress on Lend-Lease Operations. 
Message from the President transmitting the report for 
the year ending December 31, 1958. H. Doc. 160. 
August 19, 1959. 37 pp. 

Tariff Commission To Make Additional Investigation Un- 
der Section 332 of Tariff Act of 1930 of Domestic Lead 
and Zinc Industries. Report to accompany S. Res. 162. 
S. Rept. 733. August 19, 1059. 4 pp. 

Tariff Commission To Make Additional Investigation 
Under Section 332 of Tariff Act of 1930 of Domestic 
Fluorspar Industry. Report to accomiiany S. Res. 163. 
S. Rept. 734. August 19, 1959. 2 pp. 



483 



Printing for tiie Use of the Joint Committee on Atomic 
Energy Additional Copies of Hearings on "Fallout 
From Nuclear Weapons Testing." Report to accom- 
pany S. Con. Res. 53. S. Rept. 737. August 19, 1959. 
2 pp. 

Foreign Agents Registration Act. Report to accompany 
H.R. 6817. H. Rept. 949. August 19, 1959. 4 pp. 

Conclusions Concerning the Mutual Security Program. 
Communication from the President transmitting the 
final report of the President's Committee To Study 
the United States Military Assistance Program, with 
the several studies which are annexes thereto. H. Doc. 
215 parts 1 and 2. August 20, 1959. 411 pp. 

Agricultural Attach^ Rotation. Report to accompany 
H.R. 8074. H. Rept. 978. August 24, 1959. 4 pp. 

The Agreement on the Importation of Educational, Sci- 
entific, and Cultural Materials. Message from the 
President of the United States transmitting a certified 
copy of the agreement. S. Ex. I. August 25, 1959. 
15 pp. 

Three- Year Suspension of Import Duties on Certain Spun- 
Silk Yarn. Report to accompany H.R. 2886. S. Rept. 
811. August 25, 19.59. 2 pp. 

Transfer of Certain Pumice Stone to Free List. Report 
to accompany H.R. 6368. S. Rept. 812. August 25, 
19.59. 3 pp. 

Temporary Free Importation of Extracts, Decoctions, 
and Preparations of Hemlock Suitable for Use for 
Tanning. Report to accompany H.R. 6579. S. Rept 
813. August 2.5, 1959. 3 pp. 

Twenty-second Semiannual Report on Educational Ex- 
change Activities. Letter from the Chairman, U.S. Ad- 
visory Commission on Educational Exchange trans- 
mitting the 22d semiannual report, January 1-June 30, 
1959. H. Doc. 216. August 25, 1959. 15 pp. 

Authorizing the Secretary of Commerce To Resell Four 
Cl-SAY-1 Vessels to the Government of the Republic 
of China. Report to accompany H.R. 8042. H. Rept. 
10.50. August 26, 1959. 11 pp. 

Authorizing and Requesting the President To Issue a 
Proclamation With Respect to the 1959 Pacific Festival, 
and for Other Purpo.'fes. Report to accompany H.J. 
Res. 281. S. Rept. 810. August 26. 1959. 1 p. 

Concerning the Desirability of Holding an International 
Exposition in the United States. Re[)ort to accompany 
S. Res. 169. S. Rept. 817. August 26, 1959. 2 pp. 

Study of International Activities of Federal Executive 
Branch Departments and Agencies in the Field of 
Health and Medical Research. Report to accompany 
S. Res. 176. S. Rept. 819. August 26, 19.59. 2 pp. 

United States Participation in the International Atomic 
Energy Agency. Message from the President transmit- 
ting the second annual report for the year 1958. H. 
Doc. 221. August 27, 1959. 58 pp. 

Promoting Peace Through the Reduction of Armaments. 
Report to accompany H. Con. Res. 393. August 31, 
1959. 2 pp. 



Foreign Service Retirement and Disability System. Re- 
port to accompany S. 1502. S. Rept. 837. August 31, 
1959. 3 pp. 

Extending the Life of the Commission and Advisory 
Committee on International Rules of Judicial Proce- 
dure. Report to accompany H.R. 8461. S. Rept. 
856. September 1, 1959. 5 pp. 

Century 21 Exposition. Conference report to accompany 
H.R. 8374. H.R. Rept. 1104 September 1, 1959. 3 pp. 

Authorizing the President To Invite Foreign Countries 
To Participate in a World's Fair, New York, 1964. 
Report to accompany H.J. Res. 496. September 1, 1959. 
2 pp. 

Providing for the Presentation by the United States of a 
Statue of Gen. George Washington to the People of 
Uruguay. Report to accompany H.R. 8911. H.R. 
Rept. 1118. September 1, 1959. 2 pp. 

Amending the Joint Resolution Providing for Member- 
ship and Participation by the United States in the 
Inter-American Children's Institute. Report to accom- 
pany H.J. Res. 511. H.R. Rept. 1119. September 1, 
1959. 4 pp. 

Foreign Service Act Amendments of 1959. Report to 
accompany S. 2633. S. Rept. 880. September 2, 1959. 
77 pp. 

Providing Standards for the Issuance of Passports. Re- 
port to accompany H.R. 9069. H. Kept. 1151. Septem- 
ber 4, 1959. 7 pp. 

Temporary Suspension of Duty on Certain Amorphous 
Graphite. Report to accompany H.R. 1217. H. Rept. 

1143. September 3, 1959. 3 pp. 

Free Importation of Ground, Powdered, or Granulated 
Seaweeds. Report to accompany H.R. 5887. H. Rept 

1144. September 3, 1959. 2 pp. 

Observance of an International Public Health and Medi- 
cal Research Year. Report to accompany S. Res. 129. 
S. Rept 905. September 4, 1959. 1 p. 

Establishing a National Minerals Policy. Report, to- 
gether with individual views, to accompany S. 1537. 
S. Rept. 967. September 8, 19.59. 8 pp. 

Establishing a National Minerals Policy. Report, to- 
gether with individual views, to accompany H. Con. 
Res. 177. S. Rept 968. September 8, 1959. 15 pp. 

Authorizing Construction, Maintenance, and Operation of 
Toll Bridge Across St. Marys River, and the Rio 
Grande. Report, together with minority views, to ac- 
company H.R. 3180, S. 2531, and S. 2590. S. Rept 980. 
September 8. 1959. 10 pp. 

Mutual Security and Related Agencies Appropriation 
Bill, 1960. Report to accompany H.R. 8385. S. Rept 
981. September 8, 1959. 24 pp. 

Statue to Uruguay. Report to accompany H.R. 8911. S. 
Rept. 984. September 9, 1959. 2 pp. 

Inter-American Children's Institute. Report to accom- 
pany S. 2231. S. Rept. 990. September 9, 1959. 2 pp. 



484 



Department of State Bulletin 



INTERNATIONAL ORGANIZATIONS AND CONFERENCES 



Calendar of International Conferences ^ 

Adjourned During September 1959 

ICAO Legixl Committee: 12th Session Munich Aug. 18-Sept. 4 

13th Annual Edinburgh Fihn Festival Edinburgh Aug, 23-Sept. 12 

17th International Congress of Pure and Applied Chemistry . . . Munich Aug. 30-Sept. 6 

GATT Working Party on Relations with Poland Geneva Aug. 31-Sept. 4 

lAE.A. Panel on Reactor Physics Data of Heavy-Water Lattices . Vienna Aug. 31-Sept. 4 

GATT Committee I on Expansion of International Trade .... Geneva Aug. 31-Sept. 9 

U.N. Seminar on Judicial and Other Remedies Against Abuse of Buenos Aires Aug. 31-Sept. 11 

Administrative Authority. 

UNICEF Executive Board and Program Committee New York Sept. 1-15 

U.N. Committee on Arrangements for Purpose of Charter Re- New York Sept. 2 (1 day) 

>\'- view. 

U.N. ECAFE Industry and Natural Resources Committee: Work- New Delhi Sept. 7-14 

ing Party on Earthmoving Operations. 

Meeting of Countries Producing Extra Long Staple Cotton . . . Alexandria, Egypt Sept. 7-17 

IAE.\ Conference on the Application of Large Radiation Sources in Warsaw Sept. 8-12 

Industry. 

GATT Committee II on Expansion of International Trade . . . Geneva Sept. 14-25 

U.N. ECAFE Committee on Trade: Working Group of Experts on Bangkok Sept. 14-25 

1^ Sampling Methods. 

ITU International Telephone and Telegraph Consultative Com- Munich Sept. 15-25 

mittee (CCITT): Study Group 2/1 on Telegraph Operations and 

Tariffs. 

U.N. ECAFE Working Party on Economic Development and Plan- Bangkok Sept. 15-26 

P* ning: 5th Session. 

WHO Regional Committee for Western Pacific: 10th Session . . Taipei Sept. 16-22 

U.N. ECE Coal Committee and Working Parties Geneva Sept. 21-25 

3d FAO Technical Meeting on Control of Sunn Pest Morocco Sept. 21-26 

PAHO Directing Council: 11th Meeting Washington Sept. 21-30 

PAHO Executive Committee: 38th Meeting Washington Sept. 21-30 

International Rubber Study Group: Management Committee . . London Sept. 24 (1 day) 

In Session as of September 30, 1959 

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

PAHO Subcommittee To Study the Constitution and Rules of Pro- Washington Apr. 13- 

cedure. 

ITU Administrative Radio Conference Geneva Aug. 17- 

ICAO Meteorological Division: 5th Session (joint session with Montreal Sept. 1- 

WMO Commission fcr Aeronautical Meteorology). 

IAEA Board of Governors: 13th Session Vienna Sept. 14- 

U.N. General Assembly: 14th Session New York Sept. 15- 

11th International Road Congress Rio de Janeiro Sept. 21- 

lAEA General Conference: 3d Regular Session Vienna Sept. 22- 

FAO Experts on Fisheries Statistics in North Atlantic Area . . . Edinburgh Sept. 22- 

FAO International Poplar Commission: 10th Session; 7th Inter- Rome Sept. 23- 

national Poplar Congress. 

ICAO Jet Operations Requirements Panel: 4th Meeting Montreal Sept. 28- 

International Bank for Reconstruction and Development, Inter- Washington Sept. 28- 

national Monetary Fund, International Finance Corporation: 

Annual Meetings of Boards of Governors. 



1 Prepared in the Office of International Conferences, Sept. 18, 1959. Following is a list of abbreviations: CCITT, 
Comit6 consultatif international t616graphique et t616phonique; CENTO, Central Treaty Organization (formerly the 
Baghdad Pact); EC.A., Economic Commission for Africa; ECAFE, Economic Commission for Asia and the Far East; 
ECE, Economic Commission for Europe; FAO, Food and Agriculture Organization; GATT, General Agreement on TarifTs 
and Trade; IAEA, International Atomic Energy Agency; ICAO, International Civil Aviation Organization; ICEM, 
Intergovernmental Committee for European Migration; ILO, International Labor Organization; IMCO, Intergovern- 
mental Maritime Consultative Organization; ITU, International Telecommunication Union; N.'VTO, North Atlantic 
Treaty Organization; PAHO, Pan American Health Organization; 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, ■it:^ 

Ocfober 5, J 959 485 



Calendar of International Conferences and Meetings — Continued 



In Session as of September 30, 1959 — Continued 



Conference of Experts for the Revision of The Hague Arrangements 

for the International Deposit of Designs and Models. 
GATT Committee III on Expansion of International Trade . . . 
U.N. ECA Conference of African Statisticians: 1st Session . . . 
U.N. ECAFE Subcommittee on Electric Power: 7th Session . . . 



The Hague Sept. 28- 

Geneva Sept. 28- 

Addis Ababa Sept. 28- 

Tokyo Sept. 29- 



Scheduled October 1 Through December 31, 1959 



PAHO Executive Committee: 39th Meeting 

International Council for the Exploration of the Sea: 47th Annual 
Meeting. 

Executive Committee of tne Program of the U.N. High Commis- 
sioner for Refugee.s: 2d Regular Session. 

CENTO Ministerial Council: 7th Meeting 

ILO Meeting of Panel of Consultants on the Problems of Women 
Workers. 

South Pacific Commission: 20th Session 

UNESCO Intergovernmental Copyright Committee: 4th Session. 

GATT Committee on Balance-of-Payments Restrictions 

U.N. ECE Timber Committee: I7th" Session 

Inter- American Nuclear Energy Commission: 1st Meeting .... 

IAEA Symposium on the Meteorology of Radionuclides 

ITU Plenipotentiary Conference . 

Conference on Antarctica 

FAO/ILO Technical Meeting on Cooperatives for the Near East . 

ILO Building, Civil Engineering, and Public Works Committee: 
6th Session. 

U.N. ECE Conference of European Statisticians: Working Group 
on Statistics of Private Consumption Expenditure. 

International Wheat Council: 28th Session 

FAO Committee on Commodity Problems: 32d Session 

FAO Experts on Standardization of Time Reference in Agricul- 
tural Statistics. 

FAO Group on Cocoa: 5th Meeting of Committee on Statistics . 

Consultative Committee on Cooperative Economic Development in 
South and Southeast Asia ("Colombo Plan"): 11th Meeting 

Officials Meeting 

Ministerial Meeting 

GATT Working Party on Commodities 

GATT Contracting Parties: 15th Session 

U.N. ECE Committee on Development of Trade and East-West 
Trade Consultations. 

U.N. ECAFE Zonal Meeting of Experts on International High- 
ways. 

U.N. ECAFE Inland Transport and Communications Committee: 
2d Meeting of Experts on International Highways. 

U.N. Scientific Advisory Committee on Atomic Energv 

FAO Council: 32d Session " 

FAO Conference: 10th Session 

International North Pacific Fisheries Commission: Committee on 
Biology and Research. 

International North Pacific Fisheries Commission: 6th Meeting . . 

ILO Experts on Statistics of Industrial Injuries 

WMO Regional Association for Asia: 2d Session 

ICEM Executive Committee: 13th Session 

U.N. ECAFE Inland Waterways Subcommittee: 5th Session . . . 

ILO Governing Body: 143d Session (and Committees) 

UNESCO Executive Board: 55th Session 

ICEM Council: 11th Session 

IAEA Conference on Radioactive Waste Disposal 

NATO Parliamentary Conference 

South Pacific Commission: Regional Seminar on Education . . . 

U.N. ECAFE Working Group of Experts on Capital Formation . . 

U.N. ECAFE Committee on Inland Transport and Communica- 
tions: 8th Session. 

Inter- American Child Institute: 40th Meeting of Directing 
Council. 

International Union of Travel Organizations: 14th General 
Assembly. 

FAO Council: 33d Session 

11th Pan American Child Congress 



Washington Oct. 1- 

Copenhagen Oct. 5— 

Geneva Oct. 6- 

Washington Oct. 7- 

Geneva Oct. 12- 

Noumfo, New Caledonia . . . Oct. 12- 

Munich Oct. 12- 

undetermined Oct. 12- 

Geneva Oct. 12- 

Washington Oct. 13- 

Vienna Oct. 14- 

Gcneva Oct. 14- 

Washington Oct. 15- 

Cairo Oct. 17- 

Geneva Oct. 19- 

Geneva Oct. 19- 

London Oct. 19- 

Rome Oct. 22- 

Rome Oct. 22- 

Rome Oct. 23- 

Jogjakarta Oct. 20- 

Jogjakarta Nov. 10- 

Tokvo Oct. 26- 

Tokyo Oct. 26- 

Geneva Oct. 26- 

Bangkok Oct. 27- 

Bangkok Oct. 27- 

New York Oct. 28- 

Rome Oct. 29- 

Rome Oct. 31- 

Seattle October 

Seattle Nov. 2- 

Geneva Nov. 3- 

Rangoon Nov. 3- 

Geneva Nov. 3- 

Bangkok Nov. 4- 

Geneva Nov. 9- 

Paris Nov. 9- 

Geneva Nov. 12- 

Monaco Nov. 16- 

Washington Nov. 16- 

Brisbane Nov. 16- 

Bangkok Nov. 16- 

Bangkok Nov. 18- 

Bogotd Nov. 20- 

Manila Nov. 20- 

Rome Nov. 21- 

Bogotd Nov. 22- 



486 



Department of Stale Bulletin 



Inter- American Cultural Council: 3d Meeting . 

ILO Advisory Committee on Salaried Employees and Professional 
Worlcers: 5th Session. 

International Sugar Council: 4th Session 

International Sugar Council: Executive and Statistical Com- 
mittees. 

FAO Meeting on Hemorrhagic Septicemia in Livestock 

ILO African .\dvisory Committee: 1st Session 

U.N. ECE Committee on Agricultural Problems 

U.N. Seminar on the Evaluation and Utilization of Population 
Census Results. 

5th Inter-.\merican Conference on Agriculture 

U.N. Trusteeship Council: Special Session 

IMCO Maritime Safety Committee: 2d Session 

ICAO Facilitation Division: 5th Session 

U.N. ECAFE Zonal Meeting of Experts on International High- 
ways. 

1st FAO International Meeting on Date Production and Process- 
ing. 

U.N. ECAFE Zonal Meeting of Experts on International High- 
ways. 

U.N. "ECE Housing Committee and Working Parties 

U.N. ECAFE Technical .Administration Seminar on Adminis- 
trative and Financial Aspects of Industrial and Commercial 
Enterprises in Public Sector. 

ILO Technical Meeting Concerning Certain Aspects of Industrial 
Relations Inside Undertakings. 

F.A.0 International Rice Commission: Working Party on Rice 
Production and Protection. 

FAO International Rice Commission: Working Party on Rice Soil, 
Water, and Fertilizer Practices. 

U.N. ECAFE Railway Subcommittee: 6th Session; and Working 
Partv on Railwav Mechanical Engineers. 

U.N. ECE Coal Trade Subcommittee 

U.N. ECE Coal Committee 

NATO Council: Ministerial Session 

Caribbean Conmiis,sion: 29th Meeting 

South Pacific Commission: Study Group on Filariasis and Ele- 
phantiasis. 

U.N. Economic and Social Council: 28th Session (resumed) . . . 



San Juan Nov. 22- 

Cologne Nov. 23- 

Tangier Nov. 23- 

Tangier Nov. 23- 

Manila Nov. 30- 

Luanda, Angola Nov. 30- 

Geneva Nov. 30- 

Santiago Nov. 30- 

M^xico, D.F November 

New York November 

London November 

Rome Dec. 1- 

New Delhi Dec. 1- 

Tripoli Dec. 5- 

Lahore Dec. 7- 

Geneva Dec. 7- 

India Dec. 8- 



Geneva Dec. 10- 

Peradeniya, Ceylon Dec. 14- 

Peradeniya, Ceylon Dec. 14- 

Lahore Dec. 14- 

Geneva Dec. 14- 

Geneva Dec. 15- 

Paris December 

Cayenne, French Guiana . . . December 

Noumea, New Caledonia . . . December 

New York December 



U.S. Reaffirms Economic Support 
for Regional Members of CENTO 

Statement hy Donald D. Kennedy'^ 

Pennit me to say firet that it gives me very great 
satisfaction and pleasure to be here in Ankara and 
to attend this session of the Economic Commit- 
tee, the fii-st under the new name of CENTO. 
The varied opportunities that such a meeting af- 
fords — exchanging ideas, meeting okl friends and 
making new ones, developing recommendations 
for further activity, associating in a common en- 
deavor — make profitable and worth while any ef- 



* Made on Sept. 1 at the opening session of the sev- 
enth meeting of the Economic Committee of the Central 
Treaty Organization (formerly the Baghdad Pact), held 
at Ankara, Turkey, Sept. 1-3. Mr. Kennedy, who is 
Deputy Assistant Secretary for Economic and Regional 
Affairs, Bureau of Near Eastern and South Asian Affairs, 
was head of the U.S. delegation to the meeting. 



fort that is involved in attending. For me it is 
most pleasant and helpful because otherwise I 
would not be able to come at this time to this fine 
capital city of a strong and free nation. 

It has been said many times, and I would like 
to repeat, that reliable independence rests in large 
part on economic health and progress. And I 
would like to reaffirm that the United States fa- 
vors and will support, within its capabilities, those 
economic activities which have a regional charac- 
ter, carry forward a regional concept, and meet 
the t«st of economic and technical feasibility. 

We continue to believe that the Organization is 
well adapted for developing economic activities 
that cannot be effectively carried out by each coun- 
try acting alone and that such activities deserve 
to be pushed with vigor. "We wish to play our 
part in doing so. It was with this in mind that 
we established the position of Economic Coordi- 
nator, which is filled by Mr. John McDonald. As 



October 5, J 959 



487 



judged from where I sit in Washington, it is my 
belief that he has contributed a great deal to the 
economic work of the Organization, and I am 
happy to have him as a member of this delegation. 

Reports from Mr. McDonald and a review of 
the work of the economic experts indicate that 
the past 7 months have been a period of high 
activity. We will be reviewing this work during 
these next few days, and hence I will not make 
any specific comment now. But I do believe that 
an examination of work completed and in active 
progress shows that there has been an excellent 
level of accomplisliment. 

In London I referred to our interest in helping 
individually the regional members of this Organ- 
ization improve their economic health as an essen- 
tial part in establishing a continuing and sound 
independence, and said that it was my view that 
increased economic health arising out of our bilat- 
eral economic aid programs improved the 
strength of the group as a whole. ^ 

It is within this context that I would like to 
give you a statistic: At the time of the London 
meeting I stated that the total LTnited States 
economic aid in all forms to the pact members 
under our bilateral programs for the year ending 
June 30, 1958, amounted to around $300 million. 
The total for the year ending June 30, 1959, comes 
to around $470 million — up over 50 percent. I 
mention this only to provide factual support to 
general statements as to our interest in and strong 
desire to help those associated in this Organiza- 
tion. American taxpayers, like taxpayers every- 
where, are prone to complain. It is particularly 
gratifying to tliis delegation that the American 
people have been able and willing to come forth 
with aid in such magnitude to the individual 
members of this Organization. 

At the same time it should be recognized that 
limited annual appropriations and worldwide 
commitments place a tight and rcstiicted ceiling 
on what the United States can do. It is United 
States policy, I sliould add, to put aid for eco- 
nomic development projects on a loan basis; and 
you are all familiar with and have had practical 
experience with the Development Loan Fund, 
established by Congress for this purpose. 



In closing permit me to express this delega- 
tion's great appreciation of the work done by the 
economic experts. Their activity and the reports 
of the many working groups show free and pro- 
ductive cooperation by all, an essential element 
in achieving progress under an international 
grouping of this character. 



Bank and Fund Announce 
Increases in Resources 

World Bank 

The International Bank for Reconstruction and 
Development announced on September 16 that a 
major increase in the capital of the Bank became 
effective on September 15, 1959.' Authorized 
capital has been increased from $10 billion to $21 
billion and increased capital subscriptions from 
member governments amounting to $8,801.4 mil- 
lion had been received by the Bank up to Septem- 
ber 15. Of this total, $62.52 million will be paid 
in, and the remainder will be subject to call to 
meet the Bank's obligations. 

Forty member governments have acted to in- 
crease their subscriptions to the Bank's capital, 
and further increases are expected from other 
members. By far the larger part of the increases 
consist of a doubling by member governments of 
their subscriptions. Some members have also 
made special additional subscriptions, over and 
above their 100 percent increases, as a means of 
making their capital participations in the Bank 
more proportionate to their economic growth in 
recent years. Seventeen governments, including 
Canada, Germany, and Japan, have made or indi- 
cated their intention to make such special addi- 
tional subscriptions. 

The principal objective in enlarging the Bank's 
capital is to strengthen its ability to borrow funds 
for financing loans for economic development by 
increasing the portion of members' subscriptions 
remaining on call. 

Prior to the current action by the members, 
subscribed capital of tlie Bank amounted to $9,556 



'Mr. Kennedy was head of the U.S. delcRation to the 
fifth meeting of the Economic Committee, held at London 
.Tuly 28-.31, lir.8. 



' For background, see Bulletin of Feb. 23, 19r)9, p. 279; 
for President Eisenhower's message to Congress request- 
ing legislation to increase the U.S. capital subscription 
in the World Bunk and quota in the ilonetary Fund, see 
ibid.. Mar. 9, 1959, p. 347. 



488 



Deparfment of State Bulletin 



million, of which $1,911 million W£^s paid in and 
$7,645 million was subject to call to meet the 
Bank's own obligations in the event it could not 
do so from its other resources. With the increase 
in subscriptions received to date, subscribed capi- 
tal will rise to $18,357.9 miUion, of which $1,973.82 
million will be paid in and is usable in tlie ordi- 
nai-y operations of the Bank and $16,384.08 mil- 
lion will be on call and serving as a guarantee 
fund for the Bank's bonds and other obligations. 

Monetary Fund 

The International Monetary Fimd announced 
on September 16 that 40 members, representing 
82.77 percent of its quotas as of January 31, 1959, 
have consented to increases in their quotas in the 
Fund by amounts ranging from 50 percent to 100 
percent. 

The Fund extended the period within which the 
rest of its 68-nation membership may accept in- 
creases in quotas to July 31, 1960. Some of these 
countries have already communicated consents to 
the Fund which will become effective on the com- 
pletion of certain formalities. 



Current U.N. Documents: 
A Serected Bibliography ^ 

Security Council 

Letter Dated 30 July 1959 From the Secretary-General of 
the Organization of American States Addressed to the 
Secretary-General of the United Nations Transmitting 
a Resolution Adopted on 29 July by the Council of the 
Organization of American States in Connexion With 
the Case Submitted by the Government of Nicaragua. 
S/4208. August 20, 1959. 55 pp. 

Letter Dated 31 August From the Acting Permanent 
Representative of Israel Addressed to the Pre.sident of 
the Security Council Relating to Passage Through the 
Suez Canal. S/4211. August 31, 19.59. 3 pp. 

Note of 4 September 1959 to the Secretary-General From 
the Permanent Mission of the Kingdom of Laos to the 
United Nations Alleging Communist Violation of Lao 
Territory. S/4212. September 5, 1959. 2 pp. 

Letter Dated 9 September 1959 From the Acting Per- 
manent Representative of Pakistan Addressed to the 
President of the Security Council Regarding Kashmir. 
S/4217. September 9, 1959. 2 pp. 

Letter Dated 11 September 1959 From the Chairman of 



' Printed materials may be secured in the United States 
from the International Documents Service, Columbia Uni- 
versity Press, 2960 Broadway, New York, N.Y. Other 
materials (mimeographed or processed documents) may 
be consulted at certain designated libraries in the United 
States. 



the Disarmament Commission Addressed to the Secre- 
tary-General. S/4218. September 11, 1959. 2 pp. 
Letter Dated 11 September 1959 From the Acting Per- 
uiaueut Representative of Pakistan Addressed to the 
President of the Security Council Uogardiug Kashmir. 
S/4219. September 11, 1959. 2 pp. 

General Assembly 

Diplomatic Intercourse and Imnuinitics. Note by the 
Secretary-General with an annex containing comments 
by Governments concerning the draft articles on diplo- 
matic intercourse and immunities adopted by the In- 
ternational Law Commission at its 10th session in 
1958. A/4164. July 28, 1959. 60 pp. 

Progress Achieved by the Non-Self-Governing Ten-itories 
in Pursuance of Chapter XI of the Charter: General 
Economic Developments. Report prepared by the Secre- 
tariat. A/4166. July .30, 1959. 84 pp. 

Progress Achieved by the Non-Self-Governing Territories 
in Pursuance of Chapter XI of the Charter : Community 
Development in Non-Self-Governing Territories. Report 
prepared by the Secretariat. A/4167. August 3, 19.59. 
48 pp. 

International Health and Medical Research Year. Letter 
dated June 26, 1959, from the Director-General of the 
World Health Organization addressed to the Secretary- 
General. A/4133. August 7, 1959. 5 pp. 

Election of a Member of the International Court of Jus- 
tice To Fill the Vacancy Caused by the Death of Judge 
Jos6 Gustavo Guerrero. Memorandum by the Secretary- 
General. A/4180 (S/4205). August 11, 1959. 5 pp. 

Budget Estimates for the Financial Year 1960: Form of 
the Budget. Report by the Secretary-General. A/C.!>/ 
776. August 11, 19.59. 8 pp. 

Financial Reports and Accounts for the Financial Year 
Ended 31 December 1958 and Reports of the Board of 
Auditors: the United Nations, United Nations Partici- 
pation in the Expanded Programme of Technical As- 
sistance and the Technical Assistance Board Secretariat, 
the United Nations Suez Canal Clearance Operation 
and the United Nations Emergency Force. Fourth re- 
port of the Advisory Committee on Administrative and 
Budgetary Questions to the General Assembly at its 
14th session. A/41.53. August 12, 1959. 4 pp. 

Draft Convention on Freedom of Information : Comments 
by Governments. Report by the Secretary-General. 
A/4173. August 14, 19,59. 15 pp. 

Supplementary List of Questions Proposed for Inscription 
in the Agenda of the Fourteenth Regular Session of the 
General Assembly : Question Proposed by Morocco — 
Question of French Nuclear Tests in the Sahara. Letter 
dated August 13, 1959, addressed to the Secretary- 
General by the Acting Charg(? d'Affaires of the Per- 
manent Mission of Morocco to the United Nations. 
A/41S3. August 14. 1959. 3 pp. 

Supplementary List of Items for the Fourteenth Regular 
Session of the General Assembly : Item Projwsed by the 
Secretary-General — Proposed Amendments to Certain 
Provisions of the Pension Scheme Regulations of the 
International Court of Justice. A/41S4. August 14, 
1959. 1 p. 

Draft Declaration of the Rights of the Child. Note by 
the Secretary-General. A/4185. August 17, 1959. 2 pp. 

Supplementary List of Items for the Agenda of the Four- 
teenth Regular Session of the General Assembly : Item 
Proposed by India — Suspension of Nuclear and Thermo- 
nuclear Tests. Letter dated August 16, 1959, from the 
Permanent Representative of India to the United Na- 
tions, addressed to the Secretary-General. A/4186. 
August 17, 1959. 3 pp. 

Progress Achieved by the Non-Self-Governing Territories 
in Pursuance of Chapter XI of the Charter. Social 
Welfare. Report prepared by the Secretariat. A/4181. 
August 17, 1959. 155 pp. 

Supplementary List of Items for the Agenda of the Four- 



Ocfober 5, 7959 



489 



teenth Regular Session of the General Assembly. 
A/4189. August 2;j, 1959. 1 p. 

Budget Estimated for the Financial Year 1960. Revised 
Estimates for Sections 1. 6, 7, 14, 17, and 19 resulting 
from Decisions of the Economic and Social Council. 
Report of the Secretary-General. A/C.5/777. August 
25, 19.")9. 16 pp. 

Administrative and Budgetary Co-ordination Betn'een the 
United Nations and the Specialized Agencies, With Par- 
ticular Reference to the Expanded Programme of Tech- 
nical Assistance. Twelfth report of the Advisory Com- 
mittee on Administrative and Budgetary Questions to 
the General Assembly at its 14th session. A/4172. 
August 25, 1959. 45 pp. 

Progress Achieved by the Non-Self-Governing Territories 
in Pursuance of Chapter XI of the Charter. Report 
prepared by the Secretary-General in accordance with 
General Assembly resolution 1053 (XI). A/4192. 
Augiist 28, 1959. 88 pp. 

Report of the Committee on South West Africa to the 
General Assembly. A/4191. August .81, 19.59. 201 pp. 

Committee on South West Africa. Report of the Sub- 
committee on Legal Questions to the Committee on 
South West Africa. A/AC.73/2. August 31, 1959. 99 
pp. 

Diplomatic Intercourse and Immunities. Additional 
comments by governments concerning the draft articles 
on diplomatic intercourse and immunities adopted by 
the International Law Commission at its 10th session in 
1958. A/4164/Add. 1. August 31, 1959. 9 pp. 

Draft Convention on Freedom of Information : Comments 
by Governments. Report by the Secretarv-General. 
A/417.3/Add. 1. August 31, 1959. 6 pp. 

Progress Achieved by the Non-Self-Governing Territories 
in Pursuance of Chapter XI of the Charter: Associa- 
tion of Non-Self-Governing Territories With the Euro- 
pean Economic Community. Report of the Secretariat. 
A/4197. September 3, 19.59. 10 pp. 

Report of the Committee on Arrangements for a Con- 
ference for the Purpose of Reviewing the Charter. 
A/4199. September 8, 1959. 4 pp. 

United Nations Emergency Force : Manner of Financing 
the Force. Report of Secretary-General on consulta- 
tions with governments of member states. A/4176. 
September 10, 1959. 27 pp. 

United Nations Emergency Force. Report of the Secre- 
tary-General. A/4210. September 10. 19.59. 18 pp. 

Adoption of the Agenda and Allocation of Items. Memo- 
randum by the Secretary-General. A/BUR/1.51. Sep- 
tember 11, 1959. 15 pp. 



Economic and Socia! Council 

Economic Commission for Latin America. Analyses and 
Projection of Economic Development : VII. The Eco- 
nomic Development of Panama. Study carried out by 
a national working group appointed by Panama and by 
the ECLA secretariat. E/CN.12/494. April 15, 1959. 
497 pp. 

Economic Commission for Latin America. Progress Re- 
port on Studies Relating to the Inventory of Latin 
American Industry. E/CN.12/524. April 22, 1959. 54 
pp. 

Economic Commission for Latin America. Joint Report 
by the Executive Secretary of ECLA and the Execu- 
tive Secretary of the Inter-American Economic and So- 
cial Council on Co-operation and Co-ordination Be- 
tween the Two Secretariats. E/CN.12/515. May 18, 
1959. 4 pp. 

<3uestion of a Draft Declaration on Freedom of In- 
formation. Statement submitted by the International 
League for the Rights of Man, a non-governmental 
organization in category B consultative status. 
E/C.2/524. June 17, 1959. 2 pp. 

Technical Assistance Coumiittee. Allocation of Admin- 



istrative and Operational Services Costs Between Reg- 
ular and Expanded Programme Budgets. Communica- 
tion from the International Atomic Energy Agency. 
E/TAC/89. June 29, 1959. 2 pp. 

World Social Situation. Statement submitted by the 
Catholic International Union for Social Service, a non- 
governmental organization in category B consultative 
status. E/C.2/536'. June 29, 1959. 5 pp. 

Economic Development of Under-developed Countries. 
Report of the Economic Committee. E/3296. July 28, 
1959. 5 pp. 

Land Settlement in Asia and the Far East. Statement 
submitted by the World Veterans Federation, a non- 
governmental organization in categorv A consultative 
status. E/C.2/540. July 7, 19.59. 2 pp. 

World Economic Situation. Compendium of extracts 
from resolutions of the General Assembly and the Eco- 
nomic and Social Council involving principles of inter- 
national economic cooperation. Replies received from 
Governments pursuant to paragraph (a) of General 
Assembly resolution 1321 (XIII). Afghanistan. 
E/3202/Add.7. July 1.5, 19.59. 1 p. 

World Economic Situation. Survey of the world eco- 
nomic situation and General Assembly requests per- 
taining to international cooperation in economic fields. 
E/3292. July 22, 1959. 3 pp. 

Second United Nations Conference of Non-governmental 
Organizations Interested in the Eradication of Preju- 
dice and Discrimination: Ri^port to the Economic and 
Social Council on the Proceedings of the Conference, 
Geneva, Switzerland, 22-26 June 1959. E/NGO/CONF. 
2/7. July 28, 1959. 66 pp. 



TREATY INFORMATION 



U.S. and Liberia Sign 
Agreement of Cooperation 

Department Announcement 

Press release 643 dated September 10 

An agreement of cooperation between the 
Government of the United States of America and 
the Government of Liberia was signed at Wash- 
ington on July 8, 1959, by the Liberian Ambassa- 
dor, George A. Padmore, and by Donghis Dillon, 
Under Secretary of State. The agreement reaf- 
firms the cordial and unique relationship which 
has long obtained between the United States and 
Liberia, provides for mutual determination of ap- 
propriate action in the event of aggression or 
threat of aggression against Liberia, and re^ifhrms 
the intention of the U.S. Govermnont to continue 
to assist in the promotion of Liberia's economic 
development and in the preservation of Liberia's 
independence and integrity. 



490 



Department of State Bulletin 



Text of Agreement 

Press release 642 dated September 10 

Agreement op Cooperation Between the Government 

OF the United States of America and the Govern- 
ment OF Liberia 

The Government of the United States of America and 
the Government of Liberia, 

Desiring to strengthen peace in accordance with the 
principles of the Charter of the United Nations; 

Affirming their right to cooperate for their security and 
defense in accordance vvith Article 51 of the Charter of 
the United Nations; 

Recalling the unique relationship which has obtained 
between the peoples of the United States of America and 
Liberia for more than one hundred years ; 

Considering that the Government of the United States 
of America and the Government of Liberia are founded 
upon similar constitutional principles; 

Considering further that the peoples of the United 
States of America and Liberia share a common demo- 
cratic heritage ; 

Recalling that the Government of the United States of 
America has traditionally regarded itself as the next 
friend of the Government of Liberia ; and 

Reaffirming the historic interest of the Governuient of 
the United States of America in the preservation of the 
Independence and territorial Integrity of Liberia ; 

Have agreed as follows : 

Article I 

In the event of aggression or threat of aggression 
against Liberia, the Government of the United States 
of America and the Government of Liberia will im- 
mediately detennine what action may be appropriate for 
the defense of Liberia. 

Article II 

The Government of the United States of America, in 
accordance with applicable laws of the United States of 
America and with applicable agreements heretofore or 
hereafter entered into between the Government of the 
United States of America and the Government of Liberia, 
reaffirms that it will continue to furnish the Government 
of Liberia such assistance as may be mutually agreed 
upon between the Government of the United States of 
America and the Government of Liberia, in order to 
assist the Government of Liberia in the effective pro- 
motion of its economic development and in the preser- 
vation of its national independence and integrity. 

Article III 

This Agreement shall enter into force upon the date of 
its signature and shall continue in force until one year 
after the receipt by either Government of written notice 
of the intention of the other Government to terminate it. 

Done in duplicate at Washington, this eighth day of 
July, 1959. 

For the Government of the For the Government 
United States of America of Liberia 

C. Douglas Dillon George A. Padmorb 



U.S. and Argentina Begin 
Air Transport Negotiations 

Press release 652 dated September 1 

Delegations of the United States and Argentina 
met on September 15 to begin negotiations for the 
conclusion of a bilateral air transport agreement 
regulating air transportation between the two 
countries. At the present time the operation of 
international flights between the United States 
and Argentina is on the basis of individual per- 
mits issued to the airlines by the respective Gov- 
ernments. 

The Argentine delegation is headed by Vice 
Commodore Jose Luis Vails, Director General of 
Commercial Aviation. The other members are 
Minister Horacio Alberto Poiiela, Nestor Heri- 
berto Errecart, and Antonio Pandolfo. Henry T. 
Snowdon, chief of the Aviation Division of the 
Department of State, is the chairman of the U.S. 
delegation, which includes Bradley D. Nash, 
Deputy Under Secretary of the Department of 
Commerce, Joseph C. Watson and Dorothy 
Thomas of the Civil Aeronautics Board, and 
Gerald W. Eussell and Elizabeth Simmons of 
the Department of State. 



Current Actions 



MULTILATERAL 

Agriculture 

Protocol of amendment to the convention on the Inter- 
American Institute of Agricultural Sciences of Janu- 
ary 1.5, 1944 (58 Stat. 1109). Opened for signature at 
Washington December 1, 1958.' 
Ratified bij the President: August 20, 1059. 

Telecommunication 

International telecommunication convention. Signed at 
Buenos Aires December 22, 1952. Entered into force 
January 1, 1954. TIAS 3266. 
Ratification deposited: Bolivia, August 14, 1959. 

Wheat 

International wheat agreement, 1959, with annex. 
Opened for signature at Washington April 6 through 
24, 1959. Entered Into force July 16, 1959, for part I 
and parts III to VIII, and August 1, 10.59, for part II. 
Proclaimed by the President: September 9, 1959. 



BILATERAL 

France 

Agreement continuing in force, with modifications, the 
1946 air transport agreement, as amended (TIAS 1679, 



' Not in force. 



October 5, 1959 



491 



2106, 2257, and 2258). Effected by exchange of notes 
at Paris August 27, 1959. Entered into force August 
27, 1959. 

Mexico 

Agreement extending for 2 months, through October 31, 
19.59, the migrant labor agreement of August 11, 1951 
(TIAS 2331), as amended and extended. Effected by 
exchange of notes at Sl^xico August 31, 1959. Entered 
Into force August 31, 1959. 

Turkey 

Agreement amending the agreement of February 16 and 
July 1, 1954, relating to the loan of two U.S. subma- 
rines to Turkey (TIAS 3042). Effected by exchange of 
notes at Ankara August 28, 1959. Entered into force 
August 28, 1959. 

United Arab Republic 

Parcel post agreement and detailed regulations for the 
execution of the agreement. Signed at Cairo Decem- 
ber 30, 1958, and at Washington January 13, 1959. 
Enters into force October 1, 1959. 



DEPARTMENT AND FOREIGN SERVICE 



Department of State Celebrates 
170th Anniversary 



clerks and the Foreign Service was virtually non- 
existent. Only four foreign govemments — Great 
Britain, France, the Netherlands, and Spam — 
were reiircsented in the United States. 

Today the Department maintains relations with 
84 foreign governments and the United Nations. 
It has a staff of almost 7,000 employees at home 
and about 15,500 overseas. This growth parallels 
the rise of the United States from a small Repub- 
lic struggling to maintain its independence to the 
strongest and most influential member of the com- 
munity of free nations. It sprang from the ex- 
pansion and increasing complexity of foreign 
relations as our country developed its manifold 
resources in a climate of freedom and private 
enterprise and found itself holding an ever more 
important place in international political and 
economic life. 

Behind this growth lies the devoted service of 
thousands of members of the Department and 
Foreign Service at home and abroad who, through 
the years, have given their best effort to carrjnng 
out the foreign policies of our Government. The 
170th birthday of the Department is a fitting oc- 
casion for us to recall their contributions to the 
promotion of our Nation's welfare. 



Statement iy Secretary Herter 

Press release 654 dated September 16 

The year 1959 marks the I70th anniversary of 
the founding of the Department of State, the first 
executive department to be created under our Con- 
stitution. On July 27, 1789, President Washing- 
ton signed the act of Congress, often called "the 
organic law of the present Department of State," 
which set up a Department of Foreign Affairs and 
designated its head as Secretary for the Depart- 
ment of Foreign Affairs. By an act of Congress 
of September 15, 1789, those names were changed 
to Department of State and Secretary of State, 
with the addition of two new functions, custody 
of the records and Seal of the United States and 
publication of the acts of Congress. 

When Thomas Jefferson became the first Secre- 
tary of State,' his entire staff consisted of five 



* For an article on the numbering of the Secretaries of 
State, see BtnxEriN of July 20, 19.".9, p. 80. 



Department's Third-Ranking Officer 
To Serve on Coordinating Board 

White House press release dated September 16 

White House Announcement 

The President on September 16 signed an 
Executive order which relates to the membership 
of tlie Operations Coordinating Board. The 
effect of this Executive order will be to replace 
the Under Secretaiy of State, the Secretary of 
State's present representative on the Operations 
Coordinating Board, with the new third-ranking 
officer of the Department of State, the Under 
Secretary of State for Political Affairs. The 
issuance of this Executive order was necessitated 
by the enactment of P.L. 86-117 of July r,0, 1959, 
which made provision for an alternate title for 
the third-ranking officer of the Department of 
State, and the desire of the Secretary of State 
to have a greater flexibility in the assignment of 



492 



Department of Stale Bulletin 



duties to the second- and third- ranking officei-s 
of the Department of State/ 



Executive Order 10838 ' 

FuRTiii'B Ameniimfnt of Exf.cutive Okdkr No. 10700, as 
Amended, Promdino for the Operations Coordinating 
Board 

By virtue of the authority vested in me by the Consti- 
tution and statutes, and as President of the United States, 
it is ordered that section 1(b)(1) of Executive Order 
No. 10700 of February 25, 1957,^ as amended by Executive 
Order No. 10773 of July 1, 1958, be, and it is hereby 
amended to read as follows : 

"(1) the Under Secretary of State for Political Affairs, 
who shaU represent the Secretary of State,". 



/(_) (_4.S-y-/L4Z^U-lC.JL^ A^KfJ-^ 



The White House, 
September 16, 1959. 



FSI Begins Second Course 
for Senior Officers 

The Department of State announced on September 14 
(press release 6.50) that Deputy Under Secretary Loy 
Henderson on that day had officially convoked the second 
session of the senior officer course at the Foreign Serv- 
ice Institute. A year ago Secretary Dulles inaugurated 
the first senior officer course, which, upon the completion 
of its work, was addressed by President Eisenhower at 
graduation ceremonies held on June 12, 19.59.' 

Benefiting from the experiences gained in the first 
year's course, the second session of the course will have 
19 participants comprising carefully selected officers of 
the Foreign Service, of the Departments of Agriculture 
and of State, and from the U.S. Information Agency, the 
International Cooperation Administration, and the Cen- 
tral Intelligence Agency. Also attending the course are 
a Navy captain and colonels of the Army, Air Force, and 
Marine Corps. 

Harold B. Hoskins, director of the Foreign Service In- 
stitute, defined the purpose of the course to be the prepa- 
ration of career oflicers for the highest positions of re- 
sponsibility in policy recommendation and execution 



' For a White House announcement of the Secretary's 
request for such legislation, see Bulletin of May 18, 
1959, p. 730. 

' 24 Fed. Reg. 7519. 

° For text, see Bulletin of Mar. 25, 1957, p. 505. 

* For text of remarks made by President Eisenhower 
and Acting Secretary Dillon, see Bulletin of July 6, 1959, 
p. 35. 



within the Washington offices of the agencies represented, 
in diplomatic and consular posts abroad, and in inter- 
agency and international organizations. The course is 
under the supervision of AVillard F. Barber, assisted by 
John P. Hoover, both career Foreign Service officers, who 
together organized the curriculum and program for the 
year's work. 

The 1959-60 course of study includes the following sub- 
jects: (1) administrative management and leadership; 

(2) recent developments in the arts and the natural, 
physical, and social sciences; (3) domestic influences af- 
fecting U.S. foreign policy; (4) outer space and arms 
control; (5) area studies ; (6) examination of the moans 
of foreign policy determination and implementation ; and 

(7) current foreign policy problems. 



Foreign Service Examination 
To Be Held December 5, 1959 

In response to thousands of inquiries received from 
all areas of the country concerning a career with the 
Foreign Service Officer Corps, the Department of State 
on September 8 (press release 639) again announced that 
the next written Foreign Service officer examination will 
be held on December 5, 1959, in approximately 65 centers 
throughout the United States and at Foreign Service 
posts abroad.' 

In recruiting officers in the past the Foreign Service 
has sought young men and women with broad and gen- 
eral backgrounds. The need for such "generalist" offi- 
cers has not lessened, but with the more varied types of 
positions now being filled by Foreign Service officers 
there is an increased need also for persons with special- 
ized training. The Foreign Service requires officers who 
will specialize in such fields as public and business 
administration and economics, as well as in language and 
area studies, international labor affairs, and political 
science. 

Within the nest few weeks Foreign Service officers will 
visit a large number of colleges and universities through- 
out the continental United States and Alaska, Hawaii, 
and Puerto Rico to explain fully the opportunities in 
the Foreign Service which await qualified young men 
and women. 

Application forms and other information may be 
obtained immediately by writing to the Board of Exam- 
iners for the Foreign Service, Department of State, 
Washington 25, D.C. All applications to take the writ- 
ten examination must be received by the close of business 
October 19, 1959. 



Closing of Consular Agency at Malaga, Spain 

The American consular agency at Malaga, Spain, was 
closed to the public effective August 14. 



' For an earlier announcement, see Bulletin of May 18, 
1959, p. 729. 



October 5, 1959 



493 



Designations 

Raymond B. Allen as director of the U.S. Operations 
Mission, Indonesia, effective August 30. (For biographic 
details, see Department of State press release 649 dated 
September 14.) 

Alvin Roseman as ICA regional director for the Far 
East, effective Septemljer 18. (For biographic details, 
see Department of State press release 658 dated Septem- 
ber 18.) 

John H. Tobler as director of the U.S. Operations Mis- 
sions, Laos, effective August 28. (For biographic details, 
see Department of State press release 628 dated 
September 2.) 

John W. Tuthill as director, Ofl3ce of European Regional 
Affairs, effective September 9. 



PUBLICATIONS 



Exchange of notes — Signed at Helsinki May 30, 1959. 
Entered into force May 30, 1959. 

Surplus Agrricultural Commodities. TIAS 4242. 3 pp. 5^. 

Agreement between the United States of America and 
Ceylon, amending agreement of March 8, 1959. Exchange 
of notes — Signed at Colombo May 28, 1959. Entered Into 
force May 28, 1959. 

Surplus Agricultural Commodities. TIAS 4243. 4 pp. 5^. 

Agreement between the United States of America and 
Poland, agreement amending agreements of June 7, 1957, 
as amended, and February 15, 1958, as amended. Ex- 
change of notes — Signed at Washington May 26 and 29, 
1959. Entered into force May 29, 1959. 

Defense — Loan of Floating Dry Dock to Peru. TIAS 
4244. 5 pp. 5^. 

Agreement between the United States of America and 
Peru. Exchange of notes — signed at Washington June 
15, 1959. Entered into force June 15, 19.59. 

Special Technical Assistance — Cooperative Cholera Re- 
search Program. TIAS 4247. 3 pp. 5<(. 

Agreement between the United States of America and the 
South-Ba.st Asia Treaty Organization (SEATO). Ex- 
change of notes — Signed at Bangkoli May 29, 1959. En- 
tered into force May 29, 1959. 



Recent Releases 

For sale by the Superintendent of Doeuments, U.S. Oov- 
ertiment Printing Office, Washington 25, D.C. Address 
requests direct to the Superintendent of Documents, ex- 
cept in the case of free puhlications, ichich may 6e o6- 
tained from the Department of State. 

Atomic Energy — Cooperation for Civil Uses. TIAS 4236. 
3 pp. 5^. 

Agreement between the United States of America and 
Switzerland, amending agreement of June 21, 1956. 
Signed at Washington April 24, 1959. Entered into force 
June 8, 1959. 

Mutual Aid Under Article 3 of the North Atlantic Treaty — 
Costs for Maintenance of United States Forces. TIAS 
4237. 12 pp. 10^. 

Agreement between the United States of America and 
the Federal Republic of Germany. Exchanges of notes^ 
Signed at Bonn June 7, 1957. Extension arrangement 
effected by exchange of notes — Dated at Bonn and Bad 
Godesberg July 9 and 23, 1958. Entered into force May 
12, 1959. 

Special Technical Assistance — Detail of Tax Experts. 

TIAS 4240. 5 pp. 5f 

Agreement between the United States of America and 
Malaya. Exchange of notes — Dated at Kuala Lumpur 
May 19 and 22, 1!K59. Entered into force May 22, 1959. 

United States Educational Foundation in Finland. TIAS 
4241. 3 pp. 5f 

Agreement between the United States of America and 
Finland, amending agreement of July 2, 1952, as amended. 



No. Date 



Checi< List of Department of State 
Press Releases: September 14-20 

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

Releases issued prior to September 14 which 
appear in this issue of the Bulletin are Nos. 638 
and 639 of September 8, 642 and 643 of September 
10, and 645 of September 11. 

Subject 

Wool-fabric tariff negotiations. 

Israel credentials (rewrite). 

Allen designated USOM director, Indo- 
nesia (biographic details). 

FSI senior officer course (rewrite). 

Soviet proposal on Laos. 

Air transport talks with Argentina. 

Herter : message to Chancellor Ade- 
nauer. 

Herter : 170th anniversary of State 
Department. 

Palmer sworn in as USOM director, 
Japan. 

Herter: "Peaceful Change." 

Secretary Herter and party leave for 
General Assembly. 

Roseman sworn in as ICA regional 
director. Par East (biographic 
details). 

Validity of passports increased. 



647 
t648 
*649 

1650 
651 
652 

t653 

654 

♦655 

656 
657 



9/14 
9/14 
9/14 

9/14 
9/15 
9/16 
9/16 

9/16 

9/16 

9/17 
9/17 



*658 9/18 



659 9/18 



*Not printed. 

tlloUl for a later issue of the IU'lletin. 



494 



Department of Stale Bulletin 



October 5, 1959 



Index 



Vol. XLI, No. 1058 



Argentina. U.S. and Argentina Begin Air Trans- 
port Negotiations (delegations) 491 

Asia. Koseman designated ICA regional director 

for the Far East 494 

Atomic Energy. Peaceful Change (Herter) . . 467 

Aviation. U.S. and Argentina Begin Air Trans- 

liort Negotiations (delegations) 491 

Congress, The. Congressional Documents Relat- 
ing to Foreign I'olicy 483 

Department and Foreign Service 

Closing of Consular Agency at Malaga, Spain . . 493 
Department of State Celebrates ITOth Anniversary 

(Herter) 492 

Department's Third-Ranking OtBcer To Serve on 

Coordinating Board (Executive order) .... 492 
Desiguation« (Allen, Roseiuan, Tobler, Tuthill) . 494 
Foreign Service Examination To Be Held December 

5, 1959 403 

FSI Begins Second Course for Senior OflSeers . . 493 

Disarmament. Peaceful Change (Herter) . . . 467 

Economic Affairs 

Bank and Fund Announce Increases in Resources . 488 
U.S. To Undertake Renegotiations on Wool-Fabric 
Tariff: Concessions 481 

Educational Exchange. Role of the Teacher in 
Promoting Peace and Understanding (Eisen- 
liower) 479 

Europe. Tuthill designated director, Office of 

European Regional Alfairs 494 

Germany. Peaceful Change (Herter) 467 

Indonesia. Allen designated director, USOM . 494 

International Information. 19.59 Paeiflc Festival 

(text of proelaiuation) 483 

International Organizations and Conferences 

Bank and Fund Announce Increases in Resources . 488 
Calendar of International Conferences and Meet- 
ings 485 

U.S. Reaffirms Economic Support for Regional 
Members of CENTO (Kennedy) 487 

Laos 

Tobler designated director, USOM 494 

U.S. Rejects Soviet Proposal for Conference on 
Laos 475 

Liberia 

President of Liberia Expresses Sympathy for 

Earthquake Victims (Eisenhower, TTibmau) . . 481 

U.S. and Liberia Sign Agreement of Cooijeratiou 

(text of agreement) 490 

Middle East. U.S. Reaffirms Economic Support for 

Regional Members of CENTO (Kennedy) . . . 487 



Mutual Security 

Allen designated director, USOM, Indonesia . . . 494 

Development liOaus (I'akistan) 482 

Rosenum designated ICA regional director for the 

Far East 494 

Tobler designated director, USOM, Laos .... 494 
U.S. and Liberia Sign Agreement of Cooperation 

(text of agreement) 490 

Pakistan. Development Loans 482 

Passports. Initial Validity of Passports Increased 

to 3 Years 481 

Presidential Documents 

Chairman Nikita S. Khrushchev of the Soviet 

Union Arrives for U.S. Visit 476 

Department's Third-Ranking Officer To Serve on 

Coordinating Board 492 

1959 Pacific Festival 433 

President of Liberia Expresses Sympathy for 

Earthquake Victims 48I 

Role of the Teacher in Promoting Peace and 

Understanding 479 

Publications. Recent Releases 494 

Spain. Closing of Consular Agency at Malaga, 

Spain 493 

Treaty Information 

Current Actions 491 

U.S. and Argentina Begin All- Transport Negotia- 
tions (delegations) 491 

U.S. and Liberia Sign Agreement of Cooperation 

(text of agreement) 490 

U.S.S.R, 

Chairman Nikita S. Khrushchev of the Soviet 
Union Arrives for U.S. Visit (joint statement, 
exchanges of greetings and toasts, Department 
statement) 47g 

U.S. Rejects Soviet Proposal for Conference on 
Laos 475 

United Nations 

Current U.N. Documents 489 

Peaceful Change (Herter) 467 

Secretary Herter and Advisers Depart for 14th 
General Assembly 475 

Navie Index 

Allen, Raymond B 494 

Eisenhower, President 476, 479, 481, 483, 492 

Herter, Secretary 467, 475, 492 

Kennedy, Donald D 487 

Khrushchev, Nikita S 476 

Roseman, Alvin 494 

Tobler, John H 494 

Tubman, Vi^. V. S 481 

Tuthill, John W 494 



II S GOVERNMENT PRINTING OFFICE I9S9 



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Department 



Vice Presidetit Nixon's Visit to 
the Soviet Union and Poland 



Of 

State 



On July 24 Vice President Richard M. Nixon officially 
opened the American National Exhibition in Sokolnilfi Park, 
Moscow. After a series of talks with Soviet officials at Moscow, 
the Vice President made a 4,448-mile tour of the Soviet Union, 
stopping at Leningi-ad, Novosibirsk, and Sverdlovsk. Mr. Nixon 
left Moscow on August 2 for a 3-day visit at Warsaw, Poland. 

This 50-page pamphlet contains the record of what Mr. Nixon 
said on the various occasions when he spoke to the people of tlie 
Soviet Union and Poland, together with other relevant docu- 
ments including some of the addresses and remarks made in 
response to Mr. Nixon by officials of the host goverimients. 



Publication 6SS1 



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Vraer torm j Please send me copies of Toward Better Understanding - Vice 

I President Nixon's Visit to the Soviet Union and Poland 

To: Siipi. of Documents 5 

, <jovt. Printing Office 

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ARTMENT OF STATE 



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DEPOSITORY 



Vol. XLI, No. 1059 



October 12, 1959 



HE 

FFICIAL 

yEEKLY RECORD 
F 

NITED STATES 
OREIGN POLICY 



PRESIDENT EISENHOWER AND CHAIRMAN 
KHRUSHCHEV ISSUE COMMUNIQUE AT 
CONCLUSION OF TALKS AT CAMP DAVID ... 499 

THE U.N. AS A PEACE MECHANISM • Remarks by 

Secretary Herter 50^ 

ROLE OF THE HUMANITIES IN INTERNATIONAL 

RELATIONS © by Robert H. Thayer 510 

EXPANDING WORLD TRADE FOR THE BENEFIT 

OF ALL • Remarks by Ambassador Karl L. Rankin . . 513 

AGENDA OF THE 14TH REGULAR SESSION OF 

THE U.N. GENERAL ASSEMBLY 522 

GENERAL ASSEMBLY AGAIN DECIDES NOT TO 
CONSIDER QUESTION OF CHINESE REPRE- 
SENTATION e Statement by Walter S. Robertson . . 517 



For index see inside back cover 



THE DEPARTMENT OF STATE 




Vol. XLI, No. 1059 • Pubucation 6891 
October 12, 1959 



For sale by the Superintendent of Documents 

U.S. Qovernment Printing Office 

Washington 26, D.C. 

Price: 

62 Issues, domestic $8.50, 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, 1968). 

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



The Department of State BULLETIN, 
a tveekly publication issued by the 
Public Services Division, Bureau of 
Public Affairs, provides the public 
and interested agencies of the 
Government with information on de- 
velopments in the field of foreign rela- 
tions and on the work of the Depart- 
ment of State and the Foreign Service. 
The BULLETIN incluiies selected press 
releases on foreign policy, issued by 
the White House and the Department, 
and statements and addresses made 
by the President and by the Secretary 
of State and other officers of the De- 
partment, as well as special articles on 
various phases of international affairs 
and the functions of the Department. 
Information is included concerning 
treaties and international agreements 
to which the United States is or may 
become a party and treaties of general 
international interest. 

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



President Eisenhower and Chairman Khrushchev Issue 
Communique at Conclusion of Talks at Camp David 



Nikita S. Khrushchev, Chairman of the Council 
of Ministers of the U.S.S.R., left Washington on 
Septe?nber £7 after a 13-day visit in the United 
States.^ Following is the text of a joint commu- 
nique released at the conclusion of his talks icith 
President Eisenhower at Camp David, the Presi- 
dents retreat in the Catoctin Mountains in Mary- 
land, together with an exchange of toasts between 
Secretary Herter arid Mr. Khnishchev at a lunch- 
eon given in the Chah'm/irCs honor hy Mr. Herter 
at Anderson House, Washington, D.C., on Sep- 
tember 25. 



JOINT COMMUNIQUE 

White House (Gettysburg, Pa.) i)ress release dated September 27 

The Chairman of the Council of Ministers of the 
U.S.S.K., N. S. Khrushchev, and President Eisen- 
hower have had a frank exchange of opinions at 
Camp David. In some of these conversations 
United States Secretary of State Herter and So- 
viet Foreign Minister Gromyko, as well as other 
officials from both countries, participated. 

Chairman Khrushchev and the President have 
agreed that these discussions have been useful in 
clarifying each other's position on a number of 
subjects. The talks were not undertaken to nego- 
tiate issues. It is hoped, however, that their 
exchanges of views will contribute to a better un- 
derstanding of the motives and position of each 
and thus to the achievement of a just and lasting 
peace. 



^ For statements made at the time of Mr. Khrushchev's 
arrival, see Bulletin of Oct. 5, 1959, p. 476. 



The Chairman of the Council of Ministers of the 
U.S.S.R. and the President of the United States 
agreed that the question of general disarmament 
is the most important one facing the world today. 
Both governments will make every effort to acliieve 
a constructive solution of this problem. 

In the course of the conversations an exchange 
of views took place on the question of Germany in- 
cluding the question of a peace treaty with Ger- 
many, in which the positions of both sides were 
expounded. 

With respect to the specific Berlin question, an 
understanding was reached, subject to the approval 
of the other parties directly concerned, that nego- 
tiations would be reopened with a view to achiev- 
ing a solution which would be in accordance with 
the interests of all concerned and in the interest 
of the maintenance of peace. 

In addition to these matters useful conversations 
were held on a number of questions affecting the 
relations between the Union of Soviet Socialist 
Republics and the United States. These subjects 
included the question of trade between the two 
countries. With respect to an increase in ex- 
changes of persons and ideas, substantial progress 
was made in discussions between officials and it is 
expected that certain agreements will be reached 
in the near future. 

The Chairman of the Council of Ministers of 
the U.S.S.R. and the President of the United 
States agreed that all outstanding international 
questions should be settled not by the application 
of force but by peaceful means through negotia- 
tion. 

Finally it was agreed that an exact date for the 
return visit of the President to the Soviet Union 



Ocfober 72, 1959 



499 



next spring would be arranged through diplo- 
matic channels. 



EXCHANGE OF TOASTS 

Secretary Herter 

Press release 675 dated September 25 

Mr. Chairman, Soviet guests. You liave been 
in our country over a week. You have had a 
crowded schedule, and I can assure you we admire 
your stamina. In this short period you have vis- 
ited some of our major cities and met a number of 
local government officials and private citizens. 
You have experienced differing situations just as 
persons in political life meet them daily through- 
out this country. We want you to see us as wei 
are. The airing of differences in our free society 
is normal and actually promotes better under- 
standing. 

Beginning this evening you will have opportu- 
nities for quiet discussion with President Eisen- 
hower at Camp David. We hope these discussions 
will create greater understanding between our 
countries and, thereby, serve the larger cause of 
world peace. We also hope you will take back 
with you a good impression of the United States, 
its people and way of life. 

To the Chairman of the Council of Ministers of 
the U.S.S.R. and the people of the U.S.S.R. ! 

Chairman Khrushchev 

UnoCBcial translation 

I am slad to hear the Secretary's remarks and fully 
agree. On behalf of my friends who came with me and 
for myself, I was very glad to have the invitation of the 
President and have enjoyed my stay here. 

There may have been misunderstandings when we 
voiced frank opinions differing from other speakers. We 
understand that some were displeased. But we were only 
voicing opinions. 

Perhaps you do not understand our ways well enough. 
We in our country have differences as you do. But you 
dramatize yours more than we. AVe differ more calmly 
usually because both sides have the same basis. But 
there have been cases where differences assumed dramatic 
form. There is no need to cite specific cases — all here 
realize what I have in mind. 

But we must not permit this to liamper improvement 
in our relations and in the strengthening of ties between 
our countries. I am glad to have met so many Ameri- 
cans. Our meetings confirmed our concept that we must 
improve relations. 

We will do all we can in our talks with the President 

500 



to the advantage of both sides. After our return we will 
strive to improve relations. We are sure that our people 
will approve of our work here. They greatly desire an 
improvement of relations. 

To your great President, Dwight D. Eisenhower, the 
American people, our host, Secretary Herter, and guests 
around the table! 



Letters of Credence 

Israel 

The newly appointed Ambassador of Israel, 
Avraham Harman, presented his credentials to 
President Eisenhower on September 14. For 
texts of tlie Ambassador's remarks and tlie Pres- • 
ident's reply, see Department of State press re- 
lease 648 dated September 14. 



President and Secretary Herter 
Comment on Algeria Plan 

statement by President Eisenhower 

White House press release dated September 17 

While I have read General de Gaulle's speech,' 
I have not yet been able to give it the careful and ' 
sympathetic study it deserves. Therefore, I do 
not want to comment on tlie details. 

It is a far-reacliing declaration, containing ex- 
plicit promises of self-determination for the Al- 
gerian peoples and as such, completely in accord 
witli our hopes to see proclaimed a just and liberal 
program for Algeria whicli we could support. I 
am greatly encouraged by General de Gaulle's 
courageous and statesmanlike declaration. It is 
our hope that it will lead to an early peace. And 
I might add that it is a plan I tliink is worthy of 
General de Gaidle's efforts. 

Statement by Secretary Herter 

Press release 664 dated September 22 

In the light of President Eisenhower's state- 
ment of September 17, on Algeria, the United 
States delegation to the present General Assembly 
of the United Nations naturally hopes that no 



'Gen. Charles de Gaulle, President of the Council of 
Ministers of the French Republic, made a television ad- 
dress at Paris on Sept. 1(5 on the subject of Algeria. 

Deparfmenf of Sfofe Bo/fefin 



action will be taken here which would prejudice 
the realization of a just and peaceful solution for 
Algeria such as is promised by General de Gaulle's 
far-reaching declaration with its provision for 
self-determination by the Algerian people. 



and I wish you many more productive years in 
the interests of your own country and those of the 
free world. 

With assurances of my continued esteem and 
friendsliip, 

DwiGHT D. Eisenhower 



President and Secretary Congratulate 
Mr. Adenauer on 10th Anniversary 

Following are two exchanges of messages with 
Konrad Adenauer on his 10th anniversary as 
Chancellor of the Federal Republic of Germany. 



EXCHANGE BETWEEN PRESIDENT EISENHOWER 
AND CHANCELLOR ADENAUER 

President Eisenhower's Message 

White House press release dated September 16 

September 11, 1959 
His Excellency 
Dr. KoNRAD Adenauer 
Chancellor of the 
Federal Republic of Germany, 
Bonn 

On (he tenth anniversary of the assumption of 
your duties as Chancellor of the Federal Repub- 
lic of Germany, I send most cordial personal greet- 
ings. On behalf of the American people I con- 
gratulate you for your historic contribution not 
only to the affairs of your own country but to 
those of the European community as a whole. 
Through your dedication and inspiring leader- 
ship, the Federal Republic has risen out of the 
chaos of war to a position of influence and re- 
sponsibility in the community of free nations. 
Moreover, there has been developed in Germany 
a government guided by the principles of democ- 
racy and motivated by a sincere desire to play a 
positive role in the great movement toward Euro- 
pean cooperation and integration. Your effective 
work in developing understanding between our 
two peoples has also been a contribution of major 
significance. It was a most valued and enjoyable 
opportunity to confer with you in Bomi recently,^ 



• Bulletin of Sept. 14, 1959, p. 371. 
Ocfober 12, 7959 



Letter From Chancellor Adenauer 

Bonn, September 18, 1059 

Dear Friend: I am deeply touched by the congratula- 
tions you sent me, also on behalf of the American people, 
on the occasion of the tenth anniversary of my taking 
office, and by the complimentary words which you ad- 
dressed to me. 

The fact that out of the chaos of the last war the 
Federal Republic evolved into a healthy and vigorous 
nation is due to a considerable degree to the generous 
help given by the American people in the first years after 
the war. The brotherly hand extended to the vanquished 
nation has made possible the regeneration of the Federal 
Republic as a democratic and free state in the community 
of free nations. I remember on this day with special 
gratitude the human greatness of the American people 
and Its leaders in the decisive post-war years and the 
feelings of brotherhood and friendship shown to the Ger- 
man people. 

Your visit in Bonn was further proof of the growing 
friendship between our two nations. During the coming 
years in my office it will be a matter close to my heart 
to further strengthen and deepen the friendship which 
links us with your people and with the other nations in 
the community of free nations. May success crown our 
joint efforts for closer integration of Europe and an even 
more active cooperation among the free nations within 
the Atlantic Community which you have served so em- 
inently by your journey. 

With best wishes for the forthcoming discussions and 
with the assurance of my constant respect and friend- 
ship. As ever, yours, 

Adenatjer 



EXCHANGE BETWEEN SECRETARY HERTER AND 
CHANCELLOR ADENAUER 

Secretary Herter's Message 

Press release 653 dated September 16 

As you complete your tenth year as Chancellor 
of the Federal Republic of Germany, I wish to 
convey to you heartiest congratulations for a 
decade of fruitful endeavor for Germany and the 
free world. In the face of great odds you have 
guided the material and spiritual restoration of 
your nation on the path to peace and freedom. 
I wish you the best of health and strength. I 

501 



shall continue to rely on your close and friendly 
cooperation as we seek to realize our common 
objectives. 

Letter From Chancellor Adenauer 

Bonn, September IS, l9')9 

Deab Mb. Hebter: I wish to tbank you very much for 
the congratulations you sent me on the occasion of the 
tenth anniversary of my talking office. The successes 
which the Ferleral Government under my direction was 
able to achieve in the reconstruction of our country were 



made possible to a large degree by the help given us by 
our former adversaries in the war and present allies — 
iu particular the U.S.A. 

On this day I remember with special gratitude my 
friend, the late John Foster Dulles, whose efforts towards 
formulating our common policy and making the com- 
munity of free nations unified and in.separable will not 
be forgotten. You may rest assured that I shall always be 
at your side in your efforts for the accomplishment of our 
common goals. 

With best personal regards, I am. 
Sincerely, 

Adenatjes 



The U.N. as a Peace Mechanism 



Press release 667 dated September 23 
REMARKS BY SECRETARY HERTER > 

I thank you for the very kind introduction and 
also for this privilege of meeting a group that is 
translating to the world events related to an in- 
stitution that is coining to have a universal mean- 
ing as one of the leading mechanisms that human- 
ity has devised for trying to adjust the many 
illnesses of the world. 

If I seem to speak with overenthusiasm about 
the United Nations, it is due to the fact that I 
happen to be one of those who had the utmost 
faith in the effort which was made in comiec- 
tion with the League of Nations after World War 
I. Very frankly, I left, the Department of State, 
with which I Inid been serving, when the Senate of 
the United States and Woodrow Wilson between 
them in their entanglement over amendments 
refused to bring the United States into that body. 

The United Nations is a second effort. I hope 
it will last. I hope that as a peace mechanism it 
will be able to adjust itself to the inevitable change 
that we must look forwaid to in a constantly 
changing world, so that it will become a constant 
factor and a continuing factor in the adjustment 
of those matters that unfortunately through the 
mechanisms of war can become of tremendous 
danger to all of mankind. 



Today I do not pretend to be making a speech. 
I just want to say a few words, first, with regard 
to my own convictions with respect to the United 
Nations, with all of the very obvious difficulties 
that any of us can point out from the point of view 
of the diiBculties which the Security Comicil lias 
had in functioning over the years and the char- 
acter of representation in the Assembly, where 
size, influence, and importance are not the criteria 
but where the independence of a group of people 
is one of the criteria. 

As of this moment, there are two matters that I 
would like to refer to before getting to the mat- 
ter which you yourselves would like to talk about, 
which I hope will be brought out in questions. 
One is the question of disarmament. The second 
is the question of Algeria. 

Disarmament 

The speech made by Mr. Khrushchev, in which 
he advanced a program for complete disarmament 
down to the limit of forces required for internal 
securitj', is a speech that requires very close atten- 
tion and the very closest study.'- It deals with a 
subject in wliich all of us must be interested. It 
deals with a subject to which all of us sliould be 
turning a very large part of our attention. It is a 
subject of vital interest not only to the nations 
that are heavily armed and that are very powerful 



' Made before the United Nations Correspondents Asso- 
ciation at New York, N.Y., on Sept. 22. 



' Nikita S. Khrushchev, Chairman of the Council of Min- 
isters of the U.S.S.U., addressMi the 14th session of the 
U.N. General Assembly on Sept. 18. 



502 



Department of State Bulletin 



hut to all the smaller nations who see in arma- 
ments not alone the danger of their being en- 
gulfed against their will in worldwide war but 
also in the extravagance that the human race 
cannot afford at a time when capital is reciuired 
so badly to lift the standard of living of so many 
nations and so many peoples. 

On the other hand, the speech did not contain 
any very novel proposals. It was detailed. It 
followed very much the line of Litvinov's of some 
35 years ago, a little over that. But it did echo 
sentiments that are very widely held, that, if it 
were practical and if it could safely be done, the 
type of disarmament that Mr. Khrushchev has 
spoken about is a highly desirable thing for man- 
kind. From that point of view it must be taken 
verj' seriously. As I indicated in the very brief 
statement I made just after the conclusion of his 
speech,^ the great stumbling block to any dis- 
armament scheme of the ambitious size of Mr. 
Khrushchev's is the question of controls. Having 
sat very close to conferences in which even minor 
matters — and I call them minor compared to 
this — such as the cessation of nuclear tests are con- 
cerned, controls seem to be the vital element in 
making a quick agreement at least very, very diffi- 
cult. That matter of controls is going to require 
a very careful study. 

The second matter that is going to require very 
careful study — one which wasn't mentioned in 
Ms speech at all — is this : Assuming one can reach 
the state in all of the nations of the world that he 
had pointed out, namely, that of having only such 
levels of forces and such armament as are required 
for intenial security, then what, if any, force will 
there be other than moral force with which to 
maintain tlie peace as between nations which, dis- 
regarding annaments, insist on going to war with 
each other even if it is with knives. Are we going 
to come to a jwint where we are going to develop 
some form of international police force of suffi- 
cient strength and subject to a controlled direc- 
tion on which the nations of the world can agree, 
which can be effective in maintaining the peace 
for all the world? 

These are mattere, I say, that cannot be treated 
with skepticism or treated lightly. I have be- 
come a little impatient at tliose who merely waved 
off Mr. Khrushchev's suggestions as propaganda. 



It is propaganda. It is in its details something 
that can be looked at with skepticism, but it rep- 
resents an effort of mankind to reach the solution 
of one, at least, of the major pi-oblems of the world 
which is a great threat to the world itself. 

Question of Algeria 

The second matter that I wanted to speak of 
veiy briefly was the question of Algeria. Since 
De Gaulle's declaration with regard to Algeria, 
the President has commented on it and commented 
on it with considerable clarity.'' At the same time, 
at that press conference of his, he was asked what 
the attitude of the United States would be with 
respect to its vote and actions at the United Na- 
tions bearing on Algeria, and he stated that this 
was a matter on which he did not wish to commit 
himself before having consulted with his foreign 
policy advisers. We have been asked that ques- 
tion a number of times by interested nations and 
nations who are obsei-vers and have no direct in- 
terest in that problem. And I have here in writ- 
ten form the answer to that question as of now. 
I am going to read it because the wordmg is very 
carefully thought through — and I think Mr. Berd- 
ing has copies of it, which he will be glad to dis- 
tribute to you. It reads as follows : 

In the light of President Eisenhower's statement of 
September 17 on Algeria, the United States delegation to 
the present General Assembly of the United Nations nat- 
urally hopes that no action will be taken here which 
would prejudice the realization of a just and peaceful 
.solution for Algeria such as is promised by General de 
Gaulle's far-reaching declaration with its provision for 
self-determination by the Algerian people. 

Now, obviously on this Algerian matter, as in a 
number of other matters before the United Na- 
tions at this session, it is too early as of now to 
know just what form any contemplated or sug- 
gested action might take. The Arab states are 
discussing the matter among themselves. I tliink 
that there are meetings going on in Tmiisia and 
perhaps elsewhere of those who have a very great 
mterest in the solution of this problem, and as 
yet they have not expressed themselves on Gen- 
eral de Gaulle's proclamation. 

In this statement that I have just made, there 
is no effort to go into the details of General de 
Gaulle's declaration. Some of them are still 



" See p. 508. 
Ocfober 72, 1959 



* See p. 500. 



503 



somewhat obscure. Whether they will be clarified 
in time, we of course don't know. And so there is 
no pretense to say that we believe that in General 
de Gaulle's declaration every last detail of what 
he has suggested is the right thing, because we 
just don't know. But from the point of view of 
his having gone a long way — a way which he only, 
I think, in France could have gone — toward the 
solution of this problem, we feel that a great stride 
has been taken, and we hope that this very quarrel- 
some and very bothersome and potentially dan- 
gerous problem with which the United Nations 
has had to deal for some yeare and which as of 
now has engendered war for a period of 5 years 
can be adjusted. 

With respect to other matters now pending be- 
fore the United Nations, I would be delighted to 
answer questions to the extent of my knowledge. 
I served for many years in the Legislature of Mas- 
sachusetts and was once for a time of 4 years 
chairman of its Rules Committee and the Speaker. 
I likewise served on the Rules Committee of the 
House of Representatives in Washington, and I 
thought I had gotten to know the rules of those 
two bodies very well. But, having come face to 
face directly with United Nations problems of 
procedure, I have a feeling that it is going to take 
me a long time to learn what all of you probably 
know instinctively with regard to the procedures 
at the United Nations. As of now, they strike 
me as quite complicated, but complicated proce- 
dures are always an essential part of a deliberative 
body such as the United Nations is. And so, if 
I find myself stuck on a question that you may ask 
as to where things are going to move and how 
they are going to move there, I hope you will for- 
give me. 

QUESTIONS AND ANSWERS 

Pauline Frederick, president. United Nations 
Correspondents Association; National Broadcast- 
ing Co.: So that we may save as much time as 
possible, getting as many questions in as possihle, 
when you are called on, please stand and identify 
yourself, as usual, your name and your affiliation. 
Please state your question in stentorian tones so 
they won't have to he repeated, which xoill take up 
time, and please make them as brief as possible. 
If you are ready, Mr. Secretary, we will welcome 
questions. 



Otto Leicheter, Deutsche Presse Agentur, Ham- 
burg: Mr. Secretary, in your speech before the 
General Assemhly,' you touched on the German 
qu£stion. May I ask you, if you were to evaluate 
the situation of West Berlin today, would you 
think that the tension has tapered off, or do you 
still look with the same concern and apprehension 
on the situation of West Berlin as you looked at it 
before the Geneva conference and before recent 
events? 

Secretart Herter : I don't think that the West 
Berlin situation presents as active a crisis as it did 
after the November 10 speech of Mr. Ivhrushchev's 
and the note that he sent to the three occupying 
powers.* That is one thing that is very difficult to 
gage if you are speaking in terms of the West Ber- 
liners themselves. I went to Berlin in July and 
found that the industrial activity and productiv- 
ity of the city of West Berlin had increased very 
considerably between November 10 and that par- 
ticular day in July. In other words, the people 
of Berlin had shown a fortitude, had shown an 
effort to move ahead with their ordinary industrial 
lives, which to me was quite extraordinary, consid- 
ering the anxieties that we all had with respect to 
what might develop in that city. 

Insofar as reaching a solution of the problem is 
concerned, I don't think any progress has been 
made since the end of the Geneva talks. Perhaps 
I will know a little more if Mr. Khrushchev has 
something to say on the subject in the forthcoming 
talks with the President. But, as the President 
made very clear, this is a matter in which other 
nations are concerned besides ourselves, and cer- 
tainly those talks would not take the guise of ne- 
gotiations in any way whatsoever. 

V. Arnold Yas Dias, Nieuwe Rotterdamsche 
Courant: Must we understand from what you 
said about Mr. Khrushchev^s disarmament propos- 
als that you agree with Mr. Gaitskell, the leader 
of the Labor Party in England, that xce should 
take him up on it? 

Mr. Herter : Well, "take him up on this" can 
bo interpreted a good many different ways. Take 
liim up on it objectively, yes. Take him up on the 
details? From what I have seen of them to date, 



° Bulletin of Oct. 5, 1959, p. 467. 

"For text of Soviet note on Berlin and tl.S. reply, 
see ihiil.. Jan. 19, 1959, p. 79. 



504 



Deparfmenf of State Bulletin 



I would say no. But that obviously is a question 
of ascertaining a good deal more about the details. 
The objective is not alone Mr. Gaitskell's objec- 
tive, but Mr. Selwyn Lloyd on the afternoon be- 
fore Mr. Khrushchev's speech advanced a pro- 
gram just as far-reaching in successive stages, 
which differed rather considerably, certainly in- 
sofar as the element of control was concerned, 
from the proposals made by Mr. Khrushchev. 

David Florountz, World Union Press and Amer- 
ican Association of Engli.sh-J ewish Newspafers : 
Mr. Secretary^ a two-point question. One., the 
United States and the Soviet Union found a com- 
mon basis originally on the Palestine partition 
resolution of the U.N. I was wondering whether 
the United States loould welcom,e today a common 
basis, that is, an agreement on the general Middle 
East question. Two, do you have any knowledge 
as to the possibilify of Mr. Khmskchev^s meeting 
some of the Jewish leaders of the United States? 

Mr. Herter: "Well, may I say this: In the 
State Department we had requests from a number 
of different organizations to try to arrange ap- 
pointments for them with Mr. Khrushchev. The 
Jewish organizations did it individually — asked 
for an appointment with him — then joined to- 
gether and asked if they might send a representa- 
tive to represent all of them to see Mr. Khru- 
shchev. We endorsed strongly that request and 
sent it, as we had to, to Mr. Menshikov [Mikhail A. 
Menshikov, Soviet Ambassador to the United 
States], who was in official charge of Mr. Khra- 
shchev's engagements. I might add that our sug- 
gestions as to what Mr. Khrushchev's engagements 
might be during the course of his trip were not 
always viewed with great favor — in fact, with a 
feeling that his trip should be arranged entirely 
by himself and by the Russian Embassy and that 
our suggestions were rather extraneous. So that 
I cannot tell you of the success of our efforts in 
that respect. 

On your first question, sir, I missed the very first 
part- of it; I'm sorry. 

Mr. Horowitz: I mentioned the fact that the 
United States and the Soviet Union originally 
joined hands in the resolution on partition of Pal- 
estine. They agreed on the question of partition. 
I was wondering whether today the United States 
and the Soviet Union could find now, because of 
Mr. Khrushchev^s visit here, a common under- 



standing and an agreement on the general Middle 
East question. 

Mr. Hekter : I don't know. I don't know that 
it will even be discussed. There are matters of 
very considerable priority among the items to be 
discussed, particularly on a bilateral basis. On 
the questions of international interest which we 
may discuss, they are particularly to be quite lim- 
ited, and on an issue of this kind I have a feeling 
that, without consulting Israel and without con- 
sulting the neighbors of Israel, it would be a little 
presumptuous of the Russians and ourselves to de- 
cide what the policy in the Middle East should be. 

The Camp David Talks 

Joseph Lash, New York Post: Sir, could you 
tell us something about your plans, when you will 
be leaving for Washington in the next few days, 
and do you have an idea now, sir, as to what in 
the realm of specifics as contrasted with atmos- 
pherics is most likely to be productive at Camp 
David in the talks? 

Mr. Herter : So far as my own plans are con- 
cerned, I can tell you those very exactly. I am 
leaving this afternoon, flying back to Washington 
late this afternoon. I shall be at Camp David 
over the weekend. 

I am not going to, at this stage of the game, 
even begin to speculate on what the line of conver- 
sation will be. I think it is a known fact that 
Mr. Gromyko and I spent about an hour together 
drawing up an agenda outline of what might be 
discussed.' But in a very intimate discussion of 
the kind that is likely to take place, any agenda 
that we might draw up or any timetable we might 
draw up is likely to go by the board entirely. So 
that I would rather not discuss what even was 
considered for that agenda. 

The Situation in Laos 

A. G. Mezerik, International Review Service: 
You have mentioned only a few moments ago that 
the crisis in Berlin is not as active as it was in 
November. I would like to ask you how active 
is the crisis in Laos? We canH seem to get any 
neios of a crisis being — talcing place there. 



' For a Department statement on the meeting, see ibid., 
Oct. 5, 1959, p. 479. 



October 12, J 959 



505 



Mr. Hekter: Well, I am no greater authority 
on this than are some of the correspondents who 
have been there. And certainly we are hoping 
that the authority on the subject will be the U.X. 
committee that is there at the present time, the 
subcommittee of the Security Council.* They are 
apparently examining all the information being 
submitted to them by the Government of Laos. 
Whether they plan to travel to the borders or not, 
I don't yet know, but I assume that they will. 
The mere presence of that committee in Laos has, 
in my opinion, already done a great deal to sub- 
due what looked like it might be a vei-y ugly situa- 
tion. The degree to which that situation has been 
brought about entirely by the Pathet Lao, who 
were Communist sympathizers and who at the 
time of the independence of Laos went into north 
Viet-Nam and organized there and then came 
across the border, I don't Imow. I don't know 
that anybody knows at the present time the degi-ee 
of complicity of the Viet Minh; again this is a 
questionable thing. There is no doubt, I think, 
in anyone's mind that from the logistic point of 
view they have been very effective in supplying 
these individuals across the border. Once again 
the question of identification and so forth is a 
very difficult problem, because the peoples in that 
border area, both Viet Minh on one side and Laos 
on the other, are of various races. And so an 
infiltration from the point of view of being able 
to identify racial stock is almost impossible. It 
is, from that point of view, a very difficult and 
a very confused situation. I doubt whether we 
will get very much more of a clarification unless 
either active warfare breaJts out or this commis- 
sion can come in with very accurate findings. 

Miss Frederick: May I remind you that time 
is passing, and make your questions irief hecause 
there are a lot of questions remavrdng. 

Mary Frances Harvey, Quincy Patnot Ledger: 
Sir, Mr. Vasily V. Kuznetsov in his speech the 
other day in the General Assembly on Red China^s 
membership made the statement, if I interpret it 
correctly, that the Red Chinese regime could not 
accept obligations in disarmament to which it had 
not been a party. I wondered if there were a 
possibUity that at some stage Communist China 
could take part in the discussions of the present 



' For background, see ibid., Sept. 28, 1959, p. 450. 
506 



Disarmament Commission, which is outside the 
U.N. on the matter of controls? 

Mr. Herter : That is, of course, wholly possible. 
I don't see the necessity of bringing Red China in 
until the nations that are going to be sitting at 
that table come nearer to agreement than they 
seem to have been in discussing this matter in the 
past. Red China is obviously a very big factor in 
any very ambitious disarmament program such as 
Mr. Khrushchev has suggested and would obvi- 
ously have to be a party to a worldwide disarma- 
ment scheme if other nations were to consider it. 



Criteria for a Summit Conference 

Alexander Gahrielle, Transradio Nexos Agency: 
In light of the softer situation which you indi- 
cated now exists in regard to the Berlin issue, 
what now are the criteria for the holding of a full- 
fledged summit talk, and, given those criteria, 
what in your opinion now are the prospects of 
one's taking place shortly after the duet in 
Washington? 

Mr. Herter : Well, once again I can't look into 
the crystal ball. But from the point of view of 
the President's own feelings with respect to a 
summit conference, I think he has felt that, unless 
there is more give and the absence of threat in 
the negotiating position of the Russians with re- 
spect to Berlin and the German question, it is 
futile to submit tlie thing to a sunmiit conference. 
More work inevitably has to be done at a foreign- 
ministers level or through some general assurances 
which might make a simimit meeting profitable. 

The weakest issue of all is, as you know, still 
the question of a separate peace treaty with East 
Germany, which in the view of the Russians 
would automatically wipe out all of our rights 
with respect to Berlin and our obligations with 
respect to Berlin and would leave us inunodiately 
at the mercy of having to negotiate with the East 
German government. That is the threat that has 
been held over us for a long period of time, a 
threat which was made very specilically by Mr. 
Klu'ushchev in the fii"st instance when he said 
that, after having turned over the accesses of 
Berlin to the Ea.st Germans, if any nation — mean- 
ing ourselves or the Britisli or the French — tried 
to violate the sovereignty of East Germany with- 
out the East Germans' consent, the Russians would 

Department of Slate Bulletin 



go to their assistance militarily. That is still a 
major sticking point in these negotiations. And 
there is no sense in putting this whole matter up 
to a summit conference with that particular prob- 
lem still imresolved. I am hopeful that some of 
the discussions may help to resolve that which are 
going to take place during the week. 

Mr. Gabrlelle: Is the criterion then that they 
should disavow their intent or threat to make a 
separate treaty with East Germany? 

Mr. Herter : No, not necessarily. We have no 
objections to tlieir making a treaty with East 
Germany, but in the making of that treaty with 
East Germany they have got to reserve the rights 
which are ours which they have no right to give 
over to the East Germans. 

Problems of Hungary and Tibet 

Louis Halasz, Radio Free Europe: Sir^ in your 
speech to the General Assembly, you said that the 
U.N. ?nust speak out in clear terms on the events 
of Tibet. Toil also said that the continued de- 
liberate offense by Hungary of the U.N. augurs 
ill to secure international peace and security. 
Non^e of those two issues are on the agenda of the 
U.N. I loonder, »ir, hoio do you think the U.N. 
should deal with these two problems? 

Mr. Herter: Well, I tliink the two topics are 
very different from the point of view again of 
procedures in the U.N. The matter of Hungary 
must obviously await the report of Sir Leslie 
Munro, who has the responsibility of making a 
report on that subject. After he has made his 
report, to the U.N., then I think that the member- 
ship can determine what procedural steps it will 
take next. 

On the matter of Tibet, the matter has not yet 
been inscribed. That is a matter which is being 
discussed by various nations at the present time. 
As to whether it will be inscribed or not, I can- 
not tell you. I tliink the chances are fairly good 
that it will be inscribed, but until those matters 
are worked out I wouldn't want to venture a pre- 
diction nor mention any specific nations in con- 
nection with it. 

Irving deWitt Talm/idge, Scholastic Magazine: 
Mr. Secretary, if nothing fruitful comes out of the 
Presidenfs talks icith Khrushchev at Camp 



David, loill the President still go through with 
his plans to visit Moscow? 

Mr. Herter: That's a question that I cannot 
answer. Tliat only the President himself will 
decide. 

Miss Frederick: Thanh you, Mr. Secretary. 



The United Nations, a Cornerstone 
of U.S. Foreign Policy 

Statement by Secretary Herter ^ 

The United States was one of the principal 
architects of tlie United Nations. From the time 
it was established we have continuously given the 
Organization our wholehearted support as a posi- 
tive force for peace. It is a cornerstone of United 
States foreign policy. 

Peace with justice is the paramount goal of peo- 
ples everywhere. However, if nations are to 
achieve this goal they must work together to build 
its foimdations. Tlus effort, to succeetl, requires 
that nations live by a code of international law 
and order. They must be willing to resolve their 
differences through peaceful methods, not through 
force. Finally, they must assist all peoples to 
enjoy a decent standard of living. 

The United Nations, together with its various 
organs and councils, serves as the most effective 
mechanism for mobilizmg this cooperative effort. 
It is by no means perfect. However, during its 
14-year history it has built up a record of solid 
progress. Its very existence has encouraged its 
members to resolve their differences through 
peaceful negotiations. 

It is a prune support of peace because it fur- 
nishes processes to achieve needed and construc- 
tive change through peaceful means rather than 
aggi-essive force. Although the chasm of suspi- 
cion between the free world and the Communist 
world remains deep, the United Nations has 
served as a bridge to greater understanding. It 
has helped to harmonize relations between nations 
by providing means by which member states can 
talk out their problems rather than fight them out. 

The United Nations has fought hunger, pov- 



'Matle on the "College News Conference" television 
program carried by the American Broadcasting Company 
on Sept. 20 ( U.S. delegation press release 3226) . 



Ocfofaer ?2, 7959 



507 



erty, disease, and ignorance in order to promote 
better living standards and remove some of the 
basic causes of war. 

One of the principal weaknesses of the United 
Nations, of course, is that it does not have avail- 
able a permanent force to assist it in preserving 
the peace. Despite this limitation the United Na- 
tions has faced up to a series of crises. By swift 
and effective action it has prevented them from 
mushrooming into conflicts of untold conse- 
quences. It repelled Communist aggression in 
Korea and kept the fighting localized. In 1956 it 
halted military action in the Suez Canal area and 
channeled the conflict into peaceful negotiations. 
Out of this crisis developed the United Nations 
Emergency Force, a truly international peace 
force which has maintained peace along the Is- 
raeli-Egyptian border. The United States re- 
mains hopeful that the achievements of the U.N. 
Emergency Force will encourage the members 
of the United Nations to make permanent ar- 
rangements for a standby United Nations peace 
force. 

Kecently we have witnessed a vivid demonstra- 
tion of the United Nations' capacity to move 
swiftly in the face of a threat to the peace. I refer 
to the action of the Security Council in response 
to the appeal of one of the newer and smaller 
U.N. members, Laos.'' A subcommittee has al- 
ready arrived on the scene to inquire into the 
charges of outside aggression. It is our sincere 
hope that the work of this team will help restore 
tranquillity to the area. 

The United Nations has also moved forward in 
other areas of human endeavor in its endless quest 
for peace. The establishment of the International 
Atomic Energy Agency marks a new era in inter- 
national cooperation in the important field of 
peaceful uses of atomic energy. Similarly, it has 
begun to explore the opportunities for advancing 
internationally its knowledge which will accrue 
from the conquest of outer space. Indeed, the 
United Nations has demonstrated remarkable 
flexibility in the face of changing technology. We 
hope the U.S.S.R. will cast aside its political prej- 
udices and join in the good work already begun 
by the United Nations Outer Space Committee. 
Let me conclude by noting that, perhaps apart 
from the Declaration of Independence and the 
Constitution of the United States, no document 



strikes a more sympathetic chord in American 
hearts than the charter of the United Nations. 
The goals outlined in the charter are also the goals 
of the United States. Therefore the United States 
will continue to work with and through the United 
Nations for peace with justice and a better life 
for all mankind. It has become a truism that, if 
we would preserve our own freedom and well-be- 
ing, we must be alive to the preservation of free- 
dom and well-being everywhere. The United 
Nations is the best instrument yet devised to 
achieve this. It therefore deserves our unstinted 
support. We intend to give it j ust that. 

Secretary Herter Comments 

on Soviet Disarmament Proposal 

Statement hy Secretary Herter'^ 

Obviously the disarmament proposal made by 
Chairman Khrushchev - is one which will require 
very careful examination even though it seems to 
repeat proposals for total disarmament made by 
the Soviet Union in 1932 and more specific pro- 
posals made on May 10, 1955.=' Speaking in gen- 
eral terms, I think I can say that the United States 
will go as far on the path toward controlled dis- 
armament as any other country. 

I stress the word "controlled" because up to now 
the previous proposals have foundered on the 
Soviet Govermnent's refusal to agree to effective 
controls. 



Japanese Foreign Minister 
Meets Witli Secretary Herter 

Joint Statement 

Press release 671 dated September 24 

The Secretary of State and the Foreign Minis- 
ter of Japan [Aiichiro Fujiyama] met at the De- 



' Bui,LETiN of Sept. -'8, 1959, p. 456. 
508 



' Released to the press on Sept 18 (U.S. delegation press 
release 3224). 

= Nikita S. Khrushchev, Chairman of the Council of 
Ministers of the U.S.S.R., addrpssert the 14th session of 
the U.N. General Assembly on Sept. IS. For text of the 
"Declaration of the Soviet Government on general and 
complete disarmament" submitted for the consideration of 
the General Assembly by Mr. Khrushchev, see U.N. doc. 
A/4218. 

' For text, see Buixetin of May 30, 1955, p. 900. 

Department of State BuUetin 



partment of State this afternoon and liad a cor- 
dial discussion devoted principally to a review of 
the current international situation. Others pres- 
ent at the meeting were Ambassador Koicliiro 
Asakai, Under Secretary Douglas Dillon, Assist- 
ant Secretary J. Graham Parsons and Assistant 
Secretary (Defense) John Irwin. 

In the discussion of the international situation, 
Secretary Herter reviewed the recent trip Presi- 
dent Eisenhower took through Europe ^ and the 
visit of Chairman Khrushchev to the United 
States.- He pointed out that, while it is hoped 
that the exchange of visits between President 
Eisenhower and Chairman Klirushchev may re- 
veal opportunities for progress toward a reduction 
of world tensions, it is essential for the free na- 
tions of the world at this time to maintain their 
vigilance and unity. Foreign Minister Fujiyama 
agreed that it was premature to assume that an 
immediate solution of important international is- 
sues will result from these visits but said that the 
Japanese Government hopes they may create an 
international atmosphere favorable for negotia- 
tions. The two Ministers also discussed the situ- 
ation in the Far East today noting that Commu- 
nist efforts to undermine the free world nations in 
the area have not subsided. 

Relations between the United States and Japan 
were discussed and Foreign Minister Fujiyama 
and Secretary Herter agreed that over the past 
year they have continued to improve as the two 
countries work closely together in a spirit of 
equality and mutuality. Foreign Minister Fuji- 
yama expressed satisfaction with the considerable 
progress already made in the negotiations of new 
security arrangements between the two countries, 
initiated at the request of the Japanese Govern- 
ment. The two Ministers also discussed other 
problems in U.S.-Japanese relations. They noted 



'Bulletin of Sept. 14, 1959, p. 371, and Sept. 21, 1959, 
p. 403. 

' See p. 499. 



the steady expansion of trade between the two 
countries and expressed confidence that problems 
arising from this trade would be resolved to the 
mutual satisfaction of both countries. 

Secretary Herter in addition mentioned the 
United States interest in settling the United 
States claim regarding the GARIOA (Govern- 
ment and Relief in Occupied Areas) Account and 
the Foreign Minister stated that the Japanese 
Government would shortly be prepared to put for- 
ward a proposal for settlement. 



SEATO Council of Ministers 
To Hold Informal Meeting 

The Department of State announced on Septem- 
ber 24 (press release 670) that the Council of 
Ministers of the Southeast Asia Treaty Organiza- 
tion will hold an informal meeting at Washington 
September 28 for an exchange of views on matters 
of mutual interest to the member countries. 

The meeting will be attended by Richard G. 
Casey, Minister of External Affairs for Australia, 
Maurice Couve de Murville, Minister of External 
Affairs for France, Manzur Qadir, Minister of 
Foreign Affairs for Pakistan, Thanat Khoman, 
Minister of Foreign Affairs for Thailand, SEATO 
Secretary General Pote Sarasin, and Secretary of 
State Christian A. Herter. The Foreign Min- 
isters of New Zealand, the Philippines, and the 
United Kingdom will be unable to attend, and 
these countries will be represented by the heads of 
their diplomatic missions in the United States. 

The last regular annual meeting of the SEATO 
Council of Ministers was held at Wellington, New 
Zealand, in April 1959,^ and the next regular 
annual meeting is planned for May 1960 at 
Washington. 



' For background, see Bulletin of Apr. 27, 1959, p. 602. 



October 12, 1959 



509 



Role of the Humanities in International Relations 



hy Robert II. Thayer ^ 



I bring you the greetings of the Secretary of 
State and his best Avishes for a successful confer- 
ence. Secretary Herter has a very strong interest 
in the liumanities. He personally foimded what is 
now the Jolins Hopkins School of Advanced 
International Studies. I join with him in the 
hope that the discussions of this conference on the 
role of the humanities in an urbanized and t«clino- 
logical world will include the problem of the role 
of the humanities in international relations. This 
is a subject of increasing importance to those of 
us who are engaged in the implementation of our 
foreign policy, and, needless to say, it is of para- 
mount interest to me, smce my share of the imple- 
mentation of our foreign policy is in the field of 
international educational and cultural relations. 

I have been romidly criticized by some of my 
friends in the educational community for refer- 
ring to this work of mine in the Department of 
Stat« as cultural diplomacy. They are shocked, 
they say, at the implication that anything as 
purely intellectual as culture sliould be mentioned 
in the same breath with anything as mundane and 
allegedly wicked as diplomacy. They raise their 
hands in horror at the thought that the intellec- 
tual pursuits of mankind are to be dragged into 
the sordid international political arena. 

I am sorely tempted to challenge this point of 
view. It would be amusing to speculate on Maclii- 
avelli's knowledge and use of the humanities and 
to develop the question of how much diplomacy 
Frederick the Great learned from Voltaire. All 



' Adflresa made at the Fifth General Assembly of the 
International Council for Philosophy and Humanistic 
Studies at Ann Arbor, Mich., on Sept. 21 (press release 
COl). Mr. Thayer Is Special Assistant to tlic Secretary 
of State for the Coordination of International Educa- 
tional and Cultural Relations. 



of the most successful diplomats of history were 
well versed in the hmnaniti&s and used them witli 
consummate skill in their international negotia- 
tions. Among our earlier diplomats were Ben- 
jamin Franklin, Thomas Jefferson, Washington 
Irving, Nathaniel Hawthorne, and James Russell 
Lowell — all great American scholars. Further- 
more, I am not averse to shocking my friends in 
the educational community. I think that in this 
urbanized and technological world which is creat- 
ing new situations, new relationships, new nations, 
and new concepts there is need for every commu- 
nity to be shocked into a realization that a very 
thorough review should be made of every phase of 
our life, not with the idea of changing our basic 
philosophy, nor our standards, nor our social or 
political systems, but with the idea of making sure 
that we have not drifted into habits of thought 
and action M'hich have not only lost their validity 
today but, if persisted in, will indeed lead to pos- 
sible unfortunate changes in our standards and in 
our social and political systems. That is why I 
believe that the review which you are to make in 
this conference of the role of the humanities is 
indeed timely and of vital importance. 

Scope of Cultural Diplomacy 

However, I will not indulge myself in the intel- 
lectual exercise tonight of arguing about the term 
"cultural diplomacy," for let me hasten to explain 
that, when I refer to cultural diplomacy, I am 
lusing the word "culture" in a very broad and very 
simple sense. I am using it to mean every possible 
facet of the way people live their everyday lives: 
tlie things they do, the waj' they dress, what they 
produce, how they react, what they aspire to, as 
well as the way they think and express their 



510 



Department of State Bulletin 



thoug;hts by words or song or story. The culture 
of a i^eople in the sense I am using it is the life of 
a people, and cultural diplomacy is the act of suc- 
cessfully communicating to others a complete 
comprehension of the culture of a people. The 
objective of American cultural diplomacy is to 
create iimong the peoples of the world a perfect 
understanding of the life and culture of Ajnerica. 
It should be emphasized, however, that effective 
conmiunication of the culture of one people to an- 
other requires a thorough understanding of those 
to whom one is communicating. The require- 
ment of mutual understanding is the basis of suc- 
cessful cultural diplomacy, and it is this require- 
ment which makes cultural diplomacy so vitally 
important today. 

And so my job is to project the image of America 
abroad and to encourage the receipt in this country 
of the projection of the image of other countries. 
My job is not to project the image of what Amer- 
ica was, or what I wish it were, or what I hope it 
will he, but of what it is; and I wonder if one of 
our major problems in this country does not lie 
in grasping what America is today. Should we 
not perhaps consider developing a new image of 
ourselves at home — a new concept of what the 
United States actually is. I wonder if many of 
the difficulties which confront us in our relations 
with the rest of the world are not due to our 
failure to appreciate fully how far this country 
and its people have developed in the last 50 years. 
If we have failed to appreciate it h.ere, we certainly 
cannot project it abroad. 

I was talking the other day to a friend of mine 
who has been living in the heart of Europe for the 
hast few months. I asked him how he liked it, and 
he said, "Of course, I like it very much, but I am 
terribly struck with how materialistic everyone is 
becoming over there in Europe. We in Amei'ica 
have passed through the materialistic age ; we have 
become sophisticated in materialism; we are no 
longer preoccupied with bathrooms and mass pro- 
duction and gadgets, but in Europe they are just 
beginning to go through it. We in America have 
emerged from materialism, and through it the iron 
has entered into our soul and we are developing 
an American culture which is not confined to the 
narrow base of the cultures of Greece and Rome 
but is forging ahead on broad lines which include 
the offering of the hmnanities to, and their accept- 
ance by, the masses, not only the elite." I am sure 



that my friend is right, but how successful have 
we been in showing the peoples of foreign coun- 
tries the existence of this America ? 

Through our aid programs abroad we have in- 
evitably projected the materialistic image of our- 
selves. We have learned here in America that to 
increase production and to improve living stand- 
ards does not solve the social problems of how to 
bring up children or remove racial and religious 
prejudice. By the same token we know very well 
that merely increasing production and improving 
living standards in the rest of the world, including 
the less developed nations, will not insure condi- 
tions of peace and stability or win for us the cold 
war. That is why I for one am completely un- 
concerned with Mr. Ivlirushchev's threat that the 
Soviet Union will eventually pass us in produc- 
tion. Let him do it. That will not solve his 
difficult problem of what to do with the Paster- 
naks who, tlirough education, are growing daily 
not only in number but also in articulateness. 

Our foreign progi'ams liave been necessarily so 
predominantly economic in nature that the Amer- 
ican people themselves have lost sight of the fact 
that side by side with economic assistance have 
been operating in full blast the activities of our 
Govermnent in promoting international educa- 
tional development and cultural relationships. It 
is umiecessary for me to describe to this group 
hei'e tonight the work that our universities are 
doing to help us in this field by taking foreign 
students into their classes and seminare, by en- 
tering into contracts with universities abroad to 
develop their disciplines, releasing some of their 
best professoi-s to help build the educational sys- 
tems of less fortunate countries. But may I sug- 
gest that, just as there is a need for Americans 
to gain a new concept and imderetanding of their 
country, so is there a need for miiversities to look 
very closely at their role in the world of today and 
particularly their new role with respect to the 
relationship between the univereity and educa- 
tion abroad. 

Task of Promoting Mutual Understanding 

It was to be certain that there shall be concen- 
trated high-level direction of the international 
educational and cidtural activities of the Govern- 
ment that the position which I now hold in the 
Department of State was created. One of my firet 
objectives was to try and solve some of these broad 



Ocfober 72, 1959 



511 



problems of the relations between the intellectual 
community and foreign affairs. A beginning was 
made in a confei'ence held at Annapolis in April 
of this year at which representatives of univer- 
sities, Government, and private foundations dis- 
cussed the problems of our objectives in the field 
of international educational and cultural relations 
and the role of the universities in this field. From 
this conference have grown further studies on the 
role of the universities in world affairs. You will 
hear more of that very soon. In addition. Gov- 
ernment agencies are reviewing closely their own 
programs abroad in the educational and training 
and cultural relations field. We in Government 
are urging all our institutions to take a new look 
at the United States today, its philosophical and 
intellectual aspects as well as its material de- 
velopment and its relations with the rest of the 
world. Above all, we are asking these institu- 
tions to take a new look at the role which they 
themselves can and must play in a different mod- 
ern United States. We are urging it because we 
in Government are aware of the crying need for 
mutual understandings between the peoples of the 
world. The oldtime diplomacy of government to 
government has given way to the modern di- 
plomacy of people to people. The birth pangs 
of "one world" have started in earnest. 

As President Eisenhower said in a speech he 
gave to 400 teachers from 75 countries who came 
to the United States last week on a teacher ex- 
change program : ^ 

A little more than 30 years ago I made my first trans- 
atlantic crossing; it took 7 days. My latest crossing — 
early this month — took a little less than 7 hours. In the 
three decades between these trips the world has experi- 
enced awesome changes. One of these is that 25 nations, 
with a population of nearly 1 billion, have achieved po- 
litical independence. Each is struggling for stability, for 
a respected place in the family of nations, and for ad- 
vancement in the well-being of its people. But to me the 
greatest change of all is the development of an exacting 
interdependence between free nations — an interdepend- 
ence that involves the oldest and the youngest nations, 
the largest and the smallest, the most prosperous and the 
least developed of nations. 

This interdependence calls for new thinking, new in- 
stitutions, new vision. Above all, it calls for greater 
understanding among peoples — the genuine understanding 
of truth, which can dispel unfounded fears and suspicions, 
bars to true and lasting peace. People of good will every- 
where have a tremendous job of communicating such un- 



derstanding — and little enough time to do It. We need 
to pursue every possible avenue that can bring people 
together as friends and coworkers seeking solutions to 
their common problems. 

And so, ladies and gentlemen, that is why I 
urge you in your discussions to examine closely 
the role of the humanities in contributing to the 
mutual understanding between peoples, the role 
of the humanities in international cultural rela- 
tions, the role of the humanities in cultural 
diplomacy. 

The Department of State has, in the creation of 
the position which I hold as head of a Bureau of 
International Cultural Relations, emphasized the 
important position which it gives to international 
educational and cultural relations in the imple- 
mentation of its foreign policy. In carrying out 
my duties I need the help not only of the scholars 
of my own country but of every country in the 
world. We have, all of us in the free world, a 
common objective and a common duty^ As the 
President said last week : ^ 

We shall not be serving mankind well if we become ob- 
sessed with just the business of putting new satellites into 
orbit — so obsessed that we overlook the fact that we have 
some real problems left right here on earth. We need to 
put new ideas — and more of them — into orbit. And we 
must use every resource at our command to see that people 
everywhere achieve greater understanding of each other 
before it is too late. 

To my own countrymen here tonight I say, look 
carefully at this country of oure and see if you have 
fully grasped the meaning of what America is to- 
day and help us in our attempt to project the true 
image of America abroad. To our visitors from 
other lands I say, we rejoice in your coming, for 
to see and hear with your own eyes and ears is the 
truest source of all understanding, and don't for- 
get to give us freely of yourselves, for our need of 
what you can give us is very great. 

To all of you here tonight, both Americans and 
our friends from abroad, I say, the United States 
Government is dedicated to a vigorous campaign 
to bring about mutual understanding between the 
peoples of the world. The role of the humanities 
in this effort is a vital one. The results of your 
conference are therefore awaited by us with eager 
anticipation and with confidence that your con- 
tribution to our common effort will be of the great- 
est value. 



•Bulletin of Oct. 5, 1959, p. 479. 
512 



'Il>id. 



Department of Stale Bulletin 



Expanding World Trade 
for the Benefit of All 

Remarks by Karl L. Rankin 
Ambassador to Yugoslavia * 

It is a particular pleasure to take part in these 
America Day ceremonies during the 50th anniver- 
sary celebration of the Zagreb International Fair. 
Americans welcome such an opportunity to meet 
and sliare experiences witli others. I am sure you 
will all agree that trade fairs are increasingly sig- 
nificant in improving world prosperity through 
expanded world trade. Zagreb has understood 
this significance for half a century. 

Most notably since the inauguration in 1954 of 
the United States international trade fair pro- 
gram, the foreign trade policy of the United States 
has emphasized the expansion of multilateral trade 
among all friendly nations. It is a policy built 
upon the firm base of our desire to see other na- 
tions of the world strong and independent, with 
rising living standards made possible by trade on 
a mutually advantageous basis. 

By a more active role in international trade fairs 
the United States has become better acquainted 
with the problems and achievements of other peo- 
ples. By the same token we hope that, through 
our displaj'S of products and production tech- 
niques, peoples in other lands can come to know us 
better and see what our economy has to offer. 

Approximately 3,000 individual American firms 
have loaned or contributed millions of dollars 
worth of materials for exliibits at the 28 interna- 
tional trade fairs in which the United States has 
participated on a total of 75 occasions since 1954. 
Leaders of American trade unions and industrial 
management also have contributed their services. 
They are represented here today by the five busi- 
ness and Government members of the 1959 United 
States trade mission to Yugoslavia, the fourth 
group of this nature to visit this country. Since 
1954, similar missions have come into contact with 
tens of thousands of foreign businessmen. 

As a result of our trade fair program many in- 
vestment and trade opportunities have been devel- 
oped and reported to the American business com- 
munity, thereby contributing to a rise in total 



^ Made in the U.S. pavilion during America Day cere- 
monies at the Zagreb International Fair, Zagreb, Yugo- 
slavia, on Sept 7. 



value of U.S. commodity imports from $11 billion 
in 1954 to $14 billion in 1958. During the same 
period, annual exports from Yugoslavia to the 
United Stales increased by 18.5 percent in value. 
Permit me to note that while the United States 
sometimes is criticized for its supposedly high 
tariffs and low immigration quotas, the fact re- 
mains that every year we import more goods from 
abroad and welcome more foreign immigrants tlian 
any other country in the world. 

I am especially interested in the separate exhibi- 
tion on tourism at this year's fair. We share the 
hope that it will help to stimulate the flow of visi- 
tors to this scenic and historic country. As you 
may know, the Yugoslav and U.S. Governments 
are working jointly on a survey of Yugoslavia's 
tourist possibilities. Conducted by two experts 
within the framework of our economic cooperation 
agreement, we expect steps to be recommended by 
which Yugoslavia can improve still further its 
tourist facilities and income. 

Depicting as it does the dynamic development 
of the Yugoslav economy in recent years, tlie 
Zagreb fair is evidence of this country's capabili- 
ties for expanding participation in world trade. 
The people of Zagreb can be proud of their role 
in maintaining this long-established marketplace 
for the interchange of goods, ideas, and hospital- 
ity. We are glad to share in these evidences of 
progress and to welcome you to the United States 
pavilion on America Day. 

This is not only America Day at the Zagreb 
fair; this year, September 7 is Labor Day in the 
United States. A traditional holiday dedicated 
to our Nation's working men and women, it is a 
time for appraising their economic and social 
progress and setting new goals for the future. It 
seems particularly fitting for us to celebrate our 
Labor Day here as well, amid evidences of what 
the labors of the American worker have meant to 
him and his family. 

Trade union membership in the United States 
has passed 17 million, and trade union activities 
reach into every sector of American life. Today 
labor celebrates its status as an integral and vital 
part of the American community. It speaks of 
achievements as well as aspirations, of its contri- 
butions to the Nation's prosperity and the vast so- 
cial and economic gains it has helped to win for 
the American worker. Labor joins with man- 
agement and Government in recognizing our 



Ocfober J 2, 7959 



513 



interdependence with the rest of the world, in ex- 
panding world trade for the benefit of all. 

This fair, dedicated to the stimulation of mu- 
tual trade, contributes to the same goal. We join 
with you in wishing it continued success as the 
Zagreb International Fair enters the second half- 
century of its existence. 



Secretary Herter Praises 
American Exiiibition at Moscow 

Press release 665 dated September 22 

Folloioing is the text of a letter from Secretary 
Herter to George V. Allen, Director, U.S. Infor- 
mation Agency, congratulating him on the suc- 
cess of the American National Exhibition at 
Moscow.'^ 

September 16, 1959 

Dear George: The American National Exhi- 
bition in Moscow produced a wide and generally 
favorable impression. The attention it received is 
fully justified by its importance in making a sin- 
gular contribution to a clearer understanding by 
the people of the So\iet Union of our life and 
character. 

I would appreciate your conveying my personal 
commendation on this splendid achievement to 
those whom you brought together to develop this 
impressive display: Mr. [Harold C] McClellan, 
the energetic General Manager; Geoi-ge Nelson, 
the designer; the building engineers; the partici- 
pating American industries; the capable and 
hardworking American guides and demonstra- 
tors; the staff in Washington under Mr. Eugene 
S. Staples, and that in Moscow under Mr. Howard 
Messmore; and those Soviet workmen, engineers, 
and officials of the All-Union Chamber of Com- 
merce who helped to clear the way for the Exhi- 
bition. The Exhibition could not have been 
mounted and effectively displayed without the un- 
tiring efforts of these persons, nor could these ef- 
forts have produced a complete and operating ex- 
hibition without the kind of dedicated leadership 
which you, Mr. Washburn, Deputy Director of 
USIA, and Mr. McClellan supplied. 



' For a statement and addresses made by Vice President 
Nixon (lurinK liis visit to the Soviot Union to open the 
exhibition, together with a message from President 
Eisenhower, see Bulletin of Aug. 17, 1959, p. 227. 



I am pleased, therefore, to e.xtend to you, and 
to those who worked with you to make the Exiii- 
bition a success, my heartiest congratulations for 
an outstanding contribution toward better under- 
standing between the ^Vmerican people and the 
people of the Soviet Union. 

With warmest personal regards. 
Most sincerely. 

Christian A. Herter 
The Honorable 
George V. Allen, 
Director, 
United States Information Agency 



Private Investment Team 
To Assist Tliai Government 

Press release 673 dated September 25 

At the request of the Royal Thai Government, a 
six-man team, made up of U.S. businessmen and 
U.S. Government officials, will arrive in Thailand 
early in October, imder the sponsorship of the In- 
ternational Cooperation Administration, to assist 
the Royal Thai Government in developing meas- 
ures to stimulate local private enterprise and to 
increase the flow of foreign investment capital to 
the country. 

Heading the team is George B. Beitzel, former 
president and currently a director of Pennsalt 
Chemicals, Inc., of Philadelphia, and a director of 
the Fidelity Philadelphia Trust Co. Mr. Beitzel 
was largelj^ responsible for establishing Pennsalt's 
foreign operations. He also has served as assist- 
ant director for production of the Office of Defense 
]Mobilization. 

Other team members are Oliver P. "\Anieeler, vice 
president. Federal Reserve Bank of San Fran- 
cisco; Cornelius C. Bond, former president of 
Knox Metals Products Co., of Knoxville, Tenn. ; 
S. H. Chafkin of the International Cooperation 
Administration; Robert M. Klein of the Depart- 
ment of Commerce; and Frank S. Wile of the 
Department of State. 

Tlie grou]) will concentrate on three major tasks : 
(1) to analyze the current investment climate in 
Thailand and make recoiiiinendations on stimulat- 
ing an increased rate of domestic and foreign in- 
vestment which would contribute to the country's 
economic development; (2) to assist the Thai 



514 



Department of State Bulletin 



Government, utilizing resources already available, 
in developing programs to encourage local Thai 
investment, attract foreign investment, and foster 
increased association between Thai and foreign 
investors; (3) as opportunities arise during dis- 
cussions, to identify areas of investment possibil- 
ities for followup measures, including detailed ex- 
ploration. 

Assignment of the team is a specific outgi-owth 
of tlie announced policy of the Government of 
Thailand to take measures to accelerate economic 
development by encouraging private enterprise. 
The assignment is also in line with the importance 
attached to private investment for economic 
growth by the U.S. Government, as set forth in 
President Eisenhower's statement at the 1958 
Colombo Plan meeting at Seattle.^ 



National Olympic Week, 1959 

A PROCLAMATION^ 

Whereas the XVIIth Ol.vmpic Gaines of the modern 
era will be held in liome, Italy, from August 25 to Sep- 
tember 11, liXiO, and the Winter Games will be held at 
Squaw Valley, California, from February 18 to February 
28, 1960; and 

Whereas these games unite in friendly competition 
athletes from aroimd the world, each governed by the 
traditional rules of sportsmanship and eager to gain 
honor for the country he represents ; and 

Whereas in these challenging times mankind stands 
in need of occasions which bring out the finest efforts of 
the human spirit, of physical skill and endurance, and 
of achievements of individuals rather than of govern- 
ments ; and 

Whereas the Olympic Games uniquely provide such 
occasions and contribute much to the areas of common 
understanding and mutual respect among all peoples ; 
and 

Whereas the United States Olympic Association is now 
engaged in seeking broad popular support for the young 
men and women representing the United States at these 
athletic events; and 

Whereas the Congress, by a joint resolution approved 
September 22, 1959, has authorized and requested the 
President to Issue a proclamation designating the period 
of October 17 to October 24, 1959, as National Olympic 
Week: 

Now, therefore, I, DwioHT D. Eisenhower, President 
of the United States of America, do hereby designate the 
period of October 17 to October 24, 1959, as National 
Olympic Week ; and I ask and urge all our citizens to give 
fuU support to the planning for the XVIIth Olympic 



Games and the Olympic Winter Games of 1960 so that the 
United States will be able to send to these games a truly 
representative team. 

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

Done at the City of Washington this twenty-second day 

of September in the year of our Ix)rd nineteen 

[seal] hundretl and flfty-nine and of the Independence 

of the United States of America the one hundred 

and eighty-fourth. 

By the President: 
Douoi^as Dillon, 

Acting Secretary of State. 



President Approves Legislation 
Extending P.L. 480 Program 

Statement hy President Eisenhower 

While House press release dated September 21 

I have today [September 21] approved H.R. 
8609, a bill "To extend the xigricultural Trade 
Development and Assistance Act of 1954, and for 
other pui-poses." 

Since 1954 this P.L. 480 program has assisted 
in expanding our exports to higher levels and has 
helped to develop the economies of recipient coun- 
tries. Its extension is desirable, and I am grati- 
fied that this was accomplislied without crippling 
barter amendments and other changes which 
would seriously have hampered its continued ad- 
ministration in the best interest of the United 
States and our friends abroad. 

The omission from the bill of the administra- 
tion's i^roposals for further strengtliening this 
food-for-i)eace progi-am pi-events the broader use 
of surplus commodities for food reserves and eco- 
nomic development which woidd have been de- 
sirable.^ Of more fundamental concern, however, 
are two new pi-ogram authorizations in the en- 
acted bill. 

The food-stamp plan it authorizes carries the 



' Bulletin of Dec. 1, 1958, p. 853. 
' No. 3316 ; 24 Fed.. Reg. 7891. 



' For text of a joint communique released on May 6 
following a food-for-peace conference of the major wheat 
exporting nations, see BuLurriN of .lune 1, 1959, p. 793 ; 
for a statement by Assistant Secretary Thomas C. Mann 
on the Department's views on administration of P.L. 480, 
see ihid., Aug. 10, 1959, p. 212. 



Ocfofaer 12, 1959 



515 



implication that more surplus foods would be 
made available to the needy people of the United 
States. Actually the bill would not do this. 
Needy people received Federal surplus foods last 
year by direct distribution through State and 
local facilities. If implemented, this authority 
would simply replace the existing distribution 
system with a Federally financed system, further 
increasing the already disproportionate Federal 
share of welfare expenses. The food-stamp ad- 
ministrative mechanism would be much moi'e com- 
plex, and it is extremely doubtful that it would 
provide any greater benefit to needy people than 
the present direct method. 

The new authorization for 10-year supply con- 
tracts with foreign governments implies that our 
agricultural surpluses will be with us for many 
yeai-s to come. This implication is unfortunate, 
and I can only urge again that the Congress act on 
administration proposals to deal with the surplus 
problem. Any contracts developed pursuant to 
this authorization will need to be carefully ad- 
ministered t£> assure their conformity with efforts 
to solve this problem as well as with our inter- 
national agreements. 



President To IVlaintam Existing 
Long-Staple Cotton Import Quotas 

White House press release dated September 22 

The President on September 22 accepted the 
U.S. Tariff Commission's report on long-staple 
cotton.^ The President's action is based upon the 
Commission's investigation and determinations of 
fact reported on July 10, 1959. The Tariff Com- 
mission found, with two members dissenting, that 
no changed circumstances exist requiring the mod- 
ification of existing import quotas on long-staple 
cotton. 

Under section 22(d) of the Agricultural Ad- 
justment Act, as amended, the Tariff" Commission 
undertook on March 25, 1959, a supplemental in- 
vestigation concerning the long-staple cotton im- 
port quota which was first established in Septem- 
ber 1939. The Commission examined current 
circumstances to det-ermine the need for any 



change in that quota to carry out the purposes of 
section 22 relating to the limitation of imports 
in order to prevent material interference with the 
Department of Agriculture's price-support pro- 



^ Copies of the Commission's report may be obtained 
from the U.S. Tariff Commission, Washington 25, D.C. 



grams. 



Development Loans 

Haiti 

The U.S. Development Loan Fund announced 
on September 23 basic approval and commitment 
of funds for a $3 million loan to the Centrale 
Sucriere Nord-Haiti, S.A., of Cap Haitien, Haiti, 
a private corporation, to help finance the comple- 
tion of a sugar mill project in Haiti. For details, 
see Department of State press release 666 dated 
September 23. 



Congressional Documents 
Relating to Foreign Policy 

86th Congress, 1st Session 

Testimony of John A. McCone on Geneva Test Ban Ne- 
gotiations. Hearing before a subcommittee of the Sen- 
ate Foreign Relations Committee. June 24, 1959. 32 pp. 

Foreign-Flag Affiliations of Subsidized Operators. Hear- 
ings before the Merchant Marine Subcommittee of the 
House Committee on Merchant Marine and Fisheries. 
June 10-July 17, 1959. 216 pp. 

Report on Russia by Vice Admiral Hyman G. Rickover, 
USX. Hearings before House Committee on Appro- 
priations. August 18, 1959. 82 pp. 

United States Foreign Policy : Possible Nonmilitary 
Scientific Developments and Their Potential Impact on 
Foreign Policy Problems of the United States. A 
study prepared at the request of the Senate Foreign 
Relations Committee by Stanford Research Institute. 
September 1959. 100 pp. 

International Bridges. Hearings before the Senate 
Foreign Relations Committee on S. 2.531, S. 2590, and 
H.R. 3180. September 1-4, 1959. 65 pp. 

Four Conventions and an Optional Protocol Formulated 
at the United Nations Conference on the Law of the 
Sea. Message from the President transmitting the 
conventions and protocol. S. Ex. J to N, inclusive. 
September 9, 1959. SO pp. 

Operation of Article VII, NATO Status of Forces Treaty. 
Report of the Senate Armed Services Committee review- 
ing for the period December 1, 195", through November 
30, 1958, the operation of article VII. S. Rept. 1010. 
September 11, 1959. 15 pp. 

.\dvisory Commission Intergovernmental Relations. 
Conference report to accompany II. R. 6904. H. Rept. 
11K4. 5 p]). 

Mutual Security and Related Agencies Appropriation Act, 
19G0. Conference report to accompany H.R. 8385. H. 
Rept. 1190. September 15, 1959. 9 pp. 



516 



Department of State Bulletin 



INTERNATIONAL ORGANIZATIONS AND CONFERENCES 



General Assembly Again Decides Not To Consider 
Question of Chinese Representation 



Statement hy 'Walter S. Rohertson 

U.S. Representative to the General Assembly ' 



The General Committee has recommended to the 
Assembly the following resolution : 

The General Assembly, 

1. Decides to reject the request of India for the inclu- 
Blon in the agenda of its fourteenth regular session of the 
item entitled "Question of the representation of China in 
the United Nations" ; 

2. Decides not to consider, at its fourteenth regular ses- 
sion, any proposals to exclude the representatives of the 
Government of the Republic of China or to seat represent- 
atives of the Central People's Government of the People's 
Republic of China. 

The United States welcomes this recommenda- 
tion. Wo are confident that the Assembly will 
uphold it, as it has done in the past. 

We have before us also a proposed amendment 
to the draft resolution,^ submitted by the distin- 
guished representative of Nepal, which would have 
the effect of completely reversing the recommenda- 
tion made by the General Committee. It also is 
similar to amendments which have been put for- 
ward in years past, and the United States will op- 
pose it. 

A number of delegations have made it clear to 
us that they would appreciate a frank restatement 
by the United States of the basic reasons for our 
position. We are glad to make such a statement. 

"Wliile the item proposed by India is phrased in 
terms of the "representation of China," the basic 
purpose is to seat Communist China in China's seat 
in the United Nations and to expel the representa- 
tives of the Republic of China. The many shock- 
ing events in which Peiping has been the principal 



'Made in plenary session on Sept. 21 (U.S. delegation 
press release 3225). 
' U.N. doc. A/L. 261. 



actor in the past year have caused many people to 
hope that this question would not be pressed at all 
at this session of the General Assembly. How- 
ever, since it is being pressed, the United States 
intends to proceed with complete candor. 

Pertinent Charter Provisions 

The United States is opposed to the seating of 
tlie Chinese Commimists in the United Nations. 
We would be opposed even if we did not recog- 
nize the Republic of China as the legitimate gov- 
ernment of the Chinese people. We base our 
objection upon the United Nations Charter, which 
must be our guide in all basic questions affecting 
the United Nations. There are certain charter 
provisions which so clearly apply to the present 
case that I quote them as a universally accepted 
standard by whicli to judge this question. 

Article 1 of the charter sets forth the purposes 
of the United Nations. I quote section 1 of that 
article, which is of particular pertinence to the 
subject under discussion: 

The Purposes of the United Nations are : 
1. To maintain international peace and security, and 
to that end : to take effective collective measures for 
the prevention and removal of threats to the peace, and 
for the suppression of acts of aggression or other breaches 
of the peace, and to bring about by peaceful means, and 
in conformity with the principles of justice and interna- 
tional law, adjustment or settlement of international dis- 
putes or situations which might lead to a breach of the 
peace ; . . . 

Next I quote article 4 : 

Membership in the United Nations is open to all other 
peace-loving states which accept the obligations contained 
in the present Charter and, in the judgment of the Organi- 
zation, are able and willing to carry out these obligations. 



October 12, 1959 



517 



Many of you here today were in San Francisco 
in 1945 when the United Nations was founded. 
You will remember that in the organizational 
meetings it was exhaustively debated whether 
membei'ship should be based upon imiversality 
or whether there should be qualifications for mem- 
bei-sliip. It was decided that, as a primaiy pur- 
pose of tlie United Nations was "to save succeed- 
ing generations from the scourge of war," imi- 
versality was not to be the test of membership. 
There must be qualifications for membership. A 
member must be peace-loving and willing to take 
collective action to maintain international peace 
and security. The Soviet Union at that time 
strongly supported this view. Aiid so article 4 
was adopted. 

Record of Red China 

Now, is Red China a peace-loving state? Let 
us examine the record. 

In Febiiiai-y 1950, approximately 2 months 
after establishing its regime on the mamland, Pei- 
ping issued a call to the peoples of southeast Asia 
to overthrow their governments, denouncing their 
leaders as puppets of the imperialists. Before the 
year was out it invaded Tibet. 

Also, before the year was out, it invaded Korea. 
Commiuiist, China sent a million soldiers to rein- 
force and prolong that aggression against the Re- 
public of Koi'ea and against the United Nations. 
Because of that act the General Assembly, in Feb- 
ruai-y 1951, voted overwhelmingly to find Peiping 
guilty of aggression. 

That United Nations resolution is still out- 
standing. Red China is still defying it. The re- 
sult is that the Korean war has given way only 
to an uneasy cease-fire in which the United Na- 
tions forces must daily patrol an armistice line 
150 miles long, a line constantly threatened by 
half a million battle- ready Conmiunist troops. 
Final settlement has been blocked by the Chinese 
Commimist insistence at the Geneva conference of 
1954, and its continuing insistence, that the United 
Nations committed the aggression in Korea and 
therefore are without moral authority or compe- 
tence to supervise elections for the unification of 
the countiy. 

Nor can we forget other Chinese Communist 
actions in Korea. Tliey conunitted many atrocious 
acts against thousands of prisonere of war of the 



United Nations Command. They visited inde- 
scribable destruction, suffering, and death on the 
Korean people. Through months of cruel and 
degrading treatment they forced dozens of our 
men to sign outrageous, fabricated confessions 
about imaginary acts of germ warfare— all in 
order to feed their insatiable machine of hate 
propaganda. 

Once the armistice was signed, they immedi- 
ately and continuously violated it by bringing jet 
aircraft and large quantities of other weapons 
into Korea. Moreover, for 6 years the Chin&se 
Communists have obstinately refused to honor 
their obligation under the armistice agi-eement to 
provide a satisfactory accounting for those mili- 
tai-y persomiel of the United Nations Command 
still missing and unaccounted for at the end of 
the hostilities. They include 2,147 men of several 
nations, of whom 452 are Americans. In their 
own press and radio the Conunimists once acknowl- 
edged holding many of these men. By refusing 
to account for them, they defy both their armi- 
stice pledge and the accepted practice of civilized 
nations, causing needless bitter anguish to the 
families concerned. 

Use of Force in Taiwan Strait 

In the Taiwan Strait, Communist China has 
been using armed force intennittently since 1950 
in order to seize Taiwan and the Pescadores and 
the olTshore islands and to destroy the Republic 
of China. Twice, in 1954-55 and again in 1958, 
it raised its acts of violence to sxich a pit/ch as to 
bring the specter of general war to the Far East. 

Continuously since 1955 the United States, in 
90 ambassadorial talks with Chinese Commimist 
representatives, has sought to have them sign a 
reciprocal agreement to renounce the use of force 
in the Taiwan Strait. This principle is funda- 
mental to the charter of the United Nations. The 
Red Chinese stubbornly refuse to make any such 
agreement. 

In 1955 the Chinese Communist regime rejected 
with contempt an invitation from the United Na- 
tions Security Council to discuss the crisis it had 
caused in the Taiwan Strait. Last year it again 
asserted that it would not countenance reference 
of the matter to the United Nations. To this day 
it is continuing, on an alternate-day basis, its 
bombardment of the oH'shore islands. Its De- 



518 



Department of State Bulletin 



fense Minister has described the philosophy of this 
policy in these words : 

Ours is a policy of fifiht-fiKht, stop-stoii — half-fight, half- 
stop. This is no triflv but a normal thiuR. 

In southeast Asia tlie record is also one of ag- 
gressive pressure. For many years the Chinese 
Communists have given material support and 
propaganda encouragement to rebellions seeking 
to overthrow the Governments of the Philippines 
and Malaya. 

In north Viet-Nam, the Chinese Communists 
have been actively assisting the regime in reorgan- 
izing and training Viet Minh troops, greatly in- 
creasing the strength of their divisions and sup- 
plying them with arms and equipment prohibited 
by the armistice agreement. 

In Laos, a troubled area with which the Security 
Council is now concerned, ^ the hand of Peiping is 
again visible. The Communist rebellion against 
the Royal Lao Government is supported chieflj' 
through Communist north Viet-Nam, a regime 
which owes its existence in large measure to Com- 
munist Chinese efforts. The Geneva accords of 
1954 acknowledged the sovereignty of the Royal 
Laotian Government over all Laotian territory, 
including the provinces of Sam Neua and Phong 
Saly, then under the military control of the Com- 
munist-dominated Pathet Lao. However, the 
Connnmiist puppet troops refused to turn over 
administration to the Royal Government and 
forcibly held these positions, seeking additional 
political concessions which they finally obtained 
in 1956. 

The sudden attacks in Laos last month came on 
the heels of a lengthy visit to Communist China 
by Ho Chi Minh, chief of the north Vietnamese 
regime. All along Peiping has kept its radio 
propaganda machine in high gear to support the 
Comsiunist rebels, issuing dire warnings against 
those who dare to help the Government of Laos in 
its time of need. 

Tragic Case of Tibet 

I turn now to the tragic case of Tibet. In 9 
years, beginning in 1950, the Chinese Communists 
have destroyed Tibet's historic autonomy, enjoyed 
since the fall of the Manchus in 1911. It has mas- 
sacred thousands of the Tibetan people and at- 



' For background, see Bulletin of Sept. 28, 1959, p. 456. 
Ocfober 72, J 959 



tempted to stamp out their ancient Buddhist faith. 

As all delegates know, the most recent act in 
this tragedy began last March, when the Chinese 
Communists summarily dissolved the Tibetan 
Government and established a so-called "Tibet 
autonomous region" in which the word "auton- 
omous"' is mere camouflage for a colonial despot- 
ism. The Dalai Lama, the spiritual and temporal 
leader of his people, in danger of his life, suc- 
ceeded in escaping with his followers despite Com- 
munist attempts to hunt him down. Ever since 
that date the Chinese Communists have been car- 
rying on ruthless war against the Tibetans, have 
done their best to seal off all escape by those seek- 
ing refuge abroad, and have even pursued refugees 
across international frontiers. 

As a sequel to this Tibetan outrage, we learn 
that Chinese Communist troops are making terri- 
torial encroachments across frontiers of other 
states and principalities in the Himalayan region. 
We leant that their official maps show as Chinese 
large areas long regarded by other states as their 
territory. And, characteristicallj', in the midst of 
these encroacltments the Chinese Communists 
make charges of aggression against the very coun- 
tries whom they offend. 

All along the borders between Commtmist 
China and non-Communist Asia there is trouble 
and discord. From Korea south and west along 
the 6,000-mile arc that ends in the Himalayas, 
we find a history of Chinese Communist com- 
plicity in military aggression, subversion, and 
outright seizure of territory. That history, as 
just noted, has been tragically extended during 
the past year and, indeed, the past few weeks. 

Remolding the World With the Gun 

By these many acts against neighboring na- 
tions the world has begun to find out what the 
ruler of Communist China, Mao Tse-tung, meant 
when he wrote in 1938 : 

Every Communist must grasp the truth that political 
power grows out of the barrel of a gun. ... In this sen.se 
we can even say that the whole world can be remolded 
with the gun. 

And likewise we grasp the meaning of Liu Shao- 
clii, now the titular head of Communist China, 
who once wrote: 

The most fundamental and common duty of Communist 
Party members Is to establish communism and transform 
the present world into a Communist world. 

519 



Within mainland China itself, the Communist 
authorities have committed many uncivilized acts 
against foreign nationals and their citizens. They 
have arrested hundreds of foreign Christian mis- 
sionaries and killed many religious leadei'S. They 
have imprisoned hundreds of foreign civilians, in- 
cluding 158 Americans, of whom 5 died as a result 
of maltreatment in prison. They today hold 5 
of my fellow citizens in jail as political hostages — 
despite a public pledge, now 4 years old, to permit 
all Americans to return home expeditiously. 
Chinese Muslim minorities have suffered similarly, 
with countless numbers imprisoned for "carrying 
on counterrevolutionary activity under the cloak 
of religion." 

Hand in hand with these policies has gone a 
continuing and systematic hate campaign against 
so-called "imperialist enemies." By massive poi- 
sonous propaganda against foreign countries, the 
Chinese Communists have sought to instill warlike 
and hostile feelings against them in the hearts of 
the Chinese people. My own country has been 
the most prominent target of this organized 
hatred, but many other countries represented in 
this body have been subjected to it as well. Thus, 
like many another tyranny before it, Communist 
China has found foi"eign devils to blame for the 
sufferings which it inflicts on its own people. 

Mr. President, such are the facts of Communist 
China's conduct. Some of these events have oc- 
curred in the past year and have never before been 
faced by the General Assembly. But these new 
facts simply corroborate a conclusion which my 
country's late Secretary of State, John Foster 
Dulles, once stated in these words : * 

. . . the United Nations has a clioice of whether or not 
to bring into its midst and to give veto power on the 
Security Council to a regime which has flagrantly defied 
the United Nations ; which has fought it ; which has 
been found to be an aggressor ; and vphich far from 
being "peace-loving" — the test for membership — has per- 
sistently violated the principles contained in the char- 
ter — which is the test for expulsion. 

U.S. Refutes Arguments of Red China's Supporters 

And now, Mr. President, I should like to deal 
with certain arguments of a different kind which 
from time to time are made liere. 

We sometimes hear it said that Communist 
China is indeed guilty of gross violations of the 



' ihid.. Oct. i.*?, inr.8, p. 501. 



charter, but that admitting its representatives to 
the United Nations would tend to remedy its be- 
havior by exposing the regime to new ideas and 
influences. Further, it is even urged that unless td 
the Chinese Communists are admitted here there 
is a greater danger of war because- — so we are 
told — no other place exists in which to negotiate 
with them. 

The United States cannot accept these argu- 
ments. As to the influence of new ideas which 
the Chinese Communists might encounter here, I 
leave it to those with diplomatic missions in 
Peiping to judge for themselves what effect they 
are able to exert today on the international con- 
duct of Communist China. I would only point 
out that the Chinese Communists came here to the ** 
United Nations once, in the winter of 1950-51, and 
displayed an attitude of arrogance and bitter 
hatred and that they have since been invited to 
take part in particular deliberations here and have 
declined to do so. Their vicious attacks on the 
United Nations in their propaganda demonstrates 
how they would interpret the principles of the 
United Nations were they seated in its covmcils. 
There is not the slightest evidence that they would 
abate their aggressive policies. All the evidence 
suggests, rather, that they would gain new influ- 
ence and new opportunities to subvert the purposes 
of the charter and to pervert this great Organ- 
ization to their lawless ends. 

Now let us consider the argument that there 
is no place except the United Nations in which to 
negotiate with the Chinese Communists. My own 
country has negotiated with them over the ])ast 
8 years — at Panmunjom, in Geneva, and in War- 
saw. We have negotiated with them about Korea, 
about Indochina, about the prisoners wliom they 
unlawfully detained, and about the Taiwan Strait. 
The lack is not of a forum for negotiation but of 
a willingness on the part of the Chinese Commu- 
nists to settle any important question, except by 
causing their opponents to surrender. 

And, finally, it is often stated by Red China's 
supporters that refusal to seat this regime in the 
United Nations denies representation in this world 
body to 600 million mainland Chinese. In view 
of the long record of aggressions and threats of 
war by the Peiping regime, this argument would 
have no validity under the charter even if it were 
true. However, as a matter of fact, the fanatical, 
aggressive rulers of Peiping come no closer to 



520 



Department of State Bulletin 



representing the will and aspirations of the Chi- 
nese people than they come to representing the will 
and asijirations of the Tibetan people — or, for 
that matter, than the puppet regime of Budapest 
comes to representing tlie will and aspii'ations of 
the Hungarian people. The Peiping regime was 
imposed by force and fraud with the volition of 
only a small fraction of the Chinese people. It 
has kept itself in power by bloody purges and by 
the liquidation of some 18 million mainland Chi- 
nese in 9 years. 

Within the past year the Chinese Communist 
authorities have imposed a brutal commune sys- 
tem, destructive of all family life, upon 120 million 
families, according to their figures. I submit that 
no regime representative of its people would have 
to resort to wholesale murder and to a mass slavery 
unparalleled in the history of the world to keep 
itself in power. 

The United States has carefully weighed these 
arguments. We find them based not on "reality," 
as is sometimes alleged, but on futile hopes, 
groundless fears, and wishful thinking. 

Peiping Regime an Outlaw 

We rest our argument, instead, on the solid facts 
of history and the solid principles of the charter. 

By every standard of national and international 
conduct the Red regime of Peiping is an outlaw. 
It has perpetrated mass murder and slavery upon 
its own people. It has confiscated without com- 
pensation hundreds of millions of dollars of the 
property of other nationals. It has thrown for- 
eign citizens into jail without trial and subjected 
many of them to inhuman tortures. In 9 years 
it has promoted 6 foreign or civil wars — Korea, 
Tibet, Indochina, the Philippines, Malaya, and 
Laos. It has fought the United Nations. It has 
been found by it to be an aggressor. It continues 
to defy the United Nations decision to reunify 
Korea. It has flagrantly violated the Korea and 
Indochina international armistice agreements. It 
openly proclaims its continuing purpose, to use 
force in the Taiwan Strait. 

We invite all delegates to compare the record of 
Communist China in international affairs with the 
standards set forth in the charter. We believe 
they will overwhelmingly conclude, as we do, that 
the Chinese Communist regime has acted — and is 
acting still — not to maintain but to destroy inter- 
national peace and security ; not to remove but to 



create threats to the peace and acts of aggression ; 
not to develop friendly relations among nations 
but to sow hatred of other countries. In this 
center for harmonizing the actions of nations we 
believe it would contribute only discord and 
dishonor. 

By the same standards we hold that tlie Re- 
public of China, a stalwart ally against the forces 
of aggression in World War 11 and a reliable 
comrade in the cause of peace, is entitled to the 
seat it occupies here today both under article 3 
of the charter and by reason of its consistent sup- 
port for the charter's principles. 

The Republic of China is recognized as the le- 
gitimate Goverimient of Cliina by a substantial 
majority of the countries of the world. 

It is true that the Peiping regime does now 
exercise physical control over a much larger area 
of Chinese territory than that under the control 
of the Republic of China. However, this situa- 
tion represents a military rather than a political 
reality. The Republic of China has repeatedly 
stated its willingness to rest its claim to represent 
the Chinese people on the result of free elections 
held throughout the country. The Communist 
military dictatorship of Peiping does not dare to 
submit its claim to any such test. 

U.N. Standards Must Prevail 

Mr. President, I conclude. The issue here is 
simple. The proponents of seating Red China 
are not demanding that Red China change its 
ways. Some of them — I refer to the Soviet Union 
and its satellites — even have the effrontery to laud 
the Peiping regime on the floor of this body for 
its so-called contributions to peace and stability 
in Asia. And I must add, in all candor, that the 
distinguished representative of India, whose Gov- 
ernment admits many of the indisputable facts 
of Red China's record, when he insists on this item 
is in effect insisting tliat the United Nations mod- 
ify its standards in order to accommodate the 
power of lawlessness. 

Tlie question therefore is: Shall we stand fast 
and require conformity to United Nations stand- 
ards, or shall we take the step, the truly irrev- 
ocable step, of debasing the standards of the 
United Nations to allow this or any other regime 
to shoot its way into the United Nations simply 
because its guns are powerful ? 

My Government believes that there is only one 



Ocfofaer 72, 1959 



521 



possible answer : The standards of the United Na- 
tions must prevail. It is our belief in those stand- 
ards which binds us together as a commimity of 
nations and makes the United Nations an effective 
force for peace. 

To seat in this body, founded to maintain the 
peace of the world, a habitual offender against the 
peace would make a mockery of our charter and 
rob it of all the moral authority it now possesses. 

Overwhelming Support of American People 

The distinguished representative from Nepal 
referred to the opinions of a few American diplo- 
mats who favored American recognition of Red 
China and its admission to the Unit«d Nations. 
I noted that he failed to note the many who wholly 
approved of the policy of nonrecognition. And it 
would take very little research on his part to dis- 
cover that the overwhelming majority of the 
American people support the United States policy 
on nonrecognition and admission of this regime to 
the United Nations. 

The question of United Nations admission was 
submitted to the United States Congress in the 
election year of 1956. Election years, as you well 
know, are critical years in American political life. 
The vote on the resolution opposing the admission 
of Red China to the United Nations was 391 to 
in the House and 86 to in the Senate. In 
other words, in an election year tliere wasn't a 
single Congressman or Senator of either party who 
was willing to vote against the resolution. And 
that wasn't all. The two parties went on to their 
political conventions and both of them adopted 
almost identical planks, reaffirming United States 
opposition to the seating of Red China in this 
body. Mr. Eisenhower was elected on that plat- 
fomi. Mr. Stevenson was nominated on a plat- 
form whicli included that same provision. The 
last time that the Congress liad to express its 
opinion on this problem was on August 17 of this 
year. A resolution in the House opposing U.N. 
membershii) passed by the overwhelming majority 
of 368 to 2. 

I hope, Mr. President, that tlie amendment pro- 
posed by Nepal will not prevail and tliat the re- 
port of the General Committee will be approved.^ 



"The (iciieral Assembly in plenary Kessiim on Sept. 22 
adopted the resolution reconiiiiended l)y the General Com- 
mittee by a vote of 44 to 29, with !) abstentions (A/RES/- 
1351 (XIV)). 



522 



Agenda of the 14th Regular Session 
of the U.N. General Assembly ^ 

U.N. doc. A/4230 dated September 23 

1. Opening of the session by the Chairman of the dele- 
gation of Lebanon. 

2. Minute of silent prayer or meditation. 

3. Credentials of representatives to the fourteenth ses- 
sion of the General Assembly. 

(a) Appointment of the Credentials Committee; 

(b) Report of the Credentials Committee. 

4. Election of the President. 

5. Constitution of the Main Committees and election of 
officers. 

6. Election of Vice-Presidents. 

7. Notification by the Secretary-General under Article 
12, paragraph 2, of the Charter. 

8. Adoption of the agenda. 

9. Opening of the general debate. 

10. Report of the Secretary-General on the work of the 
Organization. 

11. Report of the Security Council. 

12. Reiwrt of the Economic and Social Council. 

13. Report of the Trusteeship Council. 

14. Report of the International Atomic Energy Agency. 
W. Election of three non-permanent members of the Se- 
curity Council. 

16. Election of six members of the Economic and Social 
Council. 

17. Election of two members of the Trusteeship Council. 

18. Election of a member of the International Court of 
Justice to fill the vacancy caused by the death of 
Judge Jos6 Gustavo Guerrero. 

19. Question of amending the United Nations Charter, in 
accordance with the procedure laid down in Article 
108 of the Charter, to increase the number of nan- 
permanent members of the Security Council and the 
number of votes required for decisions of the Council. 

20. Question of amending the United Nations Charter, in 
accordance with the procedure laid down in Article 
108 of the Charter, to increase the membership of the 
Economic and Social Council. 

21. Question of amending the Statute of the International 
Court of Justice, in accordance with the procedure 
laid down in Article 108 of the Charter of the United 
Nations and Article 69 of the Statute of the Court, 
with respect to an increase in the number of judges 
of the International Court of Justice. 

22. Report of the Committee on arrangements for a con- 
ference for the puri)ose of reviewing the Charter. 

23. Interim report of the Secretary-General evaluating 
the Second United Nations International Conference 
on the Peaceful Uses of Atomic Energy in relation to 
the holding of similar conferences in the future. 

24. Progress relKirt of the United Nations Scientific Com- 
niittiH> on the Effects of .Vtoniic Radiation. 



■ Adoptctl by the General Assembly on Sept. 22. 

Department of State Bulletin 



25. Report of the Ad Hoc C!ommittee on the Pe;u-cfnl 
Uses of Outer Space. 

26. The Korean question : report of the United Nations 
Commission for the Unification and Rehabilitation of 
Korea. 

27. United Nations Relief and Works Agency for Pales- 
tine Refugees in the Near East : 

( a ) Report of the Director of the Agency ; 

(b) Proposals for the continuation of United Nation-s 
assistance to Palestine refugees : document sub- 
mitted by the Secretary-General. 

28. United Nations Emergency Force : 

(a) Cost estimates for the maintenance of the Force ; 

(b) Manner of financing the Force: report of the 
Secretary-General on consultations with the Gov- 
ernments of Member States ; 

(c) Progress reijort on the Force. 

29. Progress and operations of the Special Fund. 

30. Economic development of under-developed countries. 

(a) Report by the Secretary-General on measures 
talien by the Governments of Member States to 
further the economic development of under-ile- 
velope<l countries in accordance veith General As- 
.sembly resolution 1316 (XIII) ; 

(b) Progress in the field of financing the economic 
development of under-developed countries. 

31. Programmes of technical assistance: 

(a) Report of the Economic and Social Council ; 

(b) United Nations assistance in public administra- 
tion : report of the Secretary -General ; 

(e) Confirmation of the allocation of funds under the 
Expanded Programme of Technical Assistance. 

32. United Nations Korean Reconstruction Agency; prog- 
ress report of the Administrator for Residual Af- 
fairs of the Agency. 

33. Report of the United Nations High Commissioner for 
Refugees. 

34. Draft International Covenants on Human Rights. 
3.5. Draft Convention on Freedom of Information: text 

of the draft Convention fonnulated by the Commit- 
tee on the Draft Convention on Freedom of Informa- 
tion and report of the Secretary-General on the com- 
ments of Governments thereon. 
36. Information from Non-Self-Governing Territories 
transmitted under Article 73e of the Charter: reports 
of the Secretary-General and of the Committee on 
Information from Non-Self-Governing Territories : 

(a) Progress achieved by the Non-Self -Governing 
Territories in pursuance of Chapter XI of the 
Charter ; 

(b) Information on e<lucational conditions ; 

(c) Information on other conditions; 

(d) General questions relating to the transmission 
and examination of information ; 

(e) Report of the Secretary-General on new develop- 
ments connected with the association of Non- 



Self-Governing Territories with the European 
Economic Coninninity ; 
(f) Offers of study and training facilities under 
resolution .S4.T (IX) of 22 Novemijor 19.54: rei)ort 
of the Secretary-General. 

37. Election to fill vacancies in the Committee on Infor- 
mation from Non-Self-Governiug Territories. 

38. Question of South West Africa. 

(a) Report of the Good Oflices Committee on South 
West Africa ; 

(b) Report of the Cminuittee on South West Africa ; 

(c) Study of legal action to ensure the fulfilment of 
the obligations assumed by the Union of South 
Africa in respect of the Territory of South West 
Africa ; 

(d) Election of tliree members of the Committee on 
South West Africa. 

39. Offers by Member States of study and training facil- 
ities for inhabitants of Trust Territories : report of 
the Trusteeship Council. 

40. Question of the frontier between the Trust Territory 
of Soraaliland under Italian administration and 
Ethiopia : reports of the Governments of Ethiopia and 
of Italy. 

41. The future of the Trust Territory of the Cameroons 
under United Kingdom administration: 

(a) Organization of the plebiscite in the southern part 
of the Territory : question of the two alternatives 
to be put to the people and the qualifications for 
voting ; 

(b) Report of the United Nations Plebiscite Commis- 
sioner on the plebiscite in the northern part of the 

Territory and report of tlie Trusteeship Council. 

42. Financial reports and accounts, and reports of the 
Board of Auditors : 

(a) United Nations (for the financial year ended 31 
Decemf)er 19.58) : 

(b) United Nations Children's Fund (for the financial 
year ended 31 December 1958) ; 

(c) United Nations Relief and Works Agency for 
Palestine Refugees in the Near East (for the 
financial year ended 31 December 19r)8) ; 

(d) United Nations Refugee Fund (for the financial 
year ended 31 December 1958). 

43. Supplementary estimates for the financial year 19.59. 

44. Budget estimates for the financial year 1960. 

45. Appointments to fill vacancies in the membership of 
subsidiary bodies of the General Assembly : 

(a) Advisory Committee on Administrative and 
Budgetary Questions ; 

(b) Committee on Contributions; 

(c) Board of Auditors; 

(d) Investments Committee: confirmation of the ap- 
pointment made by the Secretary-General ; 

(e) United Nations Administrative Tribunal ; 

(f ) United Nations Staff Pension Committee. 

46. Report of the Negotiating Committee for Extra- 
Budgetary Funds. 



Ocfober 12, J959 



523 



47. Scale of assessments for the apportionment of the 
expenses of the United Nations ; report of the Com- 
mittee on Contributions. 

48. Audit reports relating to expenditure by specialized 
agencies of technical assistance funds allocated from 
the Special Account. 

49. Administrative and budgetary co-ordination between 
the United Nations and the specialized agencies : re- 
port of the Advisory Committee on Administrative 
and Budgetary Questions. 

50. Construction of the United Nations building in Santi- 
ago, Chile: progress report of the Secretary-General. 

51. United Nations International School : report of the 
Secretary -General. 

52. Public information activities of the United Nations: 
report of the Secretary-General. 

53. United Nations Joint Staff Pension Fund : 

(a) Annual report on the United Nations Joint Staff 
Pension Fund ; 

(b) Report on the fifth actuarial valuation of the 
United Nations Joint Staff Pension Fund. 

54. Personnel questions : 

(a) Geographical distribution of the staff of the 
Secretariat : report of the Secretary-General ; 

(b) Proportion of fixed-term staff; 

(c) Other personnel questions. 

55. Report of the International Law Commission on the 
work of its eleventh session. 

56. Diplomatic intercourse and immunities. 

57. Question of the publication of a United Nations jurid- 
ical yearbook. 

58. Question of initiating a study of the juridical regime 
of historic waters, including historic bays. 

59. Question of Algeria. 

60. Treatment of people of Indian origin in the Union of 
South Africa. 

61. Question of race conflict in South Africa resulting 
from the policies of apartheid of the Government of 
the Union of South Africa. 

62. Question of the consistent application of the prin- 
ciple of equitable geographical representation in the 
election of the President of the General Assembly. 

63. Proposed amendments to certain provisions of the 
Pension Scheme Regulations of the International 
Court of Justice. 

64. Draft Declaration of the Rights of the Child. 

65. Reservations to multilateral conventions : the Con- 
vention on the Inter-Governmental Maritime Consul- 
tative Organization. 

66. Question of disarmament : 

(a) Report of the Disarmament Commission: letter 
dated 11 September lO-TO from the Chairman of 
the Disarmament Commission to the Secretary- 
General. 

67. Prevention of the wider dissemination of nuclear 
weapons. 

68. Question of French nuclear tests in the Sahara. 

69. Suspension of nuclear and thornio-nuclear tests. 

70. General and complete disarmament. 



United States Delegations 
to International Conferences 

3d Session of IAEA General Conference 

The Department of State announced on Septem- 
ber 21 (press release 663) that President Eisen- 
hower on August 25 had appointed John A. 
McCone, Chairman of the Atomic Energy Com- 
mission, and Paul F. Foster, U.S. Representative 
to the International Atomic Energy Agency, as 
the U.S. Representative and the Alternate U.S. 
Representative, respectively, to the third regular 
session of the General Conference of the IAEA, 
which will convene at Vienna September 2'2, 1959.^ 

Other members of the U.S. delegation will in- 
clude : 

Congressional Advisers 
Wallace F. Bennett, United States Senate 
Bourke B. Hickenlooper, United States Senate 
William H. Bates, House of Representatives 
Chet Holifield, House of Representatives 
Craig Hosmer, House of Representatives 
Melvin Price, House of Representatives 

Special Advisers 

.John F. Ploberg, Commissioner, Atomic Energy Com- 
mission 

Robert E. Wilson, Member, General Advisory Committee, 
Atomic Energy Commission 

Edward L. Brady, U.S. Missioh, International Atomic 
Energy Agency, Vienna, Austria 

John A. Hall, Assistant General Manager for Interna- 
tional Activities, Atomic Energy Commission 

Harold O. Vedeler, U.S. Mission, International Atomic 
Energy Agency, Vienna, Austria 

Advisers 

Kathleen Bell, Office of International Economic and So- 
cial Affairs, Department of State 

Betty Gough, U.S. Mission, International Atomic Energy 
Agency, Vienna, Austria 

Charter Heslep, Atomic Energy Commission 

Myron B. Kratzer, Atomic Energy Commission 

Clyde L. McClelland, U.S. Mission, International Atomic 
Energy Agency, Vienna, Austria 

Bernard W. Menke, Atomic Energy Commissi(m 

Alfred I'uhan, Office of International Administration, De- 
partment of State 

Ernest L. Stanger, Office of United Nations Political and 
Security Affairs, Department of State 

John P. Trevithick, U.S. Mission, International .\tomic 
Energy Agency, Vienna, Austria 

Ernest G. Wiener, Deputy Public AfEairs Officer, Ameri- 
can Embassy, Vienna, Austria 



'The Department of State announced on Sept. 24 (press 
release 072) that President Eisenhower had on that day 
designaled John F. Floberg. Commissioner, .\tomic Energy 
Commission, as Acting Alternate U.S. Representative. 



524 



Department of Sfafe Bulletin 



Algle A. Wells, Atomic Energy Commission 

Robert M. Winfree, Special Assistant to the Secretary 

for Disarmaiuent and Atomic Energy, Department of 

State 

Special Assistant to the U.S. Representative 

Dwiglit A. Ink, Atomic Energy Commission 

Secretary of Delegation 

John R. Bartelt, Office of International Conferences, De- 
partment of State 

Staff Observers 

Edward Bauser, Joint Committee on Atomic Energy 
Comdr. Thomas Brady, USN, Department of Defense 
Richard Donovan, Atomic Energy Commission 
Thomas Huff, Management and Services Division, De- 
partment of State 
George P. Murphy, Jr., Joint Committee on Atomic 
Energy 

The IAEA is an outgrowth of President Eisen- 
hower's atoms-for-peace proposal in his now his- 
toric speech before the General Assembly of the 
United Nations on December 8, 1953. It was 
established in 1957 and is the international agency 
primarily responsible for promoting, on a world- 
wide basis, the peaceful uses of atomic energy. 
The IAEA lias a membership of 70 coimtries and 
has its headquarters at Vienna. 

The principal items which the third conference 
will discuss include: the report of the Board of 
Governors for the year 1958-59; the program, fi- 
nancial affairs, and budget for 1960; assistance 
to less developed countries in the production of 
nuclear power; the election of members to the 
Board of Governors; and relations with special- 
ized agencies of the United Nations and intergov- 
ernmental organizations. 

The conference is expected to be in session for 
about 2 weeks. 



Current U.N. Documents: 
A Selected Bibliography ^ 

Security Council 

Letter Dated 15 September 1959 From the Permanent 
Representative of the Union of Soviet Socialist Re- 
publics Addressed to the Secretary-General Relating 



to the Question of Laos. S/i'2'2 
7 pp. 



September 21, 1959. 



' Printed materials may be secured in the United States 
from the International Documents Service, Columbia 
University Press, 2960 Broadwa.v, New York 27, N.Y. 
Other materials (mimeographed or processed documents) 
may be consulted at certain libraries in the United States. 



General Assembly 

Cessation of the Transmission of Information Under Ar- 
ticle 7;!e of the Charter : Communication From the Gov- 
ernment of France. A/40y6/Add. 1. July 17, 1959. 
245 pp. 

Progress Achieved by the Non-Self-Governing Territories 
in Pursuance of Chai)ter XI of tlie Charter : Agricul- 
ture and Livestock. Report prepared by the Food and 
Agriculture Organization. A/4108. July 23, 1959. 
179 pp. 

Supplementary List of Items for the Agenda of the Four- 
teenth Regular Session of the General Assembly. 
A/4189. August 25, 1909. 1 p. 

Draft Convention on Freedom of Information : Comments 
by Governments. Report by the Secretary-General. 
A/4173/Add. 2. September 11, 1959. 3 pp. 

Supplementary Estimates for the Financial Year 1959. 
Report of the Secretarv-General. A/4198. September 
11, 1959. 34 pp. 

Request for the Inclusion of an Additional Item in the 
Agenda of the Fourteenth Regular Session : Item Pro- 
posed Ijy the Secretary-General — Question of Disarm- 
ament. Note by the Secretary-General. A/4209. 
September 11, 1959. 3 pp. 

Diplomatic Intercourse and Immunities. Additional com- 
ments by governments (Denmark) concerning the draft 
articles on diplomatic intercourse and immunities 
adopted by the International Law Commission at its 
10th session in 1958. A/4164/Add. 2. September 14, 
1959. 2 pp. 

Report of the Economic and Social Council (Chapter III). 
Note bv the Secretary-General. A/4211. September 14, 
1959. 38 pp. 

Technical Assistance in Public Administration : Provision 
of Operational. Executive and Administrative Personnel. 
Report by the Secretary-General. A/4212. September 
14, 1959. 18 pp. 

Progress Achieved by the Non-Self-Governing Territories 
in Pursuance of Chapter XI of the Charter : Human 
Rights. Report prepared by the Secretariat. A/4194. 
Sei>tember 16, 1959. 21 pp. 

Collection of Contributions as at 14 September 19.59. Re- 
port of the Secretarv-General. A/C.5/778. September 
16, 1959. 7 pp. 

Diplomatic Intercourse and Immunities. Additional com- 
ments by governments (Pakistan) concerning the draft 
articles on diplomatic intercourse and immunities 
adopted by the International Law Commission at its 
10th session in 1958. A/4164/ Add. 3. September 17, 
1959. 3 pp. 

Adoption of the Agenda of the Fourteenth Regular Ses- 
sion, Allocation of Items and Organization of the Ses- 
sion. First report of the General Committee. A/4214. 
September 17, 1959. 17 pp. 

Notification by the Secretary-General Under Article 12. 
Paragraph 2, of the Charter. Letter dated September 
14, 1959, from the Secretary-General to the President of 
the General Assembly. A/4216. September 17, 1959. 5 
pp. 

Progress and Operations of the Special Fund. Note by 
the Secretary-General. A/4217. September 17, 1959. 
30 pp. 

Request for the Inclusion of an Additional Item in the 
Agenda of the Fourteenth Regular Session : Item Pro- 
posed by the Union of Soviet Socialist Republics — Gen- 
eral and Complete Disarmament. A/4218. September 
19, 1959. 3 pp. 

Declaration of the Soviet Government on General and 
Complete Disarmament. A/4219. September 19, 1959. 
17 pp. 



Ocfofaer 72, 1959 



525 



EATY INFORMATION 



United Kingdom 

Agreement extending the agreement of June 29 and July 
12, 1954 (TIAS 3152), for a technical assistance pro- 
gram in British Guiana. Effected by exchange of notes 
at Washington June 22 and 30, 1959. Entered into 
force June 30, 1959. 



Current Actions 



■MULTILATERAL 

Aviation 

Convention on the international recognition of rights in 
aircriif t Done at Geneva June 19, 1948. Entered into 
force September 17, 1953. TIAS 2847. 
Ratification deposited: Netlierlands (for the Kingdom 
in Europe), September 1, 1959.' 

Drugs 

Protocol for termination of agreement for unification of 
pharmacopoeial formulas for potent drugs of November 
•'9 1906 (TS 510). Signed at Geneva May 20, 1952. 
Entered into force May 20, 1952. TIAS 2092. 
Made applicable to: Anglo-French Condominium of the 
New Hebrides, July 14, 1959. 

Genocide 

Convention on the prevention and punishment of the 
crime of genocide. Done at Paris December 9, 194a 
Entered into force January 12, 1951.^ 
Ratification deposited: India (with reservation), Au- 
gust 27, ld59. 

BILATERAL 

Canada 

Agreement extending the agreement of January 16 and 17, 

1957, relating to the use of the Haines cutoff road for 
winter maintenance of a section of the Haines-Pair- 
banks pipeline (TIAS .3732). Effected by exchange of 
notes at Ottawa August 17 and 20, 1959. Entered into 
force August 20, 1959. 

France 

Agreement amending the agreement for cooperation con- 
cerning civil uses of atomic energy of June 19, 1956, as 
amended (TIAS 3689 and 3883). Signed at Washing- 
ton July 22, 1959. Entered into force September 22, 
1959. 

Germany 

Agreement amending the agreement for cooperation con- 
cerning civil uses of atomic energy of July 3, 1957 
(TIAS 3877). Signed at Washington July 22, 1959. 
Entered into force September 22, 1959. 

Greece 

Agreement relating to the loan of vessels to Greece. 
Effp<-ted by exchange of notes at Athens December 15, 

1958, and January 15, 1959. Entered into force Janu- 
ary 15, 1959. 

Agreement relating to the loan of an additional vessel to 
Greece. Effected by exchange of notes at Athena Au- 
gust 20, 1959. Entered into force August 20, 1959. 



DEPARTMENT AND FOREIGN SERVICE 



Designations 

Allan Loren as director of the U.S. Operations Mission, 
Ethiopia, effective September 15. (For biographic de- 
tails, see Department of State press release 668 dated 
September 24.) 



' With a declaration stating that the Netherlands Gov- 
ernment is unable to accept the reservation made by 
Mexico and dm>s not regard the convention as in force 
between the Kingdom of the Netherlands and the Gov- 
ernment of Mexico. 

" Not in force for the United States. 



Checi( List of Department of State 
Press Releases: September 21-27 

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

Releases issued prior to September 21 which ap- 
pear in this issue of the Bulletin are Nos. 648 of 
September 14 and 653 of September 16. 

Subject 

Bohlen designation (biographic de- 
tails). 

Thayer : International Council for 
Philosophy and Humanistic Studies. 

Designation of Mrs. Eleanor Dulles to 
INR. 

IAEA delegation (rewrite). 

Herter: statement on Algeria. 

Herter : letter to George Allen on Mos- 
cow exhibition. 

DLP loan in Haiti (rewrite). 

Herter : remarks before U.N. Corres- 
pondents Association. 

Loren designation, USOM, Ethiopia 
(biographic details). 

Educational exchange (Mexico). 

SEATO Council of Ministers meeting 
(rewrite). 

Meeting of Herter and Japanese 
Foreign Minister. 

Floberg designated Acting Alternate 
U.S. Representative, IAEA (re- 
write). 

Private investment team visits Thai- 
land. 

DIjP commitments. 

Herter: toa.st at luncheon for Chair- 
man Khrushchev. 

List of guests at luncheon for Chair- 
man Khrushchev. 

'.Not printed. 

tHeld for a later issue of the Bulletin. 



No. 


Date 


*6()0 


9/21 


661 


9/21 


*662 


9/21 


663 
(HA 
665 


9/21 

9/22 
9/22 


666 
667 


9/23 
9/23 


»668 


9/24 


•6(!9 
670 


9/24 
9/24 


671 


9/24 


672 


9/24 


673 


9/25 


t674 
675 


9/25 
9/25 


•676 


9/25 



526 



Department of State Bulletin 



October 12, 1959 



Index 



Vol. XLI, No. 1059 



Agriculture. President Approves Legislation Ex- 
tending P.L. 480 Progrtun 515 

Algeria 

President and Secretary Herter Comment on Al- 
geria Plan 500 

The U.N. as a Peace Mechanism (Herter) . . . 502 

Atomic Energy. 3d Session of IAEA General Con- 
ference (delegation) 524 

China. General Assembly Again Decides Not To 
Consider Question of Chinese Representation 
(Koliertson) 517 

Congress, The 

Congressional Documents Relating to Foreign 
Policy 516 

President Approves Legislation Extending P.L. 480 

Program 515 

Department and Foreign Service. Designations 

(Loren) 526 

Disarmament 

President Eisenhower and Chairman Khrushchev 
Issue Communique at Conclusion of Talks at Camp 
David ( Eisenhower, Herter, Khrushchev ) . . . 499 

Secretary Herter Comments on Soviet Disarma- 
ment I'roposal 508 

The U.N. as a Peace Mechanism (Herter) . . . 502 

Economic Affairs 

Expauding World Trade for the Benefit of All 

(Rankin) 513 

President To Maintain Existing Long-Staple Cot- 
ton Import Quotas 516 

Private Investment Team To Assist Thai Govern- 
ment 514 

Educational Exchange. Role of the Humanities in 

International Relations (Thayer) 510 

Ethiopia. Loren designated director, USOM . . 526 

France 

President and Secretary Herter Comment on Al- 
geria Plan 500 

The U.N. as a Peace Mechanism (Herter) . . . 502 

Germany 

President and Secretai^y Congratulate Mr. Adenauer 

on 10th Anniversary 501 

President Eisenhower and Chairman Khrushchev 
Issue Communique at Conclusion of Talks at Camp 
David (Eisenhower. Herter, Khrushchev) . . 499 

The U.N', as a Peace Mechanism (Herter) . . . 502 

Haiti. Development Loan 516 

International Information. Secretary Herter 
Praises American Exhibition at Moscow (text of 
letter) 514 

International Organizations and Conferences 

SEATO Council of Ministers To Hold Informal 
Meeting 509 

3d Session of IAEA General Conference (delega- 
tion) 524 

Israel. Letters of Credence (Harman) .... 500 



Japan. Japanese Foreign Minister Meets With 

Secretary Herter (text of joint statement) . . 508 

Laos. The U.N. as a Peace Mechanism (Ilerter) 502 

Mutual Security 

Development Loan (Haiti) 5i(> 

Loren designated director, USOM, Ethiopia . . . 526 
Private Investment Team To Assist Thai Govern- 
ment 514 

Presidential Documents 

National Olympic Week, 1959 515 

President and Secretary Congratulate Mr. Adenauer 

on 10th Anniversary 50I 

President and Secretary Herter Comment on Al- 
geria Plan 500 

President Approves Legislation Extending P.L. 480 
Program 515 

President Eisenhower and Chairman Khrushchev 
Issue Commimique at Conclu.sion of Talks at Camp 
David 499 

Southeast Asia Treaty Organization. SEATO 

Council of Ministers To Hold Informal Meeting . 509 

Thailand. Private Investment Team To Assist 
Thai Government 514 

Treaty Information. Current Actions 526 

U.S.S.R. 

President Eisenhower and Chairman Khrushchev 
Issue Communique at Conclusion of Talks at Camp 
David (Eisenhower, Herter, Khrushchev) . . 499 

Secretary Herter Comments on Soviet Disarma- 
ment Proposal 508 

Secretary Herter Praises American Exhibition at 
Moscow (text of letter) 514 

The U.N. as a Peace Mechanism (Herter) . . . 502 

United Nations 

Agenda of the 14th Regular Session of the U.N. 

General Assembly .522 

Current U.N. Documents 525 

General Assembly Again Decides Not To Consider 
Question of Chinese Representation (Robert- 
son) 517 

Secretary Herter Comments on Soviet Disarma- 
ment Proposal 508 

The United Nations, a Cornerstone of U.S. Foreign 
Policy (Herter) 507 

The U.X. as a Peace Mechanism (Herter) . . . 502 

Yugoslavia. Expanding World Trade for the Bene- 
fit of All (Rankin) 513 

Name Index 

Adenauer, Konrad 501 

Eisenhower, President 499, 500, 501, 515 

Fujiyama, Aiichiro 508 

Harman, Avraham 500 

Herter, Secretary . . . 499, 500, 501, 502, 507, 508, 514 

Khrushchev, Nikita S 499 

Loren, Allan 526 

Rankin, Karl L 513 

Robertson, Walter S 517 

Thayer, Robert H 510 



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OFFICIAL BUSINESS 



President Eisenhower's 
European Trip 

August-September 1959 

On August 26 President Eisenhower left the United States for a 
13-day visit to Europe to confer on matters of mutual interest with 
Chancellor Konrad Adenauer of Germany, Prime Minister Harold 
Macmillan of Great Britain, President Charles de Gaulle of France, 
and other European leaders. The principal statements made by the 
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Foreign Ministers Meeting 

Geneva, May— August 1959 

This documentary publication on the recent Geneva Meeting of 
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as certain other important related papers. Also included are the 
I'eports made to the American people by Secretary of State Herter 
before and after each of the two phases of the Conference; lists of 
the delegations and adviser groups attending it; and a table of all 
East- West meetings held as part of the Conference. 



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LO- 




THE 

OFFICIAL 

WEEKLY RECORD \ 

OF 



4 



UNITED STATES 
FOREIGN POLICY 



Vol. XLI, No. 1060 





October 19, 1959 



AIDING THE LESS DEVELOPED NATIONS, A COOP- 
ERATIVE VENTURE • Annual Meetings of the World 
Bank, International Monetary Fund, and International Fi- 
nance Corporation 

Remarks by President Eisenhower 531 

Statements by Secretary of the Treasury Robert B. Anderson . 532 
Statement by Under Secretary of State Douglas Dillon . . . 537 
Statement by Assistant Secretary of the Treasury T. Graydon 

Upton 540 

Textof Resolution on International Development Association . 541 

UNDER SECRETARY DILLON'S NEWS CONFERENCE 

OF SEPTEMBER 30 547 

REFLECTIONS ON THE KHRUSHCHEV VISIT • by 

Assistant Secretary Berding 544 

UNITED STATES AND ITALY REAFFIRM THEIR 

CLOSE TIES • Visit of Prime Minister Segni and Foreign 
Minister Pella 541 

THE ROLE OF AMERICAN INVESTMENT IN 

AUSTRALIA • by Ambassador William J. Sebald .... 556 



For index see inside back cover 



m 



THE DEPARTMENT OF STATE 




Vol. XLI, No. 1060 • Publication 6895 
October 19, 1959 



For sale by the Superintendent of Documents 

U.S. Oovernmcnt Printing Office 

Wiishlngton 25, D.C. 

Peice: 

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the Budget (January 20, 1968). 

Note: Contents of this publication are not 
copyrighted and Items contained herein may 
be reprinted. Citation of the Depaetment 
OF State Bulletin as the source wUl be 
ai)prcclated. 



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 de- 
velopments in the field of foreign rela- 
tions and on the work of the Depart- 
ment of State and the Foreign Service. 
The BULLETIN includes selected press 
releases on foreign policy, issued by 
the White House and the Department, 
and statements and addresses made 
by the President and by the Secretary 
of State and other officers of the De- 
partment, as well as special articles on 
various phases of interruxtional affairs 
and the functions of the Department. 
Information is included concerning 
treaties and international agreements 
to rchich the United States is or may 
become a party and treaties of general 
international interest. 

Publications of the Department, 
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Aiding the Less Developed Nations, a Cooperative Venture 



ANNUAL MEETINGS OF BOARDS OF GOVERNORS OF WORLD BANK, INTERNATIONAL 
MONETARY FUND, AND INTERNATIONAL FINANCE CORPORATION 



The Boards of Governors of the Internatiotuil 
Bank for Reconsti-uetion and Development^ the 
Inter national Monetary Fund, and the Inter- 
national Fiiuince Corporation held their annual 
meetings at Washington, D.C., September 28 to 
October 2. Following are texts of the remarks 
and statements made by President Eisenhower, 
Secretary of the Treasury Robert B. Anderson, 
Under Secretary of State Douglas Dillon, and 
Assistant Secretary of the Treasury T. Graydon 
Upton, together with text of a resolution on the 
proposed International Development Association. 



REMARKS BY PRESIDENT EISENHOWER' 

It is a real privilege and pleasure to extend 
again to the governors of the International Bank, 
the International Monetary Fund, and the Inter- 
national Finance Corporation a hearty welcome 
from tlie Government and from the people of the 
United States. We are honored by your pres- 
ence in our midst, and we anticipate fruitful 
results from your deliberations here this week. 

We in the United States are fully aware that 
wliat happens in our economy can have signifi- 
cant effects on the well-being of the rest of the 
world and that many otlier countries attach con- 
siderable importance to developments in our 
economic situation. 

Happily, our economy today, despite the in- 
creasingly heavy impact of the interruption in 
steel production, is in a healthy condition. In 
recent visits abroad I could see at firsthand the 



' Made at the opening joint session of the IBRD, IMF, 

iind IFC on Sept. 28 (White House press release). 



heartwarming evidences of a remarkable recov- 
ery and expansion in a number of European 
economies. By the same token, you will see here 
that the United States economy has long since 
completed its recovery from the 1957-58 reces- 
sion and is well advanced into a new period of 
growtli. Although we have our problems, the 
recent growth of our economy has been of an 
orderly and balanced sort and we confidently 
expect this trend to extend at a good rate into 
the future. We are gratified also that, while 
recovery was being resumed, the overall level of 
consumer prices has been relatively stable and 
that a balanced Federal budget is in prospect for 
the present fiscal year. These are significant 
signs of the progress that can be made, if we 
pursue the right policies, in strengthening the 
financial bases of our economy and achieving 
inflation-free economic growth. 

But the struggle to achieve these results is 
never over. We must use all of our forces, espe- 
cially in fiscal and financial matters, to help keep 
the American economy soimd and to avoid infla- 
tion. The same must be done, indeed, in all the 
world's economies. This is the one sure way to 
achieve truly dependable advances in human 
welfare. 

It was only 15 years ago that many of the coun- 
tries represented here today pledged themselves 
to the creation of cooperative international institu- 
tions to deal with basic international financial and 
economic problems. The result was the establish- 
ment of tlie International Bank and the Monetary 
Fund, the records of which have been impressive 
ones. The action recently taken by our Govern- 
ments to increase the resources of these institu- 



Ocfober 79, 7959 



531 



tions ' showed the great confidence there is in them 
and it should enable them to operate even more 
effectively in the future than in the past. Three 
years ago the International Finance Corporation 
was added to this family of related international 
financial institutions to assist in financing produc- 
tive private enterprise. 

We are all aware of the general desire through- 
out the world for economic development and the 
need for international capital investment. While 
development is of course a natural and critical con- 
cern of the less developed countries, it is important 
to all others as well. The improved economic 
position of the industrialized countries provides 
the means whereby they can better do their part 
in assisting development elsewhere, both directly 
and through their participation in international 
institutions. 

Clearly, by such actions, there will result a 
stronger and more stable free world, to the mate- 
rial benefit of every participating nation, both the 
helper and the helped. 

It is recognized, however, that there are many 
development projects which, though economically 
sound, cannot be financed by existing international 
institutions. To meet this situation the United 
States Governor of the Bank has proposed the 
creation of an International Development Associa- 
tion as an affiliate of the Bank.' It is our belief 
that this new agency must be closely integrated 
with the Bank. Thus there will be assured the 
wise expenditure of its funds and the effective co- 
ordination of its activities with other institutions. 
In our view no other mechanism can perform this 
task for the free world as well as would the pro- 
posed IDA. 

I congratulate the Bank, the Fund, and the IFC 
on their achievements and express my hope for an 
increasingly significant contribution on their part 
to the well-being of the world economy. To you, 
as the governors of these institutions, falls the task 
of wisely directing policies toward the realization 
of these common and noble goals. 

I express my complete confidence in your readi- 
ness and in your ability so to do. Thank you very 
much indeed. 



FIRST STATEMENT BY MR. ANDERSON * 

I wish to join, both pei'sonally and on behalf 
of my delegation, in the welcome extended to all 
of you by the President of the United States. We 
hope your stay here will be pleasant and that 
these deliberations, so notably inaugurated, Mr. 
Chairman [Fernando Berckemeyer, Governor of 
the Bank and Fund for Peru], by your thoughtful 
address, will be highly productive. 

At last year's meeting, the governors consid- 
ered the need for both the Bank and the Fund to 
increase their financial capacity in order to assist 
more effectively with the problems of economic 
development and financial and economic stability.' 
The member countries have acted with dispatch 
to approve the proposals formulated by the Ex- 
ecutive Directors. I am sure that not only the 
financial response itself but also the clear expres- 
sion of confidence in the Bank and the Fund will 
greatly enhance the usefulness of these two insti- 
tutions in their future operations. 

We have seen in recent years intensified efforts 
in the less developed countries represented here 
to move ahead economically. The Fund and the 
Bank, in their respective roles, have done much to 
help, and as a result of their new resources they 
will be in a better position to meet appropriate 
demands on their funds. However, the needs of 
the less developed countries to attain sound and 
sustainable growth still further challenge the eco- 
nomic and financial statesmanship which this 
group, coming here from the many nations of the 
free world, has shown in the past. 

Those of us from the industrial countries have 
seen impressive gains in our economies. New and 
higher levels of economic activity have been 
achieved. This has been reassuring to the United 
States, since our international activities over 
many years have been directed toward cooperat- 
ing in the postwar reconstruction of other indus- 
trial countries as well as in helping the efforts of 
the less developed areas. We welcome the return 
of these other industrial countries to an economic 
position where they are capable to an increasing 
extent of participating, both directly and through 
international financial institutions, in supplement- 



= Bulletin of Oct. 5, lOr)!), p. 4S8. 

' For excerpts from a report on the proposed IDA by the 
National Advisory Council on Intemationiil Monetary and 
Financial Problems, see ibid., Sept. 14, 1959, p. 392. 



' Made at the opening joint ses.sion of the IBRD, IMF, 
and IFC on Sept. 28. Mr. Anderson is U.S. Governor of 
the IBRD and IMF. 

' Bulletin of Nov. 17, 1958, p. 793. 



532 



Deparfment of Stale Bulhfin 



ing the basic efforts of the developing countries 
themselves. 

I do not think it appropriate for me to com- 
ment on the mechanisms of carrying out direct 
financial relations between otlier countries. I 
would like, however, to say that the very char- 
acter of development financing requires longer 
term lending than has been available from many 
existing national financial institutions. 

There is a need, in addition to these direct ef- 
forts of each of us, for further joint action by 
those represented here to help progress of the less 
developed areas in a way which will not bear 
heavily on their external payments. I refer to 
the International Development Association, which 
is on the agenda of the Bank meeting. You will 
recall tliat at last year's meeting, at the direction 
of President Eisenhower, I stated tlie view of my 
Government that an International Development 
Association as an affiliate of the International 
Bank warranted serious study. I had no definite 
course of action to suggest at that time for such 
an association but expressed the hope that you 
would all give thought to this matter. 

The subsequent informal discussions with many 
of you and your representatives encouraged my 
Government to feel that this institution would be 
both feasible and desirable. As a result of our 
further study, and greatly aided by the valuable 
opinions received in our consultations, we have 
outlined our thoughts on the basic framework of 
an International Development Association. These 
ideas were circulated by the President of the Bank 
to each of you early in August. In forwarding 
that letter to you, Mr. [Eugene R.] Black ex- 
pressed his view that such an association could 
be a valuable supplement to the efforts of the 
International Bank. 

"We all realize that there are situations in the less 
developed countries where a sound project may re- 
quire financing which cannot be provided imder 
the criteria of our established international lend- 
ing institutions. It would be unfortunate if we 
did not help in these situations, where often only a 
relatively small margin of capital is needed. It 
would be equally regrettable if, in jointly meeting 
this responsibility, we set up an organization 
which competed or conflicted with the operations 
of our other proven international institutions. It 
is, therefore, of great importance to accomplish 
this purpose by establishing the new institution 



within the framework of tlie IBRD. In this man- 
ner we will not impair this existing lending in- 
stitution which can meet the needs of bankable 
projects. We also want to be sure that we are 
sufficiently imaginative and resourceful to bring 
about effective use of two forms of credit and at 
the same time sufficiently discriminating so that we 
add to, rather than take from, the capacity of 
existing sound organizations. 

It is equally important that an effort of this 
nature be made through an institution the member- 
ship of which consists of the community of free 
nations subscribing to the sound monetary policies 
represented by the IMF and adhering to the belief 
that the maximum accomplishment of any society 
can be attained within the framework of free 
economies. If we can accomplish these objectives, 
we can make a contribution of lasting benefit to 
the less developed countries. 

We recognize that we are breaking new ground 
in an international imdertaking of this sort. Be- 
cause it is 2iew we need to approach it with an atti- 
tude of flexibility. The Executive Directors of 
the IBRD have the experience and resourcefulness 
to develop effective policies, and we can confidently 
rely on them in their task of carrying out the op- 
erations of this new institution. 

The proposed International Development Asso- 
ciation provides the opportunity for member coun- 
tries to join together to further economic progress 
in the less developed areas. The positive efioit we 
will be making through this new institution will 
be an additional and effective answer to the chal- 
lenge before us. The need for it is clear. Ac- 
cordingly, the United States has introduced a reso- 
lution asking the Bank's Executive Directors to 
formulate articles of agreement for the Interna- 
tional Development Association after full con- 
sideration of all aspects which they deem perti- 
nent. The Executive Directors have more than 
adequately demonstrated their ability in the past 
to pursue this kind of task expeditiously. I urge 
your approval of this resolution when it is pre- 
sented for action. 

SECOND STATEMENT BY MR. ANDERSON' 

It was to be expected that the annual report 
of the Fund would point to evidences that the past 



' Made on Sept. 30 during discussion of the annual re- 
port of tlie International Monetary Fund. 



October 19, 7959 



533 



year was one of great advance in several important 
pliases of the economy of the free world. The first 
evidence is the sharp upswing of industrial pro- 
duction in the United States and renewed expan- 
sion in other industrial countries. Second, is the 
continued very substantial growth in gold and 
foreign exchange reserves of those other industrial 
countries. Third, is the move to external convert- 
ibility, which signaled the end of the postwar pe- 
riod of inconvertibility and its accompanying 
comprehensive exchange restrictions. 

However, the Fund report also calls attention 
to the less satisfactory experience of many of the 
less developed countries. I agree fully with the 
report that the difRcult problems with which these 
countries have had to deal make it all the more to 
their credit that so many of them have taken steps 
to introduce or maintain comprehensive stabiliza- 
tion programs. All of our countries, whether in- 
dustrialized or underdeveloped, face common 
problems arising out of the pressure of demand on 
economic resources, and all of us, as financial offi- 
cials, are engaged in an unending struggle to con- 
tain the destructive forces of inflation. 

We are glad to note that the Fund has continued 
to play an important role. The fact that the Fund 
has been ready and able to assist in the mainte- 
nance of convertibility undoubtedly was an im- 
portant encouragement to the countries which 
made formal moves during the year. At the same 
time the Fund has continued to give technical 
advice and financial support to countries which 
have been planning or intensifying their stabiliza- 
tion efforts. Use of the Fund's resources by these 
coimtries was substantial. For many of them, 
however, standby arrangements with the Fund 
were as important or even more important than 
the actual use of Fund resources. 

There is sometimes a tendency to refer to the 
stabilization programs with which the Fimd is as- 
sociated as if they were something which the Fund 
devised and sought to impose on one or another 
member counti-y. I am sure that this view is not 
held by my fellow govemoi'S. The desire to 
achieve and maintain stability in the economy and 
a sound currency as the reliable basis for economic 
development must arise within tiie country itself. 
If it does not, and if in consccpience this objective 
does not have the support of all major sectors 
of public opinion — responsible business and labor 
leadei-s, consumers, and public officials — the efforts 



of the Fund to extend either technical advice or 
financial support are unlikely to be successful. 
I have noted with interest the discussion of this 
subject ■which appears at the end of chapter II of 
the report. For us in the United States Govern- 
ment it is encouraging to observe the effective 
collaboration between the Fund and a number of 
the member countries, and I am confident that 
over the years this alliance between Fund and 
members in the effort to provide a sound financial 
basis for economic expansion will be one of the 
most important activities of the Fimd. 

A year ago at the meeting in New Delhi I had 
the pleasure of introducing a resolution looking to 
an increiise in the resources of the Bank and the 
Fund and the great satisfaction of finding that 
the resolution met with the unanimous support of 
the Boards of Governors. Now, a year later, we 
can note with real pride that the Executive 
Boards have presented their reports, the gover- 
nors have virtually unanimously approved the 
proposed resolutions, and the required percent- 
ages of actual participation in the increase in re- 
sources have been exceeded. This has been an 
outstandingly successful international coopera- 
tive effort to increase the pool of resources avail- 
able to the Fund and to increase the capacity of 
the International Bank to make loans. 

This year the United States is proposing con- 
sideration of the establishment of the Interna- 
tional Development Association as a desirable 
additional means of providing capital for the 
economic development of the free world. 

In his address the Managing Director of the 
Fund [Per Jacobsson] has commented on two 
aspects of Fund policy which are of very real 
interest to us in the United States Government. 
One of these, which is also mentioned in the an- 
nual report, relates to discrimination in trade and 
payments. During the first decade after the war, 
currency inconvertibility was very widespread 
and, for most of that period, was severe. Under 
those circumstances it was to be expected that 
countries would husband their earnings and re- 
serves in convertible currencies. This resulted, 
of course, in massive discrimination against the 
countries having convertible currencies, discrimi- 
nation which extended to imports of goods and to 
various so-called invisible transactions, such as 
tourist travel and remittances. Although these 
discriminatory arrangements alfecteil the trade of 



534 



Department of State Bulletin 



the United States, we concurred in the Fund's 
policy of sympathetic toleration of them pending 
the time when inconvertibility would give way to 
convertibility at least among the major currencies. 

This time has come and it has been accompanied 
by, and in considerable part made possible by, a 
very substantial impi'ovement in the balance-of- 
payments positions of the other industrial coun- 
tries and by large increases in their reserves. In 
our view the countries which no longer suffer from 
inconvertibility in their current international re- 
ceipts do not have any balance-of-payments justi- 
fication for discriminatory restrictions — that is, 
there is no reason for these countries to favor im- 
ports from nondollar countries over those from 
dollar countries. We have been very much grati- 
fied by the substantial progress which countries 
have made in reducing and eliminating discrim- 
inatory restrictions. But it has to be said that dis- 
crimination against the trade of dollar countries 
is still substantial and that it applies to commodity 
trade and some other transactions, especially the 
freedom of tourists to obtain funds to travel 
wherever they wish. We consider that it is most 
important for the Fund to declare its position on 
this matter clearly and forcefully. This would 
be shown not only by the actions of individual 
countries but by the Fund itself in the weeks fol- 
lowing tliis annual meeting. This is of particular 
concern to the collaboration between the Fund 
and the GATT [General Agreement on Tariffs 
and Trade]. 

The Managing Director has mentioned that 
many countries have reached the point where they 
soon will no longer need to avail themselves of the 
transitional privileges of article XIV, which deals 
with restriction on payments and transfers in in- 
ternational transactions, and will accept the obli- 
gations of article VIII. We agree with this view, 
and we also agree with him that it is time for the 
Executive Board of the Fund to examine the sev- 
eral important questions of policy connected with 
article VIII which will need clarification as a 
guide to the many member countries still oper- 
ating imder article XIV. 

U.S. Economic and Financial Developments 

I should like now briefly to review some of the 
economic and financial developments in the United 
States during the year. The aruiual report gives 
considerable attention to the United States, and I 



appreciate the objective way in which the develop- 
ments in my country have been analyzed. We in 
the United States Government keep always in the 
forefront of our minds that our economy is a very 
large one and that what happens here, whether 
good or bad, is of concern for other countries of 
the free world. At the same time, however, I 
agree with the line of analysis in the annual report 
pointing to the steady strengthening of the Euro- 
pean economies in recent years and to the substan- 
tial and autonomous economic power and influence 
of the Western European economy in world 
affairs. 

The main purpose of the United States in the 
financial and economic field is to maintain a strong 
and expanding economy on both the domestic and 
international fronts. Only economic strength can 
support a steadily rising standard of living for the 
people of the United States, and only through eco- 
nomic strength can the United States play its 
proper role in the defense of the free world and in 
assisting the vmderdeveloped countries of the 
world, to whom economic advance is so vital. 

To maintain and enlarge the economic strength 
of the United States we rely on a few main lines of 
policy. These include, first, a sound fiscal position 
which will both avoid inflation and meet the very 
large expenditures at home and abroad which the 
United States Government must undertake; sec- 
ond, firm and yet flexible monetary policies aimed 
at achieving and maintaining stable purchasing 
power for the dollar and an adequate basis for 
large and growing savings ; third, maintenance of 
competitive private enterprise and high employ- 
ment opportunities within the framework of 
sound social and economic policies; fourth, im- 
provement of our technology and production effi- 
ciency so that we can expand our markets at home 
and abroad. 

Turning to the balance-of-payments position of 
the United States, the present situation is this. 
The excess of exports of United States goods and 
services over our imports is currently running at 
the rate of about $3 billion per year. This excess 
is not sufficient to meet three large categories of 
outpayments by the United States which in the 
aggregate amount to about $7i/2 billion a year. 
There is a difference of roughly $41/0 billion. 
Some of these outpayments are directly associated 
with and add to our exports ; others bear a much 
more indirect relationship to our trade. But their 



Ocfober 79, 1959 



535 



overall effect is to provide foreign countries with 
substantial net receipts of dollars. 

One of these three large outpayments by the 
United States consists of military expenditures 
abroad, which have been running over $3 billion 
in recent years. The second is net U.S. Govern- 
ment grants, loans, and other capital outflow of 
about $21/2 billion a year. The third is the outflow 
of private capital, which amounts to $2 billion or 
more per year. Despite heavy demands on our 
savings at home, reflected by rising interest rates, 
we are making substantial amounts of these sav- 
ings available to underdeveloped countries. More- 
over, large contributions to the defense of the free 
world are an important part of the international 
policy of the United States Government and of all 
of the free world. 

The resulting large payments deficit or differ- 
ence of about $41/^ billion is accounted for mainly 
by foreign gains of gold, dollar holdings, and 
both short- and long-term foreign investments in 
the United States. It is our hope that this large 
payments difference will be reduced by increases 
in our commercial exports of goods and services 
relative to our imports of them. But, while we 
will put emphasis on strengthening our capacity 
to export, we cannot be unmindful of other factors 
and therefore we will also keep our whole inter- 
national financial position under review. 

The U.S. dollar is a reserve currency. In our 
modem monetary and exchange systems, the role 
of a reserve currency is essential, and it is natural 
that foreign central banks and treasuries as well 
as private persons and institutions abroad should 
hold dollars in substantial amounts. This means 
that while it is, of course, in our own interest to 
keep the strength of the dollar beyond question, 
we must also be aware of the interest of other 
countries which rely on the dollar as a reserve 
currency. 

It is, however, important also to look at the 
world payments situation as a whole and not at 
the position of the United States alone. In 1958 
the other industrial countries of the free world 
had a substantial payments surplus not only with 
the United States but also with the less developed 
members of our institutions. These surpluses sub- 
stantially exceeded the long-term financing made 
available by these countries to the rest of the 
world. That is to say, their net exports were sub- 
stantially greater than the financing which they 



provided to cover them, resulting in an unusually 
large addition to liquid holdings of foreign ex- 
change, on both official and private account. A 
similar situation has continued in 1959. This 
large excess of exports over the outflow of capital 
does not represent a satisfactory pattern of world 
payments and cannot be expected to persist. 

Changing World Financial Situation 

The passage of time changes circumstances, and 
these changes continually force upon us all the 
need to review our policies. Following "World 
War II, when many countries were suffering from 
the ravages of war and when their foreign ex- 
change reserves were very low, the principal poli- 
cies of the United States in the foreign financial 
and economic fields were designed to assist in re- 
building economies and to strengthen currencies. 
But now there has been a restoration of the rela- 
tive competitive positions of the other industrial 
countries of the free world. No longer is the 
United States the dominant supplier of capital 
goods and other manufactures. The other indus- 
trial countries have improved their own financial 
positions. This means that there is no longer a 
justification for the discriminatory practices of 
the earlier period of their economic and financial 
weakness. Finally, the changed circumstances of 
the industrial countries ought to put at rest any 
unfoimded idea that the economic problems of the 
free world are based either on a shortage of dol- 
lare or on a general lack of liquidity. 

"Wliat we must recognize is that we are con- 
fronted today n^t with a dollar shortage but with 
a capital shortage. The demand for capital is 
high in all countries, both industrial and under- 
developed. But, on a comparative basis, there is 
in the underdeveloped countries a strong and 
pressing demand for long-term funds from coun- 
tries with high savings to supplement their own 
savings, so as to accelerate the pace of economic 
development. This demand for capital need not 
be satisfied by any one currency but by all con- 
vertible and usable currencies. We in the United 
States will not shirk any part of our responsibility 
to help in this situation. But T believe that ex- 
amination of the recent past shows tliat financing 
by the United States has exceeded the amount of 
its net exports of goods and services and that 
other industrial countries have generally financed 
less than their exports of goods and services. 



536 



Department of State Bulletin 



There must be a reorientation of the policies of 
the earlier postwar period and a new determina- 
tion by all the industrial countries to face the 
common obligation to share in the task of provid- 
ing capital to the less developed parts of the free 
world. 

Turning now to the domestic side, I am very 
glad to be able to report, as does the annual report 
itself, that the year since we met in New Delhi has 
been one of continued economic upsurge in the 
United States. By June, just prior to the steel 
strike, industrial production had reached 6 percent 
above the prerecession peak. Gross national prod- 
uct is currently ruiming about $485 billion per 
annum compared with $442 billion in the year 
before the recession. Moreover, this dramatic and 
rapid increase in economic activity has been 
achieved with substantial price stability. Since 
the beginning of recovery in May 1958, the broad 
index of wholesale prices has shown no net in- 
crease, while consumer prices have risen only 1 
percent. 

The fiscal position of the United States, which 
is a major factor in our attempts to stabilize 
prices, has shown a notable improvement. Fol- 
lowing the large deficit of $121^ billion in the 
fiscal year ended June 30, 1959, the United States 
Government has made great efforts to restore a 
balanced budget in the current fiscal year. My re- 
port to you on the state of affairs in the United 
States would be less optimistic were I not able to 
state that this objective appears to have been sub- 
stantially attained. In this achievement we have 
faced the difficulties common to many countries 
in the world today, who must postpone or curtail 
some government expenditures in order that fi- 
nancial stability may be maintained. 

The credit and monetary policies of the United 
States, including our firm policy of maintaining 
unchanged the present official price of gold, have 
also been directed toward promoting financial 
stability in the interest of sustainable economic 
growth. The present business boom, which has 
carried production, employment, and incomes to 
record high levels, has resulted in a rising tide 
of demand for bank credit from many soui'ces. 
This has been reflected, of course, in sharp in- 
creases in market rates of interest and in appro- 
priate increases in rediscount rates. Yet a large 
volume of new bank funds has been made available 
to finance the growing needs of business, as in- 



dicated by an increase of $91/^ billion in loans and 
investments of all banks during the 12 months 
through August and an increase in the money 
supply during that period of $4 billion. 

In summary I can say that the outlook for the 
economy of the United States is good. We have 
contained the inflationary pressures which were 
running strong a year ago. Our budget position 
is sound. The purchasing power of the dollar 
has held virtually unchanged over the past year. 
Output and employment and incomes are at record 
high levels. Expanding world markets provide 
us an opportunity to increase our exports. 

In all these vital matters of fiscal affairs, cur- 
rency stability, expanding output, and a sound 
balance of payments, we in the United States Gov- 
ernment support the same sound position as do the 
governments represented around tliis table. Firm 
policies and vigilant and energetic execution of 
those policies are essential. The task of achieving 
sustainable growth and reasonable currency sta- 
bility is never completed. 



STATEMENT BY MR. DILLON ' 

This is, I believe, one of the most important 
meetings of the governors of the AVorld Bank since 
the Bretton Woods Conference 15 years ago. We 
have the privilege of recording a year of outstand- 
ing progress, during wliich member governments 
have taken action to double the Bank's financial re- 
sources. And we have before us an opportunity to 
broaden further the lending facilities available to 
the Bank so that it may play its part more effec- 
tively in the historic struggle of man against pov- 
erty and disease. 

In the year that has passed since we met at New 
Delhi, it has become clear that the period of post- 
war economic reconstruction has drawn to a close. 
As a consequence, virtually all of the industrial- 
ized part of the free world is now in a position to 
make resources increasingly available for the pur- 
pose of assisting the development of the less 
developed areas. Of equal or even greater impor- 
tance is the evidence of a growing determination 
among the peoples of the industrialized nations to 
provide these resources in adequate measure. For 



' Made on Sept. 30 during discussion of the annual re- 
port of the World Banli. Mr. Dillon is U.S. Alternate 
Governor of the IBRD. 



Ocfober 7 9, 7 959 



537 



all of us recognize, as we must, that, in the impera- 
tive struggle for economic development, the pres- 
ervation of civilization itself — the freedom, 
dignity, and well-being of the individual — is at 
stake. 

Progress Achieved by World Bank 

The notable progress achieved by the Bank over 
the past 12 months is reflected in the Bank's report 
and in President Black's remarks to us yesterday 
[September 29]. 

Early this year the governors recommended that 
member countries increase the authorized capital 
of the Bank by more than 100 percent. By Sep- 
tember the legislatures of enough member govern- 
ments had taken favorable action on this proposal 
to bring the recommended increase into effect. 
The swiftness of this response is a remarkable vote 
of confidence in the soundness of the Bank's op- 
erations, as well as a concrete demonstration of the 
willingness of member countries to assist in the 
development of the less developed areas. 

The Bank has continued in 1959 to maintain the 
high rate of development lending reached in 
1958 — more than $700 million annually- — and has 
broadened the geographical scope of its operations 
to include three countries in which it had not pre- 
viously lent — the Republic of Gabon in French 
Equatorial Africa, Malaya, and Sudan. The 
Bank's bonds have gained even wider public ac- 
ceptance: public offerings made for the first time 
in Germany and Belgium were heavily oversub- 
scribed. The Bank has also successfully intensi- 
fied its efforts to associate private lending with its 
operations, both through the sale of a portion of 
its portfolio to private investors and through 
"joint operations" in which borrowers draw capi- 
tal from the Bank and tlie private capital market 
at the same time and often for the same project. 
The Bank has increased its technical assistance to 
member countries. And it has cooperated with 
the United Nations Special Fund and the Euro- 
pean Investment Bank in their early operations. 

For all of these accomplishments, we may com- 
pliment the Bank's management and staff and ex- 
press the hope that they will continue to give 
vigorous and inspired leadership to the chief in- 
ternational lending institution of the free world. 

I am sure we can all join with our chairman in 
congratulating tlie Bank's members on tliis 10th 
anniversary of the presidency of Eugene Black. 



538 



The high standing of the Bank today is in no small 
measure a personal tribute to President Black, 
whose outstanding leadership over the past 10 
years is a matter of universal acknowledgment. 

I think we may appropriately in this forum also 
extend our thanks to the Managing Director of the 
International Monetary Fund, Per Jacobsson, for 
the good work of the Fund during his tenure of 
office in contributing to the basic economic health 
of the less developed areas and hence to their eco- 
nomic development. 

At New Delhi last year I welcomed on behalf of 
the United States the efforts of the Bank's man- 
agement to help arrange an equitable division of 
the waters of the Indus Basin between India and 
Pakistan. Thanks to these good offices, negotia- 
tions have progressed to the point where ultimate 
success now appears to be in sight. Accordingly, 
the Government of the United States has informed 
the Bank that it is prepared to consider participa- 
tion in financial assistance to the Indus waters 
project, subject to agreement between the countries 
and to the availability of congressional appropria- 
tions. 

Also during the past year the United States, in 
a further expression of the historic relations 
among the American Republics, has joined in 
drafting the charter of the Inter- Ajnerican De- 
velopment Bank, which we anticipate will begin 
operations early in the new year.* It will assist 
the Latin American countries with their develop- 
ment efforts and help to provide the developmental 
capital they require. We look forward to co- 
operative working relationships between the Inter- 
American Development Bank and the World 
Bank, as well as with our own national lending 
agencies. 

With few exceptions the industrialized coun- 
tries have been successful in achieving financial 
and monetai-y stability. However, many of the 
loss developed countries have continued to be 
faced by serious inflation. Certain of these coun- 
tries have courageously attacked the problem with 
broad stabilization measures, in which tliey were 
aided by substantial financial support from tlie 
International Monetary Fund and from individ- 
ual member countries, including the United 
States. It has been our observation that a very 
significant factor in the success of these stabiliza- 



' BuLLKTiN of June 8, 1959, p. 849. 

Department of Stale Bulletin 



tioii progninis is the degree to which domestic 
economic development efforts are soundly con- 
ceived and efficiently administered. Here is an 
area in winch the World Bank can and should 
play an increasingly active and useful role. Ac- 
cordingly, we would welcome action both by the 
Bank and borrowing countries so that the Bank's 
services ^\ould be more widely utilized than here- 
tofore in tills respect. 

International Development Association 

President Eisenhower and Secretary Anderson, 
in their welcoming addresses, have already stated 
on behalf of the United States our desire to see 
established, as an affiliate of the Bank, an Inter- 
national Development Association. As all of you 
know, the United States has provided member 
governments with an outline setting forth our 
ideas regarding the desirable structure, capitaliza- 
tion, and other aspects of this proposed new insti- 
tution. I will not repeat these ideas here. They 
will in any case be discussed by the Executive 
Directors who, in formulating their recommenda- 
tions, are being asked to take into account the 
views of all member governments. I would, how- 
ever, like to make certain additional observations 
on the anticipated role of the IDA in the interna- 
tional lending field. 

As we examine the formidable problems which 
face the less developed countries in overcoming 
the difficult economic conditions in which so many 
hundreds of millions of their people live today, 
we cannot help but be struck by this inescapable 
fact : If these countries are to be successful in their 
efforts, they must have access to capital from the 
industrialized countries over and above that which 
can be safely lent to them on normal banking 
terms or provided by private enterprise. The 
Bank itself has had to turn down many desirable 
development projects which could fully meet its 
technical requirements because, as a borrower in 
the private capital market, its loans must invar- 
iably meet high financial standards. The IDA is 
designed to assist the Bank in meeting this prob- 
lem by providing funds contributed by member 
governments which can be lent on flexible tenns, 
including repayment in whole or in part in the 
currency of the borrower. The availability of 
even a marginal amount of such funds may often 
mean the difference between success or failure of 
a worthwhile project. 



I would like to invite special attention to one 
aspect of the proposal we have put forward for 
an IDA. This is the suggestion that the IDA 
miglit use, in conjunction with its loans of con- 
vertible currencies, a certain amount of the so- 
called "local currencies" which have accumulated 
under our Agricultural Trade Development and 
Assistance Act, known popularly as P.L. 480. 
Any amounts of these currencies made available 
to the IDA would, of course, be over and above 
the capital subscription of the United States. 
Our thought is that such currencies might be 
used to meet the local costs of some of the proj^ 
ects financed by the IDA or, in appropriate cases, 
to pay for items related to IDA development proj- 
ects which are to be imported from a country 
whose local currency is involved. The total 
amount of such local currencies which might be 
helpful to the IDA is difficult to estimate since 
there are recognized limitations on their uses. In 
any event deposits of local currencies would be 
made to the account of the IDA only after full 
agreement among the IDA, the United States, 
and the country whose local currency would be 
released to the IDA. 

The IDA is a new concept in international 
lending institutions. It is important, therefore, 
that the charter of the IDA leave a substantial 
measure of discretion to the institution itself to 
determine how its funds can best be spent and 
on what terms. We would expect that the high 
technical standards of the World Bank would 
apply to loans made by the IDA. However, it 
maj' be appropriate in some circumstances for 
the IDA to consider, for example, financing pilot 
projects in some fields of social overhead of a 
type which contribute to productivity and devel- 
opment but which are not financed by the World 
Bank. This is an area in which expenditures in 
the currency of the borrower are likely to be 
required, and this could be one of the uses of 
the local currencies I mentioned eai'lier. In 
developing the pattern of its operations, we would 
expect tlie IDA to maintain the closest working 
relationships with the representatives of the less 
developed comitries so as to insure that its efforts 
will be directed to meeting the most important 
development ne«ds in the best ways possible. 
Finally, we look upon the IDA as a proposal to 
increase the total flow of development capital to 
the less developed areas and not as a substitute 



October 19, J 959 



539 



for bilateral assistance from the industrialized 
countries. 

It is our strong hope that the concept of the 
IDA will commend itself to the members of the 
Bank and that at our present annual meeting 
the governors of the Bank will take action to 
authorize the Executive Directors to undertake 
the preparation of articles of agreement. This 
would be accomplished by adoption of the resolu- 
tion which the United States has introduced in 
the Procedures Committee. 

In his statement to the International Monetary 
Fund, Secretary Anderson has commented on 
the international payments position of the United 
States. This position of large deficits during the 
past 18 months has, of course, been matched by 
large surpluses elsewhere in the world, surpluses 
which have been heavily concentrated in the other 
industrialized countries wliose resei-ves of gold 
and foreign exchange have steadily increased. 

An important element in this situation has 
been the fact tliat the increase in the capacity 
of other industrialized countries to export to the 
less developed areas has not as yet been accom- 
panied by a comparable increase in their exports 
of capital to these areas, whereas the United 
States has continued to maintain a large outflow 
of capital to these areas for both development 
and assistance purposes. As a result, the United 
States has continued to provide financing for 
imports into the less developed areas from other 
industrialized countries which many of the latter 
are now in a position to finance themselves. 

The logic of the situation is, I think, clear, and 
we would hope that other industrialized countries 
in a position to do so will find methods of increas- 
ing their long-term development assistance to 
countries in need of capital. Through efforts 
of this kind we should be able botli to meet in 
larger measure the needs of tlie less developed 
areas and contribute to better balance in world 
trade and payments. 

In closing, I wisli to take note of the addition to 
our membership of Laos and Portugal, to which 
we extend a warm welcome. 



STATEMENT BY MR. UPTON' 

In his annual report the President of the Cor- 
Ix>ration has succinctly stated the concept wliich 
has been central to the entire development of the 



IFC, that is, the importance of private enterprise 
and its vital role in the economic growth of the less 
developed nations. The development of my own 
country and that of the other industrialized coun- 
tries of the free world is testimony to the sound- 
ness of this age-old principle. In an era in which 
the continued existence of governments emphasiz- 
ing tlie freedom and dignity of the individual 
may significantly depend on the vitality of indi- 
vidual motivation whicli such governments inspire, 
we do well to reaffirm our conviction in the dynam- 
ic concept of private enterprise. The existence of 
the Corporation is itself an indication of our mu- 
tual judgment that the creative forces involved 
in private undertakings are a vital factor in 
growth and development. It is therefore a re- 
assuring confirmation of our ideas that private 
enterprise has participated in the Corporation's 
projects with an amount of risk capital more than 
triple the sums invested by the Corporation itself. 

There is much concrete activity we can welcome 
in the 12-month period covered by the report be- 
fore us. President [Robert L.] Garner has sug- 
gested that the best measure of IFC's usefulness 
should be the nmnber of enterprises which it 
helps to finance and the volume of private capital 
participating in the financing, rather than the ab- 
solute amount of IFC funds invested. By either 
of these measures the year ended June 30, 1959, 
was one of significant activity. The number of 
enterprises to which commitments for financing 
were extended rose from 9 to 21. These enter- 
prises were located in 11 countries around the 
world, more than double the number of countries 
in which IFC had invested a year ago. The latter 
fact is of special significance because of what 
might be called the "demonstration impact" of 
the Corporation's first project in a country. That 
is, the first investment frequently results in other 
projects in the country or neighboring countries 
being quickly brought to the Corporation. 

By the more conventional criterion of total funds 
invested, the Corporation has also made commend- 
able progress. The level of net commitments rose 
during the year from $9.5 million to $19.8 million, 
and a substantial number of new projects are un- 
der consideration. We may reasonably anticipate, 
therefore, that the recent accelerated rate at whicli 



" Made on Sppt. 30 duriiiK discussion of the annual re- 
port of the InternationnI Finance Corporation. Mr. Up- 
ton is U.S. Temporary Alternate Governor of the IFC. 



540 



Department of Slate Bulletin 



the Corporation is investing will continue to gain 
momentum. I think we can all subscribe to the 
hope that in the not too distant future the Presi- 
dent will be able to infoi-m us that the bulk of 
the Corporation's assets have been put to work in 
productive investments in member countries. 

Certainly it is not too early to give serious 
thought to the problem of developing channels 
tiirough which the Corporation's assets can be 
made to revolve. Some of the investments in its 
portfolio should, with some additional seasoning, 
begin to be attractive items to potential purchas- 
ers. In this connection an important development 
is that the Corporation has been able to secure par- 
ticipation by private financial institutions in sev- 
eral of its investments. The relationships which 
the Corporation is developing with these financial 
institutions will be of great value, not only as 
an additional source of funds to the borrowers 
from the Corporation, but also to the Corporation 
itself as a possible future market for sales from its 
portfolio. 

In noting the progi-ess of the past year let us 
not, however, be complacent about the magnitude 
of the task ahead. Additional techniques remain 
to be worked out which will make the resources of 
the Corporation available in the less developed 
countries to private business enterprises which 
might seem small by the standards of many ad- 
vanced countries. An important job of explaining 
the functions and policies of the Corporation in 
countries where no IFC investments have yet been 
made is still to be accomplished, even though de- 
termined efforts have already been put forward in 
that direction. 

After building a sound foundation the IFC is 
now moving forward with rapidly increasing mo- 
mentum. I extend to the Corporation our con- 
gratulations and our best wishes for accelerated 
progress in its chosen field of stimulating mvest- 
ment in private enterprises. 



RESOLUTION ON INTERNATIONAL DEVELOP- 
MENT ASSOCIATION '° 

Resolved : 

That with respect to the question of creating an Inter- 
national Development Association as an affiliate of the 
Bank, the Executive Directors, having regard to the views 



expressed by the Governors and considering the broad 
principles on which such an Association should be estab- 
lished and all other aspects of the matter, are requested 
to formulate articles of agreement of such an Association 
for submission to tlie member Governments of the Bank. 



United States and Italy Reaffirm 
Their Close Ties 

Antonio Seffni, President of the Council of Min- 
isters of the Italian Republic, ami Giuseppe Pella, 
Minister of Foreign Affairs, made an official visit 
to Washington September 30 to October 3 and then 
spent 2 days at Neiu York before their departure 
for Italy on October If.. Following are texts of 
two joint communiques released after their talks 
\oith President Eisenhower and Secretary Herter, 
together with an exchange of greetings at the 
Washington National Airport upon their arrival 
and a list of the members of the official party. 

JOINT COMMUNIQUE, SEPTEMBER 30 

White House press release dated September 30 

The President of the United States, the Presi- 
dent of the Council of Ministers of the Italian Re- 
public, the Minister of Foreign Affairs of the Ital- 
ian Eepublic and the Secretary of State met at 
the White House today and held two intensive dis- 
cussions covering a wide range of subjects which 
are of mutual concern and interest to their two 
countries. The talks took place in a spirit of close 
friendship and mutual comprehension and were 
characterized by their frankness and their fullness. 

In amplification of their meeting in Paris on 
September 3,' the President and the Prime Min- 
ister reviewed in detail the current world situa- 
tion. They discussed the developments of the re- 
cent visit to the United States of the Chairman of 
the Council of Ministers of the U.S.S.R. and 
agreed that this exchange of views has proved use- 
ful in the cause of peace. 

The President and the Prime Minister and the 
Minister of Foreign Ailairs and the Secretary of 
State restated their belief that all possible efforts 
should continue to be made to achieve a reduction 
of armaments throughout the world, within a 
framework of adequate controls and safeguards. 



'° Adopted by the governors of the IBRD on Oct. 1. 
Ocfofaer J 9, 7 959 



' Bulletin of Sept. 21, 1959, p. 412. 



541 



The President expressed his gratification for the 
inchision of Italy in the Committee of the Ten 
Powers which at the beginning of next year will 
handle the vital problem of disarmament.^ He 
stressed the contribution which Italy may be ex- 
pected to make in this field and added that the 
United States Government will continue its sup- 
port of Italian participation in the discussions of 
major world problems. 

The President and the Prime Minister reaf- 
firmed the dedication of their two countries to the 
United Nations, and to the principles on which 
it was founded. They also agreed that the present 
international situation does not yet permit relaxa- 
tion in Western defense efforts. They reiterated 
their firm conviction that the combined strength 
and coordinated action of the free and sovereign 
countries in the North Atlantic Alliance are vital- 
ly necessary to assure peace and security and to 
protect the right of their people to live in free- 
dom under Governments of their own choosing. 
They declared that the North Atlantic Alliance 
will remain the cornerstone of their foreign 
policies. 

The President and the Secretary of State ex- 
pressed the full recognition of the United States 
for the contribution which Italy is making in the 
development of closer political and economic as- 
sociation between the countries of Europe, and re- 
affirmed the support of the United States for such 
a policy. 

The President and the Prime Minister also dis- 
cussed the principles which guide the cooperative 
efforts of the free nations in their programs for as- 
sistance to the underdeveloped countries. 



JOINT COMMUNIQUE, OCTOBER 2 

Press release G95 dated October 2 

Following the two meetings which were held on 
September 30 between the President of the United 
States, the President of the Council of Ministers 
of the Italian Republic, tlie Minister of Foreign 
Affairs of the Italian Republic and the Secretary 
of State of the United States, further intensive and 
detailed discussions have been carried on at the 
Department of State between the Prime Minister, 
Foreign Minister Pella and the Secretary of State. 
These talks have been (conducted in an atmosphere 
of great cordiality and understanding. 



' For ))ackground, see ibid., Sept. 28, 1959, p. 438. 
542 



The Prime Minister, the Foreign Minister and 
the Secretai'y of State reviewed in their meetings 
of two days all the important issues of concern 
to both Italy and the United States. They re- 
affinned that the relations between the United 
States and Italy are based on mutual respect, 
friendship and confidence and that at the present 
time thei'e are no bilateral problems of major 
significance between them. 

The Prime Minister, the Foreign Minister and 
the Secretary of State considered at length the 
need for international cooperation to accelerate 
and coordinate the economic growth of the under- 
developed coimtries. They agreed that all ap- 
propriate ways and means should be sought to 
achieve this end. 

The Prime Minister, the Foreign Minister and 
the Secretary of State reviewed in further detail 
the recent visit to the United States of the Chair- 
man of the Council of Ministers of the U.S.S.R. 
They also discussed in detail the question of 
Berlin. 

The Prime Minister, the Foreign Minister and 
the Secretary of State confirmed that complete 
understanding exists between Italy and the United 
States on the vital and defensi\'e role which the 
North Atlantic Alliance has played and will con- 
tinue to play in assuring the peace and security 
of the free and independent states. They recog- 
nized that in its search for peace, the West must 
remain united and vigilant. 

They agreed in supporting the development of 
ever closer economic and political association be- 
tween the countries of the European Economic 
Community. The Secretary of State concurred 
in Italy's views concerning this association. 

The Prime Minister, the Foreign Minister and 
the Secretary of State reaffirmed the strong desire 
of their two countries to seek a reduction in the 
world burden of armaments. They agreed, how- 
ever, that such a reduction can only be achieved 
with adequate safeguards and controls. 

The Prime Minister, the Foreign Minister and 
the Secretary of State expressed full satisfaction 
at the results of these discussions. They re- 
affirmed that these personal consultations are of 
paramount value to their two countries. 

The President and the Prime Minister noted 
with particular satisfaction the opportunity af- 
forded by this visit to carry on the consultations 
which are a continuing and regular process in 

Department of State Bulletin 



the close relations happily existing between the 
United States and Italy. 

Tlie Prime Minister and the Foreign Minister 
will continue their discussions with the Secretary 
of State and other senior officials of the United 
States Government. 



EXCHANGE OF GREETINGS 

Press release G8S dated September 30 
Vice President Nixon 

Mr. Prime Minister, Mr. Foreign Minister, and 
members of your party, we are very honored that 
you have paid this visit to our country. May I 
say that we cannot control our weather, but I 
think the weather that we have gives me an op- 
portunity to indicate the present nature of the 
relations between our two countries. The weather 
is turbulent, gloomy, and threatening, but we are 
happy to say that the relations between Italy and 
the United States are warm, friendly, and hope- 
ful. "VVe know that the conversations you will 
have with our President and with other repre- 
sentatives of our Government will contribute not 
only to closer relations between our two countries 
but also to the development of policies which will 
bring peace and prosperity for all the peoples of 
the world. In these critical times it is vastly 
important that we recognize that the solution of 
our problems requires the best thinking of all the 
leaders of the world. And for that reason we 
deeply appreciate your coming to us and sharing 
your experience and your counsel with our 
leaders. 

Prime Minister Segni 

I am very happy to return to the United States 
after so many years to have this opportunity to 
meet with the President of the United States 
and high officials of the American Government 
and those who direct policies of this great, 
friendly, and allied nation. 

The bonds of old friendship which unite Italy 
and the United States fomi a solid and broad 



basis for reciprocal underetanding. On such a\ 
basis it will certainly be very easy for us to dis- 
cuss the problems of a political, economic, and 
social nature which are of interest to both coun- 
tries and those of broader scope which refer to 
maintaining world peace. Our relations are 
excellent. It is our intention to make the present 
fruitful collaboration which exists between our 
two countries ever closer and more effective in 
the service of peace with security, with freedom, 
and with justice. We are certain that in so doing 
we will have the warmth and support of the 
friendship of the American people. 



IVIEMBERS OF OFFICIAL PARTY 

The Department of State announced on Sep- 
tember 28 (press release 679) that the following 
persons would accompany the President of the 
Council of Ministers of the Italian Republic and 
Mrs. Segni during their visit in the United 
States : 



Giuseppe Pella, Minister of Foreign Affairs 

Manlio Brosio, Ambassador of Italy 

Mrs. Brosio 

Carlo Alberto Straneo, Director General for Political 
Affairs, Ministry of Foreign Affairs 

Federico Sensi, Director, International Relations Sec- 
tion of the Prime Minister's Secretariat 

Alberto Jezzi, Press Officer, Ministry of Foreign Affairs 

Paolo Molajoni, Vice Chief of Cabinet, Ministry of 
Foreign Affairs 

Comdr. Emanuele Cossetto, Press Attach^, Prime Minis- 
ter's Secretariat 

Mario Costa, the Prime Minister's private secretary 

Giuseppe Giunghi, personal physician to the Prime 
Minister 

James David Zellerbach, American Ambassador to the 

Italian Republic 
Mrs. Zellerbach 
Wiley T. Buchanan, Jr., Chief of Protocol of the United 

States 
Mrs. Buchanan 

Clement E. Conger, Deputy Chief of Protocol 
Robert MoClo.skey, press officer, Depnrtnient of State 
Lt. Col. Vernon A. Walters, American interpreter 
Mrs. Sydney Mellen, interpreter. Department of State 
John DiSciuUo, interpreter, Department of State 
Paul Cassady, Security Officer, Department of State 



October 7 9, J 959 



543 



Reflections on the Khrushchev Visit 



hy Andrew E. Berding 

Assistant Secretary for Public Affairs ^ 



This is a time of many important visits by chiefs 
of state and heads of government to Washington. 

We are proud to have with us now the Prime 
Minister of Italy, Antonio Segni, and the Foreign 
Minister, Giuseppe Pella,^ both of whom I had 
the pleasure of knowing during the early Marshall 
plan days in Italy. His conference yesterday with 
President Eisenhower is in the tradition of the 
ever stronger influence of Italy in foreign affairs. 
Testimony to this is the fact that Italy is one of the 
members of the 10-nation committee which will en- 
gage in vital disarmament negotiations some time 
after the beginning of the year.^ Italy's strategic 
position in the Mediterranean, her sense of coop- 
eration, the energy, industry, and ingeniousness of 
her people, justify Italian participation in the dis- 
cussions of major world problems. Our own re- 
lations with Italy are close and constructive. 
Prime Minister Segni's visit will solidify them 
still more. 

Later tliis month Washington will receive the 
welcome visit of President Lopez Mateos of 
Mexico, to strengthen still further the friendship 
between our two countries. Toward the end of 
the month we shall cordially greet the President 
of the newest coimtry on earth — Sekou Toure of 
Guinea. 

But without doubt the most important state visit 
of recent times ended 4 days ago, when Chairman 
Khrushchev winged out over the Atlantic to re- 
turn to Moscow.* 



' Address made before the League of Republican Women 
of the District of Columbia at Washington, D.C., on Oct. 
1 (press release 692). 

" See p. rAl. 

' For background, see Bulletin of Sept. 28, 1959, p. 438. 

* lUd., Oct. 12, 1959, p. 499. 



Value of Visit and Talks 

Now it may be of interest to draw a few conclu- 
sions and make a few comments on this visit by one 
of the outstanding personalities of our time. 

To begin with, the visit, without question, was a 
plus. It was a plus in both its aspects — first, the 
trip itself in the United States; second, the talks 
with President Eisenhower. During these talks 
I had the honor of being at Camp David and 
Gettysburg. 

As to the visit. Chairman Khrushchev certainly 
got a better, clearer idea of America and Amer- 
icans than he had had before. He saw the 
strength of our economy, the high living stand- 
ards, the freedom of expression, the diversity of 
our people. He finally acbnitted that people could 
live very well indeed under what he calls capital- 
ism. He also recognized that our Government 
and our people are virtually as one when it comes 
to foreign policy. He acknowledged that Amer- 
icans generally want peace. He recognized that 
only 10 percent of our gross national product goes 
into armaments as compared with a much larger 
percentage in the Soviet Union and that therefore 
it is illogical to think that our people are afraid 
that disarmament would bring economic collapse. 
This should help to remove from the pages of 
Pravda the specter of American capitalists evilly 
conniving at war in order to increase their profits. 

As to the talks, they led, among other things, 
to the lifting of the threat on Berlin. This was 
confirmed in the statement day before yesterday 
[September 29] by Chairman Khrushchev. They 
also led to certain agreements, such as tliose on the 
resumption of negotiations to settle the Soviet 
lend-lease debt and a considerable expansion of 
exchanges of pei-sons and information. To use 
the expression in yesterday's communique on the 



544 



Department of State Bulletin 



President's meeting with Prime Minister Segni, 
"this exchange of views has proved useful in the 
cause of peace." 

Perhaps the most important gain from the talks 
is the intangible one — the establishment of per- 
sonal contact between the President of the United 
States and the Chairman of the Council of Minis- 
ters of the Soviet Union. The last time the Presi- 
dent saw Chairman Khrushchev was at the 
summit conference in 1955. But then the chief 
Soviet representative, in rank at least, was Mr. 
[Nikolai] Bulganin, and there were two other 
lieads of govermnent present. This time the 
President and the Chairman were together for 
many hours, either alone with the interpreters or 
with Secretary Herter, Foreign Minister [Andrei] 
Gromyko, and others. 

They had a good opportunity this time to ex- 
change views and to get an estimate of each other's 
thinking and way of thinking. They had a good 
chance to evaluate each other's personality. 

Their conversations, whether private or in a 
larger group, were conducted quietly and objec- 
tively. Neither one hesitated to put forward his 
position directly and cogently. The overall tone 
was good. 

Question of Berlin 

There is one very revealing index of the rela- 
tionship achieved. This relates to the unwritten 
agreement the President and the Chairman 
reached with regard to the fact that the reopened 
negotiations on Berlin, while not to be prolonged 
indefinitely, would not have a fixed time limit on 
them. Although tliis language was not in the 
communique, the President and Mr. Khrushchev 
agreed that the President would make a statement 
using this language and tlien Mr. Khrushchev 
would make a statement confinning it. 

This procedure was faithfully carried out with- 
out delay. The agreement itself was perhaps the 
most important development at Camp David. 

A large portion of the conversations between 
the President and the Chairman was devoted to 
the Berlin question. 

As the President indicated at his press con- 
ference on Monday [September 28], the situation 
of West Berlin is unnatural. How could it be 
otherwise when you have a city divided into two 
parts, with one part under one economic system, 
the other under another, and with the western part 

October 79, 7959 

526330—59^ 3 



of the city, with all its thinking oriented toward 
the west, lying 110 miles inside the territoi-y of 
East Germany? Some conclusions have been 
drawn that, because the President recognized the 
extraordinary nature of this situation, we would 
rush headlong to settle it and thereby sacrifice 
Western interests in West Berlin. Nothing could 
be farther from the truth. 

We remain convinced that the problem of Ber- 
lin can best be resolved by the reimification of 
Germany. Until this reimification takes place, 
we have certain rights and obligations arising 
from our military victory in World War II. 
Among these are the right to maintain military 
forces in the sectors of Berlin allotted to the West- 
ern Allies after tlie war and the obligation to pro- 
tect the right of the people of West Berlin to live 
in f I'eedom imder the social system they choose for 
themselves. We hope that Mr. Khruslichev's con- 
firmation that no time limit is to be placed upon 
negotiations leading toward a more stable ar- 
rangement in Berlin will provide a better atmos- 
phere for a reasonable approach to this problem. 

Wliile Mr. Khrushchev's visit here, and his talks 
with President Eisenhower, certainly improved 
the atmosphere in which Soviet relations with the 
United States and the free world are conducted, 
they also made it clear once more that there are 
great differences between us. Those differences 
remain. Most importantly, the Soviet Premier 
took every occasion to tell us in his inimitable 
fashion, and to demonstrate to us by his actions, 
that he and his comrades in the leadership of the 
Soviet Communist Party have no intention what- 
soever of withdrawing, or retreating from, their 
basic challenge to us and to the system of freedom 
by which we govern ourselves. I feel that Mr. 
Khrushchev's trip produced an increased aware- 
ness on the part of the American people of the 
profoimd nature of this challenge. 

U.S. Adherence to Principle of Peace With Justice 

On several occasions Chairman Klirushchev 
stated in essence that, although the President and 
the gi'eat majority of Americans want peace with 
the Soviet Union, there are certain groups and in- 
dividuals in the United States working against 
peace. 

It is, of course, obvious and desirable that in a 
free society there should be diversity of views. 
And naturally there is a diversity of views in the 



545 



United States as to Mr. Khrushchev himself, the 
results of his trip, and our policy toward the 
Soviet Union. 

But I think I can categorically say this: No 
American in his right mind wants war with the 
Soviet Union. All Americans without exception, 
from the President on down, want peace with the 
Soviet Union. We are intelligent enough to know 
that, with modem weapons, in a new war there 
would be no victors, only victims. 

At the same time we will not deviate from our 
principles. The peace we seek to maintain must 
be an honorable peace, based on justice. We will 
not barter away the freedom of other people, such 
as the more than 2 million men, women, and chil- 
dren of West Berlin. 

We also want- — sincerely want — an end to the 
cold war. I believe this is true of all Americans. 
We should infinitely prefer to discard all manifes- 
tations of cold war and live in real friendship with 
the Soviet people. We want such friendship. 
This is as true today as it was on June 26, 1951, 
when the American people said through their Con- 
gress in a joint resolution that "the Congress of 
the United States reaffirms the liistoric and abid- 
ing friendship of the American people for all 
other peoples and declares — that the American 
people deeply regret the artificial barriers which 
separate them from the peoples of the Union of 
Soviet Socialist Republics, . . . and that, although 
they are firmly determined to defend their free- 
dom and security, the American people . . . invite 
the peoples of the Soviet Union to cooperate in a 
spirit of friendship. . . ." And we believe the 
Soviet people want such friendship. 

Mr. Khrushchev sought during his trip to sell 
to the American people the idea of peaceful co- 
existence. This phrase "peaceful coexistence" 
has a beguiling appearance, and at first glance 
everyone ought to be in favor of it. Many people 
in many parts of the world have, in fact, indi- 
cated their acceptance of it. 

As we understand the Soviet definition of 
"peaceful coexistence," it means a peaceful living 
together side by side of the Communist bloc and 
the free world. 

If that is what they mean by it, we have to say 
at once, "That is not good enough." In the first 
place, we do not feel that the world sliould be 
divided into blocs, even though they coexist in 
peace. We believe that nations should be truly 



independent and that nations, rather than blocs, 
should be at peace one with another. 

Second, coexistence is a bare-bones, negative 
state of affairs. Just as human beings do not 
solely coexist but live and cooperate for their 
mutual development, so nations should not solely 
coexist but live and cooperate for their mutual 
development. 

Acceptance of peaceful coexistence has the ef- 
fect of solidifying the status qiw, with the Soviet 
Union dominating the Communist bloc. We do 
not wish to contribute to the perpetuation of this 
status quo. 

And so, as to "peaceful coexistence," our policy 
is, "We need sometliing better than peaceful co- 
existence, something more in keeping witli the 
aspirations of mankind." 

Soviet Economic Competition Welcomed 

Chairman Khrushchev repeatedly challenged us 
to competition in production, saying that the So- 
viet Union would overtake us by 1970. We are not 
afraid of this competition. We welcome it, if it 
means bettering the condition of the people of the 
Soviet Union. 

Yet I camiot help but draw the conclusion that 
what Chairman Khrushchev saw of the economic 
way of life in this country — tlie manifestly high 
standard of living of our people and the vitality 
of our economy — has weakened if not destroyed 
his expressed conviction that the Soviet Union 
would overtake us by 1970. 

He may proclaim this more, but he believes it 
less. 

U.S. Spiritual Values Unchallenged 

There was one challenge that Chairman Khru- 
shchev did not deliver, and that was in the field of 
spiritual values, human dignity, and human 
freedom. 

I think that, if you carefully read Sir. Khru- 
shchev's speeches and off-the-cuff comments, you 
will be struck, as I have been, by an emphasis 
that is deeply materialistic, to the exclusion of 
almost everytlung else. Even his references to 
the Bible were in this vein. He cited quotations 
and passages from the Scriptiu'es in the spirit of 
one who is determined to use anj^ text which will 
support his purpose. 

I could wish that he understood better the im- 
portance which wo in this country ascribe to the 



546 



Department of State Bulletin 



text : "Man does not live by bread alone." For in 
this idea resides a great deal of the essence of 
America. We Americans recognize that all men, 
everywhere, are linked by bonds which transcend 
the fates and fortunes of any individual or any 
isolated group. We reject the idea that tlie mere 
satisfaction of material needs, a competition in 
which one group sui-passes another or a struggle 
in which one group strives to impose its will on 
another, is the be-all and end-all of human 
existence. 

If Mr. Khrushchev correctly understood our de- 
votion to these ideas, he would understand that we 
are motivated not by a desire to oppose the legiti- 
mate aspirations of any other nation but by the 
belief that only a harmonious and peaceful ad- 
justment of interests, only honest cooperation on 
every level of human endeavor, can assure the 



peace we all are seeking. lie would know that 
that pursuit must not be confined to the attainment 
of purely material goals but must go beyond that 
to the striving for a meeting of minds which will 
enrich the lives and work of all men. 

If Mr. Khrushchev wishes to continue his ref- 
erences to the Bible, we can recommend to him the 
passages on the great Christian virtues of faith, 
hope, and charity. Certainly he will find that the 
American people will meet him more than half- 
way with regard to hope and cliarity. However, 
it is now up to Mr. Khrushchev to provide a firm 
basis for the development of faith in the possibil- 
ity of good relations with the Soviet Union. If 
the Soviet Government wishes to undertake the 
deeds that would provide a firm basis for such 
faith, it will find a receptive audience in the 
United States. 



Under Secretary Dillon's News Conference of September 30 



Press release 687 dated September 30 

Assistant Secretary Berding: I wanted to 
state the purpose of tlie press conference today, 
and I want to do that by reading the announce- 
ment we made yesterday, which gave you in 
advance the limitations on this press conference. 

"You will recall that at his news conference 
yesterday [September 28] the President referred 
questions concerning U.S.-Soviet trade relations 
arising out of Chairman Khrushchev's visit to 
Under Secretary of State Douglas Dillon. As a 
consequence, Mr. Dillon will hold a news confer- 
ence tomorrow" — that is today — "in the Depart- 
ment of State's auditorium. The conference will 
be confined strictly to U.S.-Soviet trade relations 
and related matters." ^ 

Now, we will also follow the usual rules for 
the Secretary's press conference here. We would 
request no correspondents to leave the room until 
after the conference is over, and, as foi' direct 
quotes, we would request you to wait until the 
transcript is out, which we will try to get as fast 



as possible, with the exception of the short open- 
ing statement that the Under Secretary will have 
and that will be available in mimeographed form 
as soon as this conference is over. 

Mr. Dillon has an appointment at a quarter 
to one; so we would hope to end this in about a 
half hour. We postponed this 45 minutes be- 
cause some of you wanted also to be in on the 
arrival of President Segni of Italy.^ 

Mr. Secretai-y. 

Under Secretary Dillon: I am glad to answer 
questions, but before starting we have a brief 
statement, which merely summarizes what hap- 
pened at Camp David and says : 

The discussions were general in nature, and the only 
specific agreement reached was an agreement to resume 
negotiations on a lend-lease settlement. We pointed out 
that an agreement on this issue would provide a better 
atmosphere aud would facilitate efforts to remove the 
remaining barriers to a full and free flow of peaceful 
trade. 

That statement' will be distributed when the 



' The announcement was read to news correspondents 
on Sept. 20 by Lincoln White, chief of the News Division. 



■ .See p. 541. 

' Also released separately as press release 683 dated 
Sept. 30. 



Ocfofaer J 9, 7959 



547 



meeting is over, and I will now be glad to answer 
questions. 

Q. Mr. Secretary, a year ago, when Mr. Khrw- 
shchev wrote the President aching for Ajnerican 
Government credits for trade, the Presidents 
anstver on that ^particular point toas negative.* 
Did the President give him any more encourage- 
ment at Camp David? 

A. Mr. Khrushchev made it very clear at Camp 
David that he was not asking for credits and that 
the Soviet Union did not need credits. However, 
he pointed out that private credits were available 
to the Soviet Union from practically all the other 
countries of the free world and he hoped that a 
similar situation might develop here which would 
remove what he felt was a discriminatory situa- 
tion. He wants to get rid of that, and he said he 
was thinking of some time in the future, if there 
was an opportunity for large orders of machinery 
or things of that nature, that could for economic 
reasons only be carried out through credit, be- 
cause the Soviet didn't have at the moment enough 
exports of the type that we were particularly in- 
terested in to make an even exchange. 

The Johnson Act 

Q. Mr. Secretary, would a change in the la/w he 
necessary to permit them to get credits? 

A. The Johnson Act, which was passed in 1934, 
prohibits credits to any country that is in default 
on its debts to the United States. That was alle- 
viated for countries which have become members 
of the World Bank and Monetary Fund — which 
the Soviet Union is not — so a change in that law 
would be necessary. 

Q. Even though the Soviets might clean up 
their obligations to the United States, would it 
still be necessary to change the law? 

A. If they clear up all their obligations, no. 
Theoretically, no change would be needed, but 
chances are that in practice there would have to 
be a change in the law if credits are to become 
legal. 

Q. Mr. Secretary, is the administration pre- 



' For texts of Cliairman Khrushchev's letter and Presi- 
dent Eisenhower's reply, see Bulletin of Aug. 4, 1958, 
p. 200. 



pared to recomtnend to Congress the repeal of the 
Johnson Act in the next session? 

A. We have taken no such decision. I would, 
however, thinlc that a solid agreement on a lend- 
lease settlement, whereby the Soviet Union agreed 
to make payments which would have to be sub- 
stantial in terms of the present Soviet trade with 
the United States — which isn't very large — would 
be a reason for trying to increase by all normal 
means a flow of free, peaceful trade. And it might 
be that in this context — it might well be that we 
would feel it reasonable to free private companies 
to make such credit arrangements as they felt 
they wanted to make with the Soviet Union. 

Q. Did you gather, Mr. Secretary, in your dis- 
cussions at Camp David, that they were sincerely 
interested in reaching a substantial agreement on 
a lend-lease settlement? 

A. We gathered this: Mr. Khrushchev is sub- 
stantially interested in removmg what he thinks 
are the discriminations in our present trade rela- 
tions — and such discriminations do exist, because 
the Soviet Union is specifically not granted most- 
favored-nation treatment. There is also specific 
legislation prohibiting the import of some Soviet 
fursv 

We pointed out that any change would require 
congressional action and that therefore it was in- 
evitably tied in with the whole state of our rela- 
tions with the Soviet Union and with public 
opinion. And we further pointed out to Mr. 
Khrushchev, as I mentioned in my opening state- 
ment, that an agreement on lend-lease that was 
mutually acceptable, that we thouglit was a fair 
agreement, would certainly help to create a better 
atmosphere and therefore we hoped we could work 
toward one, and Mr. Khrushchev said : "Of course, 
we'd be glad to." So, whether when we start our 
negotiations they'll really try to reach a fair 
agreement, one that we both can agree to, remains 
to be seen. But certainly we are glad to make the 
attempt. 

Q. Mr. Secretary, does the Johnson Act affect 
private credits? 

A. Yes, it affects private credits. 

Q. As well as Government? 

A. Yes. [That is, the Johnson Act affects pri- 
vate credits, and other provisions of law affect 
public credits.] 



548 



Departmenl of State Bulletin 



Q. ^Yhat is the position of prerevolutionary 
debts to the United States — Kerensky and czarist? 

A. The prerevolutionary debts that come under 
the Johnson Act are, as I understand it, only from 
the Provisional Russian Government — which I 
suppose would be tlie Kerensky regime — and I 
think the figure is something like 180 million, plus 
interest. 

Q. Mr. Secretary, when do you anticipate these 
negotiations on lend-lease to begin? 

A. On lend-lease, the decision was that we 
would arrange a time and place through diplo- 
matic channels. We have to do a little clearing 
of our own decks, but I think that we would be 
talking with the Soviet Embassy in the relatively 
near future to see if we can set a date. We hope 
that it could start within the next month or two. 

Q. Mr. Secretary, were the patent and copyright 
conventions discussed at all? 

A. Yes, without any great deal of progress. I 
pointed out to Mr. Khrushchev that, in dialing 
with our private companies, the question tliat they 
seemed almost more interested in than any other — • 
when it came to new processes, new machinery, 
things of tliat nature — were patent arrangements, 
royalty arrangements, that sort of thing, and that 
some sort of understanding would greatly facil- 
itate an increased flow of trade because it would 
make the private companies more ready to trade. 
Mr. Khrushchev seemed to feel that this could 
best be handled by direct negotiations in each in- 
stance between the Soviet Government and the 
private companies. We told them that if they 
wished to do so that was, of course, their choice. 
We merely pointed out they would have a much 
more difficult time in negotiations with companies 
and increasing trade if there was no such 
convention. 

Question of Expansion of Trade 

Q. Mr. Secretary, assuming that lend-lease ne- 
gotiations start in a reasonable time and go along 
reasonably , what if any expansion of Soviet- 
American trade could be done in the interim be- 
tween noio and a possible change of laws? 

A. Well, we feel that there is a large area for 
an increase in trade now. I think there is a gen- 
eral feeling that trade is limited, as far as our ex- 
ports are concerned, to a much greater extent than 



it really is. We have, for instance, given the 
Soviets in the past year technology on four or 
five different processes for making artificial fiber 
that they were interested in. I assume that, if 
they wanted to buy the madiinery to go with that 
teclmology, we would be glad to sell it to them. 
They never have asked to. So the real problem on 
a rapid growth of trade is more the other half of 
the two-way trade. There is not a great deal in 
the way of Soviet products which we know to be 
available, or the Soviets are willing to make avail- 
able, that are things we need or are not already 
getting under very satisfactory arrangements 
from such comitries as Canada, Turkey, India, et 
cetera. 

Q. Was there any discussion at all of the stra- 
tegic control list? Did he bring it up? 

A. Tliat was never mentioned. We talked on 
the basis of peaceful trade, and I pointed out, as 
I have just done, that there may have been some 
misunderstanding, that there was a broad field 
available, and that many of the thmgs wliich the 
Soviet Union had indicated it was interested in 
purchasing were available to them. 

Q. Mr. Secretary, did I understand you to say, 
in answer to the first question, that Mr. Khru- 
shchev said he did not want credits from the 
United States, on the contrary? 

A. He said he was not asking for credits from 
the United States and would not ask for credits, 
because that would be contrary to the dignity of 
the Soviet Union, that they did not need credits, 
and I think that is correct. The plans for their 
7-year plan, I am sure, are not based on getting 
credits from the United States. 

Q.. But then at a later stage you said something 
about the possibilities of credits being required 
for economic reasons. What is the hard fact with 
respect to credits? 

A. The hard fact is — and it comes back to the 
same problem I was just talking about — the Soviet 
economy, as far as I know, and I think it's gen- 
erally agreed by Soviet experts, is not in the posi- 
tion to offer us at this time really substantial 
quantities of goods that we want — that we aren't 
already getting from good sources and friendly 
sources of supplies. Therefore, if there is going 
to be a big increase of Soviet purchases here that 
camiot be immediately paid for by equivalent 



October ?9, 7959 



549 



Soviet exports, they can only be financed on a 
credit basis. 

Q. Wasn't that the point that the Premier made 
in his letter to the President a year or so ago? 

A. I think that at that time there was an indica- 
tion that such a large-scale increase in purchases 
from the United States might be something that 
was rather imminent. We get the impression now 
that they ai"e less interested in this in the imme- 
diate future — that this is now sort of a long-term 
idea — that maybe some day it woidd be a good 
idea — but that there is no immediate plan for any 
such dramatic increase in the placing of orders. 
I think that their trade with European countries 
indicates that pattern. 

Q. As to the immediate future, looking to the 
period after a possibly successful lend-lease nego- 
tiation, what is the practical problem before the 
United States Government? You r\ile out the 
grandiose billions of dollars objective. 

A. I think the practical problem, if you assume 
a lend-lease settlement and we wish to go ahead 
with an increase in peaceful trade, would be that 
we might try to get congressional agreement to do 
away with the prohibition on the import of Rus- 
sian furs. This might increase our imports by a 
few million dollars a year, and conceivably, after 
that, there might also be congressional agreement 
to making a trade agreement with the Soviet 
Union and, on the items which you would pur- 
chase from the Soviet under such a trade agree- 
ment, to give them most- favored-nation treatment 
in retui-n for articles which they bought from the 
United States. It would be in the pattern of the 
bilateral trade agreements which they have with 
many countries. I wouldn't think that that could 
show any very dramatic expansion in trade, and 
Mr. Khrushchev agreed with that. He said that 
any expansion would have to take time and it 
would take a considerable period of time. He in- 
dicated quite clearly that the problem in his mind 
was primarily one of removing the restrictions on 
trade — because in principle he didn't like to feel 
discriminated against — rather than the problem of 
the existence of a big flow of trade that was 
dammed up, that was suddenly going to begin. I 
don't think he feels that. 

Q. Without the prospect of large-scale exports 
to the United States, even tvith the free converti- 



bility of European countries, hov) could they hope 
to service these private credits if they got them? 

A. Well, obviously they can't service them un- 
less there is a future possibility either of exports 
or payment in gold. Of course, it would be up to 
the private creditore to decide whether they 
wanted to make those credits. On the other hand, 
as far as straight commercial credits are con- 
cerned, the Soviet Union's record has been very 
good. As a payer, so far as I know, they have 
never defaulted on them, and I think they enter 
into them with a certain amovmt of care. 

Q. On this point of gold, Mr. Secretary, they 
have a good deal of it in reserve at the moment. 
Have they given the slightest indication that that 
might be an immediate bridge until the credit of 
the tioo-way — 

A. No, they have never talked about it. We did 
not ask. I have heard that they have quite a con- 
siderable amount of gold in their stock, but I have 
never heard it from any really authoritative 
source. I don't think the Soviet Union has ever 
given out any figures. Of course, if they wanted 
to use it to purchase goods here or in other coim- 
tries there could be a more rapid increase. They 
have used, from year to year, certain amoiuits to 
even up their balance of paj'ments. 

Trade and Public Opinion 

Q. Sir, how do you explain the contrast be- 
tween Khrushchev''s willingness to reopen the 
talks on lend-lease and Mikoyan''s refusal to do so 
when he spoke to you- in Januaiy? ^ 

A. I think the basic difference — if there is one — 
is that in January I took the attitude that trade 
problems were, because of congressional factors 
and public-opinion factors, inextricably inter- 
twined with public opinion and with general eas- 
ing of tensions. The Soviets did not at tliat time 
want to recognize this. They thought they could 
push and exact some easing on trade, irrespective 
of relations in other fields. I think that Mr. 
Khrushchev has come to realize — all of the So- 
viets have — that this is indeed a part of our overall 
relations, has to be treated as such, and tliat one 
element is the lend-lease .settlement. As Mr. 



'Anastas Mikoyan, First Deputy Chairman of the 
Council of Ministers of the T.S.S.R., made an unofficial 
visit to the United States Jan. i-20. lOr.O. 



550 



Department of S/ofe Bu\iet\n 



Khrushchev himself pomted out, a lend-lease set- 
tlement would have no great economic impact on 
the United States compared to what we spend on 
our budgets every year, for instance. I agreed 
that was right. He said he could see that it 
would be a factor in public opinion and therefore 
was something that there should be an attempt to 
regularize. 

Q. Did you talk figures? 

A. No. 

Q. Were the emhargoes on certain types of goods 
discussed at all? 

A. No. 

Q. Mr. Secretary, if you settled lend-lease, would 
the Kerensky debt still prohibit private loans un- 
der the Johnson Act? 

A. It would under tlie Johnson Act as presently 
drawn. That would either have to be settled, 
or there would have to be some form of legislation 
similar to the legislation that was passed relieving 
other countries of that same obligation by the fact 
of their membership in the World Bank. 

Q. The czarist debts don't apply? 

A. I don't think there are any czarist debts that 
I know of to the United States. The only debts 
I know of were the Kerensky debts. 

Q. Did Mr. Khrushchev give any indication of 
vjiUingness to consider the settlement of the Ker- 
ensky debt? 

A. No, that was never discussed. Someone 
asked him at a cocktail party — I heard this ques- 
tion being asked at the Soviet Embassy— if he 
thought that Russian bonds were a good buy, and 
he said: "CertairJy not." That was a pretty 
straight tip. [Laughter] 

Q. Since there tuas not much encouragement on 
credits by business groups, do you think there is 
a disposition in some American business quarters 
to give him credit? 

A. I would doubt if there would be a disposi- 
tion to give very long-tenn credit, because our pri- 
vate business, our exporter's, generally tiy to 
export on the more normal commercial cash basis. 
I think the same thing would apply to the Soviet 
Union. 



Q. Mr. Secretary, from what you have said here 
it seems that the Ainerican attitude toward trade 
ivith the Soviet Union has been sharply altered or 
changed by the Camp David talks. Now is that 
a fair conclusion to draw? 

A. I don't think so. The President stated at 
Geneva a number of years ago ' — as we have al- 
ways stated — that we favored any increase that 
was possible in peaceful trade. We have always 
felt that there was not much economic possibility 
of any great increase in our trade in the foreseeable 
future, and we still feel that way. But we do feel 
that an increase in peaceful trade would be good. 
We have always felt that this refusal for 7 or 8 
years to even negotiate on lend-lease was a real 
hindrance, because we didn't see any possibility of 
any change in the laws that were adopted at the 
time of the Korean war against furs and regarding 
most-favored-nation treatment in the absence of a 
lend-lease settlement. 

Q. Mr. Secretary, have you foumd out a way to 
sell him a helicopter, and has the admiiiistration 
even passingly considered the possibility of giving 
him one? 

A. There is no prohibition against the sale of 
conamercial helicopters to the Soviet Union or the 
Soviet bloc. If he desires to buy a commercial 
model of a helicopter, I don't foresee any reason 
why there should be any diflSculties. There are 
not too many of them on the production line. 
You have to order one ahead, but otherwise I see 
no problem. 

Crabmeat Embargo 

Q. Mr. Secretary, what about the crabmeat 
situation that there has been a lot of talk on? As 
I understand, that embargo could be removed by 
administrative action. 

A. That is correct. We did not discuss that at 
Camp David. 

Q. Have you considered any action on it? 

A. I think that sort of action would tie in with 
all this general consideration we are giving to in- 
creasing the flow of trade. That was put into 
effect under a 1930 law that gives the Treasuiy 
Department authority to prohibit imports of prod- 



' Bulletin of Aug. 1, 1D55, p. 174. 



October J 9, 7959 



551 



ucts manufactured by slave labor. About 7 or 8 
years ago this was applied to Soviet crabmeat on 
the grounds that Soviet crabmeat was being pre- 
pared by Japanese prisoners of war. The proba- 
bilities are that there are not very many Japanese 
prisoners of war in Russia any more; that situa- 
tion may not exist any more. But it is very hard 
to get concrete evidence of it because we are not 
generally admitted to the area of the Soviet Far 
East where this takes place. 

Q. There is no evidence now? 

A. We only have statements. 

Q. The Soviet Union has not admitted any in- 
spectors? 

A. No, nobody has gone. We haven't asked to 
inspect. This is an administrative question. It 
would have to be solved by the Treasui7 Depart- 
ment at the time. I don't imagine we had any in- 
spectors there when it [the ban] was put on. 

Q. Mr. Secretary, on this question of whether 
our attitude toward Soviet trade has changed, you 
referred earlier to your conversations with Mr. 
Mikoyan in January and the opinion that trade 
was a part of our general political relations with 
the Soviet Union. In that context can you say 
what our attitude is now? Do we feel that the 
political attitude is changed and therefore our 
trade attitude might change? 

A. I think it is too soon. You can't say after 
one meeting that any political attitude was 
changed. But I think that if we have a lend-lease 
settlement, if we move toward the Berlin settle- 
ment, if we seemed to be making some progress 
on disarmament, certainly that would produce a 
different situation than the one we have been living 
through in the last year or two — one that would 
probably lead to an expansion of trade through 
the removal of some of these barriers. 

Q. At the Bidder dinner'' Khnishchev made 
very plain he was interested in purchasing plants 
for the purpose of copying. Do you think the 
American Government tvould he very eager to 
enter into trade relationships on this basis? 

A. That is for American industry to decide. 
Certainly a lot of individual firms would not. 



' Eric Rlddpr, publisher of the Journal of Commerce, 
gave a dinner In honor of Chairman Khrushchev at Wash- 
ington, D.O., on Sept. 24. 



The chemical industry, for instance, has demon- 
strated at its conventions that probably it is not 
very interested in that sort of business without 
very firm agreement on royalties and patents. 

Q. Mr. Secretary, you speak as though we 
loould, of course, favor more trade in the Soviet 
Union. Why is this? Why would we want more 
trade icith the Soviet Union? 

A. To put the question the other way, why not? 
We have always believed that trade is a means of 
exchange and leads to relations of a peaceful and 
useful nature, the same way as other exchanges: 
cultural, exchanges of experts, exchanges of tour- 
ists and students, et cetera. It is a normal func- 
tion when two countries are living at peace with 
each other, and if our relations become more 
normal generally we would like to see these trade 
relations normalized too, so that the amount of 
trade was governed by purely economic factors 
and no other. 

Q. Mr. Secretary, on the occasions when trade 
came up in discussion between Mr. Khrushchev 
and reporters — not discussion but questions and 
answers — his reaction almost invariably was quite 
emotional on the subject of trade. Have you got 
any interpretation of the significance of that? 

A. Well, I think his emotionalism — I noted it a 
little bit, too — stems from the feeling he showed 
at all times here on all subjects when he felt there 
was any discrimination against the Soviet Union. 
I think that he made very clear the principle that 
he was talking about: He thought they were 
treated as some form of outcast, and he didn't like 
it. I think that is the reason for his emotional 
feelmg. 

Q. Mr. Secretary, the President day before yes- 
terday said that Mr. Khrushchev had appointed 
you as agent to procure this helicopter. Are you- 
now turning down this bid to be a go-between? 
[Laughter] 

A. That was a rather unofficial appointment. 
If it turns out that the Soviet Union really does 
want a conunercial model of a helicopter, I will 
be glad to see if I can help to arrange an appoint- 
ment for them with the producei-s of one. 

Q. Incidentally, Mr. Secretary, yo^i used the 
term '■'■commercial model.'''' Does this mean that 
you can't get the explicit model that he wanted? 

A. I don't know that he wants an explicit model. 



552 



Department of State Bulletin 



The models of aircraft or helicopters which are 
stressed and primarily produced for military pur- 
poses so as to lift great weights, et cetera, are part 
of the international control list. They are con- 
sidered strategic, and they are not furnished by 
any country. 

Q. I believe that the President quoted the Pre- 
mier as xuanting one exactly like the one that he 
rode in because of the objections that had been 
taken in his own country to riding in other models. 

A. I think the helicopter industry does produce 
commercial models that are almost identical, ex- 
cept that they may have different communications 
equipment or things of that nature. 

Soviet Economic Offensive 

Q. For the last couple of years, Mr. Secretary, 
we have laid great e7nphasis on the Soviet eco- 
nomic offensive — that their aid carries political 
strings — and we have stressed this in our conver- 
sations with underdeveloped nations. Now isn't 
it going to be a little more diffieidt to carry on this 
line now that we ourselves are willing to enter into 
negotiations? 

A. It is a question of measure. We have always 
said that we had no objection to coimtries' trading 
with the Soviet Union or acceptuig aid from the 
Soviet Union, provided they used care so that they 
did not let that relationship get so strong that 
they were totally dependent on it, or so dependent 
on it that they would be subject to political pres- 
sures. I thiiik we still feel that way. Certainly I 
do. But, as far as ordinary trade is concerned, 
we have never objected. I don't think that will 
raise much of a problem. 

Q. Sir, I believe you said they wanted machin- 
ery for manufacture of synthetics. What else, 
specifically? 

A. Mr. Khrushchev didn't talk about a single 
specific item in these conversations. He made 
very clear that he had not brought trade experts 
with him because he did not want to get into de- 
tailed talk. He wanted to maintain the talk on a 
policy level regarding what he considered as dis- 
crimination and that sort of thing. 

Q. I believe in some of the talks at some of th^ 
private dinners he mentioned some things specifi- 
cally he needed. What do you understand he 
needs specificaZly? 



A. I think he wants a broad range of capital 
goods, machinery to put in factories so they can 
start producing. I think it is a fairly broad range 
of that type of goods. 

Q. Shoes and synthetics and textiles? 

A. Textile machinery, all sorts of machinery. 
I wouldn't be competent to know the exact types 
that they would like, but I think that is the field 
they are interested in. 

Q. Do these ships cotne into the lend-lease ne- 
gotiations? Just what are the areas that are con- 
sidered in the lend-lease $800 million and $300 
million? Just what is involved? 

A. I am not certain of the exact number of 
ships, but there are a certain number, I think, of 
both merchant ships — not a large number — and 
military ships which are mostly very small ones,, 
that do come into this problem. They returned 
some years ago the bulk of the military ships, but 
there were a few that I think they said they 
wanted to buy and they kept them. 

Q. I heard a figure of 83 merchant ships. Is 
that right now? Is that considered a few? 

A. I don't know whether it is 83 or not. It 
sounds like more than I would say would be a few, 
but it may be accurate. [After conferring with 
Mr. Wliite] I am told that is correct. It is 84. 
You can put the adjective on it that you want. 

Q. Those are the t/wo mam, areas? 

A. Yes. [Ships, and payment for civilian-type 
supplies which were on hand in the U.S.S.R. on 
V-J Day.] 

Q. Was there any discussion of figures or per- 
centages on the lend-lease? 

A. No, just an agreement on principle to re- 
sume negotiations. 

Q. Did I understand correctly the Soviet Union 
had obtained the know-haio on four or five fiber 
processes from the United States alone? 

A. Within the past year, yes. 

Q. What do you mean by that? 

A. Technology — possibly not complete and pos- 
sibly only part — but bearing on the making of 
nylon, the making of viscose staple fibers, and the 
making of acrylic fibers — fibers of that nature. 



October 19, 1959 



553 



Q. Do you think this might he. jyreliminary to 
some interest on their part in buying plants? 

A. I have no idea. They have said they were 
interested in this industry. Whether they want 
to buy phvnts or not, I don't know. They have 
said they do, but they have not tried to place 
orders. 



Order Provides for Carrying Out 
of Atomic Energy Amendments 

White House press release dated September 30 
WHITE HOUSE ANNOUNCEMENT 

The President on September 30 issued an Ex- 
ecutive order entitled "Providing for the Carry- 
ing Out of Certain Provisions of the Atomic 
Energy Act of 1954, as Amended, Relating to 
International Cooperation." 

The purpose of the order is principally to pro- 
vide for the carrying out of certain amendments 
of the Atomic Energy Act of 1954, which were 
enacted by the Congress during its 1958 session. 

The statute authorizes cooperation with other 
nations with respect to the sale, lease, or loan to 
other nations of materials for military applica- 
tions and with respect to the communication to 
a cooperating nation of restricted data concerning 
a number of matters. Such international coopera- 
tion (1) is subject to an international agi-eement 
entered into in accordance with the Atomic En- 
ergy Act of 1954, (2) is, for the most part, subject 
to determination by the President that the cooper- 
ation will promote and will not constitute an un- 
reasonable risk to the common defense and se- 
curity, and (3) requires authorization by the 
President to cooperate with the other nation. 

The primary effect of the Executive order is to 
authorize the Secretary of Defense and the Atomic 
Energy Commission, acting jointly, to make the 
necessary determination that the proposed inter- 
national cooperation will promote and will not 
constitute an uni-easonable risk to the common de- 
fense. The order also provides that the approval 
by the President of a proposed international 
agreement providing for cooperation and his au- 
thorization to execute such an agi-eement shall 
constitute the President's authorization to cooper- 
ate to the extent provided for in that agreement 
and in the manner provided for by the statute. 



EXECUTIVE ORDER 10841' 

Providing for the Carrying Out of Certain Provisions 
OF THE Atomic Energy Act of 1954, as Amended, Re- 
latino TO International Coopebation 

By virtue of the authority vested in me by the Atomic 
Energy Act of 1954, as ameuded (42 U.S.C. 2011 et seq.), 
hereinafter referred to as the Act, and section 301 of 
title 3 of the United States Code, and as President of the 
United States, it is ordered as follows : 

Section 1. Whenever the President, pursuant to sec- 
tion 123 of the Act, has approved and authorized the 
execution of a proposed agreement providing for coopera- 
tion pursuant to section 91c, 144a, 144b, or 144c of the 
Act (42 U.S.C. 2121(c), 21C4(a), 21(>i(b), 2164(c)), such 
approval and authorization by the President shall consti- 
tute his authorization to cooperate to the extent provided 
for in the agreement and in the manner provided for in 
section 91c, 144a, 144b, or 144c, as pertinent. In respect 
of sections 91c, 144b, and 144c authorizations by the 
President to cooperate shall be subject to the requirements 
of section 123d of the Act and shall also be subject to 
appropriate determinations made pursuant to section 2 of 
this order. 

Sec. 2. (a) The Secretary of Defense and the Atomic 
Energy Commission are hereby designated and empowered 
to exercise jointly, after consultation with executive agen- 
cies as may be appropriate, the following-described au- 
thority without the approval, ratification, or other action 
of the President : 

(1) The authority vested in the President by section 
91c of the Act to determine that the proposed cooperation 
and each proposed transfer arrangement referred to in 
that section will promote and will not constitute an un- 
reasonable risk to the common defense and security. 

(2) The authority vested in the President by section 
144b of the Act to determine that the proposed coopera- 
tion aud the proposed communication of Restricted Data 
referred to in that section will promote and will not 
constitute an unreasonable risk to the common defense 
and security. 

(3) The authority vested in the President by section 
144c of the Act to determine that the proposed coopera- 
tion and the communication of the proposed Restricted 
Data referred to in that section will promote and will 
not constitute an unreasonable risk to the common de- 
fense and security. 

(b) Whenever the Secretary of Defense and the Atomic 
Energy Commission are unable to agree upon a joint de- 
termination under the provisions of subsection (a) of 
this section, the recommendations of each of thom, to- 
gether with the recommendations of other agencies con- 
cerned, shall be referred to the President, aud the deter- 
mination shall be made by the President. 

Sf.c. 3. This order shall not be construed as delegating 
the function vested in the President by section 91c of the 
Act of approving programs proposed under that .-section. 

Sec 4. (a) The functions of negotiating and entering 
into international agreements under the Act shall be per- 



' 24 Fed. Reg. 7941. 



554 



Department of State Bulletin 



formed by or under the authority of the Secretary of 
State. 

(b) International cooperation under the Act shall be 
subject to the responsibilities of the Secretary of State 
with respect to the foreign policy of the United States 
pertinent thereto. 



/C/ CAJ—r t^To'C'-.e-t.- A.^^--^ 



The White House, 
September SO, 1959. 



Polish Minister of Agriculture 
Visits United States 

Press release G77 dated September 28 

Edward Ochab, Minister of Agriculture of 
Poland, Jan Stanislaw Gucwa, Under Secretary of 
State in the Ministiy of Agriculture, and Felicjan 
Dembinski, Chairman of the Scientific and Tech- 
nical Council of the Ministry of Agriculture, are 
scheduled to arrive in the United States October 1 
on the invitation of the U.S. Government under the 
leader program of the International Educational 
Exchange Service, Department of State. They 
will be accompanied by an interpreter, Stanislaw 
Zagaja. 

The group will remain in the United States 
about 2 weeks. During this time Mr. Ochab and 
his associates will meet with high U.S. officials in 
Washington and will visit several areas of the 
country for the primary purpose of observing 
agricultural production, research, and education. 
Planning for the group's U.S. visit has been done 
by the Departments of State and Agriculture. 
The Governmental Affairs Institute is assisting in 
completing arrangements. 

Before his departure from Poland, Mr. Ochab 
will greet and be host to Secretary of Agriculture 
Ezra Taft Benson, who is arriving in Warsaw on 
September 28 for a 2-day stay as a guest of the 
Polish Government. 



General Pulaski's Memorial Day, 1959 

A PROCLAMATION' 

Whereas during the American war for independence 
brave men of the nations of Europe, inspired liy our ideals 
of liberty and ju.stice, came from their homelands to fight 
b.v our side ; and 

Whereas among them was Count Casimir Pulaski, a 
native of Poland, who joined tlie army of Ceneral Wash- 
ington at the age of twenty-nine ; received an appointment 
from the Continental Congress as eomiiiaiider of cavalry; 
distinguished himself in various engagements with the 
enemy ; raised and commanded a corps known as the 
Pulaski Legion ; and, while leading an attack to relieve 
the captured city of Savannah, Georgia, sustained a 
wound from which he died on Octoljcr 11, 1779; and 

Whereas the Continental Congress on November 29, 
1779, in recognition of General Pulaski's service and 
sacrifice, resolved that a monument should be erected to 
his memory ; and 

W^hereas it is fitting that we should continue to re- 
member General Pulaski's devotion to our Nation by 
marking, in this year, the one hundred and eightieth an- 
niversary of his death : 

Now, therefore, I, D WIGHT D. Eisenhower, President 
of the United States of America, do hereby designate 
Sunday, October 11, 1959, as General Pulaski's Memorial 
Day ; and I direct the appropriate officials of the Federal 
Government to display the flag of the United States on 
all Government buildings on that day. 

I also invite the people of the United States to observe 
the day with appropriate ceremonies in honor of the mem- 
ory of General Pulaski and of the cause for which he gave 
his life. 

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

Done at the City of Washington this twenty-eighth day 

of September in the year of our Lord nineteen hun- 

[SEAL] dred and flfty-nine, and of the Independence of 

the United States of America the one hundred 

and eighty-fourth. 



By the President : 
Christian A. Herter, 
Secretary of State. 



/_) lUL^y- L-tZjO-^^u. A^i<>^^ 



' No. 3318 ; 24 FeA. Reg. 7979. 



Ocfober 79, 7959 



555 



The Role of American Investment in Australia 



hy William J. SebaZd 
Ambassador to AtistraJia^ 



I was delighted when I was invited to address 
the members of the American- Australian Associa- 
tion of California, and, as your president so well 
knows, I lost no time in accepting. I will admit 
to stretching out the date a bit, as home leave for 
us in the field comes, if at all, never more often 
than once in 2 years. 

A month ago I was invited to address your 
counterparts in New York, an occasion which 
gave me an opportunity again to meet with my 
many good friends to whom I had said goodby 
some 27 montlis previously. Since my departure 
for Australia at that time, this association has 
come of maturity, and I therefore have much 
pleasure today not only in meeting with you for 
the first time but also to take with me when I 
leave for Sydney tonight some firsthand im- 
pressions of the good will and friendship for 
Australia so apparent here today. 

I consider myself fortunate indeed to be associ- 
ated so closely with you and your sister association 
in New York in our objective of developing and ce- 
menting even more closely the ties of friendship 
between tlie United States and Aiistralia. 

In this connection I have found among Ameri- 
cans who have not visited Australia a most gen- 
eralized conception of what Australia is, or, more 
accurately, is not. I have found, generally, that 
this conception is expressed in terms of sheep, 
cattle, mutton, beef, wool, aborigines, boomerangs, 
kangaroos, and koala bears. This, of course, is 
not all bad, but the fact that there are so many who 
think of Australia solely in these terms suggests 
that there is still a big job of explanation and 
familiarization to be done. 

Similarly, there is the job of explaining the 
United States to our Australian friends. They, 



too, at times have some rather strange ideas of 
what America is like, though they see many of our 
movie and television shows and perhaps base their 
ideas largely on what they see and hear on the 
screen. Even so, I am sure you will agree that 
much remains to be done. 

In these tasks, therefore, the American- Austra- 
lian Associations and your counterparts in Aus- 
tralia can perform a service which is not only 
desirable but essential if we are to create greater 
understanding and mutual knowledge of each 
other. 

There are, of course, a number of problems with 
which we might deal here today. Unfortunately, 
time and your patience would hardly permit me to 
do more than touch lightly upon the many in- 
teresting facets of Australia which we could ex- 
amine, and I shall therefore limit my remarks to 
a somewhat generalized examination of the Aus- 
tralian economy and the role American investment 
is playing in its development. 

At the outset I should like to say that the condi- 
tions which now obtain in the Australian economy 
closely parallel our own industrial development 
and the gradual westward retreat of the Ameri- 
can frontier. Indeed, if I recall correctly, my 
good friend Premier [H. E.] Bolte of Victoria, 
during his mission to the United States this past 
spring, described Australia as America's western 
frontier. 

Basic Strength of Australian Economy 

I am certain that you welcomed the announce- 
ment on August 1st that the Australian Govern- 
ment had taken further steps to liberalize its 
import restrictions.^ In effect, the growing Aus- 



' Address made before the American-Australian Asso- 
ciation of California at San Francisco, Calif., on Sept. 29. 



' For a U.S. statement regarding tlie relaxation by 
Australia of controls against dollar Imports, see Bulletin 
of Aug. 24, 1959, p. 284. 



556 



Department of State Bulletin 



tralian market is now open to dollar goods on a 
nondiscriminatory basis for virtually all cate- 
gories of goods. Those restrictions wliich still 
remain apply to imports from every currency area. 

Tliis latest step was far reacliing and serves to 
emphasize the basic strength of Australia's for- 
eign exchange position. It also underscores the 
greater opportunities for American exporters and 
investors, many of whom had begun to think of 
Australia as a closed market. 

I hope to demonstrate that this is not so and 
that, regardless of what may have been the situa- 
tion during much of the period since the end of 
the war, Australia now is virtually exploding 
into industrial strength. Consider, for example, 
that in 1958 income from the export of Australian 
wool declined by more than 40 percent. A decade 
ago this drop would have served a disastrous 
blow upon the Australian economy. And yet 
last year, in spite of this dip, there was no signi- 
ficant decline in the national income. 

The reasons are not difficult to find. They lie, 
basically, in the spectacular growth of industry 
during the past 10 years. 

Relatively, Australia is now as much an "auto- 
mobile" economy as is the United States. Pro- 
duction last year was 240,000 cars, and there 
is one automobile registered for every 3.75 pereons. 
The ratio in the United States is one automobile 
for every 2.25 persons. And within a few years 
the capacity of the Australian automobile indus- 
try is expected to reach some 325,000 units 
annuallj'. 

Houses and apartments are being built at the 
rate of 80,000 per annum. 

Australia is producing over 3 million tons of 
steel each year. And the price of this steel landed 
in the United States is 10 to 20 percent lower than 
the price of equivalent steel manufactured in this 
country. Thus, our west coast is becoming an im- 
porter of Australian steel products. 

Australia is now a mass producer of refrigera- 
tion equipment, washing machines, plastics, tires, 
and even that great American phenomenon — tele- 
vision, not to mention such diverse items as heavy 
chemicals and drugs of all kinds, ships, and jet 
planes. The important thing, of course, is that 
there is a growing market for these products, not 
only in the Australian domestic market but also 
in the developing countries to the north. 

During the course of the past decade coal pro- 



duction has risen 50 percent; the generation of 
electricity is up 120 percent; many industrial 
chemicals have increased by from 80 to 300 per- 
cent; cement production is up 130 percent; the 
production of automobiles lias tripled, as has the 
production of copper. These are astonishing 
statistics. 

We have heard a gi-eat deal recently about the 
"great leap forward" of Communist China. I 
submit that Australia's record is such as to make 
that leap look somewhat silly, the more so be- 
cause it has been effected in a free economy so 
similar to our own and without the tragic disloca- 
tion of human beings to which the Chinese Com- 
munists have so ruthlessly resorted. 

This is an exciting period in which to be the 
representative of our country in Australia. 
Things are on the move. You may recall that a 
$52-million petrochemical complex is being con- 
structed in the State of Victoria to utilize the 
virtually limitless brown coal deposits available. 
These same deposits also provide fuel for huge 
thermoelectrical generating plants and plants 
manufacturing gas for the Melbourne area. I 
have heard this valley described as the future 
"Ruhr of Australia"— a description which might 
well be realistic. 

Oil refining capacity is expected to expand 
from 10,500,000 to 14,500,000 tons annually. As of 
now, no commercially feasible oil deposits have 
been found in the country, but Australian, British, 
and American prospecting teams are working 
hard and, like prospectors everywhere, are op- 
timistic that oil will be found. 

General Motors-Holden Corporation is now en- 
gaged in a $20-million expansion program which 
will boost its capacity to 125,000 cars annually. 
This wholly American-owned subsidiary is the 
largest automobile manufacturer in the country. 

By far the most ambitious and exciting project, 
however, is the gigantic — perhaps in California 
I might even say "stupendous" — Snow Mountains 
hydroelectric scheme, on which the Australian 
Government is currently spending about $100 mil- 
lion each year. When completed, it will have cost 
more than $1 billion and will of itself have 
doubled the total electrical power in Australia. 

It seems obvious that bountiful opportunities 
for investment exist in this burgeoning economy. 
Indeed, the rate of inflow of capital in the second 
half of 1958 was reported to be almost twice as 



Ocfober 79, 7959 



557 



high as it was during the same period of the pre- 
vious year. Total United States investment in 
Australia is estimated to exceed $750 million. This 
total represents a greater investment by Ameri- 
cans than that in any one country of Western 
Europe except the United Kingdom. It is greater 
than the total United States investment in India, 
Japan, Indonesia, and New Zealand combined. 

According to statistics recently released by the 
Australian Minister for Trade, the Honorable 
John McEwen, almost 900 American companies 
have established factories or acquired joint inter- 
ests with local manufacturers in Australia. These 
range from Abbott Laboratories of Chicago to 
the Zippy Products Company of Memphis. I am 
told that some eight private investment missions 
are slated to go to Australia during the next 12 
months, largely in consequence of Premier Bolte's 
recent visit. 

Favorable Climate for Investment 

The reasons why investors hold Australia in such 
favor are readily understandable. It is a rich and 
developing economy with an annual population 
increase of 2.5 percent. Australia has the fiftl' 
highest per capita income in the world. With occa- 
sional exceptions, the country is remarkably free 
of strikes. There is an adequate supply of skilled 
labor, and the Government's immigration poli- 
cies — 125,000 new immigrants are expected next 
year — are directed toward those who are skilled in 
a trade or profession. The immigration policy, by 
the way, is a bipartisan project. 

Perhaps most important of all to potential in- 
vestors, however, are the policies adopted by the 
State and Commonwealth Governments. In my 
view, these Governments have exhibited a sophis- 
ticated understanding and appi'eciation of the role 
that foreign capital can play in Australia's in- 
dustrialization and general economic growth. The 
States have at various times sent high-level trade 
missions to this country in order to attract addi- 
tional investment capital. Eacli Stale is in a po- 
sition to make some potent points in its selling 
campaign, and the Commonwealth Government 
has also been generous in acknowledging the role 
that American capital has played in Australia's 
development. 

There are no restrictions whatsoever on the type 
of enterprise in which foreign investors may en- 



gage. Nor are unusual controls imposed on the 
operations of foreign businesses. This means, of 
course, that the American investor is assured the 
same treatment as that accorded Australian na- 
tionals. 

Australia takes great pride in its treatment of 
applications for remittance of earnings and re- 
patriation of capital. It is only the exceptional 
case in which approval is not granted. In fact, I 
know of no such case which has arisen during the 
past 10 years. 

I think that I have made my point, that Aus- 
tralia has entered upon a period of almost explo- 
sive expansion, to which American capital has and 
is contributing in a most constructive manner. 
There is, of course, need for still more capital in 
this expanding economy. 

At the same time, however, we should observe 
that there are pockets of Australian opinion which 
have serious reservations about the wisdom of en- 
couraging, or even permitting, additional foreign 
investment in the Australian economy. The argu- 
ments for these views are familiar. They have, at 
one time or other, been repeated in virtually every 
developing country in the world, including our 
own. The fact that these arguments are familiar, 
however, should in no sense denigrate the impor- 
tance they assume for those who hold them. 

The line of reasoning which I have most fre- 
quently encoimtered in this respect is briefly as 
follows: As foreign investment grows, the drain 
on foreign exchange reserves to cover overseas 
payments soon becomes excessive. This is espe- 
cially true of American investment, since it has 
enjoyed such signal success. Alternatively, it is 
said that, since American firms follow the prac- 
tice of reinvesting unusually high percentages of 
their earnings within the country, the trend is for 
American firms to acquire control of important 
sectors of the Australian economy. 

Now it seems to me that our experience and re- 
sults elsewhere effectively dispose of these ai'gu- 
ments. Successful foreign investment not only 
does not drain wealth from a country hut rather 
creates new wealth which is jiermanent, regardless 
of what the investor eventually does with his 
original capital. I venture to suggest, further, 
that reinvestment of earnings should be a source 
of satisfaction and gratilication. It means, in 
effect, that foreign investors consider tlio receiving 



558 



Department of State Bulletin 



country a sound field for further utilization of 
capital. Capital is timid and will remain only 
where its primary f miction of investment growth 
can be exercised. 

One final point which I would like to make is 
that of the desirability of American investors' 
entering into partnership with our Australian 
friends. No all-inclusive rule can be laid down 
in this regard, as almost every investment is based 
upon different considerations. In an address to 
the Sydney Eotary Club shortly before my depar- 
ture from Australia, I referred to this problem in 
the following words : 

In general . . . United States Government officials, 
including myself, are fully aware of the inherent advan- 
tages that usually accrue from ventures jointly entered 
into between American firms and Australian citizens or 
companies. We do what we can to explain these advan- 
tages to potential investors. Also, I am sure that, in 
general, American firms investing in Australia welcome 
the many contributions which local capital and know-how 
can make. 

In short, Mr. President, we in government not 
only favor private investment but we recommend 
that such investment, wherever possible, be a joint 
venture with Australian capital and know-how. 
This, in my belief, provides a built-in assurance 
that at least some of the difficult problems of op- 
erating in a foreign country can more easily and 
satisfactorily be surmounted with the mterested 
help of Australian friends and partners. 

Thank you. 



U.S. Welcomes French Move 
To Reduce Import Restrictions 

Department Statement 

Press release 690 dated October 1 

The U.S. Government welcomes the announce- 
ment by France on September 26 of a new list of 
products which may be imported from the dollar 
area without quantitative restriction. Besides re- 
ducing the scope of quota discrimination against 
dollar imports, tlie French action adds to their 
dollar and OEEC liberalization lists 15 product 
descriptions not heretofore liberalized for any 
exporting country. 

Products wliich U.S. exporters will be able to 



market in France without quantitative restriction 
as a result of the new French measure include 
heavy automobiles, outboard motors, certain plas- 
tics and chemicals, rolling mills, electric junction 
boxes, carbon black, and dried apricots. In addi- 
tion, on January 1, 1960, Fi'ench quotas on dollar 
imports of edible offals, various kinds of syn- 
thetic rubber, and certain medicines and anti- 
biotics will be removed. 

The new liberalization move brings France's 
dollar liberalization percentage (based on imports 
on private account in 1953) up to about 80, the 
highest level yet reached by France. 



President Amends Proclamation 
on Wool-Fabric Tariff Quota 

White House press release dated September 24 
WHITE HOUSE ANNOUNCEMENT 

The President on September 24 amended his 
April 21st proclamation ^ which established a sup- 
plemental tariff quota for certain woolen and 
worsted fabrics. The proclamation of Septem- 
ber 24 is addressed to certain technical problems 
which have arisen in the administration of that 
supplemental tariff quota. 

The earlier proclamation established a value 
test for determining which fabrics would receive 
the benefit of the 30 percent ad valorem rate of 
duty established for 350,000 pounds of imports 
in excess of the basic woolen and worsted tariff 
quota which was set at 13.5 million pounds for the 
year 1959. For the purpose of applying that value 
test, the proclamation of September 24 provides 
for the use of the purchase price based upon the 
invoice. This invoice value standard is made ap- 
plicable in general to all imports under the sup- 
plemental quota for 1959. 

This method of valuation will be used only for 
applying the test set forth in the proclamation of 
April 21, 1959. Standard methods of assessing 
values for tariff purposes remain applicable in 
other respects. 



^ For text, see Bulletin of May 18, 1959, p. 720. 



Ocfofaer 19, J 959 



559 



PROCLAMATDON 3317' 

FuBTHEB Amendment or Proclamation No. 3160, 
Relating to Certain Woolen Textiles 

1. Whereas by Proclamation No. 3100 of September 28, 
1956 (71 Stat. C12),= as amended by Proclamation No. 
3225 of March 7, 1958 (3 CFR, 1958 Supp., p. 19),' and 
by Proclamation No. 3285 of April 21, 1959 (24 F.R. 3221), 
the President announced the invocation by the Govern- 
ment of the United States of America of the reservation 
contained in the note to item 1108 in Part I of Schedule 
XX annexed to the General Agreement on Tariffs and 
Trade (61 Stat. (pt. 5) All, A1274), and proclaimed that 
the ad valorem part of the rate applicable to fabrics de- 
scribed in item 1108 or 1109(a) in Part I of Schedule XX 
to the General Agreement on Tariffs and Trade (61 Stat, 
(pt. 5) A1274), or in item 1109(a) in Part I of Schedule 
XX to the Torquay Protocol to the General Agreement on 
Tariffs and Trade (3 UST (pt. 1) 615, 1186), entered, 
or withdrawn from warehouse, for consumption in excess 
of certain quantities would be either 30 per centum or 45 
per centum, depending on the classification of such fab- 
rics ; and 

2. Whereas I find that as of January 1, 1959, it will 
be appropriate to carry out the General Agreement on 
Tariffs and Trade that the ad valorem part of the rate 
be 30 per centum ad valorem in the case of any of the 
fabrics described in item 1108 or 1109(a) in Part 1 of 
Schedule XX to the General Agreement on Tariffs and 
Trade, or in item 1109(a) in Part I of Schedule XX to 
the Torquay Protocol to the General Agreement on Tariffs 
and Trade, which are described in subparagraph (a) of 
the seventh recital of the proclamation of September 28, 
1956, as amended by the proclamations of March 7, 1958, 
and April 21, 1959, and as further amended by this proc- 
lamation : 

Now, therefore, I, Dwioht D. Eisenhower, President 
of the United States of America, acting under and by vir- 
tue of the authority vested in me by the Constitution 
and the statutes, including section 350(a) of the Tariff 
Act of 1930, as amended by section 3(a) of the Trade 
Agreements Extension Act of 19.55 (69 Stat. 162; 19 
U.S.C. 1351(a), Supp. V), and by section 3(a) of the 
Trade Agreements Extension Act of 1958 (72 Stat. 673; 
Public Law 85-686, sec. 3(a)), do hereby proclaim that, 
except insofar as this would result in the assessment on 
any article entered, or witlidrawn from warehouse, for 
consumption prior to the date of this proclamation of a 
higher duty than would have been assessed thereon under 
the Proclamation of April 21, 1959, the seventh recital 
of the proclamation of September 28, 1956, as amende<l 
by the proclamations of March 7, 1958, and April 21, 
1959, is hereby further amended to read as follows : 

"7. Whereas I find that following December 31, 1958, 
and until otherwise proclaimed by the President, it will be 
appropriate to carry out the trade agreements sijecilied in 



= 24 Fed. Reg. 7893. 

' For text, see Bulletin of Oct. 8, 1956, p. 556. 

' For text, see ibid., Apr. 21, 1958, p. 073. 



the first and third recitals of this proclamation that the 
ad valorem i>art of the rate be as set forth below in the 
case of the fabrics described in item 1108 or 1109(a) in 
Part I of Schedule XX of the General Agreement on Tar- 
iffs and Trade set forth in the second recital hereof, or in 
item 1109(a) in Part I of Schedule XX to the Torquay 
Protocol set forth in the fourth recital hereof (except 
in each case articles dutiable at rates applicable to 
such fabrics by virtue of any provision of the Tariff Act 
of 1930, as amended, other than paragraph 1108 or 
1109(a) ), entered, or withdrawn from warehouse, for con- 
sumption in any calendar year after that total aggregate 
quantity by weight of such fabrics which shall have been 
notified by the President to the Secretary of the Treasury, 
and published in the Federal Register (which quantity 
the President shall have found to be not less than 5 per 
centum of the average annual production in the United 
States during the three immediately preceding calendar 
years of fabrics similar to such fabrics), has been so en- 
tered or withdrawn during such calendar year: 

"(a) 30 per centum ad valorem in the case of any such 
fabrics which are : 

"( i ) hand-woven fabrics with a loom width of less 
than 30 inches, 

"(ii) serges, weighing not over 6 ounces per square 
yard, and nuns' veilings and other woven fabrics, weighing 
not over 4 ounces per square yard ; all of the foregoing de- 
scribed in this clause (ii) wholly or in chief value of wool 
of the sheep, valued at over $4 per pound, in solid colors, 
imported to be used in the manufacture of apparel for 
members of religious orders, or 

"(iii) woven fabrics not described in either clause (i) 
or clause (ii) of this subparagraph wholly or in chief 
value of wool of the sheep or hair of the Angora goat, 
weighing over 6 ounces per square yard and having a 
purchase price determined from the invoice of over $0.50 
per pound, or weighing over 4 ounces, but not over 6 
ounces, per square yard and having a purchase price de- 
termined from the invoice of over $7 per pound (such 
purchase price to be determined by the Collector of Cus- 
toms on the basis of the aggregate price, including all 
expenses incident to placing the merchandise in condition, 
packed ready for shipment to the United States, but ex- 
cluding transportation, insurance, duty, and otJier 
charges incident to bringing the merchandise from the 
place of shipment in the country of exportation to the 
place of delivery in the United States) entered, or with- 
drawn from warehouse, for consumption in any calendar 
year after such aggregate quantity notified by the Presi- 
dent to the Secretary of the Treasury has l)een so en- 
tered or witlidrawn but before there shall have been so 
entered or withdrawn 350,000 pounds of woven fabrics 
described heretofore in this clause (ili) but not described 
in either clause (i) or clause (ii) of tills subparagraph, 
and 

"(b) 45 per centum ad valorem in the case of any other 
of such fabrics ; and". 

In witness whereof, I have hereunto set my hand and 



560 



Department of State Bulletin 



caused the Seal of the United States of America to be 
affixed. 

Done at the City of Washington this 24th day 

of September in the year of our Lord nineteen 
[seal] hundred and lifty-nine, and of the Independence 

of the United StJites of America the one hundre<l 
and eighty-fourth. 



^ 



ct j ■ ■ ■ L-i~Z^Lj-<^L^ X»*o^%, 



By the President : 

Christian A. Herter, 
Secretary of State. 



Views Invited on Renegotiation 
of Canadian Textile Concessions 

Press release 684 dated September 30 
DEPARTMIENT ANNOUNCEMENT 

The interdepartmental Committee for Reciproc- 
ity Information issued a notice on September 30 
inviting the public to submit views in connection 
with a tariff renegotiation to begin on or about 
November 16 arising from Canada's desire to 
modify certain textile and related concessions 
formerly negotiated with the United States and 
other comttries under the General Agreement on 
Tariff's and Trade (GATT) . 

The scheduled renegotiation results from the 
continuing revision of Canada's customs tariff 
which began several years ago. To bring about 
the revision, individual schedules of the tariff are 
referred to the Canadian Tariff Board for investi- 
gation and recommendations, and, on the basis of 
those recommendations, the language and, in some 
cases, the rate structure are revised with a view to 
modernization. Insofar as the revision extends to 
products which are the subject of concessions in 
the GATT, international negotiations are required 
with a view to compensatory adjustments in those 
cases in wliicli concession rates are increased. 

Several schedules of the Canadian tariff have 
already been revised by this procedure. The 
textile schedule was referred to the Tariff Board 
more than a year ago, and the Board has reported 
on woolen and worsted fabrics, cotton and cotton 
products, silk and manmade fibers and products, 
and textile wastes. The Board is expected to 
make a report on knitted goods soon and to report 
on the remaining products (coated fabrics, braids, 



tapes, elastics, etc.) as investigations are com- 
pleted. 

The changes recommended by the Bonrd in tlie 
reports already made cover many GATT conces- 
sions. They extend through tlic cotton, syntlietic 
fiber, silk, and wool categories of trade. The 
tariff numbers included in the reference to the 
Tariff Board cover rovings; waste and rags; batts 
and wadding; yarn, thread, and cordage; piece 
goods, ribbons, lace, and embroidery ; wearing ap- 
parel including gloves and hats, hoods, and 
sliapes; and miscellaneous manufactures includ- 
ing bags and household and various made-up 
articles. A number of specialized products which, 
by reason of tariff specification or end use, are 
associated with the textile tariff also fall within 
the scope of the revision, including surgical 
dressings, surgical trusses, suspensory bandages, 
and abdominal supports; boot, shoe, shirt, and 
stay laces; webbing and belting of all kinds in- 
cluding rubber; manufactures of hair; and elec- 
tric blankets. Products for use in Canadian man- 
ufactures are also included, such as hat braids; 
asbestos fabric for the manufacture of brake lin- 
ing and clutch facing; tire cord and fabric; mate- 
rials for the manufacture of surgical dressings; 
pantographs and parts including diamond points 
and engraving mills for printing textiles and wall- 
paper; and blankets, blanketing, and lapping for 
use by those industries. 

The concessions on many of the affected tariff 
items were either initially negotiated with the 
United States in the GATT or cover trade in 
which this country is the principal or a large 
supplier. Accordingly the United States has in- 
formed Canada that it desires to negotiate or 
consult respecting any increases in concession 
rates which Canada may make. Not all of the 
textile changes recommended by the Tariff Board, 
however, are increases in duty. Some represent 
decreases in existing tariffs and some merely 
changes in language incidental to the establish- 
ment of broader specifications. It is suggested 
therefore that interested parties refer to the Ca- 
nadian Tariff Board reports mentioned above to 
familiarize themselves with the nature of the tariff 
revision and the changes which may result from 
the Board's recommendations. Details concern- 
ing the availability of these reports are contained 
in the attached notice of the Committee for Reci- 
procity Information. 



October 19, J 959 



561 



Because of the continuing nature of the renego- 
tiations the committee has set no closing date for 
submission of views, but it points out that in order 
to receive maximum consideration views respect- 
ing items dealt with by the Canadian Tariff 
Board reports now available should be received 
by the committee at least 15 days before the nego- 
tiations begin. Views respecting items dealt with 
by Tariff Board reports published subsequent to 
the committee notice should be received within 
30 days after the date of publication of the Tariff 
Board report to receive maximum consideration, 
the committee notes. 

The interdepartmental Committee for Reciproc- 
ity Information is a group consisting of a member 
of the United States Tariff Commission as chair- 
man and representatives from the Departments of 
Agriculture, Commerce, Defense, Interior, Labor, 
State, and Treasury, and the International Co- 
operation Administration which is charged with 
receiving the views of interested persons regarding 
proposed or existing trade agreements. 

Details concerning the submission of statements 
are contained in the attached notice of the Com- 
mittee for Reciprocity Information. 

All communications regarding this notice should 
be addressed to : The Secretary, Committee for 
Reciprocity Information, Tariff Commission 
Building, Washington 25, D.C. 

TEXT OF NOTICE 

COMMITTEE FOR RECIPROCITY INFORMATION 

Renegotiation by Canada With the United States of 
Certain Textile Tariff Concessions Included in 
Canada's Schedule to the General Agreement on 
Tariffs and Trade 

Submission of information to tlie Committee for Reci- 
procity Information. 

Views receive maximum consideration if submitted at 
least 15 days before besiimins of renegotiations. 

Renegotiation begins on or about November 16, 1959. 

Notice is hereby given that the Committee for Reciproc- 
ity Information invites written views from interested 
parties with respect to the possible effect on United States 
trade of the renegotiation by Canada of the concessions on 
certain textile and related products in Schedule V (Can- 
ada) to the General Agreement on Tariffs and Trade, as 
well as views regarding concessions which the United 
States might seek, or Mcci'iit, from ("aniida as compensa- 
tion for the modification or withdrawal of existing Ca- 
nadian concessions. 



The renegotiations by Canada will be conducted pursu- 
ant to Article XXVIII of the General Agreement, the 
Contracting Parties to that Agreement having found the 
special circumstances required by paragraph 4 of that 
article. Under the provisions of Article XXVIII of the 
General Agreement, a contracting party proposing to re- 
negotiate a concession by modifying or withdrawing it is 
required to negotiate regarding compensatory adjustment 
with the country with which the concession was origi- 
nally negotiated and with any other contracting party 
having a principal supplying interest in the concession. 
It is also required to consult with contracting parties 
having a substantial trade interest therein. In such 
negotiations, the country proposing the modification or 
withdrawal usually offers new concessions by way of 
compensation, and views are now requested on the as- 
sumption that agreement will be reached on the basis of 
compensatory concessions by Canada. 

The renegotiation by Canada results from a proposed 
revision of the textile schedule of the Canadian customs 
tariff, which will be based on recommendations by the 
Tariff Board. The Board has already reported its rec- 
ommendations on woolen and worsted fabrics, cotton and 
cotton products, silk and man-made fibres and products, 
and textile wastes. It is expected to report on knitted 
goods soon and to report on the remaining products 
(coated fabrics, braids, tapes, elastics, etc.) early in 
1960. Not all of the textile changes recommended by the 
Tariff Board are increases in duty. Some represent de- 
creases in existing duties and some merely changes in 
language incidental to the establishment of broader speci- 
fications. Accordingly, it is urged that interested parties 
refer to these Tariff Board Reports to familiarize them- 
selves with the nature of the proposed revision and the 
changes which may result from the Board's recommenda- 
tions. The Tariff Board Reports which have so far been 
published are available for purchase from the Queen's 
Printer, Ottawa, Canada. Reference copies are on de- 
posit at the Department of Commerce Field OflSces in 
New York, Boston, Greensboro (N.C.), and Atlanta, and 
at the British Commonwealth Division, Bureau of For- 
eign Commerce, Department of Commerce, Washington, 
D.C. Other reports will be made available at these loca- 
tions as they become available. 

All communications submitted to the Committee, ex- 
cept information and business data proffered in confi- 
dence, shall be open to inspection by interested persons. 
Information and business data proffered in confidence 
shall be submitted on separate pages clearly marked "For 
Official Use Only of the Committee for Reciprocity 
Information." 

No closing date for the submission of written views is 
established. However, negotiations respecting the prod- 
ucts dealt with by the Canadian Tariff Board Report.s 
now available are expected to begin on or about Novem- 
ber 16, 1959, and views resi)ecting these products should 
be received by the Committee at least 15 days prior to 
that date in order to receive maximum consideration. 
Views on products dealt with by Canadian Tariff Board 
Reports published subsequent to this announcement 
should be received by the Committee no later than 30 days 



562 



Department of Sfofe Bulletin 



after the date of their publication in order to receive 
maximum consideration. 

Annexed to this notice is a list of commodity classifica- 
tions relating to tariff concessions in Scliedule V (Can- 
ada) to the General Agreement on Tariffs and Trade in 
the renegotiation of which the United States intends to 
I)artici[)ate. 

By direction of the Committee for Reciprocity Infor- 
mation this 30th day of September, 1959. 

Edward Tardley 
Secretary, 
Committee for Reciprocity Inform/ition. 



ANNEX TO NOTICE 

Commodity Classifications Relating to Tariff Con- 
cessions IN Schedule V (Canada) to the Genesal 
Agreement on Tariffs and Trade in the Renegotia- 
Tio.\ of Which the United States Intends To Par- 
ticipate 



Cotton Products 



Batts, batting, and wadding 

Tarn, thread and cordage 

Piece goods 

Lace and embroidery 

Wearing apparel 

Other manufactures 



Synthetic Textile Fibre Products 



Yarns, threads, cords, etc. 
Piece goods 
W^eariug apparel 
Other manufactures 

Silk Products 

Tarns and thread 
Piece goods 
Wearing apparel 
Other manufactures 

Wool and Products 
Raw and unmanufactured wool and slivers 



Tarns, batts and batting 
Piece goods 
Wearing apparel 
Other manufactures 

Flax, Hemp and Jute Products 

Batts. batting and wadding 
Tarn, thread and twine 
Piece goods 
Other manufactures 

Textile Products of Miscellaneous and Mixed Composition 

Hats, hoods and shapes 

Braid, fringe, etc. 

Rags and waste 

Surgical dressings 

Cloth, coated or impregnated 

Bags, including used 

Other Products 

Surgical trusses, suspensory bandages and abdominal 

supports 
Boot, shoe, shirt and stay laces 
Asbestos fabric for the manufacture of clutch facing and 

brake lining 



Hair and manufactures 

Electric blanlcets 

Belting, including rubber and webbing 

Blanliets, blanketing and lapping for use by textile manu- 
facturers and wall paper printers 

Pantograph rolls and engraving mills for printing textiles 
and wall paper 

Tire cord and fabric 



DLF Lists Total Commitments 
as off September 15, 1959 

Press release 674 dated September 25 

In the period June 12 to September 15 the U.S. 
Development Loan Fund approved 15 loans total- 
ing $97,200,000 to public and private borrowers 
in 10 countries, according to a listing issued on 
September 25. This listing is an addendum to one 
dated June 11.^ 

The newly listed loans bring the cumulative 
total commitment of DLF loan funds to date to 
$833,650,000. This includes commitments of 
funds for 101 loans and 1 guarantee totaling 
$815,506,000 to borrowers in 39 countries and com- 
mitment of $18,150,000 for certain coimtries to 
finance projects within their development pro- 
grams, subject to approval of specific projects. 

One loan previously approved — $300,000 to the 
Anlmmas/Pedrinhas Eesettlement Project in 
Brazil — was canceled at the request of the appli- 
cant. 

The DLF is a U.S. Government corporation 
established to help speed the economic growth of 
newly developing nations. It lends money to 
governments and private firms 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 DLF during the 
June 12-September 15 period. Copies are avail- 
able at the DLF offices at 1025 Fifteenth St., NW., 
Washington 25, D.C. 

DLF loan operations to date break down as 
follows : 

Eighteen loans totaling $65,790,000 to borrowers 
in 12 Latin American countries ; 

Nine loans totaling $30,140,000 to borrowers in 
7 countries in Africa ; 



• Bulletin of July 27, 1959, p. 127. 



Ocfober 79, 7959 



563 



Seven loans totaling $77,100,000 to borrowers 
in 3 European countries ; 

Eighteen loans totaling $166,200,000 to borrow- 
ers in 7 countries in the Near East ; 

Twenty-four loans totaling $310,000,000 to bor- 
rowers in 3 countries in South Asia; and 

Twenty-five loans and one guarantee, totaling 
$166,276,000, to borrowers in 7 Far Eastern 
countries. 

The principal borrowing countries were India, 
with 8 loans totaling $195,000,000, and Pakistan, 
with 13 loans totaling $111,550,000. 



INTERNATIONAL ORGANIZATIONS 
AND CONFERENCES 



SEATO IVlembers Consider Situation 
in Soutlieast Asia 

Following m-e texts of three documents: the 
f/nal press release issued at the conclusion of a 
meeting of the military advisers to the Southeast 
Asia Treaty Organization at Bangkok Septemher 
^^-^^i a. communique released after a meeting of 
the Council Representatives at Bangkok on Sep- 
terriber 26; and a com?nunique released following 
an informal ministerial meeting of the SEATO 
Council at Washington on September 28. 

MILITARY ADVISERS, BANGKOK, SEPTEMBER 24 

The SEATO Military Advisers ended their 
Eleventli Conference today confident that the col- 
lective strength of the Treaty Organization is 
ready to defend South-East Asia if the need arises. 
They review'ed and refined SEATO military plans 
designed to safeguard the security and integrity 
of the Treaty Area. They expressed their con- 
fidence in their ability to support these plans 
should such action be called for by the SEATO 
Council. 

The Military Advisers took note of communist- 
inspired threats to the freedom of Laos.^ They 
recognised the need to keep up-to-date their plans 



in case future developments require military de- 
fensive action by SEATO. 

The Advisers expressed satisfaction over the 
high degree of coordination and cooperation at- 
tained in the three SEATO Military Exercises 
held since their meeting in Wellington, New Zea- 
land earlier this year. They stressed the impor- 
tance of continuing these exercises as a means of 
improving techniques and operational procedures 
among the Member Nations' Armed Forces. 

A review was made of the reports of the Mili- 
tary specialist groups which have met during the 
past few months and their recommendations for 
steps to be taken to increase further the capability 
of SEATO forces to conduct combined operations. 

The Twelfth Conference of the IMilitary Ad- 
visers will be convened on 18 May, I960 in "Wasli- 
ington, D.C. 

COUNCIL REPRESENTATIVES, BANGKOK, SEP- 
TEMBER 26 

The members of SEATO have been in con- 
stant consultation and are following with concern 
Pathet Lao elTorts, with nortli Vietnamese encour- 
agement and support, to undermine the integrity 
and independence of Laos. There have been 
threats, propaganda, and even open military at- 
tacks on Laotian Government forces. 

The Government of Laos has regarded the situ- 
ation as so dangerous to its security and inde- 
pendence that it has appealed to the United Na- 
tions. INIembers of SEATO, all of whom are at 
the same time members of the United Nations, wel- 
come the promptness witli which the Security 
Council acted on the problem of Laos.- SEATO 
members have faith in the ability of the United 
Nations to act both quickly and effectively in spite 
of the opposition of Communist countries to meas- 
ures designed to protect the independence and in- 
tegrity of small states. SEATO hopes that there 
will be eifective and continuing ITnited Nations ac- 
tion to ensure that the authority of the legitimate 
Government and the territorial integrity of Laos 
are maintained. 

Considering that the situation in Laos is one 
which might endanger tlie peace of tlie area, 
members of SEATO will continue to consult 
under the Manila Pact on measures which siiould 
be taken for the common defense. In the event 



' For background, see Bulletin of Oct. 5, 1959, p. 475. 
564 



' Ihid., Sept. 28, 1959, p. 450. 

Oeparfmenf of Sfafe Ruilet'tn 



of it becoming necessary to defend the integrity 
of Laos against outside intervention SEATO has 
made preparations so as to be able to act promptly 
within the frameworls: of the Manila treaty. 



MINISTERIAL MEETING, WASHINGTON, SEP- 
TEMBER 28 

Press release 678 dated September 28 

Taking advantage of tlie presence in the United 
States of the Foreign Ministere of many of the 
SEATO member nations for the opening of the 
Fourteenth General Assembly of the United 
Nations, the SEATO Council lield an informal 
meeting in Washmgton today. 

The meeting provided an opportunity for tlie 
discussion of significant world developments 
since the last regular Council Meeting in April.^ 
There was no formal agenda and views were 
exchanged on a wide range of topics. 

Certain provisions of the Southeast Asia Col- 
lective Defense Treaty *' apply to Laos and partic- 
ular attention was devoted to the current situation 
in that comitry. 

The SEATO member nations are united in 
their determmation to abide by their Treaty obli- 
gations and will, of course, continue to follow 
closely any developments that threaten the peace 
and stability of the Treaty Area. 

All members of SEATO are also members of 
the United Nations. Article VI of the South- 
east Asia Collective Defense Treaty specifies that 
the Treaty is not meant to affect the responsibil- 
ity of tlie United Nations to insure international 
peace and security. Accordingly, the SEATO 
Council fully supports the prompt action of the 
United Nations Security Council in response to 
the appeal of the Royal Laotian Government. 



United States Delegations 
to International Conferences 

17th Session of ECE Timber Committee 

The Department of State announced on October 
2 (press release 694) the designation of George 
Corydon Wagner, Sr., vice president and treasurer 



of the St. Paul and Tacoma Lumber Co. of 
Tacoma, Wash., as the U.S. delegate to the I7th 
session of the Timber Committee of the Economic 
Commission for Europe (ECE), scheduled to be 
held at Geneva, October 12-16. 

Discussions at this session will be devoted to a 
review of the market and prospects for European 
timber and wood products and to a consideration 
of various teclinical aspects of the industry. 



TREATY INFORMATION 



' Ibid., Apr. 27, 1959, p. 602. 

* For text, see ibid., Sept. 20, 1954, p. 393. 



Current Actions 



MULTILATERAL 

Health 

Amendments to articles 24 and 25 of the World Health 
Organization Constitution of July 22, 1946 (TIAS 
1808 ) . Adopted by the Twelfth World Health Assembly, 
Geneva May 28, 1959. Enters into force when accepted 
by two-thirds of the members in accordance with their 
respective constitutional processes. 

Acceptances deposited: Haiti, August 10, 1959; Aus- 
tralia, August 12, 1959. 

Telecommunication 

International telecommunication convention. Signed at 
Buenos Aires December 22, 1952. Entered into force 
January 1, 1954. TIAS 3266. 
Ratification deposited: Costa Rica, August 24, 1959. 

Weather 

Convention of the World Meteorological Organization. 
Done at Washington October 11, 1947. :^ntered into 
force March 23, 1950. TIAS 2052. 
Accession deposited: Iran, September 30, 1959. 

Wheat 

International wheat agi-eement, 1959, with annex. Opened 
for signature at Washington April 6 through 24. 19.")9. 
Entered into force July 16, 1959, for part I and parts III 
to VIII, and August 1, 19.59, for part II. TIAS 4302. 
Acceptance deposited: Indonesia, September 22, 1959. 



BILATERAL 

Belgium 

Agreement amending the agreement for cooperation con- 
cerning civil uses of atomic energy of June 15, 1955, as 
amended (TIAS 3301, 3738). Signed at Washington 
July 22, 1959. Entered into force September 29, 1959. 

Burma 

Agreement amending the economic cooperation agreement 
of March 21, 19.57 (TIAS 3931). Effected by exchange 
of notes at Rangoon September 12, 1959. Entered into 
force September 12, 1959. 



Ocfober 79, 7959 



565 



Cuba 

Convention for the conservation of shrimp. Signed at 
Habana August 15, 1958. Entered into force September 
4, 1959. 
Proclaimed ly the President: September 16, 1959. 

Norway 

Agreement amending annex C of the mutual defense as- 
sistance agreement of January 27, 1950 (TIAS 2016). 
Effected by exchange of notes at Oslo August 31 and 
September 9, 1959. Entered into force September 9, 
1959. 



DEPARTMENT AND FOREIGN SERVICE 



President Designates Officers 
To Act as Secretary of State 

white House press release dated September 30 
WHITE HOUSE ANNOUNCEMENT 

The President on September 30 approved an 
Executive order which establishes the order of 
succession for principal officers in the Department 
of State in case of the death, resignation, absence, 
or sickness of the Secretary of State. This order, 
which supersedes a previous Executive order on 
the subject,' is occasioned by Public Law 86-117, 
approved July 30, 1959, which makes provision 
for an alternate title for the third-ranking officer 
of the Department of State. 

The following designated officers of the Depart- 
ment are now authorized to act, in the order of 
succession indicated, as Secretary of State until 
a successor is appointed, or until the absence or 
sickness of the incumbent shall cease : 

1. Under Secretary of State. 

2. Under Secretary of State for Political 
Affairs. 

3. Deputy Under Secretaries of State in the 
order designated by the Secretary or Acting Sec- 
retary of State or according to their lengths of 
service. 

4. Assistant Secretaries of State in the order 
designated by the Secretary or Acting Secretary 
or according to their lengths of service. 

The order also notes that, pursuant to law, any 



officer specified by the President shall act as Sec- 
retary of State. 



EXECUTIVE ORDER 10839' 

Designating Cebtain Officers 
To Act as Secbetaby of State 

By virtue of authority vested in me by section 179 of 
the Revised Statutes (5 U.S.C. 6), and as President of the 
United States, it is ordered as follows : 

In case of the death, resignation, absence, or sickness 
of the Secretary of State and the Under Secretary of 
State, the following-designated officers of the Department 
of State shall, in the order of succession indicated, act as 
Secretary of State until a successor is appointed or until 
the absence or sickness of the incumbent shall cease : 

1. Under Secretary of State for Political Affairs or 
Under Secretary of State for Economic Affairs, as may 
be designated by the President pursuant to the act of 
July 30, 1959, 73 Stat. 266. 

2. Deputy Under Secretaries of State, (a) in such order 
of succession as the Secretary of State (or the Under 
Secretary of State when acting as Secretary) may by 
order designate from time to time, or (b) if no such desig- 
nation order is in effect at the time, in the order of the 
lengths of service as Deputy Under Secretaries. 

3. Assistant Secretaries of State, (a) in such order of 
succession as the Secretary of State (or the Under Secre- 
tary of State when acting as Secretary) may by order 
designate from time to time, or (b) if no such designa- 
tion order is in effect at the time, in the order of the 
lengths of service as Assistant Secretaries. 

The President may at any time, in pursuance of law 
but without regard to the foregoing provisions of this 
order, direct that an officer specified by the President shall 
act as Secretary of State 

Executive Order No. 10791 of November 28, 1958, is 
hereby superseded. 



/j t,jL>y ^-i^O-iCi^ A/^*^^^ 



The White House, 
Septctnber 30, 1959. 



Designations 

William A. Crawford as director. Office of Research and 
Analysis for Sino-Soviet Bloc, Bureau of Intelligence and 
Research, effective September 29. 

Arthur B. Eiiinions III as deputy director. Office of 
Southwest I'aciflc Affairs, Bureau of Far Eastern Affairs, 
effective October 1. 

Lewis K. Gleeck, Jr., as special assistant, SEATt> 
Affairs, Bureau of Far Eastern Affairs, effective Octo- 
ber 1. 



'For text of Executive Order 10791 of Nov. 28, 1958, 
eee Bulletin of Dec. 22, 1958, p. 1031. 



"21 Fcii. A'(!7. 7939. 



566 



Department of State Bulletin 



October 19, 1959 



Ind 



ex 



Vol. XLI, No. 1060 



Agriculture. Polish Minister of Agriculture Visits 

United States 555 

Atomic Energy. Order Provides for Carrying Out 
of Atomic Energy Amendments (text of Execu- 
tive order) 554 

Australia. The Role of American Investment in 

Australia (Sebald) 556 

Canada. Vieves Invited on Renegotiation of Cana- 
dian Textile Concessions 561 

Department and Foreign Service 

Designations (Crawford, Emmons, Gleeck) . . . 566 
President Designates Officers To Act as Secretary 

of State (text of proclamation) 566 

Economic Affairs 

Aiding the Less Developed Nations, a Cooperative 
Venture : Annual Meetings of IBRD, IMF, and 
IFC (Anderson, Dillon, Eisenhower, Upton) . . 5.31 

President Amends Proclamation on Wool-Fabric 

Tariff Quota (text of proclamation) .... 559 

The Role of American Investment in Australia 

(Sebald) 556 

Under Secretary Dillon's News Conference of Sep- 
tember 30 547 

U.S. Welcomes French Move To Reduce Import 
Restrictions 559 

Views Invited on Renegotiation of Canadian 

Textile Concessions 561 

Educational Exchange. Polish Minister of Agri- 
culture Visits United States 555 

France. U.S. Welcomes French Move To Reduce 

Import Restrictions 559 

Germany. Reflections on the Khrushchev Visit 

(Berding) 544 

International Organizations and Conferences 

Aiding the Less Developed Nations, a Cooperative 
Venture: Annual Meetings of IBRD, IMF, and 
IPC (Anderson, Dillon, Eisenhower, Upton) . . 531 

17th Session of ECE Timber Committee (dele- 
gate) 565 

Italy. United States and Italy ReaflBrm Their 

Close Ties (text of joint communiques) . . . 541 

Laos. SEATO Members Consider Situation in 

Southeast Asia (text of communiques) .... 564 

Mutual Security. DLP Lists Total Commitments 

as of September 15, 1959 563 

Poland 

General Pulaski's Memorial Day, 1959 (text of 
proclamation) 555 

Polish Minister of Agriculture Visits United 

States 5.55 

Presidential Documents 

Aiding the Less Developed Nations, a Cooperative 
Venture : Annual Meetings of IBRD, IMF, and 
IFC 531 

General Pulaski's Memorial Day, 1959 5.j5 

Order Provides for Carrying Out of Atomic Energy 
Amendments 554 

President Amends Proclamation on Wool-Fabric 

Tariff Quota 559 

President Designates Officers To Act as Secretary 

of State 566 

Southeast Asia Treaty Organization 

Gleeck designated as special assistant, SEATO 

Affairs, Bureau of Far Eastern Affairs . . . 566 



SEATO Members Consider Situation in Southeast 

Asia (text of communiques) 564 

Treaty Information. Current Actions 565 

U.S.S.R. 

Reflections on the Khrushchev Visit (Berding) . 544 
Under Secretary Dillon's News Conference of 

September 30 547 

Name Indetr 

Anderson, Robert B 532 

Berding, Andrew H 544 

Crawford, William A 566 

Dillon, Douglas 537, 547 

Eisenhower, President 531, 554, 555, 559, 566 

Emmons, Arthur B., Ill 566 

Gleeck, Lewis E., jr 566 

Nixon, Richard M 543 

Pella, Giu.seppe 541 

Sebald, William J 556 

Segni, Antonio 541, 543 

Upton, T. Graydon 540 



Check List of Department of State 


Press Releases: September 28-October 4 


Press releases may be obtained from the News 


Division, Department of State, Washington 25, 


D.C. 




Release issued prior to September 28 which ap- | 


pears 


in this issue of the Bulletin Is No. 674 of 


September 25. 1 


No. 


Date Snbject 


677 


9/28 Visit of Polish Minister of Agriculture. 


678 


9/28 SEATO communique. 


679 


9/28 Visit of Prime Minister Segni of Italy 




(rewrite). 


t680 


9/29 Rubottom: "Hemispheric Progress 




Based on Understanding." 


*681 


9/29 Educational exchange (Guatemala). 


*682 


9/29 Cultural exchange (Brazil). 


683 


9/30 Dillon: news conference statement on 




Soviet trade (combined with No. 




687). 


684 


9/30 Renegotiation of textile concessions by 




Canada. 


t685 


9/30 Closing of U.S. consulate at Niagara 




Falls. 


*686 


9/30 Cultural exchange (Brazil). 


687 


9/30 Dillon: news conference of September 

30. 
9/30 Nixon and Segni : exchange of greetings. 


688 


t689 


9/30 Educational exchange agreement with 




U.A.R. 


690 


10/1 French removal of discrimination 




against dollar imports. 


•691 


10/1 Itinerary of Polish Minister of Agricul- 




ture. 


692 


10/1 Berding: D.C. League of Republican 




Women. 


t693 


10/2 Photographic exhibition of Korean mon- 




uments (rewrite). 


694 


10/2 Delegate to ECE Timber Committee (re- 




write). 


695 


10/2 U.S.-Italian joint communique. 


*Not printed. 


tHeld for a later issue of the Buixktin. 



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President Eisenhower's 
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August—September 1959 

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DEPOSITORY. 
Vol. XLI, No. 1061 October 26, 1959 

STRENGTHENING THE FOUNDATIONS OF FREE- 
DOM IN THE FAR EAST • by Under Secretary Dillon . 571 

SECRETARY HERTER'S NEWS CONFERENCE OF 

OCTOBER 6 575 

PROSPECTS FOR FORTHCOMING NEGOTIATIONS 

ON MAJOR WORLD ISSUES • by Deputy Under Sec 
retary Merchant 588 

HEMISPHERIC PROGRESS BASED ON UNDERSTAND- 

ING • by Assistant Secretary Rubottom • . • 593 

CENTRAL TREATY ORGANIZATION HOLDS MIN- 
ISTERIAL MEETING AT WASHINGTON 

Remarks by Vice President Nixon ••• 581 

Statement by Secretary Herter 583 

Texts of Final Communique and Declaration 585 

IMMIGRATION LEGISLATION, 1959 • Article by Frank 

L. Auerbach 600 

For index see inside back cover 



THE DEPARTMENT OF STATE 




Vol. XLI, No. 1061 • Publication 6901 
October 26, 1959 



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strengthening the Foundations of Freedom in the Far East 



hy Under Secretary Dillon} 



I am happy to be here with you tonight and to 
have this timely opportunity to review recent de- 
velopments in the Far East. You have been 
privileged during your conference to hear some of 
Asia's most distinguished leaders talk of their 
policies and problems in frank and constructive 
terms. I, in turn, wish to discuss United States 
policies toward the Far East and to outline the 
manner in which they are helping to strengthen 
the foundations of freedom in that important area 
of tlie world. 

One year ago, almost to the day, the late John 
Foster Dulles stood before this same Council 
during the height of the sustained Chinese Com- 
munist attacks in tlie Taiwan Straits. He de- 
fined with unmistakable clarity the stakes in- 
volved in that attack. He said,^ 

What is involved is a Communist challenge to the basic 
principle of peace that armed force should not be used 
for aggression. Upon the observance and enforcement of 
that principle depends world order everywhere. 

Secretary Dulles declared that the United 
States would stand firm and not retreat in the 
face of armed aggression. We, and our ally, the 
Government of the Kepublic of China, stood firm. 
The challenge was met, and the Communist resort 
to naked force failed of its goal. Ten million 
hmnan beings on Taiwan were not delivered into 
slavery. 

You will recall that at this time last year the 

' Address made before the Far East-America Coun- 
cil of Commerce and Industry, Inc., at New York, N.Y., 
on Oct. 7 (press release 706). 

■ Bulletin of Oct. 13, 19S8, p. 561. 



United States, in accordance with the obligations 
of the United Nations Charter, also reiterated its 
guiding philosophy of readiness to settle this dis- 
pute "by peaceful means in such a manner that 
international peace and security, and justice, are 
not endangered." We then welcomed the move by 
the Chinese Communist Premier, Chou En-lai, to 
resume bilateral ambassadorial talks begun at 
Geneva in 1955 and expressed the hope that an ac- 
ceptable cease-fire could be arranged.'* 

Shortly thereafter this reiteration of peaceful 
intent was reinforced by President Eisenhower 
when he suggested, in correspondence with Chair- 
man Khrushchev, that the Soviet Union urge the 
Chinese Communists to turn to a policy of peace- 
ful settlement in the Taiwan area.* 



Developments in Taiwan Area 

Now, in retrospect, what was the net result of 
tlie tumultuous events in the Taiwan area during 
the autumn of 1958 ? 

I would answer that a potential war was averted 
by our firm stand against the Chinese Commmiist 
use of force. 

Since then the heavy Eed bombardment of Au- 
gust 1958 has dwindled to token shelling on a 
senseless, alternate-day basis. Wliile tensions have 
been somewhat relaxed, basic fears of irrational 
and explosive behavior by the Cloinese Commu- 
nists persist. 

The Peiping regime has demonstrated abso- 



lUd., Sept. 29, 1958, p. 481. 
Ihid., p. 498. 



October 26, 1959 



571 



lutely no disposition to make the slightest move 
toward an agi'eement on a cease-fire or a renuncia- 
tion of force. Its recalcitrance at the negotiating 
table has been maintained since the talks were re- 
simied at Warsaw more than a full year ago. The 
depth of the Peiping regime's contempt for world 
opinion became fully apparent this past spring, 
when it cruelly and ruthlessly extinguished the 
last vestiges of freedom in Tibet. The Dalai Lama 
fled to India in order to preserve the symbol of the 
spiritual and temporal resistance of the courageous 
Tibetan people. This gross shock to Asian 
and world sensibilities was still reverberating 
when Peiping unleashed a torrent of abuse against 
one of the world's most dedicated men, India's 
Prime Minister Nehru. That action, coupled with 
incursions across the frontier into Indian terri- 
tory, compounded the shocked dismay produced 
by the brutal massacres in Tibet. 

Question of Peaceful Settlement of Disputes 

Very recently we have had cause to hope that 
at long last the Communists were preparing to put 
aside the use of threats and force to achieve their 
objectives. We recall the joint communique at 
Camp David wherein President Eisenhower and 
Chairman Khrushchev agreed that "all outstand- 
ing international questions should be settled not 
by the application of force but by peaceful means 
through negotiation." ^ 

Then Mr. Khrushchev flew to Peiping for the 
10th amiivei*sai-y celebration of the Chinese Com- 
munist regime. In liis three major addresses at 
Peiping he counseled against the vise of force, re- 
peating some of the peace and disarmament 
themes he had used here in the United States. 

I regret having to report that the initial Chi- 
nese Communist reaction was not encouraging. 
For the Chinese Communist authorities appear to 
have heavily edited Chairman Khrushchev's 
speeches in the initial domestic output of their 
controlled radio. Deleted were Khrushchev's 
strictures against "testing the capitalist system 
by force," against waging "predatory wars," and 
against "imposing socialism by force of arms" 
because "the people would not understand." 

Instead, the population of mainland China and 
the Chinese Communist armed forces were 



' Ibid., Ovt 12, 1959, p. 499. 
572 



treated to an order of the day by Chinese Commu- 
nist Defense Minister Lin Piao, at the October 1 
National Day parade in Peiping, in which Lin 
Piao attacked the alleged "aggressive schemes" of 
the United States. He then proclaimed that no 
foreign countries would be allowed to interfere in 
Peiping's so-called "liljeration" of Taiwan. These 
words were echoed by otlier Chinese Communist 
leaders, including Liu Shao-chi, the Chairman, or 
cliief of state, of the Chinese Commiuiist regime. 

In the light of the Chinese Communist record of 
the last decade — and especially that of the past 
year — these pronouncements forbid any optimism 
on the future of Peiping's foreign policy. Too 
fresh in our memories are the attacks on the off- 
shore islands, Tibet, Laos, the borders of India — 
the intensive hate-America campaigns, and the in- 
stitution of the commune system with its milita- 
ristic overtones. 

But in spite of all this we still must hope that 
the Chinese Communist overlords will, after re- 
flection, heed the advice of the Soviet Union, 
whose leadership over the international Com- 
munist movement they themselves recognize, 
and adhere to Chairman Khrushchev's proposi- 
tion that differences must be settled by negotiation 
and not by force. 

Of special import is the stepping up by the Chi- 
nese Commimists of their propaganda attaclvs 
against the United States, while, at the same time, 
they continue to emphasize their close ties with 
the Soviet LTnion and tlieir subordination to their 
senior partner in what they call the "great camp 
of peace, democracy, and socialism headed by the 
Soviet Union." If we are to believe the Commu- 
nists' own reiterated recognition of Soviet leader- 
ship, then the men in the Kremlin must share re- 
sponsibility for Peiping's actions. 

The time has come for all of us, on both sides 
of the Iron and Bamboo Curtains, to face squarely 
the issue of whether we can afford to permit any 
dispute anywhere to be settled by recourse to arms. 
We firmly reject attempts by Communist leadei-s 
to justify what they call "just, revolutionary 
wars" or "wars of liberation." War is war, nc 
matter where or why it may be fought. Peace also 
is indivisible. Peace is not the prerogative of the 
Communists alone, nor can it be applied only to 
areas outside the immediate concern of the Sino- 
Soviet bloc. 

Department of State BulletirM 



e!in 



There can be no glossing over the danger that an 
attempt to seize Taiwan and the oifshore islands 
is just as likely to embroil the world community 
in total war as is the launching of any other type 
of war. 

There can be no exceptions in the matter of 
peaceful settlement of disputes. 

Once this fact adequately impresses itself upon 
the thinking of our shrinking planet and is re- 
flected in its actions and outlook everywhere, there 
will assuredly be an atmosphere conducive to the 
broad-scale disarmament and peaceful prograss so 
fervently desired by all men of good will. 

We earnestly hope Peiping will see the light. 

The Asian Revolution 

I am confident that our hope is shared by the 
peoples of free Asia, who are crying out today for 
e<'onomic and social progress. Tliey are driving 
for gi-eater freedom for the human spirit. They 
are reaching out for a larger share of the good 
things of life. They are at the beginning stage 
of the continuing Asian revolution, a profound 
social and political upheaval wliich has drawn 
much of its inspiration from om- own liberal revo- 
lution. It is marked by a surging tide of national- 
ism which is wiping out old landmarks, casting 
aside outworn institutions, and eliminating social 
inequities. In their stead, free Asia's leaders, who 
are straggling to build new, just, and abundant 
societies, are adopting and adapting many of the 
social, intellectual, political, and material aspects 
of our own democratic tradition. With energy 
and tenacity of purpose the free nations of the 
area have vastly enlarged their possibility of 
achieving security, stability, and progress. 

Their development is menaced by the new 
Chinese Communist imperialism. The United 
States, through SEATO and other mutual defense 
arrangements, stands ready to help the free peo- 
ples of Asia throw back Communist aggression. 
But how much better if we could concentrate our 
efforts entirely on cooperative programs for their 
social and economic progress! 

United States policy is designed to promote 
the independence of the free nations of Asia and 
to help them build strong and free societies. The 
basic purpose of this policy is to assure that the 
continuing Asian social revolution will not falter 
because of a lack of miderstanding or too feeble 
a response. 

October 26, 1959 



Building Mutual Understanding 

Mutual undei-standing is being built in myriad 
ways. Our contacts with free Asia are wider now 
than at any time in the past. Our officials meet 
with theirs in Asia, in the United States, at the 
United Nations, and at scores of international 
councils dealing with all matters affecting our 
daily lives and the future of our interdependent 
world. Our citizens are traveling, working, and 
studying in Asian countries in larger numbers 
than ever before. Asian architecture influences 
our housing. Asian art and culture are under- 



President Eisenhower Sends Greetings 
to Far East-America Council 

Message of President Eisenhower ^ 

The White House 
Washington, October 7, 1959 

It is a pleasure to send my greetings to those 
attending the 12th Annual Far East Conference of 
the Far East-America Council of Commerce and 
Industry. 

Throughout history, misunderstanding of the in- 
tent and capabilities of other peoples has been one 
of the chief causes of war. Mindful of this, the 
United States has in recent weeks taken new steps 
to increase understanding of our peaceful intent 
and of our determination and ability to stand fast 
by the principles of free men. 

Lasting peace, however. Is not built of under- 
standing alone. It is reinforced by constant vig- 
ilance. In the face of existing conditions in the Far 
East, I want to reaffirm the constancy of our poli- 
cies toward that area. I believe that developments 
are increasingly demonstrating the correctness of 
our position. 

To vigilance and imderstanding which provide the 
groundwork of peace, there must be added the im- 
petus of positive achievements. We Americans 
know this well and we are willing — indeed, eager — 
to contribute of our substance and labors, where 
they are wanted, in the mutual building of a better 
world. The endeavors and deliberations here in 
the Far East-America Council of Commerce and 
Industry are, I firmly believe, representative of 
what should be done on an ever-increasing scale — • 
a combining of Asian and American energies and 
ideas on the part of private enterprises, individual 
citizens and governments. This is a joint effort 
which is filled with promise for mankind. 

DWIQHT D. ElSENHOWEB 



' Read by Under Secretary Dillon before the Far 
East-America Council at New York, N.Y., on Oct. 
7 (press release 707). 



573 



stood and admired by Americans. Asian leaders 
are enabled lo see at first liand the workings of 
our governmental and private institutions. Asia 
is no. longer a far-off romantic mystery to Amer- 
icans, and America is no longer a remote dream 
to Asians. We have mutually learned that inter- 
dependence is essential to fi-eedom and progress. 

Asian eagerness for betterment, which some- 
times borders on impatience, is something you 
sense as j'ou travel through the area. Last spring, 
while enroute to the SEATO Council meeting in 
New Zealand and to the United States chiefs of 
mission conference at Baguio in the Philippines, 
I could feel the electric nature of this driving 
force. 

Although the chief purpose of calling our am- 
bassadors to Baguio was to examine tlie problems 
of the area stemming from the menace of Com- 
mimist China, we found ourselves more often dis- 
cussing how we could help the Asians to help 
themselves. We examined the weaknesses of free 
Asia: the lack of capital, the problems growing 
out of multiplying populations, the continuing 
shortage of Asians skilled in the arts of govern- 
ment, industry, and technology. But we did so 
as the basis of a search for ways in which orderly 
progress and development could be acliieved. 

It was the consensus of the conference that great 
progress is indeed being made in free Asia but 
that final attaimnent of the aspirations of the 
peoples of the area could only be accomplished in 
an atmosphere of peace and freedom from attack. 



The methods tlirough which we and Asia work 
together — the mutual security program, the De- 
velopment Loan Fund, trade, multilateral en- 
deavors such as the LT.X.'s ECAFE [Economic 
Commission for Asia and the Far East] and tlie 
Colombo Plan — are known to you all and have 
been examined in your panels during the past 2 
days. By the time you convene again a year from 
now, it is my hope that another cooperative project 
will be ready to play an active part in man's his- 
toric struggle against poverty and disease. I refer 
to the new International Development Associa- 
tion, an American initiative which last week was 
approved in principle by the 68 member nations 
of the World Bank.« The IDA would be truly 
international in character and would provide a 
means whereby all of the prospering nations of 
the free world could join in contributing to the 
financial needs of the newly developing areas. It 
merits your careful study and active support. 

The Asian revolution has made an auspicious 
beginning, but it is only a beginning. Its con- 
tinuing success will depend in no small measure 
upon us and iipon the other economically ad- 
vanced nations of the free world. We must per- 
severe in our efforts to help strengtlien the founda- 
tions of freedom in the Far East and to build upon 
these foundations the progress, enlightenment, 
and mutual relationships needed to meet commu- 
nism's challenge to freedom and progress. 



° Ibid., Oct. 19, 1959, p. 541. 



574 



Department of Slafe Bulletin 



Secretary Herter's News Conference of October 6 



Press release 703 dated October 6 

Secretary Herter: Ladies and gentlemen, thei'e 
is one question that I suspect might come up 
during the course of tliis conference, and I am 
taking the liberty of answering it even before it 
is posed, and that has to do with a possible sum- 
mit conference. 

We liave been communicating with our allies on 
the various subjects brought up between the Presi- 
dent and Chairman Khrushchev at Camp David.' 
Among these is a possible summit conference. 
The matter of a summit conference, and when or 
where it miglit be held, is, as the President said 
last week, a subject for consultation with other 
nations. Until that process has been completed, 
I cannot properly say anything further. 

I realize that this may be a somewhat cryptic 
answer — copies of it will be available ° — but that 
is the answer to that question. 

Q. Can you say, Mr. Secretary, when that pro- 
cess might he completed? Is it a matter of days, 
weeks, or months? 

A. I can't tell you. 

Q. Mr. Secretary, would you care to su/m up for 
lis the points of value in the Khrushchev visit and 
discussions of the Chairman with President 
Eisenhower, in the way of second thoughts, since 
a loeeh has elapsed since the Premier has left this 
country? 

A. I take it that that question is on points of 
value. That, it seems to me, would have to be 
answered in two parts. First, the short-range 
value : I think that the meetings did have value in 



' For text of a joint communique issued on Sept. 27 
at the conclusion of tallis between President Eisenhower 
and Soviet Premier Nikita S. Khrushchev, see Bulletin 
of Oct. 12, 1959, p. 499. 

' The above paragraph was also released separately as 
press release 702 dated October 6. 



easing to some degree existing tensions. I think 
that they had value in allowing the President and 
Mr. Khrushchev to get to know each other better 
as individuals. And I gather from such state- 
ments as have been made by Mr. Khrushchev since 
lie left the United States that he is publicly stat- 
ing that he has a very liigh regard for the Presi- 
dent. I think the trip as a whole had value in 
that certainly Mr. Khrushchev must have seen a 
good many different facets of American life with 
which lie had not previously been familiar, and 
undoubtedly that had its good points. 

Witli respexjt to the substance of the conversa- 
tions themselves, as you have been informed by 
the President and by the communique, the de- 
cisions, particularly with respect to Berlin, cer- 
tainly have eased the question of any threat in 
connection with further negotiations that might 
be imdertaken. 

With respect to disarmament, which was dis- 
cussed only in very general t«rms, as I imder- 
stand it, between the President and Mr. Khru- 
shchev, there was certainly in Mr. Khrushchev's 
attitude a degree of real sincerity, which, of course, 
has to be balanced against the proposal itself, as 
it was made at the United Nations, and as it has 
sometimes, rather skeptically I think, been tenned 
a propaganda document. 

From a long-range point of view I think it still 
remains to be seen how valuable the visit has been. 
On tliat score, I can only say that time will tell, 
but I would like to be optimistic. 

Q. Mr. Secretary, could you give us your views 
on the present United Arab Republic position with 
respect to harring IsraeVs ships, or those ships 
carrying Israel commodities, through the Suez 
Canal, and would you favor a Middle East sum- 
mit meeting hetween Arab and Israel leaders? 

A. With respect to the first part of that ques- 
tion, I expressed myself, I think, very succinctly 



Ocfober 26, 7959 



575 



at the United Nations.' With respect to the sec- 
ond part of the question, we feel that this matter 
is one, of course, primarily between Israel and 
the U.A.R. But I am sure that we would welcome 
mutually acceptable direct conversations between 
the Egyptians and the Israelis with respect to 
points of issue between them. 

Question of Negotiations on Berlin 

Q. Mr. Secretary, you have just said that the 
talks at Camp David with respect to Berlin have 
eased the situation with respect to any threat 
toioard future negotiations. In your speech hefore 
the United Nations, which happened iefore the 
Camp David talks, you said it was only after this 
threat had heen loithdrawn that the Westej'n 
Powers agreed to negotiate in the interest of pecuce- 
ful exchange. 

A. Yes, the threat had been withdrawn, but 
only temporarily, as you may recall it. And the 
point we were negotiating about at the end was 
a temporary settlement over Berlin. And, actu- 
ally, the breaking point in those discussions came 
when we could receive no assurances from the Rus- 
sians that if negotiations were resumed, after "x" 
period of time, our rights would not be impaired. 

Q. So that was the point on which toe hroke off 
the talks, that there existed a new threat during 
the Berlin talks? 

A. Yes, it was made clear that they would give 
no assurances that, after a given period of time 
for a modus vivendi for Berlin, if negotiations 
were resumed our rights would remain miim- 
paired. 

Q. Mr. Secretary, you have spoken, of course, 
of the easing of tensions due to the withdrawal of 
the threat. Now do you have any specific infor- 
mation that would give you any hope that we have 
any tnore chance of reaching an agreement on Ber- 
lin and on Germany at the summit meeting than 
we had at the Geneva conference last summer? 

A. No, I can't say that I can give you that as- 
surance. 

Q. Mr. Secretary, since the Santiago confer- 
ence^ do you think that the Caribbean situa- 



• Bulletin of Oct. 5, 1959, p. 467. 

♦ Ihid,., Aug. 31, 1959, p. 299, and Sept. 7, 1959, p. 342. 



tion and the general political problems ha/ve eased 
enough so that the hemisphere can settle down to 
tackle basic economic problems again? 

A. Well, I think the Santiago conference and 
the resolutions that came out of that, and the steps 
that were taken with respect to the Peace Com- 
mission were very helpful. I can judge only by 
the fact that, with respect to the activities in the 
Caribbean that had assumed somewhat alarming 
proportions, there has been no resumption of those 
activities since the Santiago conference. So that I 
am hopeful that that situation will continue. 

Q. Mr. Secretary, the CENTO [Central 
Treaty Organization'] conference will meet tomor- 
row — the former Baghdad Pact.^ Can you tell us 
lohat you expect that conference to accomplish 
and lohether the United States is planning any 
particular initiatives at that conference? 

A. Well, as you know, this is a regvdarly sched- 
uled conference of the Baghdad Pact in wliich we 
agreed to act as host here. On the agenda, as far 
as I know, there are no specific new matters. I 
think that there will be a general review of the 
overall situation. I think there will be a very 
free interchange of opinion. I am hopeful that 
the CENTO activities in which we have partici- 
pated will be felt by the member nations to have 
made real progress in strengthening the area. 

Q. Mr. Secretary, the Secretary General of 
CENTO, Mr. [M. 0. A.'] Baig, said again the 
other day at a news conference that he wishes the 
United States would join the organization.. Could 
you tell us at this point why the United States will 
not join it noio, as a full member rather than as 
an observer? 

A. Yes. That matter has been considered very 
carefully. We have considered our relationships 
with other nations of the area. We have consid- 
ered domestic problems. And, on balance, we 
have decided that we can probably be of more 
assistance in maintaining tranquillity and helping 
to develop that area by remaining as an obsen^er 
rather than as a full member. 

Q. Mr. Secretary, Mr. [Dean] Acheson said in 
Germany yesterday, or the day before, that Allied 
rights in Berlin were fundamental and, in effect, 
not negotiable. Can you tell us what, on the sub- 

' See p. 5S1. 



576 



Department of State Bulletin 



ject of Berlin, you think could he negotiated with- 
out compromising Allied rights? 

A. No. At this stage of tlie game I would 
rather not go into the possible permutations and 
combinations. I think we made it ])retty clear 
at Geneva as to what we considered were matters 
of principle on which we would not negotiate or 
not give. But from the point of view of details 
within that framework, I would rather not go into 
that. Obviously, this is a matter for consultation 
and not for us to advance a particular plan at this 
time. 

Communist China 

Q. Mr. Secretary, do you see any easdng of ten- 
sion in the Far East as a result of Mr. Khru- 
shchev's visit here or of his visit to Peiping? 

A. Well, it is hard to tell. I would say that 
I can see no visible easing of tensions as between 
Chinese Communists and ourselves. They re- 
peated their statement with respect to Taiwan, 
and they repeated a number of times a statement 
with regard to the attitude of the United States — 
"imperialist" attitude and the "aggressive" atti- 
tude of the United States. 

With respect to ]\Ir. Khrushchev's handling of 
himself in Peiping, there were things of very 
real interest. Tliere was no question but that he 
talked quite eloquently with respect to the so- 
lution of international problems by peaceful 
means. He indicated that it was the attitude of 
the Soviet Government^ — and he referred in that 
particular case to his own Government — to try to 
woi'k out international problems along these lines. 
He clearly was not speaking for the Communist 
Chinese at that point. 

Perhaps equally interesting was the fact that 
Mr. Mao [Tse-timg] never made any statement at 
all, either on Mr. Khrushchev's arrival or on his 
departure, at the time that Mr. Khrushcliev made 
some statements at tlie airport, nor at any time 
during the conference. These matters, naturally, 
are difficult to evaluate, but they would seem to 
indicate that perhaps Mr. Khrushchev and the 
Soviet Govermnent of Eussia are taking a rather 
different line from the point of view of the solu- 
tion of international problems from tliat of the 
Conunmiist Chinese. 

Q. Under what circumstances would you con- 
sider diplomutic relations with the Comm/unist 



regime of China? What conditions do you regard 
as necessary for diplomatic recognition? 

A. Well, we have never laid out specific condi- 
tions. We have often enumerated, as Mr. Rob- 
ertson did at the United Nations," some of the 
very basic difficulties that have grown up between 
us. The continued imprisonment contrary to 
signed agreement of five American citizens in 
China is one. The continuing overt threat to use 
force against Taiwan is another. The continued 
condemnation as an aggressor of the Chinese 
Communists by the United Nations is the third. 
I wouldn't say that that was an exclusive list, and 
I wouldn't want to say that we would necessarily 
recognize Communist China if all of those condi- 
tions were rectified, but they are among some of 
the very real grievances that we have and it makes 
us feel that it is not in our national interest to 
recognize the Chinese Communists at this time. 

Q. Mr. Secretary, the President suggested thoA 
Mr. Khrushchev m,ight mention the five prison- 
ers in China when he got there. Have we had any 
word about whether or not he did? 

A. No, we have had no word on that. 

Disarmament 

Q. Mr. Secretary, you said that you were con- 
vinced that Mr. Khrushchev was sincere in what 
he said about disarmaTnent. In the talks at Camp 
David did the Russians give any indication at all 
of tohat they are prepared to do on control and 
inspection? 

A. No, there were no detailed discussions of 
control and inspection. That has been the stmn- 
bling block of any successful negotiations on this 
subject, and nothing was said in regard to specifics 
in that matter. 

Q. Mr. Secretary, do you consider that the 
threat to Berlin, about which you were talking 
earlier, has now been indefinitely lifted or perma- 
nently lifted? What phrasing would you use? 

A. I presume that the word "indefinitely" is 
better than the word "permanently." "Indefi- 
nitely" was the word that was used in connection 



•Bulletin of Oct. 12, 1959, p. 517. 



October 26, 1959 



577 



with the prolongation of the conversations — that 
they would not be prolonged indefinitely. 

Q. Mr. Secretary, in regard to the nuclear 
test han negotiations, there was nothing in the 
convmunique on that subject. Was that discussed 
at Oamp David in any detail? 

A. As far as I know it was not discussed be- 
tween the President and Mr. Khrushchev. It 
was discussed by myself with Mr. [Andrei] Gro- 
myko [Soviet Foreign Minister], and no new light 
was shed on reaching agreement there. 

Q. Mr. Secretary, you have said that Red 
China and the Soviet Union seemed to he taking 
a different foreign policy line. What do you see 
in the immediate and distant future as far as their 
relations are concerned? Will there ie a split, or 
will they make up, or what is going to happen? 

A. Well, I would rather not begin prophesy- 
ing what is going to happen there. How deep the 
differences rim is very difficult to gage. Certainly 
from the point of view of outward appearances 
I would imagine they would continue to indicate 
they are working veiy closely together and are 
good friends. I think all we can do is watch very 
carefully the development of their relationship 
and probably have to accumulate considerably 
more evidence before we could reach a definitive 
conclusion. 

Q. Mr. Secretary, in their discussions at Camp 
David did Mr. Khrushchev exclude specifically 
from his agreement to forswear force in the set- 
tlement of international peace the question of 
Formosa or any other countries or areas which he 
would regard in the category of being '•''liberated''''? 

A. No, he didn't exclude any area, but, as you 
know from the President's press conference, he 
did express himself pretty strongly on the subject 
of Formosa. 

Q. Mr. Secretary, Mr. Khrushchev insists that 
he never meant any threat to the Allies hi Bei'lin 
in the first place. The Wesfs conclusion is about 
180 degrees opposite that. Against that back- 
ground are you convinced that his interpretation 
of this withdrawal of threat indefinitely is tlie 
same as ours? 

A. I don't think there is any difference of in- 
terpretation. 



Q. Well, Mr. Secretary, do we regard the re- 
moval of the time limit in itself sufficient warrant 
to go to a sw7im.it meeting? Previously the Pres- 
ident has always said there must be some indica- 
tion of substantive agreement. 

A. There I can only refer you to the Presi- 
dent's own words in his press conference last week. 

Q. Mr. Secretary, do yo\t, feel there might have 
to be a reappraisal of the Western position on 
Berlin and Germany if the Labor Party is victo- 
rious in the British elections? 

A. I wouldn't want to speculate on that. 

Q. Mr. Secretary, there have been reports that 
a plan for Berliji was worked out at Camp David. 
Is there any substance to that? 

A. No, no plan whatever for Berlin was work- 
ed out at Camp David, nor were specifics discussed 
as far as I know. 

Q. Mr. Secretary, at the U.N. today the Soviet 
delegate said that our support of Turkey against 
Poland for the Security Council's seat amounted 
to a manifestation of the cold war. How does this 
line fit with the interpretation that we understood 
the Khrushchev talks left here that ive tvere 
going to end this cold-war talk? 

A. I don't know why the backing of one can- 
didate against another for a U.N. seat should be 
considered as part of the cold war. That is Mr. 
[A. A.] Sobolev's interpi-etation ; it is not ours. 
"We don't consider that a part of the cold war in 
any way. 

Q. Mr. Secretary, do you have evidence of any 
progress being made towai^d a solution of the 
Algerian situation? 

A. No, I don't think we have any information 
other than that which you have. I think that, of 
course, we are tremendously heartened by General 
de Gaulle's proposal, and I think that on the 
whole its reception and particularly the con- 
structive and I tliink courageous attitude tliat 
Mr. [Habib] Bourguiba [President of Tunisia] 
has taken to be of assistance in this matter is most 
encouraging. 

Q. Mr. Secretary, when you put the summit 
question aside by your statement, does that also 
put aside any question of a resumption of your 
foreign m,inisters meeting or any other sub-for- 



578 



Departmenf of Sfafe Bulletin 



eign-ministers-level discussions among tlie, Allies 
ivith the Soviets? 

A. Well, it would, yes, because in effect the 
question of the simunit and then of foreign min- 
istei-s meetings is somewhat allied fi'om the point 
of view of when and how one begins resuming 
negotiation. 

Q. There m now, then, no timetable of any kind 
of any negotiation with tJie Soviet Union at any 
level? Is that correct? 

A. I think I gave you my answer in the very 
first statement. 

Q. Mr. Secretary, could you define the Ameri- 
can position as to its responsibilhy for training 
troops in Laos? 

A. Well, as you know, we have some techni- 
cians in Laos who are working with the French, 
who have the responsibility for the training of 
the troops in Laos. 

Q. Sir, is it true that we cannot train these 
people beyond the 30-caliber weapons? 

A. I couldn't tell you what the limitation is on 
weapons. The Geneva accord, I think, has re- 
stricted the army in size and in weapons to what 
was required for internal purpose-s, and I can't 
tell you just what the caliber of the restrictions 
might have been. 

Q. Mr. Secretary, sir, regarding weapons, the 
West Germans to date have purposely avoided 
buying the big rockets, the big IRBM^s. They 
have stuck to the purchase of small defensive 
weapons. Do you think this restraint is wise, or 
do you think they ought to build up and we should 
cooperate with them in sending IRBM's to West 
Germany? 

A. That I would rather not say is wise or im- 
wise. I assume what they are doing is in ac- 
cordance with the NATO decision as to what 
presents the best balanced type of defensive pos- 
ture in Europe. 

Q. Mr. Secretary, if we can't talk about the 
summit conference, there h another type of meet- 
ing that the Foreign Minister of Colombia [Julio 
Cesar Turbay'\ proposed to you a week ago, 
namely, that the hemisphere foreign 7ninisters 
meet each year shortly in advance of the V.N. 
General Assembly. Do you have any comment 
on that? 



A. No, I think it's something that should cer- 
tainly be explored. They have nimisterial meet- 
ings, of course, on a regular basis every 5 years, 
and then they can be called in consultation when- 
ever any situation would make that a desirable 
thing. Whether they should hold a regular an- 
nual meeting or not is something that I imagine 
they will discuss among themselves at the Quito 
conference in February. 

Q. Mr. Secretary, if I might return to tohat 
you said ahout Israel and the U.A.R., has there 
been any development in the Middle East that 
would lead, you to suppose that a conversation, a 
direct conversation, between Israel and the U.A.R. 
might be possible? 

A. I have no knowledge of any. What hap- 
pened at the LTnited Nations, the offer that was 
made by Israel to undertake discussions at any 
time with the U.A.R., free from any prearranged 
condition, at least raises the question anew. 
Whether it is going to be possible to reach agree- 
ment for that type of discussion, I don't know. 
I merely said that, if they could reach agreement 
and could get into that kind of discussion, we 
would welcome it. 

Q. Mr. Secretary, is there any timetable for bi- 
lateral negotiations with the Russians, such as the 
lend-lease matter? ' 

A. No, no timetable. 

Definition of Threat to Berlin 

Q. Mr. Secretary, would you spell out a little bit 
more in detail what you mean when say the Camp 
David talks eased the threat to Berlin, and par- 
ticularly would you define what the threat to 
Berlin is, or was? 

A. Well, the threat to Berlin, as it was stated 
and has been restated on several occasions, was 
that the Russians would draw up a peace treaty 
with the East Germans and would transfer to the 
East Germans all the rights of sovereignty in the 
routes of access to Berlin ; that thereafter the obli- 
gations which the Russians imdertook to maintain 
the open commimications for the people of West 
Bei'lin, whether they were persons or goods or 



' For background, see the transcript of Under Secretary 
DiUon's news conference of Sept. 30, iUd., Oct. 19, 1959, 
p. 547. 



Ocfober 26, J 959 



579 



communications, would then be transferred to the 
East Germans. But if we made any move to main- 
tain our own rights as against the East Germans, 
the Kussians would then support the East Ger- 
mans. That was the tlireat that was made. 

Q. That goes hack to November of last year? 

A. That's right. 

Q. But the Soviet position still is, I believe, that 
the West should get out of Berlin. So in that re- 
spect, I suppose the threat to Berlin remains? 

A. The Russian position, as I understand it, is 
that the occupation status of our troops in Berlin 
should not be perpetuated forever. 

Q. Mr. Secretary, if we can try once more on 
the question of negotiations for a summit confer- 
ence, do you expect these to bear any fruit before 
the Presidenfs return visit to the Soviet Union 
next year? 

A. Oh, I couldn't tell you on that. 

Q. Mr. Secretary, there seems to have been a 
backing aioay from, saying, since the Camp David 
talks, that occupation troops would remain in 
Berlin until the reunification of Germany. 

A. There has been no change. 

Q. Has there been a change in that position? 

A. No. 

Q. Do we intend to maintain occupation troops, 
the ~Westei'n Powers, in Berlin until the reunifica- 
tion is accomplished? 

A. That is the position we have taken, and we 
see no reason to move away from it. 

Soviet Responsibility as Leader of Communist World 

Q. Mr. Secretary, Iww do you I'cconcile what 
you said about the possibility of a split between 
Russia and China on foreign policy and the state- 
ment by the Chinese or the communique at the 
end of Khrushchev''s visit there that they acknowl- 
edge Khrushchev as head of the Communist 
world? 

A. Well, that was a very difficult one to ex- 
plain. There is no question in our mind that that 
demand for recognition as the leader of the Com- 
munist world places upon the Russians a degree 



■ For text of the Soviet note of Nov. 27 and the U.S. 
reply, see xbiA., Jan. 19, 1959, p. 79. 



of responsibility for the actions of other mem- 
bers of the bloc that is very real. 

Q. Mr. Secretary, before Mr. KhrusJichev came 
to this country, he seemed to be represented as 
being almost obsessed tvith the need of such a 
visit and a summit conference. Since lie has 
achieved this visit, do we have any indication that 
his insistence on a summit conference has eased? 

A. No, I wouldn't say that it has eased. I 
think he has always wanted a summit conference. 
I think that the President made it very clear that 
as a result of what happened at Camp David some 
of the real objections that he had to holding a 
sununit conference have been removed. 

Q. Mr. Secretary, you said that this Soviet 
leadership posture in the Communist bloc placed a 
degree of responsibility on the Russians in the ac- 
tions of other inerribers of the bloc. Was that 
point made to Mr. Khrushchev by the President 
during the talks? 

A. I think it has been made a number of times. 
I think Mr. Khrushchev appreciates the fact that 
we feel that they have a great degi-ee of responsi- 
bility for the actions of other members of the 
bloc. 

Q. Mr. Secretary, is there any inconsistency in 
your statement just a few moments ago that we 
have not separated the Berlin issue from the 
whole issue of German reunification and Presi- 
dent Eisenho%oer''s statement at his last news con- 
ference that the Berlin situation was an abnormal 
situation? 

A. There is nothing inconsistent in that. Mr. 
Couve de Murville, Mr. Selwyn Lloyd, and I all 
agreed in Geneva that it was an abnormal situa- 
tion, that it w^as abnormal in that you still had 
occupation troops after a period of 14 years, that 
likewise it was a free city surrounded by an inim- 
ical Commimist group and that was an abnormal 
situation. We have never denied that for a 
moment. 

Q. Has it not been our position though that it 
was abnormal because the division of Gernuiny 
xoas abnormal? 

A. We have certainly taken tliat position. 

Q. Mr. Secretary, I wonder if we can get this 
Berlin thing a little clearer. You have defined 



580 



DepartmeM of State Bulletin 



the threat to Berlin and then you have defined 
our position and you said the Russians have with- 
draivn the threat. Have they said tliey will not 
now loithdraw their troops and hand over author- 
ity? Or just what is the situation? Or did they 
fust postpone the threat? 

A. What they have said is that they put no time 
limit on tlie negotiations, which in effect meant 
that there would be no unilateral action on their 
part, while the negotiations are continuing. 

Q. But this is still tlieir goal, to hand it over 
to the East Germans? 

A. It is very much their goal. In fact, there 
was a message from Mr. Khrushchev to the East 
Germans sent, I thinli today, congratulating them 
on the valiant stand that they are making to get 
rid of the occupation forces in Berlin. 

Q. Mr. Secretary .1 were you saying, in effect, to 



Mr. [Chalmers^ Roberts, a minute ago, that ive 
would hold Russia responsible for the action of 
other Communist nations? Was that the effect of 
your remark to him, sir? 

A. To a degi'ee they are responsible, as long as 
tliey are maintaining this position of being the 
leader in the bloc and insisting, as they seem to 
have eacli time they go to China, that the Chinese 
recognize that leadership. 

Q. Do you mean by that, sir, that in the view 
of American policy the Soviet Government has 
some responsibility for China's action toward 
Korea, or Form,osa, or Laos, specific places of that 
kind? 

A. A degree of responsibility, as long as they 
maintain that they are the leaders of the bloc. 

Q. Thank you, sir. 



Central Treaty Organization Holds Ministerial Meeting at Washington 



The seventh session of the Ministerial Council of 
the Central Treaty Organization (formerly the 
Baghdad Pact) was held at Washington, D.C., 
October 7-9. Following are texts of the welcom- 
ing remarks made by Vice President Nixon on 
October 7, a statement made by Secretary Herter 
at the opening meeting, the final communique, and 
a declaration on the Communist propaganda cam- 
paign against Iran, together with a list of the U.S. 
observer delegation. 



REMARKS BY VICE PRESIDENT NIXON 

It is a very great pleasure for me to welcome 
to Washington the distinguished representatives 
of the states of the Central Treaty Organization.^ 
And not only is it a pleasure in my official position 
but also because my wife and I have had the priv- 
ilege of visiting each of the countries who are 



' CENTO is an alliance between Iran, Pakistan, Turkey, 
and the United Kingdom. The United States, which 
participates In various CENTO activities, was represented 
by an observer delegation headed by Secretary Herter. 



represented in this meeting today and of being 
warmly received as the representatives of the 
people and the Government of the United States, 
and therefore I welcome the opportunity to extend 
our greetings to you on this occasion. To you, 
Mr. Secretary General [M.O.A. Baig], and the 
members of your staff, we extend an equally warm 
welcome. 

The people and the Government of the United 
States are pleased that the first meeting of the 
CENTO Council under its new name is here in 
our Nation's capital. 

Development of Collective Security 

Twice in our century mankind has suffered the 
devastating scourge of global war. In the wake 
of the physical and moral desolation that is inevi- 
tably its aftermath we have had cause to reflect 
upon its futility. It has spurred our search for 
more constructive ways in resolving international 
disputes. 

The close of World War II saw the establish- 
ment of the United Nations, which kindled our 



Ocfofaer 26, 7959 



581 



hopes that a new era of human understanding had 
begun. Then, as now, we hope this era will be one 
in which international society could make peace- 
fully and with justice those adjustments required 
of it by the steady course of human progi-ess. 
Thus the thousands of those who follow in our 
footsteps will enjoy to the fullest our God-given 
privilege of life and God-given opportunities free 
from fear. But peace, we have learned through 
long experience, cannot be taken for granted; to 
be maintained it must be waged vigorously, un- 
ceasingly, and courageously, and the resiDonsibility 
for doing so rests with all free nations, each in 
accordance with its capability. Indeed, the awe- 
some nature of modern technological develop- 
ments has thrust upon us the consciousness of 
interdependence of nations as never before in 
human history. 

The years since World War II have regrettably 
been marked by the continuous probing by inter- 
national communism to impose its ideology and 
its domination on others. Free men and nations 
have had to meet this challenge everywhere. 
Many have responded to it by unifying their in- 
dividual attempts in a single large efi'ort. This 
is the genesis of collective security throughout the 
world. It is defensive in nature, it has been bred 
of an imperative need, and collective security re- 
quires sacrifice. It is no panacea for all problems. 
Yet it provides a firm foundation of combined 
strength which benefits us all. Further, it con- 
stitutes a solid basis from which we can fearlessly 
continue our never-ending efforts to resolve etjui- 
tably and with firmness free- world differences with 
the Communist bloc. 

The Central Treaty Organization, together with 
its sister organizations, NATO [North Atlantic 
Treaty Organization] in Europe and SEATO 
[Southeast Asia Ti'eaty Organization] in south- 
east Asia, are significant manifestations of this 
regional collective assumption of responsibility to 
wage peace. 

May I say in that connection that in view of re- 
cent world developments perhaps there might be in 
some quarters a tendency to suggest that we might 
relax our efforts among our various collective 
treaty organizations in view of the change in the 
world situation tliat some may seek. I think, as 
our Secretary of State pointed out very effec- 
tively in his press conference yesterday [October 



6],^ it is at least hopeful at the present time that 
we may have opened the road to negotiations on 
the question of Berlin. But, as he also pointed 
out, we must not have any illusions ; as far as the 
basic differences are concerned — the positions that 
are taken — they remain the same as they were. 
And, as the Secretary General pointed out in liis 
remarks this morning, the greater danger to in- 
dependence, to freedom, which exists in many 
parts of the world, and particularly in the nations 
represented here, is not aggression across borders, 
but it is aggression which in effect goes beneath, 
through subversion, attempting to subvert the 
freely chosen governments which are involved. 

Peaceful Competition 

We hear a great deal about peaceful competi- 
tion these days. We all welcome it, certainly, all 
the nations that are members of CENTO. We in 
the United States, in addition, welcome peaceful 
competition, but we also realize that if competition 
is to remain peaceful there must be rules of the 
game wliich all will follow. It must be fair, and 
there cannot be one set of rules by some and an- 
other set of rules by others. 

In that connection we must also bear in mind 
that it is not enough to say that we rule out the 
use of force across the border and that competition 
thereby becomes peaceful, because the kind of sub- 
version that has been described by the Secretary 
General here today certainly would endanger the 
concept of peaceful competition which we would 
all welcome in the event that we could agree to 
rules which we are to follow. CENTO has al- 
ready played an important role in the rules to be 
followed. It forges new links of friendship 
among the nations of the world. Similarly it has 
established the basis of partnership between those 
nations and their Western friends, based on a 
nuitual respect and complete equality. 

Despite the natural difl'erences of views and 
opinions which understandably arise on occasion 
among friends, CENTO stands today stronger 
than ever, and the American people recognize fully 
this is a reflection of the determination of its mem- 
bers to be and to remain free and independent. It 
is in this spirit of deep appreciation and complete 
confidence that the United States — our Govern- 



• See i>. ."7."). 



582 



Department of State Bulletin 



ment, our people — welcomes the Council here 
today. 

The United States has been closely associated 
with CENTO since its beginning almost 5 years 
ago. We have contributed materially and morally 
to strengthening the CENTO states' postures and 
to improving their economic capabilities, and may 
I emphasize, what I know you realize, that this 
has been done entirely without strings. Our in- 
terest in this program, in all of those in which we 
are engaged around the world, is to stand for the 
very independence wliich we have ourselves, and 
we want, as far as other nations are concerned, only 
the same opportunity that we have to remain in- 
dependent, our people to be free. 

I assure you that the United States will con- 
tinue to support CENTO through all feasible and 
appropriate means. The American people will 
watch the Council's deliberations during these 
next few days with keen interest, and we are con- 
fident they will be crowned with success. You may 
be assured we will do our part to make it so. And 
when they have been concluded you also can be 
sure that you, each of you, will carry home with 
you the esteem, the good wishes, and the warm 
affection of the American people. 

Thank you very much. 



STATEMENT BY SECRETARY HERTER 

Press release 704 dated October 7 

I join with Vice President Nixon in warmly wel- 
coming to Washington this distinguished gather- 
ing of the Ministerial Council of the Central 
Treaty Organization. The Goverimient of the 
United States, though an observer in CENTO, is 
pleased to be host to this session. Your presence 
here today is further attestation of the readiness 
of the United States to continue to give strong 
support to CENTO and its programs. It is also 
a source of deep personal satisfaction to me to 
have the opportunity to acquaint myself at first 
hand with the work of the CENTO association. 

The United States has long enjoyed close rela- 
tions with the several CENTO member states. 
Those with the United Kingdom are well known 
and require no elaboration here. There is perhaps 
less awareness of our valued relations with Tui'key, 
Iran, and Pakistan. It seems appropriate, there- 



fore, to dwell briefly on these relations. Growing 
out of many decades of mutually beneficial associa- 
tion between the peoples of these countries and 
private American citizens — businessmen, educa- 
tors, doctors, missionaries, and others — they were 
forged to a new firmness in the difficult years 
which followed World War II. It was during 
this period, too, that Pakistan took its place as a 
respected member of the family of independent na- 
tions. Since that time, these three nations have 
been making great strides forward in developing 
themselves. 

True to its traditions the United States whole- 
heartedly sympathized with these aspirations. 
Further, it lent moral and material aid to make 
their achievement possible. It has continued to do 
so. United States economic and military assist- 
ance programs to Turkey, Iran, and Pakistan have 
been substantial. Thus, for example, United 
States economic aid to these three countries in the 
fiscal year ending June 30, 1958, totaled approxi- 
mately $300 million. In the fiscal year ending 
June 30, 1959, it amounted to approximately $470 
million — an increase of more than 50 percent. 

The United States finnly believes that its aid 
programs have contributed materially to the 
strengthening of these three countries. These 
progi'ams are developed in close consultation with 
the recipient states. They are not imposed. To 
the extent that appropriations and its other global 
commitments allow, the United States will con- 
tinue to assist Turkey, Iran, and Pakistan in pro- 
moting their security and their economic develop- 
ment. 

Flowing from all of this has been a growing 
affinity of interest between the United States and 
these countries and a greater understanding of 
each other's problems. Differences of emphasis 
occasionally arise. This is understandable even 
among friends. Wliat is significant, however, is 
that the mutual trust which has developed between 
us enables any such differences to be resolved 
quickly and to our conunon satisfaction. 



U.S. Association With CENTO 

United States association with CENTO is yet 
another link in the chain of friendship which 
binds us to these states. It is an important link. 
It complements those close and valued direct re- 



Ocfober 26, 7959 



583 



lations to which I have already referred. It has 
its origins in the recognition of the fact that at 
least some of our common objectives might use- 
fully be furthered by peaceful collective effort as 
well as individual endeavor. The promotion and 
strengthening of peace and freedom tliroughout 
the world, the fostering of a respect for the dig- 
nity of the individual, the maintenance of national 
independence, and finally the creation of greater 
opportunities for the individual to improve his 
way of life — all of these transcend the relations 
between any two states and are rightly a shared 
concern of the family of nations. Collective se- 
curity arrangements such as CENTO contribute 
materially toward achieving those objectives. 

United States support of CENTO, both moral 
and material, has been given since the Organiza- 
tion was conceived almost 5 years ago. This sup- 
port has not wavered. The United States partici- 
pates actively in CENTO defense planning de- 
signed to assist the CENTO members to resist any 
Communist attempt to undermine their security 
and independence. Supplementing its massive bi- 
lateral assistance to the regional states, the United 
States supports CENTO's multilateral economic 
programs and is actively engaged in implementing 
various CENTO-endorsed projects.' These are 
designed to further the concept of regionalism. 
Chief among them is the microwave telecommuni- 
cations project which will link the three capitals 
of the regional states. When completed — and 
construction work is expected to begin later this 
year — this will be the longest single telecommuni- 
cations network in the world. 

Clearly, the United States cannot underwrite 
all CENTO economic projects. Indeed, it has 
honest doubts about the economic potential of 
some proposals. It will continue, however, to ex- 
plore with the CENTO member states ways and 
means in which the United States may be able to 
help in this very important aspect of CENTO 
activities. 

The bilateral executive agreements with the 
regional states were consummated earlier tliis 
year.* These agreements reaffirmed the deter- 



" For a U.S. statement before the CENTO Economic 
Committee on Sept. 1, see Bulletin of Oct. 5, 1959, 
p. 487. 

* For text, see ibid., Mar. 23, 1959, p. 417. 



mination of the United States to continue the eco- 
nomic and military aid programs to these coun- 
tries. Further, they assure United States support 
in case of Communist aggression. The agreements 
were developed in the context of existing congres- 
sional legislation, specifically the joint resolu- 
tion to promote peace and stability in the Middle 
East and the Mutual Security Act. The United 
States firmly believes they go far toward meeting 
the acknowledged security requirements of the 
CENTO regional states. Moreover, they provide 
a suitable framework in which the United States 
can pursue its strong support of CENTO ob- 
jectives. 

These agreements are public documents. So is 
the CENTO treaty. They were concluded in 
accordance with article 61 of the United Nations 
Charter and support its purposes and principles. 
They are registered with the United Nations. 
Thus it is clear for all to see — who wish to see — 
that CENTO and United States association with 
it are purely defensive arrangements. They 
threaten no one. Their cardinal purpose is to 
deter aggression by strengthening the defensive 
capabilities of its members and by promoting their 
sound economic development in the interests of 
political stability. 



Achievements of CENTO 

CENTO has now been in existence for almost 5 
years. Yet there are some who still profess to 
deny its significance. It may be appropriate, 
therefore, to pause for a moment and consider its 
achievements to date. 

First, CENTO stands today as a symbol of the 
determination of its members to maintain their 
independence and of their unshakable belief that 
this can best be achieved through collective 
security. 

Second, CENTO is a partnership which includes 
three of the great states of the Middle East region. 
The scope of this partnershii^ is broad. It in- 
cludes defense cooperation but also embraces po- 
litical, economic, and cultural association. It is 
implemented through various media. Some, such 
as joint military exercises, attract the public eye 
through press comment. Others, while no less 
significant, have been pursued more quietly and 
are perhaps less well Iviiown. These are the 



584 



Department of Slafe BuUefin 



numerous teclinical meetings at all levels, the 
active CENTO technical assistance program, joint 
efforts to relax visa restrictions among the regional 
states, trade promotion, the prevention of smug- 
gling, and tlie many other spheres of constructive 
endeavor tiiat CENTO has fostered. All contrib- 
ute to the cross-fertilization of ideas. Thus, the 
effect of CENTO activities extends beyond formal 
governmental exchange. Its benefits seep down, 
gradually but surely, to the people as well. The 
United States is confident that from this associa- 
tion will develop a wider public understanding of 
common problems and of the very real value of 
sharing experience. The seed of close partner- 
ship has been sown. The roots have taken hold. 
It will require care and attention. If these are 
given, it promises to flourish even more fully in 
the years ahead. 

Third, it has provided the framework for West- 
ern cooperation with the regional states. This 
cooperation is not based on outmoded concepts of 
foreign domination. Rather it is based on the 
twin pillars of mutual respect and complete equal- 
ity among states. Its objective is simple — the 
maintenance of peace and justice. 

The United States is convinced that CENTO has 
made good and sound progress. Some, to be sure, 
would like to accelerate the pace of CENTO activ- 
ity. This deserves to be encouraged, for such im- 
patience is a healthy phenomenon. Indeed, it is 
a spur to further accomplishment. Much con- 
structive work remains to be done, but no one will 
forget the long road that the CENTO partnership 
has already traveled. With mutual confidence 
and common effort by all, CENTO can achieve 
its objectives. It will increasingly benefit the 
peoples whom it serves in the promotion of peace 
and stability. In this laudable endeavor, I repeat 
to you here, CENTO will continue to enjoy strong 
United States support. 

Gentlemen, the United States observer delega- 
tion looks forward to participating in the delibera- 
tions of this conference and to making a construc- 
tive contribution to them. 

Thank you. 

FINAL COMMUNIQUE 

The Seventh Session of the Ministerial Council of the 
Central Treaty Organization was held in Waehingtou 



from Octoher 7-9, 10.50. The delegations from countries 
participating in this meeting were led h.v : 

(1) H. E. Dr. Manouohehr EKhbal Prime Minister of Iran 
(li) H. B. Mr. Manziir Qndir Minister for Foreign 

Affairs and Commonwealth 
Relations, Pakistan 
(Hi) H. E. Mr. Adnan Menderis Prime Minister of Turkey 
(Iv) H. E. Sir Harold Caccla, Her Britannic Majesty's 

G. C. M. G., K. C. V. O. Ambassador to the 
United States 
(v) The Hon. Christian A. Herter Secretary of State, 

United States of 
America. 

Secretary Herter, as host, was in the chair. 

The Session was inaugurated by the Ilonourable Rich- 
ard M. Nixon, Vice President of the United States. 

The Council recognized that the holding of a Minis- 
terial Meeting in Washington for the first time was an 
open expression of the importtiice attached to the Cen- 
tral Treaty Organization by the United States Govern- 
ment and the American people and of the vital role of the 
United States in strengthening the efforts of the member 
States to guard their freedom by collective security. The 
Council welcomed the conclusion of bilateral agreements 
last March between the United States and the regional 
members. They noted with gratification the determination 
of the United States to assist the signatory nations to 
maintain their security and independence while simulta- 
neously contributing to the enhancement of their economic 
potential. 

This meeting of the Ministerial Council was the first to 
take place under the new name of the Organization. The 
name. Central Treaty Organization, signifies that the 
countries occupying a central area between the NATO and 
SEATO regions have contirnied their decision to join to- 
gether for mutual defence and economic development. 

In keeping with the tradition of free and frank expres- 
sion of views at all its meetings, the Council conducted a 
review of the international situation as it affects the 
participating States. 

The Council believed that the exchanges of visits be- 
tween Western and Russian statesmen had brought 
nearer the possibility of reducing some of the tension 
of the cold war by re-opening negotiations on Berlin and 
disarmament. On the other hand there remain deep- 
seated causes of anxiety, and Communist activities con- 
tinue unabated. The danger of subversion abetted by 
foreign propaganda, for instance, remains particularly 
acute. The members of CENTO are especially exposed to 
this danger because of their geographical position at one 
of the cross-roads of the world. The Council noted with 
concern the continuance of Soviet propaganda against 
Iran, and they have issued a separate declaration on 
this subject. The Council concluded that it was only 
by the exercise of constant vigilance, maintenance of 
their strength, and by solidarity with one another that 
they could hope to guard against these dangers and 
promote the reduction of international tension. 

The Council emphasized that the Central Treaty 
Organization exists exclusively for defensive purposes. 



Oc/ober 26, 1959 

627160—59 3 



585 



that it threatens no one, and that it sincerely desires 
to have close and friendly relations with all other States, 
and particularly with the neighbouring States in the 
Region. 

The establishment of a Permanent Military Deputies 
Group, to begin operation on January 1st, 1960, with 
headquarters in Ankara, was viewed by the Council as 
a further step by the CENTO countries to provide for 
their security and defence. The Council directed that 
the question of Command Structure be studied by the 
Military Committee and the results of its study be 
placed before the Council at its next meeting. 

The Council reviewed the work of the Central Treaty 
Organization since the last Session of the Ministerial 
Council in Karachi in January 1959,' and adopted the 
Reports of the Secretary General and the various 
Committees. 

The opening of the Nuclear Centre in Tehran in June 
last by His Imperial Majesty the Shahinshah of Iran 
and the commencement of courses for regional scientists 
in the application of atomic energy for peaceful purposes 
in fields such as agriculture, medicine and industry, were 
noted with satisfaction. 

The Council recognised that considerable progress had 
been made in the fields of bilateral and multilateral 
technical assistance. Increasingly effective use was being 
made of experts, fellowships and special equipment to 
meet common problems. 

The construction of the modern microwave telecom- 
munications link between regional capitals which began 
recently was noted by the Council with satisfaction. 
The Council gave its approval to three new Joint Proj- 
ects, put forward by the Economic Committee — the Cizre- 
Hakkari-Shivelan road and the development of the Ports 
of Iskenderun and Trabzon. 

The Council decided to hold its next Session in Tehran 
about the end of April 1960. 



DECLARATION ON PROPAGANDA CAMPAIGN 
AGAINST IRAN 

The Council have considered the propaganda campaign 
being conducted by the Communist bloc against Iran. 

Since the last meeting of the Council this campaign 
has been greatly intensified, particularly in the field of 
radio broadcasting, and is still continuing. Communist 
broadcasts in Persian, for example, which now total 74 
hours weekly, contain a high proportion of attacks against 
the Iranian Government. Overt Communist broadcasts 
have been supplemented by a clandestine station — calling 
Itself "The National Voice of Iran" and broadcasting in 
Persian. It purports to operate from within Iran but is in 
fact located within Soviet territory in the Caucasus. This 
station is broadcasting particularly violent and abusive 
programmes which have not only included direct appeals 
to the Iranian people to overthrow their government, but 



have violated the most elementary canons of international 
usage by making personal attacks on the Head of State. 

The Council condemn this propaganda, which is mark- 
edly at variance with current efforts to reduce world ten- 
sion. They express the hope that those responsible will 
in future comply with the Resolution adopted unani- 
mously by the General Assembly of the United Nations on 
August 21, 1958, concerning non-interference in the inter- 
nal affairs of other states." 

The Council express their admiration for the dignity 
and determination shown by his Imperial Majesty the 
Shahanshah, the Iranian Government and people in stand- 
ing firm and united in the face of these attacks. 



U.S. OBSERVER DELEGATION 

The Department of State announced on October 
5 (press release 696) that Secretary of State 
Cliristian A. Herter would be the U.S. Observer 
to the meeting of the Ministerial Council of the 
Central Treaty Organization scheduled to be held 
at Washington, D.C., October 7-9. Following is 
a list of the other members of the delegation. 

Alternate V.8. Observers 

Robert Murphy, Under Secretary of State for Political 

Affairs 
Loy W. Henderson, Deputy Under Secretary of State for 

Administration 

Senior Advisers 

Leland Barrows, Regional Director for Near East and 
South Asia Operations, international Cooperation 
Administration 

Andrew H. Berding, Assistant Secretary of State for Pub- 
lic Affairs 

John N. Irwin II, Assistant Secretary of Defense for In- 
ternational Security Affairs 

G. Lewis Jones, Jr., Assistant Secretary of State for Near 
Eastern and South Asian Affairs 

Harold Kehm, Department of State 

Donald D. Kennedy, Deputy Assistant Secretary of State 
for Near Eastern and South Asian Affairs 

Robert H. Knight, Deputy Assistant Secretary of De- 
fense for International Security Affairs 

Jason Paige, Department of State 

G. Frederick Reinhardt, Counselor of the Department of 
State 

Lt. Gen. Elmer J. Rogers, United States Air Force 

Gerard C. Smith, Assistant Secretary of State for Policy 
Planning 

Gen. Nathan F. Twining, Chairman, Joint Chiefs of Staff 

Fletcher Warren, Ambassador to Turkey and Council 
Deputy 

William H. Weathersby, Deputy Assistant Director (Near 
East, South Asia and Africa), U.S. Information Agency. 



' IbUI., Mar. 2, 1059, p. 318. 



586 



' For text, see ihid., Sept. 15, 1958, p. 411. 

Department of State Bulletin 



President Eisenhower Talks 
With Prime Minister of Iran 

White House preBS release dated October 9 

The President today [October 9] had the pleas- 
ure of meeting with Prime Minister [Manuchehr] 
Eqbal of Iran, who represented liis country at 
the Central Treaty Organization meeting which 
has just terminated.^ There was a very useful and 
interesting discussion concerning matters of mu- 
tual interest. 

The President told the Prime Minister that 
Iran's courageous and unyielding stand in the 
face of the intensive and unwarranted propa- 
ganda attacks of recent months has evoked the 
admiration of all free nations. The President 
reaffirmed United States support for the collective 
efforts of Iran and other free nations to maintain 
their independence. In stressing the gravity with 
which the United States would view a threat to the 
territorial integrity and political independence of 
Iran, the President recalled the provisions of the 
bilateral agreement of cooperation with Iran ^ and 
the joint resolution to promote peace and stability 
in the Middle East. ^ 



Development Loans 

Iran 

The United States and Iran signed on October 
7 at AVashington, D.C., an agi-eement under which 
the Development Loan Fmid will lend $25 million 
to Iran to assist in financing the construction of 
369 miles of highway in that country. For details, 
see Department of State pi'ess release 708 dated 
October 7. 



' See p. 581. 

^ For backgromid, see Bulletin of Mar. 23, 1959, p. 416. 

' For text, see md.. Mar. 2.j, 1957, p. 481. 



President Designates U.S. Members 
of Permanent Court of Arbitration 

The Department of State announced on Octo- 
ber 5 (press release 698) that the President had 
designated Bethuel Matthew Webster and Harold 
Armstrong Smith as members, on the part of the 
United States of America, of the Pennanent 
Court of Arbitration. They replace Thomas K. 
Finletter and Adrian S. Fisher, whose terms have 
expired. 

The Permanent Court of Arbitration was 
established under the Hague Conventions for the 
Pacific Settlement of International Disputes of 
1899 and 1907. The Permanent Court, which has 
its seat at The Hague, was organized "with the 
object of facilitating an immediate recourse to 
arbitration for international differences which it 
has not been possible to settle by diplomacy." 
Pursuant to the provisions of the two conventions 
each signatory power is directed to select four 
persons as arbitrators. The persons selected are 
inscribed as members of the Permanent Court in 
a list which is notified to all the contracting pow- 
ers. It is further provided in the two conven- 
tions that, when any contracting powers desire 
to have recourse to the Court for the settlement 
of a difference that has arisen between them, the 
arbitratoi-s called upon to fomi the competent 
tribunal to decide the difference must be chosen 
from the general list of the members of the Court. 

The members of the Permanent Court of Ar- 
bitration also carry out the function, pursuant to 
the statute of the Intel-national Court of Justice, 
of making nominations of pei-sons for election by 
the U.N. General Assembly and the Security 
Council as members of the International Court of 
Justice. 

The members of the Permanent Court of Ar- 
bitration are designated for terms of 6 years. The 
other two members of the U.S. national group on 
the Court are Herman Phleger and David W. 
Peck. 



October 26, 7959 



587 



Prospects for Forthcoming Negotiations on Major World Issues 



hy Deputy Under Secretary Merchant '■ 



Nearly 4 years ago Secretary of State Dulles 
addressed another distinguished Philadelphia 
audience at a moment of unusual significance.^ It 
was on February 26, 1956, the day after Mr. 
Khrushchev delivered his speech in Moscow to 
the 20th Party Congress attacking the cult of the 
individual which had grown up around Joseph 
Stalin. The reputation of one individual was 
destroyed. Today another personality seems to 
have taken his place. 

I think we might keep this event in mind as we 
turn our attention to recent events and to the indi- 
vidual role played by this leader of the Soviet 
people who, in the last few weeks, has crossed 
the breadtli of our land ^ and that of Communist 
China as well. This is carrying personal diplo- 
macy to extraordinary limits. It is also a demon- 
stration of stamina which compels admiration. 

A natural question is, what of Mr. Klirushchev's 
visit to the United States ? We have certainly seen 
the agile, self-confident, calcidated performance 
of a virtuoso, a master of the earthy aphorism. 
Much of his public talk has been incisive and 
stimulating. It has been good for all of us to 
have seen at close hand this formidable man and 
to study his reactions. If we are left unimpressed 
by his interpretation of history, past and future, 



' Address made before the World Affairs Council of 
Philadelphia at Philadelphia, Pa., on Oct. 9 (press release 
712). 

"Bulletin of Mar. 5, 19.56, p. 36.3. 

' Nikita S. Khrushchev, Chairman of the Council of 
Ministers of the U.S.S.R., vi.sited the United States Sept. 
15-27. For statements made at the time of his arrival 
see ibid., Oct. .'>, 19.W, p. 470 ; for text of communique issued 
at the conclusion of his talks with President Eisenhower 
at Camp David, see ibid., Oct. 12, 1950, p. 499. 



we must admit respect for Soviet accomplishments 
in the economic, technological, and cultural fields. 

In competitive coexistence the Soviet Union 
under his leadership is a redoubtable opponent. 
For any who doubted this, Mr. Khrushchev's visit 
has applied a wholesome corrective. 

Apart from such an assessment, one turns to 
a consideration of what tangible or substantive 
result has accrued — and what may the immediate 
future hold. A significant result coming from the 
Camp David talks was, I tliink, the removal of 
the immediate threat which since last November 
has hung over Berlin and the Western position 
there. The Soviet Government then informed the 
British, the French, and ourselves that unless we 
accepted its proposal, which called for the termina- 
tion of the occupation regime, the Soviet Govern- 
ment would sign a separate peace treaty with the 
East Germans and transfer to them control of the 
access routes to Berlin from the west.* This meant 
the abandonment of the obligations to us for free 
access which the Soviets had first assumed at the 
end of the war and subsequently reaffirmed. The 
Soviets said moreover that, if we made any move 
to maintain our rights of access and the East 
Germans opposed such an effort, then the Soviets 
would support the East Germans. 

This created a dangerous and difficult problem. 
We — the British, the French, and ourselves — are 
in Berlin by right, as the Soviet Government ac- 
knowledged during the course of the Geneva con- 
ference last summer. But more is involved here 
than the question of legal riglits. There is the 
question of people — more than 2 million stout- 



' For text of Soviet note on Berlin and U.S. reply, see 
iUd., Jan. 19, 1959, p. 79. 



588 



Deparfmenf of Sfa/e BKillel'in 



hearted, free people living in West Berlin. Our 
presence in Berlin, which started as an occupation 
based on rights of conquest, has in reality been 
transformed by time and the expressed wishes of 
the free people of Berlin into what is really a pro- 
tective role. In the West Berlin election of De- 
cember 1958 over 98 percent of the voters 
supported candidates and progi-ams approving 
continued Allied presence. They rely on us for 
their future, and we will not disappoint them. 

This problem— and we must remember that it 
is a problem artificially created by the Soviets a 
year ago — is a difficult and a dangerous one. The 
negotiation will now be resumed in a more hope- 
ful atmosphere. 

Importance of Personal Diplomacy 

In stressing by the example of Berlin the diffi- 
culty of the problems for which peaceful solutions 
must be found, I do not wish to appear to depre- 
cate the importance of personal diplomacy. It is 
important. In fact, to a substantial degree all 
diplomacy is personal. In the last analysis it con- 
cerns itself with people. It involves face-to-face 
discussion and negotiation. We must remember 
that negotiations only appear to deal with ab- 
stractions such as "power" or "sovereignty" or 
"legal rights." Negotiations in simple fact deal 
with people, their land and their property, the 
sea and air around them, and the urge and in- 
spiration that come from history, tradition, re- 
ligion, and all their hopes and fears. Diplomacy, 
then, is dealing with people and their problems. 

Face-to-face encounters between leaders can 
perform a very useful purpose. They can dispel 
misconceptions. Soimder judgments can be 
formed of the other's intentions and the factors 
which motivate his attitudes. In this sense such 
meetings can reduce the risk of miscalculation. 

Of and by itself, however, meetings at what Sir 
Winston Churchill called the summit cannot be 
expected to solve problems in all the infinite and 
complex detail which surroimd them. Even a 
meeting of minds on a main issue still leaves the 
need for long and difficult negotiation. 

Moreover, on the side of the free world the 
power of even the most popular leaders is not 
absolute as it once was with kings and potentates. 
Public opinion in democracies must be developed 
and led. It cannot be dictated to. 



Consequently the most important contribution, 
it seems to me, that can flow from meetings of 
heads of government is a change in atmosphere 
and a resultant improvement in the environment 
in which the negotiation of specific agreements 
can take place. That, it was hoped, would be the 
lasting result of the summit conference at Geneva 
in 1955, though unhappily the subsequent resort to 
detailed negotiations produced no agreements. 

Mr. Khrushchev has come to America and gone. 
He has learned something of us and we of him, 
which is all to the good. The President next 
spring will return his visit, and in the intervening 
months a vista of negotiations is opened up. 

Expansive Vista of Negotiations 

This vista is an expansive one. The General 
Assembly of the United Nations is now in session. 
Here is a forum for useful debate and for the 
exchange of views on many topics, none more 
important than disarmament, which figured in 
the President's Camp David talks with Mr. 
Khrushchev. 

Then early next year the Committee of Ten, 
composed of representatives of the United States, 
France, the United Kmgdom, the Union of Soviet 
Socialist Republics, Bulgaria, Canada, Czecho- 
slovakia, Italy, Poland, and Rumania, will come 
together for more detailed and intensive discus- 
sions of what the President and Mr. Khrushchev 
described as the most important question facing 
the world today — disarmament. This Committee, 
you will recall, was established by agreement 
among the U.S.S.R., Great Britain, France, and 
the United States a month or so ago ' as a result of 
discussions last summer in Geneva with the Soviet 
Foreign Minister concerning the impoilance of 
resuming serious talks after a lapse of nearly 2 
years. 

One of the proposals which the Committee of 
Ten will no doubt consider was that offered by 
Mr. Khrushchev last month in his speech before 
the General Assembly of the United Nations.'' It 



" For text of the Four Power communique on disarma- 
ment negotiations, see ibid., Sept. 28, 19.59, p. 438. 

' For text of the "Declaration of the Soviet Government 
on general and complete disarmament" submitted by Mr. 
Khrushchev on Sept. 18, 1959, see U.N. doc. A/4219. For 
a statement by Secretai? Herter oa the Soviet proposal, 
see Bulletin of Oct. 12, 1959, p. 508. 



Ocfofaer 26, J 959 



589 



was a proposal for general and complete disarma- 
ment. The problem of modern arms — their de- 
structiveness and the economic burden whicli their 
manufacture and maintenance impose — is too 
deadly serious a subject for all hiunanity to fail 
to consider soberly and seriously every proposition 
responsibly put forward. 

It is conceivable that a radical rather than a 
cautious approach will prove the key to the solu- 
tion of this universal problem. As realists, how- 
ever, we must recognize that, apart from the 
technical difficulties, which are enormous, the rock 
on which past efforts to reduce armaments have 
foundered has been the question of inspection and 
control. The Soviet passion for secrecy lias ap- 
parently been responsible for their refusal in the 
past to consider the acceptance of any system of 
verification, which to us is a sine qua non. Where 
mutual trust and confidence are lacking and when 
one is dealing with the question of national sur- 
vival, the safeguard of inspection and control is 
indispensable. Hence, in examining and dis- 
cussing the Soviet proposal, this is an essential 
aspect which we still will want to explore. 

In anticipation of the resumption of serious 
negotiations on the reduction and control of arma- 
ments, the United States Government has been 
intensively reexamining the problem and review- 
ing its past positions. We will also be in consul- 
tation with our participating allies, who, like 
ourselves, approach tliis forthcoming negotia- 
tion with all the seriousness which it deserves. 

Meanwhile the more specialized but neverthe- 
less important negotiation between the Sonnet 
Union, Great Britain, and ourselves on the matter 
of the suspension of nuclear testing will resmne in 
Geneva on October 27, after a recess of some 
weeks. In this conference we have hope that a 
properly safeguarded agreement can be readied 
which at a minimum will result in the cessation of 
nuclear tests in the earth's atmosphere. If even 
such a limited success can be attained, then one 
can rightfully believe that the way has been 
opened for even more important agreements with 
the Soviet Union on even more important 
matters. 

Then, too, I think it a fair speculation that the 
long-talked-of summit conference can be arranged 
in the interval before the President's return visit 
to the Soviet Union. This is a matter for discus- 
sion and consultation with our allies, for such con- 



ferences cannot be held impromptu or lacking the 
necessary preparation. 

This prospect of successive and in some cases 
overlapping conferences is good. Long lapses 
without talk can serve to harden differences and 
render more difficult arrival at agreement. I re- 
member well the opening atmosphere of the Ber- 
lin Conference of Foreign Ministers in January 
1954. To say the least, it was cool. In part at 
least I think that atmosphere was attributable to 
the fact that the Foreign Ministers of France. 
Great Britain, the Soviet Union, and the United 
States had last met in Jmie of 1949. That partic- 
ular conference at Berlin brought no result other 
than wliat communiques traditionally describe as 
"a better understanding of each side's point of 
view." Nevertheless it reestablished contact. It 
also played some small role, I think, in the con- 
clusion of the Austrian treaty 15 months later, for 
the negotiation of that treaty was one of the items 
on the Berlin conference's agenda. 

Now talk and negotiation are good and neces- 
sary. They cannot automatically produce agree- 
ment, and our hopes for the procession of 
negotiation I have listed should not be excessive. 
Meetings at the highest level can promote better 
understanding, and, as I have suggested earlier, 
they can produce for a while at least a better at- 
mosphere in which to sit down around a table and 
seek agreement. But atmosphere and a green 
baize table cannot of themselves breed agreement. 
Profession means nothing imless performance 
follows. 

Issues Dividing the U.S. From the U.S.S.R. 

We would be blind not to recognize the magni- 
tude and the number of tlie issues which divide 
the United States and its allies from the Soviet 
Union and its satellites. 

One does not have to look far nor deep to realize 
that in Europe alone problems exist on which it 
has been impossible in the last 10 or 15 years to 
reach agreement with the Soviet Government. 
Tliere ai-e the peoples of former independent states 
wlio, since the war, have liad governments forced 
on them with no opportunity to express their own 
desires. And we have watclied with a deep sense 
of tragedy the brutal repression wliich followed 
the etl'ort 3 years ago of the Hungarian people to 
establish a government of their own choosing. 
We of America, wlio liave drawn so many of our 



590 



Department of Sfofe Bulletin 



own citizens from that part of the world, have an 
especial undei-st uncling and sympathy for the as- 
pirations of all those peoples. 

Then tliere is the problem of a divided Ger- 
many and, in the heart of the eastern part of that 
country, a divided city — Berlin — one-third Com- 
munist controlled and two-thirds free. The re- 
unification of Germany in freedom has been since 
the end of the war the unswerving objective of 
this country. It remains so. To keep Germany 
separated in two parts is an injustice which we 
cannot condone. We have negotiated literally 
for years with the Soviet Government to achieve 
reunification, most recently for 10 long weeks at 
Geneva last summer. 

I do not need to remind you of the far-reaching 
proposals the Western Powers put forward at 
that time. The Western peace plan ' provided 
for staged processes in the reunification of Ger- 
many with free elections at an appropriate point 
and with detailed security and disarmament pro- 
visions which the Ignited States and its allies 
honestly believe took fairly and fully into account 
any concern the Soviet Union might feel over a 
united Germany. A fre« choice was provided in 
the peace plan for the all-German government to 
adhere to either NATO or the Warsaw Pact. 
Wliatever the choice were to be, the peace plan 
contemplated special measures covering the dis- 
position of forces and the location of installations 
in the area closest to the frontier between a united 
Germany and countries which were members of 
another security pact. Moreover, there was pro- 
vision for agreements between the Four Powers 
and other European countries concerning joint 
reaction against any aggression. 

I have sketched only the highlights of this care- 
fully worked out, detailed plan to indicate its 
reasonableness and the added security which its 
acceptance would bring to the heart of Europe. 
Unfortunately it was not accepted by the Soviet 
delegation at Geneva. In fact, we were left with 
the impression that the Soviet delegation pushed 
it aside without real study. This rejection forced 
the Geneva conference to turn to a discussion of 
Berlin, the status of which the Soviet Union had 
so suddenly announced last November to be in- 
tolerable. Obviously the logical and proper solu- 
tion for a divided Berlin lies in the reunification 



' For text, see ibid., June 1, 1959, p. 779. 
October 26, J 959 



of Germany. Berlin would then be restored to 
its proper place as the capital of the reunited 
country. 

The Western Allies advanced proposals for a 
temporary agreement which, without impairment 
to our rights or risk to the freedom of over 2 
million West Berliners who rely on our presence 
as protection, would by the exercise of reciprocal 
restraints have met the asserted concern of the 
Soviets. But no such modus vivendi was agreed 
upon at Geneva. 

As a result of the Camp David talks, negotia- 
tions on Germany and Berlin will be resumed 
with no fixed time limit to their duration and 
therefore in a more hopeful atmosphere, free from 
threat. They will resume, however, with no pur- 
pose on our part to permit our rights to be im- 
paired or the freedom and security of the West 
Berliners, which we are pledged to defend, to be 
placed in jeopardy. 

Mr. Khrushchev subscribed at Camp David to 
the tenet which we have always held that disputes 
must be settled by negotiation, not force, and 
change achieved exclusively by peaceful means. 
The test and the final value of Mr. Khrushchev's 
visit will now await the outcome of negotiations 
in train or in prospect. The issues are difficult, 
and the process will no doubt be prolonged. We 
for our part enter hopefully but watchfully on 
this process, prepared to negotiate in good faith 
but without surrender of principle or acceptance 
of hurt to our national interests or the interests 
of our friends and allies. 

Qualities Needed in the Future 

We are entitled to some hope that we are enter- 
ing a period where change when needed can in 
fact be achieved by peaceful means and not by 
force or the threat of force. It would be fatal, 
however, to act on the assumption that this is an 
accomplished fact. Indeed the future is going to 
call on all of us for certain qualities. 

We are going to need vigilance and a healthy 
dose of "I come from ]\Iissouri." If the words 
Mr. Khrushchev signed at Camp David that "all 
outstanding international questions should be set- 
tled not by the application of force but by peace- 
ful means through negotiation" are to have real 
meaning, then we will watch carefully to see 
whether other countries in what the Coimnunists 



591 



call their "camp" under the acknowledged leader- 
ship of the Soviet Union will now comport them- 
selves in consonance with the agreed words I have 
quoted. We will watch to see if all the difficulties 
and dangers created by Communist China through 
the use of force or the threat of its use along its 
long borders will diminish and disappear. We 
will watch to see whether Communist China is 
now at last willing to renounce the use of force in 
the Taiwan area. 

Vigilance, however, means more than just 
watching a barometer to see if storms are reced- 
ing. It requires the continued effort and sacrifice 
necessary to maintain our own defenses. It re- 
quires a continued consideration for all those who 
are allied with us, including the need of all of 
them for liberal trading policies on the part of 
this country and for our continuation of economic 
and military assistance in cases where certain 
partners cannot carry alone their full share of the 
cost of our collective defense. It requires also a 
continued willingness to do our share in helping 
the lesser developed regions of this world to de- 
velop their resources and capabilities and thereby 
enabling their governments to hold out to their 
people the prospect of a better life. 

Vigilance, then, means resolution, a determina- 
tion to keep on doing many tilings tliat are ex- 
pensive and inconvenient. 

Patience also is called for in successful negotia- 
tion. The 10 weeks which the Secretary of State 
spent in Geneva last spring and summer negoti- 
ating with the Soviet Foreign Minister on the 
problems of Germany and Berlin produced little 
progress other than a clarification of the issues. 
But 10 weeks is well spent if some progress can 
be recorded. I recall that there were nearly 400 
negotiating meetings with the Soviets over the 
Austrian state treaty. They began in 1947. It 
was 8 long years later, in May of 1955, that the 
treaty was signed. Those 8 years were hard on 
the negotiators. They were far harder on the 
Austrian people. The point, however, is that ne- 
gotiation of even the less difficult of the issues 
which divide us can be slow and time consuming. 

There is one thing else which I believe is re- 
quired of us — a clearer concept and understanding 



in our own mmds of this great experimental 
society which we have built in the United States 
and a clearer articulation to the rest of the world 
of what it means. We are changing our society, 
modifying it, improving it every day. We have 
pragmatically developed a unique economic and 
social community under our own remarkable Con- 
stitution, but we are incredibly tonguetied when 
it comes to describing to others or even to ourselves 
what makes us tick. And what makes us tick is 
more important than our material achievements, 
because the latter are only the reflection of the 
former. Our pursuit of life, liberty, and happi- 
ness rests essentially on our belief in the individual 
dignity and worth of the human being. Only 
under such a system can man's creative gifts be 
lastingly and richly evoked. 

The peaceful competition which Mr. Kliru- 
shchev says is what he wants should be to us more 
than an invitation to outstrip all competitors in 
producing moi'e tons of steel or more automobiles 
or space machines. What we are engaged in is 
in fact a contest between two philosophies with 
antithetical concepts of the role of the individual 
in the society of which he is a part. "Wliat we be- 
lieve in our hearts in the long run is at least as 
important as what we produce with our hands. 
On faith and works our whole future depends. 



Crown Prince of Ethiopia 
Tours United States 

The Department of State announced on October 
6 (press release 701) that His Imperial Highness 
Crown Prince Asfa Wossen of Ethiopia would ar- 
rive at New York on that day for an informal visit 
to the United States. The Crown Prince, accom- 
panied by Crown Princess Medferiash Worq Abebe 
and a small party, will tour this country and Can- 
ada until early November. 

The U.S. itinerary includes New York, Boston, 
Washington, Detroit, Chicago, Colorado Springs, 
San Francisco, I^s Angeles, and Honolulu. On 
October 19 the Crown Prince plans to visit 
Ottawa. 



592 



Department of Sfafe Bulletin 



Hemispheric Progress Based on Understanding 



hy R. R. Ruhottom, Jr. 

Assistant Secretary for I nter- American Affairs ^ 



I am pleased and honored to have been asked 
to speak to the distmguished individuals gathei'ed 
here in Denver under the auspices of the United 
States National Commission for UNESCO. Your 
presence here gives clear evidence of the impor- 
tance our people attach to the work of the United 
Nations Educational, Scientific and Cultural Or- 
ganization and to the interplay of national cul- 
tures in today's world. The Government and the 
people of the United States recognize the impor- 
tance of fomenting educational, scientific, and 
cultural activities throughout the world, budget- 
ing significant shares of their talent and funds to 
the improvement of education in many countries, 
to the promotion and exchange of scientific knowl- 
edge, and to the stimulation of cultural exchanges. 

Certainly, one of the things which enriches the 
lives of people in the Western Hemisphere is, and 
has been for many decades, the exchange of cul- 
tures among them. We of the Americas believe in 
the same ideals, we honor each other's heroes, we 
read and enjoy the fruits of efforts by poets and 
artists from each other's countries, we sing and 
dance to each other's music, and we share intimate 
and mutually rewarding political and economic 
relationships. All of us benefit immeasurably 
from these exchanges, and it is important that 
they continue and flourish. There has been a 
greatly increased emphasis on the cultural ex- 
change program during the past 2 years, includ- 
ing that at the level of the university student. 
During the school year which ended last June, 



^ Address made at the opening plenary session of the 
7th National Conference held under the auspices of 
the U.S. National Commission for UNESCO at Denver, 
Colo., on Sept. 29 (press release C80). 

Ocfofaer 26, 7959 



there were over 10,000 Latin American students 
in our universities, while 1,188 Americans were 
studying in Latin American institutions. We be- 
lieve that salutary results in improved mutual 
understanding are already noticeable. 

It is especially fitting that the theme of this 
7th National Conference should be the United 
States and its relations with the other American 
Eepublics. The discussions here will throw ad- 
ditional light on our problems, some of them al- 
ready exhaustively analyzed. They should also 
lead us to new levels of understanding of the mu- 
tuality of these problems. Through such under- 
standing we hope to find the answers. Tonight 
I shall report some encouraging progress toward 
that goal. 

Benefits From Inter-American Meetings 

Conferences of ministers and meetings of ex- 
perts do not always provide immediate, visible so- 
lutions to the problems which they are convened to 
take up. However, such meetings in this hemi- 
sphere usually are productive of constructive, 
long-term results, especially in dealing with 
matters which are susceptible to multilateral con- 
sideration. Let us review the inter-American 
meetings, beginnmg with that of the Presidents in 
Panama just 3 years ago. They have been nimier- 
ous, perhaps due to the critical times we have 
lived through. The Presidents themselves created 
the Committee of Presidential Representatives^ 
which convened three times, terminating its labor 



' For a statement on the Committee's report by President 
Eisenhower, together with a Committee announcement at 
the conclusion of its final meeting, see Btji-letin of June 24, 
1957, p. 1014. 

593 



in May 1957. It recommended, among other 
things, the creation of tlie Inter-American Nuclear 
Energy Commission, which is holding its first 
meeting in Washington shortly. This will provide 
a regional forum for cooperation in the vital field 
of nuclear energy, which offers such thrilling 
prospects for its peaceful application. 

In September 1957 the oft-postponed Economic 
Conference of Buenos Aires was held.^ While it 
was not possible to negotiate an overall economic 
agreement as some countries desired, the 3 weeks' 
discussion of this subject cleared up much mis- 
understanding. Moreover, several of its resolu- 
tions on specific economic subjects helped to 
remove obstacles to progress in those sectors as 
time has revealed. 

In September 1958 the foreign ministers gath- 
ered in Washington for the first informal meeting 
ever held, a 2-day discussion of the world situa- 
tion and of how best to take advantage of Bra- 
zilian President Kubitschek's initiative known as 
"Operation Pan America." * There resulted from 
that meeting the establishment of tlie Committee 
of 21, which held its first meeting in Washington," 
followed by the meeting in Buenos Aii-es last 
April.' Noteworthy results of the Committee's 
efforts were the resolution on economic studies of 
individual countries in the hemisphere, the one on 
financing of economic development, that on com- 
modity problems, and that dealing with the com- 
mon market. 

In January of this year there began 3 months' 
negotiations which led to the creation of the Inter- 
American Bank,' for half a centui-y the dream of 
Latin America. It is under consideration in vir- 
tually eveiy country in the hemisphere at this 
time, and several ratifications are expected to be 
deposited shortly. 

Then there was the fifth Meeting of Consulta- 
tion of foreign ministers in Santiago last month.' 

' For background, see iUd., Sept. 30, 1957, p. 539. 

*/6irf., Octl3, 1958, p. 574. 

' For remarks made by Under Secretary Dillon, see 
ibid., Dee. 8, 1958, p. 918. 

' For a statement made by Assistant Secretary Thomas 
C. Mann, who was chief of the U.S. delegation, see ibid., 
June22, 19.59, p.931. 

' For background, see ibid., p. 928. 

° For statements made by Secretary Herter at the meet- 
ing, see ibid., Aug. 31, 19.59, p. 299; for the Secretary's 
statement upon his return from the meeting, together 
with texts of the Declaration of Santiago de Chile and 
the Resolution on the Inter-American Peace Committee, 
see ibid., Sept. 7, 1959, p. 342. 



This conference was called on an urgent basis to 
consider problems relating to intervention and to 
the defense of human rights and establishment of 
representative democracy. 

The wholesome results of that meeting are al- 
ready self-evident. For one thing, the reactiva- 
tion of the Inter- American Peace Committee by 
assigning it important functions to carry out be- 
tween now and the Quito conference is a hopeful 
augury. I shall touch on this meeting in greater 
detail later. 

Shared Aspirations 

We who live in the United States sliare the 
aspirations of those wlio live in the other Amer- 
ican Republics, especially the popular demand for 
increased individual rights, for improved wel- 
fare, and for liigher cultural standards in the 
nations of this hemisphere. This demand has two 
principal points of emphasis, the development of 
national economies to provide higher levels of 
living for the mass of people and more effective 
exercise of representative democracy based upon 
respect for the rights of man. We are committed 
to these goals and at the Santiago meeting of 
foreign minister's Secretary Herter made clear 
our dedication to their accomplishment through- 
oiit the Americas. 

In our own country tliere is yet much to be done 
to assure the continuing development of our econ- 
omy to provide constantly improving living con- 
ditions for our people. We recognize, as I hope 
our friends do, that the process of development 
never stops. It is the antithesis of the static, the 
essence of the dynamic. In fact, the more de- 
veloped a country becomes tlie greater the poten- 
tial and the demand for further development. On 
the other hand, the United States as a nation and 
its individual citizens have long understood the 
importance of assisting less developed countries 
and newly emerging states which have just gained 
political independence. We have offered our co- 
operation to help them to achieve for themselves 
economic and social betterment. While in our 
own interest to do so, it would be unfair to mil- 
lions of Americans to think that this was their 
sole motivation. 

Of the manj^ ingredients necessary to this proc- 
ess of growth the foremost are, of course, a coun- 
ti-y's own human resources. It is essentially the 
maniiei- in which the human element develops the 



594 



Department of State Bulletin 



natural resources available to it and distributes 
among its members the fruits of its labors that 
determines the level of prosperity which a people 
will enjoy. All that the United States — or any 
other outside element — can contribute to the im- 
provement of another coimtiy's economy is some 
small but perhaps essential part of the missing 
ingredients. 

By the same token, political development never 
stops. Wliile we in the United States may be en- 
titled to take considerable satisfaction in the 
stature of the individual in our still emerging 
democracy, we must exercise constant vigilance to 
avoid complacency. In the political sector of our 
lives, as in the economic, our greatest challenge 
may be that of protecting deeply held principles 
while accommodating ourselves to the inevitable 
changes that a dynamic society generates within 
itself. 

Thus we are not, and could never be, less than 
stanch supporters of our friends and neighbors in 
their determined efforts toward the goals which 
we share with them — tridy representative democ- 
racies and economies responsive to the aspirations 
of all of the peoples of this hemisphere. 

The meeting of foreign ministers of the 21 
American Eepublics which took place in Santiago, 
Chile, last month provided an opportunity to re- 
examine these goals and chart new courses for 
their accomplisliment. Full and fruitful ad- 
vantage was taken of this opportunity, pi"Oving 
again the statesmanship of those who so wisely 
and foresightedly created in the inter-American 
system an instrument responsive to the evolving 
needs of our community. I would like to quote 
the evaluation placed on this system by Secretary 
Herter in addressing the meeting of foreign min- 
isters : ° 

The inter-American system and tlie Organization of 
American States constitute one of ttie bulwarks of free- 
dom in a world that continues to be threatened by the 
aggressive and imperialistic designs of international com- 
munism. The maintenance of a strong inter-American 
system is therefore an integral part of the supreme effort 
in which all of us participate to preserve our liberties and 
the finer aspects of civilization itself. 

At Santiago imderstandings were reached on 
grave problems wliich involved two of the basic 

' Ibid., Aug. 31, 1959, p. 301. 
October 26, J 959 



concepts of this inter- American system — the prin- 
ciple of nonintervention by any American state 
in the affairs of any other American state, and the 
rights of our peoples to the effective exercise of 
representative democracy. 

I am convinced, and I am certain that this con- 
viction is generally shared, that both of these con- 
cepts were not only reaffirmed at Santiago — their 
implementation was effectively advanced by un- 
derstandings reached and concrete measures 
adopted there. The whole fabric of democratic 
ideals which unite our peoples was thereby 
strengthened. 

Communist Threat to lnter-Amer!can System 

It is not illogical, quite the contrary, that this 
inter-American system should be a prime target 
of international communism. One must expect 
that a free, voluntary association of 21 nations who 
so successfully treat with each other as equals and 
who share concepts of morality and sovereignty 
so alien to dialectic materialism reap the scorn and 
enmity of Soviet imperialism and its agents. Nor 
is this feeling confined to words; it is well known 
that plans to sabotage the 11th Inter-American 
Conference in Quito next year were openly dis- 
cussed when Latin American Communists at- 
tended the Soviet Communist Party meeting in 
Moscow last January. 

The strength, both spiritual and material, 
which is afforded each of our 21 American Re- 
publics through this collective endeavor to further 
the rights and aspirations of our individual citi- 
zens is a defense against the Communist efforts 
to impose m this hemisphere, by subversion or 
force, a Marxist totalitarianism such as exists in 
Hungary, Tibet, and other lands. 

Communism of the variety now seen at mid- 
20th century poses a special problem for all of 
the American Republics, including our own coun- 
try. It has attempted to steal much of the truly 
democratic terminology and convert this language 
to its own use. "Peace," "democracy," "freedom," 
"progress," "liberty," "justice" — all of these words 
connote to us of the Americas principles for which 
our forebears fought in their wars of independ- 
ence and which we have since defended with our 
lives. Communism has corrupted and distorted 
them in its efforts to provide a cloak of respecta- 



595 



bility for its naked aggressions and effoi-ts to 
subvert free countries. It is duplicity of this type, 
plus the utter lack of any spiritual motivation in 
the Communist philosophy and its failure to 
recognize the spiritual spark burning in the soul 
of every human being, that makes the Communist 
conspiracy so revolting as it attempts to destroy 
the things which we hold most sacred in the 
Americas. 

Action To Support Positive Values 

We must oppose communism because it attempts 
to destroy these very basic concepts on which our 
American Republics have been founded. But this 
is not to say that we subscribe just to a sterile, 
negative line. We stand for the positive values 
of freedom with justice, of representative democ- 
racy, and of opportunity, both national and in- 
dividual, for economic imjjrovement. To these 
aspirations we are firmly pledged. 

Any serious discussion of political aspects of 
our inter- American system which did not seek 
to relate them to economic progress would fail 
to face present-day realities, as the two are inti- 
mately bound together. However, much as it may 
subscribe to the principles of democracy, a gov- 
ernment which does not create for its people the 
conditions which will provide them with the op- 
portunity to acquire, through their own efforts, a 
more abundant and rewarding life for themselves 
and their children cannot long endure. 

Through radio, television, motion pictures, and 
other media, people througliout the world have 
become increasmgly aware of the material as well 
as the spiritual benefits which can be achieved 
under the political-economic system enjoyed by 
the peoples of North America and to an increas- 
ing degree in Western Europe. Where people are 
free to do so, they are seeking to adapt this system 
to their own environment and way of life. To the 
extent that it is considered mutually advanta- 
geous, the people and Government of our country 
are participating in this development in other 
lands. 

Our contribution, private as well as public, to 
the economic development of Latin America has 
been broad and massive, as I will presently show. 
The same may be said of our trade with that area, 
which in the last 10 yeai-s reached the enormous 
aggregate of over $35 billion each way. 



The mutual benefit of this relationship is not 
lost on the Communists, wlio are making increas- 
ingly determined efforts to disrupt it. Obviously, 
this essential contribution to the developing econo- 
mies of the hemisphere frustrates their designs 
against the free world. In tliat connection one 
may well speculate as to the extent to which the 
talk by recent Soviet visitors to this country of a 
greatly increased Soviet-United States trade is 
motivated by a desire to replace traditional sup- 
pliers of items which we now purchase in Latin 
America and other parts of the free world. Cer- 
tainly, there is very little else that the Soviet 
Union could supply to the United States market. 

Financing of Economic Development 

The extent to which United States Government 
funds have been employed in the last decade to 
assist the economies of the Latin American coun- 
tries is sometimes not appreciated. The most im- 
portant instrument of our public cooperation with 
Latin America is the Export-Import Bank. In 
the 10-year period ending June 30, 1959, loan au- 
thorizations by the Bank to countries in Latin 
America amounted to $2,667,000,000. Since 1950 
the United States has spent $225 million on its bi- 
lateral teclmical cooperation programs in Latin 
America (an amoimt, incidentally, which has been 
more than matched by the respective host coun- 
tries). Beginning in 1954, we have made avail- 
able funds to certain Latin American countries 
under the heading of "Special Assistance"; 
through fiscal 1959, such assistance has amounted 
to over $205 million. 

As you know, the Development Loan Fund be- 
gan its operations only very recentlj'. Neverthe- 
less, it has already approved loans to Latin Amer- 
ica amounting to nearly $69 million and has sev- 
eral other projects under urgent consideration. 
Finally, local currencies loaned back for economic 
development purposes to Latin American coun- 
tries purchasing surplus connnodities under Pub- 
lic Law 480 have aggregated $297 million. 

If you will add up the various items I have just 
mentioned, representing tlie flow of United States 
public funds to Latin America in tiie last 10 years 
or less, you will come to a grand total of nearly 
$3.5 billion. 

However, this is not the whole story as regards 
public funds. The AVorld Bank, tlio International 



596 



Deparfment of Stafe BuUefin 



Monetaiy Fund, and the International Finance 
Corporation have all been very active in Latin 
America. These are international institutions, 
and loans or advances made by them can by no 
means be regarded as deriving exclusively from 
the United States. Nevertheless, the United 
States lias provided a large share of the capital of 
each of tliese institutions, and the great bulk of 
the money they liave used in their operations has 
been raised from public or private sources in this 
country. Up to June 30 of this year, credits au- 
thorized to Latin America by the World Bank 
have amounted to $981 million and those of the 
International Finance Corporation to $16 million. 
Gross drawings by Latin American counti'ies from 
the Monetary Fund up to the same date have 
aggregated $664 million. The United States lias 
been gratified to join with its comembers in mak- 
ing these sizable contributions to Latin American 
development and stabilization. 

Our Government is continuing, and will con- 
tinue, to provide the types of financial and eco- 
nomic assistance to each of the other 20 American 
Kepublics which they and we find mutually 
desirable. 

Together with the Latin American Republics, 
and within the framework of the Organization 
of American States, our Government has in recent 
months been participating in projects to further 
strengtlien this inter- American economic coopera- 
tion. The progress which has been made in the 
formulation and execution of Operation Pan 
America and the f onnation of the Inter- American 
Development Bank are positive achievements in 
the creation of the economic and social climate in 
which democracy can flourish. 

Our Government has pressed forward in for- 
malizing its participation in the Inter-American 
Development Bank. The session of Congress 
which just adjourned passed the necessary legis- 
lation to authorize our participation and the pay- 
ment of our share of the capital. 

Last year the capital of the Export-Import 
Bank, which traditionally has given a major share 
of its attention to tlie development needs of Latin 
America, was increased by $2 billion. Likewise, 
we have taken an active role in making more ef- 
fective the International Monetary Fund and the 
International Bank.'" With the increased re- 



"For background, see iMd., Oct. 5, 1959, p. 488, and 
Oct. 19, 1959, p. 53. 

October 26, 1959 



sources advocated, these institutions will be able to 
provide substantially greater services to Latin 
America. 

I have spoken up to now of some of the ways in 
which the United States Government, as such, has 
engaged in measures of economic cooperation with 
our Latin American neighbors. But such public 
efforts by no means represent the full extent of 
this countiy's contribution to the economic devel- 
opment of Latin America. 

On the contrary, the flow of private capital 
from the United States to Latin America has ex- 
ceeded the flow of public funds. In the decade 
from the end of 1948 to the end of 1958, private 
American direct investments in Latin America 
have increased, partly through new capital trans- 
fers and partly through the reinvestment of earn- 
ings, by nearly $4.6 billion. Tlius, in a period 
corresponding roughly to the past 10 years, our 
total participation, both public and private, to tlie 
economic development of Latin America has been 
over $8 billion. I want to stress that this amount 
is apart from the funds made available by inter- 
national lending institutions in whicli the United 
States plays a major role. 

That the amount of private American capital 
going to Latin America should be larger than 
the flow of United States public funds to that area 
is natural and as it should be. Tliere are definite 
limitations on the amount of public capital avail- 
able for lending to other countries, limitations 
which stem from the fact that sucli funds, in the 
last analysis, are provided by the United States 
taxpayer. No such limitations apply to private 
capital. I think I can confidently say that, wel- 
comed and given a suitable climate, American 
investors would be prepared to supjoly very large 
additional amounts of capital to Latin America, 
probably as much as that area could economically 
absorb for a long time to come. 

In recent years there has been an increasing 
recognition of the contribution which private cap- 
ital can make to the economic progress of under- 
developed countries. Most Latin American 
countries indeed have made strong efi'orts through 
such devices as tax incentives, duty exemptions, 
the enactment of appropriate legal codes, to create 
the conditions wliich attract foreign capital. 

This contribution cannot be measured by the 
value of the textile machinery or rolling mills or 
tractors or roadbuilding equipment which are im- 



597 



ported with the invested capital, important as 
these things may be. The true value of foreign 
investment can be measured only in the increased 
flow of goods and services which it helps to bring 
about and which, in its absence, would not occur. 
I mean such things as the production of a greater 
volume and better variety of consumer goods, ex- 
panded exports, greater job opportunities, and in- 
creased sources of tax revenues. All these things 
add up in the end to a higher standard of living. 

But the process of foreigii investment also has 
an extremely important byproduct, namely, tech- 
nical and business training. The vast majority 
of the technical and managerial personnel of 
American subsidiaries and branch plants in Latin 
America are Latin Americans. Every industrial 
plant, mine, and merchandising establishment in 
Latin America financed by private United States 
capital can thus be said to be a cooperative train- 
ing school in modern business methods and effi- 
ciency. In the long run this private teclinical 
cooperation may well be as important as the 
physical investment itself. 

We have all heard of the term "venture capital." 
This is an apt phrase. Individuals and firms in- 
vesting their funds in foreign countries, and 
especially in underdeveloped countries, are in 
many ways breaking new ground. They must be 
imaginative in recognizing opportunities for find- 
ing or developing new resources, or for increasing 
production from old. They must frequently be 
willing to take large risks. 

In return they ask only that they be permitted 
to earn a reasonable rate of return on their in- 
vestments on the basis of fair and juridically 
approved international practice, and freedom 
from arbitrary harassments. In the absence of 
such cenditions there is no inducement for Ameri- 
cans to venture their capital in foreign countries, 
particularly when there are so many opportuni- 
ties for remunerative investment right here at 
home. 

Progress Through Commodity Consultations 

In the commodity field, although no problems 
have been "solved" to the satisfaction of all par- 
ties, we have made significant progress in recon- 
ciling viewpoints and reducing differences to least 
common denominators fhrough resort to an old 
and tried technique — the open forum. Divergen- 



cies of viewpoint can often be narrowed appreci- 
ably through frank discussion around a confer- 
ence table, and we are encouraging a wider 
discussion of commodity problems both within the 
hemisphere and in international forums when 
problems are of broader scope. 

Coffee affords a good example of our new ap- 
proach. Since the United States produces no 
coffee, except for Hawaii, we had, until 2 years 
ago, tended to leave the initiative in developing 
solutions of the surplus problem to the producing 
countries. However, by 1957 it became increas- 
ingly clear that a decline in coffee prices to levels 
which then threatened could seriously affect the 
economic stability of some of the producing coim- 
tries of this hemisphere. In an effort to help these 
countries to help themselves, we gave our support 
to calling a meeting of all coffee-producing and 
coffee-consuming countries to examine the sur- 
plus problem and see what steps might be taken 
to prevent a further accumulation of stocks and 
to assure orderly marketing. This coffee study 
group met first in May 1958, and by October of 
that year the 15 coffee-producing countries of this 
hemisphere had developed a plan for emergency 
action to which all could subscribe and which has 
proved very successful in moderating price de- 
clines over the past year. 

A long-range solution of the coffee problem will 
require the collaboration of producing areas out- 
side the hemisphere; so it was encouraging to 
note that, when the study gi'oup met in Washing- 
ton earlier this month to develop plans for next 
year, European and African countries were also 
in attendance. Their readiness to negotiate on 
short-term marketing arrangements and to coop- 
erate in long-range planning has resulted in a 
coffee agreement which augurs well for the 
future. 

Lead and zinc have been one of the thorniest 
problems in our relations with Latin America in 
recent years. World prices fell sharply in the 
1957 recession, and the United States established 
quotas on imports for which we were roundly 
criticized. A special conference was called by the 
U.N., where we explained our problems and other 
countries explained theirs. Although we are one 
of the principal markets for metals produced in 
Latin America, we are only one factor in a large 
world market, and at the conclusion of that meet- 



598 



Deparfment of State Bulletin 



ing there was general recognition that a sound 
solution must be sought on an international scale. 

The lead study group has now been established 
by the United Nations on a continuing basis. The 
United States is a member, and we are hopeful 
that in the future problems can be foreseen and 
appropriate measures taken. 

Consultation has also been used effectively in re- 
lation to the cotton problem. Cotton is an impor- 
tant export crop in many countries, and whenever 
surpluses appear and prices decline cotton export 
policy becomes a problem in hemisphere relations. 
Cotton prices had been falling this spring when 
Mexico took the lead in setting up a small com- 
mittee, on which the principal exporting coun- 
tries are represented, to see what could be done 
within the terms of existing legislation to avoid 
competitive undercutting of prices, to increase ex- 
ports, and to stimulate consumption of cotton 
fiber. That committee has met regularly this sum- 
mer and made a constructive contribution to hemi- 
sphere relations in its limited field by informing 
each country regarding the cotton problems of the 
othei-s and by singling out those aspects of the 
cotton problem where international collaboration 
is practicable. 

For the relatively underdeveloped countries of 
the world the stability and expansion of markets 
for their raw materials is a matter of primary im- 
portance. Largely at their instance, a special 
Commission on International Commodity Trade 
was established by the Economic and Social Coun- 
cil several years ago to work on trade problems in 
these basic commodities. This year the United 
States became a member of that Commission, and 
we expect to participate actively in its work as 
further evidence of our belief that full discussion 
is the road to broader understanding. The prob- 
lem of expanding world trade is also being studied 
by a committee established by the Contracting 
Parties to the GATT, to which the United States 



and eight of the Latin American countries belong. 
This committee is making a study of obstacles to 
the expansion of trade in raw materials and ex- 
pects to develop recommendations for constructive 
action. 

The United States has been a party for many 
years to the International Sugar Agreement, one 
of the very few intergovernmental agreements de- 
signed to stabilize prices of a basic raw material in 
world markets. That agreement was renegotiated 
this year and has again been ratified by the United 
States. While we do not export sugar, it is an 
important export crop for Latin America; so the 
new agreement is further evidence of growing 
hemisphere understanding in the trade sphere. 

In the problems related to basic commodities 
such as sugar, lead and zinc, coffee, and cotton, 
which are of such importance to the economies of 
our 21 countries, the American Eepublics have 
found that through consultation progress can be 
made toward mutually acceptable undei-standings. 
Similarly, in seeking solutions to the challenge 
posed by the needs of a rapidly increasing popu- 
lation for a more ample supply of goods and serv- 
ices, our Governments and our peoples are working 
together. 

We are indeed fortunate in this hemisphere to 
have in the inter- American system not only an in- 
stitution, the Organization of American States, 
through wliicli our common problems may be stud- 
ied and dealt with constructively. More impor- 
tant, however, are the spiritual and cultural values 
which the peoples of this hemisphere share and 
the sense of a common New World destiny. It is 
these elements, intangible as they are, which make 
the inter- American system the uniquely powerful 
force for good which it is today. With the re- 
newed confidence which comes from success, we 
can anticipate that in the years to come the na- 
tions of this American community will reach even 
higher levels of understanding. 



October 26, 7959 



599 



Immigration Legislation, 1959 



hy Frank L. Auerhaxih 



Two immigration measures were passed by the 
first session of the 86th Congress: Public Law 
86-253, which extends temporarily the provisions 
of earlier legislation permitting the admission of 
certain adopted orphans and of close relatives of 
U.S. citizens and permanent resident aliens af- 
flicted with tuberculosis, and Public Law 86-363, 
an act facilitating the admission of certain rela- 
tives of U.S. citizens and permanent resident 
aliens. Both laws follow the pattern set by pre- 
vious immigration legislation passed since the en- 
actment of the Immigration and Nationality Act 
of 1952 in that certain provisions amend existing 
law while others are set up as independent statu- 
tory provisions, although they affect the opera- 
tions of the Immigration and Nationality Act. 
Both acts originated in the House of Eepresenta- 
tives, where they were introduced by Representa- 
tive Francis E. Walter, chairman of the House 
Subcommittee on Immigration and coauthor of 
the Immigration and Nationality Act. 

Reuniting Families 

Of the two acts, Public Law 86-363, approved 
by the President on September 22, 1959, has the 
broader application. Its major provisions, re- 
casting the quota preference categories of the 
Immigration and Nationality Act, were prompted 
by the finding of the House Judiciary Committee ^ 
that 

... the recognized principle of avoiding separation of 
families could be furthered if certain categories of such 
relatives were reclassified in the various preference por- 
tions of the immigration quotas. 

Under the law in effect prior to the enactment 



• Mr. Auerhach is Assistant Director of the 
Visa Office of the Defartment of State. 



of Public Law 86-363, skilled aliens needed in 
the United States were accorded first preference, 
with a first call on 50 percent of each quota; 
parents of U.S. citizens second preference, with a 
first call on 30 percent of each quota ; and spouses 
and children of pennanent resident aliens third 
preference, with a first call on 20 percent of each 
quota. Any portion of the quota not used by a 
given preference category was made available to 
any of the other preference groups. Quota num- 
bers not used by any of the preference groups 
were available to all other applicants for immi- 
grant visas — the so-called nonpreference group — 
witli a priority of 25 percent for brothers, sisters, 
sons, and daughters of U.S. citizens.^ 

Public Law 86-363 significantly changes the 
order of preferences and priorities for quota im- 
migrants who claim such preference or priority 
based on relationship to U.S. citizens and perma- 
nent resident aliens. Without disturbing the first 
preference category of skilled aliens with a first 
call on 50 percent of each quota, the new law 
moves unman-ied sons and daughters of U.S. citi- 
zens from the fourth to the second preference cate- 
gory, broadens the tliird preference categoi-y by 
including unmarried sons and daughters of per- 
manent resident aliens, and modifies tlie previous 
fourth preference category by according it 50 per- 
cent of the portion of each quota not used by the 
first three preference categories and by including 
in it spouses and children of brothers, sisters, and 
married sons and daughters of U.S. citizens. The 



600 



■ H. Rcpt. 582, 86th Cong., 1st sess., June 20. 1959, p. 2. 

' Under previous and present law the "child" of a U.S. 
citizen, i.e. a person unmarried and under 21 years of age, 
is entitled to nonquota status and the "child" of a perma- 
nent resident alien to third-preference quota status. For 
a full definition of the term "child," see sec. 101(b)(1) 
of the Immigration and Nationality Act, as amended. 

Department of Stale Bulletin 



following comparative table shows the changes 
brought about by the new legislation. 



First 

preference 



Second 
preference 



Third 

preference 



Fourth 
preference 



Quota preferences under 
previous law 



50 percent of each 
quota to skilled 
aliens and 
spouses and 
children if ac- 
companying or 
following to 
join them. 

30 percent of each 
quota to par- 
ents of U.S. 
citizens. 

20 percent of each 
quota to 
spouses and 
children of 
permanent 
resident aliens. 

25 percent of por- 
tion of each 
quota not used 
by first three 
preference 
groups, to 
brothers, sis- 
ters, sons, and 
daughters of 
U.S. citizens. 



Quota preferences under 
P.L. 86-363 



Same 



30 percent of each 
quota to par- 
ents and un- 
married sons 
and daughters 
of U.S. citizens. 

20 percent of each 
quota to 
spouses and 
unmarried sons 
and daughters 
of permanent 
resident aliens. 

50 percent of the 
portion of each 
quota not 
used by the 
first three 
preference 
groups, to 
brothers, sisters, 
and married 
sons and 
daughters of 
U.S. citizens 
and their spouses 
and children if 
accompanying 
them. 



The provisions of the new act which recast the 
quota preferences and priorities do not increase 
the sum total of quota numbers available to rela- 
tives imder each quota. The anticipated effect of 
the transfer of unmarried sons and daughters of 
U.S. citizens from the fourth preference category 
into the second preference category, where they 
compete for quota numbers with parents of U.S. 
citizens, is stated in a letter dated August 10, 1959, 
from the Department of State to Senator James 
O. Eastland, chairman of the Senate Judiciary 
Committee.^ The pertinent portions of tliis letter 
read as follows : 

As a consequence of this transfer, the second preference 
portion of several quotas and subquotas, presently current, 
may become oversubscribed. There Is set out below a list 



of countries and colonies whose quotas and subquotas, 
respectively, may be so affected by the enactment of sec- 
tion 1 of the bill. The column in the middle shows the 
fourth preference registrations as reported to the Depart- 
ment, on May 1, 1959. These figures Include married sons 
and daughters, as well as brothers and sisters, of U.S. 
citizens. 



Quota or subquola area 


4th preference 
registrations 


Annual quota 
or subquota 


Australia _ 


75 
141 
754 

82 
114 
117 

76 

387 

81 

185 

262 

104 

63, 669 

101 

278 

198 

111 

247 

3,220 

2,466 

71 

1,706 


100 


China 


100 


Hunearv 


865 




100 


Iran 


100 


Iraq 


100 


British subquotas: 

Bahamas - 


100 


Barbados- _ 


100 




100 




100 


Malta --- 


100 


Israel . 


100 


Italy -.. --- 


5,666 


Latvia 


235 




100 


Lithuania -- 


384 


Morocco 


100 




100 


Poland 


6,488 


Portugal 


438 




100 


Yugoslavia 


942 







There follows a listing of quotas and subquotas wherein 
the second preference portion is already oversubscribed. 



Quota or subquota area 



Chinese persons 

Jamaican subquota 

Trinidad subquota 

Greece 

Japan 

Philippines 

Rumania 

Spain 

Turlcey 

United Arab Republic 



2d preference 


Annual quota 


registrations 


or subquota 


450 


105 


624 


100 


169 


100 


4,568 


308 


371 


185 


723 


100 


517 


289 


627 


250 


510 


225 


397 


100 



' For text, see S. Kept. 962, 86th Cong., 1st sess., Sept. 
8, 1959, p. 5. 



It appears, therefore, that the inclusion of the unmarried 
sons and daughters of U.S. citizens in the second prefer- 
ence category wiU inevitably prolong the waiting time 
of many parents of U.S. citizens and will cause the second 
preference portion of many quotas and subquotas to be- 
come oversubscribed and others to become more heavily 
oversubscribed. 

It may also be pointed out that under some quotas which 
are now experiencing a low second preference demand, 
such as the quotas of Australia, India, Israel, Korea, and 
New Zealand, first preference applicants chargeable to 
these quotas are benefiting presently from this situation 
in that quota numbers which would ordinarily be assigned 



October 26, 1959 



601 



to qualified second preference applicants are beinK made 
available, as the law prescribes, for the issuance of visas 
to first preference applicants. Hence the enactment of 
section 1 of the bill would also adversely affect such first 
preference visa applicants. 



12,000 are approved for aliens chargeable to the 
Italian quota so that it is likely that a total of 
some 30,000 aliens chargeable to the Italian quota 
will qualify for nonquota status. 



Nonquota Status for Certain Relatives of U.S. 
Citizens and Permanent Resident Aliens 

Following the pattern set by previous legisla- 
tion, Congress provided relief for the increasing 
numbers of relatives of U.S. citizens and perma- 
nent residents who, though entitled to preference 
quota status, have to anticipate an extended wait- 
ing period under certain quotas. The new legis- 
lation accords nonquota status to all applicants 
for immigrant visas who, under previous law, 
were entitled to .second, third, or fourth preference 
quota status if they were registered on a consular 
waiting list under a priority date earlier than De- 
cember 31, 1953, and if a petition according them 
quota preference status had been approved by the 
Attorney General before January 1, 1959. Non- 
quota status is also accorded to the spouses and 
children of such aliens irrespective of whether they 
meet the deadline requirements applicable to their 
principals. 

Some 22,000 visa petitions approved before Jan- 
uary 1, 1959, are in the hands of consular officers 
on behalf of applicants who were registered on 
consular waiting lists prior to December 31, 1953. 
Since these petitions do not indicate whether their 
beneficiaries are maiTied and have children, the 
total luimber of aliens who may benefit from this 
liberalization of quota restrictions is difficult to 
predict. If experience gained in the past serves 
as a guide, it is believed that some 55,000 aliens 
may benefit from this provision of tlie law if they 
can meet the qualitative standards of the immigra- 
tion laws. Immigrants chargeable to the follow- 
ing quota and subquota areas * will, in the order of 
the listing, primarily benefit from this measure: 
Italy, Greece, Yugoslavia, Portugal, Jamaica, 
Spain, Palestine, Philippines, Lebanon, United 
Arab Republic, Japan, Chinese Persons, and Tm-- 
key. Of the 22,000 visa petitions on hand, some 



Uniting Refugee Families 

There were 188,752 inunigrants who came to the 
United States imder the Refugee Relief Act of 
1953, as amended, which expired on December 31, 
1956.^ While most of these immigrants came with 
their families, there are a number of instances in 
which members of the immediate families of ref- 
ugees were left belund for reasons of health, for 
economic reasons, or because of the separation of 
the family existing at the time of the migration 
of the principal. In most of these cases the pre- 
ceding head of the family has filed a petition for 
the remaining members of his family according 
them preference quota status. However, as a re- 
sult of the oversubscription of certain quotas, 
some of these families are still separated. 

To remedy this situation Congress accorded 
nonquota status to the husband, wife, and child of 
any permanent resident alien who was admitted 
into the United States mider the provisions of the 
Refugee Relief Act of 1953, as amended, if a peti- 
tion for third preference quota status was ap- 
proved by the Attorney General before January 
1, 1959. Also, parents of U.S. citizens who came 
to the United States under the Refugee Relief Act 
are accorded nonquota status under the same 
condition. 

To benefit from these provisions the alien must 
have retained his relationship to the petitioner 
and the status as established in the approved peti- 
tion.*^ Since the law in most cases requires a lapse 
of 5 years after admission to the United States 
before an immigrant may apply for naturaliza- 
tion, the number of persons who came to the 
United States under the Refugee Relief Act of 
1953 and who have since become naturalized and 
have petitioned for the admission of their parents 
is expected to be relatively small, .so that not many 
alien parents will be able to qualify for nonquota 



* A complete listinR of immigration (luotas and quota 
areas is shown on Ihe "ImmiKration (Juotn Areas" map 
dated July ], lOr.!), copies of which are available from the 
Superintendent of Documents, U.S. Government Printing 
Ofl3ce, Washington 25, D.C. (20 cents). 



''.'Uiniial Ifrport of the Imniit/riition itml Xaturalization 
Service (Washington, D.C, 1958), p. 27. 

" If the petitioner has died since approval of the i)etition, 
the status would not be considered as bavins b<M>n rebiined. 



602 



Department of Stale Bulletin 



status under this provision of the new act. No 
adequate data are avaihible which would indicate 
liow many persons will benefit from tliis provision 
of the new lemslation. 



Technical Amendments 

In the absence of a statutory definition, the 
terms "son" and "daughter," as used in the im- 
migration provisions of the Immigration and 
Nationality Act, have been interpreted to include 
adopted sons and daughters. This interpretation 
was based on a decision of the Board of Immigra- 
tion Appeals of August 25, 1953J In an amend- 
ment to existing law which was offered by 
Representative Walter on the floor of the House,* 
Public Law 86-363 provides that an adopted son 
or daughter may become the beneficiary of a 
petition for nonquota status or a preference quota 
status only if the adoption took place while the 
adopted person was under the age of 14 and if 
the adopted person has been in the legal custody 
of, and resided with, the adoptive parent or par- 
ents for at least 2 years. However, this legislation 
does not affect adversely petitions already ap- 
proved before the effective date of this act, Sep- 
tember 22, 1959. 

Another technical amendment to existing law 
limits to two the number of children adopted by 
one family who may derive preferred treatment 
under the inmiigration laws, imle,ss this Ihnitation 
would result in the separation of brothers and 
sisters. This provision of the bill was prompted 
by the House Committee's observation : " 

. . . certain families have adopted abroad a rather 
large number of children and the committee has been 
made aware of certain problems arising from that situa- 
tion, as well as attempts to evade quota restrictions. 



Immigration of Certain Relatives Afflicted With 
Tuberculosis 

Public Law 86-253 of September 9, 1959, ex- 
tends until June 30, 1961, the provisions of Public 
Law 85-316 of September 11, 1957, which vested 
the Attorney General with discretionary authority 
to grant waivers of inadmissibility in the case of 
certain aliens afflicted with tuberculosis. The 



original provision enacted in 1957 authorized the 
Attorney General to admit spouses and children 
of U.S. citizens and of aliens lawfully admitted 
for permanent residence, and parents who have a 
son or daughter who is a U.S. citizen or an alien 
lawfully admitted for permanent residence, ir- 
respective of their being afflicted with tuberculosis, 
if they complied with terms, conditions, and con- 
trols prescribed by the Attorney General after 
consultation with the Surgeon General of the 
United States. The purpose of the 1957 provision 
was to reunite families separated as a result of 
the health condition of one of its members. In 
extending this provision until June 30, 1961, Con- 
gress broadened its scope by authorizing the At- 
torney General to grant the waiver to the afflicted 
spouse, child, or parent of an alien who has been 
issued an immigi-ant visa. In explaining this 
amendment the House Judiciary Committee 
observed : ^° 

Id order to avoid the separation of families who, of 
course, desire to migrate together, and in order to facili- 
tate the task of the intergovernmental and national 
agencies assisting the beneficiaries of this legislation, it 
is felt that it is desirable to make It possible to grant a 
waiver to the afflicted person after the members of his 
immediate family were issued immigrant visas. Thus, 
the family units would be united during the journey and 
would be in a jjosition to make their lawful entry into 
the United States together. 

Another amendment eliminates the requirement 
of pre\aous law that the Attorney General report 
promptly to Congi-ess in any case in whicli he 
granted a waiver under it. 

Congress chose a 2-year extension of the tuber- 
culosis provision rather than pass permanent 
legislation "for the purpose of obtaining more 
experience and provide for a longer trial period 
in this sensitive segment of our immigration 
policy." ^^ 

Immigration of Eligible Orphans 

The temporary program for the admission as 
nonquota immigrants of eligible orphans adopted 
or to be adopted by a U.S. citizen and spouse con- 
tained in Public Law 85-316 of September 11, 
1957, expired by its own terms on June 30, 1959. 
Charges and comatercharges were made in public 



' In the Matter of iS— , 5, I. & N. Dec. 438. 

■ Congressional Record of July 6, 1959, pp. 11578-11580. 

" H. Kept. 582, 86th Cong., 1st sess., June 26, 1959, p. 4. 



° H. Rept. 291, 86th Cong., 1st sess., Apr. 23, 1959, p. 15. 
' Ibid., p. 3. 



Ocfober 26, J 959 



603 



about the alleged abuse of this provision of the 
law, particularly in the case of orphans adopted 
by proxy. Rather than extend the provision of 
the 1957 act in its original form as proposed by 
the Senate," the House insisted on amending the 
law by lequiring that no visa may be issued to an 
eligible orphan, either adopted or to be adopted, 
unless an appropriate petition, filed by the adop- 
tive parents or the prospective adoptive parents, 
has been approved by the Attorney General. An- 
other amendment requires that the Attorney Gen- 
eral make a finding that the adoptive or 
prospective adoptive parents are persons of good 
moral character. In proposing these amendments 
Representative Walter made the following 
statement : " 

It has been pointed out on the floor of the Senate yes- 
terday that many instances of abuse under the provisions 
of the 1957 law have been reported and fairly-well doc- 
umented. More than that, a special committee of the 
Legislature of the State of New Torli has confirmed many 
of the worst suspicions. There are some indictments 
pending affecting individuals who have made a lucrative 
business out of acting as intermediaries between the 
alien orphans and American couples desiring to adopt 
them. Irrespective of the legal and moral questions in- 
volved, the continuation of those practices may create 
for the children themselves more hardship in this country 
than they may possibly endure if they would remain 
abroad. Remedy must be tried, and we believe that one 
is readily available. 

The Walter-McCarran Act contains in section 205 a 
very carefully specified petition procedure under which 
a U.S. citizen desirous to obtain nonquota immigrant 
status for his own, natural-born alien child, must apply 
to the Attorney General for a finding of his eligibility. 
If such petition is approved, the appropriate consular of- 
ficer is authorized by the Secretary of State to execute 
his statutory function of determining the eligibility of the 
beneficiary of the i)etition. The amendment now before 
the House proposes that identical procedure be applicable 
in the cases of alien orphans coming to the United States 
under the law which is now proposed to be revived for 1 
year. 

There is only one additional requirement added to the 
petition procedure now applicable to natural-born children 
of U.S. citizens, and that is that there be a finding of good 
moral character made in the case of the adoptive par- 
ents. This is, indeed, a minimum requirement if it Is 
borne in mind that the paramount question before us is 
to ascertain whether the alien orphan child will find in 



the United States a proper home. The authority vested 
in the Attorney General is sufficiently broad to permit 
him to eradicate the malpractices which disturb us all. 

The language of the amended law makes it clear 
that the petition procedure prescribed by the 
amendment does not affect the consular officer's 
primary responsibility for the determination that 
the orphan is an "eligible orphan" as defined by 
law. 

Both Houses agreed that the orphan provision 
should be extended for not more than 1 year "in 
order to give the Committees on the Judiciary of 
both Houses an opportunity to further investigate 
and study the administration and the broader as- 
pects of the orphans' admission program."" 

Implementation of New Acts by Department of State 
and Immigration and Naturalization Service 

As soon as the two amendatory measures were 
passed by both Houses of Congress, the Depart- 
ment of State informed its consular officers over- 
seas. They were also notified when the 
President approved tlie bills on September 9 and 
September 22, 1959, respectively. Pending the 
issuance of visa regulations, they were instructed 
concerning their part in the implementation of 
the new measures. 

As a result of the new immigrant categories 
created by Public Law 86-363, it became neces- 
sary to prescribe the following new immigrant 
visa symbols : 

New Preference Categories 



" (Umiiri-.i.-iiotial Record of July 15, 1959, p. 12254. 
" Ihiil., July 16, 19.59, p. 12386. 



Class 


Section of act 


Symbol 


Unmarried son or daughter of 


203(a)(2) 


U-2 


U.S. citizen (second prefer- 






ence).* 






Unmarried son or daughter of 


203(a)(3) 


V-2 


alien resident (third preference) . 






Married son or daughter of U.S. 


203(a)(4) 


W-2 


citizen (fourth preference). 






Spouse of brother, sister, son, or 


203(a)(4) 


W-3 


daughter of U.S. citizen (fourth 






preference) . 






Child of brother, sister, son, or 
daughter of U.S. citizen (fourth 


203(a)(4) 


W-4 






preference). 






Adopted son or daughter of U.S. 


Sec. 5(c), P.L. 


W-5 


citizen who is beneficiary of 


86-363 




petition approved prior to en- 






actment of P.L. 86-363 (fourth 






preference) . 







' Second preference quota visas issued to parents of 
U.S. citizens will bear the symbol U-1. 



604 



Department of State Bulletin 



New Nonquota Categories 



Class 


Section of act 


Symbol 


Parent of U.S. citizen registered 


Sec. 4, P.L. 


K-15 


prior to December 31, 1953. 


86-3G3. 




Spouse or child of alien resident 


Sec. 4, P.L. 


K-16 


registered prior to December 31, 


86-363. 




1953. 






Brother, sister, son, or daughter 
of U.b. citizen registered prior 


Sec. 4, P.L. 


K-17 


86-363. 




to December 31, 1953. 






Spouse or child of alien classified 


Sec. 4, P.L. 


k:-i8 


K-15, K-16. or K-17. 
Parent of U.S. citizen admitted 


86-363. 




Sec. 6, P.L. 


K-19 


as alien under Refugee Relief 


86-363. 




Act of 1953. 






Spou.se or child of alien admitted 


Sec. 6, P.L. 


K-20 


under Refugee Relief Act of 


86-363. 




1953. 







These symbols are inserted on immigi'ant visas 
and are frequently used in refeiTing to a particu- 
lar immigrant class. The consular officers were 
also informed of the ruling by the Immigration 
and Naturalization Sei^vice that petitions ap- 
proved on behalf of a relative under the old law 
would automatically be valid for the new prefer- 
ence classification of the alien under the new law. 
For example, a fourth preference petition ap- 
proved prior to September 22, 1959, on belialf of 
an unmarried son of a U.S. citizen may be con- 
sidered valid for second preference quota status 
under the new act. This ruling, however, does 
not apply to the case of an adopted son or daugh- 
ter for whom a fourth preference quota petition 
was approved prior to September 22, 1959, the ef- 
fective date of Public Law 86-363. If such an 
alien should become eligible for a higher prefer- 
ence status, a new petition will be required in the 
light of the specific language of the new statute.^'"' 

In implementing the orphan provision of Pub- 
lic Law 86-253 the Immigration and Naturaliza- 
tion Service published regulations on September 
12, 1959, designating Form 1-600, revised on Sep- 
tember 1, 1959, as the petition form to be used by 
the petitioning adoptive parents.^^ The fee for 
filing the petition is $10. 

Recent Immigration Legislation and the President's 
Program 

U.S. inamigration legislation has always stressed 
the principle of unification of families. This con- 
cept has governed the establisliment of quota pref- 
erences imder the Immigration Acts of May 19, 



1921, and May 26, 1924. Increasing emphasis has 
been given to this principle by Congress in the 
Immigration and Nationality Act and in subse- 
quent immigration legislation. 

Another principle was developed in the Immi- 
gration and Nationality Act, namely, that of ac- 
cording quota preference to skilled aliens needed 
in the United States. Public Law 85-316 of Sep- 
tember 11, 1957, evolved the method of according 
nonquota status to prospective immigrants who, 
based on their skill or their close relationship to 
American citizens or permanent resident aliens, 
had qualified for quota preference status before a 
certain cutoff date. Specifically, it accorded non- 
quota status to all aliens entitled to first, second, 
or third preference status on whose behalf the 
Attorney General had approved visa petitions be- 
fore July 1957. The Congress took this step in 
view of the existing oversubscription of the pref- 
erence portions of several immigration quotas. In 
explaining this action the Plouse Judiciary Com- 
mittee observed : " 

It has been the polic.v of the Congress to approve legis- 
lation designed to facilitate the reunification of families 
and it is believed that the enactment of this section of 
the instant bill will be fully in line with that policy. 

The act of August 21, 1958, continued the ap- 
proach initiated by the act of September 11, 1957, 
when it accorded nonquota status to aliens eligible 
for first preference quota visas on whose behalf 
a petition had been approved by the Attorney 
General prior to July 1, 1958, thus extending by 
1 year the cutoff date provided in the 1957 act. 
Commenting on this change the House Judiciary 
Committee noted : ^* 

The amendment represents a further demonstration of 
the committee's recognition of the fact that the entry 
of aliens, whose services are urgently needed in the 
United States by reason of their high education, expe- 
rience, exceptional ability, their special skills, etc., and 
their spouses and children, is in the best interests of the 
United States. 

As described above, Public Law 86-363 converts 
additional categories of preference quota immi- 
grants to nonquota status based on their meeting 



^ P.L. 86-363, 86th Cong., 1st sess., sec. 5(e). 
"24 Fed. Reg. '!ZQ4. 



"H. Kept. 1199, 85th Cong., 1st sess., Aug. 19, 1957, 
p. 12. 

"H. Kept. 2258, 85th Cong., 2d sess., July 23, 1958, 
p. 3. 



Ocfober 26, 1959 



605 



certain deadlines in relation to their registration 
on quota waiting lists and the approval of visa pe- 
titions in their behalf. 

In evaluating the policy of Congress to give 
special recognition to the need for certain skilled 
aliens in the United States and to the principle 
of family unification, it is interesting to note that 
the same considerations motivated the President 
when, in liis messages of February 8, 1956, and 
January 31, 1957, to Congress, he proposed that 
quota numbere not used in one year be reallocated 
on a regional basis during each following fiscal 
year for the use of aliens entitled to preference 
quota status as skilled aliens or as close relatives 
of U.S. citizens or permanent residence aliens. In 
his message of January 31, 1957, the President 
stated : " 

. . . quota numbers unused in one year should be 
available for use in the following year. Under existing 
law if a quota number is not used during the year it 
becomes void. In my view Congress should pool the 
unused quota numbers for Europe, Africa, Asia and the 
Pacific Oceanic area. Those numbers should be distrib- 
uted during a twelve-month period on a flrst-come, first- 
serve basis without regard to country of birth within the 
area. However. I recommend that these unused quota 
numbers he available only to aliens who qualify for pref- 
erence status under existing law — persons having needed 
skills or close relatives in the United States. 

"VVliile the objectives of legislation enacted by 
Congress in recent years and the proposals made 
by the President in his messages to Congress are 
identical, the approach used by Congress presents 
certain administrative problems which the Pres- 
ident's formula would not create. The Depart- 
ment of State commented on the pertinent provi- 
sions of Public Law 86-363 in a letter dated 
August 10, 1959, to the chairman of the Senate 
Judiciary Committee as follows : ^° 

While the Department, as previously statetl, endorses 
the objectives of this bill, it would like to point out 
that the adoption of Congress of the formula for a redis- 
tribution of unused quota numbers, as contained in sec- 
tion 1 of S. 2178, would take care of the iiroblem this 
bill is designe<l to alleviate and would do so on a contlnu- 



" For text, see Bulletin of Feb. 18, 10.57, p. 247. For 
text of message of Feb. 8, 1956, see ibid., Feb. 20, 1950, 
p. 275. 

" S. Rept. 902, 86th Cong., 1st sess., Sept. S. l<)r>!), jt. 6. 
The Department offere<l tlie same comments in a letter to 
Chairman Emanuel Celler of the House Judiciary Com- 
mittee dated June 24, 1959. 



ing basis within the numerical limits of the quotas estab- 
lished for all quota areas. The provisions of section 1 of 
S. 2178 are based on the recommendations of the President 
as set forth in his me.ssages of February 8, 1956, and 
January .31. 1957, to the Congress. It is believed that if 
the President's formula for redistributing unused (luota 
numbers had been adopted when it was first proposed 
the backlog demands on the preference categories would 
have been eliminated within 2 years after its enactment. 
In addition to meeting a recurring problem on a perma- 
nent basis, it would obviate the necessity for such legisla- 
tion as sections 9 and 12 of the act of September 11, 1957, 
and section 2 of the act of August 21, 1958. The Presi- 
dent's proposals would also tend to stabilize the worldoad 
in the Department as well as in the field thereby avoiding 
the need for the employment of temporary staffs with 
all its resultant budgetary and personnel problems. 

If past history of U.S. immigration law is any 
yardstick to future legislation, the following ob- 
servation may be significant. Tlie Immigration 
Act of 1924, as originally passed, accorded non- 
quota status to the alien wife of a U.S. citizen 
but only preference quota status to the alien hus- 
band of a U.S. citizen wife. In 1928 Congress 
amended this provision by according nonquota 
status to alien husbands of American women if 
the marriage occurred before June 1, 1928. Alien 
liusbands by subsequent marriage were still limited 
to preference quota status. In 1932 Congress 
moved the cutoff date from June 1, 1928, to July 
1, 1932, and in 1948 to January 1, 1948. With the 
enactment of the Immigration and Nationality 
Act in 1952 alien spouses of U.S. citizens were 
placed on an equal footing, in-espective of sex. 
Thus Congress, after observing the elfect of tlie 
remedial legislation limited by deadline, eventu- 
ally took care of the existing problem on a per- 
manent basis. 

Should the committees of Congress reach the 
conclusion that aliens entitled to preference quotu 
status because of their skill or close relationship 
to U.S. citizens and permanent resident aliens 
should be given continued consideration on a per- 
manent basis, it would aii])ear tluit the adoption 
of the President's formula for tlie amiual redis- 
tribution of unused quota numbei-s would achieve 
this purpose and would enable the administrative 
agencies entrusted with the enforceuient of the law 
to plan for their biulgetary and stall' needs more 
adequately than they can if confronted with 
periodic enactments which only temporarily 
achieve the desired objective. 



606 



Department of State Bulletin 



INTERNATIONAL ORGANIZATIONS 
AND CONFERENCES 



United States Delegations 
to International Conferences 



Current U.N. Documents: 
A Selected Bibliography ^ 

General Assembly 

Supiilementiiry Estimates for the Financial Year 3959 
(Part I). Thirteenth report of the Advisory Commit- 
tee on Administrative and Budgetary Questions to the 
General Assembly at its 14th session. A/42i;i. Sep- 
tember 21, 1959. 18 pp. 



2d Session of UNHCR Executive Committee 

The Department of State announced on Octo- 
ber 5 (press release 697) the designation of Eobert 
S. McCollum, Deputy Administrator of the Bu- 
reau of Security and Consular Affairs, and 
Charles H. Owsley, Deputy U.S. Representative 
at the European headquarters of the United Na- 
tions at Geneva, as the U.S. Representative and 
Alternate Representative, respectively, to the sec- 
ond session of the Executive Committee of the Pro- 
gram of the U.N. High Commissioner for Ref- 
ugees (UNHCR), which will convene at Geneva, 
October 6, 1959. 

Robert K. Gray of the Wliite House, Secretary 
to the Cabinet, will attend some of the meetings 
of the session and will bring to the Executive 
Committee a message from the President. Par- 
ker Montgomery, special assistant to the Deputy 
Under Secretary of State for Administration, 
and George L. Warren, Jr., of the American Of- 
fice of Field Coordination at Frankfurt am Main, 
Germany, will serve as advisers. 

Tlie 12th session of the U.N. General Assembly 
decided to allow the U.N. Refugee Fund 
(UNREF) to expire as scheduled on December 
31, 1958, and authorized the High Commissioner 
to continue to give supplemental assistance in 
specific refugee situations within the framework 
of his office rather than through a separate fund. 
The U.N. High Commissioner for Refugees is 
Anguste Lindt of Switzerland. 

Some of the main topics this session will con- 
sider include the progress on Hungarian refu- 
gees ; the report on implementation of the General 
As.sembly resolution on assistance to refugees 
from Algeria in Morocco and Tunisia ; a program 
for camp clearance and a fund for special hard- 
ship cases; a program for new refugees in Greece; 
an emergency account for individual cases; and 
the status of goverimiental and private con- 
tributions. 



Economic and Social Council 

Economic Development of Under-developed Countries : 
International Co-operation for the Development of 
Under-developed Countries. Interim report under Gen- 
eral Assembly resolution 1316 (XIII) — additional re- 
plies from governments. E/3258/Add. 2. July 7, 1959. 
13 pp. 

Annual Report of the United Nations High Commissioner 
for Refugees : Addendum. Corrigendum. E/32G3/Add. 
1/Corr. 1. July 13, 1959. 1 p. 

Calendar of Conferences for 1960. Report by the Secre- 
tary-General. B/3300 and Corr. 1. July 30, 1959. 6 
pp. 

Financial Implications of Actions of the Council. Sum- 
mary submitted by the Secretary-General. E/3301. 
July 30, 1959. 6 pp. 

Technical Assistance Committee. Expanded Programme 
of Technical Assistance Payments to the Special Ac- 
count Including Voluntary Payments and Estimated 
Local Costs Assessments for the Ninth Financial Period 
(1959) as at 31 July 1959. E/TAC/REP/153. August 
12, 1959. 5 pp. 

Inter-Agency Agreements and Agreements Between Agen- 
cies and Other Inter-Governmental Organizations. 
Proposed agreement between the International Atomic 
Energy Agency and the International Civil Aviation Or- 
ganization. E/3302. September 10, 1959. 6 pp. 



Trusteeship Council 

Conditions in the Trust Territory of Somaliland Under 
Italian Administration. Communications dated July 
30, 19.59, from the Charge d' Affaires of the permanent 
mission of Ethiopia to the United Nations, addressed 
to the Secretary-General. T/1481. August 3. 1959. 
2 pp. 



Disarmament Commission 

Letter Dated 7 September 1959 From the Representatives 
of France, the Union of Soviet Socialist Republics, the 
United Kingdom of Great Britain and Northern Ire- 
land and the United States of America to the Secretary- 
General Transmitting the Text of a Communique Is- 
sued on 7 September by the Four Powers and Request- 
ing the Convening of the Disarmament Commission. 
DC/144. September 8, 1959. 3 pp. 

Verbatim Record of the Sixty-flfth Meeting, September 
10, 1959. DC/PV.G5. September 10, 1959. 81 pp. 



^ Printed materials may be secured In the United States 
from the International Documents Service, Columbia Uni- 
versity Press, 2960 Broadway, New York 27, N.Y. Other 
materials (mimeographed or processed documents) may 
be consulted at certain designated libraries in the United 
States. 



Ocfober 26, J 959 



607 



Letter Dated 7 September 1059 From the Representatives 
of France, the Union of Soviet Socialist Republics, the 
United Kingdom of Great Britain and Northern Ire- 
land and the United States of America to the Secretary- 
General Transmitting the Text of a Communique Is- 
sued on 7 September by the Four Powers and Request- 
ing the Convening of the Disarmament Commission. 
Joint draft resolution by several states. DC/145. 
September 10, 1959. 1 p. 

Resolution Adopted by the Disarmament Commission at 
its Sixty-nfth Meeting on 10 September 1959. DC/146. 
September 11, 1959. 1 p. 



mission's board of directors will consist of eight 
members, with equal representation of U.A.R. and 
U.S. citizens. In addition, the U.S. Ambassador 
and the U.A.R. Minister of Education will serve 
jointly as honorary chairmen of the board. 



Current Actions 



TREATY INFORMATION 



United States and U.A.R. Sign 
Educational Excliange Agreement 

Press release 689 dated September 30 

The United Arab Republic and the United 
States signed on September 28 an agreement put- 
ting into operation a new program of educational 
exchanges authorized by the Fulbright Act. The 
signing took place at Cairo with Kamal al-Din 
Hussein, Minister of Education, representing the 
U.A.R. Government and Ambassador Raymond A. 
Hare representing the U.S. Government. 

The agreement makes available U.A.R. cur- 
rency received from the sale of surplus agricul- 
tural products in the United Arab Republic to 
finance exchanges of persons between the two coun- 
tries to study, conduct advanced research, teach, or 
engage in other educational activities. The pur- 
pose of this program will be to further mutual 
understanding between tlie peoples of the United 
Arab Republic and the United States through a 
wider exchange of knowledge and professional 
skills. Exchanges of persons under the Ful- 
bright Act are carried out as a regular part of the 
international educational exchange program of 
the Department of State. 

Under the terms of the agreement a binational 
commission, to be known as the Commission for 
the Exchange of Students and Professors Between 
the United States of America and the United Arab 
Republic, will be established in Cairo to facilitate 
the administration of the program. The Com- 



MULTILATERAL 

Agriculture 

Protocol of amendment to the convention on the Inter- 
American Institute of Agricultural Sciences of January 
15, 1944 ( 58 Stat. 1169) . Opened for signature at Wash- 
ington December 1, 1958.^ 
Signature: Haiti, June 1, 1959. 

Aviation 

Protocol relating to certain amendments to the convention 
on international civil aviation (TIAS 1591). Done at 
Montreal June 14, 1954. Entered into force December 
12, 1056. TIAS 3756. 
Ratification deposited: Guinea, June 26, 1959. 

International Court of Justice 

Statute of the International Court of Justice (59 Stat 
10.55). 

Declaration recognizing compulsory jurisdiction de- 
posited (with conditions and reservations) : India, 
September 14, 1959.' Effective until notice of termi- 
nation is given. 

Telecommunication 

Telegraph regulations (Geneva revision, 1958) annexed to 
the international telecommunication convention of De- 
cember 22, 1952 (TIAS 3266), with appendixes and final 
protocol. Done at Geneva November 29, 1958.' 
Ratified by the President: September 10, 1959. 



BILATERAL 

China 

Agreement amending the agreement of January 13, 1954, 
for the loan of two United States destroyers to China 
(TIAS 2916). Effected by exchange of notes at Taipei 
September 22, 1959. Entered into force September 22, 
19,50. 

Germany, Federal Republic of 

Agreement relating to air traffic control. Signed at 
Bonn October 1, 1959. Entered into force October 1, 
1959. 

India 

Understanding that the assurances contained in the agree- 
ment of March 7 and 16, 1951 (TIAS 2241), are appli- 
cable to equipment, materials, information, and services 



' Not in force. 

" Over all disputes arising after Jan. 26, 1950, with 
regard to situations or facts subsequent to that date. 



608 



Department of Stale Bulletin 



furnished under the Mutual Security Act of 1954 (22 
U.S.C. 1751), as amended, and such other applicable 
United States laws as may come into effect. Effected 
by exchange of notes at New Delhi April IG and De- 
cember 17, 1958. ICntered into force December 17, 1958. 

Korea 

Agreement on disposal of United States excess property 
located in Korea, with memorandum of interpretation 
and understanding. Signed at Seoul October 1, 1959. 
Entered into force October 1, 1959. 

Lebanon 

Agreement providing for a grant to the Government of 
Lebanon to assi.st in the acquisition of nuclear research 
and training equipment and supplies. Effected by ex- 
change of notes at Beirut September 16, 1959. Entered 
into force September 16, 1959. 

Peru 

Agreement further amending the agricultural commodi- 
ties agreement of April 9, 1958, as amended (TIAS 
4045 and 4118). Effected by exchange of notes at Lima 
September 11 and 25, 1959. Entered into force Septem- 
ber 25, 1959. 

United Arab Republic 

Agreement for financing certain educational exchange 
programs. Signed at Cairo September 28, 1959. En- 
tered into force September 28, 1959. 

Agreement for financing certain educational exchange 
programs, with exchange of notes. Signed at Cairo 
November 3, 1949. TIAS 2039. 
Terminated: September 28, 1959. 



DEPARTMENT AND FOREIGN SERVICE 



Department Exhibits Photographs 
of Korean Monuments and Temples 

The Department of State announced on October 
2 (press release 693) that an exhibition of color 
photographs of Korean monuments of architec- 
ture and sculpture would be held in the lobby of 
the Department of State building, October 6-23. 
The exhibit is sponsored by the Government of 
the Republic of Korea and the Korea Society. 

The photographs were taken by the U.S. Army 
Signal Corps and the U.S. Embassy at Seoul dur- 
ing a Department of State survey of the losses 
and survivals of historic and artistic monuments 
during the Korean conflict. The survey was made 
by Ardelia R. Hall, Arts and Monuments Adviser 
of the Department of State, in cooperation with 
the Embassy at Seoul and the Korean Government. 

This exhibition is the first showing of the Signal 
Corps photographs of Korea's national treasures. 



The photographs portray temples and palaces in 
the natural beauty of their mountain settings. 
They also show stone monuments and gilded 
bronze statues, masterpieces of sculpture from the 
seventh and eighth centuries A.D. Following 
this exhibition three duplicate exhibits will be 
sent on tours in the United States and Europe. 

Closing of Consulate at Niagara Falls 

Press release 685 dated September 30 

The Department of State announced on September 30 
that the U.S. consulate at Niagara Falls, Ontario, Canada, 
will be closed to the public on November 27 and its func- 
tions transferred to the U.S. consulate general at Toronto. 

After November 27, 19.59, all visa, citizenship, and other 
consular services formerly rendered by the Niagara Falls 
office w-ill be handled by the U.S. consulate general at 360 
University Avenue, Toronto, Ontario, Canada. 

The decision to close the Niagara Falls office was 
reached after consideration of a study which showed that 
the functions of the consulate could be carried on more 
economically by the consulate general in Toronto and that 
transportation facilities were such that few people would 
be inconvenienced by this decision. 

Recess Appointments 

The President on October 5 appointed Walter P. Mc- 
Conaughy to be Ambassador to Korea. (For biographic 
details, see Department of State press release 700 dated 
October 6.) 

Designations 

James G. Hoofnagle as Deputy Budget and Finance Of- 
ficer, effective August 23. 

Edwin E. Vallon as Deputy Director, Office of Caribbean 
and Mexican Affairs, effective October 4. 



PUBLICATIONS 



Recent Releases 

For sale hy the Superintendent of Documents, U.S. Oov- 
ernment Printing Office, Washington 25, B.C. Address 
requests direct to the Superintendent of Documents, ex- 
cept in the case of free publications, ivhich may 6e o6- 
tainod from the Department of State. 

Mutual Security in Action— Pakistan. Pub. 6819. Near 
and Middle Eastern Series 40. 12 pp. 10^. 

A fact sheet discussing the country, government, economy, 



October 26, 1959 



609 



and problems of Pakistan and the extent of the U.S. as- 
sistance programs. 

Development of Resources Key to Iran's Future. Pub. 
6840. Near and Middle Eastern Series 42. 14 pp. Lim- 
ited distribution. 

Address delivered by Harry A. Brenn, Director of U.S. 
Operations Mission in Iran, before the Iran-America 
Society at Tehran, Iran, on May 6, 1959. 

U.S. Participation in the UN. Pub. 6852. International 
Organization and Conference Series 4. xvii, 300 pp. 
75^. 

An annual report by the President to the Congress on the 
participation of the United States in the United Nations 
during 1958. 

U.S. Participation in the International Atomic Energy 
Agency. Pub. 6870. International Organization and Con- 
ference Series 5. 58 pp. Limited distribution. 

The second annual report by the President to the Congress 
on the participation of the United States in the Interna- 
tional Atomic Energy Agency for the year 1958. 

Surplus Agricultural Commodities. TIAS 4238. 10 pp. 
10^. 

Agreement between the United States of America and 
Uruguay, supplementing agreement of February 20, 1959. 
Signed at Montevideo May 21, 1959. Entered Into force 
May 21, 1959, with exchange of notes. 

Surplus Agricultural Commodities. TIAS 4239. 5 pp. 

5<f. 

Agreement between the United States of America and 
Brazil, amending agreement of December 31, 1956, as cor- 
rected and amended. Exchange of notes — Signed at 
Washington May 29, 1959. Entered into force May 29, 
1959. 



TIAS 4245. 10 pp. 



Surplus Agricultural Commodities. 

10<t. 

Agreement between the United States of America and 
Poland. Signed at Washington June 10, 1959. Entered 
into force June 10, 1959, with exchange of notes. 

Surplus Agricultural Commodities. TIAS 4246. 8 pp. 
10^. 

Agreement between the United States of America and 
Argentina. Signed at Washington June 12, 1959. En- 
tered into force June 12, 1959, with exchanges of notes. 



TIAS 4248. 16 pp. 



Surplus Agricultural Commodities. 

10«f. 

Agreement between the United States of America and 
Indonesia. Signed at Djakarta May 29, 1959. Entered 
into force May 29, 1959, with exchanges of notes. 

Army, Naval, and Air Force Missions to Ecuador. TIAS 

4249. 3 pp. 5<J. 

Agreement between the United States of America and 
Ecuador, amending agreements of June 29, 1944, as 
amended and extended, and December 12, 1940, as 
amended and extended. Exchange of notes — Dated at 
Quito February 25 and May 22, 1959. Entered into force 
May 22, 1959. 

Atomic Energy — Cooperation for Civil Uses. TIAS 4251. 
6 pp. 5^. 

Agreement between the United States of America and 



Viet-Nam. Signed at Washington April 22, 1959. En- 
tered into force July 1, 1959. 

Defense — Credit Sales of Military Equipment, Materials, 
and Services. TIAS 4252. 2 pp. 5<*. 

Agreement between the United States of America and 
the NATO Maintenance Supply Services System. Signed 
at Paris June 22, 1959. Entered into force June 22, 1959. 

American Commission for Cultural Exchange With 
Italy — Educational Exchange Program. TIAS 4254. 4 
pp. 5«*. 

Agreement between the United States of America and 
Italy, amending agreement of December 18, 1948, as 
amended. Exchange of notes — Signed at Rome June 17, 
1959. Entered into force June 17, 1959. 



Check List of Department of State 
Press Releases: October 5-11 

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

Releases issued prior to October 5 which appear 
in this issue of the Bulletin are Nos. 680 of Sej)- 
temlier 20, 685 and 689 of September 30, and 693 of 
October 2. 

Sabject 

U.S. observer delegation to CENTO 
ministerial meeting (rewrite). 

U.S. delegation to U.N. refugee meet- 
ing (rewrite). 

U.S. members of Permanent Court of 
Arbitration (rewrite). 

Brand : Far East-America Council of 
Commerce and Industry. 

McConaughy appointed Ambassador to 
Korea (biographic details). 

Ethiopian Crown Prince tours U.S. 
(rewrite). 

Herter : question of summit conference 
(combined with No. 703). 

Herter : news conference. 

Herter : CENTO ministerial meeting. 

Program for visit of President of 
Mexico (rewrite). 

Dillon: "Strengthening the Founda- 
tions of Freedom in the Far East." 

President Eisenhower: message to Far 
East-America Council of Commerce 
and Industry. 

DLF loan to Iran (rewrite). 

Holmgreen receives ICA distinguished 
service award. 

Revisions on itinerary of President of 
Slexico. 

Refuiree relief (rewrite). 

Merchant: World Affairs Council of 
Philadelphia. 

U.S. delegation to conference on Ant- 
arctica (rewrite). 

Dillon trip to GATT meeting. Tokyo. 

Cultural exchange (Togoland). 

* Not printed. 

t Held for a later issue of the Bulletin. 



No. 


Date 


696 


10/5 


697 


10/5 


698 


10/5 


t699 


10/5 


*700 


10/6 


701 


10/6 


702 


10/6 


703 

704 

t705 


10/6 
10/7 
10/7 


706 


10/7 


707 


10/7 


708 
•709 


10/7 
10/7 


*710 


10/8 


'Til 


10/9 


712 


10/9 


t713 


10/9 


i714 
*715 


10/9 
10/9 



610 



Department of State Bulletin 



October 26, 1959 



Index 



Vol. XLI, No. 1061 



American Republics 

Hemispheric Progress Based on Understanding 

(Rulwttoui) 593 

Vallon designated as deputy director, Office of 

Caribbean and Mexican Affairs 609 

Asia 

President Eisenhower Sends Greetings to Far East- 
America Council 573 

Strengthening the Foundations of Freedom in the 
Far East (Dillon) 571 

Canada. Closing of Consulate at Niagara Palls . 609 

China. Strengthening the Foundations of Free- 
dom in the Far East (Dillon) 571 

China, Communist. Secretary Herter's News Con- 
ference of October 6 575 

Congress, The, Immigration Legislation, 1959 

(Auerbach) 600 

Department and Foreign Service 

Closing of Consulate at Niagara Falls .... 609 

Designations (Hoofnagle, Vallon) 609 

Recess Appointments (McConaughy) 609 

Disarmament. Prospects for Forthcoming Nego- 
tiations on Major World Issues (Merchant) . . 588 

Economic Affairs. Hemispheric Progress Based 

on Understanding (Rubottom) 593 

Educational Exchange. United States and U.A.R. 

Sign Educational Exchange Agreement . . . 608 

Ethiopia. Crown Prince of Ethiopia Tours United 

States 592 

Germany 

Prospects for Forthcoming Negotiations on Major 

World Issues (Merchant) 588 

Secretary Herter's News Conference of October 6 . 575 

Immigration. Immigration Legislation, 1959 

(Auerbach) 600 

International Law. President Designates U.S. 

Members of Permanent Court of Arbitration . . 587 

International Organizations and Conferences 

Central Treaty Organization Holds Ministerial 
Meeting at Washington (Herter, Nixon, texts 
of communique) 581 

President Designates U.S. Members of Permanent 

Court of Arbitration 587 

2d Session of UNHCR Executive Committee (dele- 
gation) 607 



Iran 

Central Treaty Organization Holds Ministerial 
Meeting at Washington (text of declaration on 

propaganda campaign against Iran) 586 

Development Loan 587 

President Eisenhower Talks With Prime Minister 

of Iran 587 

Korea 

Department Exhibits Photographs of Korean 

Monuments and Temples 609 

McConaughy appointed as ambassador .... 609 
Strengthening the Foundations of Freedom in the 

Far East (Dillon) 571 

Middle East. Central Treaty Organization Holds 
Ministerial Meeting at Washington (Herter, 

Nixon, texts of communique) 581 

Mutual Security. Development Loans (Iran) . . 587 
Presidential Documents. President Eisenhower 

Sends Greetings to Far East-America Council . 573 

Publications. Recent Releases 609 

Refugees. 2d Session of UNHCR Executive Com- 
mittee (delegation) 607 

Treaty Information 

Current Actions 608 

United States and U.A.R. Sign Educational Ex- 
change Agreement 608 

U.S.S.R. 

Prospects for Forthcoming Negotiations on Major 

World Issues (Merchant) 588 

Secretary Herter's News Conference of October 6 . 575 

United Arab Republic. United States and U.A.R. 

Sign Educational Exchange Agreement .... 608 

United Nations. Current U.N. Documents . . . 607 

Name Index 

Asfa Wossen 592 

Auerbach, Frank L 600 

Dillon, Douglas 571 

Eisenhower, President 573 

Herter, Secretary 575,583 

Hoofnagle, James G 609 

McConaughy, Walter P 609 

Merchant, Livingston T 588 

Nixon, Richard M 581 

Rubottom, R. R., Jr 593 

Smith, Harold A 587 

Vallon, Edwin A 609 

Webster, Bethuel W 587 



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Vol. XLI, No. 1062 / O Nt^embV 2, 1959 

THE QUESTION OF DISARMAMENT ^ Statement by 

Ambassador Henry Cabot Lodge ... Jv« • • -^ -.^ • • • ol5 

PRESIDENTS OF MEXICO AND UNITED STATES 

REAFFIRM TIES OF FRIENDSHIP 624 

THE FUTURE COURSE OF THE DEVELOPMENT 

LOAN FUND • by Vance Brand 635 

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THE COLD WAR AND THE KHRUSHCHEV VISIT • 

by Assistant Secretary Berding 627 



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THE DEPARTMENT OF STATE 




Vol. XLI, No. 1062 • Publication 6904 
November 2, 1959 



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The Question of Disarmament 



Statement hy Henry Cabot Lodge 

U.S. Representative to the General Assembly ' 



Once again in the United Nations we turn to 
the question of disarmament, on which so mucli 
of the world's yearnings for peace are concen- 
trated. The United States is as fully aware as 
ev^er that it shares a great responsibility for wise 
decisions on disarmament which will contribute to 
peace. In our efforts to carry out that responsi- 
bility we seek, as always, the help and encourage- 
ment of the General Assembly, to which the 
charter assigns a special function in the disarma- 
ment field. 

Last Friday [October 9] in this committee we 
heard Mr. [V. V.] Kuznetsov's speech elaborating 
on the Soviet Union's proposal for complete and 
total disarmament - which was made by Chair- 
man Khrushchev to the General Assembly. Be- 
fore commenting on the Soviet proposal, let me 
recall briefly three important steps which have 
taken place in the disarmament field in this past 
year, which Mr. Kuznetsov did not mention but 
which are important nonetheless. 

First, we have had real negotiations aimed at an 
agreement to stop all tests of nuclear weapons 
under international control.^ These talks were 
first proposed by the United States. They have 
been going on at Geneva since October 1958 be- 
tween the United States, the United Kingdom, 
and the Soviet Union. There are several very 
important issues to be met, but the amount of 
agreement already achieved is encouraging. 

Second, late in 1958 experts from 10 powers met 



'Made in Committee I (Political and Security) on Oct. 
14 (U.S. delegation press release 3252 dated Oct. 13). 

' For text of the Soviet proposal, see U.N. doc. A/4219. 

'For a statement by .Tames J. Wadsworth on Mar. 2,5, 
1959, reviewing the negotiations, see Blti.i.etin of May 
18, 1959, p. 700. 



in Geneva to discuss the techniques of safeguard- 
ing against surprise attack. Even though there 
was no agreement, the very fact that this meeting 
took place testified to the fact that the problem 
of surprise attack is recognized as overwhelmingly 
important. Groundwork was laid which will 
make future efforts more fruitful. 

Third, the United States, France, the Soviet 
Union, and the United Kingdom have agreed on 
the establishment of a 10-nation disarmament 
committee * to resume general disarmament nego- 
tiations early next year, a step which was wel- 
comed only a month ago by the 82-member 
Disarmament Commission of the United Nations.' 

The proposals we have heard from the Soviet 
Union during this Assembly, and also the more 
detailed proposals made to the Assembly by 
Foreign Secretary [Selwyn] Lloyd of the United 
Kingdom," will undoubtedly be considered in that 
10-nation committee. 

Those are three positive signs. In the light of 
them let me now comment briefly on the Soviet 
proposal as outlined by Mr. Kuznetsov. 

U.S. Attitude on Disarmament 

This is not the place to consider details, but I 
wish to make clear the general attitude of the 
United States. I can sum it up m three points. 

First, the United States unreservedly supports 
and has always supported the greatest possible 
amount of controlled disarmament. 

Second, in any disarmament program, whether 



' For text of Four Power communique of Sept. 7, see 
ibid., Sept. 28, 1959, p. 438. 
' Ibid., p. 439. 
" For text, see U.N. doc. A/PV.798. 



November 2, 7959 



615 



it be 100 percent or 1 percent disarmament, ade- 
quate and timely inspection and control must be 
built into the system, so that both sides reduce 
their armaments in plain sight of each other every 
step of the way. Such a program creates confi- 
dence; anything less creates fear, mutual suspi- 
cion, increased tension, and mcreased danger of 
war. 

Third, we do not know what inspection and 
control the Soviet Union would accept on its own 
proposal for complete disarmament. And I am 
sori'y to say that Mr. Kuznetsov's general assur- 
ances on this point in his speech last Friday did 
not do much to enlighten us. In fact, as he him- 
self said, at this stage it would not be advisable 
to examine details, "including the details of 
control." 

These considerations, Mr. Chairman, lead the 
United States to conclude that the detailed con- 
sideration of the Soviet proposal, and of other 
proposals as well, should be the job of the new 10- 
nation disarmament committee, on the establish- 
ment of which the Soviet Union and we have 
agreed. 

As far as the United States is concerned, we 
will join in the 10-nation committee in giving to 
the Soviet proposals the most serious scrutiny. 
And the sounder and clearer and more unambigu- 
ous the accompanying plan for inspection and 
control, which we have not yet seen, the more at- 
tention the proposal itself will deserve. There 
cannot be 100 percent disarmament with only 10 
percent inspection. 

Wlien the 10-nation committee meets it will 
have before it other proposals as well. For ex- 
ample, we look forward to discussing there the 
proposals of the United Kingdom as set forth by 
Foreign Secretary Lloyd. 

As for the United States, President Eisenhower 
has recently set in motion a new and thorough 
review of disarmament in the light of present- 
day technology.' This review will prepare us to 
participate fully and constructively in the de- 
liberations scheduled for next year. 

The United States has made many concrete pro- 
posals in the past for both comprehensive and 
partial disarmament in its repeated attempts to 
cut the Gordian knot. We are ready, as we have 
always been, to examine sympathetically and in 
a constructive spirit any equitable and control- 



' Bulletin of Aug. 17, 1959, p. 237. 
616 



lable proposals — since only such proposals will 
permit progress toward our goal. 

While we are exploring these new ideas we 
must not forget the practical smaller steps which 
we might now be able to take and which can lay 
the basis for further progress. We must not be 
such perfectionists that we reject useful ideas. 
We must not fall victim to the fallacy that noth- 
ing can be done in the field of disarmament until 
everything is done. In this field there are many 
urgent goals which are both practicable and 
significant. 

Conference on Surprise Attack 

This past year has seen some important de- 
velopments in this area of limited measures. The 
first was in surprise attack. The Assembly has 
before it in document A/4078 of January 5 the 
report of the conference of experts on surprise 
attack. As members of this committee know, this 
meeting did not result in agreement among the 
participating nations. Unfortunately the two 
sides involved came to the conference with radi- 
cally different conceptions of what it was to ac- 
complish. AVhile the results are disappointing, it 
should not be said that the talks were useless. 

This conference was proposed by the United 
States to study the technical aspects of safeguards 
against surprise attack. We had hoped that the 
successful conference of experts on nuclear test- 
ing could point the way to an equally successful 
consideration of this more difficult problem. 

Accordingly the experts of the Western democ- 
racies prepared for serious scientific discussion at 
this conference and presented at the outset a tech- 
nical survey of the full range of possible instru- 
ments of surprise attack and of their capabilities 
and characteristics. They submitted various il- 
lustrative papers suggesting how these techniques 
could be combined in different systems of observa- 
tion and inspection to safeguard against attack by 
different weapons systems. These papers and an 
analysis of some of the problems of designing an 
integrated system may be found in the document 
I cited earlier. 

We of tlie democratic countries believed that 
these papers could serve as a point of departure 
for technical discussions to achieve a common un- 
derstanding of the technical problems and possi- 
bilities involved in controlling the danger of sur- 
prise attack. We sought this understanding in 

Department of State Bulletin 



ordei- to lay a sound basis for subsequent political 
negotiations, where the question of the accept- 
ability of various measures and their relationship 
to other arms-control steps would properly be 
considered. 

On the other hand, the Soviet Union and its 
allies, in our view, put the cart before the horse. 
They proposed conclusions before agreement was 
even reached on the facts to be discussed. 

After the period of time originally suggested 
by the Soviet Union for the discussion had 
elapsed, the meeting recessed to allow further con- 
sideration of the terms of reference of the con- 
ference by their governments.^ There appeared 
to be little purpose in continuing a meeting in 
which the two sides did not use a common 
language. 

The United States continues to believe that 
technical considerations cannot be bypassed if we 
are to find ways to reduce the dangers of mas- 
sive surprise attack. However, if we cannot have 
discussions solely on the technical aspects of this 
subject, the United States is prepared to join in 
treating the full range of technical issues along 
with the political problems. The forthcoming 10- 
power negotiations seem to offer such an op- 
portunity. 

Progress Made in Nuclear Test Talks 

Mr. Chairman, there is one issue among the 
many which make up the disarmament problem 
which we had already brought a long way toward 
solution before the 10-nation group was set up. 
That is the search for a treaty to end nuclear tests 
imder international control. The negotiations on 
this question have progressed so far in their pres- 
ent foi-m that the United States believes they 
should be continued under the same auspices and 
should be vigorously pressed to completion. 

Let me stress again the promise which we see 
in these nuclear test talks. They have been going 
on for nearly a year, but we are not disheartened. 
Progress has been considerable. 

It is of the highest importance that all three of 
the powers involved should press on with these 
nuclear test suspension talks in an earnest effort to 
reach agreement as soon as possible. Not only 
is the subject important in its own right ; it is also 
important for its bearing on the whole disarma- 



ment problem and especially the vital question of 
control. Every step forward taken in tliese ne- 
gotiations can break a trail for control of future 
disarmament agreements. 

Wlien tlie negotiations were expected to begin 
last year. President Eisenhower announced that 
the United States would refrain from all nuclear 
tests for 1 year from October 31-the day the 
talks began.** That year ends in a few weeks. 
We so urgently want these talks to succeed that 
the Pi-esident of the United States has extended 
this unilateral pledge to the end of the present 
year, 1959.^° 

The United States regards these negotiations 
as a key to our ability to deal effectively and real- 
istically with the problem of arms control. For 
the first time since 1946 we have been able to pro- 
gress from generalities about disarmament to the 
long and difficult, but indispensable, process of 
actually drafting a treaty. This in itself is a 
significant move ahead. Although many issues of 
principle remain unsolved, the negotiating powers 
have been able to reach agreement on a number 
of important points. 

Agreements Reached 

First, agreement has been reached that the ob- 
ligation to stop nuclear weapons testing and the 
establisliment of the control systems must go hand 
in hand. Acceptance of this key principle by the 
Soviet Union is definitely encouraging for the 
broader prospects of arms control. 

Secondly, agreement has been reached that the 
treaty will last indefinitely so long as the obliga- 
tions and terms of the treaty are being fulfilled 
and observed. The United States and United 
Kingdom have dropped their insistence that con- 
tinuation of the test ban be year by year and 
dependent upon progress toward general disarma- 
ment, a position which the Soviet Union regarded 
as a fundamental bar to agreements. 

Thirdly, agreement has been reached on the 
broad outlines of an organizational structure for 
the control system, which will be headed by a 
seven-nation control commission, to direct its 
operations. Vienna has been agreed as the head- 
quarters of the organization. 

Fourthly, agreement in principle has been 
reached that nuclear explosions for peaceful pur- 



* For a Department statement made when the talks re- 
cessed on Dec. 18, 1958, see ibict., Jan. 5, 1959, p. 13. 



'J6td., Sept. 8, 1958, p. 378. 
'°Ibid., Sept. 14, 1959, p. 374. 



November 2, 1959 



617 



poses will be allowed. The United States believes 
there may be important peaceful applications for 
nuclear explosives in the future. These ex- 
plosions should be carried out under carefully 
prescribed conditions under international 
observation. 

Fiftli, agreement has been reached on the spe- 
cific wording of 17 treaty articles and a preamble. 
Many of these articles deal with noncontroversial 
and clearly subordinate matters. However, they 
represent the first definite treaty provisions in the 
field of arms control on which agreement has been 
reached in the 14 years since the United Nations 
was established. 

Sixth, agreement has been I'eached that the 
treaty will be open for adherence by other nations 
and that the common objective is to establish a 
worldwide control system. Naturally, the ti-eaty 
will initially come into force when it is ratified by 
the United Kingdom, the United States, and the 
U.S.S.E. 

Seventh, agreement has been reached that the 
treaty provisions would be reviewed periodically 
to evaluate the effectiveness of the controls and to 
determine the need for specific improvements. 
Procedures for amendment of the treaty have been 
agreed. 

Finally, scientists representing the three pow- 
ers met at Geneva and reached agreed technical 
conclusions on ways and means of detecting high- 
altitude and outer-space explosions by satellites 
and certain ground-based instruments. This fills 
one of the important technical gaps which existed 
at the outset of the conference. That, Mr. Chair- 
man, is a brief recital of what has been accom- 
plished in this field — things that we and the Soviet 
Union have agreed to. 

Issues Which Remain Unsettled 

Let me now turn to the more important of the 
issues which remain unsettled. 

First, there is tlie question of the makeup of 
the international staff at the control posts which 
are to be set up throughout the world. The posi- 
tions of the negotiating parties have come closer, 
but an important gap still remains. After much 
discussion, the Soviet Union has now agreed to 
the stationing of 10 or 11 foreign specialists at 
each control post, where the technical personnel 
will number about 30. The Western Powers 
have proposed that each control post be made 



up of one-third United States-United Kingdom 
nationals, one-third Soviet nationals, and one- 
tliird specialists from countries other than those 
three and that the post chief not be a national of 
the host country. If our aim is a worldwide con- 
trol system, pi'ovision must be made for partici- 
pation from other members of the United Nations. 
We hope that when the negotiations resume the 
Soviet Union will agree to this proposal and that 
this issue can be considered to be "settled." 

A second major remaining problem centers on 
the question of the voting procedure to be used 
by the control commission in reacliing decisions. 
There has been a great deal of discussion of this 
question, with movement on both sides. The 
Soviets continue to demand a veto over budget- 
ary, financial, administrative, and economic mat- 
ters, and their position on the veto in certain 
other cases is not entirely clear to us. We have 
repeatedly stated we are not willing to subject 
to the veto the day-to-day operations of the sys- 
tem designed to make sure that nuclear weapons 
tests have in fact ceased. 

Finally- — and by far the most important — is the 
question of inspection. Let me sketch briefly 
the technical facts about this issue. 

"VAHien a nuclear weapon is exploded under- 
ground, no radioactive debris is put into the 
atmosphere. The only clue left by such explo- 
sions is in the form of seismic signals, which 
would be recorded under normal conditions on 
control post instruments. The difficulty is that 
these signals are indistinguishable from those 
created by natural disturbances such as earth- 
quakes, which occur in great numbers through- 
out the Avorld. Accordingly in many instances 
the only way to tell whether the signals received 
come from earthquakes or from underground tests 
conducted in violation of an agreement is to go 
to the spot and conduct an inspection. 

The experts' report of August 1958 '^ had this 
to say about these disturbances — manmade or 
natural — which could not be identified on the 
basis of control post readings : 

For those cases which remain unidentified inspection of 
the region will he necessary. . . . the international con- 
trol organ can send an inspection group to the site . . . 
in order to determine whether a nuclear explosion had 
taken place or not. 

Tlie experts estimated there would be between 



" For text, see ihid., Sept. 22, 1958, p. 453. 



618 



Department of Sfafe Bulletin 



20 and 100 such unidentified events a year, but 
this applied only to fliose having a signal equiva- 
lent in strength to a weapon of 5,000 tons of TNT 
j'ield or above. There would be a much larger 
number below this yield. This estimate was 
based almost entirely on the data presented by 
United States experts about the one under- 
ground nuclear explosion wjiich, so far as we 
know, had then taken place. Between tliat time 
and 31 October 1958 the United States conducted 
further underground nuclear explosions which 
indicated that this estimate was in error and that 
the problem of identifying undergi'ound events 
is more difficult tlian we had previously believed. 

We presented these data to the conference last 
January 5." Further, on July 12 we presented 
our ideas on how the control system instruments 
might be improved to compensate to some degree 
for these difficulties." "We proposed that tlais 
problem be discussed at an early date by scientists 
from tlie three powers. We also suggested tliat 
these scientists should examine the possibilities of 
artificially muffling nuclear explosions conducted 
underground and the countermeasures which 
could be taken to protect against evasion of an 
agreement in this way. 

The Soviet Union has not yet consented to this 
technical discussion. It is of great importance 
that the discussion take place. Only in this way 
can we be sure that the complex and costly control 
system which we propose to set up will not be 
obsolete from the start and will actually do the 
job for which it is intended. 

U.S. Position on Inspection of Unidentified Events 

The United States position, in a nutshell, is 
this: We must discuss the data which have been 
accumulated since the expei-ts' report and decide 
on what, if any, improvements are to be made in 
the system before we can decide on the precise 
level of inspection needed to assure adequate con- 
trol. We do not believe that evei"y unidentified 
event must be inspected. But we do believe that if 
the control system is to be effective there must 
be some reasonable relation between the number 
of inspections and the number of unidentified 
events recorded by the system's instniments. We 



''Ibid., Jan. 26, 1959, p. 118. 

" For a summary of the conclusions reported by the 
Panel on Seismic Improvement, see ihid., July 6, 1959, 
p. 10. 



believe a violator would gain a substantial mili- 
tary advantage if he could, with no real chance of 
getting caught, conduct secret nuclear explosions 
oven in the small-yield ranges. 

If the Soviet Union will accept this principle, 
a major step will have been taken toward success- 
ful conclusion of the Geneva negotiations. 

If the Soviet Union is not yet ready to accept 
what is required to provide an adequate system 
of control for underground tests — and we hope 
this will not be the case — I would remind the com- 
mittee of the alternative set forward by President 
Eisenhower in his letters of April 13 " and May 
5 '^ to Mr. Khrushchev. 

In his letter of May 5 the President wrote that, 
if it proved impossible to reach early agreement 
on all aspects of a comprehensive test ban, we need 
not allow this to result in complete failure of the 
negotiations. He stated an alternative, which the 
United States is still prepared to stand by, in 
these words: 

It is that starting now we register and put into effect 
agreements looking toward the permanent discontinuance 
of all nuclear weapons tests in phases, expanding the 
agreement as rapidly as corresponding measures of con- 
trol can be incorporated in the treaty. I would again pro- 
pose that toward this end we take now the first and read- 
ily attainable step of an agreed suspension of nuclear 
weapons tests in the atmosphere up to the greatest height 
to which effective controls can under present circum- 
stances be extended. 

This first step would immediately reduce the fears 
of fallout which have been so frequently expressed. 

U.S. Eager for Progress on Disarmament 

I conclude. 

The United States is eager for progress toward 
disarmament. We have been striving for 14 years, 
and we are not going to give up now. We are will- 
ing to take large steps or small steps — as long as 
they are real steps taken in confidence and all 
concerned take equal steps together. 

The road to complete disarmament is long. The 
United States will be happy to travel to the end 
of it. 

We will rejoice over savings from reduced arma- 
ments that can be spent instead to heal the sick, 
to feed the hungry, and to erase poverty from the 
world. Only yesterday, Mr. Chairman, Mr. Eisen- 



" For text, see ihid., May 18, 1959, p. 704. 
" For text, see ibid., June 8, 1959, p. 825. 



November 2, 7959 



619 



hower, when he was in Abilene, Kansas, reasserted 
his belief in this goal in these words: 

No other aspiration dominates my own being so much 
as this: that the nations of East and West will find 
dependable, self-guaranteeing methods to reduce the vast 
and essentially wasteful expenditures for armaments, so 
that part of the savings may be used in a comprehensive 
and effective effort for world improvement. 

If all nations lay down their arms, there must 
be institutions to preserve international peace and 
security and promote the rule of law. 

It seems to the United States Government that 
there are three questions in particular to which 
detailed answers should be sought : 

1. What type of international police force 
should be established to preserve international 
peace and security ? 

2. Wliat principles of international law should 
govern the use of such a force ? 

3. "Wliat internal security forces, in precise 
terms, woitld be required by nations of the world 
if existing armaments are abolished ? 

We would welcome the views of members of 
this committee on how these complex and impor- 
tant questions might best be studied. The Dis- 
armament Commission may well be the proper 
body to examine these matters. 

We should not overlook the many other practi- 
cal steps which lie right before us and not fall 
victims to the all-or-nothing theory of disarma- 
ment. We welcome the Soviet Union's expression 
of willingness to seek progress through limited 
steps. For our part, the United States is willing 
and anxious to move forward on any aspect of 
this great problem, including the following : 

Reducing the threat of surprise attack ; 

Gaining experience in the actual operation of 
workable systems of international control ; 

Lightening the great weight of all armaments, 
both nuclear and other types ; 

And — first in priority because nearest to realiza- 
tion — a controlled cessation of nuclear tests. 

We hope the Assembly will encourage us in our 
approach to these goals. And we assure tlie So- 
viet Union that, in the process of translating 
words into action for disarmament and peace, the 
Soviet Union will lind tlio United States unflag- 
ging in its determination to get results. 



President Eisenhower E^edicates 
Library at Abilene 

Address by President Eisenhower^ 

I am glad indeed to come again to Abilene. 
Whenever I return here, I invariably sense in 
these surroundings an atmosphere of simplicity 
and peace. Tliis is not because Abilene is any less 
involved in the turbulent affairs of our interde- 
pendent world than are all other places my duties 
take me. Eather it is because each homecoming 
causes my mind to go back nostalgically to the 
conditions I knew as a boy. We did not then know 
the term "world tension"; life was peaceful, 
serene, and happy ! 

It was here that my parents spent most of their 
lives and my brothers and I grew to adulthood. 
The years of our youth preceded the exacting 
interdependence of the world as we know it today. 

Even more than the memory of those tranquil 
years, it was the abiding truths we learned at 
home that prompted my brothers and me some 
years ago to give our parents' home to a foimda- 
tion, organized initially' by citizens of this town. 
Later, as you know, the foundation brought into 
being the beautiful museimi we see across the 
street. Their action and ours were not taken with 
any intention of glorifying a name, but an idea — 
an idea that visits by individuals to this simple 
home and this museum might serve to remind us 
all of some of the concepts that underlie the 
American way. 

Our parents, like most American parents of the 
period, were concerned primarily with the cardi- 
nal features of their religious philosophy — beliefs 
which shaped their own lives and tlieir guid:tncc 
of their children. Love of God, fairness in human 
relations, independence and responsibility, con- 
cern for the welfare of others, and conviction that 
each free individual could through his own efforts 
achieve a full life — these were all included in an 
idea which was as much a part of our home as the 
food we ate and the clothes we wore. 

These concepts are foremost in my thinking now 
as I help break ground for this additional struc- 
ture, a library. 



' Made at ground-brealving ceremonies for the Eisen- 
hower Tresidential Library at Abilono. Knns.. on Oct. 13 ■ 
(White House press release). I 



620 



Department of State Bulletin 



studying the Past for the Future 

In this library will be placed initially most of 
the written records of my military and Presi- 
dential service. As time passes, other docvunents 
pertaining to American development in this same 
period may gradually be added. One important 
addition already committed comprises many of 
the papers of John Foster Dulles during the years 
he was Secretary of State. All of these docu- 
ments will, I hope, help to deepen understanding 
and demonstrate the application of the concepts 
that were basic to life in Abilene 50 years ago. In 
spite of the revolutionary changes that have come 
to us during the half century, I believe these 
fundamentals are as valid for today as they were 
then. 

The generosity of the American people in pro- 
viding the beautiful structure that will rise on 
this land is highly gratifying to me. No gesture 
could touch me more deeply than centering this 
meaningful enterprise in the heartland of Amer- 
ica and having it bear my name. I feel a deep 
sense of obligation to my personal friends and to 
all others who are cooperating in this enterprise, 
even though I realize that their participation is 
motivated by concern for the perpetuation of ideas 
rather than the records of any individual. 

Now we liave no illusions that a mere study by 
research workers of the letters, messages, memo- 
randa, and books deposited by many individuals 
here will miraculously endow their readers with 
wisdom. Factual information must be energized 
by the force of reason, understanding, and in- 
terpretation. To the true historian, trends are 
more important than the recorded deeds of any 
period. A study of events of the past half cen- 
tury shows that the compelling forces have been 
at work, causing trends which will cari-y into 
decades ahead with persistent momentum. 

We need not dwell on the disappearance of 
physical earthbound frontiers and the opening of 
frontiers of outer space; or on the shattering of 
blissful self-sufficiency and the growth of exact- 
ing interdependence; or on the development of 
power so awesome that nations now have no logi- 
cal alternative to replace coercion with honest 
negotiation and cooperation. These and other 
great changes are obvious, but whether they will 
lead us to disaster or to an era of hope and ac- 
complishment will depend on the degree of un- 



derstanding and wisdom we apply in solving a 
vast array of problems. 

Because upon our powerful Nation the mantle 
of free-world leadership has fallen, our respon- 
sibility in the search for solutions is inescapable. 
And, since in our country the basic social power 
is in the hands of all the people, each citizen bears 
directly a part of the responsibility for right ac- 
tion. Each of you here today must help make 
the fateful decisions of the future. Study of the 
past and the present will help to assure that these 
decisions are made wisely. 

Answering the Questions of a Changing World 

Thuik for a moment of the type of decision you 
will be forced to make in the light of just one 
obvious trend in the world scene. 

Wlien you of my age were youngsters, William 
Allen White was disturbed by the fact that Kan- 
sas was losing population. What would he say 
today about the rapid growth of Kansas and the 
swelling population of the Nation ? Wliat would 
be his reaction to present estimates that, while 
our country's population is increasing to 275 mil- 
lion in the next 30 years, the world's population 
will be nearly 5 billion people ? 

Many peoples of the world, once dommated and 
submissive, are now and will continue to be in- 
volved in a great ferment, explosive in its poten- 
tial. Everywhere knowledge and ideas, spread by 
modern communications, are routing centuries of 
ignorance and superstition. Peoples now know 
that poverty and suppression are neither universal 
nor are they inevitable. 

Increasingly and insistently they are demand- 
ing the elimination of the human indignities of 
starvation, ill-health, and peonage. They want 
independence, individual freedom, and responsible 
government. These increasingly numerous peo- 
ples of tomorrow's world will multiply those 
wants, and they will have at their disposal both 
more constructive and more destructive capacity 
than the world has known before. 

Now how do you believe tliis capacity will be 
used? "Wliat decisions will you make in this 
regard ? 

These are sobering questions. They deserve 
your most earnest consideration. For if the grow- 
ing power of free men is wisely and skillfully ap- 



Novemfaer 2, 1959 



621 



plied toward the common aspirations of human- 
ity, then a world of peace and plenty becomes a 
high probability. But if power is used recklessly, 
or is employed in the pursuit of false, selfish 
goals, then civilization will risk its own 
destruction. 

You know that the free nations of the world 
have the capacity and can develop the will to 
overcome together the powerful, perplexing forces 
which for thousands of years have yielded hate, 
distrust, poverty. Humanity's upward climb in- 
volves complex economic, educational, and politi- 
cal problems, all of which ciy for wisdom as we 
seek solutions, as we search for world under- 
standing. 

I cite one homely example. 

A common miracle is the telephone. You can 
speak into it, and with the speed of light your 
words will be carried around the world. Yet even 
this technological triumph encounters serious im- 
pediments to true, free commimication among 
populations. Most people in the world do not 
have access to a telephone. This is an economic 
problem. Among those who do, you would not be 
able to understand many because of language bar- 
riers — an educational problem. And even if 
these difficulties were surmounted, almost a third 
of the world's peoples would be forbidden to talk 
with you — a political problem. 

Achieving Progress Through Cooperation 

Obviously a program for peaceful progress 
calls for intelligent economic, educational, and 
political cooperation : economic cooperation which 
promises that peoples everywhere may, by con- 
certed effort, conquer hunger and disease and lift 
their levels of living; educational cooperation to 
develop that genuine human understanding on 
which all other cooperative activity must be 
based ; and pol itical cooperation not only to settle 
disputes which continuously arise in an imperfect 
world but also to build the social structures that 
encourage man in his striving for a better life. 

Now, any reasonable pei-son will recognize that 
no one nation, even with the legendary strength of 
an Atlas, could long support the world on its 
shoulders. Each nation will progress only if its 
own people and leaders recognize that the major 
responsibility for improvement is theirs. Even if 
every other nation were as generous as the United 



States has been in recent years, this would still 
be so. 

But this does not imply that we or any other 
fortunate people may be indifferent to the welfare 
of others. "We cannot today live, either in domes- 
tic or international life, with the long-obsolete 
picture of the factoiy owner living on a hilltop in 
isolated riches and splendor, wholly indifferent to 
the aspirations and just demands of the oppressed 
multitudes in the plains below. 

Clearly one objective of American foreign pol- 
icy is and must be to help build a world economy 
in which each nation finds it possible to earn its 
own keep and to pay its own way, and do so in a 
manner which brings meaning and fulfillment to 
the lives of its citizens. Such a policy is crucial 
to our own prosperity and security ; it is vital to 
the cause of a just and lasting peace. 

I believe, and I trust you believe, that every free 
nation should have this policy. I fui-ther believe, 
and hope you agi-ee, that the free nations of the 
world, motivated by both humanitarianism and 
self-interest, should cooperate voluntarily in a 
long-range program aimed at helping the pres- 
ently less privileged peoples work step by step 
toward a better life. Every nation should con- 
tribute to the common enterprise in whatever way 
it can. No nation should be deemed incapable of 
contributing in some fashion to the worldwide 
goal. 

The ingredients of this assistance must be tech- 
nical services, private and public loans, depend- 
able, mutually helpful trade relationships, grants 
in emergency situations, security help in transi- 
tion years, and, above all, continuing efforts to 
build true understanding among nations and 
peoples, without which all else will fail. 

Foreign capital helped our own country make 
spectacular progress during the first three quarters 
of the 19th century— capital which over a 40-year 
period we repaid with interest. So too can private 
and public capital, under the right conditions, now 
assist the less developed nations make sound 
progress toward the achievement of their goals. 
Those "right conditions'' must include both an 
honorable and responsible attitude within the na- 
tions needing the capital and intelligent trade 
relations among all free nations. 

No other aspiration dominates my own being 
so much as this : that the nations of Ii^ast and West 



622 



Department of Slate Bulletin 



will find dRpcndablo, self-guaranteeing methods to 
reduce the vast and essentially wasteful ex- 
penditures for armaments, so that part of the 
savings may be used in a comprehensive and 
effective effort for world improvement. 

As the less developed nations succeed in estab- 
lishing viable economies and raising their living 
standards, our own economy will soar to new 
heights and our technology will be challenged as 
never before. Burdensome surpluses — even those 
of wheat — will disappear. Indeed, the world may 
then be threatened with very real deficits — of food, 
energy, minerals. Enlarged demand throughout 
the world will have to be met by new methods and 
more etTective use of resources evei-y where. 

The world must learn to work together — or 
finally it will not work at all. 

This is not a problem for the distant future. 
Within the lifetime of many of you here today, 
the global population will be 5 billion. You must 
now help determine how such a vast humanity 
may, in freedom, achieve stupendous increases in 
economic output and increase the sum of human 
happiness on tliis earth. 

Allegiance to the Free-World Community 

The task ahead is not for the fainthearted. 

But does anyone of central Kansas need to be 
told that our parents and grandparents who first 
worked this black soil were not fainthearted? 
They had faith — faith in the religious concepts 
that dominated their beings, faith in the virtue 
and success of their own labor, faith in their 
neighbors and in the inexhaustible potential of 
free men. 

If they were here today they would, I'm sure, 
wonder whether we possess for our time, as they 
did for theirs, a comprehension of the concepts 
and basic principles which, universally applied, 
can lead mankind toward a world community of 
free nations, characterized by peace and justice. 



Our forefathers who pioneered this land were 
concerned initially with individual family welfare. 
Soon, however, they developed allegiance to larger 
communities — the State and Nation — and in doing 
so they did not diminish their devotion to family 
or local community; indeed, they strengthened 
it. If tliey saw the world as it is today, tliey 
would be the fii'st to realize that peoples every- 
where must now achieve an allegiance to the wider, 
free-world community, and doing so they will 
thereby strengthen — make more meaningful — 
their devotion to family, to State, and Nation. 

When this library is filled with documents and 
scholars come here to probe into some of the facts 
of the past half century, I hope that they, as we 
today, are concerned primarily with the ideals, 
principles, and ti-ends that provide guides to a 
free, rich, peaceful future, in which all peoples 
can achieve ever-rising levels of human well-being. 

Those who have so generously made possible 
the construction of this library do not seek reward 
or acclaim. Yet I profoundly believe that they 
will feel deep gratification in the knowledge that 
thus they may have helped in some small measure 
to assure the Nation's eternal adherence to these 
simple ideals and principles as free men shape 
historic trends toward noble goals. 

May God grant that this may be so. 

Thank you very much. 



Letters of Credence 

Argentine Republic 

The newly appointed Ambassador of the Argen- 
tine Republic, Emilio Donato del Carril, pre- 
sented his credentials to President Eisenhower 
on October 15. For texts of the Ambassador's re- 
marks and the President's reply, see Department 
of State press release 724 dated October 15. 



November 2, J 959 



623 



Presidents of Mexico and United States Reaffirm Ties of Friendship 



Adolfo Lopez Mateos, President of the United 
Mexican States^ returning the visit of President 
Eisenhower to Acapulco in February 1959, made 
a state visit to the United States October 9-15, 
1959. After 3 days in Washington, President 
Lopez Mateos and his party traveled to Chicago, 
New York, Ottawa and Niagara Falls, Canada, 
and the LB J Ranch near Stonewall, Texas, where 
they were guests of Sermtor Lyndon Johnson. 
Folloioing are texts of the exchange of greetings 
at the Washington National Airport on October 
9 and a joint statement released on October 13, 
together with a list of the members of the official 
party. 



EXCHANGE OF GREETINGS 

White House press release dated October 9 

President Eisenhower 

Mr. President, the people of the United States 
extend a very warm welcome to you, to Mrs. 
Lopez Mateos, and to your lovely daughter. We 
feel that we are more than merely your geo- 
graphical neighbor. We are proud to call you our 
friend. And we devoutly hope that you feel in 
that same fashion toward us. 

We have very much in common — more than a 
common boundary of 1,600 miles in length; we 
live by the same values; we believe in human 
dignity and human rights and human freedom. 
We have the same objectives in our countries, of 
protecting and furthering the interests of each 
citizen, the humble and the great. 

Through the yeai-s there lias developed between 
our two countries a greater undeistanding, a 
greater affection, and for these tilings we are ex- 
ceedingly grateful. Moreover, one of our great 
objectives is that in search for peace. We are 
determined between ourselves to handle our prob- 

624 



lems, that inevitably occur between friends and 
neighbors, on the basis of fairness and justice to 
both sides. 

Now, for you today, I hope as you start this visit 
you will experience, every minute you are here, 
the same warm feelings of cordial friendsliip on 
every side that I experienced when I was your 
guest in Acapulco ^- — one of the brightest and most 
cherished memories that I have in my entire tour 
in this Office — they are those days that I spent 
with you. And if the American people can make 
you feel that same deep satisfaction that conies 
from being surrounded by cordial friendship, I 
assure you, sir, they will try — there is no question 
about that. 

So again, bienvenido. [Welcome.] 

President Lopez Mateos 

Translation 

Mr. President, distinguished friends: Your 
Excellency's cordial welcome to the beautiful 
Capital of the United States of America and the 
friendly words which with characteristic warmth 
you have addressed to Mexico, its people and its 
President, have moved me as a Mexican. As such, 
and Chief of State, I thank you for this kind 
reception. 

Once again Your Excellency has shown your 
friendship toward my country. On your visits 
to Mexico you have had occasion to come into con- 
tact with the Mexican people. You thereby be- 
came better acquainted with the history of my 
country, its character and aspirations. You laiow, 
consequently, that the Mexican, through pride in 
his heritage and courage in the defense of his 
country's sovereignty — to him not merely a legal 
concept but an integral part of his historical 
makeup — has developed a mental attitude favor- 
ably disposed toward peaceful relations with tlie 



' Bulletin of Mar. 9, 1059, p. 331. 

Department of ^iate Bulletin 



other peoples of the earth. Especially is this true 
with the United States of America, for whom 
Mexico in this new era of mutual respect and of 
increasing reciprocal understanding has feelmgs 
of friendship in which we can justly take pride. 
It is a friendship untarnished, pure in its simplic- 
ity, free of the bitterness and misunderstandings 
of the past, free of burdening commitments in the 
present, and free to determine a future which 
shall be rich in joint accomplishments, all within 
the dignity and respect which enhance every truly 
friendly relationship. 

Because of this existing friendship between 
Mexico and the United States of America, and 
because it is a living, tangible fact, you were able 
during your trips to my country — and especially 
in the course of your visit to Acapulco — to per- 
ceive that the people of Mexico appreciate and 
admire the great people of the United Statxjs, 
whose immense creative spirit and high moral 
virtues they fully recognize. 

Thousands of Mexicans live in the United 
States. Two or three hundred thousand come 
every year to work temporarily in your agricul- 
ture. On my arrival to the United States I salute 
them witli affection. Thousands of your citizens 
also live, study, work, and travel in Mexico. Both 
of these groups of Mexicans and Americans, 
through their cooperation, their efforts and labors, 
constitute living testimony that relations between 
our countries are an example of genuine good- 
neighborliness. 

You know, Mr. President, and I know that be- 
tween us there are no secrets. This is because the 
friendship between Mexico and the United States 
is crystal clear. No problem exists or can exist 
between our Governments capable of weakening 
or jeopardizing this friendship. Our two coun- 
tries surged into independence and live in free- 
dom, inspired by identical ideals of justice and 
liberty. 

We have problems, undoubtedly. No two coun- 
tries as large as ours, with a common boundary of 
3,000 kilometers in length, and with so many and 
so diverse contacts, can fail to have problems. 
Some of these are intrinsically difficult, and others 
are made difficult by the conflicting interests in- 
volved. All of these problems are entrusted to 
diplomatic channels and eventually, though some- 
times after brief periods of stagnation, follow the 
course toward a solution in a normal manner. 



I am ready to talk about these problems and 
about all matters which our advisers may consider 
appropriate to bring to our attention. I firmly 
believe tliat m the conversations between the 
Chiefs of State of the United States and Mexico, 
that is, in talks between friends, the most impor- 
tant subject always will be : the United States and 
Mexico, our present-day relationships, our capac- 
ity for growth, and our place in a world with 
respect to which the necessary economic and social 
changes should be foreseen. 

Those who govern are in essence nothing more 
than the lookouts who during the dawn of Greek 
civilization manned the watchtowers of their 
primitive cities. From a height they were able to 
encompass a larger portion of the surrounding 
territory. Even if other factors were not present, 
this position by itself endows the meetings be- 
tween Chiefs of State, as you have so successfully 
maintained, with great possibilities for fruitful 
progress. 

It is particularly gratifying for me to assure 
Your Excellency that I return your visit in 
Acapulco with the greatest satisfaction. In fact, 
through me the whole people of Mexico are re- 
turning tlie visit of the man they admire, as the 
soldier of World War II, who never knew defeat, 
and as the wise statesman who with clarity of 
vision has dedicated his best efforts to strengthen- 
ing the bonds between our countries. They 
recognize you as their friend. 

Being at the service of the people of Mexico, 
I ask Your Excellency to accept the expression of 
their friendship toward the people of the United 
States and their best wishes for the prosperity and 
happiness of your country and its citizens. 



JOINT STATEMENT 

White House press release dated October 12 

During the visit of President Adolfo Lopez 
Mateos to Washington, President Dwight 1). 
Eisenhower and the President of Mexico renewed 
and strengthened the friendship which began at 
their meeting at Acapulco, Mexico, last February. 
Informally and without an agenda they exchanged 
views on general subjects of mutual interest to 
Mexico and the United States and on subjects of 
hemispheric and world concern in that atmosphere 



November 2, J 959 



625 



of cordiality and frankness which characterizes 
true friendship. 

With regard to economic problems of much 
interest to public opinion in Mexico the two 
Presidents noted with satisfaction the recent 
strengthening of the Mexican economy. Special 
mention was made of the fact that although 
Mexico has had at its disposal since January of 
the current year a balance of payments credit from 
the Export-Import Bank in the amount of 100 
million dollars, it has proved unnecessary to make 
use of more than a small part of this credit. 

The Pi'esidents were also heartened by the 
progress made towards resolving important com- 
modity problems and consequent improvements 
in world market conditions with respect to basic 
commodities produced in Mexico and the United 
States, including the strengthening of cotton 
prices, the signature of the coffee agreement and 
the improved outlook for a better balance of 
supply and demand in world markets for lead and 
zinc. 

The Presidents agreed that maintenance of tlie 
productive capacity of the Mexican mining in- 
dustry is essential to Mexico's economic progress 
and to the security of the United States. Con- 
sequently, the Governments of both countries will 
continue to consult each otlier and the other lead 
and zinc producing countries with regard to the 
measures necessary to achieve these objectives. 

The problems of the United States and Mexico 
regarding the exploitation and conservation of the 
economic resources of the seas were explored by 
the two Presidents, and they agreed that efforts 
should be made to provide for the orderly use of 
these resources. 

It was agreed that the IMexican and American 
scientific communities should work more closely 
together. 

The two Presidents also expressed gratification 
at the cooperation whicli has developed in seeking 
solutions to common health problems and they 
will instruct the health autliorities of the two 
countries to broaden the area of joint action to tlie 
gi'eatest possible extent. The excellent progress 
made in the eradication of malaria in Mexico was 
noted, and the hope was expressed that through 
international cooperation similar success could be 
achieved in the other countries of the hemisphere 
where malaria is still a significant problem. 

At Camp David, the two Presidents chose the 



name Amistad Dam to designate the dam pro- 
posed to be constructed near Del Rio, Texas, and 
Villa Acuna, Coahuila, for flood control, con- 
servation and storage of the waters of the Rio 
Grande, and possibly power generation. 

Like the Acapulco meeting, the Washington 
visit demonstrated the firm resolve of the two 
Chiefs of State and of the two Governments io 
continue to examine their problems with under- 
standing of and respect for each other's points of 
view in efforts to find solutions that are mutually 
beneficial to the peoples of Mexico and the United 
States. 

The two Presidents are convinced of the value 
of continuing a personal relationship between rhe 
Chiefs of State of Mexico and the United States, 
not merely to provide an opportunity for cordial 
and frank exchanges of views on common prob- 
lems, but more importantly, to sponsor tlie con- 
tinued growth of friendship between the two 
countries and their Governments. 

Lastly, the two Presidents expressed their 
belief that their personal friendship and the 
growing cooperation between their two countries 
in all fields of human endeavor will be an example 
to the world of how two nations can live inde- 
pendently side by side in friendship, cooperative 
effort and mutual understanding. 



MEMBERS OF OFFICIAL PARTY 

The Department of State announced on October 
7 (press release 705) that the following persons 
would be accompanying President Lopez Mateos 
as membei'S of the official party : 

Mrs. L6pez Mateos 

Miss Eva Lopez Mateos, daughter of President and Mrs. 
Lc'ipez Mateos 

Manuel Tello, Minister of Foreign Relations of Mexico 

Mrs. Tello 

Autnuio Carrillo Flores, Ambassador of Mexico 

Mrs. Antonio Carrillo Flores 

Nabor Carrillo Flores, Rector of the National University 
of Mexico 

Mrs. Nabor Carrillo Flores 

Eugenio Mendoz Docurro, Director General of the Na- 
tional Poljtechnical Institute 

Mrs. Mendez Docurro 

Federico Mariscal, Chief of Protocol of Mexico 

Justo Sierra, special assistant to President L6pez Mateos 

Mrs. Sierra 

Krig. Gen. Jo.s(5 Gomez Huerta, Chief of the President's 
Military Household 



626 



Department of Stale Bulletin 



Humbcrto Romero, private secretary to President L6pez 

Ma tecs 
Mrs. Romero 
Dr. Xavier de la Riva, the President's personal physician 

Wiley T. Buchanan, Jr., Chief of Protocol of the United 

States 
Mrs. Buchanan 
Robert C. Hill, American Ambassador to Mexico 



Mrs. Hill 

Brig. Gen. Tom R. Stoughton, USA, American aide to 
President Lfipez Mateos (Washington only) 

Robert F. Corrigan, Deputy Chief of Protocol, Depart- 
ment of State 

David J. Waters, press officer. Department of State 

Jerald Clemans, press officer, Department of State 

Arthur Diggle, USIS press officer 



The Cold War and the Khrushchev Visit 



by Andrew H. Berding 

Assistant Secretmn/ for Public Affairs ' 



There has been an improvement in the inter- 
national atmosphere, following upon Chairman 
Khrushchev's visit to the United States.- This is 
a welcome development. Surely the whole world 
wishes to see the cold war end. Surely everyone 
wants to channel productive efforts into peaceful 
endeavors rather than armament, especially in 
view of the present-day potential for mutual 
destruction. 

AVe Americans are justifiably proud of the kind 
of life we have in our country. Our free institu- 
tions have produced the greatest material good for 
the greatest number ever known in history. And 
they have assured the dignity and rights of the 
individual in a society which is probably as nearly 
classless as the world has ever known. We do not 
want the fruits of our still-expanding economy 
largely erased in catastrophic modern war. In ad- 
dition, we have a deep abhorrence of the settlement 
of issues by force, since recourse to force is by its 
very nature a denial of the democratic processes in 
which we believe so strongly. 

There is reason to conclude that the Soviet Gov- 
ernment as well as the Soviet people now are aware 
that they have a practical, vested interest in pre- 
servation of the peace. Their own material ac- 
complishments in recent years have been consider- 
able. "We believe that this progress in material 
things has been achieved at a cost in other, and 



' Address made before the National Association of Broad- 
casters at Washington, D.C., on Oct. 16 (press release 727). 
" Bulletin of Oct. 12, 1959, p. 499. 



higher, values which we deplore. Nevertheless we 
may assume that the Soviet people also do not want 
to see their achievements wiped out in modern war- 
fare. We share the hopes of the Soviet people 
that their economy may now turn more to the satis- 
faction of consumer needs. We have ever greater 
evidence that their demand for more consumer 
goods is becoming increasingly insistent. For our 
part we will continue to work for disarmament 
with adequate controls, so that the entire world 
community may more fully turn its energies to- 
ward conquering its true enemies : poverty, disease, 
ignorance, and intolerance. 

Ending the Cold War 

During Mr. Khrushchev's visit to the United 
States and since, we have heard a great deal about 
the need to end the cold war. Soviet spokesmen, 
and first and foremost Mr. Khrushchev himself, 
say that, in order to avoid a "hot" war, with its 
terrible consequences, we must end tlie cold war 
and establish our relations with the Soviet Union 
on a basis of international friendship, mutual re- 
spect, and nonintervention in each other's domestic 
affairs. 

This sounds very reasonable, and all of us can 
wholeheartedly subscribe to this goal. But inter- 
national relations, like all human endeavors, con- 
sist of something more than words. Behind the 
words lie actions. And it is only by contemplating 
these actions that we can reach an understanding 
of what the words mean. 



November 2, 1959 



627 



The words "cold war" evoke important aspects 
of the history of the postwar period. In seeking 
to understand these words, we must examine that 
history. 

Following World War II the Western Allies 
rapidly disbanded their armed forces. However, 
Soviet occupation troops and puppet political au- 
thorities began to take actions in Eastern Europe 
which directly contradicted the proclaimed com- 
mon Allied intention of liberating the peoples 
enslaved by Hitler and permitting them to de- 
termine for themselves under what political, 
economic, and social systems they would live. 

Stalin in effect declared the cold war in his 
speech of February 9, 1946. He demanded "a 
mighty new upsurge" of Soviet heavy industrial 
production so that the Soviet Union would "be 
guaranteed against all possible accidents." The 
rest of the world was disarming, but the Soviet 
leadership looked toward new military contingen- 
cies. 

We all know how the drama unfolded. The en- 
gulfment of east Europe was accompanied by 
threats to the security of Iran, Turkey, and Greece. 
It had hardly been completed when the Soviet Gov- 
ernment posed its first threat to West Berlin. 
Then came Korea, conceived by the Communists as 
a major test of the free world's will to defend itself. 

Now we are asked to forget the cold war. In 
bidding us to do this, the Soviet leadership by im- 
plication blandly offers to agree that they as well 
as we have made mistakes. But, they say, let the 
dead past bury its dead. Let us wipe the slate 
clean and start afresh. And let those who per- 
sist in remembering the lessons of history and 
applying them to our relations today be the 
Gadarene swine whose drowning will seal our 
bargain. 

There is something beguiling in this approach. 
But it is childish to expect that the obscuring of 
the past in a polite silence can nurture anything 
more than an eventual worsening of the relations 
between our world and that of the Communists. 

The essence of the cold war lies in the threat to 
the security, the welfare, the preservation and ex- 
tension of the freedom to choose, of all who live 
outside the closed system of communism. That 
threat stems from the irrational and unattainable 
dream of a world in thrall to those Communists 
who profess to carry the key to tlie future. 

Ending the cold war is more than a matter of 



polite agreement to pass over in silence the grave 
issues that divide the world. It requires the re- 
moval of the causes of the cold war. It requires 
the just and equitable solution of the legacy of in- 
justice which the past 14 years have produced. It 
requires the assurance that the future will not un- 
fold under the menace of an arbitrary power that 
can be wielded by a few over the many. 

Chairman Khrushchev calls for an end to the 
cold war. It lies within his power to prove that 
he means what he says. His visit here, and par- 
ticularly its successful conclusion in the talks with 
the President at Camp David, have created the 
conditions in which he can demonstrate the sin- 
cerity of his intentions. If he does that, he will 
certainly find us ready cordially to meet him half- 
way on any issue. 

Meaning of Peaceful Coexistence 

One of the phrases most often used by Chair- 
man Khrushchev in the United States was "peace- 
ful coexistence." He sought during his trip, as 
often in the past, to prove that this is the only 
solution for relations between our two countries. 

Peaceful coexistence has a seductive flavor. 
Many people who have not taken the trouble to 
look into it have embraced it. It is therefore 
very important for us to know what it means. 

In the first place, peaceful coexistence must not 
be equated witli peace as we understand it. 
Rather it is a prolonged armistice while the politi- 
cal and ideological struggle, as well as the eco- 
nomic competition, goes on. 

Mr. Khrushchev has again made this very plain 
in just the last few days. In a speech released the 
day before yesterday [October 14] but made last 
Saturday [October 10] at Novosibirsk, Siberia, he 
said: 

Peaceful coexistence means continuation of the strug- 
gle between the two social systems — but by peaceful 
means, without war, without interference by one state in 
the internal affairs of another. We consider it to be an 
economic, political, and ideological struggle, but not a 
military one. 

Since Chairman Khrushchev predicts the tri- 
umph of communism over capitalism, it is obvious 
that peaceful coexistence means only a truce. The 
concept of peaceful coexistence also implies that, 
althougli the Soviet Union puts aside, at least for 
the time being, the traditional thesis of war as 
an instrument of foreign policy, Moscow will coii- 



628 



Department of State Bulletin 



duct the bloodless struggle far more subtly but, 
even so, relentlessly. 

Peaceful coexistence might endure for a long 
time if the tree world remains strong and united, 
militarily, technologically, economically, and po- 
litically. If the free-world allies were to become 
weak or disunited, peaceful coexistence would 
probably become less peaceful in proportion to 
the degree of our weakness or disunity. Until we 
have concrete reason to believe otherwise, we 
must realistically conclude that peaceful coexist- 
ence is a Soviet device to stay out of war, or to 
postpone conflict, while the international Commu- 
nist movement continues its manifest and mani- 
fold efforts to bring about the worldwide triumph 
of commimism over capitalism. 

People are entitled to something better than 
peaceful coexistence. The world should not be 
divided into blocs, even thougli they do not shoot 
at each other. Nations should be independent, 
and nations, rather than blocs, should be at peace 
one with another. 

Moreover, peoples live; they do not simply co- 
exist. In the same way, nations should live and 
cooperate for the increasing welfare of their peo- 
ples. They should not simply coexist, albeit in 
peace. 

Accepting peaceful coexistence means accepting 
the status quo whereby the Soviet Union domi- 
nates a Communist bloc of nations. We have 
given the Soviet Union solemn assurances that we 
have no desire to turn these nations against Mos- 
cow, that we do not seek military alliances with 
them, that we do not wish to impose the Ameri- 
can way of life upon them, that we do not wish a 
return to their prewar processes of government. 
But we do desire for their peoples true freedom, 
genuine national independence, and ability to es- 
tablish whatever form of government and eco- 
nomic and social institutions they wish. We can- 
not accept a status quo which makes this impos- 
sible. 

Soviet and Chinese Communist Relations 

After his visit to the United States Chairman 
Klirushchev went to Peiping. We have been en- 
couraged by statements he made in Peiping coun- 
seling against "testing the capitalist system by 
force" or "imposing socialism by force of arms." 

We are troubled, however, by the seeming lack 
of receptivity on the part of the Chinese Conunu- 

November 2, J 959 

628108—59 3 



nist leaders. There has not yet been any signifi- 
cant promise of a relaxation of tensions in the Far 
East. Chinese Communist pronouncements at the 
celebration of their 10th anniversary of coming 
to power do not augur well, following on recent 
developments in Tibet, in Laos, and on the Indian 
border. An order-of-the-day by Defense Minister 
Lin Piao accused the United States of "aggressive 
schemes" and reiterated Chinese Communist de- 
termination to take over Taiwan, by force if neces- 
sary. Furthermore, Mr. Khrushchev's counsels 
were omitted by the Chinese Communist radio. 

We would seem to be faced with a situation 
subject to two possible interpretations: Either 
Peiping at this time does not share Moscow's pro- 
fessed desire for a relaxation of tensions, or Pei- 
ping does not regard such professions as genuine. 

Close policy association between Communist 
China and the U.S.S.R. has often been affirmed by 
both sides. In November 1957 Mao Tse-tung 
said in Moscow during the celebration of the 40th 
anniversary of the October Revolution, "The so- 
cialist camp must have a leader, and that leader is 
the Soviet Union." More recently, Chinese Com- 
munist Vice Chairman Soong Ching-ling de- 
clared : "The Chmese People's Republic is a com- 
ponent part of the socialist camp led by the Soviet 
Union." 

It is significant that Mr. Khrushchev, in coun- 
seling at Peiping against imposing socialism by 
force, added that "the people would not under- 
stand." Certainly no people would understand 
such use of force, including, I believe, the vast 
majority of the regimented Chinese people them- 
selves. The disturbing factor, however, is that 
the Chinese Communist leaders have long dis- 
played contempt for world opinion. Their ex- 
pansionist aims, backed by fanatical policies, con- 
stitute perhaps the greatest single threat to peace 
in the world today. 

The close ideological association of the Soviets 
and the Chinese Commimists has in the past meant 
mutual propaganda support in times of trouble. 
Tlie Chinese Communists indicated strong back- 
ing for the Soviet action in Hungai-y and have ex- 
coriated Yugoslavia for its policy of independ- 
ence. The Soviets have usually reciprocated in 
connection with Chinese Communist adventures. 
True, this has not been the case concerning the 
recent Indian border troubles, and there may be 
other examples of recent Chinese Communist ex- 



629 



cesses which have troubled Moscow. Aside from 
ideological ties and objectives, Communist China 
is dependent on Soviet economic and military aid. 
And there are also the values to the Soviet Union 
and to international communism of having the 
partnership of the world's most populous nation. 
Thus it would be foolish to infer from these pos- 
sible examples of differences that a serious rift is 
in imminent prospect. 

There is an important corollary to the fact of 
this senior- junior type of bond. Recently this has 
been descriljed as "the doctrine of partial respon- 
sibility," meaning that, since the Soviet Union as- 
sumes the leadership of the Communist bloc, it 
must assmne a degree of responsibility for 
actions of bloc members. There is notliing 
really new about this. We have long spoken 
of the close senior-junior aspect of the Sino-Soviet 
relationship, and a good measure of Soviet re- 
sponsibility for Chinese Communist conduct has 
all along been implicit. The recent Soviet inter- 
est in a detente with the West, concomitant with 
a multiplicity of trouble spots in the East, has 
merely highlighted the implications of this major 
Communist partnership. We believe that, if the 
Soviet Union is sincere in wanting to safeguard 
the peace, it has the leverage, through the oft- 
claimed monolithic nature of the Communist 
camp, to insui-e a measure of responsibility on the 
part of the Chinese Communists. In pointing out 
this obvious fact we are not engaged in any mis- 
chiefmaking. The issues at stake are too serious 
for that. We simply believe that to remain silent 
in the face of the present anomaly presented by 
the Communist world would be to encourage du- 
plicitous conduct affecting the all-important is- 
sue of war and peace. 

Problems of Arranging Press Coverage for Visit 

I believe that one of the most beneficial results 
of Mr. Khrushchev's visit to this country was the 
unparalleled opportunity it afforded to the Amer- 
ican people to see, hear, and judge this remarkable 
personality and thereby to evaluate at first hand 
his significance for themselves and their country. 
The credit for this belongs to many of you who are 
here today and to the organizations you repre- 
sent. I cannot conceive of any more graphic il- 



lustration of the unique effectiveness and value of 
television and radio in disseminating knowledge 
vital to us all than the coverage you gave to the 
journey of Mr. Khrushchev and his party in the 
United States. 

The Khrushchev visit confronted us with a 
problem of special interest to you and to me. I 
refer to the press arrangements for the visit. This 
faced the Wliite House and the Department of 
State with a gigantic task. Its magnitude can 
be seen in two sets of figures. The first is that 
the Department issued press credentials for the 
visit to no fewer than 2,500 news and photo rep- 
resentatives of the American and foreign press, 
radio, TV, newsreels, and magazines, plus 41 
Soviet newsmen. Of this number, about 750 were 
taken up by the radio and TV networks. The 
second figure is that we had to make arrangements 
to transport nearly 300 news and photo repre- 
sentatives throughout the trip — at their own ex- 
pense — plus News Division officers and communi- 
cations people. That meant three, and later four, 
special planes and seven, and later nine, special 
railroad cars. It meant buses and pool cars, hotel 
reservations and baggage handling, photog- 
raphers' stands and pressrooms. Jim Hagerty 
[Press Secretary to President Eisenhower] and 
I had to plunge into this problem the moment we 
got back from the President's trip to Europe,' to 
say nothing of before and during the trip, and 
our News Division officers and White House of- 
ficers were working night and day for many days 
before the Klirushchev visit and then, of course, 
during the visit. 

Our problem was immensely complicated by the 
fact that the final itinerary was not firmed up 
until the last possible moment. This was because, 
when the President invited Chairman Klirushchev 
to come to the United States, he made it clear 
that the Soviet visitor was free to go wherever 
he wished and to see anything he liked. The de- 
cisions therefore were mostly made by the So- 
viets. Our problem was further increased by last- 
minute changes in the itinerary, even after the 
trip had gotten under way. 

I have no doubt that some correspondents felt 
that the arrangements we made were insufficient. 



" For background, see ihid., Sept. 28, 1959, p. 435. 



630 



Department of State Bulletin 



althougli we have subsequently received a number 
of letters sincerely congratulating us for the fa- 
cilities extended. 

The question here is one the Government by 
itself cannot solve. The question is that of weight 
of numbers, expressed by the fact that a minimum 
of 500 newsmen were on hand at all times for 
direct coverage. It can only be solved, if at all, 
by agreement among the media representatives. 

It is axiomatic that one newsman in a group 
of 100 is going to have a better chance to cover a 
trip of this kind than if he is one of a group of 
300, and much better than if he is one of a group 
of 500. 

Recently the Washington Post said in an 
editorial : 

We may hope that the State Department learned a few 
things about arrangements for such visits, even though 
the Soviet Embassy was responsible for many of the 
difficulties. We also may hope that the American press, 
television and radio representatives and their foreign col- 
leagues also learned. The admittedly great interest in 
the visit did not justify a three-ring circus, with re- 
porters and cameramen stumbling over each other to get 
a glimpse of the guest. Surely some sort of self-restraint 
in advance is desirable for future visits. 

I think this is a healthy recognition of a serious 
situation and points the way to a possible solution. 

Major international events now attract an over- 
whelming number of newsmen. I was a member 
of the U.S. delegation to the summit conference 
at Geneva in 1955, at which about 1,500 newsmen 
were accredited. I was likewise a delegation 
member at the heads-of-government NATO con- 
ference at Paris in 1957, at which about 1,700 
newsmen were accredited. And finally I was on 
the U.S. delegation to the Foreign Ministers Con- 
ference in Geneva this year, at which about 1,400 
newsmen were accredited. 

Perhaps the time has come for serious thinking 
on the part of the news media as to whether by 
sheer weight of numbers it is impeding its own 
efforts to gather news. Yesterday in New Orleans 
the convention of radio and television news direc- 
tors conducted a panel discussion entitled : "Is the 
News Media Threatening Its Own Freedom of 
Access?" The discussion related to the Khru- 
shchev visit. The title is as good as any to point 
up the problem. 



Continuance of Personal High-Level Diplomacy 

All signs point to the continuance of personal 
high-level diplomacy for some time to come. A 
summit conference in the reasonably near future 
is a distinct possibility. A return visit of Presi- 
dent Eisenhower to Moscow is planned for late 
next spring. Meantime there will be numerous 
visits of other chiefs of state and heads of govern- 
ment to this and other countries. 

Personal diplomacy at top level offers distinct 
advantages, provided it occurs in accordance with 
certain criteria. 

The first of these is that a meeting of heads 
of government, whether bilateral or multilateral, 
must not occur under the prospect of a Soviet 
threat or following a Soviet threat or as a result 
of an inimical Soviet action. Otherwise the So- 
viets could force such a meeting any time they 
wished simply by stirring up a crisis. 

The second criterion is that each such meeting 
should produce some constructive result which 
would justify the holding of a following meeting. 
No one can realistically expect a single summit 
meeting to solve all problems. We may have to 
have a series of such meetings in the years to come. 
But there should be a progression of achievement, 
with each meeting an upward step to the next 
meeting rather than proceeding on a level or a 
descent. 

We believe as much as anyone else in the value 
of personal talks at high level. But we do not 
believe so much in talking just for the sake of 
talking. It is, of course, as Winston Churchill 
is reported to have said, better to jaw-jaw than 
to war-war. But, when the heads of important 
governments meet together, the eyes of the world 
are focused upon them and peoples in all corners 
of the earth expect constructive results. If the 
talks are fruitless, the basic issues seem more in- 
soluble than before, peoples are disappointed, per- 
haps alarmed, and fear increases that war may 
ensue. 

But let no one doubt our sincere willingness to 
try the method of high-level talks. The Presi- 
dent repeatedly has said he is willing to go any- 
where at any time if thereby he could promote the 
cause of peace. The goal of peace with justice 
will always be a cardinal element of American 
foreign policy. 



November 2, 7959 



631 



U.S. Protests Soviet Actions 
Against American Attache 

Press release 731 dated October 17 

On the morning of October 16, 1959, unidenti- 
fied Soviet authorities seized Russell A. Langelle, 
attache of the Embassy of the United States of 
America at Moscow, and forcibly detained him for 
about 1 hour and 45 minutes. 

The Charge d'Affaires of the United States at 
Moscow, Edward L. Freers, delivered to the So- 
viet Ministry of Foreign Affairs on the afternoon 
of October 16 a note of protest reading as follows : 

The Embassy of the United States of America presents 
its compliments to the Ministry of Foreign Affairs of the 
Union of Soviet Socialist Republics and has the honor to 
protest the forcible seizure of Mr. Russell A. Langelle, 
Attach^ of the United States Embassy in Moscow, on the 
morning of October 16, 1959, by non-identified Soviet 
authorities. Mr. Langelle was subjected to forcible de- 
tention, to threats of violence against himself and against 
his family, to forcible search, to attempted interrogation, 
and to attempts to enlist his cooperation in intelligence 
activities against the United States. 

The following is a factual account of the incident: 

Approximately at nine o'clock on the morning of Octo- 
ber 16, Mr. Langelle alighted from a bus, No. 107, at the 
stop at Chaikovskovo Street and Vorovskovo Street. He 
was immediately surrounded by five men in civilian cloth- 
ing who seized his arms, covered his mouth, and forcibly 
dragged and carried him to a Zim automobile parked 
in a near-by alley. He was then driven to a near-by 
building on Vorovskovo Street, where the men forced him 
to leave the automobile and enter the building. 

Mr. Langelle produced his diplomatic card, protested 
the forcible seizure, and asked to be allowed to communi- 
cate with the American Embassy. The Soviet individuals 
laughed at the document and ignored Mr. Langelle's 
request. 

Mr. Langelle was then forced to remove his topcoat, 
which was searched by the men. One of the men pro- 
duced a notebook, which he said belonged to Mr. Langelle, 
but which, in fact, Mr. Langelle had never seen before. 
The man used a chemical solution on the pages of the 
notebook to develop supposedly concealed writing and 
then identified the writing as referring to Soviet state 
secrets. Thereupon he accused Mr. Langelle of engaging 
in espionage activities against the Soviet Union. 

Thereupon the men attempted to interrogate Mr. 
Langelle about his duties in the Embassy. When Mr. 
Langelle refused to enter into any conversation with them, 
they began to threaten him. They asserted that Mr. 
Langelle's diplomatic immunity had been revoked and 
that he therefore was subject to imprisonment. They 
threatened him with physical violence. They also threat- 
ened to take un.specifled action against his wife and three 
small children, who reside with him in Moscow. 

When Mr. Langelle continued to refuse to enter into 



conversation, the men then sought at length to enlist his 
cooperation in undertaking intelligence activities on be- 
half of the Soviet Union against the United States and 
promised him monetary reward. 

After approximately one hour and forty-five minutes 
of such threats and promises, the men escorted Mr. 
Langelle from the building to the same automobile. He 
was driven to Vostaniya Square, where he was permitted 
to leave the automobile. 

The Embassy strongly protests this flagrant violation of 
diplomatic immunity. It expects the Ministry to take the 
necessary measures to prevent any repetition of such an 
incident and to bring to account those responsible. 

At the time of delivery of the note, the deputy 
chief of the American Countries' Section of the 
Soviet Ministry of Foreign Affairs stated orally 
to Mr. Freers that "competent" Soviet authorities 
had informed the Ministry Mr. Langelle had used 
his stay in the U.S.S.R. to carry out intelligence 
work not compatible with his diplomatic status 
and that, in view of the impermissibility of such 
action, the Soviet Government considered Mr. 
Langelle's further stay in the U.S.S.R. un- 
desirable. 

Although Mr. Langelle is thus obliged to leave 
the Soviet Union, the U.S. Government rejects the 
Soviet accusation against him and protests these 
improper actions of the Soviet authorities. 



Soviet Composers Visit U.S. 

Press release 726 dated October 15 

As provided in the United States-Soviet ex- 
change agreement of January 27, 1958,^ a delega- 
tion of five Soviet composers and one music critic 
will visit the United States to establish contacts 
and exchange experiences in the music field. 

The Soviet delegation, headed by Dmitri Sho- 
stakovich, is expected to arrive in the United 
States on October 23. The visit, to last about 1 
month, is imder the auspices of the cultural ex- 
change progi-am of the Department of State. 

In addition to Mr. Shostakovicli the delegation 
will include Dmitri Kabalevsky, Konstantin Dan- 
kevich, Fikret Amirov, Tikhon Khrennikov, and 
Boris Yarustovsky. Dr. Yarustovsky is a music 
scholar, critic, and professor at the Moscow State 
Conservatory. In addition to being an active com- 



' For text, .see Btju-etin of Feb. 17, 1958, p. 243. 



632 



Department of Sfafe Bulletin 



poser, Mr. Khrennikov is the general secretary of 
the Union of Composers of the U.S.S.R. and pres- 
ident of the Soviet Societies of Friendsliip and 
Cultural Relations with Foreign Countries. 

The group will probably visit New York, Wash- 
ington, D.C., San Francisco, Los Angeles, Louis- 
ville, Philadelpliia, and Boston. It is expected 
that the members of the delegation will be hon- 
ored guests at several concerts at which their com- 
positions will be played. Two such concerts are 
scheduled for November 6 and 7, when the Phila- 
delphia Orchestra will present the American pre- 
miere of the cello concerto of Dmitri Shosta- 
kovich. 

A delegation of four American composers vis- 
ited the Soviet LTnion under the same agreement 
during the summer of 1958. The American group 
included Roy Harris, Ulysses Kay, Peter Mennin, 
and Roger Sessions. 

The Committee on Leaders and Specialists of 
the American Council on Education is cooperating 
with the International Educational Exchange 
Service of the Department of State in preparing 
a program for the Soviet delegation. 



Under Secretary Dillon Departs 
for GATT Meeting at Tokyo 

DEPARTMENT ANNOUNCEMENT 

The Department of State announced on October 
9 (press release 714) that Under Secretary Dillon 
would leave Washington October 13 for Japan, 
where he will represent the United States at the 
Ministerial Meeting of the 15th session of the 
Contracting Parties to the General Agreement on 
Tariffs and Trade (GATT), which convenes at 
Tokyo on October 26. 

En route Mr. Dillon will visit Okinawa, Hong 
Kong, Taipei, and Seoul to discuss matters of 
mutual interest with local officials and U.S. 
representatives. 

The Under Secretary will be accompanied by 
Mrs. Dillon, and members of his party will in- 
clude: Graham Martin, special assistant to the 
Under Secretary; John Leddy, special assistant 
to the Under Secretary; James Wilson, deputy 
special assistant for mutual security coordination ; 



and David M. Bane, director, Office of Northeast 
Asian Affairs. 



DEPARTURE STATEMENT BY MR. DILLON 

Press release 717 dated October 13 

I am looking forward to taking part in the 
Ministerial Meeting at Tokyo of the General 
Agreement on Tariffs and Trade. The GATT is 
playing an increasingly important role in inter- 
national economic growth by helping to break 
down barriers to world trade. It is my hope that 
out of our deliberations in Tokyo will come fur- 
ther fruitful steps in eliminating trade disci'imi- 
nations, which have particularly affected Ameri- 
can exports. 

It is fitting that the 15th session of the 
GATT — the first to be held away from Geneva 
in many years — should take place in Japan, a 
nation whose very lifeblood is trade and whose 
people have made truly remarkable economic prog- 
ress through trade since World War II. Wliile 
in Japan, I anticipate opportmiities to review 
with Japanese officials some of the economic and 
other aspects of the friendly relations between 
Japan and the United States. 

En route to Toyko I shall visit Okinawa, Hong 
Kong, Taipei, and Seoul to discuss matters of- 
mutual interest with Government officials and 
U.S. representatives. I welcome these visits as 
occasions to make new friendships in the Far East 
and as opportunities to learn more of the prob- 
lems common to that important area of the world. 



Prime Minister of Morocco 
Tours United States 

The Department of State annoimced on October 
14 (press release 721) that Prime Minister Mouley 
Abdullah Ibrahim of Morocco, head of the Moroc- 
can delegation to the United Nations, will call on 
President Eisenhower on October 15, lunch with 
Secretary Herter at the State Department that 
same day, and confer with other Department 
officials. 

Thereafter, the Prime Minister will leave Wash- 
ington on a short tour of the United States. His 
trip will take him to the Tennessee Valley Author- 
ity; Dallas, Tex.; Phoenix, Ariz.; Los Angeles, 
Calif. ; Detroit, Mich. ; and Niagara Falls, N. Y. 



November 2, 1959 



633 



President of Guinea Visits U.S. 

The Department of State announced on October 
16 (press release 729) that arrangements had been 
completed for the arrival at Washington on Octo- 
ber 26 of Sekou Toure, President of the Republic 
of Guinea, and Mrs. Toure, who will make a 10- 
day state visit to the United States at the invita- 
tion of President Eisenhower. 

President Toure and his party will remain at 
Washington until October 28, when they will be- 
gin a tour that will include visits at Raleigh, N.C., 
Chicago, 111., Los Angeles, Calif., Wheeling, 
W.Va., Omal, Ohio, and New York, N.Y. 



National Academy Completes 
Survey on Africa for iCA 

Press release 728 dated October 16 for release October 17 

"Africa's greatest resource is manpower — now 
largely illiterate and untrained. The rate at 
which it can be further developed and utilized 
will establish the tempo of progress." 

This is one of the major conclusions of a survey 
just completed by the National Academy of 
Sciences for the International Cooperation Ad- 
ministration. The stated objective of the survey 
was 

... to identify those problems of basic importance to the 
future development of sub-Sahara Africa which can be 
attacked to some significant degree through the tech- 
niques of foreign aid. 

Heavy investments in education at all levels 
will be required to develop Africa's potential of 
manpower, the Academy's report states. 

Begun in November 1958,' the study deals spe- 
cifically with the Sudan, Ethiopia, Somalia, 
Kenya, Uganda, Tanganyika, Nigeria, Ghana, and 
Liberia. 

The report of the Academy's survey, entitled 
"Recommendations for Strengthening Science 
and Technology in Selected Areas of Africa 
South of the Sahara," ^ covers the fields of 
education, medical and public-health services, ag- 
riculture, natural resources, engineering, technol- 
ogy, and industry. It submits recommendations, 
both specific and general in character, on how fu- 



' Bulletin of Feb. 16, 1959, p. 246. 

'Copies of the report are available from the Office of 
International Relations, National Academy of Sciences, 
2101 Conslitution Ave,, Washington 25, D.C. 

634 



ture technical cooperation programs can most 
effectively contribute to the development of the 
African covmtries included in the study. 

Agricultural development is considered second 
in order of priority, while raising the general level 
of health is of critical importance to achieving 
maximum utilization of human resources. 

In the area of capital production the report as- 
serts that, for the present and for a considerable 
period in the future, the development of Africa's 
metallic and nonmetallic mineral resources, fuels, 
and water resources should offer attractive oppor- 
tunities for foreign investment. 

"Emphasis should be placed on those industrial 
developments which will most rapidly increase na- 
tional wealth and hence stimulate economic 
growth," the report states. 

Improvement of systems of transportation and 
communications, increased public, private, and 
industrial construction, and exploitation of power 
resources are cited as applications of engineering 
which are vital to economic development and hu- 
man welfare. 

In its observations on the foreign assistance 
program as a whole the report asserts that "the 
philosophy of technical assistance on a govern- 
ment-to-government basis is soimd" and "as old 
as human society itself." It recommends that the 
foreign aid service be organized on a career basis 
and suggests that the appointment of a group of 
scientific consultants to the executive corps of the 
technical assistance agency would be highly 
desirable. 

Financed by ICA, the study was conducted by 
NAS through a steering committee named by the 
Academy and chaired by W. Albert Noyes, Jr., of 
the University of Rochester. The executive di- 
rector of the study was J. George Harrar, vice 
president of the Rockefeller Foundation, who ac- 
companied former ICA Director James H. Smith, 
Jr., and leading British scientists on a survey 
tour of Africa last November.' 

A panel of British scientists was named by the 
U.K. Government to serve as a consulting body. 
The U.K. panel was headed by Sir Alexander 
Todd, chairman of the Advisory Council on 
Scientific Policy to the Privy Council, and in- 
cluded a number of distinguished British scien- 
tists in the fields of agriculture and tropical 
medicine as well as general research. 



■ Bulletin of Nov. 17, 195S, p. 782. 

Department of State Bulletin 



The Future Course of the Development Loan Fund 



hy Vance Brand 

Managing Director, Development Loan Fund ' 



Of the 5 weeks elapsed since I was sworn in as 
Managing Director of the Development Loan 
Fund, I have spent almost 2 in the Near East. You 
will understand therefore that I am not yet in a 
position to describe steps taken and actions ac- 
complished. However, long before I was sworn 
in, I had begun thinking about the DLF and the 
cliallenge that it presents. Today I am going 
to tell you some of the ideas that are in my mind, 
some of the directions in which I shall be aiming, 
as I set about taking advantage of the opportunity 
which has been given me. 

Function and Objective of DLF 

Fii*st, let's size up the agency. The Develop- 
ment Loan Fund is about 2 years old. So far 
Congress has appropriated for it a total of $1,- 
400,000,000 in capital funds, of which about $835,- 
000,000 had been committed before I took office. 
This money is to be used in loans for specific un- 
dertakings, public and private, which upon 
thorough investigation are found to be economi- 
cally and teclmically sound and which will con- 
tribute to the economic growth and development 
of free underdeveloped nations. The major out- 
standing characteristic that distinguishes the De- 
velopment Loan Fund from other financing agen- 
cies is that it can accept repayment in currencies 
other than those lent. The DLF, by statute, does 
not make loans which other free-world financial 
institutions are prepared to consider, including 
private capital, Eximbank, and the IBRD. There 
are other stipulations and limitations on the 



' Address made before the Far East-America Council of 
Commerce and Industry, Inc., New York, N.Y., on Oct. 6 
(press release 699 dated Oct. 5). 



agency, but I don't mean to go into descriptive 
details in my talk today. 

The Development Loan Fund was established 
as part of the United States policy of assisting 
free friendly nations and is an important arm of 
the country's foreign policy. This is manifested 
by the fact that the Under Secretary of State, Mr. 
Douglas Dillon, is the Chairman of its Board of 
Directors. The other directors are the Chairman 
of the Board of Directors of the Export- Import 
Bank, Mr. Samuel C. Waugh ; the United States 
Executive Director on the International Bank for 
Reconstruction and Development, Mr. T. Graydon 
Upton ; the Director of the International Coopera- 
tion Administration, Mr. James W. Riddleberger; 
and myself. 

DLF's Field of Operations 

Next, I shall endeavor to size up the Develop- 
ment Loan Fund's field of operations. 

I think of the free world as being divided into 
three areas. There are the developed countries, 
where private enterprise is already active and 
there is no place for an agency like the Develop- 
ment Loan Fund. 

Then there is the other extreme. Certain coun- 
tries in Asia, Africa, and even Latin America are 
stiU so imdeveloped that free enterprise and 
mobilized industry find only a limited field in 
which to work and grow. Here the Development 
Loan Fimd's program should first exert itself. 
It can help finance the provision of basic facili- 
ties, like highways, harbors, waterways, communi- 
cations, and power systems, which are necessary 
for the continuous growth of private enterprise. 
Certainly the technical know-how of American 
industry should be brought to bear in establish- 



November 2, 7959 



635 



ing these facilities, but, at present, it is used 
mainly on an employed or consultant basis. The 
basic development activities generally are non- 
profit activities and hence do not provide a proper 
field for the exercise of the creative vitality of 
American enterprise. But I am satisfied that a 
way can and must be found for American industi-y 
to take added interest and more responsibility in 
the other important development processes in those 
underdeveloped countries — of course, always in 
cooperation with their people. 

This leaves most of the free world's area, the 
bulk of its population, and a large part of its 
natural resources in a third intermediate category 
made up of ambitiously developmg but still in- 
completely developed countries. Here there is 
still need for basic facilities, and the Development 
Loan Fimd can pi'operly help to provide them. 
At the same time, these countries are already 
reaching the stage where American free enterprise 
is exercising its creative role in cooperation with 
people of the countries concerned. Tlie problem 
here, as I see it, is to make sure that the efforts 
of the Development Loan Fmid and other i^ublic 
agencies do not in any way preempt or interfere 
with but, on the other hand, consciously and en- 
ergetically assist and promote the activities of 
private industry and enterprise, American and 
other. 

Cooperation With American Private Enterprise 

With such considerations as a background, I 
ask myself: How can I guide the Development 
Loan Fund's efforts so as best to carry out its 
assigned economic-development tasks witliin its 
proper field of action? 

Let me begin answering that question by saying 
something that may strike you as rather trite. A 
man cannot help bringing into any task his own 
background and experience, and my background 
happens to be that of a smalltown banker, lawyer, 
and businessman. Urbana, Ohio, was once an ag- 
ricultural economy with good banking facilities 
sufficient for the community without any need to 
go to Cincinnati or New York for money. I think 
you know what happened, because it's happened 
to thousands of similar towns all over the United 
States. Industries were established and built up. 
Over tlie agricultural economy was superimposed 
a thriving industrial economy. The local banks 
were no longer able to meet the needs of the com- 



munity, and people and industries began to bor- 
row funds outside. 

I saw all this happen and helped it happen. 
I went to Cincinnati and New York with these 
people and helped set up joint accounts with the 
larger city banks. And I know from my own 
knowledge that the business relationships thus 
established did more to draw Cincinnati, New 
York, and Urbana together and make tliem parts 
of a strong, well-knit economic system than all the 
studies on rural-urban sociology ever published. 

During my service with the Export-Import 
Bank I saw one new imderdeveloped country after 
another becoming more active and capable. I 
saw new industries established and commercial 
activity broaden. And I came to realize more 
and more that those countries were going through 
essentially the same experience that my own com- 
munity had gone through. In the one case as in 
the other, it is largely through business relation- 
ships that the newly developing areas are being 
bound together with the more industrialized areas 
in a strong, well-knit, free-world community. 
Flourishing business ties constitute a people-to- 
people kind of relationship that may be more 
effective in the long run than any other kind. 

So first and foremost I want the Development 
Loan Fund to be an effective instrument for help- 
ing create and cement closer business ties between 
the United States and the underdeveloped or de- 
veloping countries in which it operates. In other 
words, I want the considerable powers and re- 
sources of tlie Development Loan Fund to be used 
to the utmost to help bring the vitality, intelli- 
gence, and experience of American private enter- 
prise into those countries to participate in their 
own development efforts and those of other na- 
tions. This is the best way I know of to stimulate 
economic growth and development. 

Wlien I say American private enterprise, I 
mean every one of the three words. American 
enterprise, simply because the record proves as a 
fact that American industry has unexcelled re- 
sourcefulness, initiative, and creativity. Its 
qualities have been forged by a century and a lialf 
of experience in developing our own large and 
varied continent, and its record in developmental 
activities is unmatched. Private enterprise, be- 
cause I believe the peculiar problems of economic 
development require the talents of men who have 
proven themselves as producers and enterprisers. 



636 



Depariment of Sfate Bulletin 



The Development Loan Fund is not interested in 
promoting statism, primarily because we believe 
that statism is a blind alley for any developing 
nation that aims at sound progress. And enter- 
prise — that word is perhaps the key to the whole 
concept, because, without the spirit of drive and 
initiative which it implies, development simply 
cannot take place. Economic growth is as vital 
a process as bodily growth. It cannot be accom- 
plished with a mechanically conceived set of plans 
mechanically carried out. 

So wlien j'ou put all three words together — 
American private enterprise — ^you have what to 
my mind is unquestionably the most powerful and 
effective force, although not the only one, that can 
be applied to any problem or task of economic de- 
velopment. My desire to have the Development 
Loan Fund work as closely as possible with this 
force is not due to any narrow or chauvinistic or 
doctrinaire reasons. DLF's job is to stimulate 
economic development; I want it to do its job; T 
want it to use the best means available in doing 
so; and American private enterprise is the best 
means. That is all there is to it. 

Now, the profit motive is the driving power of 
American private enterprise. One of the first 
things I looked at in my new job is the fact that I 
do not have to make a profit because I am heading 
a Government agency. Lacking the inspiration of 
the profit motive and the guidance and discipline 
of profit considerations, it is all too easy to make 
decisions that otherwise might not be made — deci- 
sions that in economic affairs at least may lead 
into blind alleys because they are outside the 
stream of economic life. 

It is true that the Development Loan Fund is a 
nonprofit agency, but it is also true that its pur- 
pose is to stimulate economic development; and I 
am skeptical of any kind of economic develop- 
ment in the business and industrial sector that 
does not have the profit motive at its heart and 
center. In fact, I believe that without profits there 
will be no effective development. As Dr. Milton 
Eisenhower said last winter: "Private capital can- 
not be driven. It must be attracted." So one of 
the main objectives of the Development Loan 
Fund, insofar as I am concerned, will be to make 
sure that each loan opens the legitimate possibil- 
ity of a reasonable profit for somebody, either di- 
rectly or indirectly. 

Another consideration I am bearing in mind is 

November 2, 7959 



the fact that the dollar position of the leading 
friendly developed countries has changed very 
nmch for the better during the past decade. Our 
free- world allies are now able to take a much big- 
ger part in the worldwide economic development 
effort. It is as much to their interest to do so 
as it is to ours. I see no need for assuming that 
the United States must always pay most of the 
cost of international undertakings. The Develop- 
ment Loan Fund is not supposed to make loans 
for any projects for which financing is available 
on reasonable terms from any other source. I 
would like very much to see some of the other 
industrialized nations become alternative sources 
of financing to an increasing extent. 

The International Development Association, 
now in process of formation by the World Bank 
countries,- will bring additional funds into the de- 
velopment field but will not eliminate the need 
for bilateral assistance by all industrialized na- 
tions. I cannot help entertaining the hope that in 
addition to supporting such institutions, as we 
do, the other industrialized nations will also ex- 
pand their own development financing efforts, as 
we have. 

Uniqueness of Role 

Meanwhile, I would like to see the Development 
Loan Fund stick very closely to its own particular 
job, which is to work in the areas where the Ex- 
port-Import Bank, the International Bank for Re- 
construction and Development, and other sources 
do not reach. The essence of cooperation is to 
know where one agency's task leaves off and the 
other's begins. I earnestly believe the Develop- 
ment Loan Fund must become established in the 
minds of everyone not as a supplementary adjunct 
to the Export-Import Bank or the World Bank 
or the ICA but rather as a miique agency entitled 
to the solid consideration and backing of Amer- 
ican enterprise on its own merits. 

I look forward to seeing the Development Loan 
Fund work hand in hand with representatives of 
American industry in exploring investment op- 
portunities in the underdeveloped and developing 
parts of the world. I would like to see a group 
formed to represent American enterprise — not 
another advisory committee but an effective work- 



" For background, see Bulletin of Oct. 19, 1959, p. 531. 

637 



ing group which would cooj^erate with the Devel- 
opment Loan Fund and the Government but 
would form its own programs and goals and be 
responsible for its own actions. Its members 
would be willing to send their engineei-s and their 
other bright people into the world to see what they 
can do toward establishing free-enterprise activ- 
ities in partnershiji with the nationals of other 
countries. 

I would want the Development Loan Fund to be 
in a position to back up such an effort by American 
business with all its powers and resources, to be 
a cooi>erative and reliable partner which, when 
the risks appear substantial, would stand ready to 
help industry shoulder the financing burden. I 
believe that, with backing of the kind the DLF 
conceivably might provide, American industry, 
with all its energy and vitality, might make quick 
progress in solving the problems which impede the 
growth of many ambitious new nations. 

I know from my experience in the Export-Im- 
port Bank that one of the main problems con- 
fronting American entei-prise in such nations is 
the need for government backing and sharing the 
unusual risks in coping with situations that are 
beyond the scope of any private firm. On the other 
hand, when proper governmental support is avail- 
able, I have seen American firms go into countries 
like Argentina and work wonders. 

There is no doubt that manifold economic op- 
portunities exist in the areas we are talking about 
and that these opportunities can be exploited once 
we find means of getting around difficulties that 
are basically irrelevant to the economics of the 
situation — problems that arise mainly from the 
fact that the world is divided into separate na- 
tions and hence can be dealt with only by national 
and international bodies. 

Repayment Problem 

One sucli problem concerns the method of repay- 
ing development loans. In both the underdevel- 
oped and developing areas there are countries 
which cannot digest any further dollar-repayable 
financing. Such countries for the time being need 
financial assistance in forms adapted to their cur- 
rent position. Such assistance may take the form 
of local-currency repayment, on fairly long terms, 
or repayment partly in one currency and partly 
in another. The point is that repayment problems 
may have only a very indirect connection with 



the soundness of a given project from the engineer- 
ing and economic standpomts. 

For example, a plant to manufacture soda ash 
and related chemicals is being established in 
Korea. All of the products to be made are needed 
in Korea and at present are being imported. All 
of the raw materials except salt are available in the 
immediate vicinity of the plant, and salt is avail- 
able elsewhere in Korea. The management of the 
firm is experienced, and an American firm of engi- 
neering consultants has approved the plant plans 
and confirmed the existence of a market for its 
output. Labor and technical supervision are no 
problem. The plant would save more than $2 mil- 
lion a year — ultimately perhaps more than $4 mil- 
lion — in foreign exchange in a country whose 
foreign exchange deficits are now largely met by 
grants from the United States. In spite of all 
this, the investment climate in Korea is such that 
neither private sources nor such public sources of 
credit as the Export-Import Bank, the IBED, or 
the International Finance Corporation are inter- 
ested. The Development Loan Fund has approved 
a loan of $5,600,000 to help this plant get started, 
and we regard it as a sound project in spite of 
the fact that the loan necessarily has to be repaid 
in local currency. 

As I say, this loan is an example of those that 
have already been made. It illustrates the kind 
of backing that the Development Loan Fund can 
provide in support of private enterprise in the 
face of problems that no private institution can 
solve by itself. I would like to see such backing 
placed behind an organized effort by American 
business in a cooperative drive to open the oppor- 
tunities of developing regions. 

With a mobilized body of American business 
and industrial talent probing into the underde- 
veloped and developing countries to search out 
the many ways in which free enterprise, both 
American and local, can be established and put 
to work; with the Development Loan Fund and 
other fii\ancial agencies ready to back up the 
sound projects that emerge, each in its own ap- 
propriate way ; with increased effort by other in- 
dustrialized countries; and with the incalculable 
power and drive of American free enterprise 
available to help those countries exploit every op- 
portunity that is opened, the problem of develop- 
ing the world's economic frontiers into strong, 
contributing parts of a worldwide free-enterprise 



638 



Department of Sfafe Bulletin 



community can be cut down to manageable 
proportions. 

At any rate the Development Loan Fund and 
American industry are going to cooperate as one 
team in using United States business talent, engi- 
neers, economists, brains, and tools for extending 
the creative ferment of the American industrial 
revolution into the areas where it is needed. That 
is the resolution I have formed as I take over my 
new duties, and time will prove to you that I liave 
not formed it in vain. 

Not long ago Mr. Douglas Dillon, the Under 
Secretary of State, who is also the Chairman of 
the Board of Directors of the Development Loan 
Fund, said:^ 

An increased flow of United States private investment 
Into underdeveloped countries, accompanied by the in- 
genuity and dynamism that has alvrays characterized 
United States private enterprise, could mean an injection 
of vitality into the underdeveloped countries that would 
set off an unparalleled process of economic growth. 

That is and will remain our guiding thought 
in the Development Loan Fund. 



New Zealand To Relax Restrictions 
on Dollar Imports 

Press release 725 dated October 15 

Following is a joint statement hy the Depart- 
ments of Commerce and State regarding the re- 
cent relaxation hy New Zealand of its controls 
against dollar im,ports. 

The United States welcomes the announcement 
by the Government of New Zealand that a further 
reduction of discrimination against imports from 
the dollar area will take place in 1960. Under 
the new import licensing schedule. New Zealand 
importers will be free to purchase their assigned 
quotas of almost all commodities from any area in 
the world. Only motor vehicles and timber will 
be retained in a special category requiring indi- 
vidual consideration and authorization prior to 
importation from the dollar area. 



'lUd., Dec. 29, 1958, p. 1056. 



The new licensing schedule will raise the level 
of imports for 19G0. Further changes will abol- 
ish import licensing requirements for approxi- 
mately 14 percent of New Zealand's imports. 
New administrative procedures authorized for 
1960 are designed to provide more flexibility in 
the issuance of licenses, allowing growing busi- 
nesses to expand imports, new importers to enter 
the market, and token imports of previously pro- 
hibited products to enter New Zealand. 

This move improves the opportunity of United 
States firms to compete on equal terms with firms 
from other coimtries for sales in the New Zealand 
market and should increase trade between New 
Zealand and the United States. 



President Defers Investigation 
of Tariffs on Certain imports 

White House press release dated October 13 

The President has concurred with the U.S. Tar- 
iff Commission's recent findings that no formal in- 
vestigation should be instituted at this time to de- 
termine whether the tariff should be reduced on 
imports of linen toweling and watch movements. 
The President found, witli the Tariff Commission, 
that there is not sufficient reason at this time to re- 
open the escape-clause actions of several previous 
years, which resulted in increases in the tariffs on 
these items. The President's decision means that 
the increased rates of duty previously established 
as the result of escape-clause actions will continue 
to apply without reduction or other modification. 

The President's action was taken after consul- 
tation with the Trade Policy Committee. The 
Tariff Commission studies were made pursuant to 
Executive Order 10401, which requires the peri- 
odic review of affirmative actions taken under the 
escape clause. The Commission's conclusions on 
two such reviews were stated in the following re- 
ports, which it submitted to the President: (a) 
second review of the 1956 tariff increase on linen 
toweling, reported July 24, 1959, and (b) fourth 
review of the 1954 increase in duty on watch 
movements, reported July 27, 1959. 



November 2, 7959 



639 



INTERNATIONAL ORGANIZATIONS AND CONFERENCES 



Calendar of International Conferences 



Adjourned During October 1959 

ICAO Meteorological Division: 5th Session (joint session with 
WMO Commission for Aeronautical Meteorology). 

IAEA Board of Governors: 13th Session 

11th International Road Congress 

FAO Experts on Fisheries Statistics in North Atlantic Area . . . 

IAEA General Conference: 3d Regular Session 

International Monetary Fund, International Bank for Reconstruc- 
tion and Development, International Finance Corporation: 
Annual Meetings of Boards of Governors. 

GATT Committee III on Expansion of International Trade . . . 

Conference of Experts for the Revision of the Hague Arrangements 
for the International Deposit of Designs and Models. 

U.N. EGA Conference of African Statisticians: 1st Session . . . 

ICAO Jet Operations Requirements Panel: 4th Meeting 

U.N. ECAFE Subcommittee on Electric Power: 7th Session . . . 

PAHO Executive Committee: 39th Meeting 

International Council for the Exploration of the Sea: 47th Annual 
Meeting. 

Program of the U.N. High Commissioner for Refugees: Executive 
Committee. 

CENTO Ministerial Council: 7th Meeting 

U.N. ECE Working Party on Construction of Road Vehicles. . . 

ILO Panel of Consultants on the Problems of Women Workers . . 

South Pacific Commission: 20th Session 

GATT Committee on Balance-of-Payments Restrictions 

ITU Administrative Council: Special Session 

U.N. ECE Timber Committee: 17th Session 

UNESCO Intergovernmental Copyright Committee: 4th Session . 

IAEA Symposium on Metrology of Radionuclides 

FAO/ILO Technical Meeting on Cooperatives for the Near East . 

ILO Building, Civil Engineering, and Public Works Committee: 
6th Session. 

International Wheat Council: 28th Session 

Inter-American Nuclear Energy Commission: 1st Meeting .... 

FAO Experts on Standardization of Time Reference in Agricultural 
Statistics. 

FAO Committee on Commodity Problems: 32d Session 

FAO Group on Cocoa: 5th Meeting of Committee on Statistics . . 

ANZUS Council: 7th Meeting 

GATT Working Party on Commodities 

U.N. ECAFE Zonal Meeting of Experts on International High- 
ways. 

U.N. ECAFE Inland Transport and Communications Committee: 
2d Meeting of Experts on International Highways. 

U.N. Scientific Advisory Committee on Atomic Energy 

FAO Council: 32d Session 



Montreal Sept. 1-Oct. 7 

Vienna Sept. 14-Oct. 6 

Rio de Janeiro Sept. 21-Oct. 3 

Edinburgh Sept. 22-Oct. 2 

Vienna Sept. 22-Oct. 2 

Washington Sept. 28-Oct. 2 

Geneva Sept. 28-Oct. 6 

The Hague Sept. 28-Oct. 8 

Addis Ababa Sept. 28-Oct. 8 

Montreal Sept. 28-Oct. 9 

Tokyo Sept. 29-Oct. 6 

Washington Oct. 1 (1 day) 

Copenhagen Oct. 5-10 

Geneva Oct. 6-10 

Washington Oct. 7-9 

Geneva Oct. 12-16 

Geneva Oct. 12-17 

Noumea, New Caledonia . . . Oct. 12-24 

Tokyo Oct. 12-24 

Geneva Oct. 12-13 

Geneva Oct. 12-16 

Munich Oct. 12-17 

Vienna Oct. 14-16 

Cairo Oct. 17-31 

Geneva Oct. 19-30 

London Oct. 19-20 

Washington Oct. 20-24 

Rome Oct. 22-31 

Rome Oct. 22-27 

Rome Oct. 23-24 

Washington Oct. 24 (1 day) 

Tokvo Oct. 26-28 

Bangkok Oct. 27-30 

Bangkok Oct. 27-30 

New York Oct. 28-29 

Rome Oct. 29-30 



Geneva Oct. 31, 1958- 

Washington Apr. 13- 

Geneva Aug. 17- 

New York Sept. 15- 

Geneva Oct. 14- 



In Session as of October 31, 1959 

Political Discussions on Suspension of Nuclear Tests 

PAHO Subcommittee To Study the Constitution and Rules of 
Procedure. 

ITU Administrative Radio Conference 

U.N. General Assembly: 14th Session 

ITU Plenipotentiary Conference 

' Prepared in the Office of International Conferences, Oct. 15, 1959. Asterisks indicate tentative places or dates. 
Following is a list of abbreviations: ANZUS, Australia, New Zealand, and United States; CENTO, Central Treaty 
Organization; EGA, Economic Commission for Africa; ECAFE. Economic Commission for Asia and the Far East; ECE, 
Economic Commission for Europe; ECOSOC, Economic and Social Council; FAO, Food and Agriculture Organization; 
GATT, General Agreement on Tariffs and Trade; IAEA, International Atomic Energy Agency- ICAO, International 
Civil Aviation Organization; ICEM, Intergovernmental Committee for Pluropean Migration; ILO, International Labor 
Organization; ITU, International Telecommunication Union; NATO, North Atlantic Treaty Organization; PAHO, Pan 
American Health Organization; U.N., United Nations; UNESCO, United Nations Educational, Scientific and Cultural 
Organization; WHO, World Health Organization; WMO, World Meteorological Organization. 



640 



Department of State Bulletin 



Conference on Antarctica 

Consultative Committee on Cooperative Economic Development 

in South and Southeast Asia: 11th Meeting. 

GATT Contracting Parties: 15th Session Tokyo 

U.N. ECE Committee on Development of Trade and East-West Geneva 

Trade Consultations. 
FAO Conference: 10th Session Rome 



Washington Oct. 15- 

Jogjakarta Oct. 26- 



Oct. 26- 
Oct. 26- 

Oct. 31- 



Scheduled November 1, 1959, Through January 31, 1960 

International North Pacific Fisheries Commission: 6th Session . . 

ICEM Executive Committee: 13th Session 

ILO Experts on Statistics of Industrial Injuries 

WMO Regional Association for Asia: 2d Session 

U.N. ECAFE Inland Waterways Subcommittee: 5th Session . . . 

ILO Governing Body: 143d Session (and Committees) 

UNESCO Executive Board: 55th Session 

ICEM Council: 11 th Session 

IAEA Conference on Radioactive Waste Disposal 

NATO Parliamentary Conference 

South Pacific Commission: Regional Seminar on Education . . . 

U.N. ECAFE Working Group of Experts on Capital Formation . . 

U.N. ECE Conference of European Statisticians: Working Group 
on Statistics of Private Consumption Expenditure. 

U.N. ECAFE Committee on Inland Transport and Communica- 
tions: 8th Session. 

Inter-American Children's Institute: 40th Meeting of Directing 
Council. 

International Union of OflScial Travel Organizations: 14th General 
Assembly. 

FAO Council: 33d Session 

11th Pan American Child Congress 

Inter-American Cultural Council: 3d Meeting 

ILO Advisory Committee on Salaried Employees and Professional 
Workers: 5th Session. 

International Sugar Council: 4th Session 

International Sugar Council: Executive and Statistical Com- 
mittees. 

FAO Meeting on Hemorrhagic Septicemia in Livestock 

ILO African Advisory Committee: 1st Session 

International Rubber Study Group: 61st Meeting of the Manage- 
ment Committee. 

U.N. ECE Committee on Agricultural Problems: 11th Session . . 

U.N. Seminar on the Evaluation and Utilization of Population 
Census Results. 

ICAO Facilitation Division: 5th Session 

U.N. ECAFE Zonal Meeting of Experts on International High- 
ways. 

Ist FAO International Meeting on Date Production and Process- 
ing. 

U.N. ECAFE Zonal Meeting of Experts on International High- 
ways. 

FAO Plant Protection Committee for Southeast Asia and Pacific 
Region: 3d Meeting. 

U.N. ECE Housing Committee and Working Parties 

ILO Technical Meeting Concerning Certain Aspects of Industrial 
Relations Inside Undertakings. 

FAO International Rice Commission: Working Party on Rice Pro- 
duction and Protection. 

FAO International Rice Commission: Working Party on Rice Soil, 
Water, and Fertilizer Practices. 

U.N. ECAFE Railway Subcommittee: 6th Session; and Working 
Partv of Rnilwav Mechanical Engineers. 

U.N. ECE Coal Trade Subcommittee 

U.N. ECE Inland Transport Committee: 19th Session 

NATO Council: Ministerial Session 

U.N. ECE Coal Committee 

Caribbean Commission: 29th Meeting 

South Pacific Commission: Study Group on Filariasis and Ele- 
phantiasis. 

U.N. Economic and Social Council: 28th Session (resumed) . . . 

U.N. Special Fund Governing Council: 3d Session 

U.N. ECAFE Industry and Natural Resources Committee: Semi- 
nar on Aerial Survev Methods and Equipment. 

U.N. ECAFE Intraregional Trade Promotion Talks 

U.N. Scientific Committee on Effects of Atomic Radiation: 7th 
Session. 



Seattle Nov. 2- 

Geneva Nov. 3- 

Geneva Nov. 3- 

Rangoon Nov. 3- 

Bangkok Nov. 4- 

Gencva Nov. 9- 

Paris Nov. 9- 

Geneva Nov. 12- 

Monaco Nov. 16- 

Washington Nov. 16- 

Brisbane Nov. 16- 

Bangkok Nov. 16- 

Geneva Nov. 16- 

Bangkok Nov. 18- 

Bogotd Nov. 20- 

Manila Nov. 20- 

Rome Nov. 21- 

Bogotd Nov. 22- 

San Juan Nov. 22- 

Cologne Nov. 23- 

Tangier Nov. 23- 

Tangier Nov. 23- 

Manila Nov. 30- 

Luanda, Angola Nov. 30- 

London Nov. 30- 

Geneva Nov. 30- 

Santiago Nov. 30- 

Rome Dec. 1- 

New Delhi Dec. 1- 

Tripoli Dec. 5- 

Lahore Dec. 7- 

New Delhi Dec. 7- 

Geneva Dec. 7- 

Geneva Dec. 10- 

Peradeniya, Ceylon Dec. 14- 

Peradeniya, Ceylon Dec. 14- 

Lahore Dec. 14- 

Geneva Dec. 14- 

Geneva Dec. 14- 

Paris Dec. 15- 

Geneva Dec. 15- 

Cayenne, French Guiana . . . December 

Nuom^a, New Caledonia . . . December 

New York December 

New York December 

Bangkok Jan. 4- 

Bangkok Jan. 5- 

New York Jan. 11- 



November 2, 7959 



641 



Calendar of International Conferences — Continued 



Scheduled November 1, 1959, Through January 31, 1960 — Continued 



U.N. ECOSOC Subcommission on Discrimination and Protection 

of Minorities: 12th Session. 

U.N. ECE Steel Committee and Working Parties 

U.N. ECAFE Committee on Trade: 3d Session 

U.N. ECE Ad Hoc Worthing Party on Gas Problems 

U.N. ECAFE Committee on Industry and Natural Resources: 12th 

Session. 
ICAO African-Indian Ocean Regional Air Navigation: 3d Meeting . 

U.N. Economic Commission for Africa: 2d Session 

U.N. ECE Electric Power Committee 

U.N. Trusteeship Council: 25th Session 

FAO Asia-Pacific Forestry Commission: 5th Session 

North Pacific Fur Seal Commission: 3d Meeting 

WHO Executive Board: 25th Session 

Program of the U.N. High Commissioner for Refugees: Executive 

Committee. 



New York 



Jan. 11- 



Geneva Jan. 12- 

Bangkok Jan. 18- 

Geneva Jan. 20- 

Bangkok Jan. 23- 

Rome Jan. 26- 

Tangier Jan. 27- 

Geneva Jan. 27- 

New York Jan. 29*- 

India January 

Moscow January 

Geneva January 

Geneva January 



The United States and the International Atomic Energy Agency 



Statement by John F. Floherg 

Commissioner, U.S. Atomic Energy Commission ^ 



Mr. President, our delegation warmly com- 
mends yon for assuming the task of president of 
this conference and for the manner in which you 
have presided over our meetings. It is a great 
honor to represent my country on this occasion. 

In spite of the great temptation to debate politi- 
cal questions of consuming personal interest to all 
of us in this liall, I shall exclude from this discus- 
sion those questions properly within the jurisdic- 
tion and already on the agenda of other interna- 
tional forums. 

The problems to be solved to make the atom 
serve the peaceful purposes contemplated by the 
statute of the Agency and to achieve the goals we 
have established are formidable. Their solution 
can only be delayed by confusing them with polit- 
ical issues, and especially we deplore hearing such 
issues dragged before this conference. 



' Made before the third general conference of the Inter- 
national Atomic Energy Agency at Vienna, Austria, on 
Sept. 24. Mr. Floberg was Acting Alternate U.S. Repre- 
sentative to the conference. 



I am sure all of us also regret the lack of con- 
structive suggestions or offers of additional sup- 
port of the Agency from the Soviet delegate. 
Instead, we heard a polemical diatribe against the 
Agency and all of its works. This attitude con- 
trasts sharply with the spirit of the conversation 
held last week between Professor Yemelyanov ^ 
and Chairman [John A.] McCone of the U.S. 
Atomic Energy Commission, where the attitude 
was one of cooperation to assist the Agency. 

For our part, Mr. President, we shall confine 
our remarks to a discussion which we hope will be 
constructive and helpful to the coming year's work 
of this Agency. 

It is a high purpose that brings us again to this 
beautiful city of Vienna. Our Governments send 
us here to talk to each other as friends united in 
the common cause so well stated in the statute of 



' I'rof. V:isily S. Yemelyanov, chief of the Main Admin- 
istration for Atomic Knergy in the Soviet I'nion, was a 
meinber of the party whi<-h acoonipanied Chairnian Xikita 
S. Khrushchev to the United States Sept. 1,V27. 



642 



Department of Sfofe Bulletin 



the Agency, namely, to "seek to accelerate and 
enlarge the contribution of atomic energy to peace, 
health and prosperity throughout the world." 

My Government reailirms its steadfast faith in 
that objective. We are confident that, given the 
support it deserves from all members, this still 
very young international organization will fulfill 
that goal. 

Since we met last year, the Agency has grown 
steadily in usefulness and made substantial prog- 
I'ess in many of the programs endorsed by the 
second conference to the Board of Governors. An 
excellent review of this progress is provided in the 
annual report of the Board. 

Among the activities that seem particularly 
worthy of commendation are the expansion of the 
training and education program made possible 
by more member states otTering fellowships; 
sponsorshiiJ by the Agency on its own initiative, 
or in cooperation with other organizations, of con- 
ferences and symposia; the good work done in 
the area of health and safety ; and the establish- 
ment of constructive working relationships with 
a number of international organizations having 
a specialized interest in the peaceful applications 
of nuclear energy. 

It is especially significant, it seems to us, that 
so many member states are making well qualified 
experts available to sei-ve on the special Agency 
panels and to take part in the symposia. For 
example, the work done by the Agency panel on 
civil liability and state responsibilities for nuclear 
hazards has resulted in a constructive draft con- 
vention dealing with the difficult question of 
third-party liability. 

The Government of Austria is especially to be 
commended for placing its reactor facilities at the 
disposal of the Agency for use on a cooperative 
basis along with the Agency's laboratory. This 
conmionsense arrangement will benefit both par- 
ties by I'educing costs through the sharing of serv- 
ices and facilities. We hope that it presages the 
continued growth of Vienna as an increasingly 
important center of nuclear teclinology. 

In preparation for this conference we have 
made a thorough study of Agency opportunities 
and responsibilities. We have tried to take into 
consideration significant changes that have oc- 
curred since the idea of an international body to 
promote peaceful uses of atomic energj' was 



put forward nearly G years ago by President 
Eisenhower. 

Naturally, changing economic conditions and 
atomic developments have brought about some 
siiifts in emphasis. This is best illustrated in the 
area of nuclear power. 

Six years ago it appeared likely that the sliort 
supply of uranium would be a limitation on the 
development of nuclear reactors. Today uranium 
is plentiful, even in oversupply, and its availabil- 
ity as reactor fuel has not become a problem. 

Six years ago many of us felt that the advanc- 
ing nuclear technology shortly would put the 
atom in competition with conventional fuels in 
meeting world energy demands. Since then, a 
surplus and related drop in price of coal in some 
regions and discovery of new reserves of oil and 
natural gas have, temporarily at least, lessened 
the urgency in many parts of the world for 
emergency-fcype nuclear power programs to meet 
immediate energy needs. 

Also experience has shown that some of the 
early optimistic cost estimates on nuclear power 
plants could not be realized in the first or second 
generation of reactors. Nevertheless there have 
been notable advances in nuclear power technol- 
ogy. When the nuclear power plants being built 
or definitely planned are added to those now in 
operation, there will be several million kilowatts 
of electrical generating capacity being used to 
supplement present power resources. But we 
have not yet reached the point where nuclear 
power is generally competitive, except possibly in 
very high cost areas. 

These conditions give us the opportunity to 
press forward with a more thorough and diversi- 
fied effort to bring us closer to the goal of eco- 
nomic power throughout the world. As you 
know, one of the specific objectives of the United 
States national program is to develop reactors 
that will be competitive with conventional fuels 
in high cost power areas outside of our counti-y. 

In other vital areas of peaceful uses, this still 
experimental phase of nuclear power development 
gives the Agency the opportunity for further de- 
velopment of its programs in other pressing fields. 
These include experimental and training equip- 
ment; increase of radioisotope production facili- 
ties and their better utilization; health and safety 
programs ; assistance to members in the organiza- 



November 2, 7 959 



643 



tion and administration of their atomic energy 
programs ; and a steady flow of skilled manpower 
specifically trained to take important places in 
the programs of their respective countries. 

Special Needs of Underdeveloped Areas 

From our considerations of these factors at this 
conference, and from the free exchange of ideas 
on this floor and in the committees, we believe 
there will come recommendations to the Board of 
Governors for strengthening present Agency pro- 
grams where necessary and projecting activities 
that will serve all members. The most important 
thing is to give help where it is needed most. 
This responsibility is shared by all, but it rests 
most heavily on those member states that are rela- 
tively advanced in teclinology and resources. 

We believe that optimum progress can be made 
by a fully cooperative effort within the frame- 
work of the Agency. Most of the problems in- 
volved are international in scope. We must face 
the fact that it takes money and technical re- 
sources, including manpower, to achieve a satis- 
factory rate of progress in any peaceful-uses 
program. In relative terms, with respect to ful- 
fillment of their needs, the more technically ad- 
vanced nations are moving ahead at a more rapid 
rate than the underdeveloped countries. This 
condition puts a new emphasis on the words that 
occur several times in the Agency statute — "bear- 
ing in mind the special needs of the underdevel- 
oped areas of the world." 

The United States has demonstrated consist- 
ently its special concern for the welfare of the 
lesser developed countries, including those which 
have become new and independent states in the 
recent postwar period. Many of these states are 
members of this organization. We hope that as 
other peoples organize their own governments — 
notably in Africa — they, too, will turn to the 
Agency for guidance as to when and hoio to 
launch nuclear programs best suited to their re- 
spective needs. 

To an increasing degree the Agency will be- 
come the repository of information that reflects 
the experience of its members. Its guidance and 
advice can serve well in those situations where 
faith in the potential of the peaceful atom to do 
big tilings quickly sometimes does not take into 
accomit the hard realities of the atomic age. 



I am confident that most of us will agree that 
the technical competence of the Agency has in- 
creased to the point where it is ready to expand 
its present assistance into a coordinated effort that 
best will sei-ve the underdeveloped areas. For 
this reason the United States will rely more and 
more on the Agency as a major institution for 
making U.S. technical aid generally available to 
peaceful atomic uses pi-ograms especially in the 
less advanced areas. 

We also view the increasing capacity of the 
Agency to deal with international matters such as 
safeguards and health and safety as widening the 
opportunity for all members to use it as the 
chosen instrument to make a united attack on 
these problems. 

We are presenting for your consideration recom- 
mendations in seven areas of Agency program 
activity: expanded technical assistance, training, 
radioisotopes, research, information, nuclear 
power, and health and safety. Wlierever the 
United States can offer some special help to an 
Agency activity, we will specify it in discussing 
that program. 

Most of our proposals are concerned primarily 
with the overall Agency program in 1961. As for 
the coming year, the United States supports the 
1960 program and budget recommended by the 
Board of Governors. They are based on the best 
estimates of Agency needs and capabilities for the 
coming year. 

At the same time we urge the Director Gen- 
eral and the Board to continue their efforts to keep 
the size of the secretariat to the minimum needed 
to carry out Agency programs effectively. We 
believe this is being done in the 1960 budget. 

The level set for the operational budget is 
modest. The goal set at the second conference 
also was modest, but, with the 1959 year nearing 
its close, it has not been fully met. We strongly 
hope that the total $1,500,000 sought will be 
acliieved before the end of this year. 

Meanwhile all of us face the challenge of the 
1960 operational budget. We will be asked to 
make new financial commitments. When this 
iteni is reached on the conference agenda, the 
United States will make its 1960 pledge. We 
urge every member government to support the 
operational budget to assure the success of the 
program which has been planned. 

Wo turn now to a discussion of Agency activi- 



644 



Department of Stale Bulletin 



ties in specific fields. We have given much 
thought to the nature and scope of services and 
projects wliich seem to us to merit special effort 
in view of current needs. Some of our proposals 
deal directly witli the strengthening of Agency 
assistance to underdeveloped areas. Others em- 
brace problems that are worldwide in scojie. 

Increased Technical Assistance 

The Agency has assumed a major responsibility 
for furnisliing experts to assist member states. 
This is being done in part througli its own staff, 
but it still is necessary for members having spe- 
cialized personnel to continue to make their serv- 
ices available. 

The program is going well. What is lacking is 
some method of providing the necessary equip- 
ment that would make it possible for the countries 
assisted to make the best use of the advice being 
furnished through Agency auspices. 

Therefore the United States recommends that 
the Agency begin now to plan for an enlarged 
technical assistance program that will include the 
offering of equipment to members through the 
Agency. This effort can be shaped especially for 
the underdeveloped areas. Specifically we are 
thinking about items such as subcritical assemblies, 
radioisotope irradiation sources, irradiation facili- 
ties, and the kinds of laboratory equipment that 
can be used to the best advantage in each particular 
situation. 

The xVgency already has made a start in this 
field. We hope that this effort can be expanded in 
1961. The United States would encourage its 
friends to seek this kind of help from the Agency. 
We believe tliat, with support from those membere 
having appropriate resources, the Agency can en- 
large this program. 

The methods to be used to carry out the equip- 
ment program can be worked out cooperatively by 
the contributing members with the Board and the 
secretariat. There might be grants, loans of 
equipment, or lease arrangements — or some com- 
bination of methods. We would look to the 
Agency staff to survey the needs and evaluate the 
requests as to scope and timing so that each piece 
of equipment made available would fill a pressing 
need. 

For the immediate future, and to the extent that 
funds are available, the United States will, through 



the Agency, supplement Agency efforts to meet as 
many equipment requests of members as it can. 

Training 

The rapid growth of the Agency program for the 
training of scientists and technicians is gratifying. 
The figure in the Board of Governors' report shows 
that, through June 30 of this year, the total nomi- 
nations for fellowships had passed the 500 mark — 
to be exact, 526 from 41 countries. Of these, 349 
had at that time been selected for placement in 
facilities made available by member states. This 
program should be continued, and the United 
States will maintain its support of this effort in 
1960 with fellowships for Agency-selected stu- 
dents. 

The Agency also should encourage the develop- 
ment of independent training capacity in more 
member states. Emphasis would be on sponsor- 
ship of summer institutes for university and sec- 
ondary-school faculty members. The successful 
seminar held at Saclay [France] in cooperation 
with UNESCO in July is an example of a useful 
exchange of ideas in this field. 

An Expanded Radioisotopes Program 

The present Agency effort should be expanded, 
especially in making the most efficient use of its 
mobile training laboratories for the training of 
cadres of technicians in radioisotope techniques 
and safe handling. The effort should be concen- 
trated more and more in miderdeveloped regions. 

A new requirement is developing. Research re- 
actors are commg into operation rapidly. Many 
of these reactors can produce radioisotopes in use- 
ful quantities. What we suggest as needed is 
Agency assistance in planning the production of 
radioisotopes in these reactors and providing for 
their most effective use. In some cases this may 
involve equipment to process the radioisotopes for 
specific needs of the count i-y where they are pro- 
duced. Perhaps a technical advisory service 
could be set up to assist members with newly 
acquired facilities. 

The Agency also can assist many members im- 
portantly by suggesting the adaptation to their 
special needs of the accumulated experience of 
other members in the radioisotope field. I am 
sure there will come to the minds of many of you 



November 2, 7959 



645 



examples of this. In my countiy the attacks on 
certain noxious insects have been sufficiently suc- 
cessful to lead us to believe that the techniques 
developed will find use in other areas and against 
other pests. 

The standardization program will receive more 
attention when the Agency service laboratory 
comes into operation. We suggest planning can 
begin now on at least one problem. At present 
there do not exist unifonn methods for making 
precise measurements of radioactivity, especially 
the isotopic distribution in low-level activity in 
food, plants, and water. The evaluation and 
adaptation of pi'esent methods to produce agreed- 
upon standard measurements of radioactivity are 
of great importance. They are essential to the 
development of Agency healtli and safety pro- 
grams, especially in the waste-disposal study 
which we sliall propose. Such standardization 
also is necessary in international investigations of 
natural and reactor-induced radioactivity and of 
nuclear accidents. 

Research Activities 

Our country believes that the fostering and co- 
ordination of research is one of the most impor- 
tant responsibilities of the Agency. For example, 
in the important investigations into the possibility 
of controlled thermonuclear reactions, the Agency 
should assume a commanding role in coordinating 
this effort and in disseminating the accumulating 
data. 

Already we have found, as we had hoped, that 
the international character of the Agency staff 
brings to liglit scientific resources of other mem- 
bers that can be used in joint research efforts. We 
feel as we did last year that there exists a wealth 
of scientific and technical competence that tlie 
Agency can draw on for the benefit of all members. 

The Agency-U.S. program we proposed last 
year is progressing and will be continued in 1960. 
A contract lias been signed to suj^port an attack on 
the difficult problem of producing calcium 47, an 
important I'adioisotope in nuclear medicine that 
is in short, supply. Other contracts being nego- 
tiated include studies ii: plant breeding and in 
population and Inunan genetics. 

The results of this research work done for the 
United States tlirough the Agency will be made 
available to the entire membership. We hope that 



other members will initiate similar programs 
through the Agency. 

Distribution of Technical Information 

Tlie useful work being done liere should be con- 
tinued and expanded. The forthcoming Agency 
journal in the field of controlled thermonuclear 
research represents a unique opportunity for the 
Agency to assume leadership in this field of tech- 
nical literature. We urge that it be expedited. 

The Agency is becoming an important source 
for international directories such as those covering 
the availability of radioisotopes and power reac- 
tors. A special field lies in the collating of data 
being received from the technically advanced 
members for the use of the entire membership. 

Data on nuclear cross sections, for example, are 
accumulating. As more countries acquire the 
capability to contribute to this specialized field, 
the Agency will be the logical instrument to use 
for collecting the data on a global basis. 

Reactor Development and Nuclear Power 

We feel that the Agency is following a most 
practical course in carrj'ing out the mandate of 
the second conference to survey the needs of the 
less developed countries and make a continuing 
study of small- and medium-scale nuclear power 
reactors best suited to their economic development. 
I am sure that all of us have noted the interim re- 
port. For our part we will continue to assist the 
Agency in its field studies and evaluations with 
personnel and infonnation. 

We have previously discussed the changed eco- 
nomic situation with respect to the rate of devel- 
opment of nuclear power in many important areas. 
Do not, however, mistake our realism for pes- 
simism. In mj' own country there are reactor 
concepts and exi^enments that give promise of 
success including sevei-al small- and medium-sized 
reactors. 

In addition to the U.S. work on many types and 
sizes of reactors, our program specifically includes 
the early construction of a small prototype reactor 
of the pressurized water type — the system with 
which we have had tlie most experience. This 
project will be devoted exclusively to developing 
a true small-size powei- producer. 

AVe have had the Agency program specifically 
in mind in planning this reactor. The aim is to 



646 



Department of State Bulletin 



produce a nuclear plant with favorable power- 
generatinir costs, that would be suitable for use 
in places where the economic factor of heavy in- 
dustrial demand is not immediately present. We 
do not, however, underestimate the difficulties to 
be overcome in attaining this objective. 

We believe that this pressurized water project, 
like the other small- or medium-sized power reac- 
tors that are part of the U.S. efl'ort, will be a stini- 
ulus — in fact, an adjunct — to the Agency reactor 
survey program. Accordingly we will discuss 
with the Agency the establishment of a program 
under wliich Agency technical personnel could 
participate in this project from design stage 
through startup and operation. We also will pro- 
vide the Agency prompt information on these 
reactors, including cost data, plans, and 
specifications. 

We also recommend that a study of the eco- 
nomics of reactor systems using thorium be mider- 
taken. We are willing to participate in such a 
study and make available to the Agency the infor- 
mation accumulated in this field, including designs 
of various thoriiun reactor systems. 

Health and Safety 

We wish to emphasize our strong feeling that a 
high priority should be given to the problem of 
disposal of radioactive wastes from the very low 
level discharge from small laboratories to the 
highly radioactive fission products from nuclear 
reactors. The work done so far by the Agency in 
waste disposal sei-ves to point up the urgency of 
this problem, and the forthcoming conference at 
Monaco in November is a constructive step. ^ 

A number of factors contribute to the waste 
problem. The number of radioisotope usere is 
now in the thousands and is increasing. Uranium 
mining and milling operations are growing. 
Chemical processing plants to handle the spent 
fuel from reactors will increase. There are al- 
ready, according to a conservative estimate, more 
than 300 civilian reactors now or soon to be in 
operation. 

The disposition of wastes from these operations 
is an international problem. The Agency has a 
unique opportunity to deal with a matter that 
is not susceptible to solution by individual states. 



' An IAEA Conference on Radioactive Waste Disposal 
will be convened at Monaco on Nov. 16. 



Therefore we urge the Agency to take the leader- 
ship in finding the answers to this problem. We 
oifer the following five-point proposal for an 
immediate attack : 

1. Initiate a program designed to determine the 
feasibility of establishing regional or international 
burial grounds for packaged and solid radioactive 
wastes. This would involve an investigation of 
disposal requirements and lead to the evaluation 
of suitable disposal sites. 

2. Investigate the designation of specific sea 
disposal sites and establish an international reg- 
istry for sea disposal operations. 

■i. Begin field studies, in cooperation with mem- 
ber states and regional groups, to determine the 
fate of radioactive materials that may find their 
way into international rivers. Generally these 
would be wastes of low levels of activity generated 
by isotope users and diluted in sewage systems. 
The object would be to determine the safe capacity 
of these waterways to receive such materials, par- 
ticularly where the rivers were drawn on to pro- 
vide drinking water or for irrigation. 

4. Develop basic criteria and design for radio- 
isotope laboratories with emphasis on health, 
safety, and waste disposal and prepare a handbook 
oi\ the treatment and disposal of low-level wastes. 
Tliis document would be valuable in countries con- 
templating the beginning of small-scale nuclear 
operations. 

5. Undertake an analysis of the asjiects of 
waste disposal to emphasize the international 
nature of the problem. 

The United States is prepared to give this 
undertaking full support. We are ready to send 
our own scientists, engineers, and equipment to 
assist Agency research and development projects 
launched under this xerogram. Effective Agency 
leadcrsliip in the next 3 or 4 years in this critical 
area holds the promise of major and specific ac- 
complishment of which the Agency could be 
proud. 

Obviously this effort would be a major part of 
the Agency health and safety programs. My 
Government also believes the Agency should con- 
sider assuming responsibility in the field of re- 
actor hazards evaluations. 

Over tlie past few years the United States has 
rendered important advisory assistance to a num- 
ber of countries. Without approving or disap- 



November 2, 1959 



647 



proving a particular project, the U.S. Atomic 
Energy Commission has made these evahiations on 
the basis of the factors it uses in judging tlie safety 
of a reactor in the United States. 

The Agency has received requests for such as- 
sistance and is building a staff competent in the 
field of reactor safety. One could expect that, 
on the basis of a demonstrated competence, an in- 
creasing number of countries would turn to the 
Agency for this service. 

The waste disposal and reactor safety evalua- 
tion programs would lead the Agency into the 
area of coordination with other appropriate inter- 
national organizations and member government 
authorities in the adoption of standards for 
maximum permissible radiation exposure result- 
ing from tlie peaceful uses of atomic energy. The 
Agency should assist, to the extent possible, in 
securing adoption of these standards so that its 
findings, espex^ially in waste disposal investiga- 
tions, can be related properly to minimal worker 
and environmental exposure. 

"We believe that the proposals we have made in 
these seven areas of Agency program effort, ])lus 
other ideas that will be placed before you, form 
a challenging panorama of the opportunities that 
lie before this organization. They would i)rovide 
the best jiossible means for the more developed 
members to help all other membei-s and assist small 
and new nations in bringing the proven benefits of 
the atomic age to their peoples. 

Agency System of Safeguards 

We turn now to the question of an adequate 
Agency system of safeguards. 

The rapid increase in the use of fissionable 
materials makes it imperative that steps be taken 
to put article XII of the Agency statute into effect. 
During the past year ad hoc safeguards procedures 
were adopted for the fuel transaction handled be- 
tween the Agency and Japan. 

The Board of Governors is currently facing the 
problem of adopting principles and realistic pro- 
cedures to carry out the intent of the statute. 
That clearly expressed intent is to assure at least 
that assistance provided by the Agency will not be 
used to furtlier any military purpose. 

My Government wishes to compliment the 
Board of Governors on the excellent progress 
made thus far. We are confident that a safe- 
guards system will evolve that is in accord with 



the statute ratified by all 70 member governments. 

We understand that the Board is now complet- 
ing the task of approving a statement of safe- 
guards principles. We anticipate that during the 
ensuing year the Board will adopt a set of regula- 
tions based on these principles and that both the 
principles and the regulations will be transmitted 
to all members well in advance of the fourth gen- 
eral conference for discussion at that time. 

A sound and workable safeguards system is of 
great importance to our common hopes for the 
peaceful development of atomic energy. The 
position of my Government on safeguards has 
been clear from the earliest negotiations that led 
to the successful international effort to create this 
important organization. 

Many of you here today will recall that at the 
1958 conference our delegation endorsed the re- 
quest of the Government of Japan for the Agency 
to take over as soon as possible the administration 
of the safeguards provisions in the agi'eement for 
cooperation between our two coimtries.* We are 
confident that other countries which are signa- 
tories to bilateral agreements will decide to follow 
the same course. 

The United States has accumulated a signifi- 
cant body of information based on its own expe- 
rience with respect to the accounting for and the 
controlling of materials which it is prepared to 
make available to the Agency. 

Overall Distribution System 

The rapid rise in the quantity of nuclear mate- 
rials being committed for use in large-scale power 
reactore and fueling of the truly remarkable in- 
crease in the number of research reactors in many 
parts of the world illustrates the marked change 
in the supply situation with respect to reactor fuel. 

Uranium, the basic raw material of the atomic 
age, is fast becoming a commodity of international 
trade. Its present abundance contrasts sharply 
with its scarcity in 1953. Its availability, either 
in enriched or natural form, is not a limitation on 
its use. This means that an Agency function ini- 
tially considered of primary importance — that of 
allocating a presumably scarce supply of nuclear 
material on a worldwide basis — has changed in 
character. 

In our view the Agency has a vital role to play 



' Bl-LLKTIN- of Oct. 27, 19.^8, p. 668. 



648 



Department of State Bulletin 



ill the overall disti'ibution system. Its ability to 
supply substantial quantities of materials serves 
as an additional alternative source of procurement 
for all nations and thus reduces the dependency 
on individual suppliers. Many nations may wish 
to satisfy their requirements through the Agency 
rather than through bilateral arrangements. Fi- 
nally, the Agency must accommodate the needs of 
projects developed under its own initiative. 

The United States intends more and more to 
encourage our bilateral partners to draw upon the 
Agency's available pool of materials to satisfy 
their requirements. One result of using the 
Agency would be to give it important experience 
in building up its materials distribution activities. 

In this connection we welcome the Director Gen- 
eral's announcement of inquiries from two Gov- 
ernments concerning the supply of enriched ura- 
nium by the IAEA. "We understand — and are 
most gratified to learn — that the Government of 
Austria has now decided to proceed with the 
development of an ari-angement with the Agency 
for the supply of fuel required for the Seibers- 
dorf research reactor. We are confident that this 
requirement will be accommodated in a way which 
will insure that it is only the forenmner of many 
such transactions between the Agency and its 
membere. 

As all of you know, under the U.S.-IAEA agree- 
ment, which came into effect on August 7, 1959,'^ 
5,000 kilogi-ams of uranium 235, plus any 
amounts required to match the contributions by 
other members to July 1960, is now available to 
the Agency at published charges applicable to 
users in the United States. 

As a matter of general long-t«rm policy, the 
United States, subject to appropriate authoriza- 
tions and development of an adequate Agency 
safeguards system, is prepared to channel through 
tlie Agency as much of its material allocated for 
foreign distribution as the Agency needs to meet 
the requests of its members. For fueling- research 
and materials-testing reactors, reactor experi- 
ments, and subcritical assemblies, the United 
States will lease to the Agency such portion of the 
5,070 kilograms of uranium 235 already allocated 
as may be assigned by the Agency for such proj- 
ects. The United States is prepared also to do- 
nate in the coming year up to $50,000 of enriched 



° For an announcement of the signing of the agreement, 
see ibid., June 8, 19.59, p. 852. 



uranium for use in Agency-sponsored research 
projects, including research reactors. At current 
charges this would mean that nearly 3 kilo- 
grams of enriched material will be available as a 
gift to the Agency. 

It should be noted here that the initial cost of 
fuel can be a deterrent to nuclear power develop- 
ment. Therefore it was announced in February 
of this year that, as part of a total worldwide pro- 
gram of 500 megawatts. Agency-sponsored power 
projects may acquire enriched uranium from the 
United States under a system of deferred pay- 
ments that assists in meeting the problem of initial 
capital outlay. The fuel cost under this plan is 
spread out over a period of 20 years. 

Fellow delegates, that completes our presenta- 
tion. To summarize, with respect to our estimate 
of the Agency's progress and our support of its 
programs, we have reached the following 
conclusions : 

i. The Agency is now ready and able to be- 
come a principal channel through which the more 
advanced nations can pool their efforts most ef- 
fectively to provide expert advice, materials, and 
equipment to the peaceful uses programs of the 
underdeveloped areas. 

2. The Agency should embrace the opportimi- 
ties to expand its programs that contribute to this 
goal, including nuclear power studies, into a major 
coordinated effort based on the proposals which 
the member states are putting forward at this 
conference. 

3. The Agency now has the competence to as- 
sume vital responsibilities in the areas of safe- 
guards and in health and safety, especially in the 
urgent problem of waste disposal. 

4. The Agency has a continuing and important 
role as a supplier of source and special nuclear 
materials. 

5. The United States believes that the Agency 
is achieving its objective of accelerating the peace- 
ful applications of nuclear energy throughout the 
world. 

Finally, we believe that all of us now recognize 
that the Agency is indispensable in this atomic 
age. Its gi-owth should be steady and commen- 
surate with the emerging problems which it best 
can solve. We hope that every member nation 
will reexamine its plans for future contributions — 
in money, materials, and manpower — so that the 
Agency can be assured of adequate resources to 



November 2, 1959 



649 



cope with the expanding international aspects of 
the peaceful applications of atomic energy. 

Thus will all of us share our nuclear knowledge 
and experience to the end that — to use the often 
repeated but still inspiring words — the atom will 
become truly the seiTant of man. 



peace and cooperation in a vast area of the world. 
The conference will undertake this task with 
confidence. 

The United States, as host country, welcomes 
you. We wish you a pleasant stay here and look 
forward to a successful conference. 



Conference on Antarctica 
Opens at Washington 

A 12-nation Conference on Antarctica, called to 
negotiate a treaty to insure the same kind of co- 
operation in Antarctica as obtained dur'ing the 
International Geophysical Year, began at Wash- 
ington, D.G., on October 15. FoUoiving is an ad- 
dress of welcome made by Secretary Herter at the 
opening session, an announcement of the heads of 
the 12 delegations, and a list of the U.S. 
delegation. 



ADDRESS OF WELCOME BY SECRETARY HERTER 

Press release 723 dated October 15 

It is a pleasure and an honor for me, on behalf 
of the Government of the United States, to wel- 
come to Washington the distinguished i-epresent- 
atives and advisers who compose the delegations 
to the Conference on Antarctica. 

We are meeting here for the purpose of reach- 
ing an agreement concerning a vast continent. 
Long a mystery, later the scene of heroic adven- 
ture and exploration, this continent is now an 
area of the world m which international scientific 
cooperation, for the benefit of mankind, has been 
successfully demonstrated to an outstanding de- 
gree by the brave men of the nations here repre- 
sented who participated in the Antarctic programs 
of the International Geophysical Year. 

My Government is dedicated to the principle 
that the continuation of tliis cooperation should 
be assured and that Antarctica sliould be used for 
peaceful purposes only, should not become an 
object of political conflict, and sliould be open 
for the conduct of scientific investigations. 

The exertions of the explorers and scientists of 
nations represented here have made possible lliis 
opportunity to formulate and give legal effect to 
certain high principles which, in consonance with 
the cliarter of the United Nations, would insure 



HEADS OF DELEGATIONS 

The Department of State announced on Octo- 
ber 13 (press release 719) that the heads of dele- 
gations to tlie Conference on Antarctica are as 
follows : 

Argentina: Adolf o Scilingo, Special Adviser to the Pres- 
ident, Buenos Aires 

Australia: Richard Gardiner Casey, C. H., Minister for 
External Affairs, Canberra 

Belgium: Viscount Aubert de Thieusies, Brussels 

Chile: Marcial Mora, Member, Senate of Chile, Ambas- 
sador, Santiago 

France: Pierre Charpentier, Ambassador, Paris 

Japan: Koichiro Asaliai, Ambassador, Embassy of Japan, 
Washington, D.C. 

New Zealand: W. Nash, C.H., Prime Minister, Wellington 

Noricay: Paul Koht, Ambassador, Royal Norwegian Em- 
bassy, Washington, D.C. 

Union of South Africa: Eric H. Louw, Minister of Ex- 
ternal Affairs, Pretoria 

U.8.S.R.: Vasily V. Kuznetsov, First Deputy Minister for 
Foreign Affairs of the U.S.S.R. 

United Kingdom: Sir Esler Deuing, G.C.M.G., O.B.E., 
Loudon 

United States: Herman Phleger, U.S. Representative 



U.S. DELEGATION 

The Department of State announced on Oc- 
tober 9 (press release 713) the membership of the 
U.S. delegation to the Conference on xVntarctica, 
which convened at Washington on October 15 : 

U.S. Representative 

Herman Phleger (with personal rank of ambassador) 

U.S. Alternative Representatives 

Paul C. Daniels, special adviser on Antarctica, Depart- 
ment of State 

George H. Owen, director, Antarctica Staff, Department 
of State 

Congressional Adviser 
Frank Carlson, U.S. Senate' 



'The Department of State announced on Oct. 14 (press 
release 720) that Senator Gale W. JlcGee had also been 
naiHod to serve as a congressional adviser to the U.S. 
delegation. 



650 



Deparfment of State Bulletin 



Advisers 

Capt. Eugene W. Davis, MSN, Department of Defense 

Larkiu W. Farinholt, Office of the Science Adviser, De- 
partment of State 

Milan W. Jerabelc, Bureau of European Affairs, Depart- 
ment of State 

Alan F. Neidle, Office of the Legal Adviser, Department 
of State 

Henry C. Reed, Bureau of Inter-Americnn Affairs, De- 
partment of State 

Arthur H. Rosen, Bureau of Far Eastern Affairs, Depart- 
ment of State 

Robert M. Schneider, Bureau of African Affairs, Depart- 
ment of State 

Secretary of Delegation 

Wayne W. Fisher, Antarctica Staff, Department of State 

Participating nations will be the 12 nations 
which cooperated in the Antarctica proo;ram of 
tlie International Geophj'sical Year: Argentina, 
Australia, Belgium, Chile, France, Japan, New 
Zealand, Norway, the Union of South Africa, the 
Union of Soviet Socialist Eepublics, the United 
Kingdom, and the United States. 

The Conference has as its task the conclusion of 
a treaty for the purpose of insuring the same kind 
of cooperation in Antarctica which obtained dur- 
ing the International Geophysical Year. 



SCIENCE ADVISERS TO U.S. DELEGATION 

The Department of State announced on October 
19 (press release 736) that at its request the Na- 
tional Academy of Sciences has appointed a com- 
mittee of six distinguished scientists, headed by 
Laurence M. Gould, president of Carleton College, 
to advise the U.S. delegation to the Conference on 
Antarctica. Other members of the committee are 
Albert P. Crary, Lloyd V. Berkner, Francis W. 
Eeichelderfer, Merle A. Tuve, and Harry Wexler. 

All the individuals selected for this committee 
by Detlev W. Bronk, president of tlie National 
Academy of Sciences, have an active interest in 
the scientific investigations which are being car- 
ried out in Antarctica. Because of their experi- 
ence and background they will be able to assist the 
delegation in matters which may arise involving 
science. 

The U.S. delegation will also receive advice 
directly from the National Science Foundation, 
the Government agency responsible for coordinat- 

November 2, 7959 



ing the planning and management of the U.S. 
scientific program in Antarctica. 



U.S. Hopes for Soviet Cooperation 
in U.N. Outer-Space Activities 

iStatemerd by Henry Cabot Lodge 

U.S. Representative to the General Assembly 

U.S. delegation press release 3238 dated October 7 

Mr. [V. v.] Kuznetsov has said that the Soviet 
Union will propose a United Nations sponsored 
conference to exchange experience in the explora- 
tion of outer space. We welcome this new de- 
parture in Soviet policy and hope that it means 
cooperation in the future work of the United Na- 
tions in the field of outer space. 

The United States, for its part, strongly sup- 
ports the establishment by this General Assembly 
of a United Nations space committee. The idea 
of exchange of experience in exploring outer space 
advanced by Mr. Kuznetsov is illustrative of the 
many useful things which might be achieved 
through cooperative action in such a United Na- 
tions body. 



U.S. Allocates Funds 
for Refugee Relief 

The Department of State announced on October 
9 (press release 711) that the United States had 
allocated $100,000 for the assistance of Tibetan 
refugees, $80,000 to aid Chinese refugees in Hong 
Kong, and another $150,000 for the emergency 
relief of Algerians in Tunisia and Morocco. An- 
nouncement of this was made at Geneva on that 
day by Robert S. McCollum, U.S. delegate to the 
Executive Committee meeting of the Program of 
the U.N. High Commissioner for Refugees. 

Mr. McCollum, Deputy Administrator of the 
Bureau of Security and Consular Affairs, Depart- 
ment of State, disclosed that the $80,000 would be 
used to expand refugee food production. The 
food project in Hong Kong is being carried on 
willi the cooperation of private organizations, in- 

651 



eluding Church World Service, the National Catli- 
olic Welfare Conference, and the Lutheran World 
Federation. 

Mr. McCollum also explained that the $150,000 
is being provided througli the U.N". High Com- 
missioner to aid many Algerians in Tunisia and 
Morocco, almost all of whom are women, children, 
and aged persons. These contributions bring to 
almost $2,500,000 tlie sums advanced so far by the 
United States for the U.N.-sponsored World Ref- 
ugee Year. It also brings to over $6,500,000 the 
sums allocated both in funds and in surplus foods 
for the relief of the Algerian refugees. 



Supplementary Stems Added 
to Agenda of Genera! Assembly 

U.N. doc. A/4230/Acld. 1 

Note: At its 826th plenar.v meeting on 12 October 1959, 
the General Assembly decided, on the recommendation of 
the General Committee (A/4237), to include the following 
items in the agenda of its fourteenth session : ' 

71. International encouragement of scientific research 
into the control of cancerous diseases. 

72. The United Nations Library: gift of the Ford 
Foundation. 

73. The question of Tibet. 



President To Nominate Mr. Cutler 
to Inter-American Bank Board 

The Wliite House announced on October 14 that 
the President had made known his intention to 
nominate Robert Cutler as tlie U.S. member of the 
seven-man Board of Executive Directors of the 
Inter- American Development Bank. 

On October 14, under legislation approved in 
the last session of Congress, Secretary of the 
Treasury Robert B. Anderson formally signed the 
Bank agreement, thus accepting membership on 
behalf of the United States. Secretary Anderson 
will be appointed by the President to serve as 
Governor of the Bank, and Under Secretary of 
State Douglas Dillon will be named Alternate 
Governor. 



'For the agenda adopted on Sept. 22, see Bulletin of 
Oct. 12, 1959, p. 522. 



United Staaies Delegations 
to International Conferences 

ITU Plenipotentiary Conference 

The Department of State announced on October 
12 (press release 716) the designation of Francis 
Colt de Wolf as chairman of the U.S. delegation 
to the Plenipotentiary Conference of the Interna- 
tional Telecommunication Union, whi-^^- --■•■-■ «| 

at Geneva October 14, 1959. The Department 
also announced the designation of Commissioner 
Rosel H. Hyde of the Federal Communications 
Commission as vice chainnan of the delegation. 

Other members of the delegation include: 

Members 

Edwin TV. Bemis, American Telephone and Telegraph Co. 

Sidney S. Cummins, Office of International Administra- 
tion, Department of State 

Ronald G. Egan, European director, International Com- 
munications, Western Union Telegraph Co., London, 
England. 

Taul Goldsborough, Office of the Assistant Secretary of 
Defense for Supply and Logistics 

Raymond L. Harrell, Telecomnnmications Division, De- 
partment of State 

Alfred A. Hemninge, American Cable and Radio Corp. 

Frederic E. Meinholtz, American Newspaper Publishers 
Association 

Paul D. Miles, executive secretary, Interdepartmental 
Radio Advisory Committee, Office of Civil and Defense 
Mobilization 

Charles H. Owsley, Deputy U.S. Representative at the 
European Office of the United Nations and Other Inter- 
national Organizations, Geneva 

Francis W. Ryan, American Telephone and Telegraph Co. 

Philip F. Siliug, Radio Corporation of America 

Raymond E. Simouds, Radio Corporation of America 

Marion H. Woodward, Chief, International Division, Com- 
mon Carrier Bureau, Federal Communications Com- 
mission 

Secretary of Delegation 

Eugene R. Schelp, Office of International Conferences, De- 
partment of State 

The International Telegraph Union was formed 
in 1865. In 1906, after a small preliminary meet- 
ing in Berlin in 190.3, the Berlin Conference on 
Radiotelegraph formulated a convention. In 
1912 at London and in 1927 at Washington, confer- 
ences were held that covered radiotelegraph and 
utilized the Bern Bureau of the ITU for adminis- 
tration. The Telecommunication Convention of 
Madrid in 1932 canceled all previous conventions 
and changed the old International Telegraph 
Union to the International Telecommunication 



652 



DepaTtment of Sfo/e Bui/efin 



Union. Because of delay incident to World War 
II, a plenipotentiary conference did not meet to 
revise the Madrid convention until tlie Atlantic 
City conference in 1947. This conference intro- 
duced fundamental changes in the organization of 
the Union; new j^ermanent organs of the Union 
were created and old ones expanded, and it became 
a specialized agency of the United Nations. The 
International Telecommunication Convention of 
1952, signed at Buenos Aires, came into effect in 
1954 and is the present charter of the Union. 

The purpose of tliis plenipotentiary conference 
is to revise the Buenos Aires convention. The con- 
ference is expected to be in session until the middle 
of December. 



Norway 

Convention modifying and suppIementinK the convention 
of June i;i. 1949 (TIAS ■S.i:,!). for ttie avoidance of 
double taxation and the prevention of fiscal evasion 
with respect to taxes on income. Signed at Oslo July 
10, 1958.' 
Ratified hy the President: September 4, 19.59. 



DEPARTMENT AND FOREIGN SERVICE 



Exemption of Functions 
Under [Vlutual Security Act 



TREATY INFORMATION 



Current Actions 



MULTILATERAL 

Copyright 

Universal copyright convention. Done at Geneva Septem- 
ber 6, 1952. Entered into force September 16, 1955. 
TIAS 3324. 
Accession deposited: Czechoslovakia, October 6, 1959. 

Protocol 2 to the universal copyright convention concern- 
ing the application of that convention to the works of 
certain international organizations. Done at Geneva 
September 6, 1952. Entered into force September 16, 
1955. TIAS 3324. 
Accession deposited: Czechoslovakia, October 6, 1959. 

Protocol 3 to the universal copyright convention concerning 
the effective date of instruments of ratification or ac- 
ceptance of or accession to that convention. Done at 
Geneva September 6, 1952. Entered into force August 
19, 1954. TIAS a324. 
Accession deposited: Czechoslovakia, October 6, 1959. 

Finance 

Agreement establishing the Inter-American Development 
Bank, with annexes. Done at Washington April 8, 1959.^ 
Signatures and acceptances: Argentina, United States, 
October 14, 1959. 



White House press release dated October 12 
WHITE HOUSE ANNOUNCEMENT 

The President on October 12 signed an Execu- 
tive order waiving one provision of law which 
otherwise would apply to contracts made tmder 
the Mutual Security Act of 1954, as amended. 

The provision waived by this order is one re- 
quiring that Government contracts include pro- 
vision for the examination of records of contrac- 
tors by the General Accoimting Office. The 
waiver is restricted to contracts of the Department 
of Defense and is further restricted to those con- 
tracts for procurement abroad in the case of which 
compliance with the inspection of records require- 
ment is deemed impracticable. 

The waiver is made under authority of section 
533 of the Mutual Security Act of 1954, as 
amended, and is made in furtherance of purposes 
declared in that act. A similar requirement under 
a predecessor statute, now expired, was formerly 
waived. The new order is thus occasioned by the 
enactment of the new statute and the expiration 
of the old and is in the nature of a reinstatement 
of the earlier waiver. 



BILATERAL 

Colombia 

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. Effected by ex- 
change of notes at Bogota October 6, 1959. Entered into 
force October 6, 1959. 



' Not in force. 
November 2, 7959 



EXECUTIVE ORDER 10845' 

FtJKTHEE Specification of Laws From Which Functions 
Authorized by the Mutual Security Act of 1954, as 
Amended, Shall Be Exempt 

By virtue of the authority vested in me by section 533 
of the Mutual Security Act of 1954, 68 Stat. 860 (22 U.S.C. 
1793) it is ordered as follows: 



' 24 Fed. Reg. 8317. 



653 



Section 1. It is hereby determined that, to the extent 
indicated in the preamble of section 2 of I>]xecutive Order 
No. 10784 of October 1, 1958,= and in section 2(e) of that 
order as added by this order, the performance of func- 
tions authorized by the Mutual Security Act of 1954, as 
amended, without regard to the provisions of section 3 
(b) of the act entitled "An Act to authorize the making, 
amendment, and modification of contracts to facilitate the 
national defense" (72 Stat. 972; 50 U.S.C. 1433(b)) will 
further the purposes of the Mutual Security Act of 1954, 
as amended. 

Sec. 2. Executive Order No. 10784 of October 1, 1958, 
is hereby amended : 

(a) By substituting the following for that portion of 
section 2 thereof which precedes the lettered items of 
section 2 : 

"Sec. 2. With respect to purchases authorized to be 
made outside the limits of the United States or the Dis- 
trict of Columbia under the Mutual Security Act of 1954, 
as amended :" 

(b) By adding the following paragraph (e) at the 
end of section 2 thereof : 

"(e) Section 3(1)) of the act entitled 'An Act to au- 
thorize the making, amendment, and modification of 
contracts to facilitate the national defense' (Public Law 
85-804, approved August 28, 1958, 72 Stat. 972; 50 
U.S.C. 1433(b)), but only with respect to contracts in 
which the inclusion of the clause required by section 
3(b), or the compliance with that clause, if included in 
a contract, is deemed by the executive or military de- 
partment concerned to be impracticable." 



/^ i,fLS-^L'C~ZjU~lC^U^ A.»0"N^ 



The White House, 
October n,lS50. 

Recess Appointments 

The President on October 13 appointed John D. Hick- 
erson to be Ambassador to the Philippines. (For biogra- 
phic details, see Department of State press release 718 
dated October 13. ) 



Designations 

Edward A. Bolster as deputy director, Office of Trans- 
port and Communications, effective October 12. 

Gardner E. Palmer as Director, U.S. Operations Mis- 
sion, Japan, and Minister for Economic Affairs, Tokyo, 
effective November 1. (For biographic details, see De- 
partment of State press release 488 dated July 7.) 



Checl< List of Department of State 
Press Releases: October 12-18 

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

Keleases issued prior to October 12 which appear 
in this issue of the Bulletin are Nos. 699 of Oc- 
tober 5, 705 of October 7, and 711, 713, and 714 of 
October 9. 

Subject 

ITU delegation (rewrite). 

Dillon : departure for GATT meeting, 
Tokyo. 

Hickerson appointed Ambassador to 
Philipi^ines (biographic details). 

Delegation to Conference on Antarc- 
tica (rewrite). 

McGee named delegate to Conference 
on Antarctica (rewrite). 

Prime Minister of Morocco visits U.S. 

Itinerary for Crown Prince of 
Ethiopia. 

Herter : Conference or Antarctica. 

Argentina credentials (rewrite). 

Relaxation by New Zealand of con- 
trols again.st dollar imports. 

Soviet composers visit U.S. 

Berding : National Association of 
Broadcasters. 

NAS survey of Africa. 

President of Guinea visits U.S. (re- 
write). 

Herter : death of Gen. George C. 
Marshall. 

Soviet violation of diplomatic im- 
munity of Russell Langelle. 

Wilcox : "Great-Power Cooperation in 
the United Nations." 

*Xot printed. 

jHeld for a later issue of the Bulletin. 



No. 


Date 


710 

717 


10/12 
10/13 


*71S 


10/13 


719 


10/13 


720 


10/14 


721 

*722 


10/14 
10/14 


723 
724 

725 


10/15 
10/15 
10/15 


720 
72 ( 


10/15 
10/16 


71\S 
729 


10/16 
10/16 


*730 


10/16 


731 


10/17 


t732 


10/18 



" For text, see Bulletin of Oct. 27, 1958, p. 664. 



654 



Department of State Bulletin 



November 2, 1959 



Ind 



e X 



Vol. XLI, No. 1062 



Africa. National Academy Completes Survey on 

Africa for ICA 634 

American Principles. President Eisenhower Dedi- 
cates Lilirary at Abilene (Eisenhower) .... 620 

American Republics. President To Nominate Mr. 

Cutler to Inter-American Bank Board .... 652 

Antarctica. Conference on Antarctica Oijens at 

Washington (Herter, delegations) 6'50 

Argentina. Letters of Credence (Del Carril) . . 623 

Asia. Under Secretary Dillon Departs for GATT 

Meeting at Tokyo (Dillon) 6.33 

Atomic Energy 

The Question of Disarmament (Lodge) 615 

The United States and the International Atomic 

Energy Agency ( Floberg ) 642 

Communism. The Cold War and the Khrushchev 

Visit ( Berding) 627 

Cultural E.vchange. Soviet Composers Visit U.S . 632 

Department and Foreign Service 

Designaticms (Bolster, Palmer) 654 

Recess Appointments (Hickerson) 654 

Disarmament. The Question of Disarmament 

(Lodge) 615 

Economic Affairs 

Bolster designated deputy director, OflBce of Trans- 
port and Communications 654 

The Future Course of the Development Loan Fund 

(Brand) 6.35 

ITU Plenipotentiary Conference (delegation) . . 652 

New Zealand To Relax Restrictions on Dollar 

Imports 639 

I'resident Defers Investigation of Tariffs on Certain 
Imports 639 

President To Nominate Mr. Cutler to Inter-Ameri- 
can Bank Board 652 

Under Secretary Dillon Departs for GATT Meeting 
at Tokyo (Dillon) 633 

Guinea. President of Guinea Visits U.S .... 634 

International Organizations and Conferences 

Calendar of International Conferences Q40 

Conference on Antarctica Opens at Washington 

(Herter, delegations) 650 

ITU Plenipotentiary Conference (delegation) . . 652 
President To Nominate Mr. Cutler to Inter-Ameri- 
can Bank Board 652 

Under Secretary Dillon Departs for GATT Meeting 

at Tokyo (Dillon) 633 

The United States and the International Atomic 

Energy Agency (Floberg) 642 

Japan. Palmer designated Minister for Economic 

Affairs and director, USOM 654 

Mexico. Presidents of Mexico and United States 
Reaffirm Ties of Friendship (Eisenhower, Lopez 
Mateos, joint statement) 624 



Morocco. Prime Minister of Morocco Tours United 

States 633 

Mutual Security 

Exemption of Functions Under Mutual Security 

Act (text of Executive order) 6.53 

The Future Course of the Development Loan Fund 

(Brand) 6.35 

National Academy Completes Survey on Africa for 

ICA 634 

Palmer designated director, USOM, Japan .... 654 

Nevf Zealand. New Zealand To Relax Restrictions 

on Dollar Imports 639 

Philippines. Hickerson appointed Ambassador . . 654 

Presidential Documents 

Exemption of Functions Under Mutual Security 
Act 653 

President Eisenhower Dedicates Library at 
Abilene 620 

Presidents of Mexico and United States Reaffirm 

Ties of Friendship 624 

Refugees. U.S. Allocates Funds for Refugee Re- 
lief G51 

Science. U.S. Hopes for Soviet Cooperation in 

U.N. Outer-Space Activities (Lodge) 651 

Treaty Information. Current Actions 653 

U.S.S.R. 

The Cold War and the Khrushchev Visit (Berd- 
ing) 627 

The Question of Disarmament (Lodge) 615 

Soviet Composers Visit U.S 632 

U.S. Hopes for Soviet Cooperation in U.N. Outer- 
Space Activities (Lodge) 6.51 

U.S. Protests Soviet Actions Against American 
Attach(5 632 

United Nations 

The Question of Disarmament (Lodge) 615 

Supplementary Items Added to Agenda of General 

Assembly 652 

U.S. Allocates Funds for Refugee Relief .... 651 
U.S. Hopes for Soviet Cooperation in U.N. Outer- 
Space Activities (Lodge) 651 

Name Index 

Berding, Andrew H 627 

Bolster, Edward A 654 

Brand, Vance 635 

Cutler, Robert 652 

Del Carril, Emilio Donato 623 

De Wolf, Francis Colt 652 

Dillon, Douglas 633 

Eisenhower, President 620, 624, 6.53 

Floberg, John F 642 

Herter, Secretary 650 

Hickerson, John Dewey 654 

Ibrahim, Mouley Abdullah 633 

Lodge, Henry Cabot 615, 651 

Lopez Mateos, Adolfo 624 

Palmer, Gardner E 654 

Tour6, S6kou 634 



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Vol. XLI, No. 1063 



November 9, 1959 



[HE 

IFFICIAL 

VEEKLY RECORD 

)F 

INITED STATES 

OREIGN POLICY 



THE SHAPE OF AMERICAN POLICY • by Vnder Secre- 

tary Murphy 659 

GREAT-POWER COOPERATION IN THE UNITED 

NATIONS • by Assistant Secretary Wilcox 663 

FOOD FOR PEACE • by Don Paarlberg, Special Assistant to 

the President 672 

PROGRESS OF THE U.N. SPECIAL FUND • Statement 

by Christopher H. Phillips 689 

PLANNING ECONOMIC AND SOCIAL DEVELOP- 
MENT • Statement by Walter M. Kotschnig 692 

GENERAL ASSEMBLY CALLS FOR RESPECT FOR 

RIGHTS OF TIBETAN PEOPLE • Statements by 
Ambassador Henry Cabot Lodge and James W. Barco and 
Text oj Resolution 683 



For index see inside back cover 



THE DEPARTIVIENT OF STATE 




Vol. XLI, No. 1063 • Pubucation 6905 
November 9, 1959 



For sale by the Superintendent of Documents 

U.S. Government rrlntlng Office 

Washington 26, D.O. 

Price: 

62 Issues, domestic $8.60, foreign $12.26 

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The printing of this publication has been 
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Note: Contents of this publication are not 
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The Department of State BULLETIN, 
a weekly publication issued by the 
Public Services Division, Bureau of 
Public Affairs, provides the public 
and interested agencies of the 
Government with information on de- 
velopments in the field of foreign rela- 
tions and on the work of the Depart- 
ment of State and the Foreign Service. 
The BULLETIN includes selected press 
releases on foreign policy, issued by 
the White House and the Department, 
and statements and addresses made 
by the President and by the Secretary 
of State and other officers of the De- 
partmen t, as well as special articles on 
various phases of international affairs 
and the functions of the Department. 
Information is included concerning 
treaties and international agreements 
to which the United States is or may 
become a party and treaties of general 
international interest. 

Publications of the Department, 
United Nations documents, and leg- 
islative material in the field of inter- 
national relations are listed curren tly. 



The Shape of American Policy 



hy Under Secretary Mv/rfhy ^ 



This is an interesting moment in the history 
of American foreign relations, and a discus- 
sion of some aspects of it may be timely. Your 
interest in these problems is most encouraging to 
all of us in the State Department and is an index 
of the spread of interest in foreign affairs so 
noticeable around the country. This of course was 
not always so. Not so many years ago a crisis in 
Laos or Tibet or even Hungary would have pro- 
voked little interest. In those earlier days there 
was no sense of threat to our way of life. Dis- 
tance lent a certain enchantment to our views on 
foreign policy, so much of which seemed remote 
and absorbed in the vastness of the oceans which 
then gave us protection in the development 
of this great country. In those days we de- 
pended on the military strength of the European 
powers, which provided a sort of police protection 
and enabled us to remain aloof. After 1812 there 
was never a serious threat of invasion. We were 
largely occupied with domestic problems and not 
ambitious to be a great world power. Even dur- 
ing two world wars in which we reluctantly par- 
ticipated there was little or no fear that this coim- 
try would be invaded or directly attacked. Our 
situation at home was solid and impregnable. 

Factors Shaping Soviet Policy 

Now if that was our own situation, in the liglit 
of tlie competitive position we now occupy in the 
world it might be profitable to make a rough 
comparison with the development of our princi- 
pal rival. Quite apart from the Communist revo- 
lution of 1917, the histoiy of Russia is replete 



^ Address made before the Institute of World Affairs 
at New York, X.Y., on Oct. 20 (press release 738). 



with periodic invasions of its territory and the 
grim tragedy of war in its homeland. It has not 
enjoyed the protection of the oceans, but, situated 
as it is in the midst of the Eurasian land mass, 
it has been exposed to the incursions of the Gen- 
gliis Khans from the east and the Napoleons and 
the Hitlers from the west. Its vast stretches of 
territory, to be sure, gave some form of relative 
protection but imposed quite a different security 
problem from our own. During the last world 
war there were many millions of casualties and 
immeasurable destruction. 

The reason I refer to this historical difference 
between the two countries is that I consider it f mi- 
damental in East-West relations today. The 
impact on the Russian mentality of these histori- 
cal experiences has its reflection in the attitudes 
of their leaders to questions having to do with 
war and peace. This is quite separate from, and 
yet it is intertwined with, all Soviet Communist 
Party ideological matters and Communist plans 
for world domination. The mass of the Russian 
population may not share the party's enthusiasms 
for the promotion of communism, but it is acutely 
and instinctively aware of conditions which relate 
to Russian security. Thus what faces this coun- 
try of ours is a difficult combination of an intense 
Russian popular and patriotic desire for national 
security coupled with an exploitation of this 
understandable yearning by a comparatively 
small but implacable Communist Party leader- 
ship seeking to foist their brand of socialism not 
only on the Russian people themselves but on the 
world at large, including the United States. 

It was at least partly this desire for security in 
depth which motivated the Soviet Union, in vio- 
lation of its pledges to the West, to fasten on to 
the large area in eastern Europe which its 



November 9, 7959 



659 



armies — supported by our own forces — overran at 
the end of World AVar II. The ideological or 
Communist motive was incidental or purely sec- 
ondary. It is true that Communist doctrine 
teaches that, wliile capitalist states remain in 
existence, the Soviet Union as the homeland of 
communism can never be really secure. But 
party leaders are aided in promoting this doctrine 
among the Russian people because of the liistori- 
cal reasons to which I have just alluded. Other- 
wise it would be most difficult for the Kussian 
people to believe, as the Soviet radio and press 
have so often told them, that capitalist American 
warmongers are poised for the attack and that our 
intentions are hostile and warlike. This histori- 
cal conditioning has provided a readymade ele- 
ment of solidarity, enabling the party leadership 
to put over an ambitious new 7-year plan for 
heavy industry — and to some extent consumer 
goods — a huge military establishment on the land, 
a costly submarine fleet, an expensive interconti- 
nental ballistic missile program, and a satellite 
program. 

Mr. Khrushchev seems to be so enthusiastic 
about the potential of the satellite program that 
everything else, even intercontinental missiles, be- 
gins in his active imagination to be old-fashioned. 
This extraordinarily able Soviet leader seems de- 
termined to pull the Russian peasant right up by 
his bootstraps directly into outer space. Perhaps 
Ivan at the moment would settle for an extra suit 
and a pair of shoes in addition to his boots — as 
mentioned by Mr. Khrushchev the other day in 
traveling from Vladivostok — with a little better 
assortment of groceries for Ivan's wife. I noted 
one Russian comment out of Moscow by a worker 
who said he really did not need a TU-114, as he 
managed very well riding on the trolley car, but 
he would like some consumer goods for himself 
and his family and he would like them cheaper 
and of better quality. 

Xow this is very good and healthy. It provides 
the Soviet leadership with increasing problems. 
In their soaring ambition to surpass the United 
States, to dominate not only the world but outer 
space, the party leadership has neglected the daily 
needs of their subjects to a degree which our 
people could not even imagine. As the Russian 
people become more sophisticated and aware of 
the standards of living prevailing among "capi- 
talistic slaves," their pressures on tlie leadership 
will, I believe, become unavoidable. "VVliatever 



the political system, fundamental laws of eco- 
nomics apply and available man-hours can pro- 
duce just so many things. I have no doubt that 
the Russian people want peace just as American 
citizens desire it. The only conflicts between the 
two nations are artificially created. 

That is why our Government has promoted a 
program of exchange of persons on a reciprocal 
basis in the fields of science, culture, and industry. 
Sometimes that progi-am is criticized for different 
reasons: that it is inadequate and very tardy; 
that we are opening our society to subversive in- 
fluences and in effect doing business with the Devil ; 
that the exchanges are unfair because of state con- 
trol in the Soviet Union as compared to our open 
system and in view of the susceptibility of our 
hospitable people. It is true that, apart from the 
exchanges which are agreed on a reciprocal basis, 
there is practically no private travel by Russian 
citizens to the United States, whereas many thou- 
sands of American tourists are visiting the Soviet 
Union. But if we waited for the perfect ar- 
rangement it would probably never happen. 

It is our opinion that the present agreement 
which is now under negotiation for renewal for 
an additional 2-year period is achieving mutually 
interesting results. It is too early to say whetlier 
the advantage is greater on one side than on the 
other. Perhaps in the field of the performing 
arts the financial advantage is on the Soviet side. 
Their performances, as is the case of the ballet 
and the folk dances, have earned far more dollars 
for them than the rvibles earned by our performers 
and orchestras. Politically and psychologically 
I believe the program is mutually advantageous 
and could have profound effects favorable to peace 
over the longer term. 

Peiping-Moscow Relationship 

There is another factor of considerable interest 
to us in our contemplation of the international 
scene. It is the Peiping-Moscow rclationshi]i. a 
major feature of our present-day world. During 
Chairman Khrushchev's recent visit we gained 
perhaps some slight additional insight into the 
nature of that relationship, many features of 
which are obscure. It is an intriguing question 
as to how long a close fraternal relationship can 
endure. Allegiance to Marxism-I-K^ninism, of 
course, and the common experience of postrevolu- 
tionary problems form a tie between the Soviet 



660 



Department of State Bulletin 



leadership and their extreme doctrinaire counter- 
parts in Peiping. But we may well ask ourselves 
if in the long run this is enough to overcome so 
many conflicts of a historical and social nature, 
conflicts of culture and custom and antipathies 
inherent in the makeup of the Chinese and Russian 
leaders and people. The Chinese Communist sei- 
zure of power is later in time than the Russian, 
and the spirit and immediate ambitions of the rad- 
ical brand of Chinese doctrine and chauvinism per- 
haps do not always synchronize with the current 
aspirations of the Soviet leadership. This seemed 
apparent in Russian disapproval of Mao's [Mao 
Tse-tung, Chairman of the Central Committee and 
Politburo of the Chinese Communist Party] in- 
sistence on adoption of the brutal commune sys- 
tem, with its disregard of human values. The 
Soviet Union had long since discarded the theory 
as unworkable. The drain on Russian resources 
required by the vast and insatiable demands of the 
backward Chinese economy, its himgry millions, 
and Chinese ambitious expansionism undoubtedly 
provide food for thought in high Soviet councils. 
Communist China is not a satellite but a near 
equal, able to dream, with its potential for the 
future, of exercising a certain hegemony in the 
Eurasian land mass, not tomorrow certainly but 
some day. 

In the past we have had reason to link Moscow 
and Peiping in aggressive moves in Korea and 
Quemoy and Matsu. Xo doubt Ho Chi Minh con- 
sulted the Moscow leadership as well as Peiping 
before the Viet ilinh launched the guerrilla at- 
tacks in northern Laos. But are the Russians en- 
tirely comfortable with these Chinese adventures 
in aggressive warfare if they believe one of them 
might be the spark of a much larger conflagra- 
tion? There is no doubt that publicly Mr. 
Khrushchev feels obliged to support Red China, 
no matter how outrageous its conduct might be in 
Tibet. I would question that privately he would 
be happy over the world eifect of this adventure 
in brutality or its impact on Indian public opinion. 

It is not always certain that Russian aspirations 
coincide with Chinese ambitions and methods. 
Some day this might become a most imeasy part- 
nersliip. However, this day seems far in the fu- 
ture, and in the present in which we must operate 
there is little doubt but that both Moscow and 
Peiping regard the continuation of their close alli- 
ance as being of overriding importance. Peiping 



in particular would be hard pressed to do without 
the critical economic and military assistance it 
receives from the Soviet Union. In turn this is 
a drain on the Soviet economy which delays the 
day when the Soviet jieople may achieve a better 
standard of living. As an indication of its dedi- 
cation to its alliance with the U.S.S.R., the Pei- 
ping regime publicly accepts the hitter's leader- 
ship over the world Communist movement. 

Impact of Disarmament on U.S.-Soviet Relations 

One area where better understanding between 
the U.S. and the U.S.S.R. could have a substan- 
tial impact is that of disarmament. We are all 
aware of the proposal made by Chaii'man Khrush- 
chev in his speech to the General Assembly of the 
United Nations for complete and total disarma- 
ment.- Huge armaments are usually built either 
for aggressive purpose or for self-defense against 
such purpose, real or imaginary. There is usually 
a desire to dominate somebody else's territory or 
a deep fear and suspicion of attack. Certainly 
the United States gave proof of our peaceful in- 
tentions after World War II by achieving almost 
total disarmament in this country. This impru- 
dent though idealistic action had wide popular 
support. But for our pains we were exposed to 
the blockade of Berlin and hostilities in Korea. 
We discovered that the Soviet bloc had not wasted 
a day nor spared expense in building a vast mili- 
tary apparatus. Every German rocket expert 
they could lay their hands on was recruited in the 
development of a missile and satellite program, 
and this plus other factors put their technology in 
some respects ahead of ours. 

It is well to remember this historical develop- 
ment in assessing Chairman Khrushchev's broad 
and sweeping proposals, which are receiving very 
careful study by our Government. These pro- 
posals point to the fact that disarmament measures 
must be undertaken in a balanced way, fair to both 
sides, and that they must be subject at every stage 
to effective international control. 

But there is a further aspect to total disarma- 
ment of gi-eat importance. This is the answer to 
the question : If nations give up their arms, who 
keeps the peace? Private citizens in organized 
communities have given up their firearms because 
they have an armed police which keeps the peace. 
As our able Ambassador to the United Nations, 



' For text, see U.N. doc. A/PV. 799. 



November 9, 7959 



661 



Henry Cabot Lodge, said recently,' "If all nations 
lay down their arms, there must be institutions to 
preserve international peace and security and pro- 
mote the rule of law." 

In this connection we are seeking in the United 
Nations to determine what type of international 
police force should be established to preserve in- 
ternational peace and security ; what principles of 
international law should govern the use of such a 
force; and, finally, what internal security forces, 
in precise terms, would be required by nations of 
the world if existing armaments are abolished. 

We yield to no one in our eagerness to achieve 
disarmament, which we Imow is generally desired 
by peoples everywhere. Our President said the 
other day at Abilene * that no other aspiration 
dominates him as much as that the nations of East 
and West will find dependable, self-guaranteeing 
methods to reduce the vast and essentially waste- 
ful expenditures for armaments. He earnestly 
wishes to devote at least some of the funds now 
spent for arms to improvement not only in our 
own living conditions but especially to the millions 
living in poverty in the underdeveloped countries 
of the world. 

What is important is agreement with built-in 
safeguards, self-enforcing safeguards of inspec- 
tion and control. As Ambassador Lodge lias 
stated,^ in any disarmament program, whether it 
be 100 percent or 1 percent disarmament, adequate 
and timely inspection and control must be built 
into the system, so that both sides reduce their 
armaments in plain siglit of eacli other, every step 
of the way. That kind of program creates con- 
fidence; anything less creates fear and suspicion 
and increases the danger of war. As yet we do 
not know what inspection and control the Soviet 
Union would accept on its own proposal for com- 
plete disarmament. Neither the statement of 
Chairman Khruslichev nor the subsequent state- 
ment of Deputy Foreign Minister Kuznetsov en- 
lightened us on this vital point. Your Govern- 
ment is leaving no stone unturned to progress to- 
ward relief from the huge armaments burden. 

Other Areas of Negotiation With Soviet Union 

In a related field, as you know, we have had real 
negotiations aimed at agreement to stop tests of 



nuclear weapons.^ In fact these talks were first 
proposed by the United States. They have been 
in progress at Geneva since 1958. For the moment 
they are in recess, but later this month the United 
States, the United Kingdom, and the Soviet Union 
will again take up where they left off this sununer. 

Then, as you also know, the United States con- 
sidered with nine other powers at Geneva last 
November the question of safeguarding against 
surprise attack.^ Wliile these discussions did not 
accomplish their intended purpose, the frank ex- 
change of views will serve as a useful basis for 
future negotiations on this problem. 

As you undoubtedly know, too, the United 
States, the United Kingdom, France, and tlie 
Soviet Union have agreed on the establislmient of 
a 10-nation disarmament committee to resume gen- 
eral disarmament negotiations early next year.* 
This step has been warmly welcomed by the 82- 
member Disarmament Commission of the United 
Nations.® Finally, inside our own Government we 
are now conducting an intensive review of our 
basic disarmament policy " in anticipation of this 
Committee of Ten meeting scheduled to convene 
early in 1960. 

I have touched on the two subjects which seem 
to me of greatest significance to our world position 
today, i.e. East- West relations and disarmament. 
No doubt they occupy much of the tliought of tlie 
membership of tlie Institute of AVorld Ad'aii-s. 
They overshadow regional and country problems 
to a greater or lesser extent everywhere. They af- 
fect the basic purpose of American foreign policy, 
which is the promotion of the welfare and security 
of the American people. During the coming 
months I believe we shall witness a number of 
conferences and negotiations during the course of 
which it is not impossible that an improvement 
in East- West relations may develop. If that is 
true, then there is no reason to despair on the 
subject of disarmament. I would like to close on 
that note of relative, cautious optimism, convinced 
that these problems are not insoluble. 



" HuixKTiN of Nov. 2, 1950, p. 615. 
' find., p. 620. 
'Ibid., I). 615. 



° Ifor background, see ihid.. May 18, 1959, pp. 700 and 
704 ; .Tune S, 1959, p. 825 ; and Sept. 14, 1959, p. 374. 

' Ibid., Oct. 27, 1958, p. C48 ; Nov. 24, 1958, p. 815 ; Jan. 
5, 1959, p. 13 : and Feb. 2, 1959, p. 103. 

' Ibid., Sept. 2S, 1959, p. 4:58. 

° Ibid., p. 439. 

'"Ibid., Aug. 17, 1959. p. 237. 



662 



Department of Sfofe Bulletin 



Great-Power Cooperation in the United Nations 



hy Francis 0. Wilcox 

Assistant Secretary for International Organization Affairs ^ 



It is a great pleasure for me to meet with you 
here in this city of sunshine in order to Iielp cele- 
brate United Nations Day. Support for the 
United Nations is, as you know, fundamental to 
our country's approach to its international respon- 
sibilities and objectives. It is through the efl'orts 
of organizations such as the Greater Miami As- 
sociation for the United Nations and the other 
national organizations represented here that the 
message of the United Nations reaches the Ameri- 
can public. Their understanding of and their in- 
terest in the United Nations are essential. We 
in the Government are deeply appreciative of the 
splendid work your organizations are doing to 
help achieve this end. 

The Khrushchev Visit 

Tliis year the opening of the United Nations 
General Assembly coincided with the visit of 
Chairman Khrushchev to this country,^ as the 
first part of an exchange of visits between Presi- 
dent Eisenhower and the Soviet leader. 

The decision to invite the leader of the Com- 
munist world to the United States was made in 
the hope that this might promote some under- 
standing, ease world tensions, and perhaps lay 
the groundworlv for new and more productive 
efforts in the cause of peace. From the begimiing 



' Address mnde before the Greater Miami Association 
for the United Nations at Miami Beach, Fla., on Oct. 
18 (press release 7.32). 

^ Nilvita S. Khrushchev, Chairman of the Council of 
Ministers of the U.S.S.R., visited the United States Sept. 
15-27. For .statements made at the time of his arrival, 
see Bulletin of Oct. 5, 1959, p. 476 ; for text of the com- 
munique released following his talks with President Eisen- 
hower at Camp David, see ibid., Oct. 12, 1959, p. -199. 



it was stressed that we could not e.xpect that the 
major issues between the Soviet Union and our- 
selves would thereby be resolved. 

There is no need for me to rehearse the chronol- 
ogy of Mr. Khrushchev's visit, in whicli he 
traveled the length of the land, inspecting our 
industry, conferring with our leaders, and judging 
at first hand the temper of our people. It was a 
full 2 weeks for all of us, and particularly for 
those like Ambassador Lodge who accompanied 
the tireless Soviet leader on his tour. 

Now that he has come and gone it may be useful 
to assess the effect of his visit, to estimate its ad- 
vantages and disadvantages from the standpoint 
of the aims of our foreign policy in the promotion 
of world peace. 

One thing is quite clear. We would all agree 
that Mr. Ivlirushchev might not deserve a very 
good mark in a course in American history. But 
it has been a helpful and sobering experience for 
all of us to see, at first hand, this shrewd and re- 
doubtable opponent in action. 

Obviously one immediate gain, which flowed 
from the talks at Camp David between President 
Eisenhower and Chairman Khrushchev, was the 
agreement that the negotiations on Germany and 
Berlin should not and must not be conducted under 
a threat or ultimatum. The implied Soviet threat 
to Berlin, it appears, has largely been removed, 
and negotiations on Germany and Berlin can be 
resumed, provided our allies agree. 

I believe the visit of Mr. Khrushchev was fruit- 
ful in other ways which are less clear but in the 
long run may be no less important. No one can 
measure exactly the effect upon the Soviet leader 
of seeing the great industrial and agricultural po- 
tential of the United States, of viewing at firet 



Hoy^mh^r 9, 1959 



663 



hand how our people really live, their support of 
our form of government, and their keen desire for 
peace. No one can calculate the effects of those 
experiences upon a man trained in a doctrine alien 
to ours and conditioned to think of us in the dis- 
torted terms of Soviet propaganda. 

Moreover some statements of Chairman Khru- 
shchev appear to reflect a new understanding of 
this country. He has told the Soviet people that 
President Eisenhower earnestly desires peace and 
that this Government has the support of the great 
majority of the American people. Moreover he 
did not talk about burying us ; instead he urged us 
to keep our system and let him keep his. He even 
declared that "the slaves of capitalism live very 
well," and both here and in the Soviet Union he 
praised the accomplishments of American indus- 
try and agriculture. 

Let us not underestimate the effect of these state- 
ments upon a people which for years has heard 
from their leadership little but odious comparisons 
and misrepresentations concerning the United 
States. In this regard the fact that the Soviet 
Government has, even if temporarily, reduced its 
jamming of the Voice of America in the Soviet 
Union is a welcome development. 

I believe that what Mr. Khrushchev has learned 
about the United States during his visit here may 
have lessened the danger that he will misjudge 
the deep attachment which we have to our way of 
life. In this nuclear age there is grave peril in 
the possibility that one side will misinterpret the 
will of the other to defend itself or its interests, 
that it will miscalculate the reactions of the other 
side and take steps that might lead to an armed 
conflict. The danger of such a miscalculation is 
real, and the effects could be disastrous for all of us. 

I believe that our deep resolve to defend our 
liberty and to honor our international commit- 
ments was brought home to Mr. Khrushchev in a 
direct way and that he is less likely to make a fatal 
mistake in the direction of Soviet policy. How- 
ever, we cannot expect a broad understanding of 
this kind to come about quickly. It can only pro- 
ceed from sustained contact at all levels. It could 
never, however, be achieved by the system of quar- 
antine in which we previously found ourselves. 

We are hopeful that a very modest beginning has 
been made. We are left with the practical question 
as to how far tills begimiing will lead us. Another 
of the hopeful signs, therefore, to emerge from 
Mr. Khi-ushchev's visit is the prospect of renewed 



discussions and negotiations at various levels on 
such issues as Berlin, disarmament, trade, cultural 
exchange, and the peaceful uses of atomic energy. 
The conduct of negotiations seems less likely to be 
interrupted by major violence than would be an 
armed truce of silence. 

In any event it appears that we have gained the 
opportunity for further discussions of outstandmg 
differences. What results, if any, these discussions 
will bring, I cannot say. If the Soviets are sin- 
cere in their desire to relax tensions, as they claim, 
we will present them every opportunity for doing 
so, as we have in the past. However, we must 
see deeds on their part — not just words — before we 
can realistically assess whether Mr. Khrushchev 
has simply been seeking to lull us into a false sense 
of tranquillity, knowing how much we welcome 
better relations witli the Soviet Union, or whether 
he truly means to improve the international atmos- 
phere by meaningful agreements to ease and elimi- 
nate present troublesome problems. 

Of one thing, however, we can be sure. Mr. 
Khrushchev sincerely believes in his system. He 
is dedicated to the goal of surpassing the United 
States. His view is that our system and com- 
munism remain essentially competitive. We cer- 
tainly cannot let down our guard as the result of a 
2-week trip. We must never forget that Com- 
munist doctrine still has world domination as its 
goal. But we will continue to seek agreements with 
the Soviet Union which will reduce present ten- 
sions while maintaining free-world security. 

Peaceful Settlement of Disputes 

There is one further point that may be very im- 
portant. Recently Mr. Khrushchev has made 
statements subscribing to the thesis that threats 
and force should not be used to settle differences 
between nations. This point was highlighted in 
the joint communique at Camp David, in which 
President Eisenhower and Chairman Khrushchev 
agreed that "all outstanding international ques- 
tions should be settled not by the application of 
force but by peaceful means through negotiations." 

While such statements have been made before, 
this recent expression coidd be a significant de- 
velopment. But just as interesting perhaps are 
tlie speeches Mr. Khrushchev made during the 10th 
anniversary celebration of the Chinese Connnunist 
regime. In three major addresses he coimseled 
against the use of force, repeating many of the 



664 



Department of State Bulletin 



peace and disarmament themes he had used in this 
country. 

Is it possible that the Chinese Communists will 
accept Mr. Khrushchev's sound advice? If their 
recent record of aggressive acts — including Tibet, 
Taiwan, and the Indian border areas — is anj- indi- 
cation, we cannot afford to be very optimistic on 
this score. We can continue to hope, however, 
inasmuch as the Communist Chinese have recog- 
nized Mr. Khrushchev as the leader of the inter- 
national Communist movement, that they will 
eventually accept the principle that differences 
should be settled by negotiation and not by force — 
a principle to which Mr. Khrushchev has publicly 
subscribed. 

The U.S.S.R. and the U.N. 

With this background in mind I would like to 
turn to some of the problems now pending before 
the United Nations. The rollcall of important 
political issuas is an impressive one — disarma- 
ment, outer space, Tibet, Hungary, Laos, the U.N. 
Emergency Force — to mention only a few. It oc- 
curs to me that the Soviet Union has a very good 
opportunity to demonstrate, in connection with 
many of these issues, that it is really interested in 
working for world peace. 

Fourteen years ago the U.N. was created with 
the hope that the great powers would work to- 
gether to win the peace as they had cooperated 
to win the war. But the cold war soon set in, and 
the cleavage between the Communist and the free 
world became wider and deeper. At that time our 
people believed tliat a strong United Nations, but- 
tressed by great-power cooperation, constituted 
the best possible guarantee for world peace. We 
still believe so. And we liave done what we could 
over the years to strengthen the United Nations 
in its eternal quest for peace. 

Meanwiiile the Soviet Union, prompted by mo- 
tives of its own, moved in the opposite direction. 
They apparently did not want a strong United 
Nations. As a part of their goal of winning the 
world to conununism, they decided that a weak 
world organization would serve their interest bet- 
ter. Their memberslrip was obviously a marriage 
of convenience. 

So far as tlie United States is concerned, we 
would welcome genuine Soviet support for the 
United Nations Charter. I hasten to add that 
we should not expect any miracles in New York 



as a result of Mr. Khrushchev's visit. Even so, 
there are a number of things the Soviets could do 
to ease tensions and to make the United Nations a 
more effective instrumentality for peace if they 
cliose to do so. 

The Problem of Disarmament 

In the lirst place they could accept a workable 
system of international inspection and controls 
and thus make possible a break in the disarma- 
ment deadlock. Disarmament is without doubt 
the most important single problem facing the 
world today. And time after time during these 
last 14 years our discussions have bogged down 
largely over the kind of inspection system that 
would be both practical and effective. 

So far as the United States is concerned, we re- 
main ready and willing to negotiate effective dis- 
armament agreements. We are quite 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. 

But we do not believe in mere paper promises. 
Wlien a nation moves toward disarmament, this 
is such a vital and important step that both sides 
are entitled to guarantees that the agreements 
entered into are not going to be violated. 

An Irishman once defined salt as " a white sub- 
stance that makes potatoes taste bad when you 
don't put any in." By the same token an adequate 
system of inspection and control is an absolutely 
indispensable element in any disarmament recipe. 

When Mr. Khrushchev spoke before the Gen- 
eral Assembly a few weeks ago, he called for what 
he termed "general and complete disarmament." ^ 
By this he apparently meant the elimination of all 
armaments and all armed forces by all govern- 
ments, except for those anns and forces needed to 
maintain internal order. To reach this goal he set 
forth various phases of a disarmament program 
which, over a period of 4 years, would result in his 
final objective — complete disarmament. This, in 
substance, was what Mr. Khrushchev had in mind 
and what he characterized as a radical new ap- 
proach to this vital problem. 

I would not want to detract from the importance 
of Mr. Khrushchev's statement, which even now is 
being given very careful study. It is only fair to 



' For text, see U.N. doc. A/PV. 799. 



November 9, 1959 



665 



point out, however, that we and our allies have 
frequently offered comprehensive disarmament 
proposals to the Soviet Union in the past, includ- 
ing various phases for their implementation. 
Unfortunately, up to now at least, agreement with 
the Soviet Union has not been forthcoming. 

In this connection I would like to make one 
point quite clear. The United States is willing to 
go as far as other nations will go toward complete 
disarmament, provided such disarmament is ac- 
companied by a satisfactory system of controls. 

Apart from the question of controls, Mr. 
Khrushchev's proposal for complete disarmament 
raises several important and complex problems. 
What armed forces will it be necessary for each 
state to retain so that internal order can be main- 
tained ? Presumably the answer to that question 
would involve a variety of considerations, includ- 
ing the size, geographical location, and terrain of 
the country, the size and character of the popula- 
tion, and the degree of political and economic 
stability it has developed. 

Just as important is the essential link between 
complete disarmament and an international police 
force strong enough to keep the peace. Sovereign 
states will not be willing to put their guns on the 
table unless they can find security from external 
attack from other sources. True, from a purely 
humane point of view, it would be a great step 
forward if we could avoid the mass destruction of 
civilian populations. But disarmed nations could 
still fight with bows and arrows or even cornstalks, 
and probably would do so unless they are re- 
strained by the presence of an international police 
force. 

In presenting his proposal to the United Nations 
Mr. Khrushchev predicated it on the fact that the 
distrust which has developed among the nations 
has resulted in increases in armaments; these in 
turn develop international tensions. Now the 
solution he offered was to eliminate armaments and 
thereby eliminate world tensions. One might ask 
whether it would be more logical to approach the 
question of disarmament by first examining the 
problem of developing a feeling of trust among 
the nations of the world. 

This is a riddle which is almost as difficult as 
the riddle of the hen and the egg. I do not pre- 
tend to liave the answer. But I am convinced 
that, if we could reach agreement on some dis- 
armament controls, this might help develop the 



necessary confidence and trust to enable us to 
move forward. 

Meanwhile, we have made some progress in two 
important respects. 

First of all, the talks relating to the cessation 
of nuclear weapons tests will be resumed in Geneva 
on October 27. It is our hope that we can reach 
agreement with the Soviet Union on the inspec- 
tion and control system necessary to insure that 
violations of the treaty would be detected. If 
that can be done, we can move ahead witli a treaty 
on the cessation of nuclear tests and thus give real 
impetus to further progress in the field of 
disarmament. 

Secondly, we recently reached agreement on a 
new forum for disarmament negotiation. A new 
committee has been established outside the United 
Nations consisting of five representatives from the 
Western states and five Soviet bloc members.* 
This group will begin its discussions in Geneva 
early next year. 

All of you know how persistently we have tried 
to engage in fruitful disarmament negotiations 
with the Soviet Union in the United Nations. 
These efforts have not been successful. We have 
decided that we cannot and must not allow a 
matter as basic to the survival of our civilization 
as our disarmament efforts are to collapse because 
of procedural difficulties. 

On the assumption that no stone should be left 
unturned which might bring some progress, we 
agreed to the creation of this new committee. 
There is not the slightest intention on our part to 
bypass the United Nations. We recognize fully 
that ultimate responsibility for disarmament con- 
tinues to rest with the United Nations. And we 
sincerely hope that results achieved by the new 
committee will provide a useful basis for the re- 
newed consideration of disarmament in that 
Organization.^ 

Outer Space 

A second area where the Soviet Union could use 
its influence to lessen world tensions and 
strengthen the United Nations lies in the realm 
of outer space. 



' For linckfjtround, see Hui.letin of Sept. 28, 1050, p. 438. 

"For n statement on the question of disarmament made 
by AmI);issailor Henr.v Cabot Lodfje in C'nimnittee I on 
Oct. 14, see ibid., Nov. 2, 10.->0, p. 01.'>. 



666 



Department of State Bulletin 



The United States has called for an interna- 
tional approach to this important question. We 
were the prime movei-s back of the establishment 
of a United Nations Committee on Outer Soace." 
We soujrht to have the United Nations take the 
lead in cooperative international efforts. Surely 
a United Nations program in the peaceful uses of 
outer space, in which many members, small and 
large, participate, can help insui-e that national 
rivalries will not be projected into the universe 
■whicli surrounds us. 

But the Soviet response has been to boycott the 
United Nations committee — a committee which 
they insist be made up of states half on their side 
and half on the free-world side. AVe reject this 
undesirable concept of parity, as did the General 
Assembly last year. Such U.N. committees, we 
feel strongly, should reasonably reflect the makeup 
of the General Assembly of 82 members. The 
world is made up of many nations; it is diverse, 
and it is this diversity which characterizes the 
United Nations. 

There is no questioning the fact that the So- 
viets, in view of recent accomplishments m pene- 
trating outer space, could make a very helpful con- 
tribution to the work of the United Nations. 
Clearly they cannot argue a lack of teclinology, as 
they did some years ago when they refused to co- 
operate in the development of atomic energy. 

Recently Mr. [V. V.] Kuznetsov, head of the So- 
viet delegation, proposed a United Nations con- 
ference to exchange experience in the exploration 
of outer space. We welcome this proposal.' If 
this indicates an interest on the part of the Soviet 
Union to participate in the future in the United 
Nations efforts to further cooperation iji the peace- 
ful uses of outer space, this could be a change for 
the better. International conferences under U.N. 
auspices which provide an opportunity to ex- 
change experience in the exploration of outer 
space are illustrative of the many useful things 
which might be achieved through cooperative ac- 
tion. Our own scientists have shown considerable 
interest in such conferences, since they and the 



° For background and text of a resolution adopted by 
the General Assembly on Dec. 13, 1958, see ibid., Jan. 5, 
1959, p. 24. For U.S. statements made In the Ad Boc Com- 
mittee on Peaceful Uses of Outer Space, see ibid., June 15, 
1959, p. 883; June 29, 19.59, p. 972; and July 27, 19.59, 
p. 138. 

'For a .statement by Ambassador Lodge, see ibid., Nov. 
2, 1959, p. 651. 



United States Government agree that a maximum 
exchange of data is necessary if mankind is to 
benefit fully from the results of exploration of 
outer si>ace. 

For our part we will continue to give our solid 
support to the United Nations and the work of 
the Outer Space Committee in this field. We hope 
the Soviets grasp the opportunity this Assembly 
affords them to do the same. 

Laos 

The situation in Laos is still another example 
where the Soviet attitude could be helpful in eas- 
ing tensions. Duiing the recent past it has been 
clear that the Communist bloc has taken actions 
designed to undermine the freedom and independ- 
ence of Laos. There has been active support of 
Communist rebel forces within Laos from Com- 
munist north Viet-Nam. There has been Commu- 
nist propaganda emanating simultaneously from 
Hanoi, Peiping, and Moscow aimed at confusing 
world opinion. And the fact that the military 
outbreak in Laos last August followed conferences 
in Moscow and Peiping between Soviet, Chinese 
Communist, and Viet Minh leaders is added evi- 
dence of the Soviet activity in this matter. 

In these circumstances, with its freedom and in- 
dependence threatened, Laos appealed to the 
United Nations for help. The Security Council 
subcommittee of Argentina, Italy, Japan, and Tu- 
nisia has been in Laos for the past month looking 
into the f acts.^ Its presence there has had a quiet- 
ing effect — at least for the moment — on Laos. For 
the time being, fighting has abated, and the imme- 
diate threat to Laotian independence has been 
reduced. 

The Soviets vigorously opposed the United Na- 
tions' taking any action with respect to Laos. 
Their solution was the reconvening of an inter- 
national control commission whose mission the 
Lao Government regarded as having been ful- 
filled. The Soviets have also sought to divert ef- 
fective United Nations action by calling for a con- 
ference.* The Lao Government rejected this idea, 
preferring instead to appeal to the United Na- 
tions, where justice could be assured. 

Laos, like every free nation, seeks to control its 
own destiny. Since the United Nations has al- 
ready taken appropriate action, there is no need 



' For background, see ibid.. Sept. 28, 1959, p. 456. 
'For a Department statement on U.S. rejection of the 
Soviet proposal, see ibid., Oct. 5, 1959, p. 475. 



November 9, 1959 



667 



for a conference which would be disruptive and 
which would ignoi'e the autliority of the United 
Nations. 

The presence of the Security Council subcom- 
mittee has been a short-range measure. Now we 
await the report of that group with considerable 
interest. Once the report is available, the United 
Nations will want to consider what further meas- 
ures it should take to assure a continuation of its 
tranquilizing influence in Laos. We hope the So- 
viet Union will cooperate in the United Nations to 
help maintain the peace there. 

Tibet 

The Soviet Union could also be helpful, if it 
would, in connection with the Tibetan situation 
which is now before the United Nations. Every 
civilized person has been shocked by the terrible 
atrocities committed against the Tibetan people. 
As you know, the Dalai Lama, forced to flee his 
country, has appealed to the United Nations to 
consider the tragedy of his people. He told the 
tragic story of Chinese Communist persecution, 
forced labor, deportations, and executions, will- 
fully and wantonly carried to such an extent as to 
threaten the very survival of the Tibetan people. 
The International Commission of Jurists, a repu- 
table group of international lawyers, has presented 
a preliminary report showing that the Chinese 
Communists committed acts violating the Geno- 
cide Convention of 1948. 

We welcomed the fact that Ireland and Malaya 
requested discussion of the Tibetan question and 
that the General Assembly decided to consider tlais 
grave issue. Admittedly it is difficult for tlie 
United Nations to render direct help to the op- 
pressed people of this far-off and inaccessible cor- 
ner of the world. It is our hope, nevertheless, 
that an airing of the Tibetan case before the Gen- 
eral Assembly will bring the full weight of pub- 
lic opinion to bear on this flagrant violation of 
fundamental human rights. 

And what has been the Soviet response to the 
denial of human rights of the Tibetan people? 
Mr. Kuznetsov's response was a harsh and bitter 
accusation against the United States that we wei-e 
launching a campaign to impede better relations 
between states and to poison the atmosphere in the 
United Nations. 

In brief Mr. Kuznetsov's argimient amounts to 
this: We must ignore the crimes committed in 
Tibet or else be accused of promoting the cold war. 



Or, to put it another way, whenever we raise im- 
portant issues the Soviet Union does not like, we 
are accused of engaging in cold-war tactics. Is 
it those who seek to have the United Nations dis- 
cuss such crimes that promote the cold war? Or 
is it those who commit and condone such crimes 
that are responsible ? 

If the United Nations were to turn its face 
away from the gross denial of human riglits in 
Tibet, it would be ignoring one of its f imdamental 
responsibilities under the charter. 

For its part, the United States will support the 
charter of the United Nations. We cannot stand 
idly by while the Communists try to destroy the 
Tibetan race, its religion, and its culture. We 
hope that world opinion as expressed in the 
Assembly will help in some appropriate way to 
keep alive the courageous efforts of the Tibetan 
people to maintain their way of life. 

Hungary 

When one speaks of Tibet, one caimot help but 
recall Hungary. 

This Assembly is expected once again to con- 
sider the situation in that unhappy country. Its 
consideration will remind people everywhere of 
the world community's continuing concern over 
Soviet actions there and its maintenance by force 
of a puppet regime. 

This regime has thus far consistently refused 
to permit the United Nations Special Representa- 
tive for Hungary, Sir Leslie Munro, to enter the 
country to investigate the Hungarian situation 
firsthand. Sir Leslie is expected to report on liis 
recent efforts during this General Assembly. 

The continued, deliberate defiance by Hungary 
of the United Nations augurs ill for our con- 
tinuing efforts to achieve international peace and 
security. 

UNEF 

Soviet support of the United Nations Emer- 
gency Force in the Middle East would be yet 
another way to improve relations in the world. 

You will recall that this force of over 5,000 
soldiers from 7 coimtries patrols the armistice 
demarcation lines between the United Arab Re- 
public and Israel. Since 1956 it has supervised 
the cessation of hostilities over the Suez Canal. 
It is a remarkable demonstration of international 
cooperation to keep the peace. 

The United Nations members are assessed for 



668 



Department of State Bulletin 



its expenses. The Soviet Union, I regret to say, 
in contradiction to its often repeated desire for 
the maintenance of peace in the Middle East, has 
steadfastly refused to pay its share. Just a few 
days after Mr. Khrushchev left this country, the 
Soviet Union clearly reeniphasized its rigid posi- 
tion in these words : 

The Soviet Union has not contrihutod a single kopec 
for the maintenance of the Emergency Force . . . and is 
not going to malie any expenditure for these ends in the 
future. 

As a result, very serious financial difficulties are 
posed for the Emergency Force and for the 
United Nations itself. For its part, the United 
States will continue to support UNEF because 
we firmly believe it continues to remain a major 
bulwark of peace in the Middle East. Its splen- 
did record has also strengthened our conviction 
that it would be desirable for the United Nations 
to take early steps to provide standby arrange- 
ments for a peace force ready to sen'e immediately 
in any part of the world. 

Economic and Social Work 

Before concluding may I say just a few words 
about the economic and social work of the United 
Nations. Obviously the most important task of the 
United Nations is to do what it can to prevent 
nuclear war. But peace, if it is to be an enduring 
peace, means far more than the mere absence of 
conflict. It means positive cooperation in the 
economic and social fields so that the basic causes of 
war will ultimately disappear. 

That is why I attach so much importance to the 
economic and social activity of the United Nations. 
That is why we support to the hilt the work of the 
specialized agencies in their persistent fight against 
hunger, disease, poverty, and ignorance. 

You know the story well. Today, in the under- 
developed areas of the world, well over a billion 
people are striving to establish or maintain ways 
of life which successfully combine economic 
progi'ess with human liberty. In many countries 
the average per capita annual income is less than 
$100. If these nations are to retain their inde- 
pendence and to improve their standards of life, 
they need help and they need it badly. 

Here again the Soviet Union has a genuine op- 
portunity for helpful action within the framework 
of the United Nations. By adopting a more con- 
structive approach and by increasing its contribu- 

November 9, 1959 



tions to various United Nations programs, it could 
help enonnously in expanding the economic and 
social work of that Organization. 

In this connection let me recall the terrible cost 
of world armament expenditures and the great op- 
portunity for economic and social progress if this 
burden could be lifted from our shoulders. During 
the next decade the nations of the world may well 
spend in excess of $1,000 billion on armaments. 
What could we not accomplish if some of these ex- 
penditures could be used for more constructive 
purposes ? 

On our part we have told the world that, when 
sufficient progress has been made toward controlled 
disarmament, our Government stands ready to ask 
its people to join with others in devoting a good 
portion of tlie savings from such disarmament to a 
nmltilateral development fund. Somehow the na- 
tions of the world must find a way to divert their 
expenditures from arms to economic and social 
development — their own and that of their less de- 
veloped neighbors. 

Concluding Comments 

Time alone can tell whether Mr. Khrushchev's 
visit will have a constructive impact on world 
events. 

In any event the United Nations offers, at the 
moment, one possible proving ground of Soviet 
intentions. There are many steps the Soviets 
could take, if they chose to do so, to help relax ten- 
sions and make the United Nations a more effective 
mechanism for peace. 

They could stop their abuse of the veto in the 
Security Council. They could support the crea- 
tion of a United Nations peace force. They could 
talv-e part in United Nations programs for the 
peaceful uses of outer space. They could approve 
an effective system of inspection and control for 
disarmament. They could abide by the resolu- 
tions passed by the United Nations on Himgary. 

This, I admit, is a large order, and it would be 
foolish to assume that the Soviet Union is likely to 
move veiy far in this direction in the near future. 

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 frustrat- 
ing 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 



669 



1958, after extremely difficult negotiations, we suc- 
ceeded in concluding with them an exchange 
agreement. 

No one can doubt that the task ahead of us will 
be a long and tedious one. It will call for many 
years of detennined effort and sustained sacrifice 
on the part of the free peoples everywhere. 

In our negotiations with Soviet officials we 
should always remember that they are not an im- 
patient 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 content to bide their time, constantly testing 
and probing for soft spots. 

On our part, therefore, we must develop an in- 
finite amount of patience. Moreover, if we are 
to meet the Communist challenge, we must have at 
least as much firmness, pei-sistence, and determi- 
nation as the Soviets. If we will pursue tliis 
course, Soviet leaders, encouraged by world opin- 
ion, 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. 

Meanwhile some peo^Dle have been disturbed be- 
cause Mr. Khrushchev has challenged us to com- 
pete witli the Soviet Union in the production of 
worldly goods. I cannot understand why we in 
the United States need fear such competition. 
After all, competition is the lifeblood of the free- 
enterprise system. 

Nor should we be alarmed because the Russians 
want to eat filets mignons and drive convertibles. 
There is plenty on this planet for everybody if we 
can only learn to live together as reasonable men 
should. 

I think it is a mistake, however, to imply tliat in 
such competition one system will triumph over the 
other and destroy it. The fact is that there are 
not just two systems in the world ; there are many 
sy.stems. What we are striving for is the kind of 
freedom and independence in the world that will 
permit each nation to work out its own system in 
accordance with its own needs and its own desires. 

Although I am not afraid of friendly compe- 
tition, in the long run it is only international co- 
operation that can save mankind from destroying 
himself. At San Francisco in 1945 it was empha- 
sized time and time again that the United Nations, 
supported by the teamworlv of tlie great powere, 
constituted the best possible guarantee for peace. 
This great concept still embodies, in my opinion, 
mail's best hope for a better world. 



Commemoration of Anniversary 
of Hungarian Revolution 

Department Statement 

Press release 743 dated October 22 

Three years ago, on October 23, 1956, the Hun- 
garian people rose in a spontaneous and valiant 
effort to achieve their longstanding aspirations for 
a government which would be free from foreign 
domination and I'esponsive to their will. Tliis 
effort failed in the face of ruthless Soviet military 
intervention. Since then the Hungarian and So- 
viet Governments have continually defied world 
opinion by refusing to comply with the terms of 
resolutions on Himgary adopted by overwhelm- 
ing majorities in the United Nations General As- 
sembly. The American people, like all others 
throughout the world who are dedicated to the 
cause of liberty and national mtegritj', will today 
remember and honor the Hmigarian patriots who 
died in tliis struggle and those who, today, must 
live under a system which has been imposed upon 
them. It is due to their bravery that October 23 
shall live in history as the symbol of a people's 
sacrifice in the cause of independence and freedom. 



B-29 Case Removed From Calendar 
of International Court of Justice 

Defartment Statement 

Press release 748 dated October 23 

It has been learned by the Department of State 
that on October 10, 1959, the International Court 
of Justice ordered removed from the calendar of 
the Court the case brought by the United States 
against the Soviet Government on account of tlie 
destruction of a B-29 aircraft over Hokkaido, 
Japan, on November 7, 1954, in the course of 
which one crew member was killed. The facts 
have been stated in prior Department press re- 
leases (No. 631, November 8, 1954,^ No. 313, 
May 23, 1957,- and No. 491, July 7, 1959 =). 



' For text, together with texts of a U.S. note of Nov. 17, 
19.')4, and a Soviet note of Nov. 7, 1954, see Bitlletin 
of Nov. 29, 1954, p. 811. 

' For text, see ihid., .Tuly S, 19.", p. 08. 

' For text, together with text of U.S. application to 
the Intornntionul Court of .Tustice, see ihid., .July 27, 
1959, p. 122. 



670 



Department of State Bulletin 



Tlie United States had been informed on Sep- 
tember 3, 1959, that the Soviet Embassy in the 
Netherhinds liad informed the Court that the 
Soviet Government claimed that the B-29 in ques- 
tion had viohited the Soviet border and that the 
B-29 was the first to fire in the encomiter. For 
these reasons, the Soviet Govermnent stated, 

. . . tbe Government of the U.S.S.R. considers as before 
Uiat in tills case there are no questions which are in 
need to be solved by the International Court of Justice 
and does not see bases for the filing of this case with 
the Court. 

Tlie foregoing allegations of the Soviet Govern- 
ment are not accurate. The United States B-29 
never shot at tlie Soviet plane; it did not cross 
the Soviet border but was shot down over Japa- 
nese territory by Soviet planes which intruded 
into Japanese air space to do this. The U.S. 
Government was, and is, prepared to prove by evi- 
dence the truth of these statements. 

The United States regrets again that the Soviet 
Government continues to disregard the organ of 
the United Nations set up for the solution of 
disputes between governments as to facts or issues 
of law in international matters by the institutions 
of law and order. It cannot admit the propriety 
or the wisdom, therefore, of any policy which 
keeps the Court from hearing the disputes as to 
facts and law in matters as important as the one 
involved in this case. 

In the Soviet Government's response to the 
Court, to v.hich reference has been made, the 
Soviet Government also stated that the United 
States had ignored warnings by the Soviet Gov- 
ernment that the United States air forces should 
not direct planes ''toward the state borders of the 
U.S.S.R. and violate these borders." The alleged 
violation, of course, has been denied, and the 
Soviet Government refused to permit proof on 
this subject on either side to be placed before an 
impartial tribmial. 



U.S. and U.S.S.R. Show First Films 
Under Exchange Agreement 

Press release 741 dated October 21 

The Department of State announced on October 
21 that premieres of the first American and Soviet 
films to be shown under the U.S.S.R.-U.S.A. ex- 
change agreement will take place at Moscow and 
Washington, D.C., on November 10, 1959. 



American film stars Gary Cooper and Edward 
G. Robinson will attend the premiere in Moscow 
of the United Artists film "Marty." The producer 
of the film, Harold Hecht, and the film's director, 
Delbert Mann, will also be present. 

Simultaneously a group of motion-picture per- 
sonalities from the Soviet Union will come to 
Washington for the premiere on the same evening 
at tlie Metropolitan Theatre of the Soviet feature 
film "The Cranes Are Flying." 

These two premieres will mark the inaugura- 
tion of the showing of theatrical films under the 
terms of the cultural, technical, and educational 
agreement signed between the United States and 
the Union of Soviet Socialist Republics at Wash- 
ington on January 27, 1958.^ A number of Soviet 
and American Govermnent officials are expected to 
attend the premieres. 

Commenting on the exchange, Secretary Herter 
said : 

Our Government is pleased by the response of the 
American motion-picture industry in supporting the ef- 
forts to improve the climate of understanding between 
the peoples of the Soviet Union and the United States. 
The American film at its best has always demonstrated 
its capacity to reach across boundaries of culture, tradi- 
tion, and language and by so doing has helped to break 
down mistrusts and misunderstanding and thereby bring 
about a greater understanding among nations. The 
United States has always believed in and practiced the 
doctrine of free and full international communications. 
We therefore especially welcome the carrying out of this 
part of the film agreement, which makes it possible for 
American films to be shown in the Soviet Union on a regu- 
lar basis. 

Three of the leading officials of United Artists 
also will attend the Moscow premiere. They are 
Arthur B. Krim, president. United Artists, Rob- 
ert S. Benjamin, chairman of the board, and Ar- 
nold M. Picker, vice president in charge of foreign 
distribution. The Hollywood personalities at- 
tending the premiere will arrive in Moscow on 
November 9 and remain approximately 1 week. 

"Marty," which was one of 10 U.S. films pur- 
chased by the Soviet Union from the American 
film industry under the cultural agreement, will be 
the first American film shown in the U.S.S.R. in 
approximately 15 years. 



' For text, see Bulletin of Feb. 17, 19.">8, p. 243 ; for 
text of a memorandum of agreement on film exchanges, 
see ihid., Nov. 3, 19.58, p. C97. 



November 9, J 959 



671 



Food for Peace 



hy Don Paarlberg 

Special Assistant to the President ' 



It is a pleasure to present the first of a series of 
five discussions on the international age in agri- 
culture. The subject of this series seems to me 
particularly apjDropriate in scope and timing. 

My purpose in these remarks is to supply the 
basic logic which underlies agi'iculture's venture 
into the international age, a venture already well 
advanced and, on balance, rather successful. I 
shall attempt to state the case for our special 
export programs and for the export of American 
agricultural teclmology. It is my feeling that a 
good job has been done. While more might be 
done and some things perhaps better done, it is 
important to see the rightness of the direction that 
has been taken. I am more interested in putting 
a positive and confident face on agi-iculture's ven- 
ture into the international age than in attempting 
to rechart its course. 

It woidd be easy to prepai'e a paper painting 
in rosy hue the great attainments which agricul- 
ture might achieve in its international venture. 
It would also be easy to develop a paper which 
holds up to ridicule some of our xuiorthodox in- 
ternational activities. The difficult task, and the 
one I have undertaken, is to show the opportuni- 
ties without being carried away thereby and to 
show the hazards without constructing a rationale 
for inaction. 

In his special message to Congress on agricul- 
ture last January,^ the President of the United 
States liad in mind matters similar to those under 
review in this program. He said, 

I am setting steps in motion to explore anew with other 
surplus-producing nntions all practical means of utilizing 
the various agricultural surpluses of each In the interest 



'Address made at the graduate school of the U.S. De- 
partment of Agriculture at Washington, D.C., on Oct. 7 
(White House press release dated Oct. 8). 

= II. Doc. 59, SGth Cong., 1st se.ss. 



of reinforcing peace and the well-being of friendly peoples 
throughout the world — in short, using food for peace. 

Thus the President expressed his interest in the 
subject matter before us. 

Our generation, in the mid-20th century, is wit- 
ness to a conjunction of great, historic events: 

First, we see the reawakening of the imder- 
developed nations after many centuries of slumber. 

Second, we see efforts by both the East and the 
West to assist these countries in economic ad- 
vancement. 

Third, we see a breakthrough in agricultural 
technology. 

I shall elaborate briefly on each of these. 

Reawakening of Underdeveloped Nations 

First, the reawakening : 

In Asia, in tlie Middle East, in Africa, in Latin 
America, many peoples are making the exciting 
discovery that life can mean more for their chil- 
dren than it has meant for them. Thanks to 
modern travel and commiuiication, the people of 
many nations are learning that poverty, hunger, 
and misery are not the universal lot of mankind 
nor a burden that they need permanently to bear. i 
Awareness has been increased; aspirations have 
been raised; hopes have been kindled; promises 
have been made. This is an outstanding fact of 
the 20th century. It is a new dimension in our 
dealings with these people from this time forward. 

East-West Rivalry 

Our second overriding historic event at this 
mid-century point is the groat issue between tlie 
East and the West. This is a complication of 
incalculable significance. 

Not simply do the people in the less developed 
countries aspire to economic advancement; also 



672 



Department of State Bulletin 



there is intense and growing rivalry between the 
free world and tlio Communist bloc in assisting 
these people to attain the goals to which they 
aspire and, in the case of the Commmiist effort, 
some additional goals to which the people do not 
aspire. This rivalry springs from the fact that 
many governments in the less developed parts of 
the world, in their pursuit of economic betterment, 
hesitate between the free and the authoritarian 
route. 

Approximately one-third of the people of the 
world are presently in the Sino-Soviet bloc. 
Clearly these people are committed, by their gov- 
ernments if not by their own wills, to authori- 
tarian principles in charting their course to better 
economic and political life. 

Approximately one-third of the earth's people 
are of the free world. Clearly these millions are 
presently committed to reliance upon representa- 
tive goverimaent and the enterprise system in 
reaching for a brighter future. 

The remaining third are in varying degree un- 
committed in the East-West struggle. Their de- 
cision may in time to come determine the balance 
of power. The strategic importance, not to men- 
tion the humanistic implications, of the ideological 
struggle for the minds of these uncommitted 
people is clearly seen by the two great contestants. 
Kivalry between East and West during most of 
the past decade has been direct, firsthand, and on 
occasion violent. In recent years this rivali-y has 
shifted into a new area, in the direction of the 
less developed countries. Most people would 
agree that this form of rivalry is superior to an 
arms race. But let us not be deluded. It is a 
more subtle, softer, longer range but no less mean- 
ingful contest. This shift of technique and of 
emphasis in the world struggle is of profound 
significance from every point of view : philosoph- 
ical, military, political, economic, and, indeed, 
spiritual. 

Agricultural Breakthrough 

Third, I will briefly comment on the agricul- 
tural breakthrough: 

The breathtaking changes in agricultural 
technology of the recent past deserve to be char- 
acterized by a term seldom used in scientific 
circles — one reserved, in fact, for only the most 
far-reaching and significant developments — a ma- 
jor breakthrough. The realization of this monu- 

November 9, 1959 

529020 — ^59 3 



mental change is gradually making itself felt in 
scientific circles, among 2>ractical farmers, and 
among government officials. 

Forty years ago it took 106 man-hours to grow 
and harvest 100 bushels of wheat. In recent yeare 
it has taken not 106 man-hours but only 22. 
During this period the yield of wheat has doubled. 
For other crops similar dramatic changes have 
occurred. 

As recently as a decade ago the country was con- 
cerned about its ability to supply the food needs 
of our rapidly growing population. These were 
the days of the so-called "fifth plate." Today 
we're not worrying about filling the "fifth plate"; 
we're hunting instead for a "sixth customer." 

Traditional Viewpoint "Problem-Prone" 

It is considered by many people that the re- 
awakening of the underdeveloped countries, the 
international rivalry to assist them, and the agri- 
cultural breakthrough are all major problems. 

Many people have dwelt upon problems created 
by the growing aspirations and expectations, and 
indeed the actual achievements, of the developing 
countries. New areas have come into production 
to rival our export trade. Economic advance- 
ment has carried with it political and social up- 
heavals which have disturbed relationships among 
the great powers. Twenty-two new countries 
have come into being since World War II. There 
are new faces at the conference table; there are 
new power blocs with which to deal. 

Helping these developing nations is unques- 
tionably a problem. It has imposed considerable 
cost upon the American people. Rivalry with the 
Soviet Union in helping these nations is viewed 
by some as simply an additional cost. Technical 
assistance, economic support, loans for economic 
development, gifts and grants add to a consider- 
able sum, variously characterized, depending on 
the attitude, as "giveaway," "foreign aid," or 
"mutual security." The great food needs of these 
people, as measured in physical or nutritional 
terms, are in the orthodox economic sense not 
needs at all since they lack the means with which 
to buy. Yet reality demands the meeting of at 
least a part of these needs. 

The breakthrough in agricultural technology, 
the third of the current great events, has likewise 
been treated primarily as an unresolved and most 
vexing problem. Indeed anyone who has had 



673 



responsibility for dealing witli its consequences 
finds it hard to consider the breakthrough in any 
other light. The growing stocks of surplus crops, 
the downward impact upon prices, the mounting 
costs of farm programs, the painful adjustments 
required of our farm people, and the bitter legis- 
lative battles which both result from and cause 
or perpetuate these maladjustments — these are 
clear enough to any observer. 

Thus anyone approaching these great historical 
events in a conventional manner finds in them 
many grave and difficult problems. Looking at 
them separately and from a traditional point of 
view leaves one bleak and baffled. This arises 
from the inclination to be problem-prone rather 
than opportunity-oriented. 

Opportunities in Food Potential 

What we need to do is to view these historic 
events not from a conventional attitude but witli 
a fresh look. We need to see them not separately 
but in relationship to one another. 

Thus seen, the breakthrough in agricultural 
technology gives us the opportunity to help the 
developing nations to help themselves, to help 
build a political, economic, and social structure 
suited to their aspirations and oriented toward 
freedom, therewith to strengthen the free world 
in its struggle with the forces of totalitarianism. 

Among the various areas of our rivalry with the 
Soviet Union there is no economic sector in which 
our advantage is as clear cut as in agriculture. 
This is true despite recent Soviet advances in this 
field. The American farm worker outproduces 
the farm worker of the Soviet Union by a ratio 
of about four to one. The status of our agricul- 
tural science in most respects is superior to theirs. 
Our system of agricultural education at all levels 
is the world's best. Our system of family farming 
has demonstrated its superiority over the authori- 
tarian system. Our farmers are more skilled, our 
farms are better equipped, our resources of soil 
and climate more bountiful than those of the So- 
viet Union. And, perhaps most important of all, 
private ownership and freedom of decision give 
our fanners a tremendous advantage that does 
not exist among the agricultural workers of the 
Soviet Union. 

In any form of rivalry it is a good principle to 
join the issue, if one can, where one's relative 
strength is the greatest. There is no other area 



for which our relative strength so greath' ex- 
ceeds that of the Soviet Union as in the field of 
agriculture. There is the opportunity to make 
this sector, rather than some other, a major test- 
ing ground in our rivalry, and it is clearly in our 
interest to do so. 

Wliat is this opportunity to utilize, in our ri- 
valry with the Soviet Union, the comparative ad- 
vantage that we have in the agricultural field? 
The opportunity is great indeed, and we have 
gone a long way toward fulfilling it. The people 
of tlie developing countries are primarily agricul- 
tural. Perhaps 85 percent of the people live on 
farms or in agricultural villages. Their greatest 
needs and their gi-eatest understanding are in 
farming. There is a kinship among farm people 
throughout the world. There is no better medium 
by which we can communicate with these people 
than through the thing they know best: agricul- 
ture. They need tlie fruits of our agricultural 
sciences; they need what we have learned about 
agricultural education; they need the food and 
fiber which fill our warehouses and which our 
farms are capable of producing in large volume. 
The beginning of industrialization, also needed, is 
agricultural improvement, which releases people 
from food production to nonfarm jobs. We can 
and do associate our abundant agi'icultural capac- 
ity with their very great needs. 

There are opportunities, not just problems, in 
our food potential. 

Reorientating U.S. Farm Policies to Foreign Policy 

What I am describing is a matching of our 
abundant agricultural capacity and knowledge 
with the great needs of the developing countries. 
I am trying to describe this operation in its broad- 
est terms, and it should be so considered. 

There are some who view the food needs of the 
developing parts of the world simply as a safety 
valve to permit the continuation of unsound price- 
support legislation in the United States. What 
I am suggesting is something far different: the 
conscious reorientation of our farm policies with 
respect to the needs and opportunities of our 
foreign policy. 

This is not a new tliought. I claim no original- 
ity for it. It has already been partly put into 
effect. What I am really doing is to provide the 
logical basis for a recasting of attitudes toward 
the oj)p()rtuiiities which confront us. 



674 



Department of State Bulletin 



Most in need of recasting are the price-support 
laws. Legislation originally drafted to overcome 
a recession, retained to fight a war, and grudg- 
ingly but insufficiently modified to accommodate 
a scientific revolution is unlikely to be appropriate 
to the international age in agriculture. "VVe do not 
need an export program to bail out our unwise 
price-suppoi"t laws; we need farm programs that 
accommodate the present needs of our farm peo- 
ple, that recognize the breakthrough in agricul- 
tural technology, and that enable us to meet the 
worldwide opportunities presented by the great 
events that I have described. AVe have a work- 
able agricultural export law; we need more ap- 
propriate domestic programs. 

We should cease to hinder the emergence of a 
rational production pattern. We should cut farm 
program costs. The public probably will support 
a reasonable farm export pi-ogram which fits well 
into our capacity for abundant production and fits 
well into our foreign policy; it is not clear that 
the public will continue to support a price-sup- 
port program which grows even more costly and 
seems to fit very little that is rational. There is 
no need, with the present high level of agricul- 
tural output, to use price supports at inducement 
levels, thereby further stimulating production. 

Production controls, on the basis of experience, 
seem unable to choke off the abundant flow of 
American farm products. The total cost of pur- 
chasing nonproduction, through various programs 
which have that intent, is a heavy cost indeed. It 
may well be comparable in cost, bushel for bushel, 
with the cost of exporting farm products under 
programs which yield no return whatever. 

In other words, it may cost approximately as 
much to prevent the production of a bushel of 
wheat as it does to grow the bushel and move it 
abroad even if no payment is received. Costs 
are hard to determine accurately, but evidence 
points in this direction. 

Merits of Public Law 480 

Many good people have a wary attitude toward 
farm legislation desigiied to move increased 
amounts of American farm products overseas. 
This is because most such proposals in the past 
have involved some kind of dumping scheme or 
some threat to the international price structure. 
This wariness originally was reflected in a skepti- 
cal attitude toward Public Law 480, the chief leg- 



islative machinery for surplus disposal. But the 
experiences of the past 5 years have considerably 
reduced this apprehension. The idea of insisting 
that these special export programs move addi- 
tional quantities of farm products, beyond what 
the regular market will take— this is what dis- 
tinguishes Public Law 480 from other export pro- 
giams. It is my feeling that Public Law 480, 
which has been considered by some to be the 
province of idealists and temporizers, might bet- 
ter be considered as subject matter for hardheaded 
realists. 

If a special export program enables us to help 
meet the food needs of the developing nations and 
at the same time permits us to find a useful out- 
let for our abundant production, this is all to the 
good. Public Law 480 is such legislation. It is 
no discredit to the surplus-disposal aspect of the 
law that it also meets the needs of our friends 
abroad. And it is no discredit to its foreign- 
policy attributes that it also helps move our 
heavy inventories. That the law serves two pur- 
poses rather than one does not diminish the im- 
portance of either. 

The merits of this approach are increasingly 
recognized by the countries which receive the 
products, by the nations of the Soviet bloc, by 
the various countries of the free world which ex- 
port agi-icultural products in competition with 
us, and by the people of the United States. 

We are sendmg our food abroad and also our 
agricultural technology, both in significant 
quantities. 

Our agricultural shipments are a combination 
of conventional commercial sales for dollai-s and 
special export programs such as I have been 
describing. 

Last year (fiscal 1959) the United States ex- 
ported $3.7 billion worth of farm products, pro- 
duction from the equivalent of approximately 40 
million acres. About $2.4 billion worth were sold 
for dollars, much of this with the help of export 
subsidies; $729 million worth were sold in ex- 
change for the currencies of the nations to whom 
the goods were shipped; $189 million worth were 
donated to needy people; $144 million worth were 
bartei"ed for strategic materials, which went into 
our stockpile. 

Most of our exports thus move in the com- 
mercial markets, for dollai-s. We must continue 
to maximize this knid of trade. Wlien special 



November 9, 1959 



675 



export progi'ams must be used, the purpose must 
contiiuie to be, as soon as possible, to shift to sales 
for doll are. 

Food-for-Peace Program 

Some of these programs of necessity are new, 
unique, and unorthodox. They are not described 
in the standard texts on international trade. 
They have gi-own up out of necessity because our 
stocks were heavy and because dollare weren't 
available in the coimtries which needed our 
products. The food-for-peace program an- 
noimced by the President and administered by the 
Secretary of Agriculture is designed to improve 
the operation of these special export programs. 
Let me recognize here the constructive leaderehip 
given this program by Clarence Miller, Assistant 
Secretary of Agriculture, and by Max Myere, Ad- 
ministrator of the Foreign Agricidtiu'al Service. 
Excellent cooperation has been given by other 
persons in the Department of Agriculture and in 
other agencies. 

Food can be a powerful ambassador of good 
will and hence an effective instrument for peace. 
The food-exporting nations can associate them- 
selves together helpfully in this endeavor, as with 
the leadership of Secretary Benson they are now 
doing. 

This is the purpose of the food-for-peace 
program announced by the President and admin- 
istered by the Secretary of Agriculture. Specif- 
ically, this program involves an expansion of 
commercial trade in farm products and a strength- 
ening of our special export programs. 

It may well be that the food-for-peace effort 
will yield its greatest returns in improved inter- 
national imderstanding rather than in sharp in- 
creases in the quantity of food moving under 
special export programs. This, of itself, would 
be worth while. Nevertheless every constructive 
effort is being made to increase the quantities of 
agricultural products thus moved in a manner 
helpful both to the nation which exports and the 
nations which import. 

American farm i>roducts and agricultural tech- 
nology move abroad through a variety of mediums 
and in a great number of programs. In the past 
they moved chiefly through American business 
and through our agricultural missionaries. More 
recently they move through private business, 
through special programs, through educational 



efforts such as those carried on by ICA, through 
the various foundations, and through multilateral 
programs such as the F'ood and Agriculture Or- 
ganization of the United Nations. 

Agriculture's venture into the international age 
has been along a variety of paths: private and 
public, unilateral, bilateral, and multilateral. 
Each of these has its own merit and its own place. 
If I appear to stress the public programs, it is 
merely because they are the newest, the most 
unique, and the most controvereial. 

Transplanting U.S. Agricultural Science Abroad 

We have much to contribute in the form of 
agi'icultural science and education as well as in 
the form of f ann products themselves. 

American agricultural science is on the march 
throughout the world. In 54 countries more than 
a thousand American agi'icultural scientists are 
at work under a wide variety of government and 
private programs. Since the end of World War 
II, thousands of foreign-bom agricultural scien- 
tists have returned to their native lands after 
study and training in the United States. Last 
year we received more than 3,000 agricvdtural 
visitoi-s from abroad. The American system of 
adult education in agriculture has been adapted 
and put to use in many countries around the 
world. Our scientific know-how must be adapted 
rather than adopted. The differing conditions 
abroad make it impossible to transplant our ag- 
ricultural science dii'ectly. Continued ingenuity 
is needed to modify our American methods. 

There is a Danish proverb which says that "you 
may light another's candle at your own without 
loss." The net result of assisting other coimtries 
is to make our own economic candlepower 
stronger and brighter. 

We often forget that much of our own agricul- 
tural science was borrowed from abroad and 
adapted and improved in this coimtry. In 1820 
Thomas Jefferson wrote, 

In an Infant country like ours, we must depend for 
improvements on tlie science of other countries, longer 
established, possessing better means, and more advanced 
than we are. To prohibit us from the benefit of foreign 
light is to consign us to long darkness. 

Our own economic progress in the field of agri- 
culture could not have been as rapid as it was — 
despite our vast wealth of natural resources — 
witliout the skills and capital furnished to us by 



676 



\iepar^men^ of State Builetin 



Europe. We have the opportunity and the re- 
sponsibility to provide for others the kind of light 
and knowletlge which were so important in our 
own development. 

There are some unique things about transplant- 
mg American agricultural science abroad, but in 
many respects it is similar to the extension work 
laimched so successfully in this country 50 years 
ago. 

Difficult Tasks To Be Faced 

Although we have great opportunities in these 
fields, we face difficult tasks. Further ventures 
into the international age for agriculture are beset 
by illusions, problems, and hazards, difficulties 
sufficiently gi-eat to discourage the fainthearted. 

First let me cite some illusions. 

One illusion is that economic development is a 
soothing experience and is likely to result in politi- 
cal, social, and economic stability in those develop- 
uig countries which experience it. This simply is 
not true. Agricultural advancement carries with 
it many difficult adjustments, as we have seen in 
this country : shifts in population, changes in land 
use, and altered institutions in all the social sci- 
ences. These cannot be bypassed, hurdled, or 
transcended. They are the price of progress. The 
developing nations have themselves elected the 
path of progi-ess. It is useless to second-guess 
their decision. We cannot put the chicken back 
into the egg. The birth pangs of progress cannot 
be averted, though by the use of intelligence they 
may be diminished. 

Ajiother illusion is the belief that, if only the 
material needs of the developing nations can be 
met, these nations' will renounce communism. 
This is not true ; the mind and the spirit are con- 
cerned as well as the stomach. Food is an essential 
but not a sufficient condition for the development 
of free institutions. 

Still another illusion is the thought that the 
agricultural problems of the developing countries 
can be met quickly and that the American tend- 
ency for excessive production will be of brief du- 
ration. This seems unlikely to be true. Progi'ams 
may well be kept on a temporary basis so as to 
allow modification as experience is acquired. But 
programs set up with the expectation that foreign 
needs will soon diminish and that the conventional 
market will shortly consume our total production 
will probably require reexamination. 



I have cited some of tlie illusions. Tvct me now 
cite briefly some of the problems. 

One of the problems is to convert our thinking 
in such a manner as to permit us to view the great 
events of the mid-2()lh century as stejjpingstones, 
not stumbling blocks. 

Another problem is to hold to a reasonable level 
the public cost of agriculture's venture into the 
international age. 

In providing technical assistance our problem is 
to give this work more status, to make foreign 
assignments of long enough duration to be gen- 
uinely helpful, to be good guests abroad. For 
problems certain to be of extended duration we 
need to think in longer terms than 2-year assign- 
ments and annual appropriations. 

We should avoid sending overdeveloped scien- 
tists to underdeveloped countries. 

Other problems are to learn better how to dis- 
tribute our agricultural products without disturb- 
ing our commercial markets, how to associate our 
effort helpfully with the other food-exporting na- 
tions, and how to use the foreign currencies gen- 
erated by our programs. 

Another problem, and a great one, is to learn 
better how to terminate special export programs 
when the need for them has passed. Assistance 
must be such as to help these countries stand on 
their own feet and make their own way. On any 
other basis the program would be harmful both 
to the country which supplies the assistance and 
to the countries which receive the aid. 

Helping people to help themselves is not a 
novelty. We have learned how to do this in a 
number of sectors. We have learned to graduate 
farmers from supervised credit — as in the Farmers 
Home Administration — to competitive commercial 
credit. Western Europe was graduated from the 
Marshall plan. Individually we all graduate from 
dependence as children to responsibility as adults. 
We can help countries to graduate from our 
special export programs to commercial trade. In- 
deed we have already done so. We have shifted 
from sales for foreign currency to sales for dollars 
for Italy, for France, for Japan, and for Austria. 
It will have to be done for other comitries as they 
achieve capability. The speed with which tliis 
can be done will vary, of course, from countrj' 
to country, and the difficulties of accomplishing 
it will in many cases be very great. That this is 
a substantial problem, there is no doubt. That it 
is hopeless, I firmly deny. 



November 9, 7959 



677 



A food-for-peace program is beset not only by 
illusions and operating problems but by positive 
hazards as well. One of the often-stated hazards 
is the possibility that the rapidly increasing popu- 
lations in these countries may swallow up all that 
we can provide through our special export pro- 
grams and advancing agricultural technology. 

Those pessimistically inclined will say that this 
risk is so great as to argue against undertaking 
the venture in any form. Bolder people see in 
the increasing populations a great need to pro- 
vide new technology in food production, as well 
as food itself. Tliere is the need to introduce 
technology at a more rapid rate than the rate at 
which the population increases. Indeed this 
very thing has occurred generally throughout the 
world during the past decade. There have been 
no major famines during the past 10 years. His- 
tory records no previous experience of like dura- 
tion. Our age is unique in that for the first time 
in history men in all pai'ts of the world are dar- 
ing to think seriously in terms of food enough for 
all. There ai-e indications that voluntary checks 
on the rate of population growth may in time 
reduce the dimensions of the problem. 

If economic development can go forward with 
sufficient rapidity, it can become self-generating 
and in time outgrow the need for reliance upon 
the United States. This is the hope that draws 
us on despite the illusions, the problems, and the 
hazards to which I have referred. 

Responsibility Goes With Abundance and Knowledge 

The problems of the international age in agri- 
culture are difficult and complex. There is risk 
in each effort made. But the risks of failing to 
face up to this opportunity are far greater than 
those involved in considered action. Political 
explosions can result, in a shrinking world, from 
a widening gap between the wealthy and the 
underdeveloped countries. The embrace of com- 
munism by underdeveloped nations which insist 
upon economic progress and cannot find it within 
the institutions of the free world — ^here is a risk 
that is grave indeed. And to waste our capacity 
for abundant agricultural production, to make 
a problem out of what is in fact a great opportu- 
nity, this is a severe indictment. Every citizen 



senses that food is good and that abundance is a 
blessing rather than a burden. The problem has 
its moral as well as its economic and political 
aspects. This is important in America. The 
very possession of knowledge and the very capa- 
bility of abundant production carries with it a 
responsibility to make these tilings useful. 

There may have been a time and a place at 
which the responsibility which goes with abun- 
dance and knowledge could have been shrugged 
off, but not in America and not in the mid-20th 
century. Neither the present voting public nor 
the future historian will deal kindly with the 
steward who buries Ms talent. 

This is truly the international age in agricul- 
tui"e. We have, in various ways, propelled agri- 
culture into this age, largely as the result of 
unmanaged circumstance and without a full con- 
sciousness of the possibilities and limitations of 
this course. The remarkable thing is that we 
have done as well as we have. Sharing the credit 
for such success as we have experienced are both 
the executive and legislative branches of the Gov- 
ernment, the business community, and the pri- 
vate citizen, as well as a whole cadre of scientists, 
educators, and administrators. These same per- 
sons bear responsibility for advancing us beyond 
the stage we now occupy. 

What I have endeavored to do in these remarks 
is to show that the patterns emerging from the 
venture thus far make a great deal of sense. 
Having accumulated some years of experience in 
matching the capabilities of American agricul- 
ture with the needs of the uncommitted and 
underdeveloped nations of the world, we now are 
reviewing and evaluating our experience to find 
in it tliose efforts which have been fruitful, to 
eliminate or improve those projects which have 
fallen short of the mark, and to evolve a conscious 
policy out of what has hitherto been a poorly 
understood though a rather successful venture. 

Agriculture was formerly a stagehand in the 
dramatic play titled "foreign policy." It is now 
a legitimate member of the cast. 

I commend you on the timeliness and appro- 
priateness of this lecture sei'ies and look forward 
with a great deal of interest to the fruits of your 
delibei'ations. 



678 



Department of State Bulletin 



Deputy for Technical Affairs 
Named to Disarmament Study 

Press release 744 dated October 22 

The Secretai-y of State on October 22 appointed 
Richard S. Legliorn, president of Itek Corp., 
Waltham, Mass., as Deputy for Teclinical Affaire 
to Charles A. Coolidge, who heads the joint dis- 
amiament study being undertaken by the State 
and Defense Departments. 

Mr. Leghorn's major responsibility will be anal- 
ysis and advice on teclmical mattei*s involved in 
arms-control proposals and proposals for the or- 
ganization of continuing technical studies by the 
Government in the arms-control field. 

Mr. Leghorn will serve on a consultative, part- 
time basis until early 1960. 



Assistant Secretary Jones 
Departs for South Asia 

The Department of State announced on Octo- 
ber 19 (press release 735) that G. Lewis Jones, 
Assistant Secretary for Near Eastern and South 
Asian Affairs, planned to depart from Washing- 
ton on October 21 for a visit to south Asia. His 
route will take him via Tehran, where he served 
as Minister-Counselor in 1955 and 1956. The pur- 
pose of Mr. Jones' trip is to consult with American 
chiefs of missions and other U.S. officials in that 
area. He will also make appropriate calls upon 
officials of the countries visited. Mr. Jones will 
be accompanied by Evan M. Wilson, a Foreign 
Service officer. 

American Foreign Service posts to be visited by 
Mr. Jones and Mr. Wilson include Tehran, Ka- 
rachi, Kabul, Peshawar, Rawalpindi, Lahore, New 
Delhi, Katmandu, Calcutta, Dacca, Madras, and 
Colombo. 



Flood-Relief Aid Sent to India 

The Department of State announced on Oc- 
tober 19 (press release 734) that the U.S. Navy 
frigate John S. McCain, scheduled to arrive at 
Calcutta on an informal courtesy call on October 
21, is carrying approximately $5,000 worth of 
antibiotics and other drugs which will be turned 
over to the Calcutta Ministry of Health for use in 



the flood-relief measures undertaken by the Gov- 
ernment of India. 

This brings the total U.S. Government contri- 
bution to current flood-relief activities in India 
to $10,000. There have been unprecedented floods 
throughout India this year, particularly in West 
Bengal, Bihar, and Orissa. Earlier this month 
the American Embassy donated 25,000 rupees in 
answer to a call from Prime Minister Nehru for 
donations to replenish the national relief fund. 

In addition, large quantities of food commodi- 
ties (milk, wheat, and corn), distributed through 
U.S. voluntary agencies in India under the U.S. 
Government's P.L. 480 program, are being allo- 
cated to West Bengal flood-relief activities. 

Last week the American Red Cross made a grant 
of $5,000 to the Indian Red Cross, and the 
American Junior Red Cross granted $5,000 for 
work with children affected by the flood situation. 



Letters of Credence 

Jordan 

The newly appointed Ambassador of Jordan, 
Yusuf Haikal, presented his credentials to Presi- 
dent Eisenhower on October 20. For texts of the 
Ambassador's remarks and President Eisen- 
hower's reply, see Department of State press re- 
lease 737 dated October 20. 



GATT Ministerial Meeting 
To Convene at Tokyo 

Press release 747 dated October 23 for release October 25 
DEPARTMENT ANNOUNCEMENT 

The 15th session of the Contracting Parties to 
the General Agreement on Tariffs and Trade 
(GATT) opens on October 26. This session will 
be held at Tokyo at the invitation of the Japanese 
Government. 

The GATT is the basic instrument governing 
commercial relations between the United States 
and the principal trading nations of the free world 
and is the cornerstone of U.S. commercial policy. 
The provisions of the GATT are designed to re- 
duce governmental interference with the flow of 
trade and with the exercise of private business 



November 9, 7959 



679 



initiative. The 37 contracting parties to the 
GATT account for more than 80 percent of inter- 
national trade. 

Under Secretary of State Douglas Dillon will 
represent the United States at the Ministerial 
Meeting, which takes place in the first days of the 
4-week session.' The chairman of the U.S. dele- 
gation is W. T. M. Beale, Deputy Assistant Sec- 
retary of State for Economic Affairs. Henry 
Kearns, Assistant Secretary of Commerce for In- 
ternational Affairs, is vice chairman. The con- 
gressional advisers are Representative Hale Boggs 
and Representative Victor A. Kjiox. 

An important subject of attention at the Minis- 
terial Meeting and during the rest of the session 
is the relationship between commercial policy and 
the new financial situation created early this year 
when, reflecting improved balance-of-payments 
and reserve positions, all of the European curren- 
cies important in international trade were made 
externally convertible. U.S. representatives will 
emphasize that, given the new currency situation, 
discriminatory import restrictions can no 
longer be j ustified on financial grounds. A number 
of countries have accelerated their progress this 
year in removing quantitative restrictions against 
exports from the dollar area, but further progress 
is necessai'y to complete the job. A major objective 
of the U.S. delegation to the Tokyo meeting will be 
to encourage other countries to eliminate rapidly 
the remaining discriminations against dollar goods 
and generally to reduce the level of their quantita- 
tive import restrictions. 

The major agenda items include consideration of 
the threefold j'rogram initiated last year at the 
13th session^ for the expansion of international 
trade and being carried out through three special 
committees : 

(1) The Contracting Parties will have before 
them a report of the committee charged with de- 
veloping rules and procedures to be used in the new 
round of nudtilateral tariff negotiations to be held 
in 1960-61, as agreed by the Contracting Parties 
at the 14th session.^ It is expected that the rules 



' For a departure statement by Mr. Dillon, see Bulletin 
of Nov. 2, 1959, p. 633. 

' For a review of the 13th session, see ihid., Dec. 8, 1958, 
p. 930. 

" For a report on the 14th session, see ibid., June 22, 1959, 
p. 917. 



and procedures will generally follow the pattern of 
those used in 1956 and earlier rounds of GATT 
tariff negotiations, with some necessary modifica- 
tion to take accoimt of the complexities of the 
negotiations with the European Common Market 
(European Economic Commmiity — EEC). 

(2) The second committee's examination of the 
national agricultural policies of contracting par- 
ties as they affect trade in agricultural products 
will continue. The first series of country examina- 
tions was held in the latter part of September. 
There will be a third series of consultations in Jan- 
uary 1960, at which time U.S. agricultural policies 
will be examined. 

(3) The third committee's report on its pre- 
liminary examination of barriers to the trade of 
the less developed countries will be discussed. The 
importance of facilitating the expansion of export 
earnings by the less developed countries is recog- 
nized by both the industrialized and the less de- 
veloped GATT countries. The work program of 
this committee calls for another meeting in the 
first part of 1960. 

Poland's request to participate in the work of the 
GATT will be considered at the Tokyo session. 
Following consideration of a working party report 
on this subject, the Contracting Parties are ex- 
pected to agree upon arrangements for a closer 
relationship between Poland and the Contracting 
Parties than that afforded by the observer status 
which Poland now has. 

The continued application to Japan of GATT 
article XXXV, whereby a number of countries de- 
cline to undertake GATT obligations toward that 
country, will also be considered at this session. 

The European Economic Community will report 
on developments within the Common Market, and 
one of the Latin American contracting parties will 
present information concerning a proposed re- 
gional trade arrangement in that area. 

Early this year a committee of the Contracting 
Parties held consultations with eight countries that 
still maintain import restrictions to safeguard 
their monetary reserves. At the 15th session con- 
sultations with six other countries will be com- 
pleted. In these consultations, required by the pro- 
visions of GATT, the Contracting Parties examine 
the quantitative import restrictions still in force, 
their effects, the need for their retention, and the 
prospects for their removal. These consultations 
constitute one of the several methods utilized by 



680 



Deparfmenf of State Bulletin 



the Contracting Parties to promote nondiscrimina- 
tion in international trade and the. reduction of 
f!;overnmental trade barriers. 

Many of the remaining agenda items concern 
annual reports required by decisions taken in pre- 
vious years, customs problems, and administrative 
matters. 



U.S. DELEGATION 

Ministerial Representative 

Douglas Dillon, Under Secretary of State 

Special Assistant to Ministerial Representative 
John M. Leddy, Speoial Assistant to the Under Secre- 
tary of State 

Representatives 

W. T. M. Beiile, Chairman, Deputy Assistant Secretary 

of State for Economic Affairs 
Henry Kearns, Vice Chairman, Assistant Secretary of 

Commerce for International Affairs 
Douglas MacArthur II, American Ambassador to Japan 
Ben H. Thibodeaux, Minister-Counselor for Economic 

Affairs, American Embassy, Tokyo 
Herbert P. Propps, Senior Cowdinator, Commercial Policy 

and Treaties Division, Department of State 

Congressional Advisers 

Hale Boggs, House of Representatives 

Victor A. Knox, House of Representatives 

Advisers 

Philip Areeda, Assistant Special Counsel to the Presi- 
dent 

Saul Baran, Japan-Korea Section, Far Eastern Division, 
Bureau of Foreign Commerce, Department of Com- 
merce 

Emerson M. Brovrn, Office of International Trade, Depart- 
ment of State 

Prentice N. Dean, Associate Chief, Foreign Economic 
Policy Division, Office of Foreign Economic Affairs, 
Department of Defense 

A. Richard De Felice, Deputy Assistant Administrator, 
Agricultural Trade Policy and Analysis Division, For- 
eign Agricultural Service, Department of Agriculture 

Ben D. Dorfman, Chief Economist, U.S. Tariff Commission 

Morris J. Fields, Chief, Commercial Policy and United 
Nations Division, Office of International Finance, De- 
partment of the Treasury 

Walter Hollis, Office of the Assistant Legal Adviser for 
Economic Affairs, Department of State 

Dallas L. Jones, Chief, Exchange Restrictions Branch, 
International Finance Division, Department of State 

Leonard R. Linseniiiayer, Associate Director, Office of 
International Labor Affairs, Department of Labor 

Richard L. Mattbeisen, Assistant to the Director, Office 
of Economic Affair.s, Bureau of Foreign Commerce, 
Department of Commerce 

Virginia H. McClung, Office of International Resources, 
Department of State 



J. Allen Overton, Vice Cliairman, U.S. Tariff Commission 

John H. Richter, Chief, European Analysis Branch, For- 
eign Agricultural Service, Department of Agriculture 

Harry Shoo.shan, International Activities Assistant, Tech- 
nical Review Staff", Department of the Interior 

Chirence Siegel, Deputy Director, European Division, Of- 
fice of Economic Affairs, Bureau of Foreign Commerce, 
Department of Commerce 

Technical Secretary 

Guy A. Wiggins, Conmiercial I'olicy and Treaties Divi- 
sion, Office of International Trade, Department of State 

Secretary to the Delegation 
Leo W. Garvey 



IMF Announces Decision 

on Discriminatory Restrictions 

IMF Announcement of October 25 

One of the most discussed subjects at the recent 
annual meeting of the Board of Governors of the 
International Monetary Fund^ was the elimina- 
tion of discrimination in international trade and 
payments. Since then, the Executive Directors 
have considered the subject and have adopted the 
following unanimous decision, which will be com- 
municated to the member covmtries of the Fund 
and to the Contracting Parties to the General 
Agreement on Tariffs and Trade meeting at 
Tokyo.2 

Text of Decision 

Discrimination fob Balance of Payments Reasons 
The following decision deals exclusively with discrim- 
inatory restrictions imposed for balance of payments 
reasons. 

In some countries, considerable progress has already 
been made toward the elimination of discriminatory re- 
strictions; in other.s, much remains to be done. Rwent 
international financial developments have established an 
environment favorable to the elimination of discrimina- 
tion for balance of payments reasons. There has been 
a substantial improvement in the reserve positions of the 



' For statements made by President Elsenhower, Under 
Secretary of State Douglas Dillon, Secretary of the Treas- 
ury Robert B. Anderson, and Assistant Se<'retary of the 
Treasury T. Graydon Upton during the annual meetings of 
the World F.ank, International Monetary Fund, and In- 
ternational Finance Corporation, see Bulletin of Oct. 19, 
19.59, p. 531. 

' See p. 679. 



November 9, 1959 



681 



industrial countries in particular and widespread moves 
to external convertibility have taken place. 

Under these circumstances, the Fund considers that 
there is no longer any balance of payments justification 
for discrimination by members whose current receipts are 
largely in externally convertible currencies. However, 
the Fund recognizes that where such discriminatory re- 
strictions have been long maintained, a reasonable amount 
of time may be needed fully to eliminate them. But this 
time should be short and members will be expected to 
proceed vrith all feasible speed in eliminating discrim- 
ination against member countries, including that arising 
from bilateralism. 

Notwithstanding the extensive moves toward converti- 
bility, a substantial portion of the current receipts of 
some countries is still subject to limitations on converti- 
bility, particularly in payments relations with state- 
trading countries. In the case of these countries the 
Fund will be prepared to consider whether balance of 
payments considerations would justify the maintenance 
of some degree of discrimination, although not as between 
countries having externally convertible currencies. In 
this connection the Fund wishes to reafiBrm its basic policy 
on bilateralism as stated in its decision of June 22, 1955. 



Japanese Trade Mission 
Visits United States 

The Department of State announced on October 
24 (press release 751) that an official Japanese 
trade mission was scheduled to arrive at Wash- 
ington on October 24 for a 5-day visit before 
beginning a 1-month tour of the United States 
which will include stopovers in New York, Detroit, 
Chicago, St. Louis, New Orleans, Houston, Dal- 
las, Los Angeles, and Honolulu. 

The mission consists of eight members, six busi- 
nessmen and two Government officials, under the 
leadership of Seitaro Okamatsu, president of the 
Chiyoda Kogyo Company of Tokyo. Mr. Oka- 
matsu is a former Vice Minister of International 
Trade and Industry. The other private members 
of the mission represent a cross section of Jap- 
anese industry, wliile the two public members rep- 
resent the Ministry of Foreign Affairs and the 
Ministry of International Trade and Industry. 

The program of the mission's stay in Wash- 
ington includes calls on the Assistant Secretary 
of State for Economic Affairs, Thomas C. Mann, 
the Assistant Secretary of State for Far Eastern 
Affairs, J. Graham Parsons, and officials of the 
Departments of Commerce and Agriculture. As- 
sistant Secretary Parsons will hold a reception in 
honor of the mission on October 28. 



This is the second Japanese trade mission to 
come to the United States in postwar years. Its 
visit corresponds to similar visits which United 
States trade missions have made to Japan. The 
purpose of these exchanges is the promotion of 
trade and good will between the two countries. 



British End Exchange Restrictions 
on Travel to U.S. 

Department Statement 
Press release 742 dated October 22 

On October 19 the British Government an- 
nounced the removal as of November 1 of ex- 
change restrictions relating to foreign travel by 
British residents. Although certain formalities 
remain, these are being maintained only for the 
purpose of preventing unauthorized capital move- 
ments. 

The Department of State has noted this an- 
noimcement with satisfaction. The action of the 
British Government is welcome not only because 
it represents further progress in dismantling re- 
strictions on United Kingdom transactions with 
the United States but also because it will eliminate 
the foreign-exchange barrier which has tended to 
limit the expansion of personal contacts between 
the peoples of the United States and the United 
Kingdom. 

It is to be hoped that other countries which still 
maintain exchange restrictions on travel to the 
United States will also find it possible to eliminate 
them in the near future. 



Congressional Documents 
Relating to Foreign Policy 

86th Congress, 1st Session 

Report on the Operations of the Deparbnent of State 
(Under Public Law 584). Letter from the Under Sec- 
retary of State transmitting a report by the Depart- 
ment which contains a summary of development.^ for 
the calendar year 195S. H. Doc. IIM. July ", 1939. 
100 pp. 

U.S. Private Foreign Investment. Hearings before the 
subcommittee of the Senate Banking and Currency 
Committee on the effect of private foreign investment 
on U.S. employment, profits, and markets. July 13-15, 
lO.TO. 171 pp. 

International Educational and Cultural Relations. Hear- 
ing before the Senate Foreign Relations Committee. 
August 19, 1959. 49 pp. 



682 



Department of State Bulletin 



INTERNATIONAL ORGANIZATIONS AND CONFERENCES 



General Assembly Calls for Respect for Rights of Tibetan People 



Following are statements on the qu-estion of 
Tibet made by James W. Barco and Henry Cabot 
Lodge, U.S. Representatives to the U.N. General 
Assembly, together luith the text of a resolution 
adopted by the AssetnJbly on October 21. 

FIRST STATEMENT BY MR. BARCO > 

The United States supports tlie request of the 
delegations of Ireland and Malaya ^ that the item 
"The question of Tibet" be inscribed on the agen- 
da as an important and ui'gent matter and that 
it be allocated to the plenary body of the 
Assembly. 

The Dalai Lama on September 9 appealed to 
the United Nations for consideration among 
other things of "the inhuman treatment and crimes 
against humanity and religion to which the people 
of Tibet are being subjected." The Dalai Lama 
reported that Chinese Communist armed forces 
in Tibet have deprived thousands of Tibetans of 
their lives and property, have utilized cruel meas- 
ures with a view to the total extermination of the 
Tibetan race, and have attemjjted to destroy the 
Tibetan religion and culture. The source and na- 
ture of these grave charges are in and of them- 
selves sufficient to justify inscription of tliis item. 

The charter of the United Nations reaffirms 
faith in fundamental hiunan rights, in the dig- 
nity and worth of the human person, in the equal 
rights of men and women, and of nations large 
and small. One of the declared purposes of the 
United Nations is to promote and encourage re- 
spect for human rights and for fundamental 
freedoms for all without distinction as to race, 
sex, language, or religion. In these circumstances 



' Made in the General Committee on Oct. during debate 
on inscription of ttie item "The question of Tibet" (U.S. 
delegation press release 32-17). 



the United Nations cannot fail to heed the Dalai 
Lama's appeal. 

The International Commission of Jurists, a 
nongovernmental and nonpolitical organization 
supported by 30,000 lawyers in more than 50 
countries and a body which has consultative status 
with the United Nations, has issued a comprehen- 
sive report entitled "The Question of Tibet and 
the Kule of Law." This report is based in part 
on statements made by Tibetan refugees which 
were collected under the direction of an eminent 
jurist, Mr. Pui-shottam Trikaradas. On August 
21, 1959, Mr. Trikamdas told a news conference 
that a frima facie case existed that the Chinese 
Communists in Tibet had committed atrocities 
amounting to genocide. One thing which is en- 
tirely clear to all unbiased observers is that large- 
scale violations of fundamental human rights have 
taken place in Tibet. 

Tlie charter of this organization provides a 
standard for civilized conduct everywhere. The 
United Nations has demonstrated the deep con- 
cern of world jDublic opinion over flagrant viola- 
tions of human rights and fundamental freedoms 
wherever they have occurred. Just because the 
wrongs which our charter seeks to prevent are be- 
ing suffered by a people in a remote and inacces- 
sible part of the world does not mean that we can 
ignore the shocking events which are taking place 
there. To do so would be inconsistent with the 
purposes and principles of this organization and 
would expose the United Nations to the charge of 
indifference to wrongs of a magnitude which 
strike at the core of human decency. The United 
States for its part would have welcomed giving 
the Dalai Lama the opportunity to present his case 
personally to this body. The United States wel- 
comes the initiative of Ireland and Malaya, mem- 
bers which have traditionally been in the forefront 



'■ U.N. doe. A/4234. 



November 9, 1959 



683 



of United Nations consideration of violations of 
human rights. The United States will vote for 
inscription of "The question of Tibet" and for 
allocation of this item to the plenary. 

SECOND STATEMENT BY MR. BARCO > 

We are here today considering a question in- 
volving the fate of a whole people, the ancient and 
courageous people of Tibet. I regret very much 
the strident note that the representative of the 
Soviet Union has sought to inject into these pro- 
ceedings. But for this it would not have been 
necessary for me to address this committee again. 

The representative of the Soviet Union has 
made astonishing statements here today reflecting 
on the good faith of all those who are concerned 
about the fate of the Tibetan people and who stand 
for the fundamental human rights on which this 
organization is founded. In particular the repre- 
sentative of the Soviet Union has made an out- 
rageous and unprecedented attack on the sponsors 
of this item and on the United States. I categori- 
cally and utterly deny each and every one of the 
baseless charges against the United States made 
this afternoon by Mr. [V. V.]Kuznetsov, and 
they deserve no further comment. 

The question before us is a very simple one: 
Wliat is the influence of this organization to be 
on the great issues of our times? Never has the 
answer to this question been more important than 
today. I hope we will all ponder that question 
when we cast our votes for or against the people 
of Tibet.* 



STATEMENT BY MR. LODGE'' 

Before making my statement on the Tibetan 
question, I would like to take a minute under my 
right of reply — not, I hasten to say, in any heat at 
all but merely to keep the record straight. 

Mr. Kuznetsov this morning mentioned the 
United States twice in his speech. The first time 



'Made in the General Committee on Oct. 9 (U.S. dele- 
gation press release 3248). 

' The recommendation to include the item on Tibet In 
the agenda was approved by the General Committee on 
Oct. 9, and the item was adopted in plenary session on 
Oct. 12 by a vote of 43 to 11, with 2.5 abstentions. 

"Made in plenary session on Oct. 20 (U.S. delegation 
press release 3259 ) . 

684 



was a reference to the talks between President 
Eisenhower and Chairman Khrushchev,' a refer- 
ence which we appreciate. 

Tlie second was a disapproving reference to the 
presence of United States troops in Korea, a ref- 
erence which I am bound to admit seems to us 
inconsistent with the conmient on the Eisenhower- 
Khrushchev talks. Surely the Soviet Union 
knows that the United States troops are in Korea 
pursuant to resolutions of the United Nations. 
This is something which all United Nations mem- 
bers can well understand and support. 

Basis for Consideration of Tibet Item 

On the initiative of the delegations of Ireland 
and Malaya the General Committee recommended 
to the General Assembly the inscription of an item 
entitled "The question of Tibet." The United 
States supported this initiative, which was based 
on the apjjeal of the Dalai Lama, and we welcome 
the decision of the General Assembly to consider 
the terrible ordeal of the Tibetan people. 

Opposition to the consideration of this item in 
the Assembly has been based on two very different 
positions. 

First, there have been the attempts to, in effect, 
frighten us out of discussing it by the use of strong 
words. We have been asked to believe that it is 
all right for Chinese Communists to kill Tibetans 
but that it is a provocation for us to talk about it. 
This argument seems to us unworthy of discussion. 
It is an argument of intimidation by false logic. 

Doubts about the Assembly's competence to deul 
with this matter have stemmed from the view that 
events taking place in Tibet were an internal mat- 
ter and thus subject to article 2, paragraph 7, of 
the charter — that is, the domestic jurisdiction 
clause. I think the question of the General As- 
sembly's competence can be answered clearly and 
affirmatively wiiatever one's views may be as to 
the legal status of Tibet. 

The interest and concern of the United Nations 
in human rights and fundamental freedom is set 
forth in article 55 of the charter. That article 
reads in part as follows : 

With a view to the creation of conditions of stability 
and well-being which are necessary for peaceful and 



' For background, see BnixETiN of Oct. 12, 1959, p. 499. 
Department of Sfafe Bulletin 



friendly relations among nations based on respect for the 
principle of equal rights and self-determination of peoples, 
the United Nations shall promote : 

. . . universal respect for, and observance of, human 
rights and fundamental freedoms for all without distinc- 
tion as to race, sex, language, or religion. 

This charter provision is the basis of General 
Assembly consideration of such a problem as the 
situation in Tibet. 

Article 10, in setting forth the functions and 
the powers of the General Assembly states this : 

The General Assembly may discuss any questions or any 
matters within the scope of the present Charter or relating 
to the powers and functions of any organs provided for in 
the present Charter, and except as provided in Article 12, 
may make recommendations to the Members of the United 
Nations or to the Security Council or to both on any such 
questions or matters. 

And obviously the subjects of article 55 are "mat- 
ters within the scope of the present Charter." 

In the years since the establishment of the 
United Nations certain principles and rules con- 
cerning the application of article 2, paragraph 7, 
have emerged. It has become established, for ex- 
ample, that inscription and then discussion of an 
agenda item do not constitute intervention in mat- 
ters which lie essentially within domestic jurisdic- 
tion. As to the adoption by the General Assembly 
of resolutions, the charter in articles 10 and 55 has 
conferred a clear and well-articulated authority 
upon the Assembly, which it has exercised on sev- 
eral occasions in the past. 

Now, Mr. President, charges of very serious vio- 
lations of himian rights and fundamental free- 
doms in Tibet have been presented to this As- 
sembly. In the context of the charter and of the 
precedents, the General Assembly is surely compe- 
tent to express itself concerning such action and 
to appeal for the observance of liberty. This is 
what the draft resolution presented by Ireland 
and Malaya ' would do. The United States be- 
lieves that there is no doubt of the Assembly's 
authority to adopt it. 

Record of Events in Tibet 

So much for the question of our competence 
here. I now proceed to the matter of Tibet. 

Toward the end of March this year, reports be- 
gan to filter out of Tibet that the Tibetan people 



had rebelled against the Chinese Communist cam- 
paign to destroy their liberties, tlieir religion, and 
their way of life and that Chinese Communist 
armed forces in Tibet were battling and killing 
Tibetans on a large scale. On March 26 the Act- 
ing Secretary of State of the United States ex- 
pressed his deep shock at these reports." 

The Cliinese Communists told a different story, 
of a kind which is almost ritualistic in such cases. 
They said the disorders had been fomented by a 
"reactionary clique." When the Dalai Lama, the 
spiritual and temporal leader of the Tibetan 
people, left Lhasa rather than submit, they an- 
nounced that this same "reactionary clique" had 
kidnaped him. This phrase, may I say, is straight 
out of the Chinese Communist phrasebook. 

The world waited anxiously as Chinese Commu- 
nist troops hunted the Dalai Lama through the 
mountain passes of the Himalayas. We remem- 
ber the thankful relief which greeted Prime Min- 
ister Nehru's announcement that the Dalai Lama 
had readied safety in India on March 31. 

At his first news conference in Tezpur on April 
18 the Dalai Lama gave the first authoritative ac- 
count of the uprising. He revealed that the Ti- 
betan people have been engaged since 1955 in a 
struggle against the Chinese Communist army of 
occupation. He told of the destruction of monas- 
teries, the killing of lamas, and the herding of 
Tibetan monks and officials into forced labor on 
road gangs. He told how the situation had de- 
teriorated to a point where his own person was in 
danger. When his palace was fired upon by the 
Chinese Communist forces, he decided to leave 
Lhasa. 

The Dalai Lama, in this statement, said that 
he "came to India of his own free will and not 
under duress." Given the distances and the ter- 
rain involved, no one could doubt the truth of his 
statement that "it was due to the loyalty and 
affectionate support of his people that the Dalai 
Lama was able to find his way through a route 
which is quite arduous." 

If the Tibetan people had not been so fortunate 
as to have a leader of the stature and the courage 
of tlie Dalai Lama, probably the world would 
never have been certain as to what was actually 
happening during this period. The result was a 



' U.N. doc. A/L. 264. 
November 9, 1959 



' BiTLLETiN of Apr. 13, 1959, p. 514. 



685 



complete exposure of the trumped-up and — one 
must say it — wholly unbelievable charges of the 
Chinese Commvmists concerning Tibet. 

After a period of rest and meditation the Dalai 
Lama, at his press conference in Mussoorie on June 
20, revealed in moving detail the exact nature and 
extent of the Chinese Communist reign of terror. 
This story has been told by the Dalai Lama him- 
self and by the distinguished speakers who have 
preceded me, and I will not repeat it again. 

In response to questions at this press conference 
the Dalai Lama stated that more than 65,000 
Tibetans had been killed fighting tlie Chinese army 
of occupation since 1956, that more than 1,000 
monasteries had been destroyed, that lamas and 
monks had been killed, and that a full-scale cam- 
paign had been waged for the extermination of 
religion. He stated that the Chinese Communists 
had embarked on a large-scale policy of coloniza- 
tion by millions of Chinese settlers. He said the 
younger generation of Tibetans were being in- 
doctrinated into Chinese communism. The ulti- 
mate aim of the Chinese Communists appeared to 
him to be the extermination of Tibetan religion 
and culture and even of the Tibetan race. 

The Dalai Lama concluded by stating that he 
would return to Lhasa when he obtained the rights 
and powers which Tibet had enjoyed and exercised 
before 1950. 

Now, Mr. President, these statements by the 
Dalai Lama are common knowledge. They are 
widely known, just as I have quoted them, every- 
where in the world where a free press exists. 
The Chinese Communists recognize full well that 
the Dalai Lama, no matter where he is, remains 
the spiritual and temporal leader of all loyal 
Tibetans. But the propagandists in Peiping con- 
stantly picture him as a prisoner under duress — 
which is a grim irony since the only duress he has 
known was at their hands. Actually, the freedom 
and hospitality accorded by the Government of 
India to the Dalai Lama belie all such insinuations. 

On August 30 the Dalai Lama issued a further 
statement in which he announced his intention 
to appeal to the LTnited Nations for the verdict 
of all peace-loving and conscientious nations. 
His statement also contained "a personal appeal 
to all civilized countries to lend full support to 
our cause of freedom and justice." 

Finally, on September 9 the Dalai Lama ad- 
dressed an appeal to the Secretary-General for 
United Nations consideration of Tibet's case. 



which the distinguished representative of Malaya 
has already submitted to you. 
So much for the record of events. 

Report by International Commission of Jurists 

Now, Mr. President, it seems to us that there 
is no reason whatever for doubting one single 
thing that the Dalai Lama has said. But there 
are also other witnesses to this tragedy. Promi- 
nent among them is the International Commission 
of Jurists, a nongovernmental oi'ganization which 
has consultative status in the United Nations and 
is supported by 30,000 jurists in over 50 nations. 
Last July this group published in Geneva a pre- 
liminary report entitled "The Question of Tibet 
and the Rule of Law." 

Here ai'e some of the salient points in this 
report : 

1. The Chinese Communists have killed tens 
of tliousands of Tibetans and have deported thou- 
sands of Tibetan children. 

2. They have killed Buddhist monks and lamas 
on a large scale. 

3. They have destroyed Buddhist monasteries, 
desecrated holy places, and publicly humiliated 
religious leaders in a manner calculated to shock 
the people out of their age-old religious faith. 

4. They have subjected religious leaders and 
public officials to forced labor, arbitrary arrest, 
and torture. 

5. They have plundered Tibet on a wide scale, 
creating widespread hunger. 

Mr. President, considering these facts, the au- 
thors of the report then wrote these words: 

The rights of the Tibetans which appear to have 
been ruthlessly violated are of the most fundamental — 
even that of life itself. ... It is a question of conduct 
whicl; shocks the civilized world. . . . The evidence jwints 
to a systematic design to eradicate the separate national, 
cultural and religious life of Tibet. . . . 

It Is submitted, with a fuU appreciation of the gravity 
of this accusation, that the evidence points at least to a 
prima facie case of Genocide against the People's Repub- 
lic of China. This case merits full Investigation by the 
United Nations. 

That is the end of the quotation from tiiat 
report. It was based, let me say, in part on 
statements collected from Tibetan refugees mider 
the direction of tiie able Indian jurist, Mr. 
Purshottam Trilvamdas. Further material is be- 
ing collected which will form the basis of a com- 
prehensive report to be issued at a later date. 



686 



Department of State Bulletin 



Reform and Social Progress in Tibet 

Now, Mr. l're.sident, k't me say a word about 
the matter of reform and social progress in Tibet. 
The Soviet representative has sought to discredit 
the Dahii Lama by cliaracterizing his advisei-s as 
"a small band of feudal lords and abbots who have 
violated the i-ights of the Tibetan people." 

Mr. President, we submit that it is risky, to say 
the least, to judge a culture by a rigid system of 
ideas which is alien to that culture and whose ad- 
vocates consider that everyone else in the world — 
Buddhists, Christians, Jews, Muslims — are wrong 
and that they alone have all the answers. 

While the Tibetan way of life is permeated by 
the ideals of Buddhism, visitore to Tibet are struck 
with the kindness and helpfulness that Tibetans 
in all walks of life lavish on foreign guests. 
More than one foreigiier who thought of Tibet 
only as a primitive and backward land — which it 
is, measured solely by the standards of an indus- 
trialized society — has returned from Tibet with a 
great respect for the spiritual qualities of its 
people. 

C'apital punisliment used to be virtually un- 
known in Tibet. Before the arrival of the Chi- 
nese Communists other religions, such as that of 
the Muslims, were not subjected to restrictions. 
We can gage the atrocities which have been com- 
mitted in Tibet by the fact that these religious, 
peaceful, friendly people were driven beyond the 
limit of their endurance and took up arms against 
their oppressors. 

It is also noteworthy, in view of some of the 
things that have been said from this rostrum to- 
day, that the Chinese Communists should find it 
necessary to maintain large armies in order to per- 
suade the Tibetan people to accept the so-called 
benefits which one would have you believe they 
are trying to confer upon them, because prior to 
1950 there were no Chinese armed forces in Tibet. 
The small local Tibetan forces were adequate for 
all needs. 

The so-called Panchen Lama, at a meeting 
staged by the Chinese Communists recently in 
Peiping, said that "the flames" — and this is worth 
noting because it is an extraordinarily phrased 
declaration — "the flames of the democratic reform 
movement are spreading to every comer of Tibet's 
countryside." That has an incendiary sound 
which suggests the arsonist more than it does the 
political reformer. What in reality is happening 



is that the flames set by the Chinese Communist 
army are spreading over Tibet. 

This becomes apparent when you note what the 
vice chairman of the National Affairs Commission 
of Comnnmist China, whose name is Wang Feng, 
in discussing what would happen if any of the 
nationalities under the Commission's control 
should resist reform, said on September 27, 1959, 
which is very recent : 

It woukl then be necessary to resolutely pulverize their 
resistance in order to insure implementation of the reform. 

He thus made it clear that when the Communists 
speak of "reforms" they mean forceful communi- 
zation. 

Mv. President, Tibet's culture is ancient. Its 
monasteries prior to the advent of the Chinese 
Communists were considered priceless storehouses 
of Asian culture. Historians and religious lead- 
ers in many countries have acknowledged their 
debt to the lamas who have preserved through the 
centuries important documents unobtainable any- 
where else. Prior to their looting and destruction, 
Tibetan monasteries were also museums contain- 
ing religious statues, paintings, and tapestries of 
great artistic worth. 

The most distinctive feature of Tibetan culture 
is Lamaism. This is a manifold institution. La- 
maism combines into one all the religious, educa- 
tional, political, economic, and social institutions 
of Tibetan life. Everj' phase of existence in Ti- 
bet has a religious significance. 

A Tibetan monastery, in addition to caring for 
the spiritual life of the people, was also a com- 
prehensive educational institution. The larger 
ones were equivalent to universities accoiimiodat- 
ing thousands of monk-students. 

Now, Mr. President, nobody has argued that 
this way of life could go on forever in isolation 
from the rest of the world. The Dalai Lama is 
an enlightened leader. He himself stated on June 
22 of this year : 

During the last 9 years several reforms were proposed 
by me and my Government, but every time these meas- 
ures were strenuously opposed by the Chinese in spite of 
popular demand for them, with the result that nothing 
was done for the betterment of the social and economic 
conditions of the people. 

In particular it was my earnest desire that the system 
of land tenure should be radically changed without fur- 
ther delay and the large landed estates acquired by the 
state on payment of compensation for distribution 
amongst the tillers of the soil. But the Chinese author- 
ities deliberately put every obstacle in the way of carry- 



November 9, 1959 



687 



ing out this just and reasonable reform. I desire to lay 
stress on the fact that we, as firm believers in Buddhism, 
welcome change and progress consistently with the genius 
of our people and the rich tradition of our country. 

But the people of Tibet will stoutly resist any victimi- 
zation, sacrilege, and plunder in the name of reforms— a 
policy which is now being enforced by the representatives 
of the Chinese government in Lhasa. 

Surely there can be no better proof that the 
Cliinese Communists came to Tibet not bent on re- 
form but bent on power and domination. 

And now we have the spectacle of these deeply 
religious people, their monasteries laid low and 
their priests and leaders slaughtered or disgraced, 
being driven into the so-called people's communes. 
That camiot be represented as progress; it can- 
not be represented as reform. It can only be de- 
scribed as a crime wliich will not be forgotten by 
the civilized world. 

Solemn Obligation of United Nations 

Mr. President, on October 5th of this year Mr. 
Gyalo Thondup, the brother of the Dalai Lama, 
at a press conference in this city, declared that all 
that the people of Tibet desired was to be al- 
lowed to live their own life in peace and freedom. 
The Government of the United States whole- 
heartedly supports this desire, and it was in this 
spirit that the United States decided after careful 
consideration to support the initiative of Ireland 
and Malaya in bringing the question of Tibet be- 
fore this organization. 

The United Nations and the states represented 
here in the General Assembly have a solemn obli- 
gation to stand up for the charter and for the 
standards of decency in the behavior of nations 
which it contains. We cannot uphold those stand- 
ards one day and then ignore them the next day. 
If we follow such a haphazard course, the com- 
munity of nations will be undermined and small 
and weak nations will have nothing to which to 
appeal against the thi-eat of brute power. 

We have no magic, let me say as I conclude, by 
which we can save Tibet from its suiferings. But 
we are by no means powerless. We have the facts 
about the deeds whicli have been done. We have 
the standards of tlio charter by which to judge 



those facts. And we have in the General As- 
sembly the world's most influential voice by which 
to give expression to the opinions of civilized man. 
Among tlie purposes written in the charter is 
that of 

. . . promoting and encouraging respect for human 
rights and for fundamental freedoms for all without dis- 
tinction as to race, sex, language, or religion. 

Mr. President, we have an opportimity now to 
prove that those words mean what they say and 
that neither thousands of miles of distance nor 
ingenious arguments nor violent words nor f aint- 
ness of heart can deter us from our duty to a brave 
people in their time of agony. If they are not 
afraid to fight and die, let us at least not be afraid 
to speak the truth. 

TEXT OF RESOLUTION' 

The General Assembly, 

Recalling the principles regarding fundamental human 
rights and freedoms set out in the Charter of the United 
Nations and in the Universal Declaration of Human 
Rights adopted by the General Assembly on 10 December 
1948, 

Considering that the fundamental human rights and 
freedoms to which the Tibetan people, like all others, are 
entitled include the right to civil and religious liberty 
for all without distinction. 

Mindful also of the distinctive cultural and religious 
heritage of the people of Tibet and of the autonomy 
which they have traditionally enjoyed, 

Qravcly concerned at reports, including the official 
statements of His Holiness the Dalai Lama, to the effect 
that the fundamental human rights and freedoms of the 
people of Tibet have been forcibly denied them. 

Deploring the effect of these events in increasing inter- 
national tension and in embittering the relations between 
peoples at a time when earnest and positive efforts are 
being made by responsible leaders to reduce tension and 
improve international relations, 

1. Affirms its helicf that respect for the i)rinciples of 
the Charter of the United Nations and of the Universal 
Declaration of Human Rights is essential for the evolu- 
tion of a peaceful world order based on the rule of law ; 

2. Calls for respect for the fundamental hnnian rights 
of the Tibetan people and for their distinctive cultural 
and religious life. 



" U.N. doc. A/Res/1353 (XIV) ; adopted by the General 
Assembly on Oct. 21 by a vote of 45 to 9 (Soviet bloc), 
with 20 abstentions. 



688 



Department of State Bulletin 



Progress of the U.N. Special Fund 



Statement hy Cliri&tOTph&r H. Phillips 

U.S. Repr'esentative to the General Assembly ' 



In the 12th session of the General Assembly the 
United States delegation cosponsored and 
strongly supported the creation of a new instru- 
ment of the United Nations, the Special Fund. 
We recognized then, as we do now, the need for 
intensified economic research, for resource sur- 
veys, and for technical training — all essential to 
economic growth in many developing nations. 
We envisaged the proposed Special Fimd as a 
strong means of paving the way for new invest- 
ment of all types, public and private, national 
and international. 

Many member governments, in considering the 
idea of a Special Fund, understood the pertijience 
of the following quotation from the Teclmical 
Assistance Board's statement in its report entitled 
"A Forward Look" : - "Few underdeveloped 
countries have inventories of their natural re- 
sources or the institutions necessary to develop 
these inventories." 

Even where comitries know what their resources 
are, they frequently need help in deteiTnining the 
best uses to make of these resources. Research 
and experimentation in new and effective ways 
to use the materials at hand are the essence of 
economic development. On the basis of our own 
experience in the United States, we have been 
convinced that industrial and agricultural re- 
searcli pay off. 

On the initiative of many nations which believe, 
as we do, m the unportance of such basic pro- 
grams for industry and agi'iculture, the Special 



'Made in Committee II (Economic and Financial) on 
Oct. 5 (U.S. delegation press release .3232). Mr. Phillips 
is also U.S. Representative on the Economic and Social 
Council. 

= U.N. doc. E/288.5 and Corr. 1. 



Fund was established on Januaiy 1 of this year.^ 
From the beginning it undertook to concentrate 
in depth on resource surveys, teclmical research, 
and technical training projects. My delegation 
believes that the Managing Director [Paul Hoff- 
man] and his staff have done a remarkably ef- 
fective job in inaugurating a program in keeping 
with the aims envisaged by the General Assembly. 

Viewing Fund's Operations in Perspective 

It is less than 2 years since the Preparatory 
Committee for the Special Fund undertook to 
consider the principles and criteria which would 
guide the new organization : How should the new 
agency relate its work to existing United Nations 
bodies ? "WHiat coidd be done to assure sound and 
carefully executed projects of the kind best cal- 
culated to complement other economic programs 
of the comitries aided and thus to lend impetus 
toward worthwhile development? How much 
money could the Special Fund expect in contribu- 
tions from member governments ? 

These were some of the questions under discus- 
sion by representatives of governments interested 
in this endeavor, and they constitute, of course, 
some of the principal problems which Mr. Hoff- 
man has faced as Managing Director of the Spe- 
cial Fund. 

In May of this year the Managing Director 
presented the Special Fund's first program to the 
Governing Council.* Like many other members 
we expi-essed our satisfaction with the energetic 
way in which the Special Fund has undertaken 



' For baeligroimd and text of the resolution establish- 
ing the Fund, see Bulletin of Nov. 3, 1958, p. 702. 
* U.N. doc. SF/L. 18. 



November 9, 7959 



689 



its precedent-setting tasks. We indicated our ap- 
proval of the steps taken to launch the Fund and 
commended the Managing Director for the vision 
and leadership he had displayed. Along witli 
other members the United States endorsed tlie first 
list of projects approved by the Special Fund, 
while noting that these initial pi'ojects were not 
intended to constitute a precedent eitlier as to dis- 
tribution by area or selection of projects by type. 
We understood, ratlier, that these were simply all 
the sound projects tliat had been processed by the 
end of INIai'ch. We also joined in endorsing the 
criteria and principles proposed by the Managing 
Director to guide the Fund in its review of 
projects. 

We are gratified that, in the short time which 
has elapsed since the inception of this program, 
the record of the Special Fund and its report to 
ECOSOC clearly reveal that the work has gone 
forward extremely well. On behalf of the United 
States delegation may I express our admiration 
for the dynamic Managing Director and his capa- 
ble staff for the imagination, energj', and skill 
which they are devoting to their tasks. I would 
hesitate to praise a fellow American if he were 
not someone of the stature of Paul Hoffman, 
whose friends and admirers may be found all 
over the world. 

In the light of its energetic performance dur- 
ing the very short period of its existence, we are, 
even now, able to view the early operations of 
this promising United Nations activity in some 
perspective. There is reason to expect that proj- 
ects now under consideration will demonstrate 
the unique value of the Special Fund. We are 
confident that useful projects will be extended to 
additional underdeveloped areas of the world 
whenever nations which seek help can develop 
and submit projects of a type which tlie Fund 
can appropriately undertake. 

Both General Assembly resolution 1219 ^ of 
the 12th session and the report of tlie Preparatory 
Committee" state that the Fimd shall "provide 
systematic and sustained assistance in fields es- 
sential to the integrated teclmical, economic and 
social development of the less developed counti-ies." 

This guiding principle accepts the fact of a 
close relationsliip between social development and 



'■ liuLLBTiN Of Jan. 13, 1958, p. 71. 
• I'.N. doc. A/3908 and Corr. 1. 



economic development. By direct inference the 
General Assembly and the Special Fund itself 
recognize the likelihood that social projects will 
frequently be given a high priority where such 
projects "provide systematic and sustained assist- 
ance" to an integrated development program. 
We would therefore anticipate that, in addition to 
projects of a preinvestment type, those of a social 
and economic overhead nature will be supported 
when they are a sine qua non of significant devel- 
opment. 

There are some social categories of development 
which in various areas of the world bear an inti- 
mate relationship to economic progress. Eradi- 
cating endemic diseases, insuring unpolluted 
water supplies for human consumption, and pro- 
viding adequate housing are examples of activi- 
ties which in many cii'cumstances are inseparable 
from economic as well as social progress. In our 
opinion many projects in these fields deserve sup- 
port by the Special Fund. Among them are : 
concentrated research which can lead to more 
effective use of local building materials and which 
can train the trainers of construction artisans; 
technical training institutes; and higher institu- 
tions which can develop doctors, nurses, and sci- 
entists as well as economists, engineers, and ad- 
ministrators. Also in this category are demo- 
graphic studies important for economic and social 
development. 

Work of American Universities 

We note with approval that in the execution 
of Special Fund projects consideration is being 
given to the use of established institutions, such 
as universities and research institutes, to super- 
vise projects in their fields of competence. The 
United States, in its reply dated June 2, 1959, 
to the Secretary-General's request for informa- 
tion under General Assembly resolution 1316, 
adopted in the 13th session, and noted in docu- 
ment E/3258/Add.2, has pointed out the compre- 
hensive work which universities and researcli in- 
stitutes of the United States are doing to improve 
the living conditions of people in less" developed 
countries. 

In one academic j'ear alone — between 1957 and 
1958 — at least 184 American universities and col- 
leges were engaged in international programs of 
economic and social research and training, with 
an annual expenditure of $25 million to $30 mil- 



690 



Department of Stale Bulletin 



lion. Some of tliese programs are arranged di- 
rectly between our universities and those in other 
countries. Some are private agreements between 
our universities and foreign governments. Still 
othei-s are operated on contract with the Inter- 
national Cooperation Administration of the 
United States Government. In the latter category 
the ICA has entei-ed into some 80 contracts witli 
universities calling for cmnulative expenditures 
of more than $71 million in more than 30 foreign 
countries. 

For example, tlie Oklahoma State University 
lias helped set up an agricultural technical 
school in Ethiopia which now has an enrollment 
of over 210 students engaged in comprehensive 
agricultural training and research. The Univer- 
sity of Slichigan, in association with the Univer- 
sity of the Philippines, helped to establish an in- 
stitute of public administration in the Philip- 
pines which sinc« 19.56 has been completely oper- 
ated, administered, and staffed by Filipinos. 
More than 3,000 Philippine Government employ- 
ees have received training at this institute since 
the inception of the program. 

In Africa the United States National Academy 
of Sciences, in cooperation with the ICA and in 
association witli representative govermnents of 
the area, has been making an intensive survey of 
education, science, and technology south of the 
Sahara. The objective is to delineate those prob- 
lems of major significance to the well-being of the 
peoples in that area and to identify basic pro- 
grams wliich can contribute effectively toward the 
solution of some of the most pressing of these 
problems. This study, which is expected to be 
finished soon, will contain recommendations for 
various kinds of cooperation relating to scientific 
and technological development.^ 

These few examples of the many which miglit 
be mentioned are tangible indications that real 
help to developing countries is forthcoming from 
many sources in the fields of technical training 
and resource surveys. The skills and experience 
of the free world are being increasingly marshaled 
to seek solutions for the multitude of basic tech- 
nical problems. Engaged in these tasks are in- 
stitutions both public and private, both national 
and international. 



' For an announcement of the completion of tbe study, 
see Bulletin of Nov. 2, 1959, p. 634. 



We believe that the United States educational 
institutions which participate in these programs 
represent a good cross section of all geographic 
regions of the United States and practically all 
academic disciplines and are typical in their cali- 
ber and in their diversity of tlie finest scholarly 
traditions and practical achievements of the 
American people. 

I have spoken at some length about what Amer- 
ican universities are doing because I have the 
feeling that such nongovernmental activities are 
too little known and their importance too little 
appreciated as sources of fundamental research 
and training which can contribute a great deal on 
a reciprocal basis to the scientific, social, and eco- 
nomic advancement of developing areas. I am 
confident that this is equally true of such groups 
in many nations. The expei'ience of universities, 
private foundations, and other institutions of my 
country in cari-ying on this work suggests that the 
Special Fund will find it most useful to develop 
its relationship with such bodies in many countries 
toward the same end. 

Unique Role of the Fund 

The criteria established by the Preparatory 
Committee and the projects approved and con- 
templated by the Special Finid reveal that the or- 
ganization has staked out a field of activity which 
does not compete with the regular programs of 
tlie specialized agencies, particularly those respon- 
sible for capital financing, or with the work of the 
expanded program in the technical assistance 
field. 

It is worth noting also that the Special Fund is 
undertaking many tasks of an economic overhead 
nature which lay stress on industrialization and 
on the closely related fields of technical training 
and transport and communications. In the first 
13 projects approved by the Governing Council, 
six appear to be directly related to industrializa- 
tion or power development. Industrial training 
projects in Yugoslavia, Poland, India, and Tur- 
key, a regional one for Central America, and an 
electric-power survey for Argentina are all in 
this category. The Bangkok port channel survey 
is also closely related to industrial development. 

"Wliile we agree with the Managing Director as 
to the desirability of having additional agricul- 
tural development projects, at the same time the 
work thus far undertaken or contemplated by the 



November 9, 1959 



691 



Special Fund in the industrial field does appear 
to meet urgent needs and to complenaent other 
programs of the United Nations and the special- 
ized agencies. To the extent that the Special 
Fund encourages research, training, and resource 
surveys in the field of industrialization, it facili- 
tates subsequent economic development tlirough 
both public and private investment. 

The Managing Director of the Special Fund 
has made it clear on several occasions that in the 
course of just a few montlis practical projects 
have been proposed for approval beyond the lim- 
its of available funds. The hopeful portents of 
success for the Special Fund make it all the more 
necessary that contributions from member gov- 
ernments keep pace with the program of work 
which is evolving. 

The Managing Director, in his statement to the 
Governing Council in May of this year, placed 
great emphasis on obtaining adequate voluntary 



contributions. In this connection we regret that 
a substantial portion of the amoimt pledged to 
the Fund by the United States Government could 
not be used because the necessary matchmg con- 
tributions could not be obtained. We are encour- 
aged by the trend among some of the more eco- 
nomically developed nations toward increasing 
their contributions. For example, we are grati- 
fied by the announced decision of the United 
Kingdom to increase its contribution from $1 mil- 
lion to $5 million. We sincerely hope that not 
only will other economically advanced member 
states increase their contributions but that other 
nations will also do so, though on a more modest 
basis. If all member states do their part we can 
reasonably hope that the Special Fund will con- 
tinue to evolve into an instrumentality of the 
United Nations which can play a significant part 
in the development of less developed areas of the 
world. 



Planning Economic and Social Development 



Statement hy Walter M. Kotschnig 

Director, Office of International Economic and Social Affairs ' 



I should like to address myself to the subject 
matter of both items 6 and 7 of our agenda. Item 
6 is entitled "Planning the Pattern of Social Ex- 
penditure in Relation to Economic Expenditure 
and Social and Economic Needs." I would pre- 
fer to speak of patterns rather than of the pattern, 
for there are many possible patterns of plamiing. 
Item 7 reads "Methods of Coordinating and Inte- 
grating Economic and Social Development Pro- 
grammes." I want to take these items up to- 
gether since they are closely interrelated and so 
contingent upon eacli other as to be practically 
inseparable. 

Of all the papers put before the working party 
by the secretariat the paper L.8, entitled "Notes on 



' Made on Sept. 23 before the fifth session of the Work- 
ing Party on Economic Development and Planning of 
the Economic Commission for Asia and the Far East, 
held at Bangliok, Thailand, Sept. l!>-26. Mr. Kotschnig 
was tlie U.S. representative at the meeting. 



Policies and Methods of Coordinating and Inte- 
grating Economic and Social Development Pro- 
grammes," is, in my opinion, one of the best papers 
submitted to us and admirably balanced in itself. 
The paper starts out with a discussion of capital 
investment versus social expenditure. It points 
out that there is "much more to the expansion of 
national income than conventional capital invest- 
ment." It states that "there are important feed- 
back effects from social progress into economic 
growth." It emphasizes that "certain social con- 
ditions constitute infrastructure requirements for 
economic growth." 

The paper then proceeds to a discussion of 
"human investment," of the human clement in tlie 
development process. It speaks of the qualities, 
intangible most of them, which promote economic 
growth — efficiency, organizational cajtacity, initia- 
tive, energy and hard work, honesty, confidence in 
the future, skills and knowledge, inventiveness, 



692 



Departmenf oi Stafe bulletin 



ambition and drive, and several otliors. Many of 
these qualities, essential to growth, fall into the 
category of "variables," which plague the planner 
and particularly the mathematical economist. 

In this context the paper somewhat further on 
quotes a predecessor of mine, Mr. Simon Kuznets, 
an economist of repute, who represented the 
United States at an earlier meeting of this working 
party. Kuznets speaks of "the clearly increased 
importance of political and sociopsychological 
factors in the understanding of the economic 
growth of nations." He talks of "the helplessness 
of a mere economist when he observes, when he can 
observe, results of economic growth obviously 
ascribed to political factors and forces whose 
nature he cannot understand adequately." And 
he continues : 

The outcome is either withdrawal into the refuge of 
mathematical models operating with a few variables, or 
amateurish cogitations on a vast theme. One has the 
advantage of formal elegance, and the other, that of at 
least calling attention to the wider array of factors that 
have been taken into account ; but neither outcome is 
satisfactory. 

These are brave words, vrell spoken. 

Weakness of Totalitarian Approach 

I was reminded of these words when I listened 
yesterday with close attention to the brilliant 
speech of our Soviet colleague. I would like to 
make a few comments on what he said — not in 
a spirit of controversy but for purposes of 
clarification. 

Mr. [I. A.] Evenko reached the conclusion that 
there are no variables which defy quantification 
and, hence, all can be fed into electronic computers 
which will provide all the answers — when and 
where and in what to invest, what targets to set 
up, and how to attain them, and how the human 
equation in development can be solved. In his 
speech the computing machine did not emerge 
merely as the father picture, or the big brother, but 
as God himself. 

Mr. Chairman, it is far from my mind to belittle 
the remarkable achievements in the technological 
and even economic field in the U.S.S.R. To do so 
would be foolish and small-minded. But I still 
dare to submit that electronic computers are bet- 
ter suited to reach the barrenness of the moon than 
to create a happy society in which the individual 
can flower and develop his inner ricliness. 



As I see it, the basic weakness in the approach 
of Mr. Evenko — of the totalitarian approach to 
development — is that rather than to take into ac- 
count in tlie planning process the Innnan element, 
the more intangible variables, the totalitarian ap- 
proach tries to minimize or even eliminate that ele- 
ment. In order to have its econometric conclusions, 
its targets, come true, this approach bends human 
nature; it regiments the individual; it deprives 
him of his liberties ; it tells him where to go and 
what to do. In one word, it tends to turn the 
individual himself into a machine, to reduce him 
to the stature of a robot. Totalitarian planning 
of this type loses sight of the central purpose of 
economic development, which is the freeing of the 
individual not only from poverty and disease but 
from tlie ruthless encroachments of his basic rights 
by bureaucrats and the all-powerful state. 

This may be one way to development, but I sub- 
mit it is not the best way to economic and social 
development. Not only are the methods applied 
destructive of personality, but even the results, 
from a social point of view, do not appear to be 
commensurate with the sacrifices involved. We 
heard yesterday many impressive figures of 
progress, and I do not propose to question them, 
although much might be said about the militaiy 
expenditures in the Soviet Union to which the 
Soviet representative referred. In spite of these 
figures the fact remains that reed wages in the 
U.S.S.R., not to speak of other totalitarian regimes 
nearer to this part of the world, remain far below 
those wages paid in the free economies of the West, 
and particularly my own country. In spite of re- 
markable technical developments longer hours of 
work are required of the Soviet worker to earn 
enough to buy the basic necessities of life. This is 
a rather startling fact after 40 years of Soviet com- 
munism, even when one takes into account the late 
start of the U.S.S.R. in large-scale industrializa- 
tion and the ravages of the Second World War. 
There continues to prevail a painful shortage of 
consumer goods, a severely limited choice for the 
individual as to how to use his limited purchasing 
power. And there are continuing restrictions on 
mobility and limitations on other prerogatives of 
the individual. 

Achievements of Free Economies 

Leading spokesmen of this system of economic 
development acknowledge the lag between the 
achievements of the free economies of the West, 



Ho^emh&t 9, 7959 



693 



such as that of the United States, and their own 
economies. Particularly in recent months they 
have acknowledged the existence of higher levels 
of living in the Western World. (In parenthesis, 
I might add that the higher level of pi-oduction 
and of living in my own country is illustrated by 
the fact that in 1958 alone we have been able to 
make available more than $5 billion in foreign aid. 
I am grateful that several speakers attested to the 
fact that this aid, inter alia, has greatly helped 
them in fostering social development within their 
countries.) 

I do not need to belabor the greater achieve- 
ments of the free economies of the West for the 
simple reason that, even where they are not explic- 
itly accepted by Soviet leaders, they are implicitly 
acknowledged by their assertion that the Soviet 
economy "will overtake before long the economy 
of the United States." We in the United States 
view this kind of statement with equanimity al- 
though, since we are not standing still ourselves, 
we doubt whether these promises will be fulfilled. 
If so, we can only hope that further achievements 
in the teclmical and economic development of the 
Soviet Union will indeed be translated into higher 
levels of living for the peoples of the U.S.S.R., for 
we would like these peoples to have these higher 
standards of living. Unfortunatelj^ there is no 
indication that, whatever happens, "the state will 
wither away" — to use the famous dictum of Karl 
Marx — that there will be real social fulfillment 
and true freedom for the individual. 

Broader Approach to Economic Development 

At any rate, the cost in human negation, in suf- 
fering and deprivation, of this type of develop- 
ment seems to us so high as to make it essential 
that every effort be made to find more positive 
approaches to development, approaches which will 
not sacrifice whole generations to future targets, 
which will from the start of development take full 
account of the social element in economic 
development. 

Briefly what does this mean ? 

First of all, it does not mean the abandonment 
of national planning, including the use of ad- 
vanced econometric methods, of the computer. 
Such planning is highly desirable and iiseful pro- 
vided it takes into account to the fullest extent 
the human and humane element. It is essential 
also that the limitations of such planning be rec- 



ognized, that any plans developed are not to be 
considered immutable, that they are highly flex- 
ible and open to adjustment at all times. They 
must allow for the human equation and not at- 
tempt to mold and fashion individuals to meet 
targets rather than to fit the targets to the in- 
dividuals. 

Secondly, the approaches which I have in mind 
must provide for programs with early social im- 
pact, such as an emphasis on food production and 
the development of labor-intensive industries, it 
being understood, of course, that such programs 
should not be conceived so as to retard rather than 
advance fuller measures of industrialization. 

Third, social programs need to be developed 
which have an immediate or early impact on eco- 
nomic development. This includes programs of 
education, of health, the development of improved 
labor relations and organization, and the estab- 
lishment of minimum wages where possible. As 
I pointed out in an earlier intervention, the ac- 
ceptance of such programs may involve very diffi- 
cult choices. It may mean, for instance, that, in 
terms of short-range planning, limited resources 
may initially have to be concentrated deliberately 
on primary education for only part of the popu- 
lation in order to preserve resources for secondary 
education, particularly of the vocational and 
teclmical type necessary to meet pressing require- 
ments for trained personnel. Similarly, in the 
area of health, efforts may have to be concentrated 
on certain regions within a country where im- 
proved health conditions are most likely to increase 
production and to create new capital. Such tempo- 
rary imbalances, while difficult to defend on purely 
moral grounds, may be necessary in order to pro- 
vide necessary manpower where it can make the 
maximum contribution and create new resources 
for a more comprehensive development of the 
entire country. They can be defended on the 
grounds that they will advance rather than retard 
national development. 

Fourth, and above all, it is essential to secure 
the active participation and the commitment of the 
people in any development programs — not by 
force and regimentation but by pei-suasion and 
conviction. This means, on the one hand, that the 
people should bo given a chance to participate in 
the elaboration of plans. In saying this it must 
be realized, of course, that this principle has only 
limited applicability, duo to the complexity of 



694 



Department of Sfafe 6u//ef/n 



planninjj which often goes beyond the ken and 
understanding of the common man. However, 
every possible means of consultation should be used 
to ascertain needs and aspirations in order to 
create a sense of hope among the people, a sense 
of going forward. On the other hand, participa- 
tion of the people can and must be secured to the 
fullest extent on the local level in situations within 
the grasp of the people. It is on that level that 
initiative must be encouraged, and self-help, and 
the spirit of mutuality. This is an area in which 
the various programs of community development, 
both rural and urban, can make an outstanding 
contribution. 

Fifth, the broader approach of which I speak 
means recognition of the importance of the private 
sector in the economy. Private enterprise puts a 
premium on initiative and vision and should be 
encouraged even though certain basic controls may 
have to be established. Incidentally, there is noth- 
ing wrong with this idea of personal gain, as even 
totalitarian planners have recognized. The idea 
is not foreign to Soviet practice with its high 
norms set for individual workers which force them 
to special exertions to exceed the norms in order 
to attain higher wages. These practices may be 
presented as forms of so-called "socialist compe- 
tition,"' but frequently, in their emphasis on piece- 
work and payment by results, remind us of earlier 
"capitalist'' practices which with us are falling 
into disrepute. 

This last element of "free enterprise"' introduces 
and reaffirms the concept of the free marketplace 
which can go a long way in correcting errors made 
in overall planning, in adjusting plans to unfore- 
seen developments, in emphasizing the principle 
of free choice which in the short and in the long 
run is essential to social development in the fullest 
sense of the woi'd. 

Recognition of Importance of Social Advancement 

Mr. Chairman, just one final word. Let me say 
how deeply impressed I am by the fact that in this 
working party we are not only talking about 
balanced economic and social development but 
that the experts from the region present here are 
themselves demonstrating a remarkably balanced 
approach to the problems before us. There has 
been recognition of social advancement as the 
basic objective of economic development. There 
has been recognition of the importance of the 



social element in assuring economic development. 
And, above all, there has be«n recognition that 
there is more than one approach to success and 
that more than one approach has to be used. These 
ideas were reflected in speeches made by the repre- 
sentatives of India, Ceylon, and Indonesia; of 
Thailand, China, and Korea; of Pakistan, of 
Viet-Nam — I could go around the entire table and 
quote from statements made by experts from the 
region brought together in this working party. 
This, Mr. Chaii'man, in my opinion, is the best 
guarantee that this region with its infinite prob- 
lems, infinitely complex, is indeed on the way not 
to the perfect society but that it is squarely "on 
the threshold of modernity"— to use another phrase 
from the secretariat paper — and that from here 
on out we are moving along our several roads in 
a spirit of mutual help to a richer life in greater 
freedom. 



United States Delegations 
to International Conferences 

Inter-American Nuclear Energy Commission 

The Department of State announced on Oc- 
tober 19 (press release 733) the following U.S. 
delegation to the first meeting of the Int'^r- 
American Nuclear Energy Commission, which 
convened at Washington, D.C., October 20, 1959 : 

United States Representative 

John F. Floberg, Commissioner, Atomic Energy Commis- 
siou 

Alternate Representatives 

John A. Hall, Assistant General Manager for Interna- 
tional Activities, Atomic Energy Commission 

Charles A. Sullivan, Deputy Special Assistant to the 
Secretary for Disarmament and Atomic Energy, De- 
partment of State 

Senior Adviser 

Algie A. Wells, Director, Division of International Affairs, 
Atomic Energy Commission 

Advisers 

Paul C. Aebersokl, Director, Office of Isotopes Develop- 
ment, Atomic Energy Commission 

William A. Chapin, Office of the Special Assistant for 
Disarmament and Atomic Energy, Department of State 

Allan T. Dalton, Division of International Affairs, Atomic 
Energy Commission 

Stanley I. Grand, Office of United Nations Political and 
Security Affairs, Department of State 



November 9, J 959 



695 



George N. Monsma, Office of Inter-American Regional 
Political Affairs, Department of State 

Edward E. Sinclair, Division of International Affairs, 
Atomic Energy Commission 

George Spiegel, Office of the Assistant General Manager 
for International Activities, Atomic Energy Commis- 
sion 

This Commission, the statute for which was ap- 
proved April 22, 1959, is being set up within the 
Organization of American States to serve as a 
center of consultation for the member states and 
to facilitate cooperation among them in matters 
relating to the peaceful application of nuclear 
energy. A principal objective of the Commission, 
which was recommended by the Inter- American 
Committee of Presidential Representatives, is to 
assist the American Republics in developing a co- 
ordinated plan for research and training in nu- 
clear energy. 

The Commission's secretariat will become part 
of the staff of the Pan American Union, the gen- 
eral secretariat of the Organization of American 
States. 



Current U.N. Documents: 
A Selected Bibliography ^ 

Security Council 

Letter Dated 24 September 1959 From the Permanent 
Representative of the United Kingdom Addressed to the 
Secretary-General on the Question of Laos. S/4223. 
September 26, 1959. 4 pp. 

Letter Dated 7 October 1959 From the Permanent Rep- 
resentative of the United Arab Republic Addressed to 
the Secretary-General, Concerning the Decision Adopted 
on 6 October 1959 by the Egyptian-Israel Mixed Armi- 
stice Commission. S/4226 and Corr. 1. October 9, 1959. 
4 pp. 

Letter Dated 12 October From the Permanent Representa- 
tive of India, Addressed to the President of the Security 
Council, Concerning Jammu and Kashmir. S/4228. 
October 12, 1959. 2 pp. 

Letter Dated 15 October 1959 From the Permanent Rep- 
resentative of Yemen to the President of the Security 
Council Concerning British Actions Against Yemen. 
S/4229. October 16, 1959. 2pp. 

General Assembly 

Executive Committee of the High Commissioner's Pro- 
gramme. Progress Report on the UNREF Programme 
and on UNHCR Programmes for 1959 as of 30 June 
19.-/.). A/AC.96/35. August 27, 19,59. 130 pp. 

Executive Committee of the High Commissioner's Pro- 
gramme. Financial Statements of the United Nations 



' Printed materials may be secured in the United States 
from the International Documents Service, Columbia 
University Press, 2960 Broadway, New York 27, N.Y'. 
Other materials (mimeographed or processed documents) 
may be consulted at certain libraries in the United States. 



Refugee Fund for the Year 1958 and Report of the 
Board of Auditors Thereon. A/AC.96/46. September 
8, 1959. 22 pp. 

Executive Committee of the High Commissioner's Pro- 
gramme. 1960 Programme for Non-settled Refugees 
Living Outside Camps. Submitted by the High Com- 
missioner. A/AC.96/42. September 22, 1959. 23 pp. 

Information From Non-Self-Governing Territories. Offers 
of Study and Training Facilities Under Resolution 845 
(IX) of 22 November 1954. Report of the Secretary- 
General. A/4196. September 18, 1959. 19 pp. 

United Nations Conciliation Commission for Palestine. 
Seventeenth Progress Report for the Period From 1 
June 1958 to 31 August 1959. A/4225. September 22, 
1959. 10 pp. 

Executive Committee of the High Commissioner's Pro- 
gramme. Progress Report on Programme for New 
Hungarian Refugees. Submitted by the High Commis- 
sioner. A/AC.96/36. September 14, 1959. 32 pp. 

Report of the United Nations Good Offices Committee on 
South West Africa. Letter dated September 21, 1959, 
from the chairman of the Good Offices Committee on 
South West Africa addressed to the Secretary-GeneraL 
A/4224. September 23, 1959. 16 pp. 

Cessation of the Transmission of Information Under 
Article 73 e of the Charter : Communication From 
the Government of the United States of America. 
A/4226'. September 24, 1959. 59 pp. 

Economic Development of Under-developed Countries. 
Report by the Secretary-General on measures taken 
by the governments of member states to farther the 
economic development of underdeveloped countries in 
accordance with General Assembly re.solution 1316 
(XIII). A/4220. September 2.5, 1959. 124 pp. 

United Nations Emergency Force. Manner of financing 
the Force : report of the Secretary-General on consul- 
tations with governments of member states. A/4176/ 
Add. 1 and Corr. 1. September 25, 1959. 4 pp. 

Request for the Inclusion of an Additional Item in the 
Agenda of the Fourteenth Regular Session : Item Pro- 
posed by the B.velorussian Soviet Socialist Republic — ■ 
International Encouragement of Scientific Research 
Into the Control of Cancerous Diseases, 28 September 
1959. A/4233. September 28. 1959. 4 pp. 

Executive Committee of the High Commissioner's Pro- 
gramme. ReiKirt on the Implementation of General 
Assembly Resolution 1286 (XIII) on Assistance to 
Refugees From Algeria in Morocco and Tunisia. Sub- 
mitted by the High Commissioner. A/AC.96/37. 
September 28, 1959. 9 pp. 

The United Nations Library. Gift of the Ford Founda- 
tion. Report of the Secretary-General. A/4231. Sep- 
tember 29, 1959. 12 pp. 

Request for the Inclusion of an Additional Item in the 
Agenda of the Fourteenth Regular Session : Item Pro- 
posed by the Secretary-General — The United Nations 
Library : Gift of the Ford Foundation. A/4232. Sep- 
tember 29, 1959. 1 p. 

Request for the Inclusion of an Additional Item in the 
Agenda of the Fourteenth Regular Session: Item Pro- 
posed by the Federation of Malaya and Ireland — The 
Question of Tibet. Letter dated 28 September 1959 
from the permanent representatives of the Federation 
of Malaya and Ireland to the United Nations, addressed 
to the Secretary-General. A/4234. September 29, 
1959. 2 pp. 

Progress and Operations of the Special Fund. Note by 
the Secretary-General. A/4217/Add. 1. October 1, 
1959. 9 pp. 

Progress Achieved by the Non-Self -Governing Territories 
in Pursuance of Chapter XI of the Charter : Inter- 
national Technical Assistance to Non-Self-Governing 
Territories. Report prepared by the Secretariat. 
A/4395. October 5, 1959. 33 pp. 

Reservations to Multilateral Conventions : the Convention 
on the Inter-governmental Maritime Consultative Or- 



696 



Department of State Bulletin 



ganlzation. Report of the Secretary-General. A/4235. 
October 0. 19.7J. Jit pp. 
Question of South West Africa. Statement made by the 
representative of the Union of South Africa at the DOOth 
meeting of Committee IV. A/C.4/421. October 13, 
1959. 43 pp. 



a corporation in one country to a corporation in 
the other country. It is also provided that each 
country shall exempt from tax the dividends paid 
to persons other tlian its citizens, residents, or 
corporations by a corporation of the other country. 



TREATY INFORMATION 



Income-Tax Convention 

With Norway Enters Into Force 

I'ress release 740 dated October 21 

On October 21, 1959, Secretary Herter and Paul 
Koht, Norwegian Ambassador at Wasliington, ex- 
i hanged the instruments of jatification with re- 
spect to the supplementary income-tax convention 
which was signed at Oslo on July 10, 1958 ^ (con- 
vention between the United States and Norway, 
modifying and supplementing the convention of 
June 1.3, 1949,- for the avoidance of double taxa- 
tion and the prevention of fiscal evasion with re- 
spect to taxes on income) . 

The supplementary convention was brought into 
force by the exchange of the instruments of ratifi- 
cation. According to its terms the supplementary 
convention is efi'ective with respect to taxable years 
beginning on or after January 1, 1960. 

Unlike most of the income-tax conventions to 
which the United States is a party, the convention 
of 1949 with Norway did not provide for a reduc- 
tion of the withholding tax on dividends. The 
supplementary convention modifies the tax treat- 
ment of dividends along the lines of U.S. conven- 
tions with other countries. It provides for a with- 
holding rate of 15 percent on dividends paid by 
a corporation of one country to recipients in the 
other country. Consistent with the principle in 
the 1949 convention, this reduced rate will not 
apply to a recipient of dividends engaged in busi- 
ness through a permanent establishment in the 
country from which the dividends are paid. The 
supplementai-y convention, with certain qualifying 
limitations, further provides that the withholding 
tax shall not exceed 5 percent on dividends paid by 



' Bulletin of Aug. 4, 195S, p. 222. 

'Treaties and Other International Acts Series 2358. 



Current Actions 

MULTILATERAL 
Finance 

Articles of agreement of the International Finance Cor- 
poration. Done at Washington May 25, 1955. Entered 
into force July 20, 1956. TIAS 3620. 
Signature and acceptance: Argentina, October 13, 1959. 

Telecommunication 

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: Viet-Nam, September 1.5, 1959. 

International telecommunication convention. Signed at 
Buenos Aires December 22, 1952. Entered into force 
January 1, 1954. TIAS 3266. 
Ratification deposited: Colombia, September 18, 1959. 



BILATERAL 

Indonesia 

Agreements amending the agricultural commodities agree- 
ment of May 29, 19.59 (TIAS 4248). Effected by ex- 
changes of notes at Djakarta October 1, 1959. Entered 
into force October 1, 1959. 

Israel 

Agreement amending the technical cooperation joint fund 
program agreement of May 9, 1952 (TIAS 2.570), as 
amended. Effected by exchange of notes at Tel Aviv 
June 26 and at Jerusalem September 24, 1959. Entered 
into force September 24, 1959. 

Japan 

Agreement amending the agreement of May 14, 19.54 
(TIAS 2985), and the proces-verbal of January 18, 1055 
(TIAS 3162), for the loan of United States naval ves- 
.sels to Japan. Effected by exchange of notes at Tokyo 
October 2, 1959. Entered into force October 2, 1959. 

Netherlands 

Agreement approving the procedures for reciprocal filing 
of classified patent applications. Effected by exchange 
of notes at The Hague October 8, 1959. Entered into 
force October 8, 1959. 

Norway 

Convention modifying and supplementing the convention 
of June 13, 1949 (TIAS 2357), for the avoidance of 
double taxation and the prevention of fiscal evasion 
with respect to taxes on income. Signed at Oslo July 
10, 1958. 

Ratifications exchanged: October 21, 1959. 
Entered into force: October 21, 1959. 

Pakistan 

Agreement further amending the agricultural commodities 



' Not in force. 



Hovember 9, J 959 



697 



agreement of November 26, 1958, as amended (TIAS 
4137 and 4257). Effected by exchange of notes at Ka- 
rachi October 7 and 8, 1059. Entered into force Octo- 
ber 8, 1959. 

United Arab Republic 

Agreement amending the agreement of May 5, 1959 (TIAS 
4223), supplementing and amending the agricultural 
commodities agreement of December 24, 19.58 (TIAS 
4147). Effected by exchange of notes at Cairo October 
14, 1959. Entered into force October 14, 1959. 

Yemen 

Agreement supplementing and extending the agreement of 
June 24 and 30, 19.59 ( TIAS 4280 ) , granting special eco- 
nomic assistance to finance wheat transportation costs 
in Yemen. Effected by exchange of notes at Taiz Octo- 
ber 3 and 4, 1959. Entered into force October 4, 1959. 



DEPARTMENT AND FOREIGN SERVICE 



(13) The function conferred upon the Secretary of 
State by section 4(d) (7) (iii) of Executive Order 10.560 
of supervising and directing the Development Loan Fund 
with respect to that order. 

3. This Delegation of Authority shall be deemed to have 
become effective June 25, 1959. 

Dated : October 12, 1959. 



[seal] 



Recess Appointments 



Christian A. Hebteb, 
Secretary of State. 



The President on October 20 appointed Edson O. Ses- 
sions to be Ambassador to Finland. (For biographic de- 
tails, see Department of State press release 739 dated 
October 20.) 

Designations 

John M. Steeves as Deputy Assistant Secretary for Far 
Eastern Affairs, effective October 19. 



Delegation of Certain Functions 
Under Mutual Security Act 

Administbation of Mutual Security Act of 19.54 and 
Delegation of Certain Related Functions ' 

By virtue of the authority vested in me by Executive 
Order No. 10560, as amended, section 4 of the Act of May 
26, 1949 (63 Stat. Ill, 5 U.S.C. 151c), as amended, and as 
Secretary of State, Delegation of Authority No. 85 of 
June .30, 1955 (20 F.R. 4825), as heretofore amended, is 
amended as follows : 

1. The unnumbered, introductory paragraph is amended 
by inserting "10560, Executive Order No. 10575, Execu- 
tive Order No." after "Executive Order No.". 

2. Section 2 a. is amended by substituting "and furnish- 
ing foreign jwlicy guidance thereto ;" for the period at the 
end of subparagraph (9), and by adding the following 
new subparagraphs (10), (11), (12), and (13): 

(10) The function which the Department of State is 
authorized to carry out by section 4(a) (1) of Executive 
Order 10560 of allocating or transferring foreign curren- 
cies to the Development Loan Fund ; 

(11) The function conferred upon the Department of 
State by section 4(d)(4) of Executive Order 10560 of 
carrying out the purposes of sections 104(d) and 104(e) 
of the Agricultural Trade I^ovclopment and Assistance Act 
of 1954 except to the extent that section 104(e) pertains 
to the loans referred to in section 4(d) (5) of Executive 
Order 10500 ; 

(12) The functions conferred upon the Department of 
State and the Secretary of State by sections 4(d) (7) (1) 
and 4(d) (7) (ii), respectively, of Executive Order 10560, 
relating to foreign currencies available to carry out the 
purposes of seel ion 104(g) of tlie Agricultural Trade De- 
velopment and Assistance Act of 1954 ; 



Check List of Department of State 
Press Releases: October 19-25 

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

Release issued prior to October 19 which appears 
in this issue of the Bulletin is No. 732 of October 
18. 



No. 
733 

734 
735 



' Public notice 160 ; 24 Fed. Reg. 8555. 



Date 

10/19 

10/19 
10/19 



736 10/19 



Subject 

Delegation to Inter-American Nuclear 
Energy Commission (rewrite). 

Flood relief for India (rewrite). 

Assistant Secretary Jones to visit 
South Asia. 

Advisers to U.S. delegation to Antarc- 
tica conference (rewrite) (printed 
in Bulletin of Nov. 2, 1959). 

Jordan credentials (rewrite). 

Murphy: "The Shape of American 
Policy." 

Sessions appointed Ambassador to 
Finland (biographic details). 

Income-tax convention with Norway. 

Premieres of U.S. and Soviet films. 

U.K. removes exchange restrictions 
for British foreign travel. 

Third anniversary of Hungarian revo- 
lution. 

Leghorn appointment. 

Murphy : "I'nited States Foreign 
Policy in Europe." 

Foreign students call on Secretary 
Herter. 

15th session of GATT (delegation). 

B-29 case removed from K'J i^alendar. 

Cultural exchange (Argentina). 

I'rogram for visit of President of 
Guinea (rewrite). 

Japanese trade mission visits U.S. 



•Not printed. 

tlleld for a later issue of the Bulletin. 



737 

738 


10/20 
10/20 


♦739 


10/20 


740 
741 

742 


10/21 
10/21 
10/22 


743 


10/22 


744 
t745 


10/22 
10/22 


•746 


10/22 


747 

7-18 

•749 

•750 


10/23 
10/23 
10/23 
10/23 


751 


10/24 



698 



Department of Sfofe Bulletin 



November 9, 1959 



Index 



Vol. XLI, No. 1063 



Agriculture. Food for Peace (Paarlberg) . . . 672 
American Republics. Inter-American Nuclear En- 
ergy Commission (delegation) 095 

Asia 

Assistant Secretary Jones Departs for South 

Asia C70 

Planning Economic and Social Development (Kot- 

scliuig) ()92 

Steeves designated Deputy Assistant Secretary for 
Far Eastern Affairs 60S 

Atomic Energy. Inter-American Nuclear Energy 

Commission (delegation) 695 

Aviation. B-29 Case Removed From Calendar of 

International Court of Justice 670 

China, Communist. The Shape of American Policy 

(Murphy) 659 

Claims. B-29 Case Removed From Calendar of 

International Court of Justice 670 

Congress, The. Congressional Documents Relating 

to Foreign Policy 682 

Cultural Exchange. U.S. and U.S.S.R. Show First 

Films Under Exchange Agreement 671 

Department and Foreign Service 

Delegation of Certain Functions Under Mutual 

Security Act (text of public notice) .... 698 

Designations (Steeves) 698 

Recess Appointments (Sessions) 698 

Disarmament 

Deputy for Technical Affairs Named to Disarm- 
ament Study 679 

Great-Power Cooperation in the United Xations 

(Wilcox) 663 

The Shaiie of American Policy (Murphy) .... 659 

Economic Affairs 

British End Exchange Restrictions on Travel 

to U.S 682 

Food for Peace (Paarlberg) 672 

GATT Ministerial Meeting To Convene at Tokyo 

(delegation) 679 

Income-Tax Convention With Norway Enters Into 

Force 697 

IMF Announces Decision on Discriminatory Re- 
strictions (text of decision) 681 

Japanese Trade Mission Visits United States . . 682 

Planning Economic and Social Development (Kot- 
schnlg) 692 

Progress of the U.N. Special Fund (Phillips) . . 689 

Finland. Sessions appointed Ambassador . . . 698 

Hungary. Commemoration of Anniversary of Hun- 
garian Revolution 670 

India. Flood-Relief Aid Sent to India 679 

International Information. U.S. and U.S.S.R. Show 

First Films Under Exchange Agreement . . . 671 

International Law. B-29 Case Removed From 

Calendar of International Court of Justice . . 670 



International Organizations and Conferences 

GATT Ministerial Meeting To Convene at Toliyo 

(delegation) 079 

Inter-American Nuclear Energy Commission (dele- 
gation) 095 

IMF Announces Decision on Discriminatory Re- 
strictions (text of decision) 081 

Japan. Japanese Trade Mission Visits United 

States 082 

Jordan. Letters of Credence (Haikal) .... 079 

Mutual Security 

Delegation of Certain Functions Under Mutual 

Security Act (text of public notice) .... 098 

Flood-Relief Aid Sent to India 679 

Food for Peace (Paarlberg) 672 

Norway. Income-Tax Convention With Norway 

Enters Into Force 697 

Tibet. General Assembly Calls for Respect for 
Rights of Tibetan People (Barco, Lodge, text of 
resolution) 683 

Treaty Information 

Current Actions 697 

Income-Tax Convention With Norway Enters Into 
Force 697 

U.S.S.R. 

B-29 Case Removed From Calendar of Interna- 
tional Court of Justice 670 

Food for Peace (Paarlberg) 672 

(jreat-Power Cooperation in the United Nations 

(Wilcox) 003 

The Shape of American Policy (Murphy) .... 659 

U.S. and U.S.S.R. Show First Films Under Ex- 
change Agreement 071 

United Kingdom. British End Exchange Restric- 
tions on Travel to U.S 682 

United Nations 

Current U.N. Documents 696 

General Assembly Calls for Respect for Rights of 
Tibetan People (Barco, Lodge, text of resolu- 
tion) 083 

Great-Power Cooperation in the United Nations 

(Wilcox) 663 

Planning Economic and Social Development (Kot- 

schnig) 692 

Progress of the U.N. Special Fund (Phillips) . . 689 

Name Index 

Barco, James W 683, 684 

Haikal, Yusuf 679 

Herter, SecretaiT 698 

Jones, G. Lewis 679 

Kotschnlg, Walter M 692 

Leghorn, Richard S 679 

Lodge, Henry Cabot 684 

Murphy, Robert 659 

Paarlberg, Don 672 

PhlUlp.s, Christopher H 689 

Sessions, Edson O 698 

Steeves, John M . . 698 

Wilcox, Francis O 663 



U.S. GOVERNMENT PRINTING OFFICE:1959 



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OFFICIAL BUSINESS 



United States Foreisn Policy 
in a New Age 



This pamphlet — the newest iii the Department of State's popular 
Backffroimd series — discusses : 

• The United States, the Soviet Union, and the United Nations 

• Soviet Diplomacy : A Challenge to Freedom 

• The Challenge of the Underdeveloped Areas 

• The World Health Organization 

• The International Atomic Energy Agency 

• International Cooperation in the Use of Outer Space 

• The Creation of a Permanent U.N. Emergency Force 

• Accomplishments of the United Nations 

The 36-page pamphlet, illustrated with photographs, is based 
on excerpts from addresses and statements by Francis O. Wilcox, 
Assistant Secretary for International Organization Affairs. 



Publication 6864 



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Boston Public Library 
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|jANlTl960 

DEPOSITORY 
Vol. XLI, No. 1064 November 16, 1959 

STRENGTHENING THE ECONOMIC FOUNDATIONS 
OF AN INTERDEPENDENT WORLD • Statement by 

Under Secretary Dillon and Text of GATT Communique , . 703 

UNITED STATES FOREIGN POLICY IN EUROPE • fay 

Under Secretary Murphy 710 

U.S. EXPRESSES CONCERN TO CUBA OVER STATE 

OF RELATIONS 715 

FUTURE OF THE SOUTHERN CAMEROONS • State- 
ment by Clement John Zablocki and Text of Resolution . . 730 

GUINEA AND UNITED STATES AFFIRM TIES OF 

FRIENDSHIP 719 



«ITED STATES 
IREIGN POLICY 



For index see inside hack cover 



THE DEPARTMENT OF STATE 




Vol. XLI, No. 1064 • Pubucation 6907 
November 16, 1959 



For sale by the Superintendent of Documents 

U.S. Government Frlnllng Office 

Washington 26, D.O. 

Price: 

E2 Issues, domestic $8.60, foreign $12.26 

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The print Ing of thip publication has been 
approved by the Director of the Bureau ot 
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yole: Contents of this publication are not 
copyrlghlcd and Items contained herein may 
be reprinted. Citation of the Department 
OP State BULLETm as the source will be 
appreciated. 



The Department of State BULLETIN, 
a tueekly publication issued by the 
Public Services Division, Bureau of 
Public Affairs, provides the public 
and interested agencies of the 
Government utith 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 ivell as 
special articles on vtirious phases of 
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and international agreements to 
ichich the United States is or may 
become a party and treaties of gen- 
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Publications of the Department, 
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strengthening the Economic Foundations of an Interdependent World 



STATEMENT BY UNDER SECRETARY DILLON' 

This session of the Contracting Parties to the 
General Agreement on Tariffs and Trade is a sig- 
nificant occasion. We have moved from our cus- 
tomary meeting place in Geneva to convene for 
the first time in one of the world's great indus- 
trial and commercial centers. By so doing we 
widen public understanding of the important 
work of GATT and gain for ourselves a better 
appreciation of the trade problems which con- 
front member countries. 

It is, I think, especially fitting that we have in- 
augurated this new tradition in Tokyo, the capi- 
tal of a nation whose economic future is so heavily 
dependent on the healthy expansion of world 
trade, which it is the business of GATT to promote. 
The Japanese Goverrmient and people have done 
everything possible to make our meeting here suc- 
cessful and pleasant. My Govenmaent thanks 
them for their gracious hospitality. 

This meeting at Tokyo is particularly signifi- 
cant, for the time is at hand when we must press 
forward with greater vigor than ever befoi'e in 
the task of freeing international trade from dis- 
criminations and restrictions. Success in this ef- 
fort is essential to assure economic growth and 
raise standards of living in the industrialized and 
less developed nations alike. 

The members of GATT have initiated a new 
program for the further expansion of trade. They 
have agreed to another general negotiation for the 
reduction of tariffs, to begin in 1960. They have 
established special procedures to study the difficult 
problem of agricultural protectionism around the 
world. And they have undertaken an analysis of 

" Made on Oct. 27 at the Ministerial Meeting of the 
15th session of the Contracting Parties to the General 
Agreement on Tariffs and Trade, which convened at 
Tolfyo, Japan, Oct. 26 (press release 75.5 dated Oct. 26). 
For an announcement of the meeting and a list of the 
U.S. delegation, see Bulletin of Nov. 9, 1959, p. 679. Mr. 
Dillon was the U.S. ministerial representative. 



ways to increase the export earnings of the less 
developed countries. It is the hope of my Gov- 
ernment that at our present session we will give 
further impetus to all three parts of this new pro- 
gram for trade expansion. 

The year just past has been one of remarkable 
economic advance in many sectors of the economy 
of the free world. The United States has re- 
covered from the recession of 1957-58 and has 
moved to new highs in economic output. In West- 
ern Europe and Japan renewed economic expan- 
sion is taking place, and these nations have very 
substantially increased their gold and foreign- 
exchange reserves. These developments, together 
with the actions of the Western European coun- 
tries last December in making their currencies 
convertible on external account, have opened the 
door to a period of great progress in international 
trade. But unless we move forward while we can 
there is the unpleasant prospect that the oppor- 
tunity for progress may be lost. If forward steps 
are not now taken, I am afraid that the trend 
toward greater freedom of trade may be reversed. 
For the present situation is inherently unstable 
and cannot be long maintained. Either we move 
ahead to get rid of outmoded trade restrictions, 
or we can expect a resurgence of protectionism and 
restrictive action. 

U.S. Balance-of-Payments Deficit 

The substantial gain in gold and foreign ex- 
change reserves in other industrial countries has 
been associated with an exceptionally large deficit 
in the balance of payments of the United States 
during the last 2 years. Briefly, the facts are 
these : 

The United States is currently running a sur- 
plus of exports of goods and services at a rate 
of about $3.5 billion annually. This surplus, how- 
ever, has not been adequate to cover the large pay- 
ments by the United States to the rest of the world 



November 16, J 959 



703 



which have resulted from our policies of assisting 
the development of the less developed areas, of 
encouraging the flow of private investment 
abroad, and of helping to maintain defensive 
sti-ength overseas in the interest of the security 
of the free world. Net United States Government 
grants, loans, and other capital outflow, most of 
which are associated directly or indirectly with 
United States exports, are running at about $2.5 
billion annually. The outflow of private capital 
accounts for an additional $2 billion. And, 
finally, United States military expenditures 
abroad are about $3 billion per year. 

If we measure the overall deficit in the U.S. 
balance of payments by the net transfers of gold 
and liquid dollar assets from the United States to 
the rest of the world, we find that the deficit was 
$3.4 billion in 1958 and is expected to be around $4 
billion this year. Deficits of this magnitude can- 
not of course continue. For our part we have 
adopted domestic fiscal and monetary policies di- 
rected toward financial stability, including a 
balanced budget in the current fiscal year. 

There are signs of improvement in our exports, 
and we look forward to some improvement in our 
payments situation next year. But, if this deficit 
is to be reduced to proportions consistent with 
healthy world trade, prompt action is required by 
other countries as well. This action should be 
designed to expand world trade for the greater 
prosperity of all and thus avoid the undesirable 
alternative of restrictive measures to balance world 
trade at lower and less prosperous levels. 

Removal of Trade Discriminations Important 

The most important immediate step wliich 
should be taken in this direction is the prompt re- 
moval of the remaining trade discriminations — 
the legacy of postwar economic conditions which 
no longer prevail— wliich liave applied with spe- 
cial severity against imports from dollar areas. 

The restoration of external convertibility to the 
main trading currencies of the world, made pos- 
sible by the economic recovery of the other in- 
dustrial countries and the marked shift in the 
world payments situation, has removed any bal- 
ance-of-payments justification for discriminatory 
restrictions by countries whose export earnings are 
largely in convertible currencies. The continua- 
tion of discrimination can only weaken the world 
economic system and the international trade and 

704 



financial institutions which all of us have labored 
so hard to strengthen. Of equal importance, con- 
tinued discrimination will make it exceedingly dif- 
ficult for the United States and other affected 
countries to maintain forward-looking trade poli- 
cies. The removal of discriminator}' trade restric- 
tions is therefore important to all of the Contract- 
ing Parties — not merely to the United States and 
those other countries to whose trade these discrimi- 
nations have been applied. 

I do not mean to overlook the progress that has 
taken place. We appreciate the recent steps taken 
by several countries — Australia, France, Malaya, 
the Netherlands, New Zealand, and the United 
Kingdom, among others — to reduce discriminatory 
restrictions. We strongly feel, however, that the 
time has come to do away with discriminatory re- 
strictions altogether. This task sliould be com- 
pleted during the next few months. We therefore 
lieartily endoree the statement presented to the 
Contracting Parties by the International Mone- 
tary Fund, making clear the Fund's view that dis- 
criminations generally are no longer justifiable on 
balance-of-payments grounds.^ 

I would hope that the representatives of Con- 
tracting Parties at this Ministerial Meeting will 
expi'ess their support of the principle that the dis- 
criminatory application of quantitative restric- 
tions under article XIV of the General Agreement 
must quickly be brought to an end, taking into ac- 
count the special considerations referred to in the 
Fimd decision. The consensus that emerges from 
the ministerial discussions could be reflected in tlie 
annual report on the discriminatoiy application of 
import restrictions, to be prepared by the Contract- 
ing Parties at this session in compliance with 
article XIV: 1(g) of the General Agreement. 

The improved financial position of the other in- 
dustrialized countries also means that many of 
them will be able to dispense entirely with all 
quantitative restrictions, whether or not discrimi- 
natory, which were previously needed to protect 
the balance of payments. The United States 
i-ecognizes that in some cases a limited period of 
time may be required to complete the elimination of 
all quantitative restrictions and that in the case 
of certain products limited waivers from GATT's 
basic rules may be necessary. However, the 
United States and other GATT countries which 
have not resorted to balance-of-payment restric- 



' For text, see Bulletin of Nov. 9, 1959, p. G81. 

Department of Sfafe Bulletin 



tions are entitled to expect that this period be short 
and that, where continued restrictions are per- 
mitted under waivers, the count i"y benefiting from 
the waiver will make every effort to remove the 
permitted restrictions at the earliest possible mo- 
ment. 

Economic Problems of Less Developed Countries 

While the economies of tlie industrial countries 
have been expanding, many of the less developed 
countries have continued to face serious economic 
problems. The progress of a number of these 
countries has been held back by the exceptional 
difficulties which they faced in their struggle to 
achieve self-generating economic growth. Also 
their problems have been intensified in recent years 
by the general decline in the prices of primary 
products, although some improvement of these 
prices has now taken place. 

The United States has provided, and will con- 
tinue to provide, financial and technical assistance 
to the less developed countries. "VVe are doing this 
bilaterally and through various international or- 
ganizations. We are pleased that at the recent 
meeting of the Governors of the World Bank in 
Washington it was agreed to draft a charter for 
an International Development Association to sup- 
plement existmg financial resources available for 
development assistance.^ We also hope and expect 
that other industrial countries will increasingly, 
through their own programs, share in the respon- 
sibility of providing capital for development 
purposes. 

Capital alone, however, can do only part of the 
job. As we all know, expanded trade is vitally 
important to the growth of these countries. Im- 
ports must be relied upon to supply most of the 
capital equipment for new industries, some of the 
food needed for the nourislmient of rapidly in- 
creasing populations, and some of the raw mate- 
rial supplies for manufacturing. As populations 
grow, living standards improve, and diversifica- 
tion and industrialization progress. The import 
needs of these countries will also grow. Only a 
portion of these increasing import requirements 
can be met by an inflow of capital from the in- 
dustrialized countries. In short, less developed 
countries must export if they are to achieve ade- 
quate economic growth. 

We must continue to search for practical solu- 



'For background, see ibid., Oct. 19, 1959, p. 531. 



tions. The prelimuiary reports of Committee II, 
relating to agricultural protectionism, and Com- 
mittee III, relating to specific barriers to exports 
from less developed areas, represent a beginning. 
It is important that the continuing work of these 
committees be done thoroughly and carefully so 
that the conclusions which emerge will be useful 
to governments in deciding upon practical courees 
of action. We may also take encouragement from 
the steps which have been taken to deal co- 
operatively with the problems of individual 
commodities. The activities of the GATT, the 
United Nations Commission on International 
Commodity Trade, the Food and Agriculture Or- 
ganization, and the specialized commodity study 
groups represent a broad, well-balanced approach 
to the trade problems of the less developed coun- 
tries and place us in a better position than before 
to make headway against them. 

Problem of Exports From Low-Wage Countries 

Another difficult problem which is becoming 
more acute is that of exports of manufactures 
from countries with relatively low wages, espe- 
cially as productive capacity in these countries 
hicreases. Various measures to limit the expan- 
sion of such exports have been applied by export- 
ing as well as importing countries. Quantitative 
restrictions on imports by higher income countries 
have not been eased as rapidly as improved eco- 
nomic and fuiancial conditions would warrant. 
The United States believes these countries should 
mamtain steady, if gradual, increase in imports of 
manufactured products from the low-wage coun- 
tries. This is in their own economic interest as 
well as in that of the supplying countries. 

We are particularly concerned that 14 countries 
still deny to Japan the full benefits of the Gen- 
eral Agreement. We believe that the continuation 
of this situation, for whatever reasons, weakens 
the structure of the General Agreement and should 
be remedied as soon as possible. We strongly 
support Japan's hopes for full and equal treat- 
ment with other nations under the GATT. 

It is, of course, recognized that sharp increases 
in imports, over a brief period of time and in a 
narrow range of commodities, can have serious 
economic, political, and social repercussions in the 
importing countries. The problem is to find the 
means to ameliorate the adverse effects of an 
abrupt invasion of established markets while con- 



November 16, 1959 



705 



tinuing to provide steadily enlarged opportunities 
for trade. 

What can be done to meet this problem ? We do 
not pretend to have the answer ourselves and 
would welcome comments from others. 

Perhaps it would be appropriate for the Con- 
tracting Parties to establish a panel of experts 
to study this question. 

Tariff Negotiations and the EEC 

One of the most important activities of the Con- 
tracting Parties during the next few years will 
be to carry out successfully a new major tariff ne- 
gotiation. Committee I has completed its prepara- 
tory work for these negotiations and has submitted 
to us an excellent report, which merits our 
approval. 

There is, however, one aspect of tlie arrange- 
ments for the tariff negotiating conference which 
is a cause for serious concern. It is, I believe, 
widely recognized that a test of the success of these 
negotiations will be the extent to which effective 
results are achieved in negotiating downwai-d the 
level of the common tariff of the European Eco- 
nomic Community. If such results are to be ac- 
complished, it is essential tliat as many GATT 
countries as possible participate in negotiations 
with the Community. My Government strongly 
hopes that all countries will signify their willing- 
ness to participate at an early date. Failure to 
do so could, in our opinion, gravely prejudice the 
prospects for really worthwliile results. More 
than that, unless there is broad participation in 
these negotiations, we may all stand to lose the 
most favorable opportunity to gain wider markets 
for exports to the Six.'' 

At this session, as on previous occasions, the 
Contracting Parties will receive a report from the 
European Economic Community on the progi-ess 
made under the Treaty of Eome. That progress 
has been substantial. My Government considers 
that developments within the Community and the 
evolution of the Community's external economic 
policies should give all contracting parties cause 
for satisfaction. Events, I think, will show that 
the true si^irit of the Community is the endeavor 
to transfonn the economies of six nations into 
one — a factor of great political as well as economic 

' The six nations comprising the European Economic 
Community (the Common Marliot) are Belgium, France, 
the Federal Republic of Germany, Italy, Luxembourg, and 
the Netherlands. 



significance — and that the measures necessary to 
the creation of the Community will not be directed 
against outside countries. 

We have noted the recent proposals of the Com- 
mission of the European Economic Community 
designed to emphasize the liberal orientation of 
the Community's relations with the rest of the 
world. We welcome these proposals. We believe 
they should be supported by the Governments of 
the six countries. And we urge that they be re- 
inforced by further actions making evident beyond 
any doubt the intention of the Community to re- 
move cause for concern that the creation of the 
Community may be harmful to international 
trade. 

At this session the United States will again 
report to the Contracting Parties on tlie agricul- 
tural restrictions which it maintains under section 
22 of the Agricultural Adjustment Act in order to 
safeguard domestic agricultural programs. My 
Government is making a strenuous effort to seek 
a solution to the problem of agricultural surpluses. 
We have lowered our levels of price support and 
have sought to bring production and consumption 
more closely into line with the realities of the 
market. As we progress in these efforts we hope 
to lessen the need for import restrictions on the 
agricultural commodities involved, even though 
they represent only a small percentage of our 
agricultural imports. 

Broadening the GATT Trading Community 

The Contracting Parties are wisely seeking to 
broaden the geographic extension of the GATT 
trading community. Steps are being taken toward 
the provisional accession of Switzerland and 
Israel,^ and it is anticipated that at tlie forth- 
coming tariff conference negotiations will take 
place with Israel, Cambodia, and perhaps other 
countries looking toward tlieir full accession. My 
Government welcomes Yugoslavia's closer re- 
lationship with the Contracting Parties.' We 
shall also be pleased to see the establishment of a 
formal relationship between the Contracting Par- 
ties and Poland. The decision and declaration 
agreed upon by tlie working party on relations 



"For texts of notices by the Committee for Keciprocity 
Information and the Interdepartmental Conunittee on 
Trade Agreements, together with declarations by the 
Governments of Israel, Switzerland, and Yugoslavia, see 
lUiXETiN of Sept. 28, 1S).J!), p. 4.">(). 



706 



Department of State Bulletin 



with Poland at its recent meeting accomplish this 
purpose. We regard these arrangements as en- 
tirely satisfactory. 

Mr. Chairman [Fernando Garcia Oldini, 
Chile], I Mould like to express the thanks of my 
Government for your sound coimsel and con- 
structive leadership in guiding the deliberations 
of the Contracting Parties dui'ing the past year. 
I also want to pay tribute, once again, to our Ex- 
ecutive Secretary, Mr. Eric Wyndliam-White, and 
liis staff. It is in large part because of their 
excellent work over the years that the General 
Agreement has come to take its place as the truly 
effective world economic institution it is today. 

The great principles upon which GATT was 
established — of freedom of trade, of nondiscrimi- 
nation, of mutual advantage and fair dealing — 
these principles provide the only solid foundation 
for healthy economic relations in an increasingly 
interdependent world. We must continue to 
strengthen GATT as the primary international 
instrument for translating these principles into 
action — applying them effectively in the day-to- 
day decisions of our governments. In this way 
we can look forward with hope to a bright future 
in which all our peoples will gain a richer life. 
Our meeting in Tokyo, I am confident, will mark 
another milestone of progress in the great enter- 
prise upon which we are all embarked. 



TEXT OF GATT COMMUNIQUE s 

The first three days of the fifteenth session of the 
Contracting Parties to the General Agreement on Tariffs 
and Trade have been devoted to an exchange of views 
between the ministerial representatives of Contracting 
Parties. 

The Ministers took note with satisfaction of the im- 
proved economic situation which, they felt, opened the 
door to a further significant advance in international 
trade and provided an opportunity for substantial prog- 
ress in furthering the objectives of the General Agree- 
ment. 

The Ministers welcomed- the action taken during the 
past year by certain countries to make their currencies 
convertible for nonresidents. They agreed that, as a re- 
sult of this development, there was no longer any justi- 
fication on balance-of-payments grounds, for discrimina- 
tory restrictions by countries whose export earnings were 
largely in convertible currencies and noted the measures 



• Issued at the conclusion of the meeting of ministerial 
representatives on Oct. 29. 



already taken by a number of countries to reduce dis- 
crimination ; the Ministers took particular account of the 
recent decision of the International Monetary Fund on 
discrimination. They recognized that where such dis- 
criminating restrictions had been in force for a long time, 
a reasonable but short i>eriod might be needed before 
they could be eliminated fully. They also considered that 
rapid progress could now be made in the elimination of 
all quantitative restrictions on imports by countries no 
longer experiencing balance-of-payments difiiculties. 

The Ministers also felt that the present favourable 
climate of international trade made it important to press 
on with the GATT programme for trade expansion, that 
is to say (a) arrangements for the 1960/61 Tariff Con- 
ference should be rapidly completed due account being 
taken of the suggestions put forward in the course of the 
discussion, (b) the examination of the ways and means 
of expanding international trade in agricultural products 
and of reducing agricultural protectionism should be 
energetically pursued and (c) the search for practical 
steps to help the less developed countries to increase their 
export earnings should be intensified. 

Throughout the discussions great emphasis was laid on 
the importance of every effort being made to help the less 
developed countries which have not shared fully in the 
Improvement of economic conditions. It was pointed out 
that increased export earnings by these countries are 
essential to help them to develop and diversify their 
economies, and thus to reduce their vulnerability to short- 
term fluctuations in primary commodity prices. 

In the course of the ministerial discussions, reference 
was frequently made to the possible disruptive effect of a 
sharp increase in exports of manufactured goods from 
countries where the cost of production Is substantially 
lower than that prevailing In the importing countries. It 
was generally recognized that, although this may in cer- 
tain instances create serious economic and social problems 
in the importing countries, it was essential to adopt liberal 
rather than restrictive policies to overcome those diffi- 
culties. A suggestion was made during the course of the 
discussions that this is a problem which might usefully 
be studied by a panel of experts to be designated by the 
Contracting Parties. 

In reference to the European Economic Community and 
to other regional economic arrangements, such as the 
proposals for a free trade association among seven coun- 
tries in Western Europe and the plans for economic inte- 
gration in Latin America, the Ministers agreed that such 
groupings had to take full account of the trade interests 
of other countries and to pursue outward looking policies 
in accordance with the principles and objectives of the 
General Agreement. 

The Ministers expressed their satisfaction at the in- 
creasing membership of the GATT and at the arrange- 
ments which had already been made or are proposed for 
bringing Yugoslavia and Poland Into closer association 
with the Contracting Parties. This, they considered, was 
evidence of the Increasing recognition throughout the 
world of the important role played by the GATT In matters 
relating to international trade iwlicy. 

The Ministerial Representatives joined in expressing 
satisfaction that the fifteenth session of the Contracting 



November 76, 1959 



707 



Parties was being held in an Asian capital. Tliis was 
the first such meeting since the foundation of the organi- 
zation. The Ministerial Representatives were also unan- 
imous in their appreciation of the generosity and hospi- 
tality of the Japanese Government and of the great effort 
which had been made to provide such excellent facilities 
for the work of the conference. 

The Contracting Parties will now continue their dis- 
cussions at official level and will examine further the sug- 
gestions which have emerged from the meetings held at 
a ministerial level. 



Development Loan Fund Announces 
New Procurement Policy 

Following is a statement issued on October 20 
by Vance Brand, Managing Director of the De- 
velopment Loan Fund, relating to the procurement 
policy to be folloioed by the Development Loan 
Fund. 

In view of the growth in the economic strength 
of the industrialized countries of the free world 
and their steadily increasing ability to assist the 
less developed countries, and taking into account 
the changes which have taken place in the world 
payments situation, the lending policies of the De- 
velopment Loan Fund have been reviewed. There 
is now a fair presumption that other industrial- 
ized countries which export capital goods to the 
less developed countries are in a financial position 
to provide long-term loans on reasonable terms to 
assist such countries in their development pro- 
grams. It has therefore been decided that particu- 
larly in financing the foreign exchange costs of 
development projects and programs the DLF will 
place primary emphasis on the financing of goods 
and services of U.S. origin. The Board of Direc- 
tors of the DLF in the application of this new 
policy will, in the case of those projects or pro- 
grams which have reached an advanced point of 
consideration by the DLF under its previous pol- 
icies, give consideration to the avoidance of undue 
hardship.^ 



'Lincoln White, chief of the News Division, Depart- 
ment of State, on Oct. 20 read the following statement 
to news correspondents: 

"The longstanding policy of the ICA has been to finance 
the purchase of commodities and equipment for use in its 
programs from free-world sources, rather than to limit 
such purchases to United States suppliers. This policy Is, 
of course, subject to review at any time." 



Four Western Powers To Meet 
at Paris December 19 

White House press release dated November 1 

In accordance with the exchanges of views 
which have taken place in recent days among the 
interested capitals it has been decided, at the sug- 
gestion of the President of the French Republic, 
that a meeting will be held in Paris beginning De- 
cember 19th to undertake a preliminary examina- 
tion of the questions which could later be dis- 
cussed with the Chairman of the Council of Min- 
isters of the Soviet Union. 

The President of the United States, the Prime 
Minister of Great Britain, and the Chancellor of 
the Federal Republic of Germany will accordingly 
go to Paris for this occasion. 



ANZUS Council Meets 
at Washington 

Following is the text of a communique released 
at the close of the 10th meeting of the ANZUS 
Council, held at Washington, D.C., October 26. 

Press release 758 dated October 26 

The ANZUS Council met today in Washington 
to review subjects of interest to the three coun- 
tries. The Right Honorable Walter Nash, Prime 
Minister, represented New Zealand; the Right 
Honorable Richard G. Casey, Minister for Ex-