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U.S. Participation in the UN
Report by the President to the Congress for the Year 1963
This is the 18th annual report, covering U.S. participation ia the work of the United Nations and
the specialized agencies for the year 1963.
In his letter of transmittal, President Johnson reaffirms U.S. support of the United Nations as "the
best instrument yet devised to promote the peace of the world and to promote the well-being of mankind."
Further, he calls the 18th General Assembly "a faithful mirror of political reality" as "it dealt in an
intensely practical way vdth current hmnan events."
The activities of the United Nations for that calendar year and this Government's participation
thereiu are fiilly described iu this 433-page volume. The appendixes contain U.N. charts and other
organizational information, as well as information on U.N. publications and documentation.
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THE OFFICIAL AYEEKLY RECORD OF UNITED STATES FOREIGN POLICY
THE
DEPARTMENT
BULLETIN
Vol. LI, No. 1319
October 5, 196J^
THE DIRECTION AND CONTROL OF NUCLEAR POWER
Address Tyy President Johnson Jt58
TOWARD VICTORY FOR FREEDOM
Address iy Secretar'y Busk 4^3
SECRETARY RUSK'S NEWS CONFERENCE OF SEPTEMBER 14 4.68
ORGANIZING FOR PROGRESS IN LATIN AMERICA
iy Assistant Secretary Marm Ifld
THE RESPONSIBILITIES OF A GLOBAL PO^VER
'by Under Secretary Ball 473
For index see inside back cover
The Direction and Control of Nuclear Power
Address hy President Johnson ^
Nineteen years ago President Truman an-
nounced : "The force from which the sun draws
its power has been loosed." In a single, fiery
flash the world as we had known it was forever
changed. Into our hands had come much of
the responsibility for the life of freedom, for
the life of our civilization, and for the life of
man on this planet, and the realities of atomic
power placed much of that burden in the hands
of the President of the United States.
Let no one think atomic weapons are simply
bigger and more destructive than other weap-
ons— just another development like the airplane
or the tank. The total number of Americans
killed in battle from the Revolution until to-
night is a little over 526,000 people. Today a
single nuclear weapon can kill more than
526,000.
Our experts tell us as of today that a
'Made at a dinner honoring "United States and
Canadian Partnership in Progress" at Seattle, Wash.,
on Sept. 16 (White House press release (Seattle) ;
as-delivered text).
full-scale nuclear exchange between the East
and the West would kill almost 300 million
people around the world, and in the midst of
that terror and tragedy we could expect that
weapon after weapon would soon engulf a por-
tion of mankind. A cloud of deadly radiation
would drift and destroy, menacing every living
thing on God's earth, and in those unimagin-
able hours unborn generations would forever
be lamed.
Now, in the face of these facts, every Ameri-
can President has drawn the same conclusion :
President Harry Truman said : "Such a war
is not a possible policy for rational men." -
President Eisenhower said: "In a nuclear
war tliere can be no victors — only losers." '
President Kennedy said: "Total war makes
no sense ...."*
And I say that we must learn to live with
each other or we will destroy each otlier.
" Bulletin of Jan. 19, 1953, p. 94.
' Hid., June 6, 1960, p. 899.
'/fiirf., Julyl,1963, p.2.
DEPARTMENT OF STATE BULLETIN VOL. LI, NO. 1319 PUBLICATION 7741 OCTOBER 5, 1964
The Department of State Bulletin, a
weekly pnbllcatlon Issued by the Office
of Media Services, Bureau of Public Af-
fairs, provides the public and Interested
agencies of the Government with Infor-
mation on developments In the field of
foreign relations and on the work of the
Department of State and the Forpign
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 Depart-
ment, as well as special articles on vari-
ous phases of International affairs and
the functions of the Department. Infor-
mation Is Included concerning treaties
and International agreements to which
the United States Is or may become a
party and treaties of general Interna-
tional Interest.
Publications of the Department. TTnlted
Nations documents, and legislative mate-
rial In the field of International relations
are listed currently.
The Bulletin Is for sale hy the Super-
intendent of Documents, U.S. Govern-
ment Printing Office, Washington, D.C..
20402. Price ; 52 Issues, domestic $10 ;
foreign $15 : single copy, ."0 cents.
Use of funds for printing of this pub-
lication approved by the Director of the
Bureau of the Budget (January 19,
1961).
NOTE : Contents of this publication are
not copyrighted and Items contained
herein may lie reprinted. Citation of the
Department of State Bulletin as the
source will be appreciated. The Bulletin
Is indexed In the Headers' Guide to
Periodical Literature.
4.')8
DEPARTMENT OF STATE BULLETIN
The Meaning of the Atomic Age
Many foix-es liave coinerged to make the
modern world. Atomic power is very high
among those forces, but what has the atomic
age meant for us who have come here to this
dinner tonight?
It means, I think, that we have a unique re-
sponsibility, unique in history, for the defense
of fi'eedom. Our nuclear power alone has de-
terred Soviet aggression. Under the shadow
of our strength, our friends have kept their
freedom and have built their nations.
It means that we can no longer wait for the
tides of conflict to touch our shores.
It means that great powers can never again
delude themselves into thinking that war will
be painless or that victory will be easy. Thus,
atomic power creates urgent pressure for peace-
ful settlements and for the strengthening of the
United Nations.
It means a change must come in the life of
nations. Man has fought since time began, and
now it has become clear that the consequences of
conflict are greater than any gain, and man just
simply must change if man is to survive.
For Americans, it means that control over nu-
clear weapons must be centralized in the hands
of the highest and the most responsible officer
of government — the President of the United
States. He, alone, has been chosen by all the
people to lead all the Nation. He, alone, is the
constitutional Commander in Chief of the Na-
tion. On his prudence and wisdom alone can
rest the decision which can alter or destroy the
Nation. The responsibility for the control of
U.S. nuclear weapons rests solely with the
President, who exercises the control of their use
in all foreseeable circumstances. This has been
the case since 1945, under four Presidents. It
will continue to be the case as long as I am
President of the United States.
In this atomic age we have always been re-
quired to show restraint as well as strength. At
moments of decisive tests, our nuclear power has
been essential. But we have never rattled our
rockets or come carelessly to the edge of war.
Each of the great conflicts of this century have
begun when nations wrongly thought others
would shrink before their might. As I and my
predecessors have said, we may have to use nu-
clear weapons to defend American freedom, but
I will never let slip the engines of destruction
because of a reckless and rash miscalculation
about our adversaries.
Steps To Lessen Danger of Nuclear Conflict
We have worked consistently to bring nuclear
weapons under careful control and to lessen the
danger of nuclear conflict, and this policy has
been the policy of the United States of America
for 19 years now, under both Democratic and
Republican administrations, and this will con-
tinue to be the policy of the United States of
America.
First, we have worked to avoid war by acci-
dent or miscalculation. I believe the American
people should know the steps that we have taken
to eliminate the danger of accidental attack by
our strategic forces, and I am going to talk about
that tonight. The release of nuclear weapons
would come by Presidential decision alone.
Complex codes and electi'onic devices prevent
any unauthorized action. Every further step
along the way from decision to destruction is
governed by the two-man rule. Two or more
men must act independently and must decide
the order has been given. They must independ-
ently take action. An elaborate system of
checks and counterchecks, procedural and me-
chanical, guard against any imauthorized nu-
clear bursts. In addition, since 1961 we have
placed permissive-action links on several of our
weapons. These are electromechanical locks
which must be opened by secret combination
before action at all is possible, and we are ex-
tending this system. The American people and
all the world can rest assured that we have taken
every step man can devise to insure that neither
a madman nor a malfunction could ever trigger
nuclear war.
We have also worked to avoid war by mis-
calculation. There may be little time for deci-
sion between our first warning and our need to
reply. If our weapons could be easily de-
stroyed, we would have to make the final deci-
sion in a matter of minutes. By protecting
our power against surprise attack, we give our-
selves more time to confirm that war has actu-
ally begun. Thus, we have placed missiles in
protected, underground sites. We have placed
OCTOBER 5, 1964
4:59
missiles beneath the seas. And we have pro-
vided constant and secure communication be-
tween strategic forces and the Commander in
Chief, the President of the United States.
I do not want to fight a war that no one
meant to begin. We have worl^ed to limit the
spread of nuclear weapons. The dignity and
the interest of our allies demands that they
share nuclear responsibility, and we have pro-
posed such measures. The secrets of the atom
are known to many people. No single nation
can forever prevent their use. If effective arms
control is not achieved, we may see the day
when these frightful, fearful weapons are in
the hands of many nations. Their concern and
capacity for control may be more limited than
our own.
So our work against nuclear spread must
go on.
Tliird, we have developed ways to meet force
with appropriate force by expanding and mod-
ernizing our conventional forces. We have in-
creased our ground forces. We have increased
our tactical air force. We have increased our
airlift. We have increased our stock of the
most modern weapons.
Thus, we do not need to use nuclear power
to solve evei-y problem. We will not let our
might make us musclebound.
Fourth, we have worked to damp down dis-
putes and to contain conflict. In an atomic
world, any spark might ignite the bonfire.
Thus, our responses are firm but measured.
We saw an example of that in the Tonkin Gulf
just the other day.= Thus, we pursue peaceful
settlement in many remote comers of the globe.
Fifth, we constantly work toward aims con-
trol. A test ban agreement has ended atmos-
pheric explosions which were poisoning the
atmosphere. We have established a "hot line"
for instant communication betM^een the United
States and Moscow in case of crisis.
As President, I ordered a cutback of unnec-
essary nuclear production, and this year we sub-
mitted several major new proposals to the
disarmament conference in Geneva. I will
pursue with vigor all of those proposals.
Tliese are only first steps. But they point
the way toward the ultimate elimination of
° For background, see iUd., Aug. 24, 1964, p. 258.
ultimate destruction. So long as I am your
President, I intend to follow that course with
all the patience at my conxmand. In these
ways, for 19 dangerous years, my three prede-
cessors have acted to insure the survival of the
Nation, to insure survival of our freedom and
to insure survival of our race. That will always
be my policy, and this is the wish of the people
of the United States.
Conflict among nations will trouble tliis
planet and will test our patience for a long
time to come. And as long as weapons are nec-
essary, wisdom in their control is going to be
needed. The man who guides them holds in liis
hands the hopes of survival for the entire
world.
As I exercise my cares every day and every
night, I often think of those who have just be-
giui and those who are yet mibom. I want
them to have a chance. With all my power,
and all the aid the Lord offers me, I will help
give them that chance. And, I think, so will
all of you.
In many ways the world tonight is now in
tlie valley of the shadow. But there is an old
poem that ends: "... westward, look, the
land is bright." From this Western shore to-
night I believe we, too, can see a brightening
land. Our country is moving forward. It is
carrying with it the advancing ranks of free-
dom. Somehow or other — optimist that I am —
I just believe that peace is coming nearer. If
this is so, we may one day see fulfilled the
prophecy of the Bible: "The morning stars
sang together, and all the sons of God shouted
for joy."
Thank you; good night.
Letters of Credence
Australia
The newly appointed Ambassador of Aus-
tralia, John Keith Waller, presented his cre-
dentials to President Jolmson on September 18.
For texts of the Ambassador's remarks and the
President's reply, see Department of State press
release 406 dated September 18.
460
DEPARTMENT OF STATE BULLETIN
Saudi Arabia
Tlie newly appointed Ambassador of Saudi
Arabia, Ibrahim 'Abd Allah al-Sowayel, pre-
sented iiis credentials to President Johnson on
September 18. For texts of the Ambassador's
remarks and the President's reply, see Depart-
ment of State press release 409 dated September
18.
Toffo
The newly appointed Ambassador of the Ee-
public of Togo, Robert Ajavon, presented his
credentials to President Johnson on September
18. For texts of the Ambassador's remarks and
the President's reply, see Department of State
press release 408 dated September 18.
The Unity of the American People
FoUowing is the foreign policy port/on of
remarhs made hy President Johnson on the
steps of the State Capitol at Sacramento, Calif.,
on September 17 (White House press release
{Sacramento) dated Septeniber 17 ; as-delivered
text) .
In our history, this is a day of highest honor.
On this day 177 years ago our forefather or-
dained and established the Constitution of the
United States. Over the years, our Union has
grown — from the Atlantic seaboard to the mid-
Pacific; from the Florida Keys to the Far
North; from 13 States to 50 States; from 3
million citizens to nearly 200 million now.
On that same rock of the Constitution, our
Republic still stands. It stands stable, it stands
secure, never stronger, never more successful,
never so pi'osperous, never more determined to
defend freedom or to preserve peace. Our sys-
tem is succeeding as none before — anywhere, at
any time — have ever succeeded.
Of all the ages that men have lived, this age
of America is the best of all. This is the real
truth about America now — and you know it.
But others must know this, and others must un-
derstand it. That is why I have come to Cali-
fornia to speak to you as I do today. I want
my voice to be heard around the world for I
speak not for myself but for the people I serve —
the strong, the sensible, the moral, the decent,
and the peaceful people of the United States.
In this century, time and time again, other
men in other lands have misled themselves about
what they have heard or what they have read
from our land in national election years. From
Hitler in 1940 to Castro in 1962, grave miscal-
culations have been made about America at
election time. Our seasons of debate have been
miscalculated as seasons of distraction and
diversion and division.
Tliere must be no such miscalculation in 1964.
To those who look to us in trust, to all who wish
us well, and to any who wish us ill, I say this
today : Do not misjudge America's readiness
or America's will. Do not miscalculate the
unity of all the American people.
Our nation, conceived in independence and
brought forth in unity, has not now come to a
time of disunity, or division, or diversion.
Through all our years America's cause has been
the cause of all of mankind, and this is our
cause still. Our purpose is to live in freedom
in a world of peace — and that American pur-
pose will never change. But this generation of
Americans, bloodied in battle, matured in peril,
living in times when life was never better but
never in graver danger — we know that eternal
vigilance is the price of liberty.
We know, as Tom Paine put it, "Those who
would reap the benefits of liberty must bear like
men the hardships of defending it." This we
are doing, and this we shall always do.
Here in California I do not need to recite
the facts of America's strength and power, for
you are the real builders of that strength. "We
are strong; we are the strongest nation on the
earth. Our allies trust that strength. Our
adversaries must respect it. Men of all lands
can have faith in its wise use. But the condi-
tion of our strength is never static. As dangers
change, our strength must change, and we are
matching new dangers with sure reply.
Seven years ago America awakened one morn-
ing to find a Soviet satellite orbiting the skies.
We found that our adversaries had acquired
new capabilities for the use, or the misuse, of
space. This administration moved to meet that
challenge. We sought and we supported a res-
olution unanimously approved in the United
Nations banning the use of weapons of mass
461
destruction in outer space. We have stated that
we have no intention of putting warlieads into
orbit. We have no reason to believe that any
nation now plans to put nuclear warheads into
orbit. We have more effective systems today.
At the same time, we recognize the danger
that an aggressor might some day use armed
satellites to try to terrorize the entire popula-
tion of the world, and we have acted to meet that
threat. To insure that no nation will be tempted
to use the reaches of space as a platform for
weapons of mass destruction, we began in 1962
and 1963 to develop systems capable of destroy-
ing bomb-carrying satellites. We have now de-
veloped and tested two systems with the ability
to intercept and destroy armed satellites cir-
cling the earth in space. I can tell you today
that these systems are in place, that these sys-
tems are operationally ready, that these systems
are on alert to protect this nation and to protect
the free world.
Our only purpose still is peace, but should
another nation employ such weapons in space,
the United States will be prepared and will be
ready to reply.
But this is not the only new development.
We are constantly seeking means of protecting
this nation and our allies. Today I am able to
tell you, and I am able to say to the entire world,
we have a major increase in our capacity to
detect hostile launches against the free world.
Previously our radar capability has been limited
to the detection of objects within the line of
sight, but now we have produced, and we are
installing, our first facilities for operational
"over the horizon" radar. This radar will
literally look around the curve of the earth,
alerting us to aircraft, and especially to mis-
siles, within seconds after they are launched.
This capability will give us earlier warning
than ever before of any hostile launches against
this country. This means more time to prepare
for our retaliatory strike and more time for us
to decide — to decide with prudence and rea-
son— the scope and the extent of our retaliatory
strike. This is another advance in our vigil of
peace to fulfill our responsibility as the sentry
of security for all the free world.
Let me also say this for the people of this
nation, to all, also, who may listen in the world :
Long ago a great American patriot said to his
countrymen, "AVe have one country, one Consti-
tution, and one destiny." So let all understand
that this is America today. We are not a na-
tion divided, or dividing, or divisible. Our
will and our work today is that the meaning of
our counti"y and our Constitution, and our des-
tiny, shall be the same for all Americans, re-
gardless of their creed, or their color, or their
origins. What men are in America is not de-
termined by their pedigree or their purse, but
by their soul and spirit and by their God-given
worth. Others have in times past believed that
abundance and comfort and contentment would
make Americans flabby and soft and weak. I
know this generation of Americans is lean and
strong and wise. As we have no delusions
about the dangers of the world, we have no
illusions about our challenges here at home.
We Imow that we have problems to meet, and
we know that we shall meet those challenges.
Our abundance will not produce arrogance.
Success will not turn us into suspicion of one
another. We will never trade the pursuit of
happiness for the persecutions of hate. If we
have new prosperity in our pockets, we carry
priceless values in our hearts.
Our fathers followed the sun westward to
open a continent. Today we guide our course
by the star of the Constitution that our fore-
fathers fixed for us as we go forth to open the
new age of civilization in America. Others
searched for gold. We searcli and we seek
after far more precious values. We seek peace
and justice and decency for all mankind every-
where. Our arms shall be always ready, but
our hand shall be always extended to those who
will join us in a pursuit of peace with honor.
We live in a glorious time in a wonderful
land. We have much to be thankful for. We
can coimt our blessings, and they are many.
We have much to protect, and to preserve, and
to perpetuate.
4G2
DEPARTMENT OF STATE BULLETIN
Toward Victory for Freedom
Address hy Secretary Ritsk '
I am deeply grateful for your invitation.
My first visit with the Economic Club of
Detroit was in early 19-19, just as I was return-
ing from a meeting of the United Nations Gen-
eral Assembly in Paris. During the first por-
tion of that Assembly our delegation was led
by Secretary of State Marshall; during the lat-
ter portion our chairman was Mr. John Foster
Dulles. That Assembly met while our 80th
Congi'ess was in session; and I can never for-
get that every bill reported by the Senate For-
eigii Relations Coimnittee of that Congress,
under the chainnanship of Arthur Vandenberg,
was reported unanimously. Shortly after my
visit with you I provided the principal staff
assistance to Secretaiy of State Dean Acheson
and to Mr. John Foster Dulles for the latter's
brilliant negotiation of the Japanese Peace
Treat}'. I mention these things in order to say
to you that my own roots are deep in the bi-
partisan policies of tlie United States in this
postwar period.
Our foreign policy, in the most fundamental
sense, derives from the kind of people we are
and hope to be and the shape of the world
around us. Neither element, in the longer nm,
turns upon partisan differences among us.
That is why President Truman and Senator
Arthur Vandenberg, later President Eisen-
hower and Senator Lyndon Johnson, found it
both possible and necessary to work together in
the national interest of us all.
Today I should like to talk to you for a few
minutes about the relations of the American
people with the peoples of the Communist
' Made before the Economic Club of Detroit at De-
troit, Mich., on Sept. 14 (press release 395).
world. I shall speak of problems which exist
among governments as well, but the objectives
of our own policy are determined by our peo-
ple— so that is where I should like to put the
emphasis.
We as a people have a deep concern about the
people in the Communist world. It is partly
because we are so deeply attached to the notion
that governments derive their just powers from
the consent of the governed. It is also because
many among us have personal, cultural, and
historical ties to areas which are now under
Communist control.
Let us begin by recognizing, very simply and
very clearly, the nature of commimism and the
problems it poses for us. During and after
World War II, the governments of the world
sat down to construct a tolerable world order.
They had been chastened by World War II, and
all of us were tliinking long and hard about
the kind of world in which we wanted to live.
The result was the United Nations Charter, rat-
ified by our Senate by a vote of 89 to 2.
Unf ortmiately, we could not say, m the words
of the GI, that we "had it made." For Jo-
seph Stalin had taken up the cold war, then
refused to join in the serious work of the United
Nations, and launched the postwar Commmiist
world once again upon a program of world
revolution. There then was posed the under-
lying and continuing crisis of our period of
history — the struggle between those who would
build a world society on the basis of the charter
and those who would brush that world aside
and substitute for it a world revolution of coer-
cion. I know of no part of tlie Communist
world which has turned away from this ultimate
objective, no part which does not believe that the
OCTOBER 5, 1!)04
463
triumph of communism is inevitable. Those of
us who are the heirs of the great drama of free-
dom, wliich has been playing for centuries, have
no doubt about the outcome of the contest be-
tween freedom and coercion, so long as free men
remember that freedom is not free but requires
continuing dedication, effort, and sacrifice.
Ours is not the first period of history in
which men have confronted each other with
incompatible objectives. But ours is the first
period of history in which man's powers of de-
struction have reached such imimaginable pro-
portions that all are required to think hard
about means as well as ends. There can and
will be a victory of freedom, but there is little
victory for anyone in a pile of cinders. It is
simply too late for man to be governed by his
primitive passions. At a time when the arms
race is taxing his scientific capacity beyond its
limits, his survival depends upon his bringing
to bear his highest intelligence to resolve the
great issues of war and peace.
Elements of U.S. Policy Toward Communist World
There are those who believe that we ourselves
should erect a solid wall between ourselves and
the peoples of the Communist world — a wall of
implacable hostility and rigidity, a wall through
which the winds of freedom caimot blow. I
would suggest that if we are seriously concerned
about a victory for freedom and if we under-
stand that this victory should come through
peaceful process if possible, then no single
phrase can describe an imaginative and pro-
ductive policy toward those countries which call
themselves Communist.
Such a policy requires several elements. The
first and harsh requirement is that we join with
other free peoples to prevent the further ex-
pansion of the Communist world by force and
violence, whether directly by marching armies
or indirectly by terrorism and subversion. I
put the emphasis on expansion by violence, be-
cause I do not know of any Coimnunist regime
which has come to power through the free
choice of the peoples concerned, registered in
an electoral process. I find no newly independ-
ent country, emerging out of colonial status,
which has turned to the new colonialism of the
Communist bloc. This first requirement of pol-
icy means that we must maintain the most pow-
erful aggi-egation of military strength the
world has ever known, a strength which wins
the respect of our adversaries. That is why
we have greatly increased that strength in the
past 3 years, why we have so massive a nuclear
capacity, why we have increased the size and
flexible capability of our conventional forces,
why we have substantially added to our mobil-
ity, why we have assisted our friends in many
parts of the world to strengthen their own de-
fenses, and why we have given special attention
to the problems of guerrilla war.
A second requirement of policy is that we ad-
dress ourselves, with men and material, to the
strengthening of those peoples who have elected
freedom and who are prepared to build the
world of the charter. Wlien we respond to
calls for assistance in settling disputes within
the free world, we reduce opportimities for those
who would fish in troubled waters. "Wlien we
ask for half of your Federal tax dollar for our
armed forces, we ask for 3 to 4 cents of it in
foreign aid to try to achieve our objectives
without the use of those armed forces if pos-
sible. In dozens upon dozens of individual ac-
tions on every working day throughout the
year we are joined with other free peoples in
getting on with the peaceful purposes of man
in advancing his daily business in every field of
human affairs.
Third, while there can be no yielding to
aggressive violence, we must continue to ex-
plore with the Communist world the possibili-
ties of reducing the dangers of conflagration
and of finding elements of common interest,
whether large or small, on which mutually ad-
vantageous agreements can be based. We our-
selves should not declare as a matter of doctrine
that no such common interests can be foimd.
It would seem elementary, for example, that
both sides would wish to avoid a thermonu-
clear war if possible. We would hope that a
common interest can be found in turning the
arms race downward in order that vast re-
sources can be freed for the unfinished busi-
ness of the peoples of both sides. This is why
we concluded the limited nuclear test ban treaty,
to which 107 nations have now subscribed.
This is why the so-called "hot line," still fortu-
nately imused, was established between Mos-
464
DEPARTMENT OF STATE BULLETIN
cow and Washington. This is why we
continue to search diligently for further steps
in the reduction of arms, even though our delib-
erations in Geneva have thus far yielded tlie
most mmimum results. If we try to find addi-
tional points of agreement, it is not because we
forget that large and dangerous issues, such as
Berlin or Cuba or Southeast Asia, are still with
us and unresolved. It is simply because the
search for possible agreement must be pursued
if man is to make a rational effort on behalf of
his own survival.
Trends in Eastern Europe
Every thinking man who follows the situa-
tion in Eastern Europe today realizes that the
area is in a state of active ferment. Trends of
enormous potential significance are visible —
trends toward national independence and more
personal freedom. Another element of our
policy is, therefore, to encourage such trends.
We cannot ignore the aspirations of the many
millions who live in Communist-controlled ter-
ritory and who have made it repeatedly clear
that they expect some changes to be made. We
should not stand in the way of steps being taken
by some of their governments to respond to
these aspirations and requirements.
Thus we have welcomed initiatives in Eastern
Europe to improve relations with Western
Europe and with the United States. It is not
insignificant that the jamming of the Voice of
America has almost vanished, that tourism is
opening up on a two-way basis, that trade ties
are being strengthened, that national decisions
are reappearing, that the needs of consumers
are being heeded, that scientists and scholars
are reentering the international community,
that creative and performing arts are begin-
ning to flow back and forth. It is not neces-
sary to think of liberation as the result of some
cataclysmic clash of nations; one can begin to
think of liberation through change and through
the reappearance of historic ties which lie
deeply in the hearts of the peoples concerned.
I would caution against impatience. I^et us
recall that we assisted Yugoslavia when Tito
asserted its nationhood in defiance of Stalin in
1948. Let us remember that he stopped the use
of Yugoslav soil for the guerrilla aggression
against Greece, that he reached an agreement
with Italy on Trieste, that 75 percent of his
trade is now with the West, that thousands of
Yugoslav workers hold jobs in Western Eu-
rope, that Yugoslavia is not a member of the
Warsaw Pact, that it has developed its own
economic structure in which most of its farm-
land is in private hands.
We have treated Poland somewhat differ-
ently from other Soviet bloc states for some
years — especially since 1956, when the Poles won
a measure of national autonomy and domestic
liberalization. Most of Polish agriculture re-
mains in private hands ; religion is strong ; Po-
land has restored a broad range of its historic
ties with the West. The Polish people have
a long and distinguished record of fighting for
freedom and independence.
As President Joluison said last month,^ the
American people regard the history of Polish
patriotism as a record that should serve to "in-
spire people everywhere to rededicate them-
selves to the cause of freedom and justice."
Recently Rumania has begun to manifest a
strong spirit of independence. Although its
government remains dedicated to its Commu-
nist doctrine, it has been emphasizing Ruma-
nian traditions and culture and making its
economic decisions on the basis of its own na-
tional requirements. It has moved to improve
its relations with its historic associates in the
West, to enlarge the opportunities for travel
and exchange, and to play its own role in the
larger international community. Similar de-
velopments have been noted, in varying degrees,
in Hungary and Czechoslovakia.
Please note that I have been referring to
trends — not to a new world already in existence.
There remain deep differences between us and
the governments of Eastern Europe. So long
as they are committed to their world revolu-
tion, we must not permit our hopes to deflect us
from a clear understanding of reality. But as
President Johnson put it, ". . . our guard is
up but our hand is out." " If any nation comes
to us, not as a member of an international con-
spiracy but as a peaceful nation prepared to
■ For text of a Presidential proclamation on Warsaw
Uprising Day, see Bulletin of Aug. 24, 1964, p. 271.
= Ihid, May 11, 1964, p. 726.
OCTOBER 5, 1964
465
improve relations, to improve the lot of their
own peoples, and to join in supporting the prin-
ciples of the United Nations Charter, we are
prepared to seek out with them points of mutual
interest and cooperation.
Finally, our relations with Communist coun-
tries must leave room for the fact that Homo
sapiens shares a common struggle against a
frugal and often hostile natural universe. Epi-
demic diseases are not politically formed and
attack capitalists and Communists alike.
Wheat rusts are as hungiy in our own Midwest
as they are in the new lands of Siberia. If
man is to require the desalted water of the open
seas or a deeper understanding of his own planet
and of the vast spaces about it, surely there is
room for cooperation in assuring the survival
of the human race and in improving our lot on
this tiny speck on the universe.
Militancy of Hanoi and Peiping
I have reserved until now a special comment
about Communist China and North Viet-Nam,
because of their proclaimed inilitancy and their
active aggressions against their neighbors to
the south. It is true that these are matters
which are under debate within the Communist
world itself and on which deep divisions are
apparent. The fact remains that the free world
is the immediate target of this militancy. The
Communist aggressions in South Viet-Nam and
the military activities of the Pathet Lao in Laos
are directed, supported, and, in part, supplied
from the north. And Peiping continues to in-
sist upon the surrender of Formosa as the .sme
qua non of any improvement in relations with
us.
Hanoi and Peiping must come to the decision
to leave their neighbors alone — and sooner
rather than later. For surely the world has
long since learned that a course of aggression
leads only to disaster and that the time to stop
it is at the beginning.
U.S. Policy in South Viet-Nam
Our own policy in South Viet-Nam is clear.
As President Johnson has said, the United
States intends to avoid the extremes. We do
not intend to withdraw from South Viet-Nam
or to negotiate any bogus neutralization. Such
a course would sentence the 14 million South
Vietnamese to absorption into the Communist
world. On the other hand, we do not intend
to strike out rashly into a major war in that
area.
The course we are following — and have been
following for many years under Presidents
Eisenhower, Kennedy, and Johnson — is the
course of helping the Republic of Viet-Nam
with our experience and our resources to put
down the Communists' campaign of terror and
subversion and to forge the machinery of stable
government in their own country.
This is a difficult course. It is costing us the
lives of American fighting men. It is costing
us much each day in money and resources. It
taxes our ingenuity and tries our patience. But
it is the policy of wisdom and, if we stick to it,
of ultimate success.
Last week the President and his advisers had
the opportunity to reexamine and reassess this
policy with Ambassador Taylor, who came back
to AVashington after 2 months of running the
American team in Viet-Nam.* This has led us
to reaffirm that, for all the twists and turns of
fortune that may still lie ahead, this policy is
the wisest and the best.
In the last 2 days we have seen an example of
the kind of development that makes the Viet-
namese problem so complex and so different
from any that this covmtry has found itself in-
volved in. Politics in South Viet-Nam are
nothing like politics in this country. The key
problems are fair treatment for Buddhists and
Catholics alike and a proper balance between
civilian and military leaders. The strivings
there for stability and for security from Com-
munist aggression are Vietnamese strivings and
Vietnamese responsibilities. It was for the
Vietnamese themselves over the past 48 hours
to find ways to deal with the latest eruption of
political imrest and get back to the business of
forming a lasting government.
Before the weekend unrest, the United States
felt that the triumvirate regime under Premier
[Nguyen] Khanli represented the best machin-
ery for progress toward solving those key prob-
lems through a broadly based government and
eventual elect ions. The United States still feels
• ni(L., Sept. 28, 1964. p. 432.
466
DEPARTMENT OF STATE BXJLLETIN
that tlie triumvirate arrangement holds the most
promise and is therefore gratified that the au-
thority of this government has been reaffirmed.
The Vietnamese leaders should now be able to
return to their efforts to build a stable govern-
ment and to continue with the war against the
Viet Cong.
Commitment to the Right of Self-Determination
Let me return to a scarlet thread of American
policy. Wlien we were uniting ourselves as a
nation of some 3 million people determined to
be free, Thomas Jefferson proclaimed that gov-
ernments derive their just powers from the con-
sent of the governed. Let us recall that our
Founding Fathers considered it to be a proposi-
tion for all mankind and not merely for the
American Colonies. That remains our commit-
ment and the basis of our concern with com-
munism. It explains why we cannot be content
until the peoples of Eastern Europe have regis-
tered their consent — have recovered what
Woodrow Wilson called the right of self-deter-
mination.
As President Johnson said in Detroit a week
ago: ^
We have worked to help the nations of Eastern Eu-
rope move toward independence. This is their peo-
ple's goal and this is our people's continuing resolve.
I have no doubt that this is the dii'ection in
\\hich they are moving. But we cannot help
those peoples by inflicting a catastrophe upon
them. Nor can we help them by policies which
drive them together in an armed camp and
snuff out the possibilities of the normal human
relations on which people and freedom flourish.
Thus we say to the Commimist world :
— If you pursue your world revolution by
forceful and violent means, we shall oppose you
with whatever means are required ;
— If you wish to compete peacefully, we ac-
cept the challenge and are prepared to compare
results ;
— If you are prepared to work as a loyal mem-
ber of the United Nations and support its char-
ter, you will find us ready to do the same ;
— If you are prepared to settle outstanding
problems on the basis of the freely expressed
^ For text, see White House press release dated
Sept. 7.
wishes of the people directly concerned, we be-
lieve that many of them would disappear;
— If you are prepared to look for points of
possible agreement, whether large or small,
which would be mutually beneficial, we are glad
to join in that search ;
— If you are ready to find a way to turn the
arms race downward in order that all of us
can better meet the great needs of our peoples,
we shall make an earnest effort to find the way
to do so ;
— If you are prepared to broaden cooperation
on those matters of common interest to the hu-
man race as a whole, we are ready to play our
part.
"V^^iat I am saying is that free men should
consult their faith and confidence and not their
fears. Men do not choose tyranny if they have
a choice. Further, in comparing results free
men have nothing to fear. It has been dramat-
ically demonstrated that regimentation is not
the road to efficiency. In the economic field,
for example, the North Atlantic community
alone has a gross national product of more than
$1 trillion — more than 21^ times that of the
Soviet bloc. And the gap continues to widen.
Communist China's gross national product is
lower than it was in 1960. The economy of
Castro's Cuba has gone from bad to worse,
despite massive external aid. It is no accident
that one hears from the Communist world dis-
cussions of decentralization, initiative, incen-
tives, enterprise, and even profits.
"We continue to live in a world filled with
grave dangers and with many difficulties to be
overcome, but the world of freedom grows in
strength, politically, economically, and mili-
tarily^but most important of all, in the com-
mitments of ordinary men and women around
the globe.
The simple notions of freedom which serve
as guides to our policy appeal to the deepest in-
terests as well as to the highest aspirations of
man. To serve them requires effort. We can-
not remain free if we suppose that life can be
merely comfortable and easy. There are bur-
dens to be borne and some of them are large,
but there is no shortage of dedication nor of
gallantry among those who know what freedom
means; and I, for one, look forward to the fu-
OCTOBER 5, 1964
467
ture with confidence and am grateful that we
do not have the problems which confront those
who would deny freedom to men who will insist
upon it.
Secretary Rusk's News Conference
of September 14
Press release 402 dated September 14
Secretary Rusk: I am very happy to wel-
come as our guests today to this press con-
ference about 21 distinguished journalists who
are here from 17 countries, as guests of our
Bureau of Educational and Cultural Aifairs.
We hope that you will enjoy tliis session,
whether I do or not.
Earlier today I gave a speech in Detroit,^
which had in it some comments on some matters
that may be of some interest to you; so I
thought that we might get together for a little
bit and see whether you had some questions.
Having made my introductoiy statement at
lunch today in Detroit, I think I won't bother
you wiit-h a volimtary statement at this point.
Recent Events in Saigon
Q. Mr. Secretary, what in your judgment is
the imfact of the uprising in Viet-Nam yester-
day on the future prospects for getting on with
the war?
A. Well, we hope very much that the events
of tlie last 2 days will underline the impoi'tance
of the projected plan which the triumvirate an-
nounced 10 days ago to constitute a council,
broadly representative of the major elements
in the population, whose task it will be in the
weeks immediately ahead to devise a constitu-
tion for the country which will make it possible
for all elements in the country to be repre-
sented, and to bring more civilians into the
government to take on those tasks that are
essentially civilian in character and permit the
military leaders to concentrate more and more
of their attention on the war against the Viet
Conjj.
' See p. 463.
We know this has been in their minds — in the
minds of the military leaders for some time.
And the machinery which was established under
the leadership of the Acthig Chief of State,
General [Duong Van] Minh, seemed to us to
be a way to move on that purpose with dispatch.
We do believe that it was important and
gratifying that these recent incidents did not
lead to armed conflict and to violence among
elements of the armed forces, and we hope that
these incidents will have a stabilizing effect and
that people, having now seen this prospect of
violence which was avoided, will now recognize
the importance of getting on with it through
consultation and movement toward a stable and
more permanent constitutional system.
Q. Mr. Secretary, do we have a good, intel-
ligible analysis of what the elements in the un-
rest are in Saigon today?
A. Well, if j'ou are referring to the events
of these past 2 days, I think that it is fair to
say that basically this came from the disgrun-
tlement of certain officers in connection with
their removal from command and their removal
from office. We did not have any reason to
suppose that the troops and the junior officers
of the elements that were moved into Saigon
from nearby areas had a political program in
mind or that they were particularly aware of
what was going on. But the officers who were
primarily involved were officers who had been
sacked by the Government in the course of the
last week or so. And ob\aously they were not
very happy about the situation.
We do, however, again come back to the
point that relatively small elements of the
armed forces were involved, perhaps 8 to 10
battalions, and that it was apparent that tlie
armed forces were not prepared to follow them
in a deeper, divisive, and violent disagreement
within the armed forces. We found consider-
able encouragement in that.
Now, it is going to take some time to build the
permanent kind of stable and constitutional
government that they are looking for out there.
I think that those of us who are concerned
about this on a day-to-day matter — day-to-day
basis — ought to pause and recall that for al-
most 25 yeai"s South Viet-Nam has been in-
volved in violence and disorder and the highest
468
DEPARTMENT OF STATE BULLETIN
of tensions: the period of Japanese occupation,
the war against the French occupation, the di-
vision of the coimtry between Nortli and South,
and the consolidation of the North as a Com-
munist country, the tragic events that set group
against group in the closing weeks of Presi-
dent Diem's regime, and the changes that have
occurred since. These have created residues of
problems, and it is not easy to set aside all
that is past in order to get together on the im-
portant requirements of the future.
So tliis is understandable, even though we,
and I think the present leaders, are impatient
to get all of that behind us and build the kind
of government that can move the country on
to the kind of future that is waiting for it, if
it can have some peace internationally and
some unity and confidence in the country
domestically.
Hope for Moratorium on Lesser Differences
Q. Mr. Secretary, in the past, in connection
toith similar incidents in Laos, perhaps even
other countries, you yourself and other mem-
Tiers of the administration have remarked
pointedly that the United States cannot salvage
a situation where there is no loill and no evi-
dence on the scene that the people themselves
are willing to help themselves. Have you
begun to talk in these terms to the people in
Saigon?
A. "Well, I think the important pomt which
we have made in conversations and discussions
is that we understand that there are reasons
for some of these differences in the coiuitry.
But these are differences which are of secondary
importance compared to — with the overriding
necessity of saving the country, establishing its
security, maintaining its independence. And
therefore we would hope that these lesser dif-
ferences would be put on ice, that a moratorium
would be declared on them, until the main job
of building a secure and independent country
has been accomplished. And we have tried to
make that clear. And I think that we have
made some headway on that point.
Q. Mr. Secretary, hoth General [Maxwell
/?.] Taylor and former Ambassador [Henry
Cabot] Lodge have said that if South Viet-
Nam could establish tJie stable constitutional
government you mentioned, the war against the
Communists would be over. On that basis,
then, would you say that the primary problem
in South Viet-Nam is political and governmen-
tal, rather than an actual military operation
against the Communists?
A. Well, I think you would have to interpret
their remarks against the background of the
l>roader view of what they themselves have of
a situation. I think it isn't literally true that
tlie moment a stable government is formed that
tl\e problem of the Viet Cong would disappear.
But what is time is that we are not aware of
any important group in South Viet-Nam other
than the Viet Cong itself that looks to Hanoi
for an answer.
These officers who led these battalions into
Saigon Sunday [September 13] declared their
determination to win the war against the Com-
munists. But what is needed is the sort of
structure which has been steadily building in
the provinces for the past several months, the
sort of structure which provides the admin-
istrative skeleton of the country which insures
that public services are operating efficiently,
that the police are where they should be to pro-
vide the elements of security so that those who
cooperate with the Government need not fear
unduly the attempts of the Viet Cong to break
up that system.
Now, there has been considerable headway in
the provinces in this matter in the past several
months and these events in Saigon have not
brought about dislocation and changes in the
provinces of the sort that cuts across the effort
of the Government. But thus far there has not
been the complete imity and the stability of
the Government at the very top in Saigon
among the top several dozen leaders with the
full undei-standing of the people of Saigon.
This problem is heavily concentrated in Saigon
itself. And we hope now that these leaders will
see the dangers of incidents such as that which
has just occurred and will put lesser problems
behind them and move toward the imity which
is so urgently required.
Q. Mr. Secretary, do you feel perhaps that we
Americans, and the rest of the world as welly
OCTOBER 5, 1964
469
have overestinuited American -power to infiu-
ence this situation?
A. Well, I think there may be some Amer-
icans who expect miracles from the United
States in these far-off and distant places. Let
me remind you once again that there are a bil-
lion and a half people in Asia, half of them in
the Communist world, half of them in the free
world. We are not going to find answers for a
billion and a half people by simply saying to
them, "Now, just move over and we Americans
will settle these things for you."' That is not
the way it's going to happen.
We can help those Asians who are deter-
mined to be free to develop the strength and
the structure of the organization and the eco-
nomic base, develop their public services, so
that tliey have the strength and the capacity
to meet their problems themselves. And this
is what we have been trying to do for the past
10 years in South Viet-Nam.
After the division of the country. President
Eisenhower determined to provide very sub-
stantial assistance to South Viet-Nam. I point
out to you that in the years 1956 to '59 some vei-y
important progress was made economically and
from the point of view of administration, and
they were well on their way toward peace and
toward prosperity. But then the North decided
that this was perhaps getting too much for
them and they decided in 1959 to renew their
attempts to undermine and take over South
Viet-Nam, and they publicly proclaimed that
in 19fiO.
So these pressures from the outside have to be
met, have to be resisted. But these are matters
which Asians themselves must have a full part
in as their own problem. We can help and as-
sist. And we can also be sure that these do not
become matters of all-out, wholesale invasions
with organized armed forces and things of that
sort, that these people have a chance to — ^these
14 million people in South Viet-Nam— have a
chance to resolve their problems themselves.
Problems of Buddhist Element
Q. Mr. Secretary, the organized BuddMsts
are "being spohen of as having a major veto
-power in any future Vietnamese stability: {1)
Do you think this is true; and (Z) , what do you
think their objectives are, what are they seek-
ing?
A. AYell, I would not want to offer a gen-
eralization about 80 percent of the iDopulation
of South Viet-Nam.
Thei-e, of course, have been some problems in
the past, as you know, some of them originating
out of religious differences. Some of tliem per-
haps have been stimulated during President
Diem's regime. Some of them are more political
in character, but political points of view which
represent elements that have one particular re-
ligious belief rather than another. And I
would not want to call that necessarily a reli-
gious difference.
But, with 80 percent of the population Bud-
dhist, it is very important that the Buddhist
element, just as with the Catholic element, find
a basis on which they work together to build
and support a government which can build
their country's security and independence.
Q. Mr. Secretary —
A. I will take one back here.
Questions of Trade and Immigration
Q. The EepubUean vice pre.^idential candi-
date last week said that a ividespread loss of
American jobs would result from both the Ken-
nedy Round and amending the immigration
lato. Woidd you comment on th is?
A. Well, first, on the Kermedy Round, let me
point out that we have been exporting at a rate
of about $24 billion for the last several months,
and exports mean jobs. We know that our own
economy can expand as a part of an expanding
world economy.
One of the difficulties is that those who may
find themselves somewhat paced by or in com-
petition with imports usually, in our system,
are more vocal and articulate than those who
live on providing exports. So these matters do
not readily come into balance in public
discussion.
But the Trade Expansion Act. which was
passed by a very solid bipartisan majority, has
as its purpose the expansion of world trade, in
which we will sell more and bTiy more. And
in those combinations, there will bo more jobs
for Americans and more jobs for people in other
countries.
470
DEPARTMENT OF STATE BULLETIN
As for the immigration law, the administi'a-
tion's proposal - there has nothing to do with
the quantity of immigrants coming into this
country. Under existing law, we have about
150,000 coming in under quotas. Our estimate
is that the new — the proposed — bill might add
net perhaps 13,000 or 14,000 additional immi-
grants to those 150,000 or so.
The purpose of that bill is to bring its under-
lying philosophy into line with the actual prac-
tice, the actual performance of the United
States in this postwar period.
"When we talk about national origins as a
basis for an immigration law — and recall that
only 35 percent of those who come into this
country have come in on that basis and that as
far as the Asian Triangle feature of that law
is concerned, only 10 percent of those from that
area have come in on the basis of our existing
hiw, that 65 percent of our immigrants and 90
percent of those f x-om Asian comitries liave come
in through special action taken by the Congress
to deal witli the immigration problem — then,
what we are saying is, let us get our tlieoiy in
line with our performance and let us remove
this national-origins theoi-y, which is not well
received by many of our own people as well as
by most of the rest of the world, and put it on
another basis.
That is the purpose. It has nothing to do
witli the scale of immigration, nor the standards
with respect to the types of immigrants who
would be admitted or tliose who have special
preference. It has nothing to do with those
things. It is to eliminate that national-ori-
gins system.
It makes it unnecessaiy for me to go to one
of our own citizens wlio comes from a country
witli a very small quota and say to him, "Well,
you just barely are an American citizen; we
don't want too many more like you, so we will
have only 100 more of you a year," and also
give offense to dozens and dozens of countries
abroad, when it is imnecessary — and when the
perfoi-mance of the country since World War
II has been wholly in the other direction, and
a much more acceptable and decent performance
tlian the principle of our basic law would have
permitted.
Q. Mr. Secretary, there are re-ports that a
number of the younger generals made a num-
ber of demands upon Khanh as a price for re-
sisting the rel)el movement. Is this true, and,
if so, does this mean that loe are likely to see
a neu) form of leadership and a new realine-
ment?
A. I saw some tickers on that. I wasn't very
clear as to just what those references were.
One of them indicated that these were some
proposals made last Friday to General Khanh.
I doubt that these had anything to do specifi-
cally with this particular action over the week-
end. But I will have to look further into that.
I have just seen those tickers. This particular
matter has not featured in our discussions of
this matter with the Govermnent out there in
the last 2 days.
Aid to India
Q. Mr. Secretary, sir, last week Soviet Rus-
sia promised very sizable military assistance to
India. I tlvink in June you did about the same
thing. I toas wondering whether you would
class this as one of the instances of agreement
hy coincidence.
A. Well, I do not believe this is coincidence.
I believe that India in this instance has felt
that under the pressures that were directed
against it, in the attack directed against it in
1962, when they needed to strengthen their
armed forces — they asked us for certain assist-
ance; we tried to provide certain assistance.'
They asked the Soviet Union for some. In both
cases that assistance was provided. But I think
I would not want to follow that very far down
the track at tliis point.
The Malaysian Situation
Q. Mr. Secretary, Britain is reported as hav-
ing decided to retaliate in case Indonesia at-
tacks Malaysia. Now, there are reports that
you were informed. Is that true, sir — and if
I may ask, what was your reaction^
' For background, see Bulletin of Aug. 19, 1963, p.
298 ; Feb. 10, 1964, p. 211 ; July 20, 1964, p. 98 ; and Aug.
24, 1964, p. 276.
' For background, see ibid., Dec. 3, 1962, p. 837, and
Dec. 10, 1903, p. 874.
OCTOBER 5, 1964
471
A. Well, I saw a ticker just a few moments
ago indicating — stating that we had advised
the United Kingdom not to do a;, y, or z. This
was attributed to authoritative sources. We
have not given the British Government any
advice about what it sliould or should not do
in meeting its defense commitments to Malaysia.
This is a very direct responsibility under very
clear arrangements which they have as fellow
Commonwealth members. And we — as we have
indicated to the Security Council^— we hope
very much that force will not be used as an
instnmient of policy in this situation by In-
donesia, that this matter can be settled by dis-
cussion through peaceful processes; and we
hope that the Security Council, which is now
in session on this matter, can find a way to
avoid further military confrontation.
Discussions Witli Canada
Q. Mr. Secretary., can you give us any infor-
mation about the discussions in Canada with
Mr. Martin [Canadian Secretary of State for
External Affairs Paul Martin'] ?
A. Well, I commented on that briefly after
I saw him this morning. We had a meeting for
about an liour and a half at his home in Wmd-
sor. We seize every chance we can to get to-
gether for a little working session. We pretty
much boxed the compass of issues, not only those
affecting our two countries but others around
the world because Canada is very much involved
in many of them, such as Cyprus and the South-
east Asian problem.
I did take the opportimity to express our ap-
preciation to him and to the Canadian Govern-
ment for the fact that we have brought the
Columbia Eiver treaty to a conclusion. This
is a special week for that, because we are laimch-
ing those treaty arrangements. Our President
and their Prime Minister are meeting this week
to celebrate that fact.
And I also expressed my respect for the effort
that Canada has made in connection with the
Cyprus matter : the provision of troops for the
U.N. forces and the active role they played at
the U.N. to try to find a peaceful settlement for
that question.
But there were a number of things. We
didn't waste too much words; we covered a
number of subjects in an hour and a half.
Q. Mr. Secretary., thank you very much.
Von Steuben Day
A PROCLAMATION'
Whereas many people of German descent and many
German American organizations throughout the United
States will celebrate the birth date of General Fried-
rich Wilhelm von Steuben ; and
Whereas, the American people of all national origins
should commemorate the significant contributions
which this great German patriot made to the gaining
of our American independence and the establishment
of our sovereignty ; and
Whereas the name von Steuben serves as a reminder
of the tremendous influence and important bearing the
lives of the many other great German-bom American
patriots have had upon the development and expansion
of our nation ; and
Whereas our nation is deeply indebted to the 8 mil-
lion Germans who migrated to this country and to their
estimated 26 million lineal descendants living today
in virtually every community of our country :
Now, THEREFORE, I, LYNDON B. JoHNSON, President of
the United States of America do hereby designate Sep-
tember 17, 1964 as von Steuben Day. I invite all the
people of the United States to observe this day with
appropriate ceremonies and activities. I suggest that
programs commemorating the birth of von Steuben
serve also as reminders of the contribution of the dedi-
cated American citizens of German derivation.
I ask those great patriotic organizations bearing von
Steuben's name or the name of other patriots of hia
nationality to stress in their celebrations the debt of
gratitude which all Americans owe our Founding
Fathers for the democratic principles and ideals of
freedom which motivated their great decisions and
which we today are dedicated to protect, to follow and
to preserve for posterity.
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 fifteenth day of
September in the year of our Lord nineteen
[seal] hundred and sixty-four, and of the Inde-
pendence of the United States of America the
one hundred and eighty-ninth.
LyvJUJ^A««ut.4
By the President :
Dean Rusk,
Secretary of State.
♦ lUd., Sept. 28, 1964, p. 448.
' No. 3615 ; 29 Fed. Reg. 13069.
472
DEPARTMENT OF STATE BULLETIN
The Responsibilities of a Global Power
hy Under Secretary Ball ^
Public discussions of foreign policy are ster-
ile and irrelevant when they are based on asser-
tions that deny the hard i-ealities of the modern
world.
One such assertion, often rejieated, is that
foreign policy could really be a simple busi-
ness if its practitioners would only follow a
few simple principles.
This, I can assure you, is an illusion — and a
dangei-ous one at that.
The conduct of foreign relations by the lead-
ing power of the free world during a period of
pervasive turmoil is anything but sunple. It is,
in the nature of things, complex, subtle, and
demanding. It is not neat. It lacks mathe-
matical precision. To its practitioners, it is
often frustrating.
But it is vital business for all of us — since
the stakes are no less than the peace and even
the survival of the world.
Obviously we Americans should clearly de-
fine our foreign policy objectives. We have
done so. Obviously we should proclaim the
fundamental principles on which we act and
take care that our actions are consistent with
those precepts. This we have done also.
But we should not be misled by rlietoric, and
we should not confuse the simple platitude with
the solution of complicated foreign policy
problems.
Two Difficult Questions
I make these comments as a prelude to dis-
cussing two questions that are central to any
serious discussion of our foreign policy. These
questions are difficult. They cannot be answered
by vague abstractions but only by a hard look at
the underlying nature of today's world.
The first question is one which all of us with
official responsibility for foreign policy re-
peatedly ask ourselves : Wliy is it necessary for
the United States to be involved or committed
in the far corners of the world ? Don't we carry
an inordinate share of the free world's burden,
and why should we?
The second question, like the first, is trouble-
some but quite as pertinent : Wliy do so many
problems defy clear solutions? Why can't we
use the vast power at our command to make
other nations do what we want them to do ?
We shall not find the answer to either problem
by nostalgic references to an earlier era. These
questions can be answered only in terms of the
conditions and requirements of today's world.
For whatever one may think or say, one fact is
clear above all : The world today is wholly dif-
ferent from what it was before the Second
World War, and America's role in the world is
wholly different. Anyone who fails to realize
these facts will be befuddled by the problems we
are encountering— and he will reach, not for the
complex answer that has a chance to be right,
but for the simple answer that is very likely to
be wrong.
Clianges in tlie Postwar World
The great changes that have occurred in the
last two decades are familiar enough. Their
full implications are much less widely under-
stood.
The first great postwar change was the Iron
Curtain drawn between East and West bringing
with it the cold war — a contest on a world scale
between two major centers of power with com-
peting ideologies.
The second was the development of weapons
^Address made before the Chicago Council on For-
eign Relations at Chicago, 111., on Sept 18 (press re-
lease 407).
OCTOBER 5, 1964
745-022-
473
of nuclear destruction, together with rocketry
and delivery systems. Today no corner of the
world is immune fi-om the danger of nuclear
devastation.
The third was the dismantling of the great
colonial systems, through which a handful of
nations had ruled a gi-eat portion of the world's
population, and their replacement by 50 or more
new nations — some bom prematurely, almost all
bom weak.
The fourth is a process— still continuing—
to bring about the unification of Western Eu-
rope. Already Western Europe has achieved
what one might call strategic unification, in the
sense that there is unlikely to be again a great
war between Western European powers. Eco-
nomic unification is well underway, but politi-
cal unity is still unrealized.
The -fifth and most recent has been Commu-
nist China's contest with the Soviet Union for
a dominant role in the world revolution and
the drive to extend Chinese influence into other
developing areas of the world.
Revised Power Arrangements
Tliese epic developments — compressed within
a fantastically short period of less than 20
years — have drastically revised the power ar-
rangements of the world. They have pro-
foimdly affected all aspects of foreign policy.
They have created a new concept of scale in
world affairs. They have made it necessary
for nations to command vast resources if they
are to play a major world role.
Alexander conquered much of the known
world with only 30,000 armed men. Two and
a half million Roman citizens ruled an empire
that spread from the North Sea to the Arabian
Desert. In modem times relatively small
states have played major world roles through
the leverage of colonial systems that have given
them direct control over enomious resources
and populations.
But today the concepts — even the terminol-
ogy— of past years that drew a distinction be-
tween great and small powers require revision.
Since the latter 1940's, crucial elements of world
power have been heavily concentrated in two
nations — the United States and the Soviet
Union. Each is organized on a continent-wide
basis. Each commands enormous material re-
sources and the highly skilled manpower to put
them to work. Each possesses modern and
sophisticated teclinology and vast nuclear arma-
ment. Each is a global power. One seeks a
world of freedom, the other a world of coercion.
And so there is no longer a concert of great
powers in the 19th-century sense. Instead, two
global powers each play a worldwide role.
The Soviet Union still seeks to play that role
by exercising power through direct political
control of subject peoples — but its dominance
over its satellites is inevitably weakening.
A free- world nation — no matter how large —
cannot, consistent with its own principles, exert
direct political control over subject peoples.
It must employ a full complement of political,
economic, and moral resources. It must con-
duct its affairs under the constant pressure of
a competing power system.
It must deal with nations deeply suspicious —
for good historical reasons — of superior power,
nations determined to stay disengaged from the
global power struggle between East and West.
Finally, it must, while maintaining massive
defensive strength, seek to achieve its objec-
tives without resort to force. Moreover, it
must prevent, so far as possible, the employ-
ment of force in conflicts between other nations
that could spread into a major conflagration.
The Wider Concerns of Today's World
These are the conditions of today's world —
the conditions under which the United States
has been able to make its influence and leader-
ship effectively felt.
But the conduct of the world's business un-
der these conditions is not easy. It requires
immense resources. It also requires the will
to employ them. It requires, in other words,
a total world involvement that is possible only
for a nation with the size and ability to meet
competing challenges wherever they appear.
The question is sometimes asked : "Wliy is the
United States always in the middle of every
international crisis? The answer I tliink is
clear : Power is always exercised, not from the
sidelines, but from the middle of a problem.
474
DEPARTMENT OF STATE BULLETIN
I put special emphasis on this point since
it reflects the critical diffei-ence between the
position of the United States and the earlier
traditional view of what it meant to be a world
power. I can best express this by drawing a
distinction between global responsibilities and
far narrower interests.
In the 19th century and as late as tlie 1930's,
nations acted openly and unabashedly in pur-
suit of narrowly defined mterests, although such
interests sometimes embraced colonial posses-
sions that covered wide stretches of the globe.
The national interest which we in the United
States pursue today is of quite a different order.
It cannot be expressed merely in terms of the
defense of bits and pieces of real estate with
which we enjoy a special political or economic
relation. It is necessarily focused on wider
concerns — how freedom can be preserved from
Communist aggression, how local conflicts can
be prevented from leading to worldwide devas-
tation, how to make the free world hum with
the sounds of development and prosperity.
Some nations not organized on a continental
scale are reluctant to accept their share of this
worldwide burden. To some extent this is a
psychological problem. Since these nations re-
gard themselves as lacking the resources that
would permit them to play the role of global
power, they often contribute less than they
might to the common effort.
Such nations are not indifferent to the world
struggle, nor are they necessarily diffident about
expressing their views on all aspects of woi-ld
affairs. But to play a useful and effective role
on the world stage it is not enough for a nation
simply to make known its views. It must be
willing to commit its share of resources to the
solution of common world problems. When na-
tional foreign policy positions are vigorously
promoted without regard to their effect on re-
sponsible efforts that other states are making,
free-world interests may well be injured.
America's Tasks as a Global Power
From these comments emerges the hard core
of an answer to my first question. The United
States today is carrying a large part of the
responsibilities of the free world because we
must. If we did not play our present role,
many essential responsibilities would not be met
at all.
"What are these major tasks that America
lias assumed as the one global power in the free
world? They are, it seems to me, the
following :
First., to provide the major share of the de-
fense of free- world interests against an aggres-
sive Commmiist state which is at once
both ideological and imperialistic.
Second, to contribute technology and re-
sources to the economic and political develop-
ment of the free nations that have arisen from
the ashes of old colonial systems.
Third, to use its prestige and moral leader-
ship to prevent internecine quarrels between
other free-world states and to bring about their
settlement if they cannot be prevented.
The United States is the only free- world na-
tion with the power — and the prestige that de-
rives from the responsible exercise of power —
to pursue these purposes in eveiy continent and
on every sea. This power remains effective only
because the world knows that we are prepared
to use it — and will ivy to use it wisely.
Sharing World Responsibilities
This does not mean that we should rest con-
tent with arrangements as they are. We are
continuing to seek ways and means of devising
a more equitable sharing of responsibilities with
other free- world states.
Hopefully we can expand the sense of sharing
in free-world problems by continuing to im-
prove the scope and mechanisms of consultation
within the Western alliance. We have made
progress along tliis line, and we shall make
more.
But the key problem will remain that most
of the Atlantic nations, as now organized, are
too small to participate with full effectiveness
in the gi-eat matters that affect the destiny of
their own peoples. We might as well face the
fact that full and effective reallocation of world
responsibilities to reflect comparative wealth
and resources will be possible only when other
free-world industrial peoples have organized
their political and economic affairs on a scale
OCTOBER 5, 19 64
475
adequate to the requirements of the modem
age.
The Drive Toward European Unity
This point lias not been lost on our European
friends. Mucli of the force beliind tlieir drive
toward unity has derived from a deeply felt
concern of the European peoples that they will
be foreclosed from making tlieir appropriate
contribution to world affairs so long as they are
organized as national states that are small in
mid-20th-century terms.
Since the Schuman Plan was first proposed,
Europe has made great strides toward unity.
But over the last year and a half this drive has
been checked by a counterrevolution of nation-
alism. Signs of progress are, howevei', again
perceptible, and the inescapable logic of unity
remains a strong latent force. Hopefully, lost
momentum will bo recaptured in the months
ahead.
The achievement of this objective is unfin-
ished business of the first order of urgency.
Diplomacy and National Pride
This brings me then to the second question
that I mentioned at the outset: Wliy cannot
America always use her power decisively in deal-
ing with problems around the world ?
One answer to (his question has already been
suggested in what I have said earlier. In this
postcolonial era, business must be conducted be-
tween sovereign governments on a basis of
mutual self-respect. This is a point of great
importance. Peoples who have only recently
achieved their independence are fiercely sensi-
tive to the danger of losing it or compromising
it — as they should be, and as indeed we are
ourselves.
We must treat these nations with respect if
we expect them to develop the self-respect that
is essential to responsible government. This
does not mean paternalism. Nor is it a question
of being nice to people — or of not hurting their
feelings. We have a great stake in encouraging
these new nations to preserve and develop their
national pride, which is an essential and con-
structive force in biiilding their societies.
Dealing with flie now nations under these
circumstances is often a delicate business. It is
always a complex business. We can teach — at
the same time that we are trying to learn. We
can seek to persuade. We can help them to
identify their own best interests. We can lead.
But we would defeat our own interests- — and be-
tray our own traditions of democi-acy and
diversity — if we tried to coerce or compel them
by force — except, of course, where their conduct
threatens our vital national interests or the
peace of the world.
Leadership and Responsibility
Another factor that conditions our dealings
with other nations is that, as the global power
of the free world, we Americans must take con-
sistently responsible positions. We cannot af-
ford to pursue narrow objectives that would
\\eaken free- world defenses or impoverish
other free- world countries or defeat larger free-
world objectives. We cannot afford to sacrifice
long-term objectives to short-range advantages,
or to short-lived popularity.
Responsibility in the conduct of foreign af-
fairs is essential to our leadership of the fi-ee
world. Those of us who are privileged to help
the President with the conduct of American for-
eign policy are sometimes tempted to envy the
foreign office of some smaller nation that can
indulge in the luxury of irresponsible action.
Not being a global power, the consequences of
its irresponsibility are limited. But for Amer-
ica to act in the same fashion would produce
consequences on a giant scale that could seri-
ously endanger free-world interests.
Interdependence: The Example of Cyprus
The fact that, the policies and actions of a
gigantic America are felt to the far corners of
the earth — that a whisper in Washington is
amplified to a shout halfway around the woi'ld —
is only one of the sobering elements that condi-
tion the employment of power. Another is the
high degree of interdependence among na-
tions— which is a special characteristic and
quality of the modern world. Today tlie econ-
omies of the free world are closel}' intertwined.
So also are our political interests. Actions
taken in one part, of the world can instantly
and automatically atl'ect the well-being of peo-
ples thousands of miles away.
476
DEPARTMENT OF .ST.\TE BULLETIN
As a result, the United States can never ap-
I^roacli any foreign policy problem in isolation.
Almost every problem must be dealt with on a
number of different levels.
Tliis point is well tlemonstrated by the dilli-
culties that we face in connection with Cyprus.
There the United States has been tiying hard
to heli> bring about a solution to a problem
which, in its simplest tenns, is a neighborhood
quarrel between 450,000 Greek Cypriots and
100,000 Turkish Cypriots on a tiny Mediter-
ranean island. If the Cyprus problem were
merely a neighborhood quari-cl, America could
ignore it. But such, unfortunately, is far from
the case. This bloody feud has already had
consequences far beyond the island. Its con-
tinuance jeopardizes world peace and imperils
a wide range of vital Western interests. I
know of no better illustration of the complexi-
ties of international affairs in the modern world
than this seemingly simple dispute on a small
island.
First, as a result of ethnic ties and a compli-
cated treaty structure, this local quarrel threat-
ens to produce an armed conflict between Greece
and Turkey.
Second, it affects the relations of the Greek
and Turkish Governments with the Government
of Cyprus.
Third, it concerns Great Britain as one of
the guarantor powers with strategic bases on
the island.
Fourth, it involves the relationship of the
Government of Cyprus to the British Common-
wealth, of which it is a member.
Fifth, it threatens the stability of one flank
of our NATO defenses and consequently con-
cei'ns all NATO partners.
Sixth, because the Security Council has
undertaken to keep peace on the island, the
Cyprus problem has become an active item in
the parliamentary diplomacy practiced in New
York.
Seventh, it has stimulated a new relationship
between the Government of Cyprus and other
nona lined countries with which it has recently
sought to associate itself.
Eighth, because of Archbishop Makarios'
flirtations with Moscow, this local quarrel could
bring about the intrusion of the Soviet Union
into the strategic eastern Mediterranean.
Each of these elements bears on the others.
And one element quite often operates to frus-
trate the effective utilization of others in the
search for a solution.
This recent phase of the Cyprus problem has
occupied the day-and-night attention of some
of the world's leading statesmen for many
months — including the President of the United
States. Intensive diplomacy has averted a suc-
cession of crises — any one of which could well
have led to bloody and dangerous war. This
patient effort will, I am convinced, produce a
final solution — but only after many more days
and nights of delicate and painstaking diplo-
macy.
In the 19th century the Cyi^rus problem
might have been quickly disposed of by one or
more great powers ordering up a few gunboats.
But even in those days such an employment of
force was hazardous, since it could — and all
too often did — lead to larger conflicts. Today,
world affairs are far more intricate and the
dangers far gi'eater. Force is no longer a
substitute for diplomacy. Any effort to resolve
the Cyprus problem by force would be reckless
in the extreme.
The Pursuit of Universal Goals
The lid has been kept on the turbulent island
of Cyprus by the combined efforts of many
nations. And so it is, indeed, in most of the
dangerous crises of our time. Much of our di-
plomacy from day to day is occupied with the
constant effort to widen the community of the
concerned, to si:)read the risks and share the
burdens of keeping the peace. Some see this
process — ^by which we always seem to be con-
sulting others about the use of our jiower — as a
frustrating restraint on the use of our power.
The restraints are real and they are necessary,
but as T.S. Eliot observed in one of his plays,
"Human kind cannot bear very much reality."
Yet every leader in every walk of life knows
from his own personal experience that the leader
must share with others the task of deciding what
to do, or else he finds he is not a leader but a
loner. The exercise of power is no different in
international affairs: The strong must consult
the weak if the strong presume to act on behalf
of the weak.
OCTOBER 5, 1964
477
In exercising our power and leadership here
and there around the world, we have an enor-
mous built-in advantage over the CJommunists.
We really do share with most of mankind the
purposes which are the very stuff of American
democracy. I mean our commitment as a peo-
ple to the dignity of the human person — to the
rights of the individual— to the welfare of our
children— to the pursuit of the good life of lib-
erty in the good society — under humane govern-
ment, responsive and responsible to those who
are governed.
Men from many lands have drawn together
in the first few pages of the United Nations
Charter the essential purposes we share with
others — the aspirations for peace, and for rising
standards of life in larger freedom, which are
the aspirations proclaimed not just for Amer-
icans but for "all men" in our own Declaration
of Independence.
And we really mean it. We really want other
peoples to be free too, other nations to be inde-
pendent too, other economies to be prosperous
too. The peoples of other nations know this,
by instinct or by observation of our behavior.
And that is why so many peoples in so many
places work with us in so many different kinds
of international cooperation.
They work with us, in short, because we have
power, because we use our power with restraint,
and because we pursue goals that are universal
goals.
President Johnson Welcomes
NATO Parliamentarians
Remarks hy President Johnson
White House press release dated September 18
It is a great pleasure to welcome to the Wliit«
House this morning the NATO Parliamen-
tarians.
They are concerned with a project that is of
vital importance to all of the free world in the
Atlantic alliance, and I am pleased that I was
able to spend a few moments with them in the
Fish Room.
I know from what Congressman Wayne Hays
of Ohio has told me how much the Parliamen-
tarians have done to plan to insure that this
great instrument of freedom will flourish and
continue to keep the peace.
The Parliamentarians not only understand
the problems of the alliance but they have the
capacity and the ability to translate the con-
structive ideas into effective and practical poli-
cies. The alliance owes a great deal to the
vigorous and constructive leadership that these
Parliamentarians have provided.
We are proud of NATO's accomplishments.
It has been tested many times, and each test has
brought new confidence, new strength, and new
stature for this great organization.
I have participated in its formation, and I
have contributed all I could to its support and
maintenance.
NATO has done more than provide an effec-
tive system of defense. In President Truman's
words,^ it has permitted us ". . . to get on with
the real business of government and society, the
business of achieving a fuller and happier life
for our citizens."
I think it would be very dangerous for us to
take this alliance for granted. Danger is less
apparent now, but it certainly has not disap-
peared. The building of an effective defense
system is and must be a continuing task for all
of our countrymen.
There remains a great challenge, of course,
to move on to the closest partnership. This re-
quires understanding and cooperation. There
will be differences between us at times on tac-
tics and procedures. But over those differences,
all of us are part of the democratic alliance. We
really have built a fundamental union. We are
determined to preserve our freedom. We are all
committed to give further substance and pur-
pose to the alliance, and here the Parliamentar-
ians play a very important role. Their legis-
lative experience and their political role gives
us a special opportunity to insure that the goals
of the alliance are achieved.
The United States has made certain com-
mitments both real and substantial, and we will
meet them all. Let no one — ally or adver-
sary'— ever doubt America's determination to
fulfill its role in the alliance, to live up to its
agreement.
We are grateful for your contributions. Your
' Bulletin of Apr. 17, 1949, p. 481.
478
DEPARTMENT OF STATE BULLETIN
studies and your actions, your recommendations,
and, most of all, your firm conmiitment to the
purposes of NATO are invaluable as we seek
to build a deepening partnership of free na-
tions within the alliance.
I am delighted that you could come here and
exchange viewpoints with us. You have my
best wishes for your every success.
Organizing for Progress in Latin America
hy Thomas C. Mann
Assistant Secretary for Inter- American Ajfairs ^
I would like to say a few words today about
iinpro\"ements which have been made in the ad-
ministration of our foreign assistance program
in Latin America and more recently of the Alli-
ance for Progress — about some of the things
that have been done to get a dollar's worth for
every dollar spent for economic development
and social progress in this hemisphere.
Some years ago our aid programs for the
developing nations consisted almost entirely of
scattered teclinical assistance and were admin-
istered by an agency which was separate and
apart from the Department of State. It be-
came apparent that total separation of the two
departments concerned with activities in the
outside world was not in the national interest,
that assistance to the development efforts of
other nations was a fundamental part of our
foreign policy.
These separate entities each had its own
budget and persoimel system. Rivalries de-
veloped when there should have been teamwork.
Duplication of work and effort took place.
There was no way speedily to resolve serious
differences of opinion about how to deal with
particular problems. Different philosopliies
tended to develop with no easy way to recon-
cile them. Some of those who were responsi-
ble solely for finding solutions to political and
economic problems were tempted to regard our
foreign assistance program hirgely as a short-
term political instnmient, of use primarily as
a demonstration of our good will and of our
presence ; they tended to avoid the longer term
and harder questions of the extent to which our
aid made sense in the context of the nation's
own development efforts, and whether it would
in fact be used to promote economic and social
progress of the people. Others tended toward
the other extreme — the use of assistance funds
without regard to whether it would promote
or impede the achievement of other United
States foreign policy objectives.
The first essential step toward better coordi-
nation was taken some years ago wlien our tech-
nical assistance work, at that time administered
by the ICA [International Cooperation Ad-
mmistration] , was brought within your De-
partment of State.
However, until 1961, a major element of our
foi'eign assistance — development lending — re-
mained in a separate agency. President Ken-
nedy's first major overhaul of foreign assist-
ance was to bring both technical and capital
aid — grants and loans — into the new Agency
for Inteniational Development.^ Tliis organi-
zation change was designed to provide a single
agency to administer our assistance effort as a
imified whole.
' Address made at a meeting of regional chambers of
commerce at Brownsville, Tex., on Sept. 17 (press re-
lease 404 dated Sept. 16) .
- For background see Bulletin of Apr. 16, 1961, p.
507, and June 19, 1961, p. 977.
479
Then, a year later, President Kennedy took
another important step forward, again based
on an important insight into our efl'orts in for-
eign affairs. All our foreign policies, and all
our work abroad — including our foreign assist-
ance— must be operated as a coherent efl'oi-t.
This is particularly true in the case of Latin
America, where the Alliance for Progress, in
1961, had set out a broad statement of princi-
ples for economic and social development in the
hemisphere which had quickly become basic
and crucial to our whole foreign policy. In
1962 the AID officials who worked on a par-
ticular country were moved into offices adjoin-
ing those occupied by Foreign Service pereon-
nel working on the same country. This was
called working "back to back." As a result
AID and Foreign Service personnel working
in the same area came to know each other and
to consult more and coordinate better with each
other. The Administrator of AID, David Bell,
is one of the ablest and most dedicated public
servants I have known in Washington, and un-
der his direction extraordinary progress has
been made in coping with the problems I
mention.
President Johnson took an additional impor-
tant step. He ordered that the Latin American
bureau in the State Department and the Latin
American division of AID be put under a
single head.*
After 6 months of trial, I am glad to be able
to report to you that the coordination we have
achieved exceeded our expectations.
Because there is a single line of command,
decisions can be quickly made and differences
of opinion quickly resolved. Because all of the
Department's Latin American personnel now
have responsibility for all aspects of our rela-
tions with our neighbors to the south, there is
wider staff understanding of all our programs
and all our policies — including our efforts to
speed economic development and social progress
throughout the hemisphere. All aid projects
may now be weighed in all their aspects; no
longer is it possible to decide a particular prob-
lem from a compartmentalized rather than an
overall point of view.
Because AID/Foreign Service personnel
have able, dedicated, experienced officers it has
been possible in some cases to put AID per-
sonnel, and in other cases Foreign Service per-
sonnel, in overall charge of all country affairs,
political, economic, and AID. Those officers
who discharge functional responsibilities for
the entire area are getting better geogi-aphic
staff support.
One of the visible signs of achievement is
that it was possible in the first 6 months of
1964 to obligate more money for more projects
in Latin America than it was possible to do
during the whole of 1963. But, more impor-
tant, I believe that the quality of the projects
api^roved was superior and contributed more
directly to economic develoj^ment and social
progi'ess in Latin America than ever before.
Inter-American Committee
And now I should like to talk about another
equally important organizational improvement
that has been made.
The Charter of Punta del Este'' states that
the alliance should
. . . enlist the full energies of the peoples and gov-
ernments of the American republics in a great coopera-
tive effort to accelerate the economic and social devel-
opment of the participating countries of Latin
America ....
If it is to succeed, tlie alliance must be a
partnership. The energies of other govern-
ments and other peoples as well as our own ef-
forts are essential if we are to succeed. As
President Joluison has said : °
Progress in each country depends upon the willing-
ness of that country to mobilize its own resources,
to inspire its own people, to create the conditions in
which growth can and will flourish, for although help
can come from without, success must come only from
within. Those who are not willing to do that which
is unpopular ajid that which is difficult will not achieve
that which is needed or that which will be lasting.
So the problems which President Kemiedy,
• Ihid., Jan. 6, 1064, p. 9.
* For text, sec ibid., Sept. 11, 1961, p. 463.
" Ibid., Apr. 6, 1964, p. 537.
480
DEPARTMENT OF STATE BTJLLETIN
and later President Jolmson, had to face -were
these: How is the best way to go about mobiliz-
ing an all-out effort under the alliance both in
Latin America and in the United States?
Wliat is the best way to coordinate the efforts in
Latin America and our own efforts here at
home ?
At the Economic and Social Council meet-
ing in Sao Paulo the delegates wisely created
an Inter-American Coimnittee on the Alliance
for Progress, now commonly known as CIAP
for the initials of its title in Spanish.^
The CIAP, imder the able leadership of a
distinguished Colombian, Dr. Carlos Sanz de
Santamaria, working with some of the most dis-
tinguished economists and statesmen in the
hemisphere, including our own Walt Rostow,
held its first meeting in Mexico City in July of
this year. It began there its task of tiying to
identify the obstacles in the way of more rapid
hemisphere progress and to plan ways to elimi-
nate them. Its final report of this meeting con-
tains this statement :
CIAP is fundamentally the expression of a multi-
lateral concept of the Alliance and of the need to inten-
sify the achievements of the Alliance through multi-
lateral action. The efforts and sacrifices implied in the
Alliance are mainly the responsibility of the Latin
American peoples and they must assume a leading role
in this undertaking.
Since July the CIAP, in collaboration with
the World Bank, the Inter- American Develop-
ment Bank, the International Monetary Fund,
and our own personnel, has imdertaken studies
in depth of the economic and social problems
in Panama, Ecuador, Mexico, Colombia, Vene-
zuela, and the five Central American comitries.
All of the rest of the countries within the alli-
ance will soon be studied in a similar fashion.
Unlike mathematics, the problem of develop-
ment is not an exact science. There are wide
variations in the problems which each country
faces and in the steps which each country has
taken to meet them. Each country makes its
own plan for development, which is presented
to the CIAP by a senior official, usually at the
ministerial level. All aspects of the covmtry's
economy, including monetary and fiscal policy,
tax and land reforms, balance of payments and
• IMd., Dec. 16, 1963, p. 937.
budgetary problems, overall self-help efforts of
the cotmtry, and estimates of internal resources
available and external resources needed, are all
considered within the context of a sensible plan
for progress.
I know of no better way than through the
CIAP process of country-by-coimtry study to
become acquainted with the problems which
other nations face and to acquaint other peoples
with the problems we face here at home. I know
of no better way to bring about effective team-
work and coordination so that we can achieve
our common goals of creating a hemisphere in
which all citizens may have equal opportunity
and a better life within freedom. I have great
hopes that in the future these studies through
this multilateral mechanism will not only im-
prove tlie efficiency and effectiveness of our AID
program but that they will also speed progress
throughout the entire hemisphere.
U.S. National Committee
Finally, I should like to mention another in-
novation— the establishment in the United
States of a national committee for the Alliance
for Progress. National committees exist in
many Latin American countries. These commit-
tees are nongovernmental in character and are
made up of representatives of the private sec-
tor— the business coiranmiity — and representa-
tives of education, agriculture, labor, and other
sectors of the country which contribute to the
total effort, under the alliance. President Jolm-
son has encouraged the formation of such a com-
mittee, and we are now in the process of con-
sulting with representatives of tlie private
sector as to its composition. Wlien this com-
mittee is formed, we expect it not only to advise
and assist those responsible for the administra-
tion of our own AID program but also to help
bring to the American people the message of the
alliance and its achievements.
In these and other respects we are trying to
improve the Alliance for Progress so that the
American people will get a better return for
tlieir investment in hemisphere democracy,
decency, and progress. The people in the Rio
Grande Valley, who are so close to Latin Amer-
ica and who know so much of its problems, are
OCTOBER 5, 1964
481
in a special position to help us explain to our
people the magnitude of the tasks and the op-
poitunities which we face in building a better
hemisphere for every American between the
Straits of Magellan and the Great Lakes. I
know we can continue to count on your support
for this noble effort and that you share with me
my confidence in the ultimate triumph of eco-
nomic and political freedom.
U.S. and Soviet Union Exciiange
Notes on Interference With Ships
Follovnng are two exchanges of notes be-
tween the United States and the Soviet Union
regarding interference with ships in intema-
tioiud waters.
FIRST EXCHANGE
U.S. Note of April 22
The Department of State requests that the
Embassy of the Union of Soviet Socialist Ke-
publics call to the attention of its Government
the following recent serious violation by the
Soviet merchant ship POLOTSK of the In-
ternational Eegulations for Preventing Colli-
sions at Sea, approved by the International
Conference on Safety of Life at Sea, London
1948 and adliered to by the U.S.S.R.
During daylight hours, shoilly after 2:00
p.m., on April 9, 1964, while proceeding on the
high seas in the waters of the soiithem end of
the Eed Sea, the United States Navy Seaplane
Tender DUXBURY BAY was harassed and
placed in serious jeopardy of imminent colli-
sion by the negligent and unlawful maneuvers
of tlie Soviet merchant ship POLOTSK.
At about 2 :20 p.m., local time ( 11 :20 G.M.T. ) ,
on April 9, 1964, in the approximate position of
13°38' N^ 42°59' E, and while proceeding on
the high seas in the waters of the Red Sea on
course 159° true at a speed of 13 knots, DUX-
BURY BAY was overtaken by the Soviet mer-
chant vessel POLOTSK. POLOTSK ma-
neuvered from a position of about 500 yards on
the port quarter of DUXBURY BAY to with-
in 230 yards off her port beam and then cut
sharply across the bow of the United States
Na\'y ship, clearing by a mere 10 yards. PO-
LOTSK, thereafter, continued drawing ahead
to a position of about 2,000 yards on the star-
board bow of DUXBURY BAY.
These radical maneuvers of POLOTSK were
in clear and flagrant violation of Rule 24 of
the International Rules for Preventing Colli-
sions at Sea in that POLOTSK, as the overtak-
ing ship, did fail to keep clear of the DUX-
BURY BAY which was the privileged over-
taken ship. On the contrary, POLOTSK
created serious imminent risk of collision, jeop-
ardizing the safety of the ship and the lives
of the crew on board DUXBURY BAY. The
navigational situation, moreover, was aggra-
vated by the presence of the West German Tug
and Tow (SURABAYA-1) in the vicinity
which restricted and hampered maneuvering
room of DUXBURY BAY.
Despite the dangerous and unlawful actions
of the Soviet ship POLOTSK against DUX-
BURY BAY, the United States naval ship at
all times complied with the International Regu-
lations for Preventing Collisions at Sea, 1948,
and successfully avoided collision.
The Government of the United States, pro-
testing the illegal actions of the Soviet mer-
chant vessel POLOTSK which hazarded the
safe navigation of DUXBURY BAY, requests
that the Government of the Union of Soviet
Socialist Republics undertake all necessary and
appropriate measures to ensure compliance in
the future by Soviet vessels with the Interna-
tional Regulations for Preventing Collisions at
Sea.
"Washington, April £2, 1964.
Soviet Note of August 5
UnofBcial translation
The Embassy of the Union of Soviet Socialist Re-
publics presents its compliments to the Department of
State of the United States of America and, referring
to the latter's note dated April 22, 1964, has the honor
to state the following.
As a result of a tliorough investigation conducted by j
competent Soviet organizations, It has been determined
that the American naval vessel Duxbury Bay (No. 38)
sailed through the Suez Canal in the same group with
the Soviet merchant vessel Polotsk and followed it into
the Red Sea In a southern direction not far from it
within range of visibility for a distance of five to ten
482
DEPARTMENT OF STATE BULLETIN
miles. On Ainil 9, 1964 at 3200 hours noon Moscow
time the Amei-ican naval vessel approached the Polotsk
to starboard and astern and followed it at a distance
of less than one mile on a parallel course. At 1300
hours, when the Soviet vessel Polotsk was at a point
13°48' N. Lat. and 42°55' E. Long., the American naval
vessel caught up with the Polotsk and held on a parallel
■cour.se to starboard and to the stern [of the Soviet
vessel] at a distance of 100 to 200 meters for 20 to 30
minutes. After this, performing a dangerous
maneuver, the vessel passed the Polotsk at a distance
of 30 meters from the stem and crossed over to port
and began to gain distance.
The captain of the Soviet vessel Polotsk notified the
proper Soviet organizations of this incident and in-
formed them that the Polotsk did not change its course
or its speed, being in the position of a vessel about to
be overtaken, and acted strictly in accordance with the
International Regulations for Preventing Collisions at
Sea. This has been confirmed by the course chart and
entries in the ship's log and engine log, and other
documents.
The reference to difficulties in maneuvering by the
Duxl)ury Baij which ostensibly occurred as a result of
the presence in the immediate vicinity ©f the West
Oerman vessel Sia-abaiija-l cannot be accepted because
the towed floating dock Surahaiya-l, as has been de-
termined, was at that time at a distance of five or six
miles and therefore could not have complicated the
situation.
In connection with the above the Embassy rejects
the protest of the Department of State on this issue
of the alleged irregular action of the Soviet merchant
ship Polotsk as unfounded.
At the same time the Embassy considers it neces-
sary to invite the attention of the Department of State
to a whole series of other cases where the activity of
naval vessels of the U.S.A. maneuvering in dangerous
proximity to Soviet vessels has created a threat to
human life and to the safety of ship navigation.
On April 25, 1904 at 1100 hours local time at a point
19°50' N. Lat. and 75°11' W. Long, an American war
vessel with the marking WBV approached the Soviet
merchant vessel Leonid Leonidev to within a distance
of 60 meters and, maneuvering in dangerous proxim-
ity to it, asked for the port of loading and other
information.
On May 28, 1964 at 0430 hours Moscow time a patrol
vessel of the U.S. Navy (No. 1033) at a point 25°11'
N. Lat. and 79°5' W. Long, approached to a distance
of less than 100 meters from the Soviet passenger
steamer Turktneniya and repeatedly lit up the hull
and the captain's bridge of the vessel with a powerful
searchlight, blinding the navigating personnel and
creating a danger of collision.
On June 1, 1964 from 0100 hours to 1320 hours local
time at a point 57°21' N. Lat. and 150°28' W. Long,
the Stories, a vessel of the U.S. Coast Guard (No. 38),
executed dangerous maneuvers close to the Soviet
whaling mother ship Dalni Vostok, cutting across its
course and approaching to within 50 meters of tlie
Soviet vessel.
Inviting the attention of the Department of State
to these facts, the Embas.sy hopes that the authorities
of the USA will take the proper measures to prevent a
repetition of such dangerous and improper acts on the
part of American vessels in the future.
Wasiiinoton, August 5, L'XS'i.
SECOND EXCHANGE
U.S. Interim Note, August 18
The Embassy has been instructed by the
United States Government to inform the Min-
istry of Foreign Affairs that thorough investi-
gations of alleged dangerously low overflights
of Soviet vessels by United States aircraft are
now being undertaken. Preliminary informa-
tion which has been received fails to show any
improper activity or movement by U.S. planes
or vessels which endangered or hindered Soviet
vessels. However, the Ministry may be as-
sured that the Government of the United States
will pursue a complete investigation of all
charges raised in the Ministry's note and will
inform the Soviet Government of the results.
The United States Government wishes to
recall, as frequently stated in the past in re-
sponse to similar Soviet charges, that United
States aircraft and vessels throughout the
world are operating under the strictest instruc-
tions in full accord with international stand-
ards and practices. It is, of course, common
practice for ships and aircraft to establish
mutual identification in international waters.
In accordance with tliis practice. United States
patrol planes often seek to identify ships en-
countered whose position and identity are not
otherwise known. Pilots of these planes are
under strict instructions, however, not to ap-
proach closer than is necessary for this purpose.
Moscow, August 18, 1964.
U.S. Note of September 15
Press release 403 dated September 15
The Embassy of the United States of Amer-
ica acknowledges the receipt of the note of the
Soviet Ministry of Foreign Affairs dated
August 3, 1964.
The Embassy has been instructed by the
OCTOBER 5, 19G4
483
United States Government to inform the Soviet
Ministry of Foreign Affairs that the investiga-
tion mentioned in tlie Embassy's interim note of
August 18, 1964 of alleged dangerously-low
o\erflights of Soviet vessels by United States
aircraft and of charges of dangei'ous maneuvers
by United States vessels in the Ministry's note
No. 45 of August 3, 1964 and the Soviet Embassy
note No. 24 delivered in Washington August 5,
1964 has been completed. The investigations
reveal that the Soviet charges are without foun-
dation.
Detailed investigation of each of the Soviet
charges found that in no case did American air-
craft harass, endanger, or provoke any Soviet
ships. The distances maintained by United
States aircraft were at all times appropriate and
in no instance constituted "dangei'ously-low
overflights." In the one specific charge in the
Soviet note of August 3 that two American mili-
tary aircraft overflew the Soviet vessel
"Frunze" at a height of 50 meters on June 27,
investigation establishes that the Soviet charge
is in error. The two United States aircraft at
no time approached closer than an altitude of
500 feet and a lateral range of 3,000 feet. The
aircraft did not overfly the "Frunze" nor make
any harassing or provocative maneuvers. In
the incident in the Soviet note of August 3 in-
volving the Soviet steamer "Dubna" on July 8,
it has been established that no United States air-
craft were in the area of the alleged incident
and furthermore that the aircraft number cited
in the Soviet note of August 3 is not a United
States Government aircraft number.
Detailed investigation of the shipping inci-
dents protested in the Soviet notes of August 3
and August 5 revealed the following: In the
case of the Soviet vessel "Gruziya" on July 21,
the American vessel at no time approached
closer than 300 yards to the starboard of the
vessel nor in any way created a threat of col-
lision. In one incident of April 25 involving
the Soviet merchant vessel "Leonid Leonidev"
there was no United States Navy or United
States Coast Guard ship in the area at the time
and place specified. In both of the other cases
in the Soviet note of August 5, United States
vessels were in the vicinity of Soviet vessels, but
did not engage in any dangerous maneuvers.
The Soviet note charging that a Coast Guard
vessel on June 1 approaclied within 50 meters of
the Soviet vessel "Dalni Vostok," is in error.
The Coast Guard vessel confirms, however, that
it witnessed another ship, which was not of
United States registry, nm parallel to the Soviet
vessel and cut across the bow of the Soviet ship.
United States commanders are under strictest
instructions not to approach foreign vessels
closer than is necessary for common practice
of establishing identification in international
waters. The United States adheres to the
rights of all ships and aircraft to engage in
peaceful operations in and over international
waters without harassment and United States
vessels and aircraft are instructed to perform
accordingly.
On the other hand, on a number of occasions
in recent months. United States vessels have
encountered harassment by Soviet ships.
In the last three months alone the following
incidents occurred : On June 30 at a position of
40°35' north and 65°43' west, the Soviet trawler
"Rauda" P5054 with stern designation "251(5-
Port Dayoda," maneuvered dangerously within
150 yards of the U.S.S. "D.A. Joy" causing the
United States vessel to sound the danger signal
and use emergency speeds to avoid collision.
On August 18, 1964 the Soviet vessel "Dubna,"
in passage between Cuba and Haiti, maneuvered
irresponsibly near the U.S.S. "Dash" and
created a dangerous situation.
In bringing these incidents to the attention
of the Soviet Government, the Government of
the United States assumes that the Soviet Gov-
ernment will take the necessary measures to
assure that Soviet pilots and masters do not
violate international practices.
Moscow, September 15, 1964.
Soviet Note of August 3
Unofficial translation
The Soviet passenger ship "Gruziya," bound for Cuba
with passengers on board, July 18 on the Atlantic
Ocean, at 32°12' north latitude, 62°32' west longitude,
was subjected to an overflight by dangerously low fly-
ing aircraft with identifying marks of military air-
craft No. 151349. Continuous overflights of the Gru-
ziya continued from 1515 hours to 1710 hours. On
10 July at 29°2' north latitude, TO"?' west longitude,
the Gruziya was again subjected to overflights by the
same aircraft from 1652 hours to 17.34 hours. On 21 ,
484
DEPARTMENT OF STATE BULLETIN'
July at 0145 hours at 25°3-l' north latitude, 79°28'
west longitude, the U.S. naval vessel Kretchmer (No.
329) approached the Gruziya and until 0307 hours
maneuvered around the Soviet ship and not only in-
terfered with the movement of the Gruziya but created
a threat of collision, subjecting the lives of the passen-
gers to danger.
Such inadmissible activities by American military
aircraft and vessels in connection with Soviet passen-
ger and transport vessels are being carried out in
international waters in various parts of the world —
the Pacific, Atlantic, Mediterranean, North and other
seas.
Thus on 18 June a four-motored U.S. military air-
craft No. 150G09 made low-level flights over the diesel-
electric ship "Lena" in the Atlantic, 29°40' north lati-
tude. 5G°00' west longitude. American military air-
craft numbered 147951, 148356, 141242, 145907 and
145904 made repeated overflights of the Soviet passen-
ger ship "Pobeda" from 23 through 30 June in the At-
lantic.
Two American military aircraft, 136605 and 136037,
on 27 June made overflights of the ship "Frunze" at
a height of 50 meters in the North Sea at .')7°40' north
latitude and S°.55' east longitude. On July 8 U.S. mili-
tary aircraft No. 8921-794 repeatedly flew at a low
level over the Soviet steamer "Dubna," located in the
Pacific Ocean at 29°13' north latitude and 131°44'
east longitude.
On 16 July the steamer "Dollnsk," located in the
Mediterranean Sea 36''50' north latitude. 12°45' west
longitude, was subjected to overflight by U.S. military
aircraft No. 131529, which for 30 minutes flew over
it at a dangerously low altitude.
18 July U.S. military aircraft No. 140160 made re-
peated overflights of the Soviet ship "Kamenets-Po-
dolsk" in the Japan Sea at 44°14' north latitude and
137°3S' east longitude.
As is well known, the Soviet Government already has
called the attention of the U.S. Government to the in-
admissibility of such actions. However, the abovemen-
tioned and many other facts demonstrate that U.S.
authorities have not taken the necessary measures to
stop these dangerous and provocative actions although
it would seem the U.S. should be no less interested
than the U.S.S.R. and other countries In the preserva-
tion of the principle of free and secure navigation on
the open seas.
The Soviet Government protests against the afore-
mentioned actions of U.S. military aviation and expects
that necessary measures toward cessation of such ac-
tions which disturb the freedom of the seas in inter-
national waters and which can lead to serious con-
sequences will be undertaken by the U.S. Government.
Moscow, August 3, 1964.
Advisory Commission Reports
on Exchange Program
The Department of State announced on Sep-
tember 14 (press release 400) that the U.S.
Advisory Commission on International Educa-
tional and Cultural Affairs had that day for-
warded to the Congress its second annual re-
port on the programs operated under the
Fulbright-Hays Act (Mutual Educational and
Cultural Exchange Act of 1961). ^
The report notes that, since the submission
of the first annual report, later reprinted as A
Beacon of Ilofe^ the Department of State has
taken a number of effective steps in keeping
with recommendations of the Commission. It
has set up an Interagency Council on Inter-
national Educational and Cultural Affairs, a
Committee on English Language Teaching, a
Committee on International AtMetics, and a
study group on research in international edu-
cation. In addition, it has vested the operation
of overseas schools in an Overseas School Pol-
icy Committee made up of the Assistant Sec-
retary of State for Educational and Cultural
Affairs, the Assistant Secretary of State for
Administration, and the Assistant Adminis-
trator of the Agency for International De-
velopment.
Other actions taken on the basis of recom-
mendations in the first report have led to im-
provement in the testing of the English lan-
guage of persons coming to the United States
on Government grants, as well as to a number
of improvements in regard to placement, orien-
tation, and programing of foreign students and
other visitors.
' H. Doc. 364, 88th Cong., 2d sess. For the names of
the members of the Commission during the reporting
period, see Department of State press release 400 dated
Sept. 14.
^ A limited number of copies of the report, A Beacon
of Hope: The Exchangc-nf-Pcrsons Program, are avail-
able upon request from the oflice of the U.S. Advisory
Commission on International Educational and Cultural
Affair.s, Room 4429, Department of State, Washington,
D.C., 20520.
OCTOBEK 5, 1964
485
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
U.S. Makes Proposal on Financing
Peacekeeping Operations of U.N.
Folloioing is the text of a statement made on
Septemher H before the Working Group on the
Examination of the Administrative and Budget-
ary Procedures of the United Nations hy U.S.
Representative Francis T. P. Plimpton^ togefJier
with the text of a working paper on the financ-
ing of U.N. peacekeeping operations suhmitted
to the group hy the U.S. delegation on the same
day.
STATEMENT BY MR. PLIMPTON
U.S./U.N. press release 4438
Mr. Chairman [S. O. Adebo, of Nigeria] : At
our opening meeting of this session of the
Working Group on September 9, all of us were
greatly impressed with the attitude of mind and
deteiTnination of pui-pose with which you ap-
proached the task before us. You pointed out
clearly the magnitude of the difficulties facing
this organization, despite the strenuous efforts
which many of us have made to overcome them.
You called upon all of us to persevere in our
endeavors and to attempt to find a solution to
these difficulties during this session, and you
pledged your best efforts to assist us in achieving
that objective. With your leadership, I am
confident that this Working Group can make
a significant contribution toward a solution of
the critical financial problems facing our
organization.
I was also greatly impressed, Mr. Chainnan,
by the statement of the Secretary-General on
September 9. He spoke to us in tenns which
are basic to the success of this organization.
He spoke of the need to find an accommodation,
an agreement among conflicting points of view,
which would result in providing this organiza-
tion with the funds necessary to continue its
activities. He emphasized that the success of
attempts to reach agreement on new arrange-
ments for the future depended very much on
finding a foiTnula which also took care of the
past, saying, ". . . failure to take care of the
past may not leave us with much of a future."
This is an obsei"vation with which we, and, I be-
lieve, almost all members of this group, cannot
but agree.
The Secretary-General pointed out that the
time within which we can seek solutions is now
running out and that we must find solutions
very soon. Yet he expressed optimism that we,
as reasonable men, would be able to come up
with answers to the difficult questions confront-
ing us. I hope, Mr. Chairman, that all of us
will approach this session with the same degree
of courage and resolve that was evidenced in
the Secretary-General's eloquent statement.
This morning we heard the statement of the
distinguished representative of Argentina, in-
dicating the efforts which a gi'oup of develop-
ing countries, members of this Working Group^
have made in an attempt to arrive at some con-
sensus on future arrangements for initiating
and financing U.N. peacekeeping operations.
Wo all owe a debt of gratitude to these coun-
tries. We have watched their efforts with great
interest, and we know how diligently they have
labored in an effort to find a basis for agree-
ment among all states concerned. Indeed,
membei-s of this group have been kind enough
to share with us some of the ideas which they
have developed, and I am certain that thej' will
find certain of those ideas reflected in the work-
ing paper which my delegation has placed be-
fore the Working Group.
This brings me, Mr. Chairman, to the work-
ing paper, which I would like to introduce to
you with a brief statement.
The working paper represents an effort
which has extended over the better part of the
year to formulate new arrangements which will
facilitate the initiation and financing of future
peacekeeping operations and which will be
486
DEPARTMENT OF STATE BULLETIN
both compatible with the responsibilities of the
United Nations under the charter and fair to
its members. "VVe have attempted to develop
an approach which will help to overcome politi-
cal disputes as to the past and at the same
time make possible the carrying on of future
peacekeeping operations with an assurance that
the necessary funds will be provided.
As I have mentioned earlier and as appears
from the working paper before us, we have
consulted widely in an attempt to an-ive at
proposals which we could place before this
group. "VYe have consulted with most of the
delegations represented here today, including
both those with whom we have agreed in the
past and those with whom we have had differ-
ences of opinion. We believe that this work-
ing paper represents a reasonable approxima-
tion of the kind of consensus which this group
can hope to arrive at during this session, and
it is offered as representing the views of a
Government which hopes very much that such
a consensus can be agreed to in the interest of
the organization and all its membere.
Turning to the contents of the working paper
itself, I wish first of all to refer to certain
principles stated in paragraph B of the paper.
These principles, which we believe should guide
us in establishing new procedures and methods
for initiating and financing peacekeeping oper-
ations which involve the use of military forces,
are the following:
1. Any new arrangements should make it possible to
take due account of the interests and capacities of all
Member States, but must not permit any State to ob-
struct the United Nations in the discharge of its peace-
keeping responsibilities.
2. The Security Council has primary responsibility
under the Charter for the initiation of peacekeeping
operations involving the use of military forces.
3. The General Assembly may recommend such peace-
keeping operations, in the event that the Security Coun-
cil is unable to act.
■4. All Member States have a responsibility under the
Charter to contribute to expenses of such United Na-
tions peacekeeping operations when assessed by the
General Assembly under Article 17.
5. In apportioning expenses, account should be taken
of any excessive burden which the cost of expensive
operations might impose on the economies of developing
countries.
6. United Nations procedures should be adapted to
take into account the interests of those Members, in-
cluding Permanent Members of the Security Council,
that bear special responsibilities. Member States mak-
ing large financial contriliutions for such peacekeeping
operations should have an appropriate voice in the
determination of methods of financing such operations.
We make no claim of originality in formu-
lating these principles ; indeed, they follow lines
which have been overwhelmingly endorsed by
members of this Working Group.
Following the statement of principles in the
working paper, there appears in paragraph C a
listing of a number of interdependent elements
which we believe should be included in any new
ari-angements agreed upon for initiating and
fuiancing future peacekeeping operations in-
volving the use of military forces.
The first element which we list is that which
is embodied in article 2-i of the charter; namely,
the primary responsibility of the Security Coun-
cil for the maintenance of international peace
and security. We believe that it would be well
to agree that the General Assembly would not
authorize or assume control of peacekeeping op-
erations involving the use of military forces
unless the Security Council had first considered
the matter and had demonstrated an inability to
take action.
The next three items listed under part C of
our working paper relate to a proposal to estab-
lish a Special Finance Committee as a standing
committee of the General Assembly. We visu-
alize such a committee as being similar in com-
position to the present Working Group of 21
in that it would include the permanent members
of the Security Council and a relatively high
percentage of those member states in each geo-
graphical area which are large financial con-
tributors to the United Nations. We would ex-
pect this comjjosition to be established by new
rules of procedure of the General Assembly.
So far as the role of this Special Finance Com-
mittee is concerned, we would expect that the
General Assembly would give it a status such
that the Assembly, when faced with the task of
apportioning expenses for peacekeeping opera-
tions involving the use of military forces, would
act only on the recommendations of the Special
Finance Committee, adopted by a vote of two-
thirds of the committee membership. We
should also expect that, if the Assembly did not
accept a particular recommendation of the
Special Finance Committee, the committee
OCTOBER 5, 1004
487
would resume consideration of the matter with
a view to recommending an acceptable alterna-
tive.
When making recommendations to the Gen-
eral Assembly, we should expect the Special
Finance C!ommittee to consider various alterna-
tive methods of financing, such as those which
have been used and discussed in the past. It
will be noted in paragraph C(5) of the working
paper that we specifically include a special scale
of assessments as one of the methods of assess-
ment available to the Special Finance Commit-
tee when considering the financing of peace-
keeping operations involving the use of military
forces. In our view such a special scale would
provide that, over a specified amoimt, states
having greater ability to pay would be allocated
higher percentages than in the regular scale of
assessments and states having less ability to pay
would be allocated smaller percentages than in
the regular scale. Members of the group are
aware, of course, of the fact that because of
existing legislation in my country, the United
States delegation would require congressional
approval before it would be able to vote for any
particular special scale of assessments in which
the United States share is in excess of one-third.
It will be noted, Mr. Chairman, that the final
paragraph of our working paper attempts to
make clear our belief that, under the proposed
new financing arrangements, the Secretary-
General should continue to be able to act under
tlie annual resolution on unforeseen and ex-
traordinary expenditures in committing funds
to finance the initial stage of a peacekeeping op-
eration initiated by the Security Council or the
General Assembly. We would expect, of
course, that any commitments in excess of those
authorized under the annual resolution on un-
foreseen and extraordinary expenditures would
be financed only on the basis of the recommen-
dation of the Special Finance Committee.
It will be readily apparent to those who have
been considering this subject for the many past
months that the proposals contained in our
working paper do not purport to comprehend
all possible approaches to the problem before
us. We hope that others will come forward
with their own comments, ideas, and proposals,
for we can assure you, Mr. Chairman, that we
will respond to your exhortation that we : ". . .
pursue our further work in a spirit of tolerance
for one another's views, in the language of
peaceful persuasion, ready to listen to others
as well as anxious to make the most effective
presentation of our own case." We sincerely
believe that with that spirit it is possible at this
session to find a basis for the agreement among
all states represented at this table which the
membership at large so ardently desires.
U.S. WORKING PAPER
u.N. doc. A/AC.113/30
The United States delegation has the honour to
present to the Working Group of Twenty-One the at-
tached Working Paper containing suggestions for
changes in the arrangements and methods for initiating
and financing United Nations peacekeeping operations
involving the use of military forces.
Last March, as members of the Working Group are
aware, the United States and United Kingdom delega-
tions indicated that they were prepared to explore
with other Members of the United Nations, in the first
instance those represented in the Working Group of
Twenty-One, ways to reinforce the capacity of the
United Nations to undertake and finance such peace-
keeping operations in the future. Accordingly the
United States and United Kingdom delegations at that
time suggested certain ideas for discussion, and ex-
plored those ideas, informally and in broad outline,
with various members of the Working Group, including
the Soviet delegation.
The attached Working Paper embodies the main
lines of these ideas and the salient features of the sug-
gestions then made, as modified by subsequent discus-
sions. It is now submitted by the United States for
consideration and discussion in the Working Group.
These suggestions presuppose settlement in some
manner of arrears for past peacekeeping operations.
Such payments may take any number of possible forms
so long as they conform to the United Nations Charter
and Financial Regulations.
Arrangements and Methods fob Initiating and
Financing United Nations Peacekeeping Opera-
tions Involving the Use of Miutaky Forces
A. To preserve and reinforce the peacekeeping ca-
pacity of the United Nations, it is in the interest of the
entire membership of the Organization that there be
established, within the framework prescribe<l by the
Charter, generally acceptable new procedures and
methods for the future initiation of United Nations
peacekeeping operations involving the use of military
forces and the obtaining of necessary financing for such
operations.
These procedures and methods must safeguard the
488
DEPARTMENT OF STATE BTTLLETIir
capacity of the United Nations to undertake and carry
on successfully such future peacekeeping operations.
Within the scope of this objective, they should also take
account of the interests and capacities of all Member
States and the special status under the Charter of cer-
tain of them.
B. In establishing such procedures and methods, par-
ticular consideration should be given to the foUovring
principles :
1. Any new arrangements should make it possible to
take due account of the interests and capacities of all
Member States, but must not permit any State to ob-
struct the United Nations in the discharge of its peace-
keeping responsibilities.
2. The Security Council has primary responsibility
under the Charter for the initiation of iJeacekeeping
operations involving the use of military forces.
3. The General Assembly may recommend such peace-
keeping oi)erations, in the event that the Security Coun-
cil is unable to act.
4. All Member States have a responsibility under the
Charter to contribute to expenses of such United Na-
tions peacekeeping operations when assessed by the
General Assembly under Article 17.
5. In apportioning expe.ises, account should be taken
of any excessive burden which the cost of expensive
operations might impose on the economies of developing
countries.
6. United Nations procedures should be adapted to
take into account the interests of those Members, in-
cluding Permanent Members of the Security Council,
that bear special responsibilities. Member States mak-
ing large financial contributions for such peacekeeping
operations should have an appropriate voice in the
determination of methods of financing such operations.
C. Arrangements for embodying these considerations
in the initiation and financing of United Nations peace-
keeping operations involving the use of military forces
would include the following interdependent elements :
1. All proposals to initiate such peacekeeping opera-
tions would be considered first in the Security Council.
The General Assembly would not authorize or assume
control of such peacekeeping operations unless the
Council had demonstrated that it was unable to take
action.
2. The General Assembly would establish a standing
special finance committee. The composition of this
committee should be similar to that of the present
Working Group of Twenty-One : that is, it would in-
clude the Permanent Members of the Security Council
and a relatively high percentage of those Member
States in each geographical area that are large finan-
cial contributors to the United Nations. It would be
constituted under and governed by firm rules of pro-
cedure of the General Assembly.
3. In apportioning expenses for such peacekeeping
operations, the General Assembly would act only on a
recommendation from the committee passed by a two-
thirds majority of the committee's membership.
4. In making recommendations, the committee would
consider various alternative methods of financing, in-
cluding direct fiDancing by countries involved in a dis-
pute, voluntary contributions, and assessed contribu-
tions. In the e\ent that the Assembly did not accept
a particular recommendation, the committee would
resume consideration of the matter with a view to
recommending an acceptable alternative.
5. One of the available methods of assessment for
peacekeeping operations involving the use of military
forces would be a special scale of assessments in which,
over a specified amount, States having greater ability
to pay would be allocated higher percentages, and
States having less ability to pay would be allocated
smaller percentages than in the regular scale of
assessments.
6. Pending action by the General Assembly on finan-
cial arrangements for such a peacekeeping operation
initiated by the Security Council or General Assembly,
the Secretary-General would continue to be authorized
under the provisions of the annual resolution on un-
foreseen and extraordinary expenditures, to commit up
to .$2 million (and with the concurrence of the Advis-
ory Committee on Administrative and Budgetary
Questions up to .$10 million) to finance the initial stage
of an operation. Commitments and expenditures above
this initial amount could be made by the Secretary-
General only after the General Assembly had adopted
a financing resolution on the basis of a recommenda-
tion of the special finance committee.
U.S. Regrets Soviet Veto of U.N.
Resolution on Malaysia Complaint
Statement by Adlai E. Stevenson
U.S. Representative in the Security Council ^
I want to thank the distinguished representa-
tives of the Ivory Coast, of Morocco, and of Nor-
way for again helping us to a conclusion of a
controversy between two members of the United
Nations which has been difficult for all of us
because of the friendly relations that most of us
enjoy with both.
I cannot refrain from expressing at the con-
clusion of our vote regret and surprise that the
representative of the Soviet Union has pre-
vented this Council from exercising its duty
in a manner clearly considered essential by all
of the Council members except the representa-
^ Made in the U.N. Security Council on Sept. 17 (U.S./
U.N. press release 4439). For a statement made by
Ambassador Stevenson on Sept. 10, see Bulletin of
Sept. 28, 1964, p. 448.
489
tives of Czechoslovakia and the Soviet Union.
The situation brought to the urgent attention
of this Council by Malaysia has already resulted
in the use of force outside of the framework of
the charter, the loss of life, the violation of the
territorial integrity of a member of the United
Nations, and the aggravation of already serious
tensions between two member states which have
endangered the peace for some time. Malaysia
has come here in the exercise of rights and duties
appertaining to all signatories of the charter.
And the distinguished representative of Indo-
nesia has frankly explained how and wliy his
Government has seen fit to use force in this way.
The overwlielming majority of the members
of this Council after due deliberation and
serious reflection have come to the conclusion
that it was incumbent upon the Council in the
discharge of its responsibilities to act prompt-
ly— not just to bring an end to the use of force
and the loss of life and the violation of the
territorial integrity of a member, but also to
ask the parties through a peaceful instriunent
of their own making to seek to settle their dif-
ferences peacefully around a conference table
in the manner prescribed by the charter to
which we have all pledged allegiance.
I fear, Mr. President, although I hope to the
contrary, that the refusal of your Government
[U.S.S.R.] to allow this Council to exercise its
minimum peacekeeping responsibilities under
the charter in a clear and conspicuous case
cannot but reflect on the prestige and diminish
the influence of the Security Council of the
United Nations. I also cannot help but note
that this exercise of the veto seems to be in-
consistent with the avowed desire of the Soviet
Union to strengthen the peace through the
United Nations and particularly through the
Security Council.
It is no secret that the Government of the
Soviet Union has been contending for some
time that a reactivation or a reemphasis on the
role of the Security Council offers the best
prospect for enhancing the effectiveness of the
United Nations in keeping the peace. In a
memorandum^ which was circulated to all
United Nations members on July 10, for ex-
■■■ U.N. doc. S/5811.
ample, the Soviet Government suggested — and
I quote :
The enormous changes which have occurred in the
world over the past decade, the expansion and con-
solidation of peace-loving forces, give every reason to
believe that if countries, and primarily the great
Powers which are permanent members of the Security
Council, demonstrate goodwill and a genuine desire to
preserve the peace, much can be done to enhance the
ability of the United Nations to thwart attempts to
disturb the peace and to prevent conflicts by means of
the peaceful procedures provided for in Chapter VI
of the Charter, such procedures as negotiation, good
offices, conciliation, etc.
The Soviet i-ejection of the resolution pre-
sented,'' a proposal which would have allowed
this Council to exert its influence to — and I
quote that language — "thwart attempts to dis-
turb the peace and to pre^•ent conflicts by means
of peaceful procedures" — is hardly designed to
engender confidence in the position taken by the
Soviet Government in its memorandum of July
10.
With your permission I would like also to re-
fresh the Council's memory on the contents of a
letter of December 31, 1963, from Chairman
Khrushchev to President Johnson,* a letter
which in the Chairman's own words was "dic-
tated by the interests of peace, by a desire to
contribute to the prevention of war."
In his letter, Chairman Khrushchev pro-
posed certain principles for inclusion in an in-
ternational agreement— including, and I quote
the words of the Chairman of the Council of
Ministers of the Soviet Union :
. . . recognition that the territory of states should
not even temporarily be the object of any invasion,
attack, military occupation, or any other forcible meas-
ure directly or indirectly undertalien by other states for
whatever political, economic, strategic, frontier, or
any other considerations,
... a firm declaration that neither differences in
social or ix>litical systems, nor denial of recognition or
the absence of diplomatic relations, nor any other pre-
texts can serve as a justification for the violation by
one state of the territorial integrity of another. . . .
We were genuinely encouraged to have Chair-
man Klirushchev publicly urge that "the ter-
' U.N. doc. S/579:?.
* For an exchange of letters between President John-
son and Premier Khrushchev, see Bulletin of Feb. 3,
19&4, p. 157.
490
DEPARTMENT OF Sr.\TE BULLETIN
ritory of states should not even temporarily be
the object of any invasion, attack, military oc-
cupation, or any other forcible measure. . . ."
We were truly gratified to have Chaii-man
Khrushchev publicly embrace tlie principle that
"neither differences in social or political sys-
tems, nor denial of recognition or the absence
of diplomatic relations, nor any other pretexts
can senre as a justification for the violation by
one state of the territorial integrity of another."
I am now forced to wonder whether our grati-
fication was not premature. The resolution
which the representative of the Soviet Union
has just vetoed and thus prevented the Council
from adopting did no more — and could not have
done less — than ask that the parties to the situa-
tion before the Council conduct themselves in
conformity with principles so clearly stated by
Chainnan Khrushchev. It would seem difficult
to explain how the Soviet veto today is con-
sistent with the principles espoused by Chair-
man Khrushchev last December. It goes with-
out saying that despite this veto the Security
Council remains seized of the problem brought
before it by Malaysia and will continue to follow
with the closest attention the manner in which
the paities concerned henceforth carry out their
obligations imder the charter, as those obliga-
tions have just been imequi vocally defined by
nine members of the Council.
Provisional Agenda of Nineteenth
Session of U.N. General Assembly'
U.N. doc. A/5750 dated September 10
1. Opening of the session by the Chairman of the dele-
gation of Venezuela.
2. Minute of silent prayer or meditation.
3. Credential.s of representatives to the nineteenth
session 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 of the United
Nations.
S.
9.
10.
11.
12.
13.
14.
15.
16.
IT.
IS.
19.
20.
21.
23.
24.
25.
26.
28.
29.
' To convene at Headquarters. New York, on Nov. 10,
1964.
Adoption of the agenda.
General debate.
Report of the Secretary-General on the work of the
Organization.
Report of the Security Council.
Report of the Economic and Social Council.
Report of the Trusteeship Council.
Report of the International Atomic Energy Agency.
Election of non-permanent members of the Security
Council.
Election of six members of the Economic and Social
Council.
Appointment of the members of the Peace Observa-
tion Commission.
Admission of new Members to the United Nations.
United Nations Emergency Force :
(a) Report on the Force ;
(b) Cost estimates for the maintenance of the
Force.
Report of the Committee for the International Co-
operation Year [resolution 1907 (XVIII) of
21 November 1963].
Implementation of the Declaration on the Grant-
ing of Independence to Colonial Countries and Peo-
ples : report of the Special Committee on the Situa-
tion with regard to the Implementation of the
Declaration on the Granting of Independence to
Colonial Countries and Peoples [resolution 1956
(XVIII) of 11 December 1963].
Installation of mechanical means of voting [reso-
lution 19.")7 (XVIII) of 12 December 1963].
Question of general and complete disarmament : re-
port of the Conference of the Bighteen-Nation
Committee on Disarmament [resolution 1908
(XVIII) of 27 November 1963].
Question of convening a conference for the purpose
of signing a convention on the prohibition of the
use of nuclear and thermo-nuclear weapons : report
of the Conference of the Eighteen-Nation Committee
on Disarmament [resolution 1909 (XVIII) of 27
November 1963.]
Urgent need for suspension of nuclear and thermo-
nuclear tests : report of the Conference of the
Eighteen-Nation Committee on Disarmament [reso-
lution 1910 (XVIII) of 27 November 1963].
International co-operation in the peaceful uses of
outer space : report of the Committee on the Peace-
ful Uses of Outer Space [resolution 1963 (XVIII)
of 13 December 1963].
The Korean question : report of the United Nations
Commission for the Unification and Rehabilita-
tion of Korea [resolutions 376 (V) of 7 October
1950 and 1964 (XVIII) of 13 December 1963].
Actions on the regional level with a view to im-
proving good neighbourly relations among Euro-
pean States having different social and political
systems [decision of 13 December 1963].
Effects of atomic radiation : report of the United
Nations Scientific Committee on the Effects of
Atomic Radiation [resolution 1896 (XVIII) of
11 November 1963].
OCTOBER 5, 1964
491
30. Report of the Commissioner-General of the United 44.
Nations Relief and Works Agency for Palestine
Refugees in the Near Bast [resolutions 302 (IV)
of 8 December 1949 and 1912 (XVIII) of 3 Decem-
ber lOa'J]. 45.
31. The policies of apartheid of the Government of the
Republic of South Africa :
(a) Report of the Special Committee on the Poli-
cies of apartheid of the Government of the
Republic of South Africa [resolution 1978 A
(XVIII) of 16 December 1963] ;
(b) Report of the Secretary -General [resolution
1978 B (XVIII) of 16 December 1963]. 46.
32. Report of the United Nations Conference on Trade
and Development [resolutions 1785 (XVII) of 8
December 1962 and 1897 (XVIII) of 11 November 47.
1963].
33. Accelerated flow of capital and technical a.ssistance
to the developing countries : report of the Secre-
tary-General [resolutions 1522 (XV) of 15 Decem-
ber 1960 and 1938 (XVIII) of 11 December 1963]. 48.
34. Establishment of a United Nations cajjital develop-
ment fund : report of the Committee on a United
Nations Capital Development Fund [resolution
1936 (XVIII) of 11 December 1063].
35. Activities in the field of industrial development: 49.
(a) Report of the Committee for Industrial Devel-
opment [resolution 1940 (XVIII) of 11 Decem- 50.
ber 1963] ;
(b) Report of the Secretary-General [idem].
36. The role of the United Nations in training national
technical personnel for the accelerated industriali- 51.
zation of the developing countries : report of the
Economic and Social Council [resolution 1824
(XVII) of IS December 1962]. 52.
37. The role of patents in the transfer of technology to
developing countries : report of the Secretary-
General [resolution 1935 (XVIII) of 11 December 53.
1963].
38. Conversion to peaceful needs of the resources re-
leased by disarmament : 54.
(a) Report of the Economic and Social Council
[resolution 1931 (XVIII) of 11 December
1963] ; 55.
(b) Report of the Secretary-General [idem].
39. Permanent sovereignty over natural resources : re-
port of the Secretary-General [resolution 1803 56.
(XVII) of 14 December 1962, swtion III].
40. Inflation and economic development : report of the 57.
Secretary-General [resolution 1830 (XVII) of 18
December 1962].
41. Population growth and economic development : re-
port of the Economic and Social Council [resolu-
tion 18.38 (XVII) of IS December 1962]. 5S.
42. World campaign for universal literacy: report of
the Secretary-General [resolution 1937 (XVIII) of 59.
11 December 1963].
43. United Nations training and research institute:
report of the Secretary-General [resolution 1934
(XVIII) of n December 1963]. 60.
Progress and operations of the Special Fund [reso-
lutions 1240 (XIII) of 14 October 1958 (part B,
paragraphs 10 and 54), 1833 (XVII) of 18 Decem-
ber 1962 and 1945 (XVIII) of 11 December 1963].
United Nations programmes of technical co-
operation :
(a) Review of activities [resolution 1833 (XVII)
of 18 December 19G2] ;
(b) Confirmation of the allocation of funds under
the Expanded Programme of Technical A.ssist-
ance [resolutions 831 (IX) of 26 November
19,54 and 1947 (XVIII) of 11 December 1963].
Assistance in cases of natural disaster [Economic
and Social Council resolution 1049 (XXXVII) of
15 AugTist 1964].
World social situation :
(a) Report of the Economic and Social Council
[resolution 1916 (XVIII) of 5 December
1963] ;
(b) Report of the Secretary-General [idem].
Housing, building and planning:
(a) Report of the Economic and Social Council
[resolution 1917 (XVIII) of 5 December
1963] ;
(b) Report of the Secretary-General [idem].
Report of the United Nations High Commissioner
for Refugees.
Measures to implement the United Nations Decla-
ration on the Elimination of All Forms of Racial
Discrimination : report of the Secretary-General
[resolution 1905 (XVIII) of 20 November 1963]-
Draft International Convention on the Elimination
of All Forms of Racial Discrimination [resolution
1906 (XVIII) of 20 November 1963].
Draft Recommendation on Consent to Marriage.
Minimum Age for Marriage and Registration of
Marriages [decision of 12 December 1963].
Measures to accelerate the promotion of respect for
human rights and fundamental freedoms [decision
of 12 December 1963].
Manifestations of racial prejudice and national
and religious intolerance [decision of 12 Decem-
ber 1963].
Draft Declaration on the Elimination of All
Forms of Religious Intolerance [decision of 12
December 1963].
Draft Declaration on the Right of Asylum [decision
of 12 December 1963].
Freedom of information :
(a) Draft Convention on Freedom of Information
[decision of 12 December 1963] ;
(b) Draft Declaration on Freedom of Information
[idem].
Draft International Covenants on Human Rights
[resolution 1900 (XVIII) of 12 IVcemlier 1963].
Draft Declaration on the Promotion among Youth
of the Ideals of Peace, Mutual Respect and Under-
standing between Peoples [resolution ]9(>5 (XVIII)
of 13 December 19(i3|.
Information from Non-Self-Governing Territories
492
DKP.VKTMENT OF STMT, BULLETIN
transmitted under Article 73 e of the Charter of the
United Nations :
(a) Report of the Secretary-General;
(b) Report of the Special Committee on the Situ-
ation with regard to the Implementation of the
Declaration on the Granting of Independence
to Colonial Countries and Peoples.
61. Question of South West Africa : report of the Spe-
cial Committee on the Situation with regard to the
Implementation of the Declaration on the Granting
of Independence to Colonial Countries and Peoples
[resolution 1899 (XVIII) of 13 November 1963].
62. Special educational and training programmes for
South West Africa : report of the Secretary-General
[resolution 1901 (XVIII) of 13 November 1963].
63. Sjjecial training programme for Territories under
Portuguese administration : report of the Secre-
tary-General [resolution 1973 (XVIII) of 16 De-
cember 1963].
61. Offers by Member States of study and training
facilities for Inhabitants of Non-Self-Governing
Territories : report of the Secretary-General [reso-
lution 1974 (XVIII) of 16 December 1963].
65. Question of Oman : report of the Aii Hoc Committee
on Oman [resolution 1948 (XVIII) of 11 Decem-
ber 1963].
66. Financial reports and accounts for the financial
year ended 31 December 1963 and reports of the
Board of Auditors :
(a) United Nations;
(b) United Nations Children's Fund ;
(c) United Nations Relief and Works Agency for
Palestine Refugees in the Near East ;
(d) Voluntary funds administered by the United
Nations High Commissioner for Refugees.
Supplementary estimates for the financial year 1964.
Budget estimates for the financial year 1965.
69. Pattern of conferences : report of the Secretary-
General [resolution 1987 (XVIII) of 17 Decem-
ber 1963].
70. Appointments to fill vacancies in the membership
of subsidiary bodies of the General Assembly :
(a) Advisory Committee on Administrative and
and Budgetary Questions ;
(b) Committee on Contributions ;
(c) Board of Auditors ;
(d) Investments Committee: confirmation of the
appointments made by the Secretary -General ;
(e) United Nations Administrative Tribunal;
(f) United Nations Staff Pension Committee.
71. Scale of assessments for the apportionment of the
expenses of the United Nations : report of the Com-
mittee on Contributions.
72. Audit reports relating to expenditure by special-
ized agencies and the International Atomic Energy
Agency :
(a) Earmarkings and contingency allocations from
the Special Account of the Expanded Pro-
gramme of Technical Assistance ;
67.
68.
(b) Earmarkings and allotments from the Special
Fund.
73. Administrative and budgetary co-ordination of the
United Nations with the specialized agencies and
the International Atomic Energy Agency :
(a) Report of the Advisory Committee on Admin-
istrative and Budgetary Questions ;
(b) Inter-organizational ujachinery for matters of
pay and per.s(mnel administration : reiwrt of
the Secretary-General [resolution 1981 B
(XVIII) of 17 December 1963].
74. Administrative and budgetary procedures of the
United Nations : report of the Working Group on
the Examination of the Administrative and Budget-
ary Procedures of the United Nations [resolution
1880 (S-IV) of 27 June 1963].
75. Personnel questions :
(a) Composition of the Secretariat: report of the
Secretary-General [resolution 1928 (XVIII) of
11 December 1903] ;
(b) Other personnel questions.
76. Report of the United Nations Joint Staff Pension
Board.
77. United Nations International School : report of the
Secretary-General [resolution 1982 (XVIII) of 17
December 1963].
78. Report of the International Law Commission on the
work of its sixteenth session.
79. General multilateral treaties concluded under the
auspices of the League of Nations : report of the
Secretary-General [resolution 1903 (XVIII) of 18
November 1963].
80. Technical assistance to promote the teaching, study,
dissemination and wider appreciation of interna-
tional law : reiwrt of the Special Committee on
Technical Assistance to Promote the Teaching,
Study, Dissemination and Wider Appreciation of
International Law [resolution 1968 (XVIII) of
16 December 1963].
81. Consideration of principles of international law
concerning friendly relations and co-operation
among States in accordance with the Charter of
the United Nations :
(a) Report of the Special Committee on Principles
of International Law concerning Friendly Re-
lations and Co-operation among States [res-
olutions 1966 (XVIII) and 1907 (XVIII) of
16 December 1963] ;
(b) Study of the principles enumerated in para-
graph 5 of General Assembly resolution 1966
(XVIII) ;
(c) Report of the Secretary-General on methods
of fact-finding [resolution 1967 (XVIII) of 16
December 1963].
82. Consideration of steps to be taken for progressive
development in the field of private international
law with a particular view to promoting interna-
tional trade [item proposed by Hungary (A/5728) ].
OCTOBER 5, 1904
493
TREATY INFORMATION
Admitted as contracting party (with rights and oMi-
gations dating from independence) : Malawi, Au-
gust 28, 1964.
Long-teriri arrangements regarding international trade
In cotton textiles. Concluded at Geneva February 9,
1962. Entered into force October 1, 19(;2. TIAS 5240.
Acceptance deposited: Finland, August 31, 1964.
Current Actions
MULTILATERAL
Automotive Traffic
Convention on road traffic with annexes. Done at
Geneva September 19, 1949. Entered into force
March 26, 1952. TIAS 2487.
Notification, that it considers itself tound: Rwanda,
August 5, 1964.
Aviation
Convention on international civil aviation. Done at
Chicago December 7, 1944. Entered into force April
4, 1947. TIAS 1591.
Adherence deposited: Malawi, September 11, 1964.
Coffee
International coffee agreement, 1962, with annexes.
Open for signature at United Nations Headquarters,
New York, September 28 through November 30, 1962.
Entered into force December 27, 1963. TIAS 5505.
Accession deposited: Finland, August IS, 1964.
Nuclear Test Ban
Treaty banning nuclear weapon tests in the atmosphere,
in outer space and under water. Done at Moscow
August 5, 1963. Entered into force October 10, 1963.
TIAS 5433.
Ratification deposited: Netherlands, including Sur-
inam and Netherlands Antilles, September 14, 1964.
Satellite Communications System
Agreement establishing interim arrangements for a
global commercial communications satellite system.
Done at Washington August 20, 1964. Entered into
force August 20, 1964.
Signature: Switzerland, September 16, 1964.*
Declaration of provisional application: Switzerland,
September 16, 1964.
Special agreement. Done at Washington August 20,
1964. Entered into force August 20, 1964.
Signature: Direction G^n^rale des PTT for Switzer-
land, September 16, 1964.
Telecommunications
International telecommunication convention with six
annexes. Signed at Geneva December 21, 1959. En-
tered into force .January 1, 1961. TIAS 4892.
Accession deposited: Mongolian People's Republic,
August 27, 1964.
Partial revision of the radio regulations (Geneva, 1959)
with annexes and additional protocol. Done at
Geneva November 8, 1963. Enters into force Janu-
ary 1, 1905. TIAS 5603.
Notification of approval: Jamaica (with reservation),
July 3, 1964.
Trade
General Agreement on Tariffs and Trade, with annexes
and sche<lules and protocol of provisional applica-
tion. Concluded at Geneva October 30, 1947. TIAS
1700.
' Subject to ratification.
BILATERAL
Canada
Treaty relating to cooperative development of the water
resources of the Columbia River Basin, with annexes.
Signed at Washington January 17, 1961.
Ratifications exchanged: September 16, 1964.
Proclaimed hy the President: September 16, 1964.
Entered into force: September 16, 1964.
Notes regarding the treaty between the United States
and Canada relating to cooperative development of
the water resources of the Columbia River Basin of
January 17, 1961. Exchanged at Washington Jan-
uary 22, 1964.
Entered into force: September 16, 1964.
Agreement concerning sale in the United States of
Canada's entitlement under the treaty of January
17, 1961, to downstream power benefits and desig-
nation of entities by the Governments of Canada
and the United States. Signed at Ottawa Septem-
ber 16, 1964. Entered into force September 16, 1964.
Congo (Leopoldville)
Agreement amending the agricultural commodities
agreements of November 18, 1961, and February 23,
1963, as amended (TIAS 4925, 5460, 5461).
Effected by exchange of notes at L^poldville
August 28 and September 4, 1964. Entered into
force September 4, 1964.
Mexico
Agreement complementing route schedule annexed to
the air transport services agreement of August 15,
1960. as extended (TIAS 4675, 5513). Effected by
exchange of notes at Mexico August 14, 1964.
Entered into force August 14, 1964.
Agreement extending the air transport agreement of
August 15, 1960, as extended and complemented
(TIAS 4675, 5513). Effected by exchange of notes
at Mexico August 14, 1964. Entered into force
August 14, 1964.
Paraguay
Agricultural commodities agreement under title I of
the Agricultural Trade Development and Assistance
Act of 1954, as amended (68 Stat. 454; 7 U.S.C.
1701-1709). with exchange of notes. Signed at
Asuncion September 5, 1964. Entered into force Sei>-
tember 5, 1964.
United Arab Republic
Agreement amending the agricultural commodities
agreement of October 8, 1962. as amended (TIAS
5179, 5440, 5579. .5617). Effected by exchange of
notes at Cairo July 20, 1964. Entered into force
July 20. 1964.
United Nations
Agreement amending the memorandum of understand-
ing of February 13, 1962 (TIAS 4949), concerning a
grant to the Unilt'd Nations of Congo francs accru-
ing to the United States under agriculturiil com-
modities ngrccnients between the United States and
the Repul)Iic of the Congo (Lt'oimldville). Effected
by exchange of letters at New Vork August 'lo and
26, 1904. Entered into force August 20. 1964.
494
DEPARTirENT OF STATE BULLETIN
INDEX Octoher 5, 1964 Vol. LI, No. 1319
American Principles
The Uesponsiliilities of a Global Power (Bull) . 473
Toward Victory for Freedom (Rusk) .... 463
The Unity of the American People (Johnson) . 461
American Republics. Organizing for Progress
in Latin America (Mann) 479
Asia
Secretary Rusk's News Conference of Septem-
ber 14 468
Toward Victory for Freedom (Rusk) .... 463
Atomic Energy. The Direction and Control of
Nuclear Power (Johnson) 458
Australia. Letters of Credence (Waller) . . 460
Canada. Secretary Rusk's News Conference
of September 14 468
Communism. Toward Victory for Freedom
(Rusk) 463
Cyprus. The Responsibilities of a Global Power
(Ball) 473
Disarmament. The Direction and Control of
Nuclear Power (Johnson) 458
Economic Affairs
Secretary Rusk's News Conference of Septem-
ber 14 468
U.S. and Soviet Union Exchange Notes on Inter-
ference With Ships 482
Educational and Cultural Affairs. Advisory
Commission Reports on Exchange Program . 48.5
Europe. Toward Victory for Freedom (Rusk) . 463
Foreign Aid. Organizing for Progress in Latin
America (Mann) 479
Immigration and Naturalization. Secretary
Rusk's News Conference of September 14 . . 468
India. Secretary Rusk's News Conference of
September 14 468
Indonesia. U.S. Regrets Soviet Veto of U.N.
Resolution on Malaysia Complaint (Steven-
son) 489
Malaysia
Secretary Rusk's News Conference of Septem-
ber 14 468
U.S. Regrets Soviet Veto of U.N. Resolution on
Malaysia Complaint (Stevenson) 489
North Atlantic Treaty Organization. President
Johnson Welcomes NATO Parliamentarians
(Johnson) 478
Presidential Documents
The Direction and Control of Nuclear Power . . 458
President Johnson Welcomes NATO Parliamen-
tarians 478
The Unity of the American People 461
Von Steuben Day 472
Saudi Arabia. Letters of Credence (al-
Sowayel) 461
Togo. Letters of Credence (Ajavon) .... 461
Treaty Information. Current Actions ... 404
U.S.S.R.
U.S. and Soviet Union Exchange Notes on Inter-
ference With Ships 482
U.S. Regrets Soviet Veto of U.N. Resolution on
Malaysia Complaint (Stevenson) 489
United Nations
Provisional Agenda of Nineteenth Session of
U.N. General Assembly 491
U.S. Makes Proposal on Financing Peacekeeping
Operations of U.N. (Plimpton, text of U.S.
working paper) 486
U.S. Regrets Soviet Veto of U.N. Resolution on
Malaysia Complaint (Stevenson) 489
Viet-Nam
Secretary Rusk's News Conference of Septem-
ber 14 468
Toward Victory for Freedom (Rusk) .... 463
'Name Index
al-Sowayel. Ibrahim 'Abd Allah 461
Ajavon, Robert 461
Ball, George W 473
Johnson, President 458,461,472,478
Mann, Thomas C 479
Plimpton. Francis T. P 486
Rusk, Secretary 463,468
Stevenson, Adlai B 489
Waller, John Keith 460
Check List of Department of State
Press Releases: September 14-20
Press releases may be obtained from the Office
of News, Department of State, Washington, D.C.,
20520.
No. Date Snbject
395 9/14 Rusk: "Toward Victory for Free-
dom."
*396 9/14 U.S. participation in international
conferences.
*397 9/14 Phillips designated Deputy Assist-
ant Secretary for Public Affairs
(biographic details).
*399 9/14 MeCloskey designated Director, Of-
fice of News (biographic details).
4(X) 9/14 Report of Advisory Commission on
International Educational and
Cultural Affairs (rewrite).
*401 9/15 Ball and McGill : Medal of Freedom
reception.
402 9/14 Rusk: news conference.
403 9/15 Reply to Soviet note of August 3.
404 9/16 Mann : "Organizing for Progress."
*405 9/17 U.S. delegation to Malta independ-
ence ceremonies.
406 9/18 Australia credentials (rewrite).
407 9/18 Ball: "The Responsibilities of a
Global Power."
408 9/18 Togo credentials (rewrite).
409 9/18 Saudi Arabia credentials (rewrite).
*411 9/18 Cultural exchange (Europe,
U.S.S.R.).
*Not printed.
DSD etc G
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THE OFFICIAL WEEKLY RECORD OF UNITED STATES FOREIGN POLICY
THE
DEPARTMENT
OF
STATE
BULLETIN
Vol. LI, No. 1320
Octoher 12, 1964
FREEDOM AND DEVELOPMENT
Address hy Secretary Bush JfiS
U.S. AND CANADA HOLD COLUMBIA RIVER TREATY CEREMONIES 50^
NUCLEAR ENERGY FOR THE BENEFIT OF MAN
Statement by Glenn T. Seaborg 519
EIGHTEEN-NATION DISAEMAMENT COMMITTEE
RECESSES 1964 SESSION
Statement hy William, C. Foster 624
For index see inside bach cover
Freedom and Development
Address hy Secretary Busk ^
It is an honor and pleasure to be with you
today. This conference is concerned with
Africa. Many of you m this audience have been
concerned with Africa for a good many years.
You and other Americans have done much to
develop friendly and constructive relationships
between the new nations of Africa and the
United States. I know that you expect me to
speak about our policies toward Africa. And I
shall do so — within a broader context. For we
must all take care not to let our policy in one
area become segregated from the rest of our
foreign policies. All of us, as Americans, have
a vital stake in our policies as a whole.
The abiding goal of American policy is a
world of peace, fi'eedom, and justice — the sort
of world envisioned in the preamble and articles
1 and 2 of the United Nations Charter, a docu-
ment which emei-ged from the raging furnaces
of two world wars. Our goal is:
^ Made before the American Negro Leadership Con-
ference on Africa at Washington, D.C., on Sept. 25
(press release 415).
— a world free of aggression — aggression by
whatever means;
— a world of independent nations, each with
the institutions of its own choice but cooperat-
ing with one another to their mutual advantage;
— a world of economic and social advance for
all peoples;
— a world which provides sure and equitable
means for the peaceful settlement of disputes
and which moves steadily toward a rule of law ;
— a world in which the powers of the state
over the individual are limited by law and cus-
tom, in which the personal freedoms essential
to the dignity of man are secure ;
— a world free of hate and discrimination
based on race, nationality, religion, or economic
and social status ;
— a world of equal rights and equal oppor-
tunities for the entire human race.
In working toward that goal we must do our
best to make our own nation a gleaming ex-
ample. As I said on more than one occasion,
the most important single thing tlus Congress
DEPARTMENT OF STATE BULLETIN VOL. LI, NO. 1320 PUBLICATION 7743 OCTOBER 12, 19G4
The Department of State Bulletin, a
weekly publication issued by the Office
of Media Services, Bureau of Public Af-
fairs, provides the public and interested
agencies of the Government with Infor-
mation on developments in the field of
foreign relations and on the work of the
Department 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 Depart-
ment, as well as special articles on vari-
ous phases of international affairs and
the functions of the Department. Infor-
mation is included concerning treaties
and international agreements to which
the United States is or may become a
party and treaties of general interua-
.tional interest.
Publications of the Department, Unite<l
Nations documents, and legislative mate-
rial in the field of international relations
are listed currently.
The Bulletin is for sale by the Super-
intendent of Documents, U.S. Govern-
ment Printing Office, Washington, D.C.,
20402. Price : 52 issues, domestic $10 ;
foreign $15 ; single copy 30 cents.
Use of funds for printing of this pub-
lication approved by the Director of the
Bureau of the Budget (January 19,
1961).
NOTE : Contents of this publication are
not copyrighted and items contained
herein may be reprinted. Citation of the
Department of State Bulletin as the
source will be appreciated. The Bulletin
Is inde}eed in the Readers' Guide to
Periodical Literature.
498
DEPARTMENT OF STATE BULLETIN
could do on behalf of our foreign policy was to
pass the Civil Riglits Act.
We believe that the sort of world I have just
sketched is the sort desired by a great majority
of mankind, of all nations and races. But
there are those whose goal is another kind of
world — a world regimented imder communism.
The contest between these two opposing con-
cepts of world organization is the underlying
crisis of our times.
The first concern of our foreign policy must
be, and is, to prevent expansion of the Commu-
nist empires. For this purpose we maintain
powerful and flexible military forces and have
helped our allies to build their defenses. At the
same time we search earnestly for areas of
agreement with our adversaries — especially for
measures which reduce the danger of a great
war. We also do what we can to encourage
trends toward national independence and more
personal liberty witliin the Communist world.
Wliile we do our share — and more — to protect
the free world, we work incessantly to build its
strength. We try to improve and expand our
partnerships with the economically advanced
nations of Western Europe and the Pacific.
And we respond to requests from the less
developed nations, old and new, for help in
strengthening their economic, social, and po-
litical systems.
Government by the Consent of the Governed
The American people are profoundly com-
mitted to the idea that governments derive their
just powers from the consent of the governed.
That fundamental commitment explains why
we usually get along better with other democ-
racies than with undemocratic goverimients.
It explains our concern about the lack of self-
determination and government with the consent
of the governed within the Communist em-
pires— for no nation has chosen communism in
a free election. It explains why we are deter-
mined to see that every American shall enjoy
in full his rights as a citizen and as a hiunan
being. And it explains why we exerted our
national influence in behalf of the independence
movements within the old empires in Asia,
Africa, and the Western Hemisphere. We have
rejoiced in the rise of the former colonial peo-
ples to independent nations — with what our
Declaration of Independence called "the sepa-
rate and equal station to which the Laws of
Nature and of Nature's God entitle them."
The metamorphosis of old empires into new
independent nations is one of the most signifi-
cant developments of the 20th century. It is
rapidly bringing to a close an epoch which
began with the Age of Exploration.
Problems of New African Nations
Since the Second World War 31 new nations
have emerged in Africa alone. Despite widely
difl'ering periods of preparation for independ-
ence, the transfer of power from Eurojjean to
African hands was accomplished with relative
ease. In only one case — Algeria — did the strug-
gle for independence involve prolonged fighting.
In only one mstance — the former Belgian
Congo — was a new nation engulfed m major
internal hostilities.
In these early postwar independence years,
however, a number of the new African nations
have been experiencing a variety of problems.
Most of these difficulties are inherent in the
exciting process of building new nations. For
independence does not automatically provide
the skills necessary to administer a nation or to
transform its institutions. It does not auto-
matically bring into being literate and informed
electorates. As President [Leopold] Senghor
of Senegal said recently:
Political independence, being the prerequisite of our
freedom, is not the end, but indeed the beginning of our
diflaculties. The tensions, the attempts at overthrowing
governments, the revolutions, even the localized armed
conflicts which have been shaking Africa in the last
four years, are the most striking illustrations of this
truth. Political independence and our admission to
the United Nations Organization, whatever the moral,
technical and material aid which they may bring us,
cannot, by themselves, solve the serious problems which
face us, and which are named : poverty, disease,
ignorance.
Let me cite a few statistics :
The average per capita income throughout
Africa is only about 30 cents per day and is as
low as 14 cents in some countries.
There is only one doctor per 17,000 people in
Africa, or i/^sth the ratio in this country. In-
fant mortality in tropical Africa runs as high as
OCTOBER 12, 19G4
499
260 per 1,000 live births, or 10 times our rate.
Only some 15 percent of Africans are literate,
and only 40 percent of African school-age chil-
dren are now attending primary school.
The number of Africans with substantial
experience in enterprise, management, and
government is small.
Africa has few skilled teclinicians and little
capital ta develop industry. Industrial pro-
ductivity per capita in developed nations is
24 times the level in Africa.
The average African farmer lias a produc-
tive efficiency estimated at only about 4 percent
of the North American farmer. Agricultural
productivity is so low that nutritional deficien-
cies prevail in many areas.
Africa's leaders are under great pressure to
solve their economic and social problems. Most
of them came to office on a tide of popular sup-
port, but they must make progress or make
room for other leaders, often more extreme and
willing to take greater risks.
During the era of European predominance in
the African Continent, the United States had
relatively few official contacts there. But we
have a big stake in the success of the new na-
tions. And we know that what happens in
Dakar, Durban, and Dar-es-Salaam alfects us
just as surely as what happens in Bonn, Bang-
kok, and Buenos Aires.
U.S. Assistance Programs
Just as we have supported self-determina-
tion, just as we stand for the dignity and equal-
ity of all peoples and nations, so we respond
to the desires of the new nations to improve the
life of tlieir citizens.
As President Johnson said in liis first state
of the Union message : ^
. . . We must strengthen the ability of free nations
everywhere to develop their independence and raise
their standard of living — and thereby frustrate those
who prey on jwverty and chaos. To do this, the rich
must help the poor — and we must do our part.
Certainly, if we in the most affluent countiy
the world has ever known need a poverty pro-
gram for Americans, it is imderstandable that
Africans new to independence are in need of
' Bulletin of Jan. 27, 1964, p. 110.
our assistance. How the United States can as-
sist them in strengthening their freedom and in
gaining a more abundant life is one of the im-
portant questions on our national agenda.
We are interested in doing what we can to
help the new nations become viable and strong,
both because Americans want to do wliat is
morally right and because our own interests
closely parallel their interests. There can be no
peace for future generations unless there is a
measure of stability and satisfaction around
the world.
Although the central responsibility of find-
ing ways to overcome Africa's internal diffi-
culties and to maintain true independence must
lie with Africans, tliere are many ways in which
the United States can help.
Private American organizations have tradi-
tionally been among Africa's friends; and
today more than 50 private United States in-
stitutions spend considerable sums for educa-
tion, health promotion, and related activities in
Africa. Our trade union movement has a fra-
ternal relationship with African trade unions,
and American religious groups of all kinds are
helping in Africa.
The United States Government's interest in
helping Africa overcome its internal problems
has been demonstrated by our pro^dsion of
about $1.5 billion in assistance in the period
1960-63. In 1963 alone we provided some $500
million in various types of assistance, including
surplus food, to 37 African nations; and some
2,000 Peace Coqjs Volunteers are serving in
African countries. Many African leaders have
studied in our colleges and universities, and
they include 22 who are now chiefs of state or
cabinet ministers. And many Africans are now
studying in the United States.
On a per capita basis Africans get a larger
share of the combined economic assistance of
tlie United States and Europe than anj' other
area of the world. In fact, Africa's per capita
share is almost double the world average.
Although I speak of what we have given to
Africa, let me also take notice of what Africa
gives to us. The United States has been richly
endowed with aspects of Africa's ancient cul-
tural heritage. "Wliile no one can be proud of
the way Negro Americans were brought to our
500
DEPARTMENT OF STATE BULLETIN
sliores, we can clearly be proud of tlie increas-
ing contributions made to our society by that
one-tenth of our population of African descent.
African art, music, and dancing also have
enriched our lives. And African art has come
to us even more directly in the form of indige-
nous sculpture and painting. The importance
of tliis part of Africa's culture to our society
was emphasized this year with the opening of
a Washington museum of African art.
Africa's Economic Progress
Altliough most African nations started from
a very low base, there have been heartening eco-
nomic advances, both in many individual coun-
tries and in terms of tlie continent as a whole.
Gross national product in Liberia rose by an
average of 5.3 percent annually between 1957
and 1961, largely due to American investment.
In the same period Ethiopia showed an annual
GNP gain of 4.3 percent, Sudan 4.5 percent, and
Nigeria 3.8 percent. These are impressive gains,
althougli it is true that they started from a very
low base and much remains to be done.
Nigeria, the most populous country in Africa
and the 10th most populous in the world, showed
a 29 percent gain in agricultural production in
a decade. Our Agency for International Devel-
opment is working with the Government of
Nigeria on a nimiber of interesting pilot proj-
ects designed to adapt some of the United States
experience with farm teclinology to the agri-
cultural methods of Nigeria and its neighbors.
Agriculture is the chief economic pursuit in
most of Africa, but important gains are being
made in other fields. Oil production has
momited rapidly in Libya, Algeria, and Nigeria.
Electric power production, always an important
measure of industrial progress and an impor-
tant element in raising standards of living, is
rising rapidly in many African countries, and
the hydroelectric potential is enormous.
One important economic instnmient which
both promotes African unity and helps indi-
vidual nations to help themselves develop eco-
nomically is the [U.N.] Economic Commission
for Africa. That organization is building a
philosophy of regional economic growth and a
program of regional projects to discourage nar-
row, nationalist economic enterprises which
would waste scarce African plant and capital.
The EGA has created an African Develop-
ment Bank, an Institute for Economic Develop-
ment and Planning, and is working on regional
industrial development schemes. It also en-
visages an Afi-ican common market. All of
these moves are worthy and needed efforts to
make maximum use of Africa's resources in pro-
grams designed to provide the greatest benefits
for as many people as possible.
Settling Local Disputes
As elsewhere in the world there are various
local disputes in Africa, some deep-rooted,
others arising from boimdaries which are un-
clear or which cut across tribal and other natural
divisions. Such influence as we have is, of
course, on the side of the peaceful settlement
of these quarrels, which divert energies and
resources of the peoples involved from their
problems of internal development and provide
openings for troublemaking by the Commu-
nists. We should like to see these disputes
composed by the Africans themselves.
We have followed with admiration the as-
sumption of responsibilities by the young Or-
ganization of African Unity. In a year and a
half the OAU has made important contributions
in the Algeria-Morocco dispute, to Tanganyika's
internal security, to the Ethiopia-Somali border
problem, and currently is moving to assist the
Congo. The United States strongly supports
African imity and the efforts of Africans to
settle African problems.
Communist Efforts in Africa
We must be concerned about the designs of
imperialist Commimist states on the new Afri-
can nations. To date the Communists have
extended some $1 billion worth of aid to Af-
rica— although much of this has not yet been
drawn upon. And some 5,000 Communist tech-
nical and economic personnel are in Africa. In
addition, from 6,000 to 8,000 African students
are in Communist countries; Communist diplo-
matic, consular, and trade missions in Africa
total nearly 150, and more than 300 hours of
OCTOBER 12, 1964
501
Communist broadcasts are now beamed exclu-
sively to Africa.
These fi^ires do not include quantities of
covert assistance to subversive Communist-
front, trade imion, and other movements. Nor
do they include books, pamphlets, press subsi-
dies, motion pictures, and other propaganda
tools. Those items are hard to measure pre-
cisely, but we can take it for granted that their
growth has kept pace with the rapid increase of
money aid in recent years.
The cost of this effort and the energy diverted
from other demanding needs have meant a
considerable sacrifice to the Commimists.
Nevertheless, they obviously consider their ex-
penditures woi-th making, because they would
not invest time and money without expecting to
achieve at least a part, of their objectives in
Africa.
Despite their efforts, however, there is no
Communist satellite in Africa. One reason for
the Communists' lack of success can be found
in the strong economic, cultural, and other links
that exist between African and Western nations.
A second reason lies in the open division be-
tween the Chinese and the Russians. And the
third, and most important, is the attachment
of Africans to their independence and their re-
vulsion to any attempts to limit that freedom.
This love of independence will contmue to mili-
tate against Communist encroaclunents. Some
African leaders already have felt the effects of
Communist efforts at subversion and have
learned from that experience. Others do not
yet fully comprehend Communist purposes and
tactics.
The Communists' threat to African freedom
remains a problem for those who love freedom.
They still have ample opportunities for fishmg
in troubled waters in those areas of Africa
where important issues remain to be resolved.
One such area is the Congo, where tribal dis-
sension and economic discontent have led to a
series of rebellions in recent months. For 4
years the United States has supported the ef-
forts of the United Nations and the Central
Congolese Government to restoi-e unity, pre-
serve territorial integrity, and promote internal
security. Wo continue to provide assistance to
that Government, just as we have done in the
past.
We are pleased to see the Organization of
African Unity participating in efforts to help
end the Congo's troubles. We wish nothing
more than to see an effective African solution
and wish to cooperate with the Organization of
African Unity and the Government of the
Congo toward this end.
Unresolved Problems in Southern Africa
Most of Africa's other unresolved problems
lie in the southern end of the continent, where
government by consent of the governed has not
yet been achieved. This area includes the Re-
public of South Africa, South-West Africa,
Southern Rhodesia, and the Portuguese terri-
tories of Angola and Mozambique.
These are countries where colonies of Euro-
peans have been in power over a period of many
years. Yet the whites comprise a relatively
small part, of the population — only some 4 mil-
lion out of a total of approximately 36 million
people.
The question of working out government by
consent of all the peoples in these countries is
a complicated and many-sided problem. The
Africans aspire to guide their own destinies
and, indeed, are detennined to do so. At the
same time, a minority among them is stoutly
resisting political change, even though it is well
aware that the many millions of Africans are
moving inexorably to wrench themselves free
from minority rule.
The peoples of these areas face serious prob-
lems of accommodation between races and, in
some cases, problems of constitutional reform.
Some sections of southern Africa show no in-
tention of coming to grips with the problems
of race and participation of nonwhites in polit-
ical affairs. Others are making halting prog-
ress toward the desirable goals of self-detenni-
nation and nonracial societies. But even where
progress is being made, there are genuine dif-
ferences of opinion about the speed and meth-
ods by which those goals are best attained.
A peaceful reconciliation of divergent inter-
ests in southern Africa could have a beneficial
effect on the current balance of forces in the
world. The alternative could well be tin un-
502
DEPAUTMENT OF STATE BULLETIN
wanted and unnecessary period of conflict which
coukl sliatter the friendly and nmtually bene-
ficial African-European relations that exist
thi'oughout the continent today. It would be
deeply unfortunate if the many European con-
tributions to African development were de-
stroyed through strife.
U.S. Goals in Southern Africa
The United States has a deep interest in
events in southern Africa. In our dealings with
those areas our position is based firmly on the
belief that govenmients derive their just pow-
ers from the consent of the governed.
A major goal of our policy in southern Africa
is to bring about a dialog among all the racial
groups in those teiTitories. We would like to
see all parties concerned work out the most mu-
tually acceptable solutions to their problems
through their own efforts.
Another goal, in which we believe equally
strongly, is that the rights of minorities must
be recognized and safeguarded in whatever so-
lutions are developed. In southern Africa
there are, in addition to a large white minority,
sizable minorities of Asians and Coloreds — peo-
ple of mixed blood — all of whose rights must
be assui'ed.
How to effect a transition to government by
the consent of the governed in an atmosphere
of mutual trust and respect will require all the
foresight, good will, and understanding that the
peoples of southern Africa can muster. There
is no easy solution to any of these jiroblems, and
the highest degree of political skill, ingenuity,
and leadership is required from all of the peo-
ples of that area.
Despite turmoil and difficult problems, we
hold high hopes for Africa's long-term future.
We expect to see the peoples of that continent
play growing roles of responsibility in the
world community we seek to build. You, as
leading Americans of African ancestry, can do
much to help the nations of Africa safeguard
their freedom and independence and move for-
ward economically, socially, and politically.
You can do much to expand and deepen the
fraternal relationships which we desire with
them — and with all other peoples. We shall
be happy to have your counsel.
President Congratulates Malta
on Independence
White House press release dated September 19, for release
September 20
Following is the text of a letter of September
18 from President Johnson to Dr. Giorgio Borg
Olivier, Priine Minister of Malta.
Dear Mr. Prime Minister : Congratulations
and best wishes on the occasion of Malta's in-
dependence. The establishment of Malta as an
independent state is a tribute to you, the British
Government, and the people of Malta. The
United States has been deeply imjiressed by the
leadership and courage you have provided in
your country's efforts to achieve its independ-
ence and secure its freedom.
Malta is well known to us. We have wel-
comed thousands of Maltese to our shores. Our
mariners have been warmly received by your
islands since the days of our own independence.
In the field of science, the discovery of the im-
dulant fever germ by Sir Themistocles Zammit
epitomizes the development of Malta's many
skills. Malta's unflinching steadfastness dur-
ing World War II symbolized the strength of
the Maltese throughout an epic history. We in
the United States look forward to seeing the
friendly ties already established between us
grow stronger in the years ahead.
I am happy to have Mr. Eichard W. Eeuter,
the Director of the Food for Peace Program,
as my representative and Special Ambassador
at the independence ceremonies. He is a dis-
tinguished United States public servant who
has worked closely with me, and he has a par-
ticular sympathy for the great principles of
freedom for which you stand. Also represent-
ing me will be INIr. Joseph Calleja, the Director
of the Maltese Information Center in Detroit,
Michigan.
I am confident that Malta's role as an inde-
pendent member of the community of nations
will be bright and constructive. We look for-
ward to working together with you and your
government and your people in the great causes
of our time — the promotion of peace, freedom,
and democracy.
Sincerely,
Lyndon B. Johnson
503
U.S. and Canada Hold CoSumbia River Treaty Ceremonies
On September 16 in ceremonies at the Inter-
national Peace Arch at Blaine^ Wash., President
Johnson proclaimed the Columbia River Treaty
with Canada,^ a treaty relating to the coopera-
tive development of the water resources of the
Columbia River basin. Earlier that day at
Oreat Falls., Mont., the President welcomed
Prime Minister Lester B. Pearson of Canada to
the United States. From there they made an
aerial survey of the Columbia River area, then
flew to Vaticou/ver, B.C., where the Prime
Minister welcomed President Johnson to Cana-
da. FoUowing are the texts of their remarks
at these cities and at the International Peace
Arch, together with an exchange of notes be-
tween the American Ambassador at Ottawa and
the Canadian Secretary of State for External
Affairs.
REMARKS AT GREAT FALLS
White House press release (Great Falls, Mont.) dated Sep-
tember 16 ; as-delivered text
President Johnson
Ladies and gentlemen, distinguislied Mem-
bers of the Congress, distinguished Governors :
Welcome to the United States, Mr. Prime
Minister, and welcome to Montana, whose
majesty and western warmth should remind
you of your own great country.
In 1963, Mr. Prime Minister, you said of
Canada : "We are so friendly that we feel that
we can criticize the United States like a Texan
does — and in the same idiom." This Texan
hopes that you still feel that freedoin, for we
welcome the comments and the counsel which
' For text, see Bulletin of Feb. 13, 1961, p. 234.
spring, as yours do, from friendship and vmder-
standing, although I doubt that even with your
grasp of languages you will be able to match
the Texas idiom.
Twenty-one years ago President Franklin D.
Roosevelt and Prime Minister Mackenzie King
met in Hyde Park. They agreed to work to-
gether to defend this hemisphere and to defend
democracy everywhere. From that day to this,
we have followed the same path of partnership.
Free people everywhere are more secure because
of our cooperation in NOEAD [North Ameri-
can Defense Command], in NATO [North
Atlantic Treaty Organization], and in the
United Nations.
The freedom and richness of our lands, the
hopes of the people they serve, depend upon
the peace of the world that we live in. It is
a symbol of our time that beneath the magnifi-
cence of this Montana stand weapons that are
powerful enough to devastate much of a con-
tinent. Those of us who seek peace know that
only wisdom and patience, and the fortitude of
long effoi't, can bring us near to that goal. But
we will always pursue that goal.
You, Mr. Prime Minister, are a symbol of that
effort. You have never wavered in tlie defense
of freedom. But j'ou also have given much of
your life so that free men might live in peace.
You have done much for your people. You
have carried the influence of Canada to the
highest coimcils and to the most hazardous
crises of the world.
But we greet you not only as a great Cana-
dian today. We welcome you as a man whose
homo is found wherever man seeks fulfillment
amid the peace that you, INIr. Prime Minister,
have labored so long and so hard to build.
604
DEPARTMENT OF STATE BULLETIN
Prime Minister Pearson
Mr. President, distinguished Governors, dis-
tinguished Membei-s of Congress, Members of
Parliament, ladies and gentlemen : It gives me
a very great pleasure to be on American soil
once more and to receive such a kind and gener-
ous welcome from you, Mr. President, and from
your distinguished colleagues.
This is a verj' brief visit, but it gives me time
and opportimity to bring to you the warm good
wishes of the Canadian people toward their
American friends. You laiow, I feel like a
neighbor dropping in to make a friendly visit.
Indeed, that is what I am doing, because I just
dropped in to pick up the President and take
him back to Canada.
This is the kind of relationship which exists
between our two peoples. It is close, it is in-
formal, it is important, and it is neighborly.
Like leaning over a back fence to talk to your
neighbor, but a back fence which neither neigh-
bor wishes to pull down and which both are
anxious to keep in good repair. Of course,
there are differences of opinion and, at times,
frustrations between even the best of neighbors,
and we have them between our two countries,
but they do not prevent a warm underlying
friendship and understanding.
Mr. President, you and I will be setting forth
today on a fascinating and historic journey to
explore from the air — I hope we will be able to
see it; — the mighty Columbia Eiver and the re-
gion of a great cooperative development, a de-
velopment which agreement between our two
governments made possible. To me, the Colum-
bia River project is the kind of enterprise which
best demonstrates the partnership between the
United States and Canada. This is what our
two countries are uniquely fitted to do, to join
together in the constructive development of our
continent's resources for the benefit of present
and future generations, in a world in which I
hope we will be at peace.
The Columbia River Treaty is not only an
achievement in itself but an earnest for the fu-
ture. We must follow it up with other fruitful
joint endeavors which will give substance to our
friendship, which I am so proud to acknowledge
this morning, and meaning to our good neigh-
borhood, of wliich this happy meeting is a
witness.
Thank you.
REMARKS AT VANCOUVER
Wbite House press release (Vancouver, B.C.) dated September
16 ; as-delivered text
Prime Minister Pearson
Mr. President, Mr. Premier, distinguished
guests from the United States, and friends:
It is a very great pleasure, Mr. President, to
welcome you to Canadian soil, as I have been
welcoming you to Canadian airspace, and I am
especially happy because this is the occasion of
the ratification of a treaty - which will benefit
both our countries and which is the result of
friendly cooperation between them.
It is, I think, appropriate that your first visit,
as President, outside the United States should
be to Canada, your nearest neighbor, your clos-
est friend, and naturally, therefore, your most
candid and constructive critic.
It is the accepted convention that the first offi-
cial visit of the head of a state or the head of a
government to another country should be to the
capital of that country, but you, Mr. President,
are a Texan and, as such, not bound by conven-
tions— at least that kind of convention. So your
first visit to Canada, and your first visit as Pres-
ident outside the United States, is to British
Columbia, to Vancouver, where you are being
greeted today by Premier Bennett and other
distinguished citizens of this Province.
It is fitting, I believe, that this should be the
case, and it is a recognition of the surge of
Canadian development west and north and of
our interest and our destiny across the Pacific.
In no iJart of Canada could your welcome be
more sincere than in this great Province. But
I assure you, Mr. President, that had you
landed at our most eastern airport in New-
foundland, 5,000 or more miles away, or at any
place between, our welcome to you would have
' American Ambassador W. Walton Butterworth and
Canadian Minister for External Affairs Paul Martin
exchanged instruments of ratification at Ottawa on
Sept. 16.
OCTOBER 12, 1964
505
been equally warm both for yourself and as
President of the United States of America,
the nation which bears today so much of the
burden of insuring peace and promoting free-
dom in the world, the nation which has led the
free world through these troubled postwar
years, the nation that is our good friend and
our good neighbor.
President Johnson
Thank you, Mr. Prime Minister. Premier
Bennett, Honorable Ministers and Members of
Parliament, citizens of British Columbia, my
fellow Westerners, ladies and gentlemen: If
you would indulge me just a moment, I should
like to introduce to our Canadian friends the
distinguished Americans who have come with
me today to participate in this most enjoyable
occasion and to commemorate this day.
First of all, I should like to ask the distin-
guished ehainnan of our Foreign Relations
Committee of the United States Senate, Sena-
tor J. William Fulbright, to stand, and his wise
and beloved colleague. Senator George Aiken,
a gi'eat friend of Canada.
From our neighboring State of Montana, we
have the great Majority Leader of the United
States Senate, Mike Mansfield; his colleague,
our friend Senator Lee Metcalf ; and Governor
Babcock.
From Oregon we have Senator Morse, the
distinguished member of the Foreign Relations
Committee; Senator Neuberger; the fine yoimg
Governor of Florida — of Oregon, Governor
Hatfield. Governor, I hope you will pardon
me, because I was in Florida yesterday, and I
am going to be in Oregon tomorrow.
From the State of Washington, we have
Senator Warren Magnuson, Senator Henry
Jackson, and Governor Rosellini.
It is on rare occasions that we have a quorum
of the Senate here in the middle of the
afternoon.
From the great State of Nevada, we have
Senator Alan Bible, Senator Howard Cannon,
and Governor Grant Sawyer.
And my own distinguished Secretary of the
Interior, Mr. Stewart Udall.
Mr. Prime Minister, Mr. Premier, I want to
thank you for your generous welcome. This
trip to Vancouver is the first that I have taken
outside of my own country since I became
President last November.
I think I will be guided by an old Chinese
proverb: "T^Hien you enter a country, inquire
as to what is forbidden ; when you cross a bound-
ary, ask about the customs." Well, I have made
careful inquiries, and I will eat the sabnon and
praise the B.C. Lions.
It is appropriate that this first trip should be
to Canada. Our ties are old and they are
strong. We are at once neighbors and friends,
and partners and allies, and I am very glad my
first stop is Vancouver.
Here is that spirit of adventure and commit-
ment— of building a nation — which is part of
the West, which is my home also. I won't say
that Vancouver reminds me of Texas. I will
say, though, when I go home, that Texas re-
minds me of Vancouver.
Your Prime Minister has said that the great
purpose of international statesmanship today
must be to make possible a better life for all.
Well, that is the purpose of this visit. The
treaty we proclaim will lay a new foundation
of prosperity for Canadians and Americans, for
your West and for ours.
We have achieved this partnership because
we respect our differences. This continent is a
richer and freer place for tliat respect. At the
same time, we owe much to each otlier. We can
never forget that the rich soil of American
freedom has been washed with Canadian blood,
shed in a common effort, against foreign enemies ;
nor can we forget that you have an honest in-
terest in our affairs. We will always stand with
you in the defense of freedom.
But I also tell you that, in the years to come,
my country will spare no effort to achieve a last-
ing peace for all of us.
I hope to leani more about your coimtry. I
hope to encourage my people to discover more
of the richness of your culture, the values of
your jDeople, and the promise of your destiny.
But this much we already know : No nation in
the world has had greater fortune than mine
in sharing a continent with the people and the
nation of Canada.
506
DEPARTMENT OF STATE BULLETIN
And now, in the midst of a great drought in
Texas, we welcome this great rain here.
REMARKS AT PEACE ARCH CEREMONIES
White House press release (Vancouver, B.C.) dated Septem-
ber 16 ; as-delivered text
President Johnson
I proclaim this treaty from this day forward.
Let it be observed by the Government and by the
l^eople of the United States of America.
Prime Minister Pearson
Mr. President, Premier Bemiett, Governor
Rosellini, distinguished guests, ladies and gen-
tlemen : It is raining, and I was going to make
a speech, but I think the best thing I can do is
to cut my speech short and let you get in out of
the rain.
But before I do that, may I say how honored
and privileged I am to be here, to participate in
this impressive and moving ceremony with the
President of the United States of America. I
think the signing of this treaty is an important
accomplishment, not only because it will be of
great material benefit to our two countries and
our two peoples in the development of the re-
sources of this continent but because it is
another illustration of friendship and good
neighborhood and the way two countries can
and should work together.
Mr. President, we are grateful to you for
coming to this border to make this possible.
We are gi-ateful to you for bringing with you
distinguished Members of Congi-ess and im-
portant men in tlie political life of your coun-
tiy. "VVe want you to know that you have been
very welcome to Canada on this first visit to
our counti-y. We would like you to come back.
If you come back, you will see, Mr. President,
that this treaty has indeed been a constructive
one and that it is gomg to work to the benefit
of both of our coimtries. For that we owe a
debt of gratitude not only to the negotiators
but to the Premier of this Pro\'ince, who worked
with them to bring about this great day in the
de\-elopment of this part of North jVmerica
and a great day in international cooperation
between our two countries.
Thank you veiy much.
President Johnson Proclaims
Columbia River Treaty
A PROCLAMATION
Whereas the treaty between the United States
of America and Canada relating to cooperative
development of the water resources of the Co-
lumbia River basin wa.s signed at Washington
on January 17, 1961 by their respective Pleni-
potentiaries, the original of which treaty is word
for word as follows :
Whereas the Senate of the United States of
America by their resolution of March 16, 1961,
two-thirds of the Senators present concurring
therein, did advise and consent to the ratification
of the aforesaid treaty :
Whereas the aforesaid treaty was duly ratified
by the President of the United States of America
on March 23, 1961, in pursuance of the aforesaid
advice and consent of the Senate, and was duly
ratified on the part of Canada ;
Whereas it is provided in Article XIX of the
aforesaid treaty that the treaty shall come into
force on the ratification date and in Article XX
of the aforesaid treaty that the instruments of
ratification shall be exchanged at Ottawa ;
And whereas the respective instruments of
ratification of the aforesaid treaty were duly
exchanged at Ottawa on September 16, 1964 by
the resi>ective Pleniixttentiaries of the United
States of America and Canada ;
Now, therefore, be it known that I, Lyndon
B. Johnson, President of the United States of
America, do hereby proclaim and make public
the aforesaid treaty to the end that the said
treaty and each and every article and clause
thereof may be observed and fulfilled, on and
after September 16, 1964, with good faith by the
United States of America and by the citizens of
the United States of America and all other per-
sons subject to the jurisdiction thereof.
In testimony whereof, I have hereunto set my
hand and caused the Seal of the United States of
America to be affixed.
Done at the International Peace Arch, Blaine,
Washington, this sixteenth day of Sep-
[seal] tember in the year of our Lord one
thousand nine hundred sixty-four and of
the Independence of the United States of Amer-
ica the one hundred eighty-ninth.
IUyvJU«J^^W.<U«- ■
By the President :
Dean Rusk,
Secretary of State
OCTOBER 12, 1964
507
President Johnson
Mr. Premier, Mr. Prime Minister, distin-
gnisiied guests on the i)latform, ladies and
gentlemen : There are many reasons why my
first trip abroad as President should be to
Canada. In 1839 J. Pinkney Henderson, the
representative of the Republic of Texas to
France and to England wrote that Great
Britain might delay its recognition of the new
republic for fear of the impact in Canada. But
Canada remained loyal. Great Britain recog-
nized Texas, and that recognition helped open
the door to American union for Texas.
Had that not happened, Mr. Prime Minister,
had Texas stayed independent, classical diplo-
macy suggests that we might very well today be
concluding a treaty of mutual defense against
the American influence. As a Texan, I can sym-
pathize with the problems of living beside a
wealthy and powerful and pervasive neighbor.
That is just how the rest of the United States
feels about Texas.
More than 3 years ago President Kennedy
came to Canada.^ He told your Parliament his
trip was "an act of faith." He said it was faith
in our capacity to meet common problems and
in our common cause of freedom. Well, my trip
today is a fulfillment and a renewal of that act
of faith. It is both a resolution of a common
problem and a strengthening of freedom's
cause.
Lord Durham, in the famous report that laid
the foundation for modem Canada, spoke of
the possibility of establishing "partners in a new
industry, the creation of happy human beings."
That partnership is the purpose of this treaty
that we have signed today.
It will supply new electric power to millions
of my countrymen. It will supply revenues to
Canada, although I was somewhat shocked
when I heard you read that cable about receiv-
ing $253,999,884, and then to show you what
the Canadians really went for — they went for
that last 25 cents.
It joins common purpose to common interest
in pursuit of the welfare of the free people
who share our continent. My country is grate-
ful for the spacious spirit with which this
• Bulletin of June 5, 1961, p. 839.
generous design was conceived and the way it
was carried out, even down to the last quarter.
It is another landmark in the history of one of
the oldest and most successful associations of
sovereign governments anywhere in the world.
What is the secret of this success? It begins
with a truth: The only justifiable object of
government is the welfare of individual men
and women. It is a simple truth. But had
others shared it with us, the world would have
been spared many dark years.
With this as the animating design, our
partnership has been built on four pillars, and
the success of that structure might well serve
as a model to the world.
The first pillar is peace.
The second pillar is freedom.
The third pillar is re.spect. One of my prede-
cessors, Woodrow Wilson, said, "You cannot
be friends upon any other basis than upon
terms of equality." We maintain with each
other the relationship we seek for all the world :
cooperation amid diversity.
Pericles said of a state that was much smaller
than yours, "We have forced every sea and land
to be the highway of our daring." In the
founding of the United Nations, in the Middle
East, in the Congo, in Southeast Asia, the world
has responded to Canadian daring. You have
followed not the highway of empire which
helped destroy Athens but the more difficult
path to peace which can save the world, and
you have been a principal architect, Mr. Prime
Minister, of that profound achievement.
The fourth pillar is cooperation. This
agreement is the latest in an impressive list.
We have disarmed our border ; we have shared
the costs of defense; we have divided power at
Niagara; we have built the St. Lawrence Sea-
way, and resolved scores of other problems.
Difficulties that divide others have imited us.
The reason is plain. We share interest and
we share purpose. Wo come to the council
table advised by reason, aware of each other's
problems, anxious to find final agreement. You
told us, Mr. Prime Minister, "As good neigh-
bors we must be able to sit down and discuss
(problems) realizing that solutions will not be
found without hard work and without give and
take on both sides."
We both have problems we must solve within
608
DEPARTMENT OF STATIC BULLETIN
J
our borders. My country has a war to win on
poverty. We must find justice for men of all
races. "We must crush the forces of division
which gnaw at the fabric of our miion.
You have your own difficulties. We watch
with friendly confidence in your capacity to
merge differences in the grand dream of Cana-
dian design. But there is also much, Mr. Prime
Minister, which we share.
In the world we seek peace and mounting ful-
fillment for man. Here we work together, from
ocean to ocean, in resources and science, to en-
rich the life of our two peoples, to elevate the
quality of our two societies.
Franklin Roosevelt once said, "Democracy
is the form of government which guarantees
to every generation of men the right to imagine
and to attempt to bring to pass a better world."
Tliat has been the story of your life, Mr. Prime
Mmister. It is also the strength of our two
nations, and I believe that future generations
will have cause for gratitude that two great
democracies — Canada and the United States —
shared the most generous continent which God
has ever granted to man.
Thank you.
EXCHANGE OF NOTES
U.S. Note
Ottawa, September 16, 1964
No, 75
SiK, I have the honor to refer to your note No. 140
of September 16, 1964, regarding the disposal of the
Canadian entitlement to downstream power benefits
in the United States, in accordance with Article VIII
(1) of the Treaty betweeen the United States of
America and Canada relating to the cooperative devel-
opment of the water resources of the Columbia River
Basin, signed at Washington, January 17, 1961.
I wish to advise you that the Government of the
United States of America has designated the Adminis-
trator of the Bonneville Power Administration, De-
partment of the Interior, and the Division Engineer,
North Pacific Division, Corps of Engineers, Depart-
ment of the Army, as the United States Entity for
the purposes of Article XIV(l) of the Treaty. A copy
of the designation is attached to this note.
I wish also to advise that the Government of the
United States of America confirms the proposals and
understandings set forth in your note, and agrees
that your note, together with this reply, shall con-
stitute an agreement between our two Governments
relating to the implementation of the provisions of the
Treaty with effect from tlie date of the exchange of
iuslrunients of ratification of the Treaty.
Accept, Sir, the renewed assurances of my highest
consideration.
W. W. BUTTERWOBTH
Enclosure :
As stated.
The Honorable
Paul Mabtin, P.C, Q.C,
Secretary of State for External Affairs,
Ottawa.
EXECUTIVE ORDER*
Pbovidinq for Certain Arrangements Under the
Columbia River Treaty
Whereas the treaty between the United States and
Canada relating to cooperative development of the
water resources of the Columbia River Basin (signed
at Washington, D.C., on January 17, 1961; Executive
C, 87th Congress, 1st Session) has come into force ; and
Whereas Article XIV of such treaty (hereinafter
referred to as the Treaty) provides for the designation
of certain entities which are empowered and charged
with the duty to formulate and carry out the operat-
ing arrangements necessary to implement the Treaty,
and authorizes the United States of Am erica to desig-
nate one or more of such entities ; and
Whereas Article XV of the Treaty authorizes the
United States of America to appoint two members of
the Permanent Engineering Board established by that
Article:
Now, THEREFORE, by vlrtue of the authority vested
in me by the Treaty and by the Constitution and
statutes, and as President of the United States, it Is
hereby ordered as follows :
Part I. United States Entity
Section 101. Designation of Entity. The Admin-
istrator of the Bonneville Power Administration,
Department of the Interior, and the Division Engineer,
North Pacific Division, Corps of Engineers, Depart-
ment of the Army, are hereby designated as an entity
under Article XIV of the Treaty, to be known as the
United States Entity for the Columbia River Treaty
(hereinafter referred to as the Entity). The desig-
nated Administrator shall be the Chairman of the
Entity.
Sec. 102. Fnnctions of the Entity. The Entity shall
have the fiuictions set forth therefor in Article XIV,
and in other provisions, of the Treaty.
Sec. 103. Departmental responsihilities. This order
shall not affect (1) the respective responsibilities of
the Department of the Army and the Department of
the Interior for project operation and administration,
(2) the respective responsibilities of the Secretary of
* No. 1117T ; 29 Fed. Reg. 13097.
OCTOBER 12, 19G4
S09
the Army and the Chief of Engineers for the super-
vision and direction of the Department of the Army
and the Office of the Chief of Engineers, or (3) the
responsibility of the Secretary of the Interior for the
supervision and direction of the Department of the
Interior.
Part II. United States Section, Permanent En-
gineering Board
Section 201. Appointment of memhers of the Perma-
nent Engineering Board, (a) The Secretary of the In-
terior and the Secretary of the Army shall each
appoint one person as a United States member of the
Permanent Engineering Board established by Article
XV of the Treaty.
(b) Each such person shall be selected from among
appropriately qualified individuals, vi'ho at the time of
appointment may be, but need not necessarily be, offi-
cers or employees of the United States, and shall serve
as a member of the Board during the pleasure of the
appointing Secretary.
Sec. 202. Alternate members. In addition to the two
members to be appointed under the provisions of Sec-
tion 201 of this order, there shall be two alternate
United States members of the Permanent Engineering
Board. The provisions of Section 201 of this order
shall apply to the selection, appointment, and service
of the alternate members.
Sec 203. United States Section. The members and
alternate members appointed under the foregoing pro-
visions of this Part shall compose the United States
Section, Permanent Engineering Board, Columbia Riv-
er Treaty, hereinafter referred to as the United States
Section. The member appointed by the Secretary of
the Army under Section 201(a) of this order shall be
the Chairman of the United States Section.
Sec. 204. Assistance to the United States Section.
With the consent of the respective heads thereof, de-
partments and agencies of the Federal Government
may, upon the request of the United States Section
and to the extent not inconsistent with law, furnish
assistance needed by the Section in connection with the
performance of its functions.
Part III. General
Section 301. Reservation. There is hereby reserved
the right to modify or terminate any or all of the
provisions of this order.
Lyndon B. Johnson
The White House,
Septemher 16, 1964.
Canadian Note
Ottawa, September 16, 196^.
No. 140
ExoEu-ENCT, I have the honour to refer to the Treaty
between Canada and the United States of America
relating to cooperative development of the water re-
sources of the Columbia River Basin signed at Wash-
ington on 17 January 1961, to the Protocol attached
to my Xote to the Honourable Dean Rusk, Secretary
of State of the United States of America, dated 22 Jan-
uary 1964,'^ and to the exchange of instruments of rati-
fication " of the Treaty which occurred today.
I also have the honour to refer to the diseu.ssions
which have been held between representatives of the
Government of Canada and of the Government of the
United States of America in connection with the Ex-
change of Notes, dated 22 January 1904, regarding sale
in the United States of America of Canada's entitle-
ment under the Treaty to downstream power benefits.'
My Government also understands that your Govern-
ment has designated the Administrator of the Bonne-
ville Power Administration, Department of the In-
terior, and the Division Engineer, North Pacific Divi-
sion, Corps of Engineers, Department of the Army, as
the United States Entity for the purposes of Article
XIV (1) of the Treaty, and I would inform you that
the Government of Canada has designated the British
Columbia Hydro and Power Authority, a corporation
incorporated in the Province of British Columbia by
the British Columbia Hydro and Power Authority Act,
1964, as the Canadian Entity for the purposes of that
Article. A copy of the designation is attached hereto.
On the basis of those discussions the Government
of Canada proposes that the Canadian Entitlement
Purchase Agreement regarding the sale in the United
States of America of the Canadian Entitlement under
the Treaty to downstream ix)wer benefits entered into
between the British Cohimbia Hydro and Power Au-
thority and the Columbia Storage Power Exchange, the
single purchaser referred to in the attachment to your
Note of January 22, 19(>4, relating to the terms of the
sale, a copy of which agreement is attached hereto, be
authorized for the purposes of Article VIII (1) of the
Treaty as a disposal of the Canadian Entitlement in
the United States of America for the period and in
accordance with the other terms and provisions set
out in the Canadian Entitlement Purchase Agreement.
My Government also understands that your Govern-
ment pursuant to paragraph E. 5 In the attachment to
Mr. Secretary Rusk's Note of January 22, 1964, relat-
ing to the terms of the sale, has determined that the
United States Entity shall enter into and that it has
entered into the Canadian Entitlement Exchange
Agreements which agreements assure unconditionally
the delivery for the account of the Columbia Storage
Power Exchange of an amount of power agreed be-
tween the United States Entity and the Columbia
Storage Power Exchange to he the equivalent of the
Canadian Entitlement being sold under the Canadian
Entitlement Piirchase Agreement, and that the United
States Entity has succeeded to all the rights and obli-
gations of the Columbia Storage Power Exchange un-
der the Canadian Entitlement Purchase Agreement
other than the obligation to \ts\y the purchase price,
" Bulletin of Feb. 10, 1964, p. 202.
" Not printe<l here.
' Bttlletin of Feb. 10, 191V4, p. 203.
510
DEPARTMENT OF STATE BULLETTir
and further that the United States Entity has, pur-
suant to Article XI of tlie Treaty, approved tlie use of
the improved stream flow in the United States of
America brought about by the Treaty by entering into
Canadian Entitlement Allocation Agreements with
owners of non-Federal dams on the Cohunbia River.
My Government also understands that the two Gov-
ernments are agreed that the Government of the
United States of America undertakes that :
(1) So long as the Canadian Entitlement Exchange
Agreements remain in force, the United States
Entity will perform all the obligations of the
Columbia Storage Power Exchange under the
Canadian Entitlement Purchase Agreement
other than the obligation to pay the purchase
price specified in Section 3 of the Canadian En-
titlement Purchase Agreement ;
(2) In the event the Canadian Entitlement is re-
duced as a result of a failure on the part of the
Canadian Entity to comply with Section 4 of the
Canadian Entitlement Purchase Agreement and
if the failure results other than from wilful
omission by the Canadian Entity to fulfill its
obligations under that agreement, the United
States Entity will, without compensation, offset
the effect of that failure by adjusting the opera-
tion of the portion of the System described in
Step I of paragraph 7 of Annex B of the Treaty
which is in the United States of America to the
extent that the United States Entity can do so
without loss of energy or capacity to that por-
tion of the System ; and
(3) If the procedure described in paragraph (2)
above does not fully offset the effect of the failure,
then to the extent the entities agree thereon, an
additional offsetting adjustment in the opera-
tion of the portion of the System described in
Step I of Annex B of the Treaty which is in the
United States of America and which would re-
sult in only an energy loss will be made if the
Canadian Entity delivers to the United States
Entity energy suflicient to make up one half that
energy loss.
(4) In order to make up any reduction in the Ca-
nadian Entitlement, which reduction is to be de-
termined in accordance with Section 6 of the
Canadian Entitlement Purchase Agreement, the
United States Entity will cause to be delivered
the least expensive capacity and energy avail-
able and, to the extent that it would be the least
expensive available, will deliver, at the then ap-
plicable rate schedules of the Bonneville Power
Administration, any available surplus capacity
and energy from the United States Federal Co-
lumbia River System.
The Government of Canada also proposes that :
(5) Contemporaneously with the exchange of the
instruments of ratification CSPE shall have paid
to Canada the sum in United States funds of
$2i>3,929,534.2,'5, being the equivalent of the sum
of .?2r>4,400.00() in United States funds as of Oc-
tober 1, 1964 adjusted to September 16, 1964
at a discount rate of 414 percent per annum on
the basis set out in the January 22, 1964 Ex-
change of Notes between our two Governments
relating to the terms of sale, which sum shall
be applied towards the cost of constructing the
Treaty projects through a transfer of the sum
by Canada to the Government of British Colum-
bia pursuant to arrangements entered into be-
tween Canada and British Columbia.
(6) No modification or renewal of the Canadian
Entitlement Purchase Agreement shall be ef-
fective until approved by the Governments of
Canada and the United States of America, evi-
denced by an Exchange of Notes.
(7) The storages described in Article II of the
Treaty shall be considered fully operative when
the facilities for such storages are available
and outlet facilities are operable for regulating
flows in accordance with the flood control and
hydroelectric operating plans.
(8) As soon as practicable, the Canadian and United
States Entities shall agree upon a program for
filling the storage provided b.y each of the
Treat.v projects. The filling program shall have
the objective of having the storages described
in Article 11(2) (a). Article 11(2) (b), and Arti-
cle 11(2) (c) of the Treaty filled to the extent
that usable storage, in the amounts provided
for each storage in Article II of the Treaty is
available by September 1 following the date
when the storage becomes fully operative, and
of having the storage provided by the dam de-
scribed in Article 11(2) (a) filled to 15 million
acre-feet by September 1, 1975. This objective
shall be reflected in the hydroelectric operating
plans and shall take into account generating
requirements at-site and downstream in Canada
and the United States of America to meet loads
and requirements for flood control.
(9) In the event the Unite<l States of America be-
comes entitled to compensation from Canada
for loss of downstream power benefits, other
than Canada's entitlement to downstream power
benefits, in respect of a breach of the obligation
under Article IV (6) of the Treaty to commence
full operation of a storage, compensation pay-
able to the United States of America under
Article XVIII(5)(a) of the Treaty shall be
made in an amount equal to 2.70 mills per
kilowatt-hour of energy, and 46 cents per kilo-
watt of dependable capacity for each month or
fraction thereof, in United States Funds, for
and in lieu of the power which would have been
forfeited under Article XVIII(5)(a) of the
Treaty if Canada's entitlement to downstream
power benefits had not been sold in the United
States of America. The power which would
OCTOBER 12, 1964
611
have been forfeited shall be Canada's entitle-
ment to downstream power benefits attributable
to the particular storage had it commenced full
operation in accordance with Article IV (6) of
the Treaty and shall consist of (1) dependable
capacity for the period of forfeiture and (2)
that portion of average annual usable energy
which would have been available during the pe-
riod of forfeiture assuming the energy to be
available at a uniform rate throughout the year.
Alternatively, Canada may, at its option, offset
the power for which compensation is to be made
by delivering capacity and energy to the United
States Entity, such delivery to be made, unless
otherwise agreed by the entities, during the
period of breach and at a uniform rate. The
option for Canada to provide power in place of
paying money shall permit Canada to make com-
pensation partly by supplying power and partly
by paying money, as may be mutually agreed
by the entities.
(10) The Canadian Entity shall at reasonable inter-
vals provide current reports to the United
States Entity of the progress of construction
of the Treaty storages. In the event there is a
likelihood of delay in meeting the completion
dates .set out in Section 4 of the Canadian En-
titlement Purchase Agreement or a delay which
will give rise to a claim under paragraph (9)
hereof the Canadian Entity will advise of the
probability of power being available to make
the compensation required.
(11) To the extent the Canadian Entity does not
make compensation for a reduction in the Cana-
dian Entitlement arising as a result of a fail-
ure to comply with Section 4 of the Canadian
Entitlement Purchase Agreement, Canada shall
make such compensation and such compensa-
tion shall be accepted in complete satisfaction
of all claims arising out of the failure in respect
of the reduction in the Canadian Entitlement
for which such compensation was made.
(12) For any year in which Canada's Entitlement to
downstream power benefits is sold to Columbia
Storage Power Exchange, the United States
Entity may decide the amormt of the down-
stream power benefits for purposes connected
with the disposition thereof in the United States
of America. This authorization, however, shall
neither affect the rights or relieve the obliga-
tions of the Canadian and United States Entities
relating to joint activities under the provisions
of Article XIV and Annexes A and B of the
Treaty, nor shall it apply to determination of
compensation provided for in the Canadian
Entitlement Purchase Agreement or pursuant
to paragraph (9) hereof or to determination of
the power benefits to which Canada is entitled.
(13) Any power delivered by the Canadian Entity or
by Canada in accordance with the Canadian
Entitlement Purchase Agreement or this Note
shall be delivered at points of interconnection
on the Canadian-United States border mutually
acceptable to the entities. Appropriate adjust-
ments shall be made to reflect transmission costs
and transmission losses in the United States of
America.
(14) Any dispute arising under the Canadian En-
titlement Purchase Agreement, including, but
without limitation, a dispute whether any event
requiring compensation has occurred, the
amount of compensation due or the amount of
any over-delivery of power is agreed to be a
difference under the Treaty to be settled in
accordance with the provisions of Article XVI
of the Treaty, and the parties to the Canadian
Entitlement Purchase Agreement may avail
themselves of the jurisdiction hereby conferred.
The Government of Canada therefore proposes that
if agreeable to your Government this Note together
with your reply thereto constitutes an agreement by
our Governments relating to the Treaty with effect
from the date of the exchange of instruments of ratifi-
cation of the Treaty.
Accept, Excellency, the renewed assurances of my
highest consideration.
Paul Maktin
Secretary of State for
External Affairs.
His Excellency,
W. Walton Buttekwobth,
Ambassador of the United States
of America,
Ottaioa.
[Attachment]
Certified to be a true copy of a Minute of a Meeting of
the Committee of the Privy Council, approved by His
Excellency the Governor General on the 4th Septem-
ber, 1964.
The Committee of the Privy Council, on the recom-
mendation of the Right Honourable Lester B. Pearson,
the Prime Minister, advise that Your Excellency may
be pleased to designate the British Columbia Hydro and
Power Authority, a corporation incorporated in the
Province of British Columbia by the British Columbia
Hydro and Power Authority Act 1964, as the Canadian
entity for the puriJoses of Article XIV of a treaty dated
January 17, 1961 at Washington, D.C. U.S.A. between
Canada and the United States of America relating to
co-operative development of the water resources of the
Columbia River Basin, such designation to take effect
on the date on which the Instruments of Ratification
of the Treaty shall be exchanged.
R. G. ROBEBTSON
Clerk of the Privy Council
512
DEPAHTMENT OF STATE BULLETIN
CANADIAN ENTITLEMENT PURCHASE
AGREEMENT
This Agreement executed this thirteentli day of
August, 1964, by and between Columbia Storage Powjm
Exchange, a nonprofit corporation organized under the
laws of the State of Washington, hereinafter referred
to as "CSPE",
and
British Columbia Hydro and Power Authority, a
corporation incorporated in the Province of British
Columbia, Canada, by the British Columbia Hydro and
Power Authority Act, 1964, hereinafter referred to as
"the Authority".
Whereas :
A. The Governments of the United States of America
and Canada are exchanging instruments of ratification
of the Treaty Between Canada and the United States
of America Relating to the Cooperative Development of
the Water Resources of the Columbia River Basin
Signed at Washington January 17, 1961. By an
Exchange of Notes dated January 22, 1964, the two
Governments agreed upon the terms of a Protocol with
effect from the date of the exchange of instruments of
ratification of the Treaty aforesaid (which Treaty and
Protocol are hereinafter referred to as the "Treaty").
B. Under the terms of the Treaty, Canada is entitled
to receive from the United States one half of the annual
average usable energy and one half of the dependable
hydroelectric capacity which can be realized in the
United States each year as a result of use of the
improved stream flow on the Columbia River created
by storage to be constructed in Canada.
C. The Government of Canada and the Govern-
ment of British Columbia have entered into an agree-
ment dated 8 July, 1963, and a supplementary agree-
ment dated 13 January, 1964, wherein it was agreed
that all proprietary rights, title and interests arising
under the Treaty, including all rights to downstream
power benefits, belong to the Government of British
Columbia, and providing that Canada shall designate
the Authority as the Canadian Entity as provided for
in Article XIV of the Treaty. Pursuant to such agree-
ment Canada is designating the Authority as the
Canadian Entity.
D. The Authority Is, by virtue of an Order in
Council of the Province of British Columbia, dated
August 7, 1964, required and authorized to exercise
all the rights and powers granted to the Canadian
Entity and to perform all the obligations imposed on
the Canadian Entity by the Treaty and to enter into
this Agreement.
E. CSPE is incorporated with the object of pur-
chasing for a term of years Canada's rights to down-
stream power benefits under the Treaty and incurring
indebtedness to finance such purchase and disposing
of such rights under such arrangements as may be
necessary to retire the corporate indebtedness and to
pay the necessary expenses of CSPE incidental thereto.
F. The Governments of the United States of America
and Canada, as contemplated by Article VIII of the
Treaty and in pursuance of the Agreement of the two
Governments contained in an Exchange of Notes dated
January 22. 1964, relating thereto, are by an Exchange
of Notes authorizing the disposition for a term of
years within the United States of America of Canada's
rights to downstream power benefits under the Treaty,
which disposition when so authorized is to be effectu-
ated by tliis Agreement in accordance with the pro-
visions of the Treaty and documents supplementary
thereto.
Now, therefore, it is agreed :
Section 1. Term
This Agreement shall be effective when authorized
by the Governments of Canada and the United States
of America by an Exchange of Notes pursuant to the
Treaty and shall terminate at midnight on March 31
2003.
Section 2. Conveyance.
(1) The Authority does hereby sell, assign, and
convey unto CSPE, and CSPE does hereby accept, the
entitlement of Canada, as described in Article V(l) of
the Treaty, to the downstream power benefits deter-
mined in accordance with Article VII of the Treaty,
save and except the entitlement of Canada to the
downstream power benefits resulting from the con-
struction or operation of the project referred to in
Article IX of the Treaty, for the following periods
of time :
(a) The benefits resulting from the storage de-
scribed in Article 11(2) (c) of the Treaty (here-
inafter referred to as Duncan Lake storage) for
a period of 30 years commencing April 1, 1968 ;
and
(b) The benefits resulting from the storage de-
scribed in Article 11(2) (b) of the Treaty (here-
inafter referred to as Arrow Lakes storage)
for a period of 30 years commencing April 1,
1969 ; and
(c) The benefits resulting from the storage de-
scribed in Article 11(2) (a) of the Treaty
(hereinafter referred to as Mica Creek stor-
age) for a period of 30 years commencing
April 1, 1973.
(2) All of the entitlement to the downstream power
benefits hereby conveyed for the aforementioned pe-
riods of time, without the reductions provided for in
paragraph 7 of Annex A of the Treaty is hereinafter
referred to as "the Canadian Entitlement".
(3) For the purpose of allocating downstream power
benefits among the three Canadian storages provided
for in the Treaty between April 1, 1998, and March 31,
2003, the percentage of downstream power benefits
allocable to each of the said storages shall be the per-
OOTOBER 12, 1964
745-329 — 64 3
r'/.auTn/.'
51?
centage of the total of the Canadian storages pro-
vided by that storage as set out in Article II of the
Treaty.
Section 3. Payment by CSPE.
Contemporaneously witi the exchange of the in-
struments of ratification, CSPE is causing to be paid
to Canada the sum, in United States funds, of
$254,400,000.00 as of October 1, 1964, subject to ad-
justment in the event of an earlier payment thereof
to the then present worth at a discount rate of 4%
percent per annum, which sum shall be applied towards
the cost of constructing the Treaty projects through
a transfer of the sum by Canada to the Government
of British Columbia pursuant to arrangements entered
into between Canada and British Columbia. The Au-
thority acknowledges that the receipt by Canada of
the said sum is consideration for all the covenants of
the authority in this Agreement and particularly the
covenants to construct and operate the Treaty projects
and is a complete discharge of CSPE for the full pur-
chase price for the sale effected in Section 2 of this
Agreement.
Section 4. Covenants.
(1) The Authority covenants and agrees with CSPE
that it will undertake all requisite construction work
in a good and workmanlike manner and that the stor-
ages described in Article II of the Treaty shall be fully
operative for power purposes under this Agreement by
the following dates:
(a) The Duncan Lake storage, April 1, 1968.
(b) The Arrow Lakes storage, April 1, 1969.
(c) The Mica Creek storage, April 1, 1973.
To be fuUy operative the facilities for such storages
shall be completed to the extent that storages are
available and outlet facilities are operable for regulat-
ing flows in accordance with flood control and hydro-
electric operating plans as contemplated by the Treaty.
(2) The Authority covenants and agrees with CSPE
that it will operate and maintain the Treaty storages
in a good and workmanlike manner and in accordance
with the provisions of the Treaty and any arrange-
ments made pursuant to the Treaty and that it wiU not
take any action prohibited by the Treaty.
Section 5. Flood Contbol.
Nothing in this Agreement afCects or alters the ob-
ligations, rights, and privileges of the entities under the
Treaty relating to operation and compensation for
flood control and without restricting the generality of
the foregoing, it is expressly agreed that any reduction
in generation in the United States brought about by
operation for flood control under the Treaty or any
flood control arrangements made pursuant to the
Treaty shall not be a reduction in the Canadian En-
titlement for which compensation is required under
this Agreement
Section 6. Compensation.
In the event the Canadian Entitlement is reduced as
a result of a failure to comply with Section 4 of this
Agreement :
(1) If the failure reeults other than from wilful
omission by the Authority to fulfill its obligations
under this Agreement, the United States Entity has
agreed that it will, without compensation, offset the
effect of that failure by adjusting the operation of the
portion of the system described in Step I of paragraph
7 of Annex B of the Treaty which is in the United
States to the extent that the United States Entity can
do so without loss of energy or capacity to that portion
of the System. If the foregoing procedure does not
fully offset the effect of the failure, then to the extent
the entities agree thereon, an additional offsetting
adjustment in the operation of the portion of the sys-
tem described in Step I of Annex B of the Treaty which
is in the United States and which would result in only
an energy loss will be made if the Authority delivers
to the United States Entity energy sufficient to make
up one half of that energy loss.
(2) If the effect of the failure is not entirely offset
by the procedure specified in subsection (1) of this
section, the reduction in the Canadian Entitlement
shall be deemed to be one half of the difference in
dependable hydroelectric capacity and average annual
usable energy, capable of being produced by :
(a) the Step II system as specified in Annex B of
the Treaty for the year in which the reduction
occurs, using the 30 year stream flow record
provided for in Section 8 of the Protocol, with
allowance in each of the 30 stream flow years
for the effect of the Adjustment made in fol-
lowing the procedure specified in subsection (1)
of this section and
(b) the same system for that year with the appli-
cation of allowance in each of the 30 stream
flow years for the effects of the occurrence
causing the reduction
and the dependable hydroelectric capacity and average
annual usable energy for the purpose of paragraph (b)
of this subsection shall be calculated on the basis of
an operation for optimum generation in the United
States in the light of the offsetting adjustments and in
the light of the effects of the occurrence causing the
reduction.
(3) If the failure is the result of an occurrence to
which the procedure specified in subsection (1) of this
section is not applicable, the reduction shall be deemed
to be one halt of the difference in dependable hydro-
electric capacity and average annual usable energy,
capable of being produced by :
(a) the Step II system as specified in Annex B of
the Treaty for the year in which the reduction
occurs, using the 30 year stream flow record
provided for in Section 8 of the Protocol, with
no allowance for the effects of the occurrence
causing the reduction and
(b) the same system for that year with the appli-
cation of allowance in each of the 30 stream flow
514
DEPARTMENT OF STATE BULLETIN
years for the effects of the occurrence causing
the reduction
and the dependable hydroelectric caixaeity and average
annual usable energy for the purposes of paragraph
(b) of this subsection shall be calculated on the basis
of an operation for optimum generation in the United
States in the light of the effects of the occurrence
causing the reduction.
(4) The Authority shall make comi)ensation for re-
ductions In the Canadian Entitlement, which reduc-
tions are to be determined in accordance -with sub-
sections (2) or (3) of this section, in amounts equal
to the cost of replacing the reductions in the Canadian
Entitlement.
(5) The Authority may at its option, and in lieu of
the monetary comi)ensation payable under subsection
(4) of this section, make compensation by supplying
capacity and energy in an amount equal to tie reduc-
tion in the Canadian Entitlement determined in ac-
cordance with subsections (2) or (3) of this section
and adjusted to reflect transmission costs in the United
States, delivery to be made when the loss would other-
wise have occurred. The Authority may provide com-
binations of money, capacity and energy that are
mutually acceptable in discharge of its obligation to
make compensation under this section.
(6) The Authority shall give notice as soon as ix)ssi-
ble after it becomes apparent to it that compensation
may be due and will at that time indicate the amounts
of capacity and energy which it anticipates it will be
able to make available.
(7) The United States Entity has agreed that, in
order to make up any reduction in the Canadian En-
titlement, it will cause to be delivered the least expen-
sive capacity and energy available and, to the extent
that it would be the least expensive, will deliver at
the then applicable rate schedules of the Bonneville
Power Administration any available surplus capacity
and energy from the United States Federal Columbia
River System. The cost of replacement referred to in
subsection (4) of this section shall be determined as
if the reduction was in fact made up as contemplated
by the agreement referred to in the preceding sentence.
(8) Compensation made in accordance with this
section shall be accepted as satisfaction of all claims
against the Authority with respect to the reduction in
the Canadian Entitlement for which such compensation
was made and with respect to the act or omission of
the Authority from which the right to such compen-
sation arose.
(9) Any obligation to mitigate damages by the
United States Entity, CSPE, the vendees of CSPE, and
the owners of the non-Federal dams on the Columbia
River in the United States is satisfied by compliance
with this section.
(10) If the Canadian Entitlement Exchange Agree-
ments referred to in Section 10 are not in force, com-
pensation for a reduction in the Canadian Entitlement
in accordance with subsections (2) and (3) of this
section, is required only in respect of that part of the
reduction in the Canadian Entitlement which CSPE
and its vendees could have used and only in respect of
costs that could not have been avoided had every rea-
sonable effort to mitigate been made by CSPE and the
owners of non-Federal dams on the Columbia River
in the United States.
Section 7. Reduction or the Canadian Entitlement
IN Accordance With the Treaty.
Any reduction in the Canadian Entitlement resulting
from action taken pursuant to paragraph 7 of Annex
A of the Treaty shall be determined in accordance with
subsection (3) of Section 6 of this Agreement and un-
less otherwise agreed, the Authority shall offset the
reduction by supplying capacity and energy equal to
the reduction, the energy to be supplied in equal
monthly amounts.
Section 8. Settlement op Disputes.
Any dispute arising under this Agreement, in-
cluding but without limitation a dispute as to whether
any event requiring compensation has occurred, the
amount of compensation due or the amount of any
(iverdelivery of jKfwer, is agreed to be a difference
under the Treaty to be settled in accordance with the
provisions of Article XVI of the Treaty. Any deter-
mination of compensation in money or power due shall
be confined to the actual loss uictirred in accordance
with the principles contained ia Section 6 of this
Agreement.
Section 9. Exchanges op Capacity and Energy.
(1) The Authority agrees that CSPE shall have
and may exercise the rights of the Authority as the
Canadian Entity relating to the negotiation and con-
clusion with the United States Entity of proposals
relating to the exchanges authorized by Article VIII
(2) of the Treaty with resjject to any portion of the
Canadian Entitlement.
(2) It is agreed that no exchange of capacity for
energy or of energy for capacity or modification in the
delivery of energy in equal amounts each month as
provided in the Treaty shall be taken into accoimt in
the determination of compensation to be made by the
Authority pursuant to this Agreement.
Section 10. Exchange Agreements.
The BonneviUe Power Administrator acting as the
Administrator and for and on behalf of the United
States Entity has by entering into Canadian Entitle-
ment Exchange Agreements, assured unconditionally
the delivery to the vendees of CSPE by appropriate
exchange contracts of an amount of power agreed
l)etween the United States Entity and CSPE to be
the equivalent of the Canadian Entitlement, and the
United States Entity, while those Agreements are in
force, will succeed to all the rights of CSPE and its
vendees to receive the entire Canadian Entitlement and
all other rights of CSPE arising from this Agreement.
CSPE therefore instructs the Authority, until other-
wise notified, to make any compensation whether in
power or money required to be made by Uie Authority
OCTOBER 12, 1964
515
pursuant to Section 6 or Section 7 of this Agreement to President RepOrtS On Operation
the United States Entity. CSPE agrees that any -r^^Aa Aa,-aaman*c Prnornm
settlement of a claim for compensation or arrange- ©f Trade Agreements Program
ment entered into pursuant to this Agreement by the , „ .
United States Entity shall be binding on CSPE. Following is tfie text of a message from Presi-
s ON 11 Payments ^^'"'^ Johnson transmitting to the Congress the
(1) The Authority shall pay any amount in United eighth annual report on the operation of the
States funds determined to be due in accordance with trade agreements program}
the terms hereof within thirty days of receipt of an
White House press release dated September 23
invoice for such amount.
(2) Should the Authority deUver power in excess ^o the Congress of the United States :
of the amount required as compensation, then appro- j j^^^.^^ transmit the eighth annual report
priate adjustments shall be made in kind or m money. ^^ ^^^^ ^^^,^tion of the Trade Agreements Pro-
Section 12. Appeovals. j^^ -^^ accordance with Section 402(a) of the
No modification or renewal of this Agreement shall ^^^^^^ Expansion Act of 1962.
be effective until approved by the Governments of rr., , , ,„„„ • ^ ■ x- *.
Canada and the United States of America, evidenced by Throughout 1963, intensive preparations went
an Exchange of Notes. forward for the negotiations made possible by
Section 13. Deliveries. this Act— the sixth round of trade negotiations
Any power delivered by the Authority pursuant to under the auspices of the General Agreement
this Agreement shall be delivered at mutually accept- on Tariffs and Trade. During this same year,
able points of interconnection on the Canadian-United -[J g ^^d free world trade continued to set new
States border. Appropriate adjustments shall be made records, and important steps were taken to ex-
to reflect transmission costs and transmission losses in , Vc li
X.. TT -i. ., c* .. pand our exports further,
the United States. ^ ^
Section 14. Notices. * U.S. exports reached a new high of $22.3
Any notices shall be in writing and shaU be deUvered billion, $5.1 billion more than our imports,
or mailed prepaid as follows : • U.S. farm exports rose to $5.6 billion, an
Columbia Storage Power Exchange, all-time record.
20 N. Main Street • Free world trade continued to grow, with
East Wenatchee, Washington, U.S.A. exports climbing to a record $135 billion.
United States Entity • Further progress was made in freeing U.S.
c/o Bonneville Power Administration exports of foreign restrictions.
Po°rtUnd,^o?egon 97208 U.S.A. * Government-industry cooperation in the
British Columbia Hydro and Power Authority promotion of our exports was stepped up, no-
970 Burrard Street tably by the Wliite House Conference on Export
Vancouver 1, British Columbia, Canada, Expansion in September 1963," and the subse-
or such other address as may be signified by notice to quent establisliment of the Cabinet Committee
the others. on Export Expansion.^
In witness whekeof, the parties have caused this • Tlie desire of the less-developed countries
Agreement to be executed as of the day and year first to play a greater part in international trade
above written. received increasing consideration by GATT and
[seal] British Columbia Htdeo and Power ^J ^he United States.
Attest Authority The Trade Expansion Act of 1962 will, I am
By sure, rank as one of the greatest monuments to
Chairman President Kennedy's leadership, and I reaffirm
By the commitment of my Admmistration to its
Secretary full and vigorous implementation.
[SEAL] Columbia Stoeaoe Power ■ H. Doc. 366, 88th Cong., 2d sess.
■Attest Exchange « Bulletin of Oct. 14, 1963, p. 595.
By ' /Sid., Jan. 6, 1964, p. 25.
616
DEPARTSIENT OF STATE BULLETIN
I hope that our friends in other countries will
neither underestimate nor undei-value the
strength of American support for trade liber-
alization. "We are willing to offer the free na-
tions access to our American markets — but we
expect, and we must have, access to theirs as
well. That applies to our agricultural as well
as our mdustrial exports.
These are not the kind of negotiations in
which some nations need lose because others
gain. Their success will be to the advantage
of all. They offer the opportunity to build a
partnership for progress and prosperity among
the industrial nations of the free world, and be-
tween them and the developing nations.
At home, we are moving to eliminate poverty
among all Americans. "We believe that a giant
step can be taken against poverty everywhere
if the free nations can work together to over-
come needless obstacles to the flow of trade
among them.
Ltndon B. Johnson
The "White Hotjse,
September 23, 196J^
Technical Representatives Named
for Trade Negotiations
Christian A. Herter, the President's Special
Representative for Trade Negotiations, an-
nounced on September 25 the establishment of
a roster of tecluiical representatives of industry,
agriculture, labor, and consumers in connection
with the current international trade negotia-
tions under the auspices of the General Agree-
ment on Tariffs and Trade (GATT).'
The chief function of these representatives
will be to provide the American negotiators at
the trade talks in Geneva with factual infor-
mation (economic, technological, marketing,
etc.) that is relevant to the negotiations.
Unlike the Public Advisory Committee on
Trade Negotiations,- appointed by the Presi-
dent on March 2, the representatives on the
" For a preliminary list of the names on the roster of
technical representatives, see Office of the Special
Representative for Trade Negotiations press release
dated Sept. 2.o.
° Bulletin of Mar. 23, 1964, p. 457.
roster will not function as a group. Again un-
like the Public Advisory Committee, they will
give their advice as representatives of their
economic interests, rather than as individual
citizens.
The technical representatives will serve with-
out pay. More may be appointed in the future,
as the needs arise.
U.S. and Hong Kong Announce
Cotton Textile Agreement
Press release 414 dated September 23
The United States Govermnent and the Gov-
ernment of Hong Kong have reached agreement
on the principles of an arrangement that will
govern exports of cotton textiles from Hong
Kong to the United States during the third
year of the Geneva Long-Term Arrangement,
which commences October 1, 1964.
The purpose of the agreement is to provide
for orderly exports from Hong Kong to the
United States during the third year of the
Long-Term Arrangements Regarding Interna-
tional Trade in Cotton Textiles,^ which became
effective on October 1, 1962, for a period of 5
years. The new agreement concludes discus-
sions conducted in Hong Kong between repre-
sentatives of the two Governments.
The new agreement continues restraints on
the 36 categories of cotton textiles listed in the
annex to this release. The agreed restraint
levels in most categories represent a 5-percent
increase over the corresponding restraint levels
for the current textile year = in accordance with
the provisions of the Long-Term Arrangement.
The following are the principal points of the
agreement :
1. The restraint levels in the 36 categories of
cotton textiles total 271.0 million square yards
equivalent for the 12 months commencing Oc-
tober 1, 1964.
2. The Government of Hong Kong also agrees
to limit the corduroy fabric content of apparel
exports to the United States to a level of 7 mil-
lion square yards for this 12-month period.
' For text, see Bulletin of Mar. 12, 1962, p. 431.
' For a joint U.S.-Hong Kong announcement of Nov.
15, 1963, see iUd., Dec. 16, 1963, p. 933.
517
This level reflects the historic pattern of Hong
Kong's expoi-ts of these items.
3. Within the export ceiling for category 26,
the Government of Hong Kong has agreed to
limit exports of cotton duck to a maximum of
21.5 million square yards.
4. The United States Government agreed to
provide a certain degree of export flexibility
among certain fabric categories as indicated in
the annex.
5. Hong Kong has agreed to discontinue
classifying in category 52 nonblouse compo-
nents of blouse sets. Most of these nonblouse
components will be classified in category 51,
which has a level of 1,605,858 dozen for the year
beginning October 1, 1964.
6. The two Governments agreed that the re-
straint levels for categories 45 and 46 shown in
the annex will be further adjusted to take into
account the past trade in short-sleeved dress
shirts reclassified under category 45.
7. The Government of Hong Kong has agreed
to continue to space exports of cotton textiles in
the restrained categories to avoid undue con-
centration of imports.
8. The two Governments will continue to pro-
vide each other data on exports and classifica-
tion of cotton textiles in order to facilitate ad-
ministration of the agreement.
A list of the specific restraints on the 36 cate-
gories of cotton textiles is provided in the an-
nex below.
ANNEX
Category Description
1 Cotton yarn, carded, singles
5 Gingham, carded
6 Gingham, combed
9 Sheeting, carded
15 Poplin and Broadcloth, carded
16 Poplin and Broadcloth, combed
18 Print cloth, shirting type, 80 x 80 type, carded
19 Print cloth, shirting type, other than 80 x 80 type, carded
22 Twill and Sateen, carded
23 Twill and Sateen, combed
24 Woven fabric, not elsewhere specified, yarn dyed, carded
25 Woven fabric, not elsewhere specified, yarn dyed, combed
26 Woven fabric, not elsewhere specified, other, carded
27* Woven fabric, not elsewhere specified, other, combed**
28 Pillowcases, carded
30 Towels, dish
31 Towels, other
36 Bedspreads and quilts
39 Gloves and mittens
41 T-shirts, all white, knit, men's and boys'\
42 T-shirts, other, knit /
43 Shirts, knit, other than T-shirts and sweatshirts
45 Shirts, dress, not knit, men's and boys'
46 Shirts, sport, not knit, men's and boys'
48 Raincoats, % length or longer, not knit
49 Coats, other, not knit
50 Trousers, slacks and shorts (outer), not knit, men's and boys'
51 Trousers, slacks and shorts (outer), not knit, women's, girls' and infants'
52 Blouses, not knit
53 Dresses, including uniforms, not knit
54 Playsuits, sunsuits, washsuits, creepers, rompers, etc., not knit, not else-
where specified
55 Dressing gowns, including bathrobes, beach robes, lounging gowns, dusters
and housecoats, not knit or crocheted
60 Pajamas and other nightwear
61 Brassieres and other body-supporting garments
62*** Wearing apparel, knit, not elsewhere specified
64**** All other cotton textiles
*Refer8 to Oxford-type cloth, combed yarn.
**rarts of T.S.U.S.A. nos. 320.-90, 323.-90, 326.-90, 329.-90, 320.-94, 323.-94, 326.-94, and 329.-94.
***Refers to knitted sweat shirts.
****Rcfers to industrial wiping cloths.
' Iloiig Kong has the right to transfer yardage for export between these categories provided exports in any one
category will not exceed 2 million square yards.
' Joint ceiling for categories 41 and 42 which previously had separate restraint levels.
Restraint level
216, 300 lbs.
3
628, 126 syds.
757, 050 syds.
50
500, 051 syds.
1
622, 250 syds.i
594, 825 syds.'
118, 965 syds.'
675, 938 syds.'
17
517,701 svds.
702, 975 syds.i
254, 153 svds.'
248, 745 svds.'
31
080, 177 svds.
1
081, 500 svds.
486, 675 nos.
848, 890 nos.
10
490, 550 nos.
54, 075 nos.
237, 037 doz. prs
413, 438 doz.!"
386, 350 doz.
286, 650 doz.
825, 825 doz.
11,942 doz.
45, 330 doz.
771, 750 doz.
1
605, 858 doz.
1
119,037 doz.
60, 637 doz.
132, 300 doz.
97, 650 doz.
496, 124 doz.
1
549,012 doz.
314, 212 lbs.
3
677, 100 lbs.
518
DEPAKTMENT OF STATE BULLETIN
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
Nuclear Energy for the Benefit of Man
Statement hy Glenn T. Seahorg
Chairman, U.S. Atomic Energy Commission''-
It is a pleasure and an honor to represent the
United States for tlie fourth time at the Gen-
eral Conference of the International Atomic
Energy Agency and to address my fellow dele-
gates to this conference. I extend congratula-
tions to you, Ambassador [H. F.] Eschauzier
[Netherlands], upon your election as president
of the conference and to Director General [A.
Sigvard] Ekhmd for his leadership of the
Agency during the past year.
Like many of you, I have been involved these
last 2 weeks in productive discussions of nuclear
de^-elopments with colleagues from countries all
over the world. The Third International Con-
ference on the Peaceful Uses of Atomic Energy
was conducted with outstanding success in
Geneva." I feel that special commendations are
in order to the Agency's staff, to many of the
members of this audience, and to many others
for helping to make this conference an outstand-
ing scientific and teclmical contribution to nu-
clear progress. We in the United States espe-
cially welcome the spirit of cooperation that was
evident among individuals, governments, and
international organizations during the 10-day
meeting. It was also my honor to be in Sweden
for the first visit to Sweden of the U.S. nuclear
' Made before the General Conference of the Inter-
national Atomic Energy Agency at Vienna, Austria,
on Sept. 15. Dr. Seaborg was U.S. Representative to
the General Conference.
■ For a statement made by Dr. Seaborg at Geneva
on Aug. 29, see Bulletin of Sept. 21, 1964, p. 408.
ship Savannah and to be the host for a visit and
cruise on the ship by a group of delegates to
the Geneva conference. I also had the good
fortune to visit Brussels, where I had the i^riv-
ilege of addressing and conferring with leaders
of European nuclear industry.
Out of these experiences and other develop-
ments in the last year have come some general
impressions that I know many of us share, and
upon which I should like to comment briefly be-
fore discussing the business of this meeting.
There are two generalizations that are, I be-
lieve, particularly pertinent for this conference.
First, in this 25th anniversary year of t\\& dis-
covery of nuclear fission, we have arrived on the
threshold of the age of nuclear power. Second,
the Agency has come of age in the past year, as
a result both of its real accomplishments and
the growth in urgency of its responsibilities
that derive from the prospect of the early wide-
spread use of nuclear power plants.
The Age of Nuclear Power
I should like to elaborate on these two gen-
eralizations briefly. First, as the Geneva con-
ference dramatically demonstrated, the time has
arrived when we have the cajjability of produc-
ing nuclear power economically. Specifically,
there is widespread agreement that large nu-
clear power plants with high-load factors can
compete in many parts of the world. In my
comitry we estimate that the cost of power from
large reactors today is essentially the same as
OCTOBER 12, 1964
519
Senate Confirms Nominations
to IAEA General Conference
The Senate on September 8 confirmed the fol-
lowing nominations :
Glenn T. Seaborg to be the representative of
the United States to the eighth session of the
General Conference of the International Atomic
Energy Agency.
Henry DeWolf Smyth, Frank K. Hefner, John
Gorham Palfrey, James T. Ramey, and Gerald
F. Tape to be alternate representatives of the
United States to the eighth session of the Gen-
eral Conference of the International Atomic
Energy Agency.
that predicted for the late 1960's by the U.S.
Atomic Energy Commission's report to the
President made only 2 years ago !
Second, international tensions have dimin-
ished perceptibly. An important factor in the
relaxation of these tensions was the conclusion
of the treaty banning nuclear weapons tests in
the atmosphere, in outer space, and under
water.^ As a result, we have seen the growth
in that favorable international climate which
is conducive to the widespread exploitation of
nuclear power in the world.
Third, as a result of the arrival of economic
nuclear power and the softening of interna-
tional tensions, an atmosphere of confidence
pervades the international nuclear community.
The optimism I find today is rooted in the
reality of experience. We feel we know what
we can and cannot do in nuclear power tech-
nology. The situation is imlike the almost un-
limited optimism, based too much on guesses
and hopes, which was widespread nearly a dec-
ade ago.
Finally, this Agency has made striking pro-
gress in the development of experience in the
critical matter of international safeguards.
Acceptable, uniform international responsibil-
ity in these functions, which are the province
of the Agency, is an important basis of the high
hope that nuclear energy can eventually satisfy
the power needs of an energy-hungry world.
These events are encouraging to me, as they
must be to all of you. For 7 years the Agency,
beset by nonnal growing pains and a difficult
' For text, see ihid., Aug 12, 1963, p. 239.
time in world affairs, has struggled toward
goals that so often seemed to be forbiddingly
far away. Today, as the Agency begins its
eighth year, the vision and faith of the member
nations and their representatives stand justi-
fied. Major functions of the Agency in world-
wide development of nuclear energy today have
in large measure the texture of reality.
I can best express my country's feelings about
the meaning of the Agency's role in these events
by repeating a portion of the message President
Jolinson sent to the Geneva conference.*
Speaking of past accomplishments and future
prospects in nuclear power and desalination,
President Jolinson said :
As we move ahead we look to the International
Atomic Energy Agency to play an ever larger role In
these peaceful efforts. Already it has set standards
for the care and for the keeping of nuclear materials.
This achievement has raised our hopes for a workable
system of world law on nuclear energy.
The telescoping of nuclear technology makes
the work of the Agency not only more important
but more urgent than ever. It is true that the
new economics of large-scale nuclear power
jjlants will not have a sudden, marked impact
on the workload of the Agency. But we must
anticipate that further technological achieve-
ments will follow in the wake of those of the
past year. I believe we have no time to lose in
developing the precedents and procedures of
world nuclear law and of equipping many na-
tions with the technical competence to take ad-
vantage of future technological advances that
seem inevitable.
Strengthening Safeguards System
I should like now to turn to an examination
of the progress of the Agency in the last year
and to comment upon the work ahead, ily
first comments will be an elaboration on my
Government's enthusiasm for the progress that
has been made on the strengthening of the
safeguards system.
At this time 17 countries receiving materials
and equipment from the United States have
agreed, in principle, to the application of
Agency safeguards to the assistance being pro-
vided. These include trilateral a<ri"ecments un-
< For text, see ihid.. Sept. 21, 19ft4, p. 411.
520
DEPARTMENT OF STATE BtJLLETIN
der wliich facilities and materials obtained
from the U.S. have been made subject to Agency
safeguards. They also include agreements un-
der wliich both the supply of materials and the
safeguards are the responsibility of the Agency.
The arrangements cover several important re-
search reactors, and power reactoi-s as well.
We are also in favor of the concept whereby
member states register with the Agency trans-
fers of nuclear materials for peaceful purposes.
The extension of the Agency's system to re-
actors over 100 mwt. has resulted in an agree-
ment to place our Yankee power reactor under
Agency safeguards.^ The Yankee agreement
shoidd make a substantial contribution to our
mutual miderstanding of the problems of nu-
clear materials control, and we hope that other
member states will take similar action to help
the Agency extend its statutory responsibilities.
Under this agreement, the Agency also con-
tinues to have safeguards responsibility for a
smaller power reactor and two research reactors
in the U.S.
We are pleased with the progress that has
been made to date on the general review of the
Agency's safeguards system. We agree with
what appears to be the Review Committee's
preliminaiy assessment that the basic princi-
ples of the present system are sound but that
improvements in language and format are de-
sirable. We also note that the Eeview Com-
mittee is giving attention to some aspects of
safeguards not yet incorporated, such as meas-
ures relating to reprocessing.
The worldwide development of the peaceful
uses of atomic energy must proceed without
thereby encouraging the proliferation of mili-
tary nuclear developments. There are strong
reasons for the Agency to play a central role in
such controls. The practical advantages of in-
ternational safeguards over bilateral agreements
include uniform applicability, the prevention
of weakening of safeguard standards to give
commercial advantage to suppliers, and the re-
duction of the niunber of inspection teams in
countries having several suppliers.
Parenthetically, we believe that our experi-
ence to date has shown that the system involves
no onerous burdens on the participating states
• For background, see iUd., July 6, 1964, p. 27.
and in no way interferes with the efficient opera-
tion of their nuclear installations.
Witli regard to the regulatory area, we com-
mend the Agency for emphasizing the develop-
ment of health and safety codes and practices,
and for its increase in teclmical advice and
short-term assistance to member states. We
also wish to commend the Agency for estab-
lishing a list of consultants available to mem-
ber states to advise on health and safety meas-
ures and proposed shipments of irradiated
fuel.
The increasing use of radioactive materials
has also enhanced the importance of the Agen-
cy's work in radioactive waste management.
It continues to be our view that primary em-
phasis should be placed on technical assistance
to developing countries on pressing, practical
problems of waste management, even at the
cost of reducing the number of symposia and
panel meetings. We reiterate our recommen-
dation that the Agency promote more vigor-
ously the establisliment of international waste
burial grounds and the solution of associated
problems.
All of these problems are becoming more sig-
nificant as teclinology speeds us toward the day
of extensive nuclear power. The Geneva con-
ference, marked by a general recognition of
the feasibility of greatly reduced capital and
fuel cycle costs, underlined the urgency of
working on these problems.
Sea Water Desalination
I should like to speak in some detail about
one aspect of the new prospects of nuclear
power in which the United States and other
comitries are intensely interested, namely, the
future use of large reactors for the dual pur-
pose of power production and sea water
desalination.
The report released by the U.S. Office of
Science and Teclinology this past April shows
that very large combination nuclear power-
desalting plants which could be operational in
the period 1970-1975 could convert salt water
to fresh water for municipal and industrial
uses at a cost which compares favorably with
the price of fresh water from other sources,
while pi'oducing electricity at a relatively mod-
DCTOBER 12, 1964
521
erate cost. Moreover, this rei^ort foresees the
possibility that irrigation water may be pro-
duced, at a reasonable cost, in the 1980's.
President Johnson offered, in his statement
to the Geneva conference, United States coop-
eration in helping other countries overcome
water shortages. I am pleased to announce to
this conference the offer my Government made
at the Agency's Panel on Nuclear Desalting held
in Geneva last week. We are prepared to do
the following: first., to provide for the services
of a nuclear desalination expert to the Agency;
second, to make available orientation visits for
Agency staff to U.S. facilities engaged in desalt-
ing activities; and third, to consider nomina-
tions by the Agency of qualified individuals
from other member states for research and
training opportimities in U.S. facilities engaged
in the nuclear and conventional aspects of de-
salting.
We are encouraged by the Agency's role in
two desalting projects. First, the Agency has
been the focal point for discussions between the
United States and Mexico on a proposed study
concerning the feasibility of installing a nuclear
power-desaltmg plant near the Gulf of Cali-
fornia to meet water and power needs in the
area. Second, the Agency is acting as an ob-
server in a joint survey now being performed
by the U.S. and Israel to define the scope and
requirements of a nuclear desalting project in
Israel.'^ I shall also like to mention that our
discussions in July with scientists from the
U.S.S.E. ' have resulted in agi'eement for effec-
tive scientific cooperation in developing methods
for desalting sea water and brackish water, in-
cluding the use of nuclear power for desalina-
tion plants.
Research and Development
I sliould like now to turn to the research,
training, and technical assistance programs of
the Agency, the importance of which is magni-
fied by tlie telescoping of nuclear power prog-
ress. It is through these programs that the
Agency can help member states acliieve the tech-
nical competence necessary to take advantage of
a ripening nuclear technology. I should like to
" Iliiil., .luiie 29, 1964, p. 1001.
' Ibi'l.. AiiE. 17, 1904, p. 2.m
comment on several aspects of these activities.
As a scientist I am especially gratified that
consideration is being given to the first biennial
progi-am in the Agency's historj'. Since re-
search and technical assistance are long-range
activities, progi-aming for a 2-year period will
be a significant improvement for those pro-
grams. The modest increases approved by the
Board of Governors in the 1965 budget for re-
search contracts and for the Seiberstlorf labora-
tory are constructive. We are heartened by
the priority that is being given to the award
of contracts to research I'eactor centers and
laboratories in developing countries, and to the
research and educational opportunities avail-
able under Agency agreements at the Interna-
tional Center for Theoretical Physics at Trieste,
the NORA reactor in Norway, and the marine
biological project at Monaco. A model effort
to stimulate research through member-state co-
operation on a regional basis is the establish-
ment for Asia and the Far East of an experi-
mental program, built around the gift of a neu-
tron crystal spectrometer by the Government
of India, at the Philippines Atomic Energy
Research Center near Manila.
The utilization of research reactors continues
to be one of the most promising fields of activ-
ity for the Agency. An increasing number,
about 45 percent, of the Agency's member coun-
tries now have research reactors in operation
or mider construction, and we support the
Agency's plans for assistance in developing re-
search programs, particularly for newly estab-
lished centers in many of the member states
tlirough such means as regional study group
meetings.
The United States will continue to provide
experts for these undertakings and will main-
tain the "sister laboratory" arrangements be-
tween nuclear centers in the United States and
nuclear reactor centers in developing countries.
For the sixth consecutive year the United
States, as a means of stimulating research and
development, is pleased to renew for 1065 its
oll'er to donate up to $50,000 worth of special
luiclear material for use in Agency projects in
researcli and medical therapy. In the fii-st 5
years this offer was made, it lias been used to
help research re^actor projects in five member
states and tlie Agency's own laboratory.
522
DElWliTJIENT OF ST.VTE BULLETIIT^
As another means of stimulating research and
training, I annomice with pleasure that the
United States is prepared to offer two kinds of
assistance in the construction and operation of
subcritical assemblies. Fii-st, we will provide
the Agency with up-to-date teclmical informa-
tion covering detailed design, fabrication, and
operating characteristics of an inexpensive sub-
critical assembly developed by an American
firm at its own expense. Second, my Govern-
ment will lease fabricated natural uranium
slugs, which we liave on hand, for subcritical
assemblies. Enriched uranium in unfabricated
form, with a value up to $125,000, may also be
leased under our existmg policies for use in sub-
critical assemblies.
Technical Assistance
We believe the technical assistance activi-
ties— embracing the provision of experts and
equipment, training, and special missions — have
evolved on a soimd basis. Unfortimately, short-
ages of funds have prevented the Agency's
meeting all of the worthwhile needs of member
states. Nevertheless, during 1961, '62, and '63
the Agency was able to grant about 1,400 fellow-
ships for study in the various branches of nu-
clear science. It sent out about 450 experts and
visiting professors to assist member states in
developing programs. It established the In-
ternational Center for Theoretical Physics at
Trieste, a regional isotope training center, and
several joint re-search and training programs.
It also approved in principle a second regional
isotope training center. We believe the tech-
nical assistance programs benefit significantly
through coordination witli similar activities of
WHO [World Health Organization], FAO
[Food and Agriculture Organization], UN-
ESCO [United Nations Educational, Scientific
and Cultural Organization], the U.N., and
otiier agencies. Further benefits, particularly
the best use of the Agency's limited funds,
would come from the "counti-y program" ap-
proach to technical assistance. We urge the
secretariat to continue its steps toward full uti-
lization of this tj'pe of programing.
The greatest problem facing the Agency in
connection with technical assistance is financial
stabilit3\ Those of you who attended last year's
General Conference may recall that we strongly
urged the adoption of a statutory amendment to
place the entire budget on an assessed basis in
order to fulfill more effectively the Agency's re-
sponsibilities in teclmical assistance and train-
ins:. Although we concluded that there was
not yet sufficient broad understanding of this
amendment to achieve speedy ratification, we
still regard a fully assessed budget as the best
ultimate solution to financial stability. In the
meantime, however, we urge all members who
have not already done so to conti'ibute to the
voluntary operating fund an amount that is at
least equivalent to eacii member's percentage of
the regular program. In addition, gifts in kind
to the Agency for use in its approved programs
will help carry out the programs in technical
assistance and training. We shall continue,
ourselves, to make available training oppor-
tunities in our institutions, the services of our
experts, and certain items of equipment, to the
extent that we are able to do so.
A summary of accomplishments demonstrates
that the Agency begins its eighth year in far the
strongest position in its history. In the past 3
years the total approved budget has increased
from about $81/3 million for 1962 to about $934
million for 1964. Its research and technical
assistance progi-ams have been meaningful; it
has established important new laboratory, train-
ing, and joint research programs; and it has ex-
panded its safeguards responsibilities. Tlie
meetings of the General Conference and the
Board of Governors have been increasingly con-
cerned with technical and administrative prob-
lems and, most importantly, with virtually no
unproductive and tangential political discus-
sion. And this is only an arbitrary selection of
evidences of Agency progress.
This has been a year of fulfillment — a year of
maturing. The economic breakthrough in large
nuclear power reactors, the softening of inter-
national tensions, the new mood of confidence
in the world nuclear community, the progress of
this Agency toward world nuclear law, and the
demonstrated ability of this organization to
give substantive help to nations developing nu-
clear programs — all have contributed to the
beginning of a bright new phase of exploitation
of nuclear energy for the benefit of man.
523
We must remember, however, that the strug-
gles of the past have been but a prelude to the
larger challenges of the future. With con-
tinued devotion, good will, and a generous
spirit, the International Atomic Energy Agency
can hasten the time when nuclear energy, in its
many forms, will help man conquer want and
build a secure and peaceful world.
Eighteen-Nation Disarmament Committee
Recesses 1964 Session
Statement hy William C. Foster
Director, TJ^S. Arms Control and Disarmament Agency ^
I regret the fact that it is necessary once
again for me to conmient unfavorably on cer-
tain statements made by the Soviet representa-
tive [Semyon K. Tsarapkin]. It seems to me
to be unf ortimate that near the end of his other-
wise interesting statement this morning — at our
last meeting of this session — he should choose to
renew his Government's false charges against
the policies of my own country as well as those
of our allies, in particular the Federal Republic
of Germany. It seems to me that this is not the
way to improve the atmosphere or indeed the
prospects for future negotiations. This is not
the way to convince other nations that the Soviet
Union sincerely desires to achieve mutual im-
derstanding; this is not the way to lessen the
tension or lay a basis for disarmament. The
patience of the United States is great, but it is
not unlimited. However, at this our last meet-
ing of the session I do not intend to follow the
example of the Soviet representative and en-
gage in polemics.
Message From P icTcfcrt Jc [ [ m
At our first meeting this year I read a message
from President Jolmson." It began : "There is
only one item on the agenda of this Confer-
ence— it is the leading item on the agenda of
mankind — and that one item is peace." Today
I should like to read another message from
President Johnson, as follows : *
Peace is still the one item on your agenda and the
leading item on the agenda of mankind.
Our Conference was formed because nations have
learned that peace cannot be assured by military pre-
paredness alone. They have learned that they must
work together if our world is to be moved toward last-
ing peace instead of war.
War is senseless in the world of today when a single
nuclear weapon can contain more explosive force than
aU the bombs dropped in World War II.
War is senseless when nations can inflict devastating
damage and incalculable suffering on each other and
the rest of the world in the space of an hour.
I pledge the best efforts of which my country is ca-
pable to prevent such a war. To this end — to deter
aggression — my country is maintaining the most pow-
erful defense force in its peace-time history. But in
the world of today, the quest for peace demands much
more than military preparedness. It demands the
elimination of the causes of war and the building of a
firm foundation for peace.
In the quest for peace, this Conference has already
played a significant role.
Already the world is somewhat safer because of the
efforts of the nations represented here. The air we
breathe is no longer being contaminated by nuclear
tests. Nuclear weapons are being kept out of space.
Announcements have been made that planned produc-
tion of fissionable material for nuclear weapons is
being limited. Better means of emergency communica-
tions exist to help prevent an unintended nuclear ex-
change. For the first time, friends and adversaries
' Made before the Conference of the Eighteen-Nation
Committee on Disarmament at Geneva, Switzerland,
on Sept. 17. Mr. Foster was head of the U.S. delega-
tion.
' For text, see Bulletin of Feb. 10, 1964, p. 224.
' Also released as White House press release dated
Sept 16.
524
DEPAKTMENT OF STATE BULLETIN
alike have taken steps together to bring the nuclear
arms race under control.
Limited as they are, these achievements are cause
for some satisfaction. They followed sixteen years of
post-war disarmament talks which produced neither
agreement nor the basis for agreement.
The year lOtil saw the first steps to build the basis
for later agreement. The McCloy-Zorin negotiations
produced a Joint Statement of Agreed Principles to
guide disarmament deliberations.* This was followed
by agreement on the framework for this Conference."
In my country, a new Arms Control and Disarmament
Agency was created to give new impetus toward the
goal which we all share." This is a goal which the
United States Congress described as "a world which
is free from the scourge of war and the dangers and
burdens of armaments ; in which the use of force has
been subordinated to the rule of law ; and in which
international adjustments to a changing world are
achieved peacefully."
This Conference began in 1962. In that year, your
deliberations included three proposals which formed
the foundation for the three forward steps taken in
1963 — the nuclear test ban treaty,' the communications
link between Washington and Moscow," and the United
Nations resolution against nuclear weapons in space.*
The year 1064 has witnessed announcements by my
country, the Soviet Union and the United Kingdom
that the planned production of fissionable material for
nuclear weapons would be limited.'"
This year also brought more concrete proposals for
safeguarded and realistic agreements than any other
year since before World War II. These proposals have
included urgently needed steps to prevent the spread
of nuclear weapons. They have included measures to
cease the production of fissionable materials for nu-
clear weapons and to freeze the numbers and char-
acteristics of strategic delivery systems. They have
included plans to decrease the danger of war by acci-
dent, miscalculation or surprise attack.
This year has not witnessed agreement on any of
these proposals. We hope that, like 1961 and 1962, it
has witnessed the groundwork being laid for the agree-
ments of the future.
The road to peace is not an easy one. The concrete
gains so far achieved required long and diligent effort.
So will the accomplishments of tomorrow.
As you recess temporarily your deliberations in
Geneva, let each nation represented here resolve to
' Bulletin of Oct. 9, 1961, p. 589.
"For background, see Hid., Mar. 5, 1962, p. 3.5.5;
Mar. 19, 1962, p. 465 ; Mar. 26, 1962, p. 494.
" For background, see Hid.. Oct. 16, 1961, p. 646.
' For text, see ibid., Aug. 12, 1963, p. 239.
'md., July 8, 1963, p. 50.
"Ibid., Nov. 11, 1963, p. 753.
" For an address by President Johnson before the
Associated Press at New York City on Apr. 20, 1964,
see ibid., May 11, 1964, p. 726.
continue at home its consideration of the proposals
made at this Conference. Let each nation use this
time for reflection. I^et each nation return to the re-
convened conference prepared to take additional steps
toward peace.
Let us all contribute to building a safer tomorrow.
I ask that that message from President John-
son be circulated for the infonnation of the
Conference.
Conference's Role in Quest for Peace
Now let me call the attention of members of
the Committee to President Jolinson's remark
that this Conference has already played a sig-
nificant role in the quest for peace. My Gov-
ernment has long believed that this Conference
is an extremely useful fonmi for the exchange
of views and the conduct of negotiations. As
I have probably said to many of you, if it did
not exist we should have to create something
like it.
During the first 2 years of our Conference
differences over the manner of achieving dis-
armament became increasingly apparent. Those
differences arose over the need to provide bal-
ance, verification, and peacekeeping machineiy.
All three points featured in our consideration
of nuclear delivery vehicles this year, and, in
spite of this year's passage, "we do not seem
closer to our goal. Yet the exchange of views
has at least clarified the differences.
The radical reduction in strategic armaments
which the Soviet Union has proposed for the
first stage of disarmament would be decidedly in
its favor. It would upset the present balance
and create more danger than it eliminated. No
nation can be expected to risk war in order to
achieve disarmament. There is no safe short-
cut to the millennium.
We must recognize the facts of the present,
establish goals for the future, and move toward
those goals in a step-by-step, evolutionary proc-
ess. That is the approach of the United States
plan for di.sarmament. That is also our ap-
proach to collateral measures.
The sharp disagreements over methods of
achieving disarmament led the Conference this
year to focusing greater attention on collateral
measures. The United States presented pro-
posals to the Conference wliich were intended
to reduce the area of disagreement on all three
OCTOBER 12, 1964
525
main points of disagreement — balance, verifi-
cation, and peacekeeping. We designed those
proposals so that they would not disrupt the
present rough balance between the two sides.
We designed them so that effective verification
could be provided without as much inspection
as that required for general disarmament. We
designed tliem so that their adoption would not
produce an immediate requirement for a sig-
nificant strengthening of present institutions
for keeping the peace.
By planning our proposals to reduce the areas
of difference on each of the three points of dis-
agreement, we hoped to make them more ac-
ceptable to all concerned. Moreover, by focus-
mg on methods to halt the nuclear arms race
and turn it aroiuid, we hoped to find the easiest
way to lay a fomidation for disarmament.
We proposed a freeze on strategic delivery
vehicles for nuclear weapons.^^ To begin the
actual disarmament j^rocess, we suggested the
mutual destruction of substantial numbers of
B^7 and TU-16 bombers.^^
We proposed a cutoff in the production of
material for use in nuclear weapons.^^ To re-
duce the stocks of those explosives available for
weapons, we suggested the transfer of large
quantities of such material to peaceful purposes.
To halt the spread of nuclear weapons to na-
tions not now controlling them, we called for
agreement on four additional steps : ^*
( 1 ) that nuclear weapons should not be trans-
ferred into the national control of nations which
do not now possess them ;
(2) that all transfers of nuclear materials
for peaceful purposes should take place under
IAEA [International Atomic Energy Agency]
or similar safeguards;
(3) that major nuclear powers should accept
in an increasing number of their peaceful ac-
tivitie.s the same safeguards as those they rec-
ommend for nonnuclear powers; and
(4) that an effectively' verified ban should
be placed on all nuclear tests— those under-
groimd as well as those above ground.
" For background, see ibid.. Mar. 2, 19G4, p. 350 ; May
11, V.WA, p. 750) ; Sept 21. 1964, p. 413.
" Ibid., Apr. 20, 19(>4, p. 643.
" Ibid., July 27, 1064, p. 123.
"ibiW., Mar. 9, 1964, p. 376, and Apr. 20, 1964, p. 641.
Finally, we suggested measures which would
help to reduce the risk of war, increase the
peaceful settlement of international disputes,
and improve the ability of the United Nations
to mobilize peace forces for coping with limited
conflicts.
Comprehensive Test Ban
Having summarized the proposals made by
my country this year, I should like to comment
briefly on the joint memorandum which relates
to one of them — the eight-nation memorandum
on a treaty banning all nuclear weapon tests.^^
We have long urged a comprehensive test ban
to help prevent the spread of nuclear weapons
to countries that do not now possess them. Our
support for such a ban was reaffirmed by Presi-
dent Johnson in his message to the Conference
of 21 January 1964. It was reiterated by my
delegation as recently as 8 September, at our
214tli meeting.
We read the jomt memorandmn as proposing
an agreement to ban all nuclear tests — an agree-
ment which would provide verification satisfac-
tory to both sides. The United States is, of
course, not willing to accept a prohibition on all
its tests unless it can have adequate assurance
that the other side is actually adhering to the
same restraint.
The joint memorandum proposes an exchange
of scientific and other infonnation between nu-
clear powers. My delegation has repeatedly
suggested that if the Soviet Union has infor-
mation on how to detect and identify all under-
ground events by using distant instrumentation
it should supply that information to other gov-
ernments. As far as my Government is con-
cerned, it will gladly cooperate in an exchange
which will give each side information available
to the other on techniques for detection and
identification of underground tests.
The joint memorandum also suggests im-
provement of detection and identification tech-
niques, if necessary. Because ni}' Government
has long believed that such improvement is nec-
essary, we are continuing to caiTV out an exten-
sive research program for this purpose.
Tlie joint memorandum reflects the sincere
" KNIKV145.
526
DEPARTMENT OF STATE BULLETIN
desire of the eight nations to hasten the achieve-
ment of a compreliensive test ban. That desire
is sliared by my nation and, I believe, by most
of the nations of the world. We believe the
meniorandiini to be a most useful contribution
to this Conference, another among tlie signifi-
cant contributions made by the eight nations.
The main reason for the adoption of a com-
prehensive test ban is to erect a further obstacle
to the spread of nuclear weapons to countries
that do not now possess them. That is an inter-
est wliicli we all share. One of our foremost
concerns here is the danger of nuclear war.
Think for a moment how that danger would be
increased if 5, 10, or even 20 nations had nuclear
weapons. Every increase in the number of na-
tions having nuclear weapon capabilities multi-
plies the chances of an accidental or uninten-
tional nuclear exchange — an exchange the ef-
fects of which would, as we all laiow, not be
limited to the nuclear powers.
That is why, out of all the proposals referred
to by President Jolmson in the message I have
just read, he placed in the "urgently needed"
category steps to prevent the spread of nuclear
weapons. That is why, in a speech which he
made yesterday in Seattle, Washington,^" he
said that our work against nuclear spread must
go on. That is why my delegation has laid so
much stress on nonproliferation this year; and
that is why I hope we shall make early progress
on nonproliferation when we meet again.
Toward a Safer Tomorrow
As we close our session this year, let me
describe to you the kind of world which I think
could be produced by future agreement on the
collateral measures we have advanced this year.
Those measures would prevent the spread of
nuclear weapons to nations which do not now
possess them, halt the increases and reduce the
stocks of the explosives and strategic vehicles
for nuclear weapons, inhibit the production of
new and improved strategic aircraft and mis-
siles, limit the danger and devastation of a
nuclear exchange, reduce the risk of both nu-
clear and conventional war, improve the institu-
tional machinery for keeping the peace, reduce
still further the tensions between the two sides,
' Bulletin of Oct. .5, 19&1, p. 458.
and free vast resources to help satisfy the unmet
needs of mankind.
Those results would not produce the millen-
nium, but they would help build the "safer
tomorrow" of which President Johnson's mes-
sage speaks. Moi-eover, they would open the
door to disarmament and to a better world
order, and they are achievable in today's world.
Our labors here this year have not been in
vain. Each of our govermnents understands
better our common objectives and what we must
do to achieve them. On behalf of my Govern-
ment let me state that we look forward to a
prompt resumption of our labors, with the
sincere hope of achieving early agreement.
In conclusion, I should like to thank my
fellow chairman, Mr. Tsarapkin, and his dep-
uty, Mr. [L. I.] Mendelyevich. I would also
thank the other members of the Committee for
the constant cooperation and help they have
given to me and to my delegation. I should
like also to thank the Special Representative of
the Secretary-General, Mr. [Dragoslav] Pro-
titch, and his deputy, Mr. [W.] Epstein, and the
whole stall' of the secretariat — in particular the
interpreters, for their outstanding contribution
and the patience they have shown to us during
these many weeks.
U.S. Comments on U.N. Mission's
Cambodia-Viet-Nam Report
Following is the text of a letter from Am-
hmsador Adlai E. Stevenson, U.S. Represent-
ative to the United Nations, to the Acting
President of the Security Council, Platon
Dmitrievich Morozov.
September 9, 1964.
Dear Mr. PREsmENx: I have the honor to
refer to the report of the Security Council Mis-
sion to tlie Kingdom of Cambodia and the Re-
public of Vietnam which was submitted to the
President of the Security Council on July 27,
19G4(S/5832).
After studying the report with great care
and interest, my Government has come to the
conclusion that the recommendations made in
Part VI — particularly those looking toward the
OCTOBER 12, 1964
527
establishment of a group of United Nations
observers and tlie resumption of political rela-
tions between Cambodia and Vietnam — offer
genuine promise of reducing the incidents which
have occurred along the common border be-
tween Cambodia and Vietnam and, at the same
time, other sources of recent tension between
these two countries. My Government believes
that the members of the Security Council Mis-
sion should be commended for the wisdom they
demonstrated in making recommendations
wliich have two great merits : not only do they
point in the direction of an improved future,
but also they point to practical, albeit modest,
ways in which the United Nations can again
exercise its fundamental and indispensable
peacekeeping responsibilities. My Govern-
ment has noted with satisfaction that the Re-
public of Vietnam, one of the two principal
parties concerned, has exhibited a forthcoming
attitude toward the recommendations of the Se-
curity Council Mission.
These recommendations stem from the Se-
curity Council resolution of June 4, 1964
(S/5741)^ — a resolution which was passed in
response to a complaint brought before the
Council on an urgent basis by the Eoyal Govern-
ment of Cambodia. It has been, therefore, a
source of both surprise and regret to my Govern-
ment to note the attitude of the Royal Cam-
bodian Government toward the report of the
Security Council Mission. In addition to cast-
ing aspersions upon the independence, objectiv-
ity and impartiality of the members of the
Security Council Mission, the Royal Cambodian
Government has adopted an attitude toward the
report which argues, on the one hand, that the
Mission's recommendations are not responsive
to the Cambodian complaint and, on the other
hand, that the United Nations is not competent
to judge what steps can be taken to ameliorate a
situation brought to the Security Council by the
Cambodian Government itself. Faced with this
incongruous attitude of the Royal Cambodian
Government, my Government has been per-
plexed in its efforts to discern the motive be-
hind the Cambodian complaint to the Security
Council.
My Government has been surprised by a fur-
ther element of incongruity ; namely, despite its
contention that United Nations organs are not
competent to suggest remedial measures for the
unfortunate friction along the Cambodian-
Vietnamese border, the Royal Cambodian Gov-
ernment has continued to bring to the attention
of the Security Council charges of alleged viola-
tions of Cambodian territory or air space by the
armed forces of the Republic of Vietnam and
the United States. One of these charges con-
stitutes a very serious accusation to be leveled
against any covmtry. I am referring, of course,
to the Cambodian charge that the Republic of
Vietnam and my Goveniment have recently en-
gaged in chemical warfare against the civilian
pojDulation of Cambodia. This charge was
made in a cable to the Security Council Presi-
dent from the Cambodian Foreign Minister
(S/5839) and has been repeated elsewhere,
often with differing details.
My Government has repeatedly and categori-
cally denied this Cambodian charge,- as has the
Republic of Vietnam. Further, both my Gov-
ernment and the Republic of Vietnam have pro-
posed an impartial international investigation
of the Cambodian charge. The Royal Cambo-
dian Government has been unwilling to agree to
such an impartial investigation. A letter of
August 30 to the Security Council President
from Foreign Minister [Huot] Sambath, while
reasserting the charge, suggests that the request
for an impartial inquiry has come "too late" and
is "unacceptable under present circumstances"
(S/5940) . An earlier official Cambodian state-
ment, a communique from the Ministry of In-
formation on August 16, stated inter alia that
the assistance of "foreign bureaucrats" was not
necessary in countmg the number of victims of
the chemical warfare allegedly undertaken by
the Republic of Vietnam and my Government.
This, of course, was not what had been proposed.
The proposal was, rather, that a qualified inter-
national body be permitted to conduct an im-
partial inquiry into completely unsubstantiated
charges that many Cambodians died as a result
of poisonous chemicals spread over Caml)()dian
'■ For text, see Bulletin of June 29, 1964, p. 1004.
^ For texts of U.S. letters of Aug. 3 nud 14. see ibid.,
Aug. 24, 1964, p. 274, and Aug. 31, 1964, p. 319.
528
DEPARTMENT OF STATE BULLETIN
territory by the Eepublic of Vietnam and the
United States.
Although the reasons for tlie Cambodian at-
titude may not be clear, it is apparent that the
Koyal Cambodian Government is unwilling to
subject its charges to the scrutiny of impartial
investigation. In this connection, it is worth
particular note that two of the occasions on
wliich it is charged that South Vietnamese air-
craft dispersed poisonous chemicals over Cam-
bodian territory allegedly took place well before
the Security Council Mission had arrived in
Cambodia; another occasion allegedly took
place while the Mission was visiting the Repub-
lic of Vietnam. It is difficult to understand why
the Royal Cambodian Government did not bring
these alleged incidents to the attention of the
Security Council Mission wliile it was in the
area.
In conclusion, Mr. President, I wish to re-
iterate my Government's belief that the recom-
mendations in the report of the Security Coun-
cil Mission — assuming arrangements can be
agreed on for their implementation — represent
practical, although limited, steps by which the
United Nations can exercise its peacekeeping
responsibilities and contribute to a reduction of
tension in Southeast Asia. My Government
can only regret that the Royal Cambodian Gov-
ernment does not look upon these recommenda-
tions— which stemmed from its own urgent ap-
peal to the Security Council — in a similar light.
I should be grateful if you would have this
letter circulated as a Security Comicil docu-
ment.
Accept, Excellency, the renewed assurances of
my highest consideration.
Adlai E. Stevenson
Current U.N. Documents
Mimeographed or processed doeuments (such as those
listed beloir) may he consulted at depository libraries
in the United States. V.N. printed publications may
he purchased from the Sales Section of the United
Nations, United Nations Plaza, N.Y.
Security Council
The Cyprus Situation :
Letters to the President of the Security Council from
the representative of Cyprus. S/5914, August 25,
1964, 6 pp.; S/5925, September 1, 1964, 2 pp.;
S/5929, September 2, 1964, 2 pp. ; S/5963, Septem-
ber 11. 11HJ4. .'i pp.
Letters to the Secretary-General from the representa-
tive of Turkey. S/.'IOIS, August 26, 1964, 1 p.;
S/5917, August 27, 1964, 2 pp.; S/5931, Septem-
ber 3, 1964, 3 pp. ; S/5',)44. September 9, 1964, 1 p. ;
S/5958, September 11, 1964, 3 pp.
Report by the Secretary-General to the Security
Council on the financial situation in respect of the
United Nations peacekeeping operation in Cyprus,
as at August 27, 1964. S/5918. August 27,' 1964.
Ip.
Report by the Secretary-General to the Security
Council on the developing situation with regard
to the projected rotation of Turkish national troops
in Cyprus. S/5920. August 29, 1964. 3 pp.
Report by the Secretary-General on the United Na-
tions Operation in Cyprus. S/5950, September 10,
1964, 68 pp. ; 8/5950/ Add. 1, September 14, 1964,
maps showing deployment of UNFICYP, Septem-
ber 1964, and distribution of Turkish Cypriot
communities.
Note by the Secretary-General transmitting to the
Security Council a memorandum submitted to
him by the representative of Turkey on Septem-
ber 10. S/5954. September 10, 1964. 2 pp.
TREATY INFORMATION
Current Actions
MULTILATERAL
Atomic Energy
Agreement for the api^lication of safeguards by the
International Atomic Energy Agency to the bilateral
agreement between the United States and the Philip-
pines of July 27, 1955, as amended (TIAS 3316,
4515), concerning civil uses of atomic energy.
Signed at Vienna June 15 and September 18, 1964.
Enters into force on the date on which the Agency
accepts the initial inventory.
Signatures: International Atomic Energy Agency,
Philippines, United States.
Diplomatic Relations
Vienna convention on diplomatic relations ;
Optional protocol to Vienna convention on diplomatic
relations concerning compulsory settlement of dis-
putes.
Done at Vienna April 18, 1961. Entered into force
April 24, 19frl.'
Ratification deposited: United Kingdom, September
1, 19(>4.
Law of the Sea
Convention on the high seas. Done at Geneva .\pril 29,
1958. Entered into force September 30, 1962. TIAS
5200.
' Not in force for the United States.
OCTOBER 12, 1964
529
Ratification deposited: Dominican Republic, August
11, 1964.
Convention on the continental shelf. Pone at Geneva
April 29, 1958. Entered into force June 10, 1964.
TIAS -<-)78.
Ratiflcutixm deposited: Dominican Republic, August
11. 19G4.
Convention on fishing and conservation of Uving re-
sources of the high seas. Done at Geneva April 29,
Ratification deposited: Dominican Republic, August
11, 1964.
Satellite Communications System
Agreciueut e.stablishiiig interim arrangements for a
global commercial communications satellite system.
Done at Washington August 20, 1964. Entered into
force August 20, 1964. TIAS 5646.
Signature: Federal Republic of Germany, Septem-
ber 21, 1964.
Special agreement. Done at Washington August 20,
1964. Entered into force August 20, 1964. TIAS
5646.
Signature: Deutsche Bundespost for Federal Repub-
lic of Germany, September 21, 1964.
Telecommunications
International telecommunication convention with six
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tered into force January 1, 1961. TIAS 4892.
Ratification deposited: Burma, August 3, 1964.
BILATERAL
Canada
Agreement relating to the construction of a Loran-C
Station and its Associated Monitor Control Station
in Newfoundland. Effected by exchange of notes at
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September 16, 1964.
Dominican Republic
Cooperative mapping, charting and geodesy agreement.
Signed at Santo Domingo August 28, 1964. Entered
into force August 28, 1964.
India
Agreement amending the agreement concerning trade
in cotton textiles of April 15, 1904 (TIAS 5559).
Effected by exchange of notes at Washington Sep-
tember 15, 1964. Entered into force September 15,
1964.
Norway
Agreement amending annex C of the mutual defense
assistance agreement of January 27, 19.50 (TIAS
2016). Effected by exchange of notes at Oslo Au-
gust 25 and September 2, 19C4. Entered into force
September 2, 1964.
Sweden
Convention supplementing convention and protocol for
avoidance of double taxation and establishment of
rules of reciprocal administrative assistance in
income and other taxes of March 23, 1939 (.54 Stat.
1759). Signed at Stockholm October 22, 1963. En-
tered into force September 11, 1964.
Proclaimed hij the President: September IS, 1964.
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Agricultural Commodities. Agreement with Senegal —
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agreement of April 3, 1956. Exchange of notes —
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530
DEPARTMENT OF ST.VTE BULLETIII
INDEX October 12, 196^ Vol. LI, No. 1320
Africa. Freedom and Development (Busk) . . 498
Atomic Energy
Nuclear Energy for the Benefit of Man (Sea-
borg) 519
Senate Confirms Nominations to IAEA General
Conference 520
Cambodia. U.S. Comments on U.N. Mission's
Cambodia-Viet-Xam Report (Stevenson) . . 527
Canada
President Johnson Proclaims Columbia River
Treaty (text of proclamation) 507
U.S. and Canada Hold Columbia River Treaty
Ceremonies (Johnson, Pearson, exchange of
notes) 504
Congress
President Reports on Oi>eration of Trade Agree-
ments Program (Johnson) 516
Senate Confirms Nominations to IAEA General
Conference 520
Disarmament. Eighteen-Nation Disarmament
Committee Rece-sses 19t>4 Session (Foster,
Johu.son) 524
Economic Affairs
President Reports on Operation of Trade Agree-
ments Program (Johnson) 516
Technical Representatives Named for Trade Ne-
gotiations 517
U.S. and Hong Kong Announce Cotton Textile
Agreement 517
Hong Kong. U.S. and Hong Kong Announce
Cotton Textile Agreement 517
International Organizations and Conferences
Eightet'u-Xation Disarmament Committee Re-
cesses 1964 Session (Foster, Jolinson) . . . 524
Nuclear Energy for the Benefit of Man (Sea-
borg) 519
Senate Confirms Nominations to IAEA General
Conference 520
Malta. President Congratulates Malta on In-
deiieudence (text of letter) 503
Presidential Documents
Eighteen-Xation Disarmament Committee Re-
cesses 1964 Session 524
President Congratulates Malta on Independ-
ence 503
President Johnson Proclaims Columbia River
Treaty 507
President Reports on Operation of Trade Agree-
ments Program 516
U.S. and Canada Hold Coliunbia River Treaty
Ceremonies 504
Publications. Recent Releases 530
Treaty Information
Current Actions 529
President Johnson Proclaims Columbia River
Treaty (text of proclamation) .507
U.S. and Canada Hold Columbia River Treaty
Ceremonies (Johnson, Pearson, exchange of
notes) 504
U.S. and Hong Kong Announce Cotton Textile
Agreement 517
United Nations
Current U.X. Documents 529
U.S. Comments on U.N. Mission's Cambodia-Viet-
X'am Reix)rt (Stevenson) 527
Viet-Nam. U.S. Comments on U.N. Mission's
Cambodia-Viet-Nam Report (Stevenson) . . 527
Name Index
Foster, William C 524
Hefner, Frank K 520
Johnson, President 503, 504, 507, 516, 524
Palfrey, John Gorham 520
Peanson, Lester B 504
Raraey, James T 520
Rusk, Secretary 498
Seaborg, Glenn T 519,520
Smyth, Henry DeWolf 520
Stevenson, Adlai E 527
Tape, Gerald F 520
Check List of Department of State
Press Releases: September 21-27
Press releases may be obtainetl from the OfBce
of News, Department of State, Washington,
D.C., 20.120.
No. Date Sabject
*410 9/21 U.S. participation in international
conferences.
t412 9/21 Mann : "The Western Hemisphere's
Fight for Freedom."
t413 9/23 Mann : "The Alliance for Progress :
A Challenge and an OpiK)rtunity."
414 9/23 Cotton textile agreement with Hong
Kong.
415 9/25 Rusk: "Freedom and Development."
*416 9/25 Program for visit of NATO Secre-
tary General.
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CITT, STATE
THE OFFICIAL WEEKLY RECORD OF UNITED STATES FOREIGN POLICY
THE
DEPARTMENT
OF
STATE
BULLETIN
Yol. LI, No. 1321
'ml
October 19, 1964
CEREMONY AT MEXICAN BORDER MARKS SETTLEMENT
OF CHAJMIZAL DISPUTE
Address hy President Johnson 54S
PRESIDENT JOHNSON PROCLAIMS 1965 AS INTERNATIONAL
COOPERATION YEAR
Remarks hy President Johnson and Secretary Busk
aTid Text of Proclamation 555
THE WESTERN HEMISPHERE'S FIGHT FOR FREEDOM
iy Assistant Secretary Mann 51i9
PROGRESS AND PROBLEMS IN EAST ASIA: AN AilERICAN VIEWPOINT
hy Assistant Secretary Bundy 534
For index see inside hack cover
Progress and Problems in East Asia: An American Viewpoint
by William P. Bundy
Assistant Secretary for Far Eastern Affairs ^
I am pleased and honored to have been in-
vited to address this distinguished gathering.
The research, analyses, and public information
activities of the Eesearch Institute of Jajjan,
mider the able leadership of Mr. [Saiji]
Hasegawa, have made a notable contribution to
international understanding in Japan and thus
to the strengthening of Japan's free- world ties.
Your institute has often provided a forum m
which the views of your countrymen and mine
could be forthrightly stated iii the interests of
closer understanding. It is with this in mind
that I would like to speak to you today about
East Asia, its progress and its problems, as we
in America see them today.
Five Basic Elements of U.S. Policy
Secretary of State Dean Rusk recently set
forth the five basic elements of our foreign
' Address made before the Research Institute of
Japan at Tokyo on Sept. 29 (press release 422).
policy. They apply fully in East Asia and are,
I think, shared by Japan and by other free na-
tions of the area. I should like to use them as
the outliiie of my remarks today :
1. Security through strength — the efforts of
individual free- world nations, supported where
necessary by external military assistance, and
backed by th& strategic nuclear power of the
United States — which we earnestly hope we
shall never need to use — and by our greatly im-
proved and far more mobile conventional and
counterguerrilla forces.
2. Progress through partnershii^ — the closer
association of the more industrialized nations of
Western Europe, North America, and Asia —
specifically Japan — both in strengthening their
own economic ties and in working together to
assist the less industrialized nations of the free
world.
3. Revolution in freedom — harnessing the
great and potentially constructive forces of na-
tionalism and carrying out the revolution of
DEPARTMENT OF STATE BULLETIN VOL. LI, NO. 1321 PUBLICATION 7744 OCTOBER 19, 1964
The Department of State Bulletin, a
weekly publication issued by the Office
of Media Servlcea, Bureau of Public Af-
fairs, provides the public and Interested
agencies of the Oovemment with infor-
mation on developments in the field of
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Department of State and the Poreigrn
Service. The Bulletin Includes selected
press releases on foreign policy, Issued
hv 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 Depart-
ment, as well as special articles on vari-
ous phases of international affairs and
the functions of the Department. Infor-
mation Is Included concerning treaties
and international agreements to which
the Dnlted States is or may become a
party and treaties of general inter-
national Interest.
Publications of the Department, Dnlted
Nations documents, and legislative mate-
rial In the field of international relations
are listed currently.
The Bulletin is for sale by the Super-
intendent of Documents, D.S. Govern-
ment Printing Office. Washington, DC,
20402. Price : 52 issues, domestic ?10,
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Use of funds for printing of this pub-
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Bureau of the Budget (January 19,
1961).
NOTE : Contents of this publication are
not copyrighted and Items contained
herein may be reprinted. Citation of the
Department of State BuUetIn as the
source will be appreciated. The Bulletin
is indeied in the Readers' Guide to
Periodical Literature.
534
DEPARTMENT OF STATE BtJLLETIN
modernization without sacrifice of independence
and freedom.
4. Community under law — tlie gradual emer-
gence of a genuine world community based on
cooperation and law, through the establishment
and development of sucli organs as the United
Nations, the World Court, tlie World Bank and
Monetary Fund, and other global and regional
institutions.
5. Tlirough perseverance, peace — no goal is
more important than peace to the American
people.
Coping With the Communist Threat
All of these objectives stand squarely in the
way of communism's goal of recasting the world
in its ovm image. A central task of our for-
eign policy is, thus, to cope with the Commu-
nist threat — particularly that of Coirmiunist
China — while at the same time working in posi-
tive terms to promote the economic, social, and
political progress of the free nations.
Communist China's foreign policy is fash-
ioned by men whose whole life has been one of
struggle, who are thoroughly wedded to a fun-
damentalist concept of communism, who have
grown rigid and intransigent even in the face of
overwhelming proof that the 19th-century doc-
trines of Karl Marx are hopelessly inadequate to
meet the 20th-century problems of China. Mon-
umentally convinced of the correctness of their
position, they view all who disagree with them,
including even the Russians, as old and bad and
decadent. Neutralists are tolerated only to the
extent that they are moving in the direction de-
sired by Peiping.
I do not claim to know what their precise
goals are. Are these goals to be defined in ter-
ritorial terms, and, if so, what territories? Or
could their goals be better described in terms of
tlieir quest for power and status and of gaining
control and influence over other nations? Or
are their goals directed more at exploiting the
divisions and the difficulties of the countries of
the free world, especially those in bordering
areas? I suspect that all these and other ele-
ments are involved. But in any event the rec-
ord of Communist China's behavior in recent
years — against the offshore islands, Tibet, and
India — should leave us in no doubt of her mili-
tant and expansionist outlook.
More recently we have evidence in the con-
tinuing statements of Chinese Communist
leaders, expressed most forcefully in the course
of their ideological dispute with the Soviet
Union. They say (as in their June 14, 1964,
letter to the Soviet Communist Party) that
"two-thirds of the world's population need to
make revolution." They add that the revolu-
tion must be violent: "Violent revolution is a
universal law of proletarian revolution. To
realize the transition to socialism the proletariat
must wage armed struggle, smash the old state
machine, and establish the dictatorship of the
proletariat."
Now it may be argued that the leaders of Com-
munist China do not really mean all that they
say, but I think it is a good rule of thumb to
believe most of what dictators say about their
intentions.
Finally, we should note that the severest in-
dictments of Chinese Communist bellicosity
come from the Soviet Union itself, and, because
of the close relationship that until recently
marked Moscow-Peiping affairs, the Soviet
Union may be in a good position to judge what
Communist Cliina is up to.
To say that Communist China is fundamen-
tally militant is not inconsistent with the view
that she may be tactically cautious when con-
fronted with major force. Unquestionably our
United States strategic and conventional capa-
bilities, supplementing the efforts of free Asian
nations, have made Communist China reluctant
to embark on the older fomis of naked aggi-es-
sion. Instead they prefer what Premier Khru-
shchev has called "wars of national liberation" —
support to guerrillas, training of saboteurs, and
the creation of Communist-dominated "national
fronts." Fortunately Japan and other coun-
tries with internal stability and strength are not
susceptible to this type of aggression.
I do not say that this will always be the pic-
ture of the policy of the Asian Communist na-
tions. They confront tremendous internal
problems. Like Communist countries every-
where they have not yet foimd the answer to the
basic problem of agricultural production, much
less of carrying out a true industrial or scientific
OCTOBER 19. 1964
535
revolution along the lines on which you in Japan
have led the way. If their leaders were reason-
able, or even pragmatic, the Conununist nations
of Asia should recognize that they cannot afford
to embark on outside adventures that draw upon
resources so urgently needed at home.
Thus we do not rule out the possibility that
the passage of time will bring about desirable
changes in the outlook of Communist China,
North Korea, and North Viet-Nam. But
clearly this cannot come about unless Commu-
nist expansionism is deterred and completely
frustrated and unless, too, the conduct of all our
relationships with Communist China gives her
no encouragement that a continued militant
course can be accepted.
So long as Peiping, as well as Hanoi and
Pyongyang, continue on their present course, I
see no basic change in United States policy to-
ward mainland China. It is inconceivable to
me that, at a time when Communist China is
stridently proclaiming a militant revolution-
ary thesis and bearing out its threats with ac-
tions that undermine the security of nations
both in Asia and Africa and even in the Amer-
icas, we should relax our guard. It remains
the first requirement of our policy to help main-
tain adequate free-world military strength in
order to deter aggression or, where aggression
or threats to the peace occur, to be able to cope
with such threats effectively. Without such ca-
pability to keep the peace, there can be no peace.
Nor can there be any real progress in improving
the well-being and satisfying the aspirations of
the people in Asia. From this general policy
there follow a number of specific applications
that bear on the relations between Japan and
the United States :
1. We believe that the Treaty of Mutual Co-
operation and Security ^ concluded between us
in 19G0 still remains fundamental to our com-
mon security. The very fact that we have never
needed to invoke the treaty in defense against
an attack is proof of its worth. There are
those who, for one reason or another, would like
to see our defensive arrangements altered or
terminated. Admittedly it would be to our ad-
vantage if Japan's security could be assured
without the enormous drain of money and man-
power which the maintenance of our bases here
involves. But so long as Japan's Commmiist
neighbors openly proclaim their desire to impose
their own economic and political system upon
the rest of Asia, our mutual security arrange-
ments would seem essential and the United
States will continue to cooperate with the Japa-
nese people in the defense of Japan.
We believe that the presence of our men here
gives credibility to our pledge to defend Japan
in a way that no mere commitment on paper
could achieve. We do not, in short, see any
need to alter the fimdamental concept of our
existing security arrangements until there is real
evidence that the threat of aggression has dis-
appeared from the Far East.
2. The importance of Okinawa to the security
of East Asia remains imchanged. In his state-
ment of March 1962 President Kennedy set
forth United States policies for the Eyukyus,*
which remain unchanged under President Jolm-
son. In that statement, you will recall. Presi-
dent Kennedy reaffirmed the importance the
United States attaches to our military bases in
the Ryukyus. He went on to say that he rec-
ognized the Ryukyus to be a part of the Japa-
nese homeland and looked forward to the day
when the security interests of the free world
will permit their restoration to full Japanese
sovereignty. He then outlined several courses
of action to increase the autonomy granted to
the Ryukyuan people, to improve their well-
being, and to enhance the cooperation of Japan
and America in programs of assistance to the
islands. Two new jomt committees have re-
cently been set up to implement this latter pur-
pose, and it has been made clear that these
committees are only a beginning step, not a
limiting boundary.* I feel confident that the
cooperation between Japan and the United
States in the Ryukyu Islands will permit the
continuance of the essential role of the islands
in free-world defense and at the same time will
' For text, sec Bulletin of Feb. 8, lOGO, p. 184.
" For text of a stateuient by President Kennedy on
the occasion of his siKning of an amendment to Execu-
tive Order 1071.% relating to the administration of the
Ryukyu Islands, see White House press release dated
Mar. 19, 1962.
* Bulletin of May 11, 1964, p. 753.
536
DEPABTlEEJfT OF STATE BULLETIN
contribute to the welfare of the people and to
the solidarity of relations between our two
countries.
As you know, our new High Commissioner in
the Ryukyus, General [Albert] Watson, was
able to visit Japan on his way to take up his
post in Okinawa and had higlily profitable dis-
cussions witli the leaders of your Government.
We expect to stay in close touch with the Gov-
eriunent of Japan on this matter and to con-
tinue to work toward the objectives laid down
by President Kennedy.
3. We continue to believe that the security
of South Korea is essential to the security of
Japan. We will continue to support the re-
quired level of the Armed Forces of the Repub-
lic of Korea, and these, supplemented by our
own forces, will be maintained at a level ade-
quate to prevent repetition from any quarter of
the attack of 1950. Concurrently, we continue
to attach fundamental importance to the eco-
nomic development and welfare of the Republic
of Korea as an integral part of its security and
of that of Japan and the United States as well.
4. With regard to your own defense effort
here in Japan, our grant military assistance
is now naturally drawing to a close and is now
represented by our cooperative efforts particu-
larly in the field of air defense and teclmical
equipment for your naval self-defense forces.
It is natural and inevitable that Japan should
assume the burden of her own defense to an
increasing degree, but at the same time we wel-
come the continuing consultation made possible
by our close and cooperative relationships under
the treaty.
5. We recognize the profound implications
of the Sino-Soviet rift and the possibility that
it may lead to greater tension between the
U.S.S.R. and Communist China in the northern
regions. But we doubt that the U.S.S.R. has
yet abandoned her Communist expansionist
aims, and certainly not to the point where in
the foreseeable future she could be relied upon
to play a constructive role in assisting other
nations to defend themselves against Commu-
nist China. There may be a long-term hope in
this direction, but let us recognize always that
the differences between the U.S.S.R. and Com-
munist China are still concerned primarily not
with their basic objectives but rather with the
degree of violence to be employed to achieve
those objectives. And let us recognize too that,
to the extent that Soviet policy has changed or
may change in the future, this will be in large
part due to the fact that we, in partnership with
other free-world nations, have maintained a
military posture adequate to deter and to defeat
any aggressive action.
A word further about the situation in South-
east Asia, especially in South Viet- Nam. Here
the aim of our policy is to assist the Government
of South Viet- Nam in maintaining its independ-
ence and its control over the territory allotted
to it by the Geneva accords of 1954. We do not
aim at overthrowing the Communist regime of
North Viet-Nam but rather at inducing it to
call off the war it directs and supports in South
Viet-Nam.
We believe it essential to the interests of the
free world that South Viet-Nam not be per-
mitted to fall under Communist control. If it
does, then the rest of Southeast Asia will be
in grave danger of progressively disappearing
beliind the Bamboo Curtain and other Asian
coimtries like India and even in time Australia
and your own nation in turn will be threatened.
If Hanoi and Peiping prevail in Viet-Nam in
this key test of the new Communist tactics of
"wars of national liberation," then the Commu-
nists will use this technique with growing fre-
quency elsewhere in Asia, Africa, and Latin
Amei-ica.
To prevent a Communist takeover we are
pursuing within South Viet-Nam a counterin-
surgency approach — involving economic and
political measures quite as much as military —
similar to that which was successfully used to
defeat Commimist rebellions in Malaya and the
Philippines. Some have urged neutralization,
but the Communist Party in North Viet-Nam
has specifically rejected such a solution for that
area. Neutralization of South Viet-Nam alone
would, therefore, simply be a step toward a
Communist takeover, as the Communists them-
selves know in pushing it as an interim course
for South Viet-Nam. Negotiations would
serve no purpose as long as Hanoi and Peiping
disregard the agreements they signed in 1954
OCTOBER 19, 1964
537
and 1962 on Viet-Nam' and Laos.« Expansion
of the war outside South Viet-Nam, while not
a course we want or seek, could be forced upon
us by the increased external pressures of the
Communists, including a rising scale of infiltra-
tion.
The present situation in South Viet-Nam is
difficult. No new nation has ever had a harder
task— to build and maintain a stable government
and at the same time to ward off a highly sophis-
ticated and intensive subversive effort backed by
substantial military force but focusing pri-
marily on the very apparatus of government
itself. It is no wonder that South Viet-Nam
has had difficulty in coping with these twin
problems.
We have welcomed the recent action of your
Government in making a substantial increase in
its economic assistance to South Viet-Nam. We
for our part are determined to go on doing
everything we usefully can to assist that
Government.
In sliort, our resolve to help defend the na-
tions of Southeast Asia, and of East Asia as a
whole, is unshakable. President Johnson put
it quita simply in his first speech last Novem-
ber— in that hour of tragic loss: ". . . let all
the world know and none misunderstand that
I rededicate this Government ... to the honor-
able and determined execution of our conunit-
ments to our allies. . . ." ^
Need for Economic and Social Progress
But I do not want to leave the impression
that we regard communism as the only major
problem facing Asia. Security is fundamental.
But economic and social progress remains an
equally important need for the welfare of na-
tions and of the individuals who must always
be our primary concern.
The headlines in the newspapers today some-
times create the impression that the whole of
East Asia is in turmoil. It is true that we face
serious problems in Southeast Asia todaj', but
"For texts, see American Foreign Policy. 1!)')0-I9')'):
Basic Documents, vol. I (Department of State publica-
tion (U4r>), p. 7r>o.
"For text, see BuLurriN of \vv^. 13, liK)2, p. 2'M.
' Ibid., Dec. IG, l!)(i3, j). !>10.
we faced at least equally serious ones 10 years
ago after Dien Bien Phu, when the Iluks were
still active hi the Philippmes, and the jungle
insurgents were in Malaya. Problems and dan-
gers are always with us. They are a fact of life
in our rapidly changing world.
Meanwhile, over the past several decades
there has been progress in the Far East of a
slow, steady, unsensational kind which will, I
firmly believe, have far more long-range signifi-
cance than the problems with which we are so
deeply concerned today. In most of the coun-
tries of free Asia there has been a notable de-
gree of improvement in what the economists call
"human resources" but what I still like to call
"people." People are, by and large, healthier.
They are better educated. They live longer.
Students have far more opportunities for ad-
vanced and specialized studies at home and
abroad.
Within the last 15 years there have been some
remarkable success stories — Japan, the Re-
public of China, and, despite some remaining
weaknesses, the Republic of Korea, the Philip-
pines, Thailand, and even South Viet-Nam in
the 1954-59 period.
Undoubtedly, however, Japan has provided
the outstanding example of progress during the
past 10 years. Tliis progress extends well be-
yond the material things of life, beyond the
economic growth wliich has surpassed that of
any other nation in the postwar era. Japan's
progress has also been in the arts, in health,
education, and broadening intellectual horizons
in all directions.
The United States has ties of friendship, con-
fidence, and nuitual interest with many Far
Eastern countries but none of which we are
prouder and which we cherish more than those
with Japan. Our friendship began long before
the war, survived the war, and is now almost
unique between two great nations of different
historical and cultural background.
Inevitably, in view of the breadth of our re-
lations, we have problems. Sometimes United
States actions run counter to what Japan con-
siders its best interests. But neither of us, be-
cause of this reality of intemational life, loses
sight of the larger picture of our common de-
votion to a world of freedom under law, of
538
DEl'AUTMENT OF STATE BULLETIN
our vast and steadily growing trade, of our
vital mutual security ties, and of our proven
friendship. I have not the slightest doubt, as
I hope that you do not, that the negotiation
process, with each side taking account of tlie
other's views, is simplj' an outwai'd expression
of this status.
The Tolcyo Olympics, for which you have
prepared so well, have focused world attention
on Japanese endeavors in still another field.
The people of America look forward eagerly
to watching telecasts of the Olympics via Syn-
com III, a triumph of U.S. -Japanese coopera-
tion.
Aiding the Developing Nations
But we must look beyond the tremendous
progi-ess that has been made in the reconstruc-
tion and development of the more industrialized
nations and in our growing common bonds.
The other part of the common task before us
is the lielp the industrialized nations must give
to tliose in less advanced stages of progress.
Ten years ago we heard much about the revo-
lution of so-called "rising expectations," about
economic breakthroughs and claims that indus-
trialization and modernization could be achieved
in a relatively short period of time. Since then
people have learned progress is a good deal
more difficult than they had thought. Cer-
tainly there is nothing automatic in the process,
even given hard work and outside support. No
doubt this has been accompanied by a feeling
of letdown, but in the long run it is a healthy
thing that aspirations be tempered with reality.
It is well that we learn now, rather than later,
that there are no shortcuts to modernization,
that nation-building cannot be achieved by
sleight of hand and by mere hope.
Basic to any nation's successful gTowth is
success in primary production — that is, in agri-
culture, in social reforms, in the spread of edu-
cation, and, above all, in hard work sustained
over the long period required for significant
progress. At the same time we must recognize
that giving aid to developing nations is a mat-
ter of enlightened self-interest. The aid given
by ourselves and others must be used wisely.
In this effort, too, Japan is now a full ):)artner.
Together with other industrialized nations the
United States has welcomed the recent acces-
sion of Japan to the Organization for Economic
Cooperation and Development. We know that
Japan must rightfully play a leading part in
that organization.
I might say again that I noted with consid-
erable interest and enthusiasm the point made
by Foreign Minister [Etsusaburo] Shiina last
Thursday, in which he stated that the relations
between the United States and Japan have now
entered a new phase of interdependence and
shared responsibilities. We have long felt that
Japan has a major role to play not only in Asia
but on tiie world scene, and we welcome her
moves toward assuming the responsibilities to
which her great energy, skill, and resources en-
title her. Solution of the Asian problems I
have mentioned today is an immediate and vital
matter for Japan. It is within Japan's power
now to contribute to the creation of a stable,
peaceful, and prosperous Asia througli her vast
array of technical competence and through her
experiences in rapid modernization.
The United States, Japan, and other mem-
bers of GATT [General Agreement on TariflFs
and Ti-ade] have considered measures for the
expansion of trade with and between the devel-
oping countries. Japan is aware of the difficul-
ties: Since 1960 Japan's total trade increased
40 percent while its trade with developing coun-
tries rose by less than 25 percent. We need to
continue our exploration of ways that trade
policies in combination with technical and de-
velopment assistance can help to support rising
national income and living standards in develop-
ing countries in Asia.
It is even more in your interest than ours, I
believe, to insui-e that Asia be composed of free
and friendly trading partners. It would be
more of a blow in the long run to Japan than to
the United States if her smaller Asian neighbors
should fall under the dark shadow of militant
communism. I am gratified that so many peo-
ple in Japan are fully aware of this fact and
tliat Japan today faces the difficult problem of
her relationship with the Communist countries
not, as some critics claim, on the basis of defer-
ence to American wishes but on the basis of a
realistic appraisal of her own interests and
responsibilities. It is also gratifying to note
OCTOBER 19, 19G4
539
that Japan continues to place great importance
on its relations with the Government of the
Eepublic of China and on trade with Taiwan.
At a time when Japan's total credit resources
remain limited, it is also worthy of note that
there is a growing awareness in Japan that it
is in Japan's own interests to direct its credit
resources to the countries of the free world
which have a long-range intent and capability
of being trading partners with Japan.
Regional Cooperation
A third aspect of economic and social progress
is the heartening development of regional co-
operation in various forms, apart from purely
political collaboration or defensive arrange-
ments. The Colombo Plan, ECAFE [U.N.
Economic Commission for the Far East],
SEATO [Southeast Asia Treaty Organization]
economic efforts, the Asian Productivity Orga-
nization, and bilateral efforts of various kinds
have made positive contributions to the collec-
tive welfare of the area in a way that had not
been even dimly conceived a generation ago.
By way of example, I might cite the Mekong
Coordination Committee, tlie SEATO Grad-
uate School of Engineering in Bangkok, the
SEATO-planned meteorological and aeronauti-
cal telecommunications network between Bang-
kok and Manila, and the construction of the
Asian highway from the Turkish border to
Saigon.
Besides this type of developing effort., in-
creasing regional trade and cultural exchange
has been a characteristic of the overall progress
of East Asia. Even more spectacular has been
the growth of student exchange both with other
nations and within the region. This j'ear nearly
22,000 students from East and Southeast Asia
are attending American institutions of learning.
Several thousands more are studying in the
major nations of non-Communist Europe.
Many of these young people now studying
abroad will be tomorrow's leaders, and already
they have begun to move up into positions of
responsibility and to apply the skills they have
learned.
Japan, too, has been active for a number of
years in the student exchange field. I note that
in May 1962 the overwhelming majority of the
5,770 foreign students in Japan were from
Asian countries. This number, which has con-
tinued to grow since that time, does not include
United States-assisted training of technicians
from third countries, a progi-am that recognizes
Japan's vast potential as a center of technical
know-how for export to all Asia.
Also over the past decade there have been
an increasing number of international gather-
ings among business and professional groups,
among scientists and educators, all of whom
have been drawn together by the bonds of com-
mon and professional interests. Wlio can say
what these contacts and meetings have produced
in the way of wider understanding? Wlio can
say to what extent the foundations are being
laid for greater regional unity ?
We can all take satisfaction from these ex-
amples of cooperation among neighbors in Asia,
but we cannot overlook the need for expanding
such cooperation. The security of others has
an important bearing on the security of each of
us, and this is especially evident in the close re-
lationship between Japan and the Republic of
Korea. As a great power Japan bears special
responsibilities to settle outstanding problems
with its smaller and heavily burdened neighbor.
The Republic of Korea stands as a bulwark
against the forces of aggression that threaten the
peace of the Far Eixst, and the situation of
Japan is vitally connected with the ability of
the Korean people to maintain their independ-
ence and to develop a strong and prosperous
economy. A normalization of relations be-
tween these two great countries would be an im-
portant contribution to the cause of peace in
Asia. I loiow that the leaders of Japan and of
the Republic of Korea have devoted much
thought and effort to the solution of tliis prob-
lem, and I wish them all success in this under-
taking. I shall be traveling to Seoul in a few
days and will express this same thought to our
friends there.^
Nationalism and tlie Community of Law
I come next to the closely related points
stated by Secretaiy Rusk — of revolution in free-
dom and community under law — as they relate |
to East Asia.
8 See p. 542.
540
DEPARTMENT OF STATE BULLETIN
Tlie first of these is really the channeling of
the nationalist upsurge in the newly independ-
ent non-Communist countries of East Asia.
They seek to assure their complete independence
from outside domination and control and to as-
sert their identity as individual nations and spe-
cifically as Asian nations. These desires are
wholly natural, and it is natural too that these
new nations should seek to develop wholly new
relationships with the Western nations that once
dominated them.
Constructively channeled, nationalism can be
not only the best guarantor of national unity
and independence but can release the energies
and animate the sense of purpose wliich are so
essential to a nation's drive toward moderniza-
tion. Misdirected, it creates strife between
nations and retards internal progress by divert-
ing attention from essential constructive tasks
to corrosive emotional issues. We admire the
nations that demonstrate the self-respect and
will to improve their destinies. We under-
stand their feelings toward colonialism, having
once been colonies ourselves. We would like to
help where we can and where we are mvited.
We have little sympathy, though, with the
senseless kind of "anticolonialism" which is
stirred up for its own sake, long after the threat
of colonialism has disappeared from the Asian
scene. Normal relationships with the so-called
older countries are clearly a prerequisite to the
type of development and progress the new coun-
tries seek.
There is also an increasing disposition on the
part of the newer nations to settle their prob-
lems amongst themselves their own way. This
too is as it should be. Because nationalism
burns so high in Asia today, it is clear that our
diplomatic efforts must be redoubled toward
avoiding dangerous confrontations and toward
healing international differences. I do not
quarrel with those who advocate Asian solutions
for Asian problems. The task of an outside
peacemaker is a rather thankless one, and there
is no profit in becoming a diplomatic clearing-
house for other nations' problems. But we are
prepared to do our part, particularly when
called upon to promote the cause of progress and
peace with justice.
There are those on the world scene today who
say that there are just wars or who would con-
done the use of force in mternational relations
outside the framework of the United Nations
Charter. Such practices may have been toler-
able in the past, although they were never praise-
worthy. But in today's world the danger of the
conflict spreading and the nature of modern
weapons alone make any resort to the use of
force far more dangerous than in the past.
None of us can condone its use today, whether by
a Communist or any other country.
And this is part of the community of law to
which we must be moving if mankind is to
survive. Change there will be; change there
must be. But it must come through evolu-
tionary channels and through the settlement of
outstanding differences rather than by the out-
moded methods of conflict and aggression.
Through Perseverance, Peace
And so I come to the last of Secretary Rusk's
points — through perseverance, peace. As we
look at what has happened in East Asia in the
last decade, we can I think take enormous com-
fort from the tremendous strides that have been
made where nations have been left alone to pur-
sue their national destinies in their own way.
We in the United States have been proud to
play a major part in assisting in the secuiity and
progress of the free nations of East Asia. We
believe that the policies that we have all de-
veloped in common over the last decade are
sound. I am happy to say that in my country
these policies have a solid bi^Dartisan
foundation.
In conclusion let me say that I do not believe
that man will allow himself to be regimented
and subjected to an inhuman philosophy. Con-
formity, regimentation, obliteration of individ-
uality, and restraints on freedom are contrary to
man's own nature. Perhaps because we are a
nation made up of peoples drawn from the four
corners of the earth, we believe all the more in
a world safe for diversity. Perhaps because we
are a nation whose founders came to our shores
seeking freedom, we believe all the more in pre-
serving freedom for all. But we seek diversity,
not divisiveness. We seek liberty, not license.
For the new nations of Asia, building societies
out of many divergent elements is extremely
OCTOBER 19, 19G4
541
difficult. It is not for us to decide just how
this task can be accomplished. But where free
nations look for our help, it is our opportunity
to be of assistance to them. In lending a helping
hand we have no ulterior motives other than
promoting their security, which is our security,
their well-being, which is our well-being, and
moving toward the realization of their hopes
and aspirations, which are also ours.
United States and Korea Reaffirm
Policy of Cooperation
William P. Bundy, Assistant Secretary of
State for Far Eastern Affairs, visited at Seoul,
Korea, October 2 and 3. Folloioing is the text
of a joint statement released at Seoul on Octo-
ber 3 at the conclusion of talks betioeen Mr.
Bundy and Korean Foreign Minister Lee Tong
Won.
Foreign Minister Lee Tong Won of the Re-
public of Korea and Mr. William P. Bundy,
Assistant Secretary of State for Far Eastern
Affairs, met today and exchanged views on mat-
ters of mutual concern to the Govenunents of
both countries. They reaffirmed the friendship
between their two countries and pledged their
Governments to continued cooperation in the
common interest.
1. They reviewed the results of the meeting
held on August 17 between Foreign Minister
Lee and Ambassador Brown, and reaffirmed the
contents of the statement ^ released following
that meeting.
2. Mr. Bundy expressed his Go^'ermnent's
support for the efforts of the Korean people
and Government to maintain constitutional in-
stitutions and democratic processes. He also
paid tribute to the people and the Government
of Korea for their contribution to the collective
security of the free world and the solidarity of
free nations in the Far East.
3. The Foreign Minister recounted recent de-
velopments with regard to relations between the
Republic of Korea and Japan. The Foreign
Minister and Mr. Bundy agreed that normaliza-
' Not printed here.
tion of relations between Korea and Japan
would be an important contribution to the cause
of peace in Asia and expressed the hope that
public opinion in Korea on this matter would
recognize the national interest on a suprapar-
tisan basis. They expressed the hope that nego-
tiations for normalization of those relations
could be resumed at an early date. Mr. Bundy
repeated earlier U.S. expressions of willingness
to assist in appropriate ways to bring about a
successful conclusion of this longstanding
problem.
4. Mr. Bimdy reiterated assurances given
previously that the basic policy of the United
States Gov^emment of extending military and
economic aid to Korea would be continued after
the normalization of relations between Korea
and Japan. It was agreed that cooperation be-
tween Korea and the United States will con-
tinue to be directed toward maintaining
Korea's security and independence, promoting
a self-supporting economy, balanced economic
growth, and financial stability.
5. The Foreign Minister and Mr. Bundy ex-
changed views with respect to the military as-
sistance program. It was agreed that the re-
quirements for military assistance would be
periodically reviewed and that the United
States will continue to give careful considera-
tion to the Korean Government's needs and
views in this regard.
U.S. Comments on Peiping's
Nuclear Capacity
Statement by Secretan^ Rush
Press release 423 dated September 29
For some time it has been known that the
Chinese Communists were approaching the
point M-here they might be able to detonate a
first nuclear device. Such an explosion might
occur in the near future. If it does occur, we
shall know about it and will make the informa-
tion public.
It has been known since the 1950's that the
Chinese Communists have been working to
develop a nuclear device. Tliey not only failed
542
DEl'.VRTMENT OF STATK BULLETIN
to si<!:n but strongly opposed the nuclear test
ban treaty which has been signed by over 100
countries. The detonation of a first device does
not mean a stockpile of nuclear weapons and
the presence of modern deli\-ery systems. The
United States has fully anticipated the possi-
bility of Pei ping's entry into the nuclear weap-
ons field and has taken it into full account in
determining our military posture and our own
nuclear weapons program. We would deplore
atmospheric testing in the face of serious efforts
made by almost all other nations to protect the
atmosphere from further contamination and to
begin to put limitations upon a spiraling arms
race.
Four Principles of American
Foreign Policy
Remarks iy President Johnson ^
I am delighted to have a chance to meet briefly
with you gentlemen and to thank you for under-
taking to sei"ve as members of a panel of private
citizens to work with us in the quest for peace.
You gentlemen sj^mbolize a tradition which
goes back for a quarter of a centuiy — the tradi-
tion of nonpartisan service on matters of war
and peace. I see Democrats who have served
in Republican administrations, Republicans
who have served with Democratic administra-
tions, and a number of men who have held office
under both parties. And these party affilia-
tions really don't matter veiy much compared
to the common concern and the great operating
principles of our American foreign policy.
There are four of these principles, and you
gentlemen have worked for all four of them :
The frsf is that the United States must be
strong in her arms and strong in her will.
When I look at General Bradley and Dr. Kistia-
kowsky and Mr. Dulles, when I think of Mr.
Lovett, who can't be with us today, I am looking
' Made before an advisory panel of private citizens
at the White House on Sept. 23 (White House press
release). For a statement made by the President on
Sept. 9, in which he named the members of the panel,
see BurxETiN of Sept. 28, 1964, p. 441.
at men who played a great role in building the
strength we now have. We have kept on in this
same tradition in the last 4 years, and we believe
the balanced strength of the United States has
never been greater than it is today.
But there is always work to be done to keep
our defenses strong and up to date, and we look
forward to the advice and comisel which you
gentlemen will bring in coming discussions of
defen.se planning for the future.
Second, the United States yields to no one in
her loyalty to friends and allies. With us today
we have Mr. Acheson, Mr. McCloy, and Mr.
Hoffman, architects of the recovery of Europe
and the Atlantic alliance. Western Europe has
never been more secure and the future of Atlan-
tic freedom never more bright than it is today.
The leaders of that continent rightly seek a
growing role in the common cause of freedom.
The differences and difficulties which lie ahead
of us are the product of success, not failure. As
we go on in this great work, our friends in
Europe will be encouraged in the knowledge
that we shall have advice like yours to guide us.
I am particularly glad to have the help of such
men as Mr. Acheson and Mr. McCloy as our
minds turn to the future of Central Europe and
as we renew our determination to work for the
freedom and reunion of the people of divided
Germany. One of the gi'eat achievements of
the last generation is that we have built mutual
trust between democratic Germany and the
United States, while never forgetting the proper
interests of other allies or even the legitimate
concerns of adversaries. In that tradition we
shall continue, with your help.
And we shall show equal good faith to other
friends and allies in other continents as well.
Today this determination finds its hardest test
in the difficult and demanding task of helping
a young nation to grow and defend itself against
Commimist terror and domestic disorder — the
Republic of Viet-Nam.
We are not discouraged by difficulty, nor will
we let ourselves be deflected by partisan critics.
In Viet-Nam today, the best of Americans, from
private to Ambassador, are making their sacri-
fice in this hard cause on the spot. They too
will be encouraged to know that the Govern-
ment in Washington can call on men like you
OCTOBER 19, 1964
543
for help and counsel as this 10-year-long com-
mitment of three administrations is continued.
Third, the United States has been not merely
the strongest of all nations, and the most reliable
of allies, but the leader in proving that we ac-
cept the responsibilities of the rich and strong.
Li the Marshall Plan, which Mr. Hoffman ran,
and the World Bank, where Mr. Black and Mr.
McCloy achieved so much, and later still in the
Alliance for Progress, where Mr. Moscoso will
always be remembered, we have been willing
and ready to help free men to help themselves.
And I agree with what General Eisenhower
used to say year after year — that these programs
are a great bargain for our own national se-
curity. Year after year, as the Democratic
Majority Leader, I worked to support the Re-
publican President in defending these pro-
grams, which have no constituency of their own.
The freedom of Europe, the great hopes of India
and Pakistan, the new glow of confidence in
South America, are the product of this national,
bipartisan effort.
Fourth, and finally, the policy of the United
States is not simply peace through strength, but
peace through positive, persistent, active effort.
For 20 years, in five administrations, we have
been first in our support for the United Na-
tions— and many of you, like Mr. Cowles, Mr.
Leibman, Mr. Larson, and Mr. Wadsworth, have
been among its most determined friends.
For 20 years, in the age of the atom, we have
been first in the search for effective disarma-
ment. Mr. Acheson, Mr. Dean, and Mr. Mc-
Cloy have played great roles in that continumg
effort.
For 20 years, in crisis after crisis, we have
sought the way of reason and restraint. No
gi'eat power in all history has a better record of
respect for the rights of others.
So we are strong in our defenses, loyal in our
alliances, responsive to the needs of others, and
passionate in the positive search for peace.
This is the kind of people we are — this is the
kind of service you have given. This is the
foreign policy which wnll continue, with your
help, in the years ahead.
President Asks Additional Funds
for U.S.-Mexico Flood Project
White House press release dated September 24
President Johnson on September 24 asked
Congress for a supplemental appropriation of
$300,000 to implement recent legislation au-
thorizing U.S. participation in a joint project
with Mexico to eliminate a flood threat to the
Yuma Valley in Arizona, the Imperial Valley
in California, and the Mexicali Valley in
Mexico.
The proposed appropriation will cover U.S.
participation in the emergency clearing of vege-
tation and sediment deposits in the lower Colo-
rado River as authorized by Public Law 88-411,
approved August 10, 1964.
The project is intended to insure the flood-
carrying capacity of the channel, thus eliminat-
ing a substantial flood threat to the surround-
ing areas. It will be achninistered by the Inter-
national Boundary and Water Commission of
the Department of State.
The proposed $300,000, when added to
amounts previously requested, will not raise the
total request above the totals proposed in the
1965 budget.
644
DEPARTMENT OF STATE BULLETIN
Ceremony at Mexican Border Marks Settlement
of Chamizal Dispute
Following is the text of an address made hy
President Johnson at El Paso, Tex., on Septem-
her 25, during ceremonies at which he and Presi-
dent Adolf o Lofez Mateos of Mexico unveiled
a marker indicating the new houndary in the
Chamizal tract}
White House press release (El Paso, Tex.) dated September
25 : as-delivered test
Mr. President Lopez Mateos, Mrs. Lopez Ma-
teos, Governor [John] Connally [of Texas],
Mrs. Connally, Senator [Ralph W.] Yarbor-
ough [of Texas], Ambassador [Antonio]
Carillo Flores [Mexican Ambassador to the
U.S.], Ambassador [Vincente] Sanchez Ga-
vito [Mexican Ambassador to the OAS], ladies
and gentlemen : There are days when a shaft of
light cuts through the darkness and brightens
the deepest hopes of man. This is such a day.
Two free and growing nations have resolved
an old and divisive grievance. It is 100 years
since the roaring summer floods of the Rio
Grande remade this land. Then we were both
dedicated to extending liberty in the face of
extreme danger. We were both led by men
whose greatness has endured the estimate of
history — Abraham Lincoln and Benito Juarez.
Lincoln commanded my nation "to do all
which may achieve a just and lasting
peace. . . ." Juarez reminded us : " Respect for
the rights of others is peace." The goals of
these men have guided us to this day.
We approached the coimcil table with respect
for each other's rights and determined to achieve
a just and lasting settlement. Thus we
triumphed over a problem which has troubled
relations for half a century.
^ For background, see Bulletin of Sept. 23, 1963, p.
480, and Jan. 13, 1964, p. 49.
In that connection, I want to pay imusual
tribute today to our former Ambassador to
Mexico, our present Assistant Secretary of
State in charge of Latin American relations,
the very able and the very devoted friend of
both Mexico and the United States, Mr. Tom
Mann.
It is a great thrill to be here on the border of
these two countries. It was a great pleasure
to see so many of my old friends from both na-
tions. I particularly enjoyed meeting one of
the men who has done much to promote tlie
friendship of Mexico and the United States
throughout his public life, Judge Ewing
Thomas, son of your own town of El Paso.
So, to Ambassador Carillo Flores and Ambas-
sador Mann, and Mr. President Lopez Mateos,
let me say : Let Chamizal stand as a symbol to
all the world that the most troublesome of prob-
lems can yield to the tools of peace, and let us
never forget, let us always remember, that an-
other great man whose visionary statesmanship
made this settlement possible was John Fitz-
gerald Kennedy.
Progress of Freedom and Peace
Let me take a moment on this occasion to re-
view the progress of freedom and peace, for
these are really the twin stars for both of our
great nations. I would also like, Mr. President,
to talk to my people about the attitudes and
policies toward the world, of which this settle-
ment is another shining symbol.
For almost 20 years the world has lived with
the ambitions of tyranny and lived with the
threat of war, and they are still with us. But
I believe that reasonable men of every party
and every nation can agree our world has really
become a safer place for freedom.
OCTOBER 19, 1964
545
In Latin America countiy after country has
chosen the course of democratic development.
The followers of communism have made no new
conquest, and their numbers have actually
dwindled. Our Alliance for Progress is an ef-
fective instrument of social justice, of which
you spoke so eloquently, and of economic prog-
ress for all the nations of this hemisphere. I
know much of its success r&sts on the fact that
it has the same goals as the continuing Mexican
revolution which you, Mr. President, have done
so much in your tenn of office to advance, and it
thrills me more, Mr. President, than you Imow,
to realize that here at the end of your term we
could meet on an occasion like this, stronger in
friendship, happier in achievement, than when
we met before you took office as President of
Mexico a few years ago.
Yes, much of the good will and the peace that
exists now between our countries and this hemi-
sphere is due to your own understanding and
your own effoi-ts in that direction. And liere
in America we have found peaceful roads to the
solutions of differences, from Chamizal to
Panama.
In Africa not one of 20 new nations has
chosen communism. Ninety percent of African
trade, as we meet here today, is with the West.
Ninety percent of its students sent ovei"seas
have come to the West. All this in a continent
that many feared a few years ago would fall
easy prey to Communist ambitions.
In the Middle East, only a few years ago, it
seemed that Communist subversion was nearing
success. Today those nations are stronger in
their independence than ever before. And
Israel has grown in freedom.
In Asia the giant of India has endured a pow-
erful assault and a painful transition. Free
Japan is flourishing again, and Chinese aggres-
sion, by force and by threat, has failed to sub-
due its neighbors.
In Eastern Europe steadily widening cracks
are already appearing in the Communist em-
pire. Nation after nation has sought new ties
with the West and new independence from Mos-
cow. And Ave will continue to encourage this
movement, not through empty slogans or threats,
out through patiently building bridges of inter-
est and understanding.
The greatest enemies of freedom in the world
are ignorance and disease, and in both Mexico
and the United States we are redoubling our
efl'orts to fight both of these dreadful barnacles.
Western Europe today has never been stronger.
Its people now reach for new heights of abun-
dance. There are differences, but they come
from strength and they come from self-con-
fidence, not from weakness, not from fear. And
there is no difference in our resistance to Com-
munist ambition or our devotion to freedom.
The Soviet Union is increasingly absorbed in
the disappointments of its economy and dispute
with former comrades. Our strength is con-
vincing them that they actually have nothing to
gain by war. Increased willingness to reach
agreement has brought the test ban treaty in
which so many peace-loving nations like your
own have joined, one of many first steps to-
ward the day when really the fear of war can
finally be banished from this earth.
I do not wish to paint too bright a picture.
There is another side of the coin. Every con-
tinent carries danger and uncertainty. There
are unsolved problems, there are unresolved
conflicts, from Cyprus to Viet-Nam, from the
Congo to Cuba. Tomorrow's bitter headlines
could very well shatter today's briglit hopes.
But if we look beyond the problems of the
moment to the larger pattern of events, we see
a world where freedom is stronger and where
lasting peace is nearer. I believe that we have
cause to hope that the great forward movement
of history is in step with the deepest hope of
man. This is not the product of a single period
and certainly not the product of a single Presi-
dent. It is the sum of a hundred achievements
and acts of courage by every administration,
since the first nuclear blast ended one world and
started another. Nor is it the product of a
single nation. It rests fundamentally on the
devotion to freedom of countries which share 'f
common hopes around the world.
Cardinal Principles of U.S. Foreign Policy
The foreign policy of the United States has
been guided by three cardinal principles, and
these are the principles that we intend to^
continue.
First is determination backed by strength.
546
DEPARTMENT OF STATE BULLETIN
The United States is the most powerful coun-
try in the history of tlie world. Its might is
strong enough to deter any rational aggressor
and is flexible enough to meet any threat from
any source. But I must caution you, and I must
remind you, that strength must be matclied
by courage and wisdom if it is to protect free-
dom. And where freedom has been under at-
tack, the United States has moved to meet those
attacks. "We have never rattled our rockets,
we have never played the part of a bully, we
have never taken reckless risks. We have never
pressed our adversaries to the point where nu-
clear assault was their only alternative. But
America has always and will always stand firm.
To our own citizens and to our friends from our
neighboring coiuitry today I would remind you
that this is not an accident of the moment.
This was true of President Truman in Greece
and Turkey. This was true of President Eisen-
hower in Lebanon and the Formosa Straits.
This was true of President John Kennedy in
the Cuban missile crisis. And it was and it
is true in the Gulf of Tonkin.
Second is sacrifice of our own resources and
our own efforts in order to build the strength
of others. One of the most stimulating and
inspiring experiences of my entire public life
occurred to me on the streets of Eome just a
few months ago when I was Vice President and
I was driving down the streets of that beautiful
city. A priest came running from his school-
room, followed by other teachers, and 300 or 400
little boys. He had seen the American flag
flying on the Vice President's car. He threw
himself in front of this car, and the brakes had
to take a screeching halt and we came to a stop.
He dashed up to the door, and he said, "I just
could not let the American flag go by, because
never in the history of all mankind have any
people demonstrated so much compassion and
so much humaneness. Never have the victors
treated the vanquished as the United States has
treated us." And then he turned and looked at
the Rome skyline that had been rebuilt since
World War II, and he pointed to the magnifi-
cent buildings that towered that skyline and to
the smokestacks where industry was tliriving,
and he said, "There, together, we rebuilt this
land. I want you to go back, and on behalf
of the 400 little children in my school say tliank-
you to all the people of the United States for
the sacrifices they made in order that we could
build again."
In my moments of depression, when things
seem not to go so well and some people tell
me all the things that are wrong with my coun-
ti-y and my beloved land — and few of them ever
remind us of the things that are right — I get
consolation and comfort, from thinking about
what the people, the little people, of the other
places of the world and the other continents —
of the gratitude they feel for the understanding
that has been ours. From the Marshall Plan
to the Alliance for Progress, the people of the
United States have freely given of their abmi-
dance to the progress of other nations. We
have done tliis because it is right — it is right —
it is right that the strong and the rich should
help the M-eak and the poor.
And this great leader wlio honors us with
his presence today, President Lopez Mateos, has
recognized that principle and put it into effect
in America. And as long as I am President
of the United States, I am going to recognize
it here. He and I both know that the world
is safer for others when othere have the strength
to keep their own freedom. Tlie NATO alli-
ance is a tribute to the vision of this policy, and
around the world our influence has been on the
rise as others have leanied we seek not to dom-
inate but to help, we seek not to rule but to
cooperate, we seek not to demand their sub-
mission but to assist their freedom. Next
Tuesday I am going to welcome to the Wliite
House a great leader of the world who is com-
ing there representing NATO [NATO Secre-
tary General Manlio Brosio]. He and I are
going to get in my plane. Air Force One, and
fly out to the Strategic Air Forces to see Gen-
eral Power so that he can see with his oAvn eyes,
and he can tell the people of NATO, that our
mission is peace m the world and we have the
strength to accomplish that mission.
Third, we have patiently searched for those
areas of common interest which might lead to
fruitful agreement. A difference in language,
a difference in environment, a difference in re-
sources, a difference in people, a difference in
customs — all of those are problems that make it
OCTOBER 19, 1964
547
difficult sometimes to understand the other fel-
low. But Americans try to follow the Golden
Rule : Do unto others as you would have them do
unto you. And we have tried to find a basis for
reaching agreements that step by step would
ultimately lead us to be able to live without
fear La this world of our time.
The test ban treaty is a product of this proc-
ess. The Chamizal settlement is a product of
this process. Lasting peace will come from the
careful, the patient, and the practical search
for these solutions. It is easy to become impa-
tient and impulsive. It is easy to tell the other
fellow that "Here is our ultimatum, and you
do as we say or else." But that will never be
the policy of this country under my leadersliip.
Our Government is not a government of ulti-
matum. Our Government is a government of
respect for the rights of others and the at-
tempt to understand their problems. We have
the strength and we have the self-confidence to
be generous toward our friends and to be un-
afraid of our adversaries. There is no reason
why we should tremble in our boots. There is
no reason why we should become so frightened
that we would frighten others into a nuclear
war.
A nation strong in its might, a nation that is
secure in its own beliefs, a nation that is stead-
fast in its own goals, should never be afraid to
sit down at the council table with any other na-
tion. That is what the great President of Mexi-
co said to me before he took the oath of office
as President. We discussed some of the prob-
lems, including the Chamizal. We discussed
building dams for the benefit of both of our
people. We discussed the problem of health, of
education, of transportation, in his country and
in mine. We agreed that we could march bet-
ter shoulder to shoulder, arm in arm, than we
could by threatening and intimidating each
other.
It is only the weak and the timid that need
fear the consequences of communication and
discussion. The United States has never been
such a nation, and we will never be such a na-
tion. The Presidents of the last 20 years have
all been willing to go anywhere, to talk to any-
one, to discuss any subject, if their efforts could
strengthen freedom and advance the peace of
the world. And I pledge you here today I
will go to any remote corner of the world to
meet anyone, any time, to promote freedom
and to promote peace.
President Lopez Mateos, the Chamizal is a
very small tract of land, but the principle is
a very great one. Let a troubled world take note
that here, on this border, between the United
States and Mexico, two free nations, imafraid,
have resolved their differences with honor, with
dignity, and with justice to the people of both
nations.
President Lopez Mateos, the statesmanship
that you have evidenced in this settlement could
well serve as a model for great leaders the
world over.
As we meet here, we live in a vei-y compli-
cated world — more than a hundred different
nations with a hundred different histories, each
with its own dreams and each with its own de-
sires. There are rich nations and poor nations.
There are strong nations and weak nations.
There are white and black, slave and free, friend
and enemy. We cannot abandon all of those
who disagree with us. To do so would only
leave them at the mercy of communism. We
cannot force and bully all others to think and
act as we do in the United States. We can rec-
ognize their just interests and still protect our
own. We can stand fast in freedom's cause,
and that I guarantee you is what we are going
to do.
Mr. President, we can and we will welcome
the challenge of working toward a peace on a
hundred different fronts, Ln a hundred different
ways, for as long as the task may take. In
this way, and this way only, we can make steady
progress toward freedom and peace and toward
the fulfillment of man. The struggle for peace
is rarely dramatic. There are no marching
bands, and there are few swift victories. But
I believe that this generation has an opportimity
for greatness given to no other nation at no
other time. Other great leaders have built vic-
torious empires, and they have conquered vast
territory. But those achievements have crum-
bled under the relentless erosion of time and
change. So, working together with all the free
548
DEPARTMENT OF STATE BrrLLETIN
nations in this hemisphere, we can help build
an order of peace and progress which will en-
dure for generations. No people have ever had
a greater challenge. And, Mr. President, to
you and the people of your country, and to my
fellow countrymen, I say to you today, as pro-
phetic as I know how t/O be, that I genuinely and
earnestly believe that no people in all liistory
have ever been more ready to meet the chal-
lenge of peace and more prepared to acliieve it.
The Western Hemisphere's Fight for Freedom
iy Thomas C. Mann
Assistant Secretary for Inter-American Affairs '
Although the Communist bloc did not acquire
their Cuban beachhead in the Western Hemi-
sphere until 1959, Communists have for several
decades been at the job of infiltrating Middle
and South American institutions.
Gradually over the years they succeeded in
creating in each and every country small, disci-
plined parties wliich loudly proclaimed their
nationalism but which in fact were and are fifth
columns organized, trained, fijianced, and di-
rected from abroad. In earlier days these Com-
munist gi-oups, operating imder various names,
were totally obedient to Moscow. Today some
of them take their orders from Moscow, some
from Peiping, and some Habana. Their tactics
differ but they share a common goal: world
domination. This goal was made clear by Marx
as early as 1848 and has been reiterated by every
Commmiist leader since Marx. In the words of
Stalin:
The revolution which has been victorious in one
country (Russia) must regard itseLf not as a self-
suflicient tasli, but as an aid, a means for hastening
the victory of the proletariat in all countries.
Communist parties have succeeded in many
countries in infiltrating teachers organizations,
schools and imiversities, the lower and middle
echelons of government bureaucracies, the arts.
^ Address made before the Dallas Council on World
Affairs at Dallas, Tex., on Sept. 21 (press release 412).
the press, intellectual groups, and labor unions.
Prmcipally through skillful use by Commimist
leaders of their assets in schools and universities
and by huge amounts of Communist propa-
ganda, Marxist-Leninist political and economic
doctrines gained a number of adherents and a
certain degree of respectablity in some coimtries.
This is precisely what the Communists set out
to achieve. In the words of Lenin :
Every "peace program" is a deception of the people
and a piece of hypocrisy unless its principal object is
to explain to the masses the need for a revolution, and
to support, aid and develop the revolutionary struggle
of the masses that is starting everywhere (ferment
among the masses, protests, . . . strikes, demonstra-
tions . . . ).
The strictest loyalty to the ideas of Communism
must be combined with the ability to make all the
necessary practical compromises, to "tack", to make
agreements, zigzags, retreats and so on, in order to
accelerate . . . (world revolution).
Communism is indeed a danger to freedom in
the Western Hemisphere. It threatens the in-
dependence of every American Eepublic in the
same way it threatens the nations of Africa,
Asia, and throughout the world. It is as true
now as it was in our revolutionary days that
"eternal vigilance is the price of liberty."
But I should like today to bring you a mes-
sage of faith in the vitality and strength of the
forces of freedom in the Western Hemisphere —
a message of confidence in the certain triumph
of our cause.
OCTOBER 19, 1964
746-012 — 64 3
549
Decline of Cuban Economy
One reason we have for confidence is that
Castro's experiment lias proved before the en-
tire hemisphei-e that while Communist doctrine
promises a utopia for the masses, communisna
has in fructlce lowered rather than raised the
standard of living of the Cuban people.
In the 51/^ years which have transpired since
January 1959, Cuba's gross national product
has declined about 15 percent and per capita
income by over 20 percent. Cuba's main export
crop, sugar, was produced at the rate of 6.8
million tons in 1961; in 1963 it was only 3.8
million tons. For the first time in their liistoiy
the Cuban people must queue w.^ to receive
meager rations of food and clotliing.
When Castro seized power, per capita income
in Cuba was about 13 percent higher than in
the rest of the Caribbean basin. By contrast,
today the per capita income of the free peoples
who live in the basin is 13 percent higher than
that of the Cubans.
We continue to work for a better and wider
understanding by our friends and allies that the
Castro regime should not be rescued by free-
world trade and credits. We cannot accept
that an affluent Castro regime will spend less to
finance subversion in the liemisphere than would
a bankrupt regime.
Equally important in the decline of the
Cuban economy is the incredibly bad manage-
ment of the Castro regime. When communism
destroyed incentives on the part, of the Cuban
people to work and to produce, the people chose
to work less and to produce less. The Cuban
experiment in communism underscores once
again a basic error in the Marxist economic
theory that the individual will sacrifice the wel-
fare of his family to theoretical concepts about
the general welfare. It proves once again that
personal incentive is an indispensable element
of economic progress — that the rate of economic
growth is related to the degree of human effort
which people are willing to put into their
jobs — that communism is, in economic terms,
impracticable because it cannot provide this
incentive.
The enormity of Castro's economic failure
also reveals another basic flaw in Marxist eco-
nomic doctrine by proving once again that a
Communist-type bureaucracy simply camiot
efficiently manage even a relativelj' simple econ-
omy such as Cuba has. Even if the Communist
bureaucrats were capable of making the many
decisions which each farm or factoiy requires
on a day-to-day basis — and they are not — poli-
tics and graft and bureaucratic fear of mistakes
would still prevent the system from becoming
efficient.
Not only have Castro's policies led to eco-
nomic failure — they have destroyed Cuba's
economic independence. Cuba used to be free
to trade as it wished and to borrow, when it
needed to borrow, from whichever country it
preferred. Now it is almost totally dependent
on the Sino-Soviet bloc for both trade and aid.
Castro has received over a billion dollai-s from
the bloc in a futile effort to shore up his
economy.
And what political price have the Cuban peo-
ple had to pay for the privilege of enduring
these economic failures ? Untold numbers have
been shot for wanting freedom. Nearly 350,000
Cubans have fled into exile. JNIany thousands
of others pass their days in Castro's prisons for
alleged "political" crimes. Aside from those
who live relatively well because they have
found favor with Castro — and who, as in all
Commmiist countries, constitute the new priv-
ileged class of socialism — Cubans still on the
island live in fear and dread of the familiar
Conunmiist intelligence system organized on a
block-by-block basis as a vast network to spy
on the Cuban people.
The fear, the terror, the brutality, the loss of
individual political liberty, the loss of political
and economic independence, the destruction
root and branch of democratic institutions are
there for all to see.
But there is more than economic failure and
political tyranny. The whole hemisphere can
see today in Cuba what Eastern Europe and
Asia had seen earlier at close hand : a new kind
of total tyranny over the mind of man. As
Djilas correctly said:
. . . the stifling of every divergent tliought, the ex-
clusive inono|X)ly over thinking for the purpose of
defending their personal interests, will nail the coni-
niiniists to a cross of shame in history.
But there is more. Without Castro's favor
one loses the rijrht to work for tlie Communist
550
DEPARTMENT OF STATE BULLETIN
state, now virtually the only employer, nor may
he obtain lodging or ration cards to enable him
to have shelter and food. This is the meaning
of totalitarianism : It is total dependence on the
favor of the tyrant for even the necessities of
everyday life and, indeed, for life itself.
All of this is tlie result of nearly 5 years' ef-
fort to make Cuba the "showcase of commu-
nism" in this hemisphere.
The Fight Against Subversion
Another reason we have for confidence in the
ultimate triumph of freedom is the failure of
Castro to make good his boast that he would
"convert the Cordillera of the Andes into the
Sierra Maestra of the hemisphere."
Between April and August 1960 the Castro
regime promoted armed invasions of Panama,
the Dominican Kepublic, and Haiti. They
were all failures.
Then, under the guidance of his Soviet and
Chinese Commmiist masters, Castro's campaign
to destroy representative democracy in the hem-
isphere became more sophisticated and more
dangerous. The new tactic was to overthrow
free governments by subversion from within,
using and expanding on the Communist appara-
tus which already existed in every country.
National Communist parties and movements
began to be financed through Habana as well
as directly from Moscow and Peiping. A mas-
sive and lavishly financed propaganda cam-
paign was launched which included the creation
of Prensa Latina, a new Communist wire serv-
ice. Large amounts of propaganda material
were exported to Middle and South America.
Large quantities were printed in this hemi-
sphere. Selected Communist youth groups
from many countries were brought to Cuba,
given training in terrorism, sabotage, and guer-
rilla warfare, and then returned to the countries
from whence they came to organize and lead
campaigns of subversion. Material and finan-
cial assistance were supplied these subversive
movements.
By these means Castro brought to our hemi-
sphere an intensification of the teclinique of
subversion which has been the weapon of com-
munism around the world.
Priority Mas first given to Venezuela. And
it was in Caracas in November 1963 that Castro
met his fii-st major defeat in his program of in-
ternal subversion and teiTor. More than three
tons of anns were found on the beaches of Vene-
zuela, the plans for seizing Caracas by surprise
were laid bare, and the subversion by Castro was
frustrated.
Brazil was the next priority. Here the Com-
munist design was to infiltrate the Goveriunent
and quietly take over from within. But the
people of Brazil became aware of the design.
They rallied to the banner of freedom from all
walks of life. President Castello Branco, in
•speaking of the Brazilian revolution, described
it as "a fimdamental choice, wliich is translated
into cultural and political adJierence to the
Western democratic system." Because the peo-
ple of Brazil chose to continue their democracy,
communism in Latin America was set back for
the second time in less than a year.
Recently in Chile commmiism suffered
another setback when the candidate which it
backed was overwhelmingly defeated in free
elections.
The fight against subversion in this hemi-
spliere — the fight for our New World ideals — is
not a fight for the narrow selfish advantage of
any country. There is no servile government
today in this hemisphere save that which is part
of the Communist bloc and therefore subject to
Communist discipline. There can be no con-
formity or unifonnity, and much less can there
be servility, between proud, free, and sovereign
nations.
We know that each government's first con-
cern is, as it should be, for its own national
political, economic, and social progress and for
the well-being, security, and true independence
of its own people. We sympathize with the de-
sire of others to be free because we insist on
freedom for ourselves — ^because our people want
only to be good neighbors with all like-minded
nations, to do our part in the great cooperative
effort which is the Alliance for Pixjgress, and to
help build a community of free, strong, inde-
pendent American states, each capable of play-
ing its full role in the common search for a bet-
ter and more secure hemisphere.
But perhaps it will not be taken amiss if I
say that we are not at all sorry when we see
OCTOBER 19. 19 04
551
a neighbor put out a lire in his house. Fires
have a way of spreading. And I am sure that
all of our friends know they can continue to
count on us for help if they should be threat-
ened by Commimist subversion. As President
Johnson said clearly last April,^ "Our first task
must be, as it has been, to . . . frustrate . . .
(Cuba's) efforts to destroy free govern-
ments. . . ."
The events which I have mentioned were,
each in their own way, victories for freedom,
for hemisphere solidarity, for the ideals on
which all the New World governments were
founded, and, above all, victories for the peoples
who achieved them.
The Communists always underestimate the
spiritual strength of free peoples, their devo-
tion to their religion, their love of country,
their deep attachment to their culture and way
of life, and their loyalty to the principles of
political and economic freedom and social jus-
tice. Some people in this hemisphere may be
fooled for a time by communism, but the ma-
jority of the people will not embrace it as long
as freedom of choice exists.
Inter-American Solidarity
The third reason for confidence which I offer
for your consideration is this : The inter- Ameri-
can system has demonstrated again that it has
the will and the ability to take meaningful
collective action against Communist subversion.
In January 1962, the Foreign Ministers voted
to exclude the Castro regime from participation
in the OAS.' The basis for exclusion was a
Mexican thesis that there is an incompatibility
between communism and the principles on
which the inter- American system rests.
In October 1962 — in an hour of clear and
present danger to the hemisphere and to our
country in particular — there was unanimous
support for the decision that American states
could take, individually or collectively, what-
ever measures were necessary to remove the
threat which Soviet offensive missiles and
bombers in Cuba represented.''
" Bulletin of May 11, 1964, p. 726.
= Ibid., Feb. 19, 1962, p. 270.
* Ibid., Nov. 12, 1962, p. 720.
And in July 1964, the Foreign Ministers of
the hemisphere, by a large majority, voted that
the subversive attempt of Castro against the
Government of Venezuela, even though it was
in the form of 20th-century subversion rather
than a 19th-century-style "armed attack," was
an "aggression" within the meaning of article
6 of the Eio Treaty.^ Thereby the Foreign
Ministers took a giant step forward by serving
notice on Castro — in language which he should
be able to imderstand and heed — that the sub-
version against the national institutions of
democracy in this hemisphere will not be
tolerated.
Last July the Foreign Ministers also voted
to sever diplomatic, consular, and trade rela-
tions with the Castro regime. In doing so they
made it much more difficult for Castro to con-
vert the Andes into the Sierra Maestra of the
hemisphere. It will not be so easy now for him
to promote subversion from diplomatic sanc-
tuaries or to use trade with the hemisphere
to promote Communist aims.
The decisions of these three meetings were
each another body blow to Castro's announced
intention of exporting communism by subver-
sion, force, and violence. The hemisphere col-
lectively took action not against any American
government save that of Commimist Cuba, not
in a militaristic spirit but rather in self-defense
against proven acts of aggression. But its
decisions were forthright and clear.
Finally, I should like to say that we would
deceive ourselves if we did not understand —
and imderstand clearly — that the tasks we face
in this hemisphere are formidable. Our own
security, hemispheric defense, inter- American
solidarity, the achievement of the political,
economic, and social goals of the alliance — all
of this and more is at stake. Each nation, in-
cluding our own, will need leadership and dis-
cipline and wisdom to achieve our objectives.
But as we say this let us also say that the
Communists are not 10 feet tall. We approach
the future, as our forefathers did before us,
with courage rather than fear, with confidence
rather than uncertainty, and with an abiding
faith in the validity and vitality of freedom
and in its certain triumph.
' Ibid., Aug. 10, 1964, p. 174.
552
DEPARTMENT OF STATE BULLETIN
J
OAU Commission on Congo Talks
With Department Officers
Delegates representing the Ad Hoc Commis-
sion on the Congo of the Organization of Af-
rican Unity were in Washington September
£5-30, during which time they talked ivith offi-
cers of the Department of State. Following
are texts of a Department statement of Sep-
tember 23 and a joint press communique re-
leased at the close of the talks.
DEPARTMENT STATEMENT, SEPTEMBER 23'
The United States has been informed that a
delegation representing the Congo reconcilia-
tion commission of the Organization of African
Unity intends to come to the United States to
discuss American military assistance to the Con-
go. We have instructed our Ambassador in
Nairobi [Kenya], William Attwood, to make
clear to the OAU Commission that we are
anxious to cooperate with the OAU in every
appropriate way. We attach great importance
to the success of its efforts to contribute to a
solution of the Congo problem.
However, we could not agree to discuss our
aid to the Congo without the participation by
the Congo Government, at whose request our
aid is being given. We have, therefore, asked
our Ambassador to indicate to the Commission
that, if the Government of the Congo is willing
to participate in such discussions, U.S. repre-
sentatives will be prepared to meet with repre-
sentatives of the Government of the Congo and
the OAU Commission at a mutually agreed time
and place and on the basis of a previously agreed
agenda.
Limited U.S. military assistance to the Congo
is at the request of the sovereign Government
of the Congo to assist it in maintaining law
and order. For a number of years we have been
providing assistance to the Congo through the
United Nations and also on a bilateral basis.
Tlie United States has given similar assistance
to other African nations at their request.
* Read to news correspondents by Robert J. McClos-
key, Acting Director of the Office of News.
JOINT PRESS COMMUNIQUE, SEPTEMBER 30
Press release 424 dated September 30
The Special Delegation sent to Washington
by the Ad Hoc Commission on the Congo and
composed of the following members:
Mr. Joseph Murumbi, Minister of State, Gov-
ernment of Kenya and Head of the Delega-
tion;
Mr. Kojo Botsio, Minister of Foreign Affairs,
Republic of Ghana ;
Mr. Louis Lansana Beavogui, Minister of For-
eign Affairs, Eepublic of Guinea;
H. E. Dr. Mostafa Kamel, Ambassador of the
United Arab Republic; and
Mr. Gralien Pognon, Assistant Secretary-
General, Organization of African Unity,
met with Mr. Dean Rusk, United States Secre-
tary of State, together with the Assistant Sec-
retary of State for African Affairs, Mr. G. Men-
nen Williams, and discussed the plans of the
O.A.U. Commission to support and encourage
the efforts of the Government of the Democratic
Republic of the Congo in the restoration of na-
tional reconciliation.
The Delegation stated that it had come to the
United States on a goodwill mission. It also
made it clear that it was not the Commission's
intention to raise with the United States mat-
ters affecting the sovereignty of the Democratic
Republic of the Congo.
In welcoming these assurances, the Secretary
of State asked the Delegation to convey to the
Chairman of the Commission, Mr. Jomo Ken-
yatta, Prime Minister of Kenya, the sympathet-
ic understanding of the United States Govern-
ment that he is engaged in a most significant
undertaking in the service of Africa, to the suc-
cess of which the United States attaches great
importance. The Secretary of State stated that,
with this in mind, the Chairman of the Ad Hoc
Commission should be assured of the desire of
the Government of the United States to cooper-
ate with the Commission in every appropriate
way in carrying out the mission entrusted to it
by the O.A.U.
The Delegation welcomed these assurances
of cooperation from the Government of the
United States.
553
The Delegation and the Secretary of State
agreed that tlieir discussions have been helpful
in clarifying the views of the Commission and
of the United States Government and in estab-
lishing a general framework for cooperation
between them.
The Delegation on behalf of the Chairman of
the Commission expressed its appreciation to
the Secretary of State for the cordial atmos-
phere in which the talks were conducted and for
the spirit animating the United States Govern-
ment in its relations with the O.A.U.
THE CONGRESS
President Approves Bill for Study
of Sea-Level Canal Site
Statement hy President Johnson
White House press release dated September 24
I have approved a bill [S. 2701] to provide for
an investigation and study to determine a site
for the construction of a sea-level canal con-
necting the Atlantic and Pacific Oceans.
The Panama Canal was a great engineering
achievement. It has served world commerce
for 50 years. It has been a major source of in-
come for Panama's economic and social develop-
ment. It has been a key link in our security
arrangements. But if we are to meet the chal-
lenges of the future, we must begin now to think
in tenns of the long-range needs of the United
States, Latin America, and the rest of the
world for a sea-level canal across the American
Isthmus.
Construction of a sea-level canal presents
formidable obstacles even after a suitable site
is selected. There are enormous technical prob-
lems and complex and interrelated political, mil-
itary, and economic considerations that must be
weighed. Under this bill the task will be un-
dertaken by a five-member commission, ap-
pointed by the President, with annual reports
on the progress of the Commission's work sub-
mitted to the Congi'ess through the President.
This authorization will permit the study to
get underway. Equally important, however, is
appropriation of necessary implementing
funds. I urge that the Congress act promptly
on the supplemental request of $5 million for
this purpose for the fiscal year 1965.
Secretary Regrets Congressional
Inaction on Coffee Agreement
Statement hy Secretary Rush
Press release 431 dated October 3
I regret that the Congi-ess did not act this
session on legislation to implement the Inter-
national Coffee Agreement.^ I think it highly
important that this measure be promptly enact-
ed when the new Congress convenes in Janu-
ai-y. Meanwhile, the United States will carry
out its responsibilities under the agreement
within the limits of existing legislation.
Congressional Documents
Relating to Foreign Policy
88th Congress, 1st Session
Great Lakes-St. Lawrence Seaway Transportation
Study. Hearings before a special subcommittee of
the Senate Commerce Committee. Part 1. Decem-
ber 10, 1963-February 25, lOtM. 239 pp.
88th Congress, 2d Session
World Communist Movement. Selective chronology,
1818-1957, prepared by the Legislative Reference
Service of the Library of Congress. H. Doc. 356.
Volume II, 1946-50, December 27, 1963, 203 pp.;
Volume III, 1951-53, March 16, 1964, 290 pp.
Great Lakes-St. Lawrence Seaway Transportation
Study. Hearings before a special subcommittee of
the Senate Commerce Committee. Part 2. Febru-
ary 26-May 12, 1964. 345 pp.
Lessons From Foreign Labor Market Policies. Com-
piled for the Subcommittee on Employment and
Manpower of the Senate Committee on Labor and
Public Welfare. Volume 4 of Selected Readings in
Emjiloyment and Manpower. Undated. 211 pp.
[Committee print]
* For a statement made by Under Secretary Harri-
man before the Senate Finance Committee on Feb. 25
in support of implementing legislation, see Bulletin
of Mar. 23, 1964, p. 459.
554
DEPARTMENT OF ST.-VTE BULLETIN
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
President Johnson Proclaims 1965 as International Cooperation Year
Follcnmng are remarks made hy President
Johnson and Secretary Rusk at White House
ceremonies on Octoier 2 during which the Pres-
ident proclaimed 1965 as International Coop-
eration Year in the United States, together with
remarks made by Mr. Busk at a luncheon at
the Department of State later that day and the
text of the proclaTnation.
REMARKS AT THE WHITE HOUSE
White House press release dated October 2 ; as-delivered text
President Johnson
If you have never been late to a meeting, you
won't understand my position, but I do ask
your indulgence and I do thank you very much
for what I hope is your understanding. I have
been nmning late all morning. I didn't know
we had as many Majority Leaders in the Con-
gress as we have. They are all hoping that
they can go home this week. I am hoping that
they go home, too.
I have just left more expresidents of the
American Bar Association than I ever realized
existed, but since they were "Lawyere for John-
son," I am glad they were there. I had to meet
with them, so please forgive me, and I promise
to ti-y not to be so tardy in my public appoint-
ments in the future.
I am very proud to welcome this most dis-
tinguished assembly of most distinguished
Americans. I regret that one of the most dis-
tinguished of all cannot be with us tills morn-
ing— Ambassador Adlai Stevenson. He is
othenvise engaged in Cleveland and Chicago in
a pursuit that I regard as no vice.
You have come here and we are brought
together by a A^ery old and a very honored
American interest — the interest of fosterhig in-
ternational cooi^eration instead of international
conflict. We are here today to pix>claim 1965
as International Cooperation Year in the United
States of America.
This observance will be commemorated
around the world by the members of the United
Nations. For the United States, cooperation
with other nations and other peoj^les is always
uppermost in our minds and is the first aim of
our policies, the central instrmnent of our for-
eign policy, and it is the central goal of adminis-
trations of both parties — the great leaders of
which many are in the room today.
I know that the American people would not
have it otherwise. The value of international
cooperation and understanding is recognized by
all of us. The extent of cooperation that is
in existence is realized by too few. Today the
United States participates in some 80 inter-
national organizations. We take part, in nearly
600 international conferences, and we faithfully
honor 4,300 treaties and agreements that we
have made with other nations in the world.
Two ix>ints are clear :
First, international cooperation is simply not
an idea nor an ideal. We think it is a clear ne-
cessity to our survival. The greater the nation,
the greater is its need to work cooperatively
with other people, with other countries, with
other nations.
OCTOBER 19, 1964
555
Second, international cooperation is no longer
an academic subject; it is a fact of life, as I
have just illustrated. Our challenge is not to
debate the theory or the concept, but our chal-
lenge is to improve and to perfect and to
strengthen the organizations that already exist.
In 1965 it is the hope of your Government
that International Cooperation Year may be
used for a useful review and purposeful plan-
ning. For this end I am appointing a special
Cabinet committee to direct this work and to
develop all possible proposals for the future.
It is my thought that we can find many areas
to encourage much more progressive and pur-
poseful labor among the nations of the world.
This is what we shall be doing. I have asked
you here this morning to make a special appeal
to you and to request your labors, too. I hope
that each of you will help me and the Secretary
of State and others of your Government to carry
the story of international cooperation and or-
ganization to the American people.
Public understanding, public support, is vital
and basic to our success in striving for world
understanding and cooperation. You can't be
a statesman unless you get elected, and it is
pretty difficult for us to be successful in a move-
ment of this kind if we do not have the broad,
solid support of the people, because under our
system they are the masters.
More than that, I hope that your talents may
be turned to systematic study of the next steps
that private organizations may take to further
this cooperation. There is more extensive in-
terest in this on the private level than I think
there has ever been before. Business organiza-
tions, farm organizations, labor unions, univer-
sities, church bodies, women's groups, profes-
sional societies, are all expanding their interests
and their operations abroad and are all con-
cerned with what is happening in the other 120-
odd nations in the world to an extent that has
never been equaled before, I say pridefully and
proudly.
There is much going on in this field in this
country and throughout the world. There is
much energy and enthusiasm and interest to do
even more if we have the right kind of leader-
ship. So your task is to help bring these to-
gether, how to harness these resources and chan-
nel them in the proper direction. Those with
the experience and background that you have
must make known what is going on, what the
next steps are, and how those with time and
resources can most usefully join these labors.
In this day and in this age man has too many
common interests to waste his energies, his tal-
ents, and his substance in primitive arrogance
or destructive conflict. In short, you are going
to have to be the captains of a movement to lead
people to love instead of hate. You are going
to have to be the leaders in a movement to guide
people in preserving humanity instead of de-
stroying it. You are going to be the leaders in
a crusade to help get rid of the ancient enemies
of mankind^ — ignorance, illiteracy, poverty, and
disease — because we know that these things must
go, and we also know from our past that, if we
do not adjust to this change peacefully, we will
have to adjust to it otherwise.
As a great leader said in this room not many
years ago, if a peaceful resolution is impos-
sible, a violent revolution is inevitable.^ So I
believe that the true realists in the second half
of this 20th century are those who bear the
dream of new ways for new cooperation.
You will be frowned upon. Some will call
you an idealist. Some will call you a crackpot,
and some may even call you worse than that.
They may say you are soft or hard or don't un-
derstand what it is all about in some of these
fields. But what greater ambition could you
have and what greater satisfaction could come
to you than the knowledge that you had entered
a partnership with your Government that had
provided the leadership in the world that had
preserved humanity instead of destroyed it?
So this year and next year and in the years
to come, international cooperation must be an
enduring way of life in the community of man.
If I am here — I am speaking now politically
and not physically ; I don't anticipate any vio-
lence— but if I am here, I intend next year to call
a White House conference, and I want all of
you to start thinking about it now. I want you
to talk to your friends about it. I want to call
a Wliite House conference to search and explore
and canvass and thoroughly discuss every con-
* For remarks made by President Kennedy on Blar.
13, inC2, see Bulletin of Apr. 2, 1962. p. 539.
556
DEPARTMENT OF STATE BTTLIiETIN
ceivable approach and avenue of cooperation
that could lead to peace. That five-letter word
is the goal of all of us. It is by far the most
important problem we face. It is the assign-
ment of the century for each of you, and if we
fail in that assignment, everything will come to
naught.
If we succeed, think how wonderful the year
2000 will be, and it is already so exciting to me
tliat I am just hoping that my heart and stroke
and cancer committee can come up with some
good results that will insure that all of us can
live beyond 100 so we can participate in that
glorious day when all the fruits of our labors
and our imaginations today are a reality.
It now gives me a great deal of pleasure to
sign the proclamation designating 1965 as the
International Cooperation Year in the United
States of America. I am very proud tliis morn-
ing that I am a citizen of a country and the
leader of a nation that can have voluntarily as-
sembled in the first house of this land the quality
and quantity of talent that faces me now. To
each of you, for the time you have taken and
have waited, for the money you spent in coming
here, for the thought that you have given, but
more important, for what you are going to do,
on behalf of the Nation, I say we are grateful.
Thank you very much.
[At this point the President signed the proclamation.]
I suppose that the most indispensable part
of every man's life is his family, that they give
him comfort, strength, and inspiration when
he needs it most, but next to my family, I know
of no person that is more beloved or for whom
I have greater respect and admiration and gen-
uine confidence than the great and distinguished
Secretary of State, Dean Rusk.
Secretary Rusk
Tliank you very much, Mr. President.
It is a high privilege for me to join you here
in such distinguished company. I note with
very special satisfaction the presence here today
of Governor Harold Stassen, because he is the
living representative of that extraordinary
group who, in 1945 in San Francisco, signed on
behalf of the American Government and the
i\jnerican people the Charter of the United Na-
tions— Secretary of State Stettinius, Senator
Tom Connally, Senator Arthur Vandenberg,
Mrs. Eleanor Roosevelt, Governor Harold
Stassen.
We dare not let time erode the meaning of
what they did there. It is not just that they laid
the foundations for the great bipartisan foreign
policies of the American people in this postwar
period. They inscribed there the long and sober
thoughts of the American people about our rela-
tions with the rest of the world, thoughts which
we developed in the agonies of a great war,
thoughts which culminated in the hope and the
determination to find some way to relieve man
of the scourge of war.
And what some thought at that time was a
lofty expression of the human spirit has now
become the elementary necessity for human sur-
vival, and that is why we dare not let time erode
what they did.
There have been those from time to time to
say that one of our problems in this country is
that foreign policy has no constituency. It has
been said, and quite truly, that the President of
the United States carried a lonely responsibility.
But, in another sense, neither one of those is
entirely true because a President knows that for-
eign policy from here on out touches every home
in the country, every family, every farm, every
factory, every school, and that the decisions
which the President must make in relation to
the rest of the world draw into liis study every
citizen of the country.
So, Mr. President, when we look around the
room here and see those who in their organiza-
tions represent tens upon tens of millions of
American people, we know that they are the con-
stituency of a reasonable and just foreign policy
in relation to the rest of the world.
Peace and freedom are not free. Both will
require diligent work. Both will require our
highest intelligence. Both will require the
most dedicated commitments. And that is what
this year of international cooperation is all
about.
As the Keeper of the Great Seal of the United
States, it is my privilege to read the proclama-
tion which the President is today issuing and
to countersign that proclamation.
[At this point Secretary Rusk read the proclamation.]
OCTOBER 19, 1964
557
TEXT OF PROCLAMATION^
International Cooperation Year
Whereas the United Nations General Assembly has
designated the year 1965 as International Cooperation
Year; and
Whereas the year 1965 also marks the twentieth
anniversary of the United Nations ; and
Whereas international cooperation is essential to
the achievement of a i^eaceful world order; and
Whereas international organizations are vital in
the modem world and provide the necessary founda-
tion for a peaceful world community ; and
Whereas the world has moved rapidly toward inter-
national cooperation and organization in recent
years— especially within the family of the United Na-
tions agencies ; and
Whereas the movement for international coopera-
tion has had, and will continue to have, the enthusiastic
support of the Government of the United States of
America ; and
Whereas it is highly desirable to assess this devel-
opment and examine promptly what further steps can
be taken in the immediate future toward enhancing
International cooperation and strengthening world or-
ganization :
Now, THEREFORE, I, Ltndon B. Johnson, President
of the United States of America, do hereby
— proclaim the year 1965 to be International Coopera-
tion Year in the United States of America ;
— rededicate the Government of the United States to
the principle of international cooperation ; and
— direct the agencies of the Executive Branch to ex-
amine thoroughly what additional steps can be taken
in this direction in the immediate future.
I also call upon our national citizen organizations to
undertake intensive educational programs to inform
their memberships of recent progress in international
cooperation and urge them to consider what further
steps can be taken.
In witness whereof, I have hereunto set my hand
and caused the Seal of the United States of America
to be affixed.
Done at the City of Washington this second day of
October In the year of our Lord nineteen hun-
[seal] dred and sixty-four, and of the Independence
of the United States of America the one hun-
dred and eighty-ninth.
LyvJUJ4i'^i**/t>-----
By the President :
Dean Rusk,
Secretary of State.
REMARKS BY SECRETARY RUSK AT
LUNCHEON'
I said earlier this morning that there is some
connection between international cooperation
and the survival of the human race. I'd like
to emphasize that when we talk about inter-
national cooperation we are not talking about
sentiment. We are not talking about disem-
bodied, lofty ideals. We are talking about the
harshest requirements of our period of history.
Nuclear weapons are present in a competitive
situation. A nuclear exchange can occur. The
existence of the Northern Plemisphere is at
stake. Decisions could be made by governments
which would be the last decisions made by orga-
nized governments in most of the Northern
Hemisphere.
I cannot tell you today, as we look forward to
International Cooperation Year in 1965, that
there are no dangers. Those dangers are there
and are very real. There has been some pause,
some growing sense perhaps of prudence, a sense
of responsibility in the conduct of world affairs,
some sense of the enormous stakes that are in-
volved in the way in which we handle difficult
and dangerous problems.
But the difficult and dangerous problems per-
sist. There is no final solution to Germany
and Berlin. It is hard to see how a jjermanent
peace can be achieved in Central Europe unless
the peoples in that area have a genuine access to
the notion of self-determination. Cuba remains
an explosive question, and in late July the for-
eign ministers of this hemisphere exhausted the
peaceful remedies, the peaceful sanctions avail-
able to the governments of this hemisphere, in
an effort to get the signal to Habana that their
attempts to interfere in the affairs of other coim-
tries must cease and must cease now.
In Southeast Asia there is an ovem-iding qties-
tion as to whether there are those who will not
leave their neighbors alone. And that decision
must be to leave their neighbors alone or there
will be very, very dangerous and far-reaching
consequences of a failure to come to that decision
and promi)tly.
So it is not a quci^tioii of working on mter-
national cooperation in a world in which there
' No. 3620 ; 29 Fed. Reg. 1.3627.
' This is the substantive portion of remarks included
in press release 428 dat<>d Oct. 2.
558
UEPAKTMEXT Ol' STATK liUl.LETIX
is no danger. It is precisely because of the
nature and depth and scope of the danger that
we must, as luiman beings, seek some basis for
international cooperation. In other ■wor-ds, in
the face of hostility we must try to find some
elements of common interest, some ties that tie
human beings together. And this is what Inter-
national Cooperation Year is all about.
I have said on many occasions that we have
1,;]00 cables coming into the Department of
State on any working day and a thousand ca-
bles going out on any working day. About 85
percent of that business has to do with inter-
national cooperation, with building a decent
world order, with searching out and finding and
acting upon those common interests among
ordinary human beings. That 85 percent is the
unlviiown, the hidden part, of our foreign rela-
tions. It gets veiy little attention.
If my friends in the press will forgive me,
you imderstand the reaction from your city desk
when they say, "No blood, no news." This 85
percent of our busmess gets little attention.
The last calendar year we attended about 550
international confei'ences as a United States
Government. Only about 110 of those were
even mentioned in the American pi-ess. So
there is an enormous hidden iceberg, if you like,
of an awful lot of people trying to build that
decent world order which is the basic purpose
of the American people.
But then I'm stimulated from time to time
to recognize that even that part of it is only
a small fraction of the total relations of the
American people, and that is where you people
come in. Because the American people have
an enormous complex of constructive relation-
ships with people in other countries outside the
framework of intergovernmental relations.
Look at trade. Almost 45 billions of trade
at the cuiTent rate in both directions — almost
45 billions of trade going in both directions —
an enonnous linkage between the ordinary citi-
zens of this country and the citizens of other
countries.
And those great international communities
of science and scholarship, of arts, of sports,
and all of the other normal human activities in
which the American people are linking them-
selves to people m other countries and where it
is the duty of the Government to encourage but
to stay out of the way.
And so when we approach an International
Cooperation Year, we are not talking just about
government. There may be things which gov-
ernment can do and should do to build upon
this conce})t. We are talking about a people,
an entire people, every one of whom has some
reason to be in contact with people in other
countries in the course of a year.
I come back to the first idea — this matter of
danger and what it means to live in a nuclear
world. It is too late to be primitive. It is
too late to look at world events through one's
immediate glandular reactions. It is too late
to look for the simplified and anachronistic
formula about how to search for peace. Be-
cause there is just no future there — no future.
The problem is to be in touch with those with
whom you have the deepest disagreement in
order to find out whether there may not be some
common interest on which you can build a little
something — a little something. The small
things accumulatively can be as important as
the big things. And the small things can make
a difference.
Today, as we meet here, the United States
Government is now meeting in 23 international
bodies somewhere in the world on some subject :
a coal committee, a meeting on protection of
intellectual property, a meeting on the fonna-
tion of an international research center on can-
cer, a meeting on hydrometeorology, a meeting
on civil aviation planning, et cetera, et cetera.
The time has come in man's history when he
must peel all the peeling off the banana, ignore
national frontiers, put to one side the most
distressing, dangerous, and difficult questions
and ask himself what is required of Homo sa-
piens if we are to continue to inhabit the same
globe.
And on that I would say nothing is too small
as a contribution to the answers to that question.
From time to time I am asked by perhaps stu-
dents or people that I visit in various communi-
ties, "What can I do as a citizen to contribute
to peace, to international relations, to oiu' for-
eign policy?" The answer has to be to "start
from where you are," because at that point there
are dozens of opportunities.
OCTOBER 19. 1964
559
What is the situation in your community
about the c^reat commitments of the American
dedication to freedom? Is it a gleaming com-
munity? Is it a community for which we have
to apologize to our friends from abroad ? Is it
a community which mutes our voice when we
talk about freedom abroad? What about the
visitor to that community from another coun-
try? Is he welcomed and relaxed? Is he at
home? Is he welcomed in the friendliest fash-
ion ? What about the members of that commu-
nity who travel abroad? Do they travel with
a chip on their shoulder? Or do they travel
with the intention of finding understanding —
not to find liking? You may be disliked, but
find the basis of knowledge on which you know
why you do or do not like a situation in a par-
ticular country.
Judgments about the great issues of public
policy on which people are called upon to make
a judgment in electing representatives in gov-
ernment— local, state, and national. All these
things involve a citizen in the conduct of our
foreign relations, and these are the things which
give so much weight to what so many great
national organizations do.
We follow very closely your resolutions and
your attitudes toward foreign policy questions.
We study them with great interest and great
sincerity and great sobriety. And we hope you
will keep sending to us those positions that you
take as organizations on these great issues.
But what we are just as much interested in is
what you, in your own situation, are doing in
terms of this vast activity of the American
people and their contacts with people in other
parts of the world. Because these are the ways
in which people find out what the American
people are all about. And therein lies the
greatest strength of the American people.
If there are foreigners here, perhaps you will
forgive me a little presumption, but I person-
ally believe that it is a matter of the greatest
historical importance that a nation which has
lit«rally unimaginable power — that has power
beyond the scope of the human mind to grasp
in terms of its impact if it were fully used —
that a nation which has unimaginable power is
committed to the simple propositions to which
the American people have been committed since
World War II. This is almost something new
in history. And this is the basis of our great
strength in dealing with people around the
world.
And this is why, in hundreds and hundreds
of meetings throughout the year, they find out
what we are all about. And that is why you
don't find ordinary people in different parts of
the world thinking we are trying to take some-
thing away from them that belongs to them.
And that is why in moments of great crisis you
don't fuid nearly so much neutralism as one
might suppose, because what you people repre-
sent, what your own organizations and members
represent, is the very stuff of our society, shapes
our foreign policy, gives direction to the Presi-
dent and Secretary of State, and explains what
we are all about to people in other parts of the
world.
That is the basis of confidence with wliich we
move forward. And that is why in an Inter-
national Cooperation Year, from the smallest
thing to the largest, this is a national under-
taking for citizen and government, for orga-
nizations at the national level and at the local
chapter, wherever there are those who can put
their minds to the question : How can man save
himself and how can man reach out a hand, even
in the midst of danger, to try to make a little
sense out of a troubled world situation ?
Now, we have limited time, but I would not
wish us to move forward from here without a
commitment from me that we shall be in touch
with you again. If you leave today without a
sense of organization to move forward on these
mattei-s, we shall be in touch with you. We are
not trying to make a single monolithic struc-
ture of this matter of the International Cooper-
ation Year. But we shall be in touch with you
in a variety of ways.
But before we adjourn, I would like to intro-
duce two of my colleagues. First, Mr. Eobert
Benjamin of the United Nations Association,
and then my very distinguished colle^igue and
jiersonal friend, Harlan Cleveland, who is head
of the office which I myself once upon a time
had the pleasure of heading, who is in charge of
our work in international organization affaire.
5G0
DEPARTMENT OF STATE BUI.IJITIN
Security Council Continues
U.N. Force in Cyprus
On September 25 the United Nations Security
Council unanimously approved a resolution ex-
tending the mandate of the U.N. Force in
Cyprus for 3 months. Following are texts of
a statement made in the Council on September
17 by U.S. Representative Adlai E. Stevenson
and a statement vnade by Deputy U.S. Repre-
sentative Charles W. Yost following the vote.
STATEMENT BY MR. STEVENSON,
SEPTEMBER 17
U.S./D'N. press release 4440
We are fortunate in our consideration of the
item now on our agenda to have the excellent
report presented by the Secretary-General.^ It
is a thorough and well-organized presentation
of the pertinent facts, in the opinion of my
Government. The report contains forthright
judgments and conclusions on the major aspects
of the task which the Coimcil assigned to the
Secretary-General and to the peacekeeping
force in its IVIarch 4 resolution.^ And it pro-
vides an excellent basis for continuing the op-
eration. In our view, the Secretary-General,
his special representative in Cyprus, the com-
mander of the United Nations Force on Cyprus,
and their respective staffs, both here and in Ni-
cosia, are to be warmly commended not only for
their vigorous efforts but also for providing the
Security Council with such an informative
report.
Particularly impressive in the Secretary-
General's accomit is the chronicle of persistent
efforts in every field which have been made to
reach agreement witli the authorities in Cyprus
and the leaders of the two communities. We see
where agreements and pledges have been sought
but not yet obtained, where they have been ob-
tained and observed, and, unfortunately, also
where they have been obtained and not fully
lived up to by the parties. This careful ac-
counting to the Council will be, we hope, kept
current by the Secretary-General to the greatest
extent possible. In this way the Council may
be kept fully aware of the degi-ee of cooperation
the force this Council has created is receiving
from the parties concerned. As a useful exam-
ple of this practice, we not© in particular the
annex to the Secretary-General's report in-
cluded just yesterday. This contains both an
account of recent events and a very welcome
statement by President Makarios that the re-
grettable practice of calculated restriction of es-
sential supplies to certain areas of the island
will henceforth cease.
We see no place in the civilized behavior of
modem nations for governments to institute in-
ternal economic blockades against minorities in
their midst. Tlie decision to lift the internal
blockades in Cyprus is as necessary as it is
timely.
Mr. President, the military situation, as de-
scribed in the Secretary-General's report, re-
mains particularly worrisome and precarious.
The description in the report of the serious out-
break of fighting wliich occurred a month ago
and the repeated efforts made to stop it are a
vivid reminder of the very narrow margin be-
tween that tragic and senseless engagement and
its extension into a wider conflict. Apropos of
this engagement, we continue to oppose and de-
plore, as I said here in the Council on June 19,^
"the importation of arms into an island already
stuffed with armaments." We most energeti-
cally deplore any use of force on the island by
the parties to the Cyprus dispute. In partic-
ular, we deplore the use of heavy arms pur-
portedly purchased for external defense, in vio-
lation of specific pledges made to the United
Nations. In the presence of a lightly armed
U.N. force commissioned by this Council to pre-
vent a recurrence of fighting, and positioned
between the forces of the two communities, the
use of such weapons is indefensible. We also
most emphatically deplore any air attacks on
the island launched from outside Cyprus. In
tliis connection, the United States has never
agreed to the use of arms furnished under U.S.
military assistance agreements for any purposes
not specified in those agreements, and this
applies to all such weapons furnished to any
signatory of any such agreements with the
' U.N. doe. S/5950 and Add. 1 and 2.
' For text, see Buixetin of Mar. 23, 1964, p. 466.
' Ibid., July 13, 1964, p. 64.
OCTOBER 19, 1964
561
United States. In the instance in question, the
agreement of the United States for the use of
these weapons was neither sought nor given.
In our view acts of violence and bloodshed are
equally repreliensible and inhumane whether
launched from the ground or from the air.
Photographs of murdered Greeks or murdered
Turks are equally shocking and gruesome.
To say that actions of both types aggravate
the situation in terms of the March 4 resolution
would be a gross understatement. They risk the
broadening of hostilities; they are tragic in
their consequences to combatants and noncom-
batants alike.
We can be thankfid that the dedication and
discipline of the troops of the U.N. force, and
the energetic efforts of the force commander in
policing the cease-fire which the Council voted
on in August,* have helped to overcome this re-
cent perilous situation. But it is clear that the
danger remains great and that the force needs
and deserves the utmost cooperation from the
governmental authorities and communities on
Cyprus, and from all member states, in partic-
ular those directly involved in the Cyprus ques-
tion, if it is successfully to carry out its prin-
cipal mission of preventing a recun-enc« of
fighting.
In addition, the commander and his forces,
as the Secretary-General pointed out in his
July 22 memorandum,^ must be able to move
freely and inform themselves about the Island
of Cyprus if they are to position themselves in
a timely manner and to exercise the fimctions
the Secretary-General has carefully defined for
them in his report to the Council. Limitations
on the U.N. force beyond those in the status-of-
forces agreement, or disrespect for the U.N.
troops or for the authority which the Secretary-
General lias vested in their commander. General
[K. S.] Thimayya, cannot, I believe, be comite-
nanced by any members of this organization. I
therefore wholly endorse what has already been
said hero about support for the U.N. comman-
der's authority and commend the energy and
wisdom with which he has exercised it in his
mo.st difficidt task. Furthermoi-e I can state
that my Government fully supports the recom-
* Ibid., Aug. 31, 1964, p. 318.
" U.N. doc. S/.'-h'HS.
mendations now accepted in this Council by the
main parties concerned — that the mandate of
the force be extended for an additional 3
months.
I believe the Comicil should all be gi-ateful
for the persevering efforts of the U.N. staff in
Cyprus to reestablish normal conditions. The
catalog of their fmstrations in these efforts is
a monument to the complexity of tliis problem
and a tribute to their persistence and resource-
fulness. As I have already said, we heartily
welcome the recent message from President
Makarios annexed to this report and hope it
will help generate an atmosphere in which these
efforts will receive greater response.. That
chapter in the Secretary-General's report en-
titled "Economic Restrictions," we trust, has
been definitively closed, and we hope all citizens
of Cypnis, as well as citizens of Greece and
Turkey, resident in each other's nations will
henceforth receive just, humane, and generous
treatment.
I cannot conclude my remarks without touch-
ing on a subject which is not only painful to my
Government but also, judging from his report,
to the Secretary-General. That is the subject
of fmances. We tried, in the March 4 resolu-
tion, to meet this problem without further com-
plicating or prejudicing the more fundamental
issue of financing United Nations peacekeeping
across the board. ^ly Government has, I be-
lieve, participated generously in the financing
of United Nations activities in Cyprus on the
voluntary basis undertaken pursuant to the
Council's resolution. Of the estimated $12.5
million which the force will cost for the first 6
months, we have pledged up to $4.3 million and
in addition have provided, at no cost to the
United Nations, airlift for some 4,700 troops
to the value of about $1 million. Contributions
in line with their financial abilities by other
members of this Council, as well as by other
United Nations member states in the European
and the Mediterranean region, including espe-
cially those whose interest in a peacefid solution
is enhanced by their proximity to Cypnis, would
have solved the financing problem for the United
Nations Force in Cyprus. Lacking such con-
tributions the Secretary-General is now in the
awkward position of being asked to sustain a
562
DEPARTMENT OF ST.VTE BULLETIN
foi'ce for which, despite the financial support of
their troops undertaken by Canada, Ireland,
and the United Kinodom, pledged funds are
inadequate. We strongly urge that all members
of the Council which have unanimously estab-
lished this pearckeeping operation set an ex-
ample by contributing the financial means with-
out which the operation cannot succeed.
If the Security Council decides to authorize
the continuation of the force, I will promptly
announce the extent to which my Goverrmient
is willing to provide continued financial support
for the operation. I earnestly hope that this
pledge will be quickly followed by comparable
pledges from all who have a sincere interest in
the United Nations and in its peacekeeping role.
And I am frank to say that I believe those who
have particularly insisted on the primacy, or
even exclusive authority, of the Security Coun-
cil in the peacekeeping field might well assume
a particular responsibility to contribute to an
operation duly authorized b}' the Security Coun-
cil and financed by arrangements set forth in a
Security Council resolution. There has been no
financial contribution for this important Secu-
rity Council action from the foremost proponent
of the principle of the exclusive responsibility
of the Security Council for United Nations
peacekeeping.
The peacekeeping task in Cyprus will end, I
fear, only with the achievement of a permanent
agreed solution — a solution of the type this
Council in its March 4 resolution correctly
called for. To be applicable, this cannot be a
solution legislated in the abstract. It must be a
solution negotiated between the parties whose
representatives recognized each other's intei'est
in the island by jointly affixing their signatures
to the treaties at Nicosia in 1960. '\\^latever
may be the present position of these govern-
ments regarding those treaties, this recognition
of interest could not and cannot now be
scratched from history. It is for this reason, I
believe, that the Council in its March 4 resolu-
tion clearly indicated the parties which would be
involved in mediation and negotiation.
These were the parties assiduously and pa-
tiently consulted by the accomplished Finnish
statesman, the late Sakari Tuomioja. This dis-
tinguished man, who in the time given him gave
so generously of his talents both to his country
and to the Morld, spared no effort in his final
task. He did not live to complete it. The most
fitting tribute we can give to his memory is, I
believe, to rededicate ourselves, with the aid of
the new mediator appointed by the Secretary-
General to tiiis task. My Government, which
had the utmost respect for Mr. Tuomioja and
deeply regrets his untimely passing, will con-
tinue to be at the disposition of his most able
successor. We congratulate the Secretary-
General and the parties concerned for having
agreed to the choice of Mr. Galo Plaza for this
task. We wish the new mediator evei-y success
in his difficult task.
Mr. President, I believe this Council can be
satisfied that the difficult task it has given to
the executive organ of the United Nations has
been undertaken with such diligence and dedi-
cation. The task is not over. The need for
continuing to work on it is apparent. We must
follow its execution closely. The Secretary-
General, the commander of the forces on the
island, and the mediator will need the full sup-
port and cooperation of the members of our
oi'ganization. The nations which have offered
their troops, their police forces, their medical
personnel, have given an example of cooperation
and support which, we hope, no members or
friends of this organization and particularly
no permanent members of this Council will
hesitate to follow.
STATEMENT BY MR. YOST, SEPTEMBER 25
U.S./tJ.N. press release 4442
My delegation welcomes the resolution which
this Council has just passed. We believe that
the parties principally concerned and the mem-
bers of the Council have adopted a wise course
in agreeing to extend the mandate of the United
Nations in Cyprus in order to establish con-
ditions in which a solution may be reached.
As Governor Stevenson stated in his speech
to the Council last Thursday, we believe the
Secretary-General's report to the Council is an
excellent assessment of the problems the foi'ce is
faced with and we particularly welcome the fact
that the Council in its resolution has taken due
note of it. The Secretaiy-General's judicious
OCTOBER 19, 19 0 4
563
conclusions are thereby a matter of record in
this Council.
Governor Stevenson earlier this •week said
that we would inform the Council about our
contribution for the force when the resolution
was adopted. The United States has already
contributed $4.3 million of the estimated $12.5
million cost of the first 6 months of the U.N.
force's operations. In addition, we have, in view
of the shortfall resulting from lack of other
contributions, furnished without charge to the
United Nations about $1 million worth of air
transport.
Now that the force has been extended for 3
montlis, at a cost estimated by the Secretary-
General at $7,050,000, I am authorized to state
that my Government will contribute up to $2.3
million for the forthcoming 3-month period.
The Secretary-General has just a moment
ago reemphasized the fact that he cannot carry
on this operation unless the necessary funds are
provided. We would strongly urge that other
states which have generously contributed their
troops, their police, their doctors, their facili-
ties or equipment, and their fimds continue to
do so in proportions at least equal to their past
efforts. We particularly urge that states which
liave not hitherto seen fit to make voluntary
contributions to this U.N. operation now do so.
Since the operation has been unanimously ap-
proved by the Security Council, it would not
appear that any member state could have any
objection of principle to making such a contri-
bution. Yet if members of this organization
are not prepared to provide financial support
even for U.N. operations to which there can be
no objection of principle, U.N. peacekeeping
will all too soon grind to a halt and one of the
great and essential objects for which the United
Nations was created will ignominiously lapse.
Finally, I should like to mention two pieces
of welcome news which the Secretary-General
has just conveyed to us.
First, he has told us that an agreement has
been reached in regard to the rotation of a part
of the Turkish contingent in Cyprus. This was
a particularly delicate and potentially hazard-
ous issue, and the Governments concerned are to
be congratulated for the wisdom and restraint
they have shown in settling it in an amicable
manner. The Secretary-General is also to be
congratulated for the mediatory role which he
has so successfully played.
Second, the Secretary-General has given us
the pleasure of learning that our former col-
league. Ambassador Bernardes of Brazil, is ta
serve as his personal representative in Cyprus.
As the Secretary-General pointed out. Ambas-
sador Bernardes played an important role in the
adoption of the resolution under which the U.N.
force in Cyprus was first established. I can-
not conceive of a person more highly qualified
to represent the Secretary-General in Cyprus
and to assist him in carrying out the resolution
which this Council has adopted.
U.S. Expresses Regret Regarding
Expulsion of Greeks From Istanbul)
Statement hy Adlai E. Stevenson
U.S. Representative in the Security Cov/ncU ^
My Government deeply regrets what we have
heard here today about the expulsion of Greeks
from Istanbul, about military deployment on
the frontiers, and other evidence of further de-
terioration of the relations between two nations
in the eastern Mediterranean which in recent
years have demonstrated a remarkable ability
to overcome a turbulent history and live to-
gether in peace, llie close relationship be- ,
tween the United States and Greece and Tur-J
key causes us to view with particular regret the
rising tide of bitterness and misunderetanding
which is the offspring of the Cyprus problem
that has already occupied so much of our
thought and concern.
The expulsion of Greek nationals from Is-
tanbul, which the distinguished representative
of Greece has brought to the attention of the
Council, seems to us a sad sequel to the com-
munal hostility in Cyprus. It is almost an
axiom, however, of history that people of one
nation resident in the territory of another often
become innocent victims of any sudden increase
in tension or suspicion between those countries.
'Made in the Security Council on Sept. 11 (U.S./
U.N. press release 4437) .
56-t
DEPARTMENT OF ST.\TE BULLETIN
Even while acting entirely within the letter of
the international agreements, as we believe the
•Government of Turkey has done in this case,
uprooting and deporting innocent and harm-
less people from their long-term homes is a
spectacle that touches the humane instincts and
evokes the profound sympathy of all of us.
Therefore we, too, would urge the Govern-
ment of Turkey to give very careful considera-
tion not only to the effect of its actions on its
neighbor but to the human hardships visited
on those individuals who are innocent of any
hostile intention toward the country in which
they have chosen to reside.
I cannot, of course, ignore the circumstances
which have brought about the present unhappy
and explosive state of relations between Greece
and Turkey. The cause and effect are apparent
to all. The recent action toward the Greek
nationals in Istanbul is the consequence, or one
of them, of the treatment of Cypriots of Turk-
ish origin in recent months in Cyprus. This
Council is already familiar with the earlier re-
ports of hostage-taking, the destruction of
Turkish homes, stores, villages, and the Secre-
tary-General's report released today ^ refers to
"hardship experienced by many Turkish com-
munities in Cyprus by the economic restrictions
which have been imposed by the Government of
Cyprus." And again it further states that the
economic restrictions "in some instances have
been so severe as to amount to veritable
siege. . . ."
Human rights, IVIr. President, are a two-way
street and apply to human beings wherever they
are — in Turkey, in Greece, or in Cyprus.
The Government of Greece, I am sure, de-
plores this situation as much as we do, and I
3arnestly hope it will do everything in its power
to ameliorate the plight of the Turkish
-ypriots.
Perhaps it is not possible for the parties to
jquate the concern of Greece for Greek nationals
n Istanbul with the concern of Turkey for
ithnic Turks in Cyprus. But the fact is, Sir.
President, that it is only by mutual concern
or each other's citizens or ethnic brethren, as
;ndeed for each other's interests, that the Gov-
' U.N. doc. S/59o0 and Add. 1.
ernments of Greece and Turkey will succeed in
settling the sharp differences which have arisen
between them — the principal one, of course, be-
ing the question of Cyprus.
So I can but echo what has been so well said
by the preceding speakers here in the Council
this afternoon, that my Government earnestly
hopes that neither Turkey nor Greece in their
bilateral relations, especially as to innocent peo-
ple, will do anything further to aggravate a
situation for the solution of which they have
such a heavy responsibility to themselves and
to the world community.
Current U.N. Documents:
A Selected Bibliography
Mimeographed or processed documents (such as those
listed below) may be consulted at depository libraries
in the United States. U.N. printed publications may
be purchased from the Sales Section of the United
Nations, United Nations Plaza, N.Y.
Security Council
Question of Greek-Turkish Relations :
Letters to the Secretary-General and the President
of the Security Council from the representative of
Greece. S/5933. September 5, 1964, 2 pp. ; S/5934,
September .5, 1964, 1 p. ; S/5&41, September 8, 1964,
1 p.; S/.5946, September 9, 1964, 4 pp.; S/5947,
September 9, 1964, 2 pp.; S/5951, September 10,
1964, 8 pp.
Letters to the President of the Security Council and
the Secretary-General from the representative of
Turkey. S/5935, September 6, 1964, 2 pp. ; S/59.57,
September 11, 1964, 7 pp. ; S/5968, September 14,
1964, 2 pp.
Report by the Secretary-General transmitting replies
received from various governments concerning their
actions pursuant to the Security Council resolution
(S/5761) on the question of race conflict in South
Africa resulting from policies of apartheid. S/5913.
August 2.5, 19G4. 17 pp.
Letter dated August 27 to the President of the Security
Council from the representative of Yemen, charging
armed aggression by British forces on town of Al-
baidha. S/5919. August 28, 1964. 1 p.
Letter dated August 31 to the President of the Security
Council from the acting representative of the United
Kingdom protesting, on behalf of the Government of
South Arabia, artillery action by Yemeni forces and
denying that "forces on the Federal side of the bor-
der in the Baidha area" fired on Yemeni territory.
S/5922. August 31, 1964. 2 pp.
Note by the Secretary-General, enclosing a letter dated
August 27 received by the President of the Security
Council from the Permanent Observer of the Re-
public of Viet-Nam in relation to the report submitted
by the Security Council Mission to the Kingdom of
Cambodia and the Republic of Viet-Nam. S/5921.
August 31, 1964. 7 pp.
)CT0BEE 19, 19G4
565
TREATY INFORMATION
Current Actions
MULTILATERAL
Atomic Energy
Agreement for the application of safeguards by tlie
International Atomic Energy Agency to the bilateral
agreement between the United States and China of
July 18, 1955, as amended (TIAS 3.307, 4176, 4514,
5105), for cooperation concerning civil uses of atom-
ic energy. Signed at Vienna September 21, I'.liH.
Enters into force on the date on which the Agency
accepts the initial inventory.
Coffee
International coffee agreement, 1962, with annexes.
Open for signature at United Nations Headquarters,
New York, September 28 through November 30, 1962.
Entered into force December 27, 1963. TIAS 5505.
Accession deposited: Venezuela, August 27, 1964.
Consular Relations
Vienna convention on consular relations ;
Optional protocol to the Vienna convention on consular
relations concerning the compulsory settlement of
disputes.
Done at Vienna April 24, 1963.'
Ratification, deposited: Upper Volta, August 11, 1964.
Cultural Property
Convention for protection of cultural property in event
of armed conflict, and regulations of execution ;
Protocol for protection of cultural property in event of
arme<l conflict.
Done at The Hague May 14, 1954. Entered into force
August 7, 1956.=
Accession deposited: Cyprus, July 21, 1964.
Marriage
Convention on consent to marriage, minimum age for
marriage and registration of marriages. Opened for
signature at the United Nations December 10, 1962.'
Accessions deposited: Finland (with a reservation),
August 18, 1964 ; Western Samoa, August 24, 1964.
North Atlantic Treaty— Atomic Information
Agreement between the parties to the North Atlantic
Treaty for cooperation regarding atomic informa-
tion. Done at Paris June 18, 1964.'
Notifications received that they are inlling to 6e
bound by terms of the agreement: Italy, Septem-
ber 14, 1964 ; Turkey, September 18, 1964 ; United
States, September 25, 1964.
Nuclear Test Ban
Treaty banning nuclear weapon tests in the atmos-
phere, in outer space and under water. Done at
Moscow August 5, 1963. Entered into force October
10, 1963. TIAS 5433.
Ratification deposited: Honduras, October 2, 1964.
Publications
Convention concerning the international exchange of
publications. Adopted at Paris December 3, 1958.
Entered into force November 23, 1961.''
Ratification deposited: Brazil, August 11, 1964.
Satellite Communications System
Agreement establishing interim arrangements for a
global commercial communications satellite system.
Done at Washington August 20, 196-1. Entered into
force August 20, 1964. TIAS .5646.
Signatures: Sweden, September 28, 1964;' Belgium,
September 29, 1964.'
Special agreement. Done at Washington August 20,
1964. Entered into force August 20, 1964. TIAS
5656.
Signatures: Kungl. Telestyrelsen for Sweden, Sep-
tember 28, 1904; R^gie des T^Wgraphes et Tele-
phones for Belgium, September 29, 19&4.
Slavery
Slavery convention signed at Geneva September 2.5,
1926," as amended (TIAS 3.532). Entered into force
March 9, 1927 ; for the United States March 21, 1929.
46 Stat. 2183.
Accession deposited: Uganda, August 12, 19&4.
Supplementary convention on the abolition of slavery,
the slave trade and institutions and practic-es similar
to slavery. Done at Geneva September 7, 1956. En-
tered into force April 30, 1957.'
Accession* deposited: Argentina, August 13, 1964;
Uganda, August 12, 1964.
Trade
Protocol for the accession of Spain to the General
Agreement on Tariffs and Trade. Done at Geneva
July 1, 1963. Entered into force August 29, 1963.
Ratification deposited: Austria, August 10, 1964.
BILATERAL
Argentina
Amendment to the agreement of June 22, 1962 (TIAS
5125), for cooperation concerning civil uses of atomic
energy. Signed at Washington June 8, 1964.
Entered into force: September 29, 1964.
Kenya
Agreement relating to the establishment of a peace
corps program in Kenya, with related notes. Effected
by exchange of notes at Nairobi August 26, 1964.
Entered into force August 26, 1964.
Netherlands
Protocol modifying and supplementing extension to the
Netherlands Antilles of the convention for avoidance
of double taxation and prevention of liscal evasion
with respect to income and certain other taxes_of
April 29, 1948, as amended (TIAS 1S55, 3366, 3367).
Signed at The Hague October 23. 1!K!3.
Ratifications rxcUanncd : September 2S, 19C>4.
Entered into force: September 28, 1".)64.
' Not in force.
' Not in force for the Ignited States.
"Subject to ratification.
566
DEP.\KT>rEXT OF ST.\TE BULI-ETIN
INDEX October 19, 196^ Vol. LI, No. 1321
Africa. OAU Commission on Congo Talks With
Department Officers (Department statement,
joint press communique) 553
American Republics
President Approves Bill for Study of Sea-Level
Canal Site (Johnson) 554
The Western Hemisphere's Fight for Freedom
(Mann) 549
Asia. Progress and Problems in East Asia : An
American Viewi)oint (Bundy) 534
Atomic Energy. U.S. Comments on Peiping's
Nuclear Cajjacity (Rusk) 542
China. U.S. Comments on Peiping's Nuclear
Capacity (Ru.sk) 542
Communism. The Western Hemisphere's Fight
for Freedom (Mann) 549
Congo. OAU Commission on Congo Talks With
Department Officers (Department statement,
joint press communique) 553
Congress
Congressional Documents Relating to Foreign
Policy 554
President Approves Bill for Study of Sea-Level
Canal Site (Johnson) . 554
President Asks Additional Funds for U.S.-Mexico
Flood Project 544
Secretary Regrets Congressional Inaction on
Coffee Agreement (Rusk) 554
Cuba. The Western Hemisphere's Fight for
Freedom (Mann) 549
Cyprus. Security Council Continues U.N. Force
in Cyprus (Stevenson, Tost) 561
Economic Affairs. Secretary Regrets Congres-
sional Inaction on Coffee Agreement (Rusk) . 554
Foreign Aid. Progress and Problems in East
Asia : An American Viewpoint ( Bundy ) . . 534
Greece. U.S. Expresses Regret Regarding Ex-
pulsion of Greeks from Istanbul (Stevenson) . 564
Japan. Progress and Problems in East Asia :
An American Viewpoint (Bundy) .... 534
Korea. United States and Korea Reaffirm
Policy of Cooperation (text of joint
statement) 542
Mexico
Ceremony at Mexican Border Marks Settlement
of Chamizal Dispute (Johnson) 545
President Asks Additional Funds for US.-
Mexico Flood Project 544
Presidential Documents
Ceremony at Mexican Border Marks Settlement
of Chamizal Dispute 545
Four Principles of American Foreign Policy . . 543
President Approves Bill for Study of Sea-Level
Canal Site . t . . . 554
President Johnson Proclaims 1965 as Intema-
national Cooperation Tear 555
Treaty Information
Ceremony at Mexican Border Marks Settlement
of Chamizal Dispute (Johnson) 545
Current Actions 566
Secretary Regrets Congressional Inaction on
Coffee Agreement (Rusk) 554
Turkey. U.S. Expresses Regret Regarding
Expulsion of Greeks from Istanbul (Steven-
son) 5(^1
United Nations
Current U.N. Documents 565
President Johnson Proclaims 1965 as Interna-
tional Cooperation Year (Johnson, Rusk,
text of proclamation) 555
Security Council Continues U.N. Force in Cy-
prus (Stevenson, Yost) 561
U.S. Expresses Regret Regarding Expulsion of
Greeks from Istanbul (Stevenson) .... 564
Name Index
Bundy, William P 534,542
Johnson, President .... 543, 545, 554, 555, 558
Lee Tong Won 542
Mann, Thomas C 549
Ru.sk, Secretary 542,554,557,558
Stevenson, Adlai E 561, 564
Yost, Charles W 563
Check List of Department of State
Press Releases: September 28-October 4
Press releases may be obtained from the Office
of News, Department of State, Washington, D.C.,
20520.
Release issued prior to September 28 which ap-
pears in this issue of the Bulletin is No. 412 of
September 21.
No. Date Subject
*417 9/28 Harriman: Far East-American
Council of Commerce and Indu.s-
try. New York ( excerpts ) .
*418 9/28 U.S. participation in international
conferences.
t419 9/28 Supplemental income tax protocol
with Netherlands enters into
force.
'*420 9/28 Program for visit of the President
of the Philippines.
*421 9/28 Cultural exchange (U.S.S.R., Ger-
many, Italy).
422 9/29 Bundy : "Progress and Problems in
East Asia : An American View-
point."
423 9/29 Rusk: Chinese Communist nuclear
capacity.
424 9/30 Joint press communique with Ad
Hoc Commission on the Congo.
*425 10/2 Program for visit of the President
of the Philippines.
*426 10/2 Amendments to program for visit of
the President of the Philippines.
'*427 10/3 Harriman : Zionist Organization of
America, Washington, D.C. (ex-
cerpts ) .
428 10/2 Rusk: International Cooperation
Year ceremonies.
431 10/3 Rusk: International Coffee Agree-
ment.
•Not printed.
fHeld for a later issue of the BtrLLETiN.
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The Alliance for Progress
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and to make democracy a reality throughout the hemisphere.
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THE OFFICIAL WEEKLY RECORD OF UNITED STATES FOREIGN POLICY
THE
V
DEPARTMENT
OF
a
STATE
-BULLETIN
Vol. LI, No. 1322
October 26, 1964,
TRADE, INVESTMENT, AND PEACE
Address by Secretary Husk 670
SECRETARY RUSK'S NEWS CONFERENCE OF OCTOBER 8 675
PHE NEW ROLE OF JAPAN IN WORLD AFFAIRS: AN AMERICAN POLICY VIEW
by Robert W. Bamett 586
THE ALLIANCE FOR PROGRESS : A CHALLENGE AND AN OPPORTUNITY
by Assistant Secretary Mann 693
For index see inside back cover
Trade, Investment, and Peace
Address hy Secretary Ritsh^
I have come today to share with you some
thoughts about the role of foreign economic
policy in preserving our security and enliancing
our prosperity. As we look to the future, this
element of our relationship to the rest of the
world will continue to grow in importance.
Rapid and far-reaching change in the world
economy is here for all of us to see. We must
be prepared to treat change as a challenge to
the wise use of our skills and resources.
We have impressive assets for this task. We
are today the strongest nation m the world —
in our military position, in our industrial capa-
bilities, in our agricultural productivity, in our
financial resources, and, above all, in the well-
bemg of our citizens. These achievements tes-
tify both to the vitality and efficiency of our
competitive system and to the hvunan values of
our society.
'Made before the Mortgage Bankers Association of
America at Washington, D.C., on Oct. 5 (press release
432).
But we might well remember that our start
on this fortunate course goes back to the first
days of the Republic. We were a trading na-
tion— and that gave us a legacy which has been
an abiding strength and a continuing measure
of our mettle.
We started out, as you know, with the world
outlook of a newly independent, agricultural,
imderdeveloped comitry in critical need of for-
eign markets, foreign manufactures, foreign
teclmology, and foreign capital. It is not sur-
prising, therefore, that economic relations were
the central preoccupation of our first ministers
to Europe after we won our independence —
Jolm Adams in Great Britain and Thomas Jef-
ferson in France. Their diplomatic corre-
spondence of 175 years ago is alive with their
concern in these matters. For example:
— They sjient much of their time negotiating
commercial treaties on the most- favored-nation
principle.
—They negotiated hard to remove discrimina-
DEPARTMENT OF STATE BULLETIN VOL. LI, NO. 1322 PUBLICATION 7755 OCTOBER 26, 1964
The Department of State Bulletin, a
weekly publication Issued by the Office
of Media Services, Bureau of Public Af-
fairs, provides the public and Interested
agencies of the Government with Infor-
mation on developments In the field of
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Department 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 Depart-
ment, as well as special articles on vari-
ous phases of International affairs and
the functions of the Department. Infor-
mation Is Included concerning treaties
and International agreements to which
the United States Is or may become a
party and treaties of general Interna-
tional Interest.
Publications of the Department, United
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are listed currently.
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1961).
NOTE : Contents of this publication are
not copyrighted and Items contained
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570
DEPARTMENT OF STATE BULLETIK
J
tions against our products in foreign markets
and to reduce barriers on a reciprocal basis.
—They were thorougWy familiar with tlie
commercial possibilities of the 13 States and
sought to promote exports of products in which
M-e had a comparative advantage and a new
tecluiology of sorts to offer to Europe. Indeed,
they were responsible for the first United States
export promotion drive. That prototype of
our current export promotion programs cen-
tered on efforts to broaden the European mar-
ket for American whale oil and whale oil
candles.
— They obtai:ied credits abroad to facilitate
the trade of our merchants.
— And they negotiated loans in European
capital markets to meet debt-servicing and
other obligations of our then impoverished
nation.
These men were convmced that economic re-
strictions were a threat to our political inde-
pendence. They took as a basic premise that our
nation could more effectively realize its poten-
tialities as part of the world economy rather
than in economic isolation. In essence, both
men saw beyond the trials of the moment and
framed policy recommendations consistent with
their exciting vision of the Nation's future and
of their belief in its ability to compete abroad
and to benefit from that competition.
Growth in Free-World Economy
Adams and Jefferson would take the same
position today— all the more so from the van-
tage point of a "have" nation, and not only the
richest "have" nation in history but one with
vast and inescapable responsibilities for defend-
ing and strengthening peace and freedom
throughout the world.
By our very size we are heavily involved in
the world economy and our actions inevitably
affect not only our own well-being but the af-
fairs of other nations. Let us remind ourselves
why this is so. The United States has barely
6 percent of the world's population. In
comparison :
—We produce about 30 percent of the world's
total output of goods and services.
—We have at our disposal almost 40 percent
of total world consumption of energy.
—We account for one-third of the world's in-
dustrial production.
—We produce close to one-fifth of the world's
agricultural output, and our agricultural stocks
are the world's major contingency food resei-ve.
— Our foreign trade is approximately 18 per-
cent of total world trade.
— And our capital market is the major source
of fmids for both the industrial and the develop-
ing countries of the free world.
Over the past three decades these underlying
realities have exei-t«d growing influence on our
actions and brought us back to our outward-
looking traditions. Each administration dur-
ing this period, irrespective of party, has seen
the urgent need to rebuild and expand the inter-
national economic order and has worked ener-
getically toward that end.
Looked at in this way, there has been a central
purpose in the complex of great actions in for-
eign economic policy that began with the recip-
rocal trade legislation and continued in the post-
war period with the Bretton Woods agreements,
setting up the International Bank and the
International Monetary Fund; the Marshall
Plan; Point 4; the foreign aid programs; the
Alliance for Progress and the Inter-American
Bank ; and the Trade Expansion Act. Without
these actions, much of the world almost cer-
tainly would have sunk into chaos or Commu-
nist domination, and, at the very best, what re-
mained of the free world would be caught in the
morass of bilateral trade arrangements, quotas,
exchange controls, and high tariffs erected in
the 1930's and extended as a consequence of the
Second World War.
In the full sense, the choice and the responsi-
bility rested with the United States. We exer-
cised that choice and that responsibility affirm-
atively by leading the way toward a more open
system of international trade and payments and
a more rational and mutually beneficial inter-
national economic environment.
The results have been dramatic— for the free
world as a whole and for us. For the first time
in this century, world trade has grown faster
than world income. Over the past decade,
trade has almost doubled. Tlie value of goods
moving into and out of free-world countries has
now reached $300 billion a year. And an im-
OCTOBER 26, 1964
571
mense interchange of capital, ideas, and tech-
niques has gone with it. Eising demand in one
country has expressed itself in stronger export
markets in other countries. The growing vol-
ume of trade has contributed to productivity,
because countries could specialize somewhat
more on what they do best, because imports
carry technology and technology is not the mo-
nopoly of any one country, and because the
pressure of increased competition is an incentive
to find new ways of cutting costs. In all these
respects, ties among free countries have
strengthened in the postwar period and the free
■world has become more interdependent — to the
advantage of all. The enlarged flow of private
capital and aid funds and the opening up of
trade have been powerful stimulants to the re-
covery and sustamed growth of the free- world
economy.
Tlie effects have been no less remarkable for
the United States. As Europe and Japan re-
covered from the damage of the war and pros-
pered, they became stronger markets for our
own products. Similarly, the gradual rise in
per capita incomes of the developing countries
of the world has increased their import require-
ments from all industrial countries, and par-
ticularly the United States. Our exports have
risen by more than $7 billion in the past decade.
They have been a consistently buoyant force in
our economy — particularly when demand was
strong in Western Europe and Japan and slack
at home.
This sharp rise in our exports has been par-
ticularly noticeable in certain important sectors
of our economy. The product of one out of
every four acres of our harvested cropland is
exported abroad. We sell abroad from one-
fourth to one-third of our production of impor-
tant types of machinery, including construction
equipment, mining equipment, oilfield equip-
ment, textile machinery, and metal-cutting ma-
chine tools. Foreign markets are very impor-
tant to our aircraft manufacturing industry;
they make possible longer production runs,
lower unit costs, and, ultimately, lower air fares
in domestic as well as foreign travel. As a
whole, manufactured goods comprise more than
half of our total export sales, including the
varied products of our sophisticated teclmology.
Selling computers abroad may be a far cry from
selling whale oil candles, but the principle is
the same.
Our imports also have risen during this pe-
riod and have been equally important to our
economy and our well-being. They have
brought to our industry a variety of raw mate-
rials that we do not produce at all or produce
in inadequate quantity, as well as variety and
ijiterest in our own diet.
Our total trade — exports and imports — is
now more than $42 billion a year and provides
jobs for well over 4 million workers.
Impressive as they are, these statistics do not
point to a resting place, let alone a stopping
point. Neither we nor other free-world indus-
trial countries can afford to equate prosperity
with existing levels of protection. We must
not view our own or any other markets as spe-
cial economic preserves removed from reason-
able world market competition. Let us remem-
ber that those who cannot sell to us cannot buy
from us.
The signs all point to a more challenging and
more rewarding horizon. Free-world exports
are growing by more than $10 billion a year.
If we persevere with other countries on a course
toward freer trade, each year will see the crea-
tion of even larger marketing opportunities.
Strong American political leadership will be
necessary to realize these opportunities, and a
dynamic American economy will be necessary
to take advantage of them.
Trade and the Less Developed Countries
I turn now to another major focus of our
foreigii economic policy: the less developed
countries. Let us remind ourselves that these
contain three-fourths of the people in the free
world; that their average per capita income is
only $140 a year; and that only 35 percent of
them are literate. But these peoples have come
to realize that they are not doomed by Provi-
dence to live on the edge of starvation, that
modern technology makes it possible for man to
enjoy a decent standard of living. They are
determined to achieve a better life for them-
selves and their children. And they are ur-
gently pressing their leaders for substantial
economic and social progress.
They would benefit now from a more open
trading system and will gain all the more as
572
DEPARTSCENT OF STATE BUIiLETIN
they build their industries. But, at present,
they form the least dynamic sector in world
trade. Their central problem is to mobilize,
in growing amount and in proper combination,
the investment capital, the human skills, and
the natural resources, to imderwrite a sustained
increase in the productivity of their people.
We sympathize deeply with their aspirations.
And we understand their problems — especially
when we recall our own beginnings and our
long experience as a capital-importing nation.
In President Johnson's words, "What we de-
sire for the developing nations is what we desire
for ourselves — economic progress which will
permit them to shape their own institutions, and
the independence which will allow them to take
a dignified place in the world community." ^
We would want to help these peoples to make
progress even if there were no such thing as
communism. We would want to help, not only
because that is our nature as a people but be-
cause we know that, in the long run, there can-
not be much stability in a world composed of a
few who are rich and many who are poor.
But what we would want to do anyway be-
comes urgent against the background of the
underlying crisis of our time — the global strug-
gle between Communist imperialism and free-
dom. Both major branches of the Commimist
world are concentrating their efforts on the
less developed areas of the world. They make
the most of ignorance, frustration, and turmoil.
In dealing with the persistent Communist of-
fensives in Asia, Africa, and Latin America,
our foreign aid programs are of the utmost
value. And let us remind ourselves that their
total cost is only 3 or 4 cents out of our Federal
tax dollar — only 7 or 8 percent of what we spend
on our military defenses, less than v:e are spend-
ing on the exploration of space. We have nearly
2,700,000 men under arms — nearly 1 million out-
side the continental United States. Surely it is
worth 3 or 4 cents of our Federal tax dollar to
win this contest in the developing areas without
committing our young men, in large numbers,
to combat !
And if there should be any who think that
is too much to pay for that purpose, let me point
' Bulletin of May 11, 1964, p. 726.
out that more than 90 percent of our foreign
aid is in the form of American goods and serv-
ices. Our aid programs help our agriculture,
our metallurgical industry, our chemical indus-
tiy, and our machinery and machine tool in-
dustries. They are helping to develop tastes
and future markets for American products.
And more than half of our economic aid is in
the fomi of repayable loans.
Moreover, we are not alone in this business
of extending aid. The countries which we
helped to their feet through the Marshall Plan
have joined us to help others. So have Japan
and, on a smaller scale, other nations in the
Pacific.
In 1963 the long-term capital flow to the de-
veloping countries from the United States
amounted to $4.8 billion and the flow from
other industrial free-world countries totaled
$3.4 billion. These figures include both govern-
ment-to-government aid and private investment
capital. The disturbing fact is that the private
investment portion has not grown for some
time.
It is essential to increase the flow of private
capital to the developing countries. There is
no quicker or better way of transferring tech-
nology and organizational skills.
Leaders in some of the new countries, espe-
cially those whose experience with capitalism
has been primarily in furnishing it raw materi-
als, do not yet understand what private enter-
prise can accomplish. But other countries
which started out under the influence of more
or less socialistic dogmas have been learning
from experience.
American business is becoming increasingly
alert to the great difi'erences in conditions and
outlook among the developing countries and is
adjusting to these individual situations. The
work of the Business Council for International
Understanding typifies tliis constructive trend.
This group of American businessmen met in
New Delhi this spring with some of their In-
dian counterparts and with Indian government
officials most concerned with industry and for-
eign investment. From this meeting, I am sure
tliat American businessmen gained a better ap-
preciation of the opportunities and require-
ments for doing business in India and the
Indians gained a better appreciation of how
OCTOBER 2G, 1964
573
they could profit from American private invest-
ment and how they could attract it.
This administration is intent on doing its
share to encourage this trend. Our Department
of Commerce provides extensive services to
American firms interested in investing in the
developing countries. And our missions over-
seas report on investment opi>ortmiities and
offer knowledgeable assistance on local condi-
tions to American businessmen who go abroad
to look mto these situations.
We believe a more powerful incentive is
needed. For this reason, on March 19, 1964,
President Johnson recommended ^ and sent to
Congress a tax credit bill as one measure to
"utilize private initiative in the United States —
and in the developing coimtries — to promote
economic development abroad." Through this
tax incentive we hope to increase the amount of
American private investment in the less devel-
oped countries, emphasize the role of the pri-
vate sector, and promote the transfer of needed
teclmical and managerial skills.
Raising Agricultural Productivity
Looking ahead, I believe tliat perliaps the
greatest area of challenge will be in agricul-
ture— the most basic of all industries. Most of
the developing countries will need to put more
emphasis on improving their agriculture and
on making their rural areas a more active mar-
ket and stimulus for manufacturing. Private
investment and the private sector are central to
the realization of these goals.
Certainly collectivist methods cannot do the
job. Every Communist nation has suffered
from chronic difficulties in food production —
difficulties inherent in collectivized agi'iculture,
central direction of industrial production, and
other features of Communist economic organi-
zation. The people of the developing countries
have become increasingly aware that commu-
nism is not a shortcut to economic progress —
that it is, in fact, terribly inefficient.
The need for more emphasis on agriculture
and for stronger incentives and better tech-
nology to raise agricultural productivity would
seem self-evident. Roughly three-fourths of
" For text of the President's message on foreign aid,
see ihid., Apr. 0, 19C4, p. 518.
the people in these coimtries are employed in
agriculture or allied activities. In one way or
another the farmer must have the organization,
the equipment, and the impulse to better his
position.
An even more fundamental necessity under-
lies this proposition. Agricultural production
in the developing areas, and in Asia and Latin
America particularly, is growing less rapidly
than popidation. In fact, for the past few years
grain requirements have been growing by 8 mil-
lion metric tons a year while production has
been stagnant. As a result, countries in these
regions are becoming more, rather than less, de-
pendent on imports. This is an unliealthy situ-
ation, and it could beeome an untenable one.
If current trends aroimd the world continue,
the point will not be too far off when world
food stocks will simply not be enough to meet
minimum needs in the deficit areas. Indeed,
food imbalances could become so huge that the
necessary supplies, even if they were available,
could not physically be moved around the
world or even properly distributed within the
food-short countries.
The solution must lie, in large part, in a rise
in grain output in the developing countries.
And since additional land can no longer be
brought into production in most, of these comi-
tries, it will be essential to increase yields per
acre. Developing and industrial countries to-
gether will have to apply to this task the kmd
of effort, planning, and determination that the
modem world now applies to the conquest of
space.
There is a large gap in grain yields per acre
between the most productive and the least pro-
ductive agricultural countries. To narrow this
gap will require a systematic and comprehen-
sive program, including :
— a large-scale technical research effort tai-
lored to individual soils and climates,
— massive quantities of fertilizer and other
capital inputs,
— new methods to control water for irrigation,
— the organizational ability to apply tJiese
teclmiques effectively to the land,
— adequate price incentives,
— more fann credit,
— better marketing arrangements, and
574
DEPARTMENT OF STATE BULLETIN
— the inflow of low-priced manufactured in-
centive goods from urban industries.
American companies, American experience,
and American teclmology can play an enor-
mously helpful role. The astomiding increases
in grain yields that continue to be achieved in
American agriculture are the result of effective
teamwork between the American farmer and
American industrial companies. We should be
able to apply the same techniques in the develop-
ing countries. We have made the greatest
advances in agricultural chemistry, our farm
extension service has been a model for other
countries to follow, our companies are experi-
menting widely with the desalting of sea water,
and our great distribution companies and their
catalogs pioneered the way toward making
urban-rural trade an important stimulus to
economic growth.
I have been talking about our foreign eco-
nomic policies. At the risk of reviving an old
phrase which left a bad taste, we might call
these policies "dollar diplomacy — modem
style." But the emphasis must be on "modern
style," for these policies are as far removed from
the old "dollar diplomacy" as modern capitalism
is from the primitive capitalism which Karl
Marx obsei-ved.
Our foreign economic policies today are
designed to strengthen our economy and, in the
words of the preamble of our Constitution, to
"secure the Blessings of Liberty to ourselves
and our Posterity" — not by exploiting anyone
else but by moving forward together with others
toward a better life. Our goal in President
Jolmson's words is "a world of peace and justice,
and freedom and abundance, for our time and
for all time to come." *
■* For text of President Johnson's state of the Union
message of Jan. 8, 1964, see ibid.. Jan. 27, 1964, p. 110.
Secretary Rusk's News Conference of October 8
Press release 442 dated October S
Secretary Rusk: Good morning, gentlemen.
I have no opening statement. I am ready for
your questions.
Q. Mr. Secretary., Chancellor Erhard has
{ndlcated the United States and Germany might
consider forming the multilateral nuclear fleet
hy themselves if the other allies decide not to go
along. Would the United States do this?
A. Well, this is a contingency that has not yet
arisen. We and the Gennan Government agree
that the multilateral force should be a force
which has the participation of a considerable
number of NATO countries. As you know,
there is a working group of eight nations that
has been meeting in Paris to look into this
matter. Our own target continues to be that
that was stated in the joint communique of
Chancellor Erhard and President Jolmson in
1 For text, see Bulletin of June 29, 1964, p. 992.
June of this year,^ in which they said that they
were agreed that the proposed multilateral
force would make a significant addition to this
military and political strength — that is of
NATO — and that efforts should be continued to
ready an agreement for signature by the end of
the year.
Now we are at the end of the first week in
October. That group in Paris is working con-
tinuously. We still have the purpose of going
ahead with that force with the participation of
a considerable number of NATO countrias, and
I am sure that that is the objective both in
NATO and both — and in Bonn and in Wash-
ington. Therefore I think that these contin-
gencies, alternative contingencies, have not
arisen, our purpose continues to be the same,
and I am optimistic about the outcome.
Q. Mr. Secretary, while we are on the suhject
of NATO and nuclear iveapons, Senator Gold-
water says that the NATO Commander in Chief
OCTOBER 26. 1964
575
has some authority to use nuclear weapons. Is
that correct?
A. Well, I am not going to embroider on what
the President has said in his Seattle speech.^
This is a matter for the President and for the
Secretary of Defense, and my task as Secretary
of State is to keep this problem very much on the
hypothetical list, because my purpose is to try
to work out our relations with other countries
to protect the vital interests of the United States
without having that issue come to the front.
But I have nothing to add whatever to what the
President said m his Seattle speech on that
subject.
Q. Mr. Secretary., there have been reports
jrom Saigon, in fact even some lohlspering here
in Wa.shinfffon, to the effect that the administra-
tion is now considering some major turn in its
policy toward South Viet-Nam but is holding
any decision off until after the election. I
wonder, sir, if you have any comment on this?
A. Yes. I should like to hit that one just as
hard as I possibly can. South Viet-Nam is a
major issue of war and peace. The question of
whether Hanoi and Peiping will leave their
southern neighbors alone is a major issue. This
is not a matter which any President of the
United States can deal with in electoral terms,
and I can tell you — and I hope it is not an indis-
cretion— that the President has made it very
clear to his own principal advisers that the de-
cisions that are required with respect to Soutli
Viet-Nam have nothing to do with the Ameri-
can elections. No President can take such a
view on such a far-reaching and basic issue of
war and peace. And so our policy is to do
everything that we can to assist the Vietnamese
to meet this problem.
We cannot with certainty predict the future,
because there are those in Hanoi and Peiping
who are helping to write the scenario on this
problem, but we are deeply committed to the
security of Southeast Asia and to the security
of South Viet-Nam. This has notliing to do
with our electoral process liere. We are not
concealing anything or postponing or marking
•/&M., Oct. 5. 1964, p. 458.
time or refusing to make the decisions that are
required by that situation because there is an
election going on in this country. No Presi-
dent could do that. Republican or Democratic,
and there is just nothing in that kind of talk
whatever.
U.N. Peacekeeping Assessments
Q. Mr. Secretary, sir, with the U.N. session
due to open in November, the United States
and the Soviet Union appear to be headed on
a collision course over the matter of the peace-
keeping assessments and loss of vote. Do you
see any prospect for resolving this issue?
And, secondly, if this issue is not resolved
amicably, loould you anticipate tlmt it could be
a blockade to other East-West adjustments?
A. Well, Mr. [Murrey] Marder, first let me
emphasize that this is not an issue between
the Soviet Union and the United States. This
is an issue between the Soviet Union and cer-
tain other countries who have not paid their
assessments in accordance with the decisions
of the General Assembly and all the rest of the
United Nations. The attitude of the Soviet
Union on this matter is somewhat like the
troika proposals. Their attitude deeply affects
the constitutional structure of the United Na-
tions. Now, the ability to assess contributions
is the only mandatory authority which the ■
General Assembly possesses, and this is the only
mandatory authority in which the great bulk
of tlio United Nations membership participates.
Every small country member of the United
Nations has a stake in this constitutional issue
in the United Nations itself; so the issue here
is not a bilateral issue between the United
States and the Soviet Union. The question is
whether the United Nations is going to con-
tinue on the basis of the charter, and article 19
is very precise and specific on this point.
So that we hope very much that some arrange-
ment can be made by which this issue is re-
moved. We are not asking for or looking forj
some disagreeable aiid bitter confrontation on
this point. But we do recognize that this point
is essential to the future integrity and structure'
of the United Nations and that every member;
has a stake in it. Now we hope that somehow
576
UEP.VnXaiENT OF STATE BtTLLETlN
some arrangement can be made, some payments
made, some solution found before the General
Assembly opens in November. But we have no
doubt whatever that there is involved here a
basic constitutional issue for the United Na-
tions as a whole. It is in no sense a bilateral
issue between the United States and the Soviet
Union.
Q. Well, sir, just to follow that xip, on the
second part of that question, while it is not
essentially a bilateral issue between the United
States and the Soviet Union, if in fact this is-
sue is not agreed to in the United Nations would
the net effect of the disagreement he a general
impediment to measures to reach further dimi-
nution of tension between East and West?
A. Well, I think it is too soon yet to comment
on that. You will recall that, in the troika pro-
posal when the Soviet Union found itself faced
with the near unanimity of the entire United
Nations, they found a way to modify their atti-
tude. And I think that it is important for the
overwhelming majority of the United Nations
to make it clear that on this issue, this basic
constitutional issue, some adjustment in the
Soviet position will have to be found.
I can't predict for you what will happen a
month from now when the General Assembly
opens, but of course this is an issue which will be
there — unless it is solved before then — it will be
there when the hammer falls for the opening
of the General Assembly, because it will arise
in connection with the first vote cast in the pro-
ceedings of the General Assembly.
Q. Mr. Secretary/, some of the nonalined coun-
tries attending the Cairo conference suspect that
it is the United States that is behind Mr.
Tshombe^s [Moise Tshombe, Prime Minister of
the Republic of the Congo'\ insistence upon be-
ing seated there. Would you care to comment
on this, sir?
A. Well, the question — the precise answer to
your question is that we are not behind anything
in this particular situation. But we are quite a
few thousand miles away in a situation that is
changing from hour to hour, and I would pre-
fer not to comment on it any further. I think
it is of some concern, some importance, that in
an international meeting delegates undertake to
determine who siiall represent governments in-
vited to the meeting, because if that principle
were followed very far it could go a very long
way and give rise to a great many complications
in the very structure of international affairs.
But we are not involved in this particular
episode, and I think it is better for me not to say
very much about it.
Q. Mr. Secretary, a moment ago in connec-
tion with this U.N. problem, you mentioned
the — you used the words '■'' arrangement'''' and
'■'' adjustment.'''' Just to clarify your view,
xoould the United States support any solution
that loould be anything less than full com-
pliance with the assessments and full pay-
ments?
A. No. I think there has to be an applica-
tion and enforcement of article 19 of the char-
ter. That is a basic attitude not only of our
Government but of a great many others.
Eemember that the World Court decision on
this subject was ratified, approved by a major-
ity of something like, I think, 75 to, what was
it, 15 or 17, in the General Assembly.' And
the World Court decided that these were proper
assessments, they are part of the regular ex-
penses of the organization, and that they were
compulsory upon members. So that there is
no question whatever about our view and the
view of what we consider to be a very substan-
tial majority of the United Nations on tliis
point.
Public Support for Main Lines of U.S. Policy
Q. Mr. Secretary, you have done a good deal
of speaking within the country. I wonder if
you could reflect upon that for a minute and tell
us what parts of the administration'' s foreign
policy seem to puzzle or perplex people most
'The General Assembly on Dec. 19, 1962, adopted a
resolution (U.N. doc. A/RES/1854(XVII.) ) accepting
the opinion of the International Court of Justice by a
vote of 76 to 17, with 8 abstentions ; for bacliground
and texts of two resolutions adopted by the General
Assembly on Dec. 19 on financing peacelvceping opera-
tions, see Bulletin of Jan. 7, 1963, p. 30. For back-
ground and texts of seven resolutions on financing
adopted on June 27, 1963, at the fourth special session
of the General Assembly, see iUd., July 29, 1963, p. 17a
OCTOBER 20. 1964
577
as reflected in the questions that you get as you
go around the country?
A. "Well, I felt, as I have been around the
coiuitry in the last 3i/^ years, that there con-
tinues to be a very broad public support for the
main lines of the bipartisan policy of the
United States in this postwar period — support
for the United Nations; support for our great
alliances; support for foreig;n aid, although
people would be glad to be relieved of that bur-
den if it were possible to be relieved; support
for trade expansion, for the Peace Corps, for
the Alliance for Progress, and all these other
great elements in our bipartisan policy.
Now, it is true that we are carrying heavy
burdens, but freedom has never been free and
those burdens are necessary. And I have my-
self gotten the impression in my discussions
with groups, both in public sessions and in pri-
vate conversations, that most of the American
people understand the requirements of this
present world situation. I have not myself
encountered, shall I say, bitter partisan aspects
on this matter, although I'm sure that those
with whom I have talked include supporters of
both principal candidates. But when you can
sit down in a quiet conversation with people, I
think you will find that reason normally
prevails.
I could illustrate that in another way, Mr.
[Max] Frankel. I have attended now perhaps
at least 200 executive sessions of congressional
committees to talk about difficult and complex
and sometimes dangerous foreign policy issues.
Not once have the judgments of those commit-
tees divided along partisan lines— not once.
Now, there have be«n differences of view be-
cause many of these problems involve on -balance
decisions, almost knife-edge, hairline decisions,
because they are complicated and difficult. But
those differences of judgments have not fol-
lowed partisan patterns in these executive ses-
sions where you can talk out the full difficulty
and the full agony of these situations.
I don't really l)elieve, despite the fact that
we are in a vei-y, shall we say, lively electoral
campaign, I don't really believe that the princi-
pal issu&s in our relations with the rest of the
world are partisan in character or accepted by
the American people as being partisan in char-
acter.
OAS Cooperation on Cuban Problem
Q. Mr. Secretary?
A. Yes?
Q. Mt. William Miller, the gentleman against
tvhom, for one brief shining moment you were
considered a jjossible oppanent, has brought up
the issue of the Cuban situation again, saying
th-at our policy doesni't offer anything to the
people in Cuba who want freedom there. I
wonder if you could revieio whether you believe
our policy tliere is bearing fruit?
A. Well, that invites a considerable essay,
because the present administration was not re-
sponsible for the prevention of a Communist
Cuba. We were confronted with the problem
of cure, and the cure is more difficult than
prevention.
But we felt that it was verj' important to
work in harmony with and in solidarity with
the other members of this hemisphere, that this
should not be treated as solely a bilateral prob-
lem, partly because to the extent there was a
problem it was more of a problem for many of
our neighbors than it was for the United States,
given our ix)wer and given the solidarity and
integrity of our own political institutions.
We have been very much encouraged by the
attitude of the rest of the hemisphere toward
this problem. Whereas in the autumn of 1960 *
it was not possible for the hemisphere even to
refer to Cuba as the source of a tlireat, in the
meetings of foreign ministers at Punta del Este
in l^Q'i,^ at the time of the Cuban missile crisis,^
and at the end of July — in Washington — of this
year,' it was veiy clear tliat the hemisphere
has moved to the full recognition of the nature
of this threat to the hemisphere and has taken
steps to deal with it and meet it.
Now, I think it's very important that we
move on an OAS [Organization of American
States] basis, and I believe that has been sug-
gested also by some of the candidates on the
other side. But that carries with it the obli-
gation to consult witli and act in solidarity with
' For backKrouncl, soe ibid., Sept. 12, 19C0, p. 395.
" Ihid., Feb. 19, 1962, p. 270.
" Ibid., Nov. 12, 1962, p. 720.
' Ibid., Auft. 10, 1964, p. 174.
578
DEPARTMENT OF STATE BTILLETIN
the otlier members of the hemisphere m all
aspects of this problem.
Now, in the most i-ecent meeting of the foreign
ministers/ we applied what miglit probably be
considered the remaining peaceful measures
with respect to Cuba, to make it clear to Castro
that his attempt to interfere in other countries
of this hemisphere must stop and must stop
now. We hope very much, all of us in the
hemisphere, that that message gets through and
is taken seriously, because it was a most serious
step.
As you luiow, 19 of the 20 members of the
hemisjDliere have broken relations with Castro.
Trade has been broken between the hemisphere
and Castro, except in foodstuffs and medicines.
Sea transportation has been interrupted except
as required for humanitarian purposes. And
other countries in other parts of the world have
been asked by the hemisphere to consider what
steps they can take to express their solidarity
with this hemisphere in dealing with this
problem.
Now, if the Cuban government continues with
any program of interference with other coun-
tries in this hemisphere, then I thinlv we shall
have a very serious situation and we shall have
to deal with it on a hemispheric basis.
India's Nuclear Capacity
Q. Mr. Secretary, loithin the last week India
has said, in light of some possibilities of Chinese
nuclear explosion, that it can change its policy
and start developing nuclear toeapons loithin
a year or 18 months if they consider it necessary.
What would the United States attitude he to-
ward this development if India does decide it
was necessary to change its policy?
A. Well, it is my impression that the Prime
Minister [Lai Bahadur Shastri] and other of-
ficials in the Indian Govenmient have indi-
cated that their attitude moves in the other
direction. It is true, as I think all of us know,
that India has the capacity to move, and to
move fairly promptly, into the nuclear weap-
ons field. They have the necessaiy capacity
in nuclear physics, they have the necessary in-
dustrial plant. But they have indicated that
they do not intend to go down this trail.
Wo feel that India's decision to direct its
exploitation of nuclear energy to peaceful pur-
poses only is a great contribution to world
peace and to the welfare of humanity, both in
India and throughout the world. India's pol-
icy, which was restated by Prime Minister
Shastri just yesterday, sharfjly contrasts with
that of Communist China.
You see, here's a country that is among those
who could move in this direction and they have
announced that they do not intend to move in
this direction. And that is a course of re-
sti'aint and moderation which looks toward
the longer range possibilities of jDeace. You
see, it's not just a question of whether one
other nuclear power comes into being. The
question is what happens if 15, 20, 25 nuclear
powers come into being. And it is important
that all govermnents look at this as a very
sober problem, as to how we deal with this
Pandora's box that was opened some 20 years
ago.
Indonesia-Malaysia Dispute
Q. Mr. Secretary, particularly in the light of
the talks here this week with President Maoa-
pagal of the Philippines, would you assess or
reassess for us how you see the situation between
Indonesia and Malaysia 'and, also, whether you
sha.re the concern of the Philippine Govern-
ment that they, too, may become a target for
Indonesian infiltration or interference of some
sort?
A. Well, on the first point, it has been our
hope all along that such issues as exist between
Malaysia and Indonesia can be settled by peace-
ful processes. We joined with eight other mem-
bers of the Security Council in expressmg our
very deep concern about the armed actions taken
by Indonesia against Malaysia."
We see no reason, looking at it objectively
from a distance, as to why these two countries
need to be in any soi-t of armed conflict with
eiach other. We think it is very important that
the normal processes of peaceful settlement be
employed for whatever disputes exist and that
"/ft id.
"For background, see iUi., Sept. 28, 1064, p. 448,
and Oct. 5, 1964, p. 489.
OCTOBER 26, 1964
679
all parties act in accordance with the charter.
On the second part of your question, I point
out that our own defense arrangements with
the Philippines are very far-reaching, are with-
out qualification, and that if there is an attack
on the Philippines from any quarter, that is an
attack on the United States. And I would
think that it would be very reckless, indeed, for
anyone to suppose that there is any doubt what-
ever about our commitment to the security of
the Philippines.
Conference of Nonalined Nations
Q. Mr. Secretary, it has been several years
since the neutralists or nonalined leaders have
gotten together, as they are now in Cairo. Can
you say whether you see any new trends in the
direction of that movement or any new tone
in the content of the discussions that are going
on now in Cairo?
A. Well, quite frankly, I haven't had vei-y
much infonnation yet on just how those discus-
sions are going. They have not yet made pub-
lic pronouncements in a communique or in res-
olutions passed, at least that I am aware of.
Aiid, as you know, a certain episode involving
the Congo has taken the newspaper play away
from the other things that might be considered
by that conference.
So that, perhaps, if this press conference were
being held tomorrow, I might be able to be
more responsive to your question. But it is
too early yet, I think, to say.
As you Icnow, President Johnson sent a mes-
sage '" to the conference which outlines our at-
titude toward it. We hope they have a good
meeting and that they deal responsibly with
some of the very large issues that are before
the world community.
We may get some indication from that meet-
ing as to attitudes on questions that will un-
doubtedly come up before the next meeting of
the General Assembly. But it is too soon yet
for me to comment.
Q. Mr. Secretary, yesterday Prime Minister
Shastri proposed that a delegation he sent to
" See p. 581.
China to try to dissuade the Peiping govern-
ment from detonating some kind of nuclear de-
vice. I loonder, sir, if it would be the position
of the U.S. Government to support this kind
of general approach to the Chinese, to dissuade
them?
A. Well, this is a nonalined conference. And
it is not for me to get in the way of a nonalined
conference by expressing a view on this matter.
But I do recall that almost all of the members
of this conference now meeting in Cairo have,
in times past, expressed their very great inter-
est in the elimination of nuclear testing and,
particularly, nuclear testing in the atmosphere.
This has been made clear at the United Nations.
Their spokesmen at the Geneva disarmament
conference made this clear. I think all of them
who were there, or practically all of them who
were there, have signed the nuclear test ban
treaty.
So I would suppose that the prospect of the
resumption of atmospheric testing would be a
matter of deep concern to them. How they
would deal with it is for them to judge.
Yes, sir.
Viet-Nam and Laos
Q. Mr. Secretary, going hack to an earlier
question on Viet-Nam and forgetting the elec-
tion date for a minute, do you foresee a shift
in the administration policy toxoard a deeper
involvement in the political, military, and eco-
nomic situation there; of course, assuming that
President Johnson is reelected?
A. Well, it is not for me to try to predict
the future. As I say, on a day-by-day and
week-by-week basis, we make the necessary de-
cisions in consultation with the South Viet-
namese Government that we feel are required
by the situation.
But, since there are others who are writing
the scenario for the future, I don't want to
undertake to be a prophet here. I do want to
make it very clear, however, that we are not
going to pull away from our connnitmcnts to
the security of Southeast Asia, and specifically
South Viet-Nam.
Q. Mr. Secretary, you have seen General
680
DEPARTMENT OF STATE BULX.ETIN
Phoumi Nosavan this xoeek. I wonder if you
could tell us your evaluation of the situation
in Laos after the Paris conference, and what
i& going on there now?
A. "Well, we regretted that the talks, which
have been going on in Paris, have not thus far
sliown any determination on the part of the
other side to comply with the Geneva accords
of 1962." As you know, deputies remain in
Paris, and there is a possibility of additional
contacts; and some of the principals are now
back in Laos, and they might have contacts
there.
But our policy continues to be in support of
the Geneva accords of 1962. It is our very
deep conviction that, if all the foreigners would
leave the Laotians alone, they would work out
their own atfairs without violence and there
would be no threat to any of their neighbors.
We see no reason why, if there is a modicum
of good will on the other side, we could not
pick up the 1962 accords and bring about the
full implementation of those accords, because
the underlying policy of those accords must
leave the Laotians alone so that they could
work out their own affairs in their o\va way.
Q. Thank you, Mr. Secretary.
A. Thank you.
President Johnson Sends Message
to Nonalined Nations Conference
Following is the text of a message from Pres-
ident Johnson to the Conference of Nonalined
Nations, which opened at Cairo, United Arab
Republic, on October 5.
White House press release dated October 5
October 5, 1964.
Peace in our troubled world is the hope of
all men of good will. All governments that
would faithfully serve their people, that would
strive to realize their dreams, must have the
unwavering quest of peace as a primary con-
cern. So the delegations gathered in Cairo
have an opportunity in their deliberations to
" For texts, see Bulletin of Aug. 13, 1962, p. 259.
help advance this gi-eat common cau.se of man-
kind.
You have recognized this opportunity — and
this cliallenge — by making the safeguarding
and the strengthening of world peace your first
order of business. Every positive step taken
to settle international disputes peacefully — or
to eliminate their causes before tliey reach
crisis proportions — brings us all closer to the
goal we share.
As you all know, the United States has been
in the forefront of those seeking to strengthen
world peace through sensible and safeguarded
measures of disarmament. We pledge our-
selves anew to this great task.
The United States enjoys friendly relations
with nearly all nations represented at your con-
ference. The United States shares with all
your peoples the same basic values and aspira-
tions— for human rights and the dignity of the
individual, for freedom from all forms of ex-
ploitation or domination by outside forces, for
the right of each nation, in every area of the
world, to develop political and economic sys-
tems of its own choosing, and to realize its own
dreams in its own way.
Unfortunately, these legitimate national
aspirations are still denied to many peoples.
Unfortunately, aggression often masks itself in
new forms of imperialism while attacking the
imperialism of the past. Unfortunately, the
centuries-old problems of poverty, illness and
illiteracy continue to afflict a high percentage
of the human race.
The United States has joined with most of
you in the past in trying to deal with these
difficult and complicated problems by peaceful
means. We hope to continue and expand this
cooperation.
A year ago this week, one of our most im-
portant accomplishments — the Nuclear Test
Ban Treaty — went into effect. We Americans
are proud of the role that President Kennedy
and the United States Government played in
obtaining that Treaty. It was a great step for-
ward— but it was not enough. We will not be
satisfied until the awesome power of the atom
is harnessed for peace alone, and men can live
out their lives with assurance that they will not
be suddenly obliterated in the night.
OCTOBER 26, 1964
581
John F. Kennedy is no longer with us. We
mourn his loss, and work to make real his
dreams for a better world. Another gi-eat
peacemaker, Jawaharlal Nehru, has also been
taken from us, but his visions for a better world
were never more alive.
"We Americans live in a diversified society.
We are a nation of many minority groups —
from almost every land. For tliis reason, we
cherish as a guiding principle the right of men
and of groups to hold diverse views so long, of
course, as the expression of those views does not
interfere with the security or the welfare of
others.
We defend that principle among ourselves.
We support and respect its application in our
relations with all responsible governments.
Finally, we gi-eet you as fellow members of
the United Nations, which has done so much
to guard the peace and to point the way to a
better world order. Tliere we join together in
a parliament in which the strong and the weak,
the rich and the less prosperous, the old and
the new nations share the floor, the platform
and the responsibility in common cause. These
are rights to be cherished by us all as we sustain
and strengthen our organization to better serve
us all tliis year, next year, and into our common
future.
Letters of Credence
Honduras
The newly appointed Ambassador of
Honduras, Ricardo Midence Soto, presented his
credentials to President Johnson on October 6.
For texts of the Ambassador's remarks and the
President's reply, see Department of State press
release 436 dated October 6.
Uganda
The newly appointed Ambassador of Uganda,
Solomon Bayo Asea, presented his credentials
to President Jolmson on October 6. For texts
of the Ambassador's remarks and the Presi-
dent's reply, see Department of State press
release 434 dated October 6.
President Johnson Meets With
NATO Secretary General
ManUo Brosio, Secretary General of the
North Atlantic Treaby Organization^ visited the
United States September 27-30. During his
visit he met luith President Johnson, Secretary
of State Dean Rusk, Secretary of Defense Rob-
ert S. McNamara. Secretary of the Treasury
Douglas Dillon, and other Goveimment officials.
On September 29 President Johnson gave a
luncheon at the White House in his honor.
Later that day Mr. Brosio accompanied the
President on an inspection trip to Offutt Air
Force Base, Omaha, Nebr. Folloiuing are their
excliange of toasts at the luncheon and their re-
marks on departing from, Offutt Air Force Base.
EXCHANGE OF TOASTS, WHITE HOUSE
White House press release dated September 29
President Johnson
Mr. Secretai-y General, distinguished guests:
I am very pleased today to welcome Secretary
General Brosio to this house.
He has come as the chief officer of the NATO
alliance and as the representative of half a bil-
lion people united in the defense of freedom
under the North Atlantic Treaty.
It gives me pride and a great amoimt of pleas-
ure to have the opportunity to have assembled
in this room some of the chief arcliitects of this
great imion and some of the men who have
played such an important part in its develop-
ment.
We are particularly honored to have the dis-
tinguished ambassadors from the member coun-
tries, our own respected General [Lauris] Nor-
.stad, who served with such distinction, our
former distinguished Secretary of State, Mr.
[Dean] Acheson, Mr. [Walter] Lippmann, and
others who have followed the development of
this great organization tlu'ough the years.
Secretary General Brosio comes here today
as our friend. He has served with great distinc-
tion as Ambassador of the Italian Republic to
this country. His country's readiness to let such
a talented public servant go to work for NATO
582
DEPARTMENT OF STATE BULLETIN
is real evidence of the deep interest and tlie very
vital role that his country, Italy, plays in this
very great alliance.
NATO owes much to the distinguished line of
men who have served in the high oflice of Secre-
taiy General.
NATO is a vast organization, but it is also a
most intimate alliance.
In 15 years it has grown impressively in con-
fidence, in strength, and in character. It is the
most successful and the most peaceful alliance
in liistory.
For us in the United States NATO is a tested
and a recognized cornerstone of United States
foreign policy. It has and it will continue to
have the strongest bipartisan support from the
leaders of this Government.
After 15 years the Atlantic area is more se-
cure than ever. Aggression and threats to free-
dom in Europe have been turned back.
All our peoples can take pride in what we
have really achieved.
But the real task of defending liberty and
freedom is never done. The security of our
alliance is only assured so long as we remain
determined and strong and insist on protecting
our people and their values.
I would have you know again that America's
commitment to this alliance is real, firm, and
substantial. It was not given lightly. The
considered American decision in 1949 to par-
ticipate in NATO — and some of the legislators,
like Senator [Clinton] Anderson, are in this
room today who participated in its creation —
represented a most historic break with isola-
tionism in this country. Now and in the future
this commitment remains as firm as facts and
strength can make it.
Allied defense is indivisible. American se-
curity depends on the security of tlie alliance as
a whole, and the alliance m turn depends upon
the strategic strength of the United States. We
believe that all of our adversaries imderstand
this, and we hoije so do the free peoples of the
alliance.
As our beloved and distinguished Secretary
of State has said so many times, this nation
does not seek to dominate anyone. Within our
alliance there is room for the efforts of us all,
and there is room for new patterns of shared
responsibility. We are ready and willing and
anxious — and eager — to work together with all
of our friends to make doubly sure that our
strength will be as clear tomorrow as it is today.
America seeks a growing partnership of
freedom, a partnership that is based on shared
respect of reality and shared responsibility for
effective defense.
NATO's strength has increased by virtue of
the additional sacrifices that the Congress and
our own country have made in the field of build-
ing our own strength in the last few years under
the unique and highly skilled leadership of our
great Secretary of Defense, Mr. McNamara.
Mr. Secret ai-y General, we in the United
States — all of us — believe in NATO, and that
is why we have taken this occasion to come here
and in our own little way honor NATO and
honor j'our presence in this house.
We all know that yours is a vital role in a
very vital organization. We are confident that
the affairs of this alliance have been placed
in good hands, in your hands, and while you
are Secretary General, and as long as you are,
we in America look forward to a period of the
closest possible cooperation and support.
■% ^ So, my distinguished guests, I ask all of you
to join me in a toast to Secretary General
Brosio, who serves a dynamic alliance and
through it serves the great cause in which all
of us believe so strongly — the cause of peace,
the cause of freedom, and the cause of justice
for all of the people of the world.
Secretary General Brosio
Mr. President, Your Excellencies, the Am-
bassadors, gentlemen: I will say only a few
words because I am really and deeply moved.
I am moved, Mr. President, by the honor you
have done me today in inviting me to this lunch
in the company of such a distinguished group
of businessmen in the United States and in
many allied and friendly countries.
I remember, Mr. President, when I saw you
the first time, and then I had the opportunity
of meeting you several times at the Senate of
the United States. I remember my first meet-
OCTOBER 26, 1964
583
ing with you in your office when I called on you
as Leader of the Majority. I admired you then
as I admire you now.
I am moved because I am back here in Wash-
ington where I worked over 6 years for my
country and for the friendship between the
United States and Italy, moved because around
here are so many people who cooperated with
me then, assisted me with their advice, with
their opinions, with their moral support.
Now I come here in a different capacity. I
am no more the representative of one ally in
the NATO alliance, but I am the servant of the
15 countries of the alliance.
You were so kind, Mr. President, as to use
the word "leadership." Leadership of the al-
liance belongs to the countries and especially
to the countries who more deserve it by the
effort they contribute to its strength and to its
moral power. I am only, as I said, a faithful
servant, and I hope I will always be.
Certainly I am proud that an Italian has been
chosen for this post, and I am glad that a Euro-
pean has been chosen again for this post, as it
has been three other times.
I am proud to follow such remarkable men as
Lord Ismay, as Paul-Henri Spaak, and as Dirk
Stikker.
The North Atlantic Alliance is essentially the
mutual defense of Europe and America, and it
is good that a European represents the alliance
at this post of Secretary General, because there
is great hope for the alliance, Mr. President, in
the possibility that Europe through a larger
and larger and to a deeper and deeper degree of
unity may contribute better with more strength,
with more authority, to these alliances of ours
which should and will remain as the essential
pillar of our freedom and of our peace.
I am deeply conscious of this. The only
contribution I am sure to bring to the alliance
is a part of the little experience, through the
confidence of my Government, I have gathered
in different countries in the last 18 years. The
only contribution I am really sure to bring to
the alliance is the contribution of a loyalty with-
out reserve, of a conviction without limitations,
and with an entire dedication and a will to give
all my energies to the consolidation, to the con-
tinuation, and to the success of these alliances.
I entirely share your opinion, Mr. President,
that the ultimate goal of the alliance apart
from defense is peace.
I am profoundly convinced that, if pence has
been preserved with freedom in Europe and in
our area, that has been due to the strength and
to the unity of the alliance; and as long as the
strength and the unity will continue, we will be
safe, and today, if something happened in a dif-
ferent direction, we would be in danger.
These are the feelings which move me today,
and I owe this visit to your great country which
has given such an amazing contribution with
such generosity, with such a wisdom, to our al-
liance.
I am glad that I am here, and I assui'e you,
Mr. President, that this day has confirmed my
conviction that I will always find here full
support and full comprehension.
I am not saying just the usual words of com-
pliment if I say that my talks these days with
the most responsible people of the United States
Government have been extremely frank, ex-
tremely useful, and we have tried to get into the
main problems of the alliance as deeply as we
could, with the sole intent of understanding each
other and seeing generally what should be done
and in which direction we are going to move in
the future.
I believe that this will be the good direction
and that with your help, Mr. President, with the
help of your country, we will succeed. We will
succeed in our tasks in defense of peace and in
defense of freedom.
May I thank you, Mr. President, and may I
thank all of the gentlemen here who have hon-
ored me with their presence. May I assure
them and assure you, Mr. President, that I will
leave this country encouraged and determined
even more to fulfill my duties unflinchingly and
to be worthy of the great honor which has been
done to me and of the great confidence which
has been shown for me.
DEPARTURE REMARKS, OMAHA
White House press release dated September 29
President Johnson
General [Thomas S.] Power, General [Cur-
tis] LeMay, ladies and gentlemen: The Secre-
tary General and I have now completed almost
584
DEP.\RTMENT OF STATE BULLETIN
2 liours of liard work with this brilliant and
dedicated staff of tlie Strategic Air Connnand.
I think that both of us have gained fresh under-
standing of the intimate relation between the
strategic strength of the United States and the
defense of the North Atlantic alliance. We
have had presented in some detail the military
facts and figures which support the great and
simple political reality that is set forth in our
treaty, namely that the defense of one is the
defense of all.
AYe have learned again what we already
knew, that the strength and the skill of (his
command are absolutely vital to the peace of
the Atlantic world. We recognize that the mis-
sion of this command is peace, and we had re-
lated to us this afternoon the capacity, the num-
bers, the procedures, the overall plans, and the
great amount of thinking that has gone into
accomplishing that mission, namely preserving
the peace. This day has thus brought new en-
couragement to me, and I hope also to my
friend, the distinguished Secretary General.
So we are grateful to all of you and to the
State of Xebraska for all that we have seen.
We also thank you for your distance from
Washington — on the plane ride out and back,
Mr. Brosio and I are finding a chance for some
quiet conversations together concerning the
future ne«ds and the future hopes of our great
alliance. The success of NATO is evident in
every member country, in peace and prosperitj',
and in confidence in the future. Yet our very
success creates new problems for tomorrow.
The work of freedom is i-eally never done,
and as we go back to these discussions let me
thank all of you again for this very jDrofitable
afternoon in Omaha. I have been here several
times during the 13 years that General Power
has been connected with the Strategic Air Com-
mand, and I have had numerous briefings from
him and from his staff. I feel, as I believe most
Americans do, deeply in his debt, and tlie debt
of the dedicated men who serve with him, for
their love of rountrj' and for their proficiency
to accomplish tlie mission assigned them. I
want to tliank the members of the families of
the men assigned to this command. They are
called upon to make many sacrifices, and just
as their men's mission is peace, I guess they
sacrifice with a smile, because wherever I go
and I see the Strategic Air Force, I am stimu-
lated and inspired.
Since General LeMay is here with us today,
all of you really represent a great monument to
his thinking and to his ])lanning. Now that
we realize the proof of the pudding is in the
eating and you have preserved the peace now
for almost 20 years, I think you can return to
your homes this evening with a proper and jus-
tified "well done" from your Chief. Inciden-
tally, just to show you that I really mean it, I
added a good deal to my budget this year by
insisting on a pay raise for all of you.
Perhaps my colleague, Mr. Brosio, would have
something that he would like to say to you now.
Secretary General Brosio
Thank you, Mr. President.
General Power, ladies and gentlemen of
Omaha : I want only to say that I am very
happy to be back in Omaha again. I have been
here a few j^ears ago, that is in 1957, when Gen-
eral LeMay was still commander here. I am
very glad to be back tonight.
I have seen new, interesting things; I have
learned a lot. But I am above all very deeply
honored to have had the opportunity of coming
tonight on the invitation and in the company of
the President of the United States. This is a
thing I am Jiot going to forget so easily.
I have seen really the contribution to the de-
fense not only of the United States but also of
Europe by this central base and command of the
Western World which is absolutely indispensa-
ble and decisive. That convinces me and con-
vinces all Europeans, I think, of the absolute
necessity of continuing the close links which
tie us in our essential Atlantic alliance. I also
share entirely what the President of the ITnited
States has told you just now — that all this huge
preparation, which needs an enormous amount
of intelligence, of skill, of patience, and of cour-
age, is intended only to defend peace, is intended
primarily to prevent war. And in these 15
years of life of the Atlantic alliance, thanks to
this preparation, thanks to our unity and soli-
darity, peace has been preserved. I am sure we
will be able to preserve it with the same methods
and with the same spirit for the future in the
interest of the freedom and the welfare of the
people of the United States and Europe.
747-205—64-
585
The New Role of Japan in World Affairs: An American Policy View
by Robert T7. Bamett
Deputy Assistant Secretary for Far Eastern Affairs '
President [Harold C] Case, members of the
planning committee, ladies and gentlemen: I
am deliglited to be in Boston, which, on author-
ity of Chris Rand, we must thinli of as the new
Athens of the Western World. I am honored
to participate in Boston's Japan Week.
The distinguished Ambassador from Japan,
Eyuji Takeuchi, has preceded me in this week's
program and given you, off the record, a diplo-
mat's view. Experienced observers of and par-
ticipants in business with Japan — Mr. Dudley
T. Colton, Mr. Robert W. Grimble, Mr. Charles
Schwarzler, Mr. Fumiliiko Togo, and Mr. Eli
Goldston — will follow me. Your general chair-
man, Mr. Prescott C. Crafts, will siun up these
sessions.
You now want me to discuss "The New Role
of Japan in World Affairs : An American Policy
View." The Japanese have something to say
about this, and I will not be didactic.
Ambassador Takeuchi endears himself at the
Department of State by his genius for sticking
to the point and for confining business to an
allotted time. I have observed Ambassador
Takeuchi and Secretary Rusk together. "And,
Mr. Secretary, liow much time do we have?" he
will ask. Sometimes it is 10 minutes, at others
unlimited. In lean, direct language he state;?
his case or sets the problem. When he must de-
part, the Ambassador and the Secretary will
have rounded off a solution or defined a new
problem. There are no loose ends to what both
know was done or must be done.
' Address made before a Conference on Doing Busi-
ness Vl'ith the New Japan, at Boston University, Boston,
Mass., on Oct. 6.
I promise to keep within my time. But I
cannot assure you that I will stick to the point
or leave no loose ends.
Let me say, first, something about partners.
For that, in a word, is the role Washington
hopes the new Japan will play with us.
Wlien the Emperor of Japan ordered his peo-
ple to lay down their arms on August li, 1945,
the United States and a prostrate and
bewildered Japan became engaged in a momen-
tous joint venture. Some — for a while — looked
upon Japan, I fear, as a wholly-owned United
States subsidiary. We have passed far bejond
that relationship, if indeed anyone ever sup-
posed it really existed; Japan is our full partner
today.
General partners in business share unlimited
common liability, and none can, except by some
showing of special wisdom or talent, control
decision by another. Today Tokyo and Wash-
ington are general partners in a sliared and dis-
turbing environment to which eacli brings dif-
ferent kinds of wisdom and capability. Neither
seeks to control the other. This is as it sliould
be. So long as Washington's partnership with
Tokyo is elastic and understanding, the free
world can enjoy margins within which to absorb
predictable setbacks and capabilities, over time,
to exploit effectively hoped-for breakthi"oughs
in the Pacific area as a wliolc. A fractured
Tokyo- Wasliington partnership would, on the
other hand, produce an earthquake in tlie power
balance of the entire world, the consequences of
which no one could foretell or contemplate with
equanimity.
Just this April, Japan became, with our
wholehearted support, a full member of the
586
DEPARTMENT OF STATE BULLETIN
OECD [Organization for Economic Coopera-
tion and Development] — hitherto an "Atlantic"
community of industrialized societies. Tal-
ented representatives began making that long
trip from Tokyo to Paris and back to partici-
pate in OECD business. From them Euro-
peans heard, and began to digest with new
interest, facts and figures of Japan's cuiTcnt
economic performance, future outlook, and
intention.
Japan's gross national product is $60 billion.
For a decade it has maintained a continuing 9.4
percent rate of growth. Exports as a percent-
age of GNP are 10 percent, compared to 16 per-
cent for Germany, 14 percent for the United
Kingdom, 4 percent for the United States.
Eeserves are fairly thin and stand at about
$1,900 million. Long-term investment funds
are unavailable from local resources. Medium-
and short-term come at a high 9-percent inter-
est rate. Its industrial production is fourth in
the free world. Japan's shipbuilding exceeds
that of all countries; its crude-steel production
is surpassed only by the United States and West
Germanj^ ; its synthetic fiber production is sur-
passed only by the United States. Chemicals,
metal products, and machinerj' made up $677
million of Japan's $1,500 million exports to the
United States in 1963. $1,619 million of the
United States total $1,704 million exports to
Japan in 1963 were made up of fuels, chemicals,
machinery, and raw materials. The United
States enjoyed a favorable balance of trade with
Japan of some $200 million in 1963. Japan,
next to Canada, is the United States' most im-
portant foreign market, and for Japan the
United States is both its most important source
of imports and outlet for exports. And so on
and on. Later today you will hear more about
these and other indicators of Japan's economic
powers and vulnerabilities.
Tokyo, Host to the Bank and Fund
But this kind of knowledge did not prepare
Japan's OECD visitors for the impact of Tokyo
in the flesh, when on September 5 they as-
sembled for the Bank and Fund meetings.^ And
these OECD visitors were but a part of the
2,000 representatives of ministries of finance,
foreign affairs, planning agencies, and private
financial and economic organizations, who came
to Tokyo from the world over, from comitries
affluent and poor.
From Haneda airport to Tokyo city, these
visitors were whisked over a multilane super-
higliway whicli passes high over a teeming city.
From their limousines they could glimpse sleek
cars on Japan's new monorail, moving swiftly
along with quiet, serpentine grace. English
is the language of the Bank and Fund. At
airport, shop, and hotel, the barrier of language
had been lowered ; everyone doubted that Paris
or Rome or Moscow could have matched this lin-
guistic accomplishment. At the Okura, and Hil-
ton, and Tokyo Prince, and Tokyo Otani — not
to mention the venerable and history-laden Im-
perial— luxurious facilities like those we know
in the Waldorf or Claridge's or the Maurice
were administered with the grace and thought-
fulness of a Swiss iimkeeper. Datsuns, Toyo-
pets, Nissans, swarmed streets and boulevards —
not a rickshaw was in sight. But our Japanese
hosts had arranged a city-wide transportation
net of buses and limousines to move delegates
quickly from where they stayed to business
sessions in the Heiean room at the Okura. Min-
uscule portable radios were available for all,
who could then move through a hall or corridor
and still listen to proceedings in the language
of their preference.
Those who strayed away from the predictable
paths of conference activity found even greater
surprises in things seen and heard. All of us
will be seeing on live TV from Tokyo in October
the breathtaking architecture of Kenzo Tange,
who designed the two great indoor stadiums for
water sports and contests like basketball and
boxing, just erected for the XVIII Olympic
games. Tokyo TV viewers saw videotape from
San Francisco of a graduate of Tokyo's Big
Leagues — Masanori Murakami — pitching for
the Giants. Japanese sports fans know that
Japan is the only country entering every event
in the Olympics. Both the United States and
- The Boards of Governors of the International Bank
for Reconstruction and Development, the International
Monetary Fund, the International Finance Corporation,
and the International Derelopment Association mot at
Tokyo Sept. 7-11, 1064. For text of a statement made
by Secretary of the Treasury Douglas Dillon on
Sept. 8, see Bulletin of Sept. 28, 1964, p. 444.
OCTOBER 26, 1964
587
the U.S.S.R. have failed to qualify for soccer
and field hockey.
Though they are now in full, smooth opera-
tion, in February the Tokyo Otani and the
Tokyo Prince did not exist. Nor did the many
wide new boulevards which now cut through
the heart of the city. Surely one of the most
fascinating music stores in the world is the
Nippon Gakki on the Ginza — Schirmer's and
Liberty's and Sam Goody's rolled in one. There
you hear musical instruments of all kinds,
mostly made in Japan, being sampled by stu-
dents, artists, and amateurs, who together pro-
duce a cacophony of Samisen, Vivaldi, Louis
Armstrong, and Beatles — amplified and all.
The Mikado matches the Lido, and Tokyo's
Symphony, our best. A porcelain-like Geisha,
in traditional dress and makeup, admitted
through my Japanese-speaking host that she
"twisted," of course, but everyone was "skiing"
these days. "Rashomon" and "Gate of Hell"
are but two familiar samples of an art which has
seized upon modern forms to express the elu-
sive, haunting truth sought by Ono No Ko-
machi, that !)th-century poet who wrote: "A
thing which fades with no outward sign is the
flower of the heart of man in this world!"
Few visitors who were in Tokyo last month
would now care to challenge what was put so
convincingly in a monograph jointly published
in March 19fi3 by our Committee for Economic
Development and by the Keizai Doyukai
(Japan's CED). Our CED said:
It is our general view . . . that tliere is notliius
in Japan's situation that malies it unduly hard for
her to accept the responsibilities or full partnership
with the other ma.ior industrial powers. At the same
time, we see no reason why .Tajian's industrial trading
partners should not extend to her the benefits of full
partnership in the Free World economic system.
Tlie Keizai Doyukai, at that time, expressed
the same thought a little differently:
The Keizai Doyukai . . . believes that the i)rineipk's
of protective trade contradict the principle of Japan's
equal partnership with the Free nations of the world
and that if Japan wishes — and we sincerely do — to be
an equal partner with them, Japan should discontinue
the remaining restrictive measures in Its economic re-
lations with those countries which are all designed to
protect Japan and its domestic industries from keen
international competition.
Knowing of Japan's progression in April to
article VIII status under the IMF — removal of
restraints on current foreign exchange trans-
actions— and having seen the streets and shops
of Tokyo, its docks, and its factories, Europe
can now consider credible that the wage and
welfare of the Japanese worker is on a par witli
his counterpart in Italy and France, and the
capabilities and vulnerabilities of Japan's econ-
omy like its own.
U.S. -Japanese Economic Problems
In passing from today to forecast of the
issues of tomorrow, I cannot do better than to
quote Yoshizane Iwasa, President of I lie Fuji
Bank and leader of the Japanese Economic
Mission to the LTnited States, who was in your
city last spring. Following that visit he wrote :
I believe that both Japan and the United States will
face the following important economic problems after
next year —
The first is the policy concerning world trade as
indicated in the Kennedy Round negotiations of the
General Agreement on Tariffs and Trade.
The second problem concerns economic aid to lesser
developed countries which was discussed at the I'nited
Nations Conference on Trade and Development held
in Geneva recently.
The third is a problem of the balance of interna-
tional payments and international liquidity.
The fourth problem that can he pointed out is that
concerning East-West trade.
Washington knows that, in fact, these are our
basic and common economic problems. "We are
reassured that negotiators from Tokyo and
Washington express views on them in ^•al•ious
forums of international discussion which are
nearly identical.
Still we have had our problems. Foreign
Minister Ohira's visit to Washington in August
1963 was clear evidence of the initial alarm —
and foreshadowed the continuing resentment —
Japan has experienced in being confronted
with our recently adopted interest eciualization
tax legislation. Japan still finds difficult to
understand a grant to Canada of an exemption
from that law,^ and not to Japan. Japan seeks
extension of its aviation rights in the Fnitod
States, and its public construes our rcsjionses
as unreasonably protectionist. Japan is con-
cerned over tlie effect of the Bartlett Act on its
' For background, see ihid., Aug. 12, 1903, p. 256.
588
DEPARTMENT OF STATE BULLETIN
J
traditional king crab fishing industry in tiu'
Bering Sea. All Japanese are apprehensive all
the time over all ramifications of United States
"Buy America" and "Ship America" practices
and policies. Tokyo wishes that it did not have
to be concerned with subjecting to voluntary
restrictions 30 percent of its exports to the
United States. On our side, we take exception
to evidences of Japan's resistance to U.S. direct
investment, quotas it applies to U.S. exports
of cars, photographic film, and certain kinds of
machinery. But discussion and negotiation
have kept these strains and disputes within
manageable limits. We can continue if neither
partner becomes blinded by notions of self-
virtue. We have witli Japan no problems more
troubling — or even as troubling — as many of
those we have with the Europe;))! Economic
Community and others in the Atlantic conmui-
nity.
Tlie path ahead cannot be trouble free. Dif-
fering economic calculations, political pres-
sures, history, and differing intuitions into the
imponderable realities of our times have in-
jected into our free-world relations the creative
refreshment of diversity. What the Commu-
nist world — confronted by the basic imity, the
growing strength, and the resolution of the free
world — has been obliged to bend to, in its suf-
ferance of growing polycentric tendencies, has
been, right along, one of our principal values
and sources of strength.
In this connection, let me speak especially of
the problem of East-West relations to wliich
Mr. Iwasa referred. As to trade, Washington
and Tokyo do view differently the mix of peril
and advantage in expansion of free-world eco-
nomic ties with Communist countries. Alike,
Tokyo and Washington abide by the rules of
embargo on sale of strategic materials laid
down by COCOM [Consultative Group— Coor-
dinating Committee] in Paris. Tokyo makes
none of the distinctions we do, however, in
treating member states of the Communist world
differently. For countries of this world, we
shape and apply controls to take account of
conduct M'ithin and conduct toward others —
even each toward others in it. Our restrictions
are less severe for Yugoslavia, Poland, and
Eumania than for the U.S.S.E.; less severe for
the U.S.S.R. than for Communist China, North
Korea, and North Viet-Nam, with which we
have no economic relations of any soit and
against whom we ap[)ly the Trading With the
Enemy Act of 1931. Tokyo differs with us in
attitude toward long-term credits; within the
past month it has extended credits to the
U.S.S.R. more generous in terms than we con-
sider wise from the standpoint of free-world
security; and private traders are selling a $20
million vinylon plant to Peiping. We would
prefer to see such credits and transactions re-
served for less developed countries.
We may also diifer in assessment of strategic
danger. Washington is always alert to Mos-
cow's intention — it wants to replace "capital-
ism" by "communism'' — and highly respectful
of its capability, nuclear and industrial, but
we incline to agree with Moscow's condcnma-
t ion of Peiping's militancy and seemingly reck-
less advocacy of war. In Peiping we see cause
for a large part of our $()00 million military
assistance programs in the Far East. It is to
meet the challenge of Maoist evangelism that
Washington looks for the support of friendly
and capable allies in the crisis of Southeast
Asia. In the United Nations and elsewhere we
try to forestall free-world actions that Peiping
could construe as acquiescence in, or approval
of, its militant intmsion into the affairs of its
neighbors and its troublemaking in far places
of Africa, Latin America, and the Middle East.
Not alone the free-world countries but the peo-
ple of China themselves would suffer, we think,
from enhancing at this time the prestige of
Peiping's pi'esent leaders.
Japan helps the people of Viet-Nam with
medical teams, transport equipment, techni-
cians, et cetera. It demonstrates bj' its aid pro-
grams and in many other ways its concern over
poverty in less developed countries and its de-
termination to preserve free-world values and
interests everj'where. Tokyo does not recog-
nize Peiping, nor has it voted for Peiping's ad-
mission into the United Nations. It recognizes
and tries to maintain friendly relations with
Taiwan. It seeks "normalization" of relations
with South Korea. Almost without plan, it has
begun, or tried to begin, to facilitate — by
example, by investment, by trade, by oifer of
OCTOBER 26, 1964
589
marketing cooperation — economic growth in
these two talented societies and to help create
systems which will surpass, by all indicators of
economic success, their Communist neighbors.
The people of new Japan have turned their
backs abruptly on a great-power status based
on military tradition and strength. Again a
great power, the new Japan is only on the
threshold of endeavors — some of which may in-
volve risks of waste or failure — which its people
should approve.
Prime Minister [Hayato] Ikeda may have
tried to foreshadow new responsibilities Japan
will be taking up when he told the Bank and
Fund delegations:
By .seeking to increase our imports of primary prod-
ucts and our exports of manufactured goods and by
steadily expanding our assistance to the developing
countries, we wished to contribute our share to the
peace and prosperity of the world. . . . Japan is a
country with long historical traditions and a rich cul-
tural heritage and, at the same time, a country filled,
I think, with youthful energy ever and actively seeking
to explore new horizons.
Japan and China
N"o one can visit Japan for long without being
aware of its special interest in mainland China,
as deep as our own, but different in perspective.
Ambassador Takeuchi gives us insight into this
perspective when ho said before the Common-
wealth Club in San Francisco on February 25 :
Continental China was, you might say, the fount
of Japanese culture. Before the second World War,
the Chinese continent was an important source of raw
materials for the Japanese economy and at the same
time an important market for Japanese products. The
Japanese recall with regret the time when they sent
their troops to the Chinese mainland, over a sustained
period, to occupy the laud and to inflict damages and
imiwse upon its people. As Prime Minister Ikeda
said recently in his speech to the Diet, the Japanese
people are conscious, day and night, of the presence
of 700 million Chinese on the China mainland sepa-
rated from us only by a narrow .s-trip of water. The
Japanese people have always known from history that
these Chinese were by nature peace-loving, highly in-
telligent, and that for many centuries they succeeded,
time and again, in freeing themselves from the op-
pression of foreigners and foreign culture.
The Japanese press and public do not view
quite as wo do tlic links wo are persuaded exist
between Peiping and Hanoi, Hanoi and the Viet
Cong, nor share our feai-s and anxieties about
Peiping's conduct.
Reflective Americans date their knowledge of
China mainly from the early 19th-century voy-
ages of New England's clipper ships and the
evangelistic drive which took our first mission-
aries across the Pacific. Today they are raw
from the disillusiomnents and Communist be-
trayals of 1915—49, the wounds of Korea, and
deep conviction that except for Cliina the Com-
munist siege of Saigon could more swiftly be
turned back.
The Government of Japan is as aware as we
of a common security problem. But for the
people of Japan — presented with today's head-
lines— it is not only the mass, the proximity, and
the melancholy recollection of military adven-
ture that obsesses imagination; China's past
glory echoes deep in Japan's racial memory, and
has for a thousand years.
In his classic, Japan, A Cultural History, Sir
George Sansom writes of Japan's borrowings
from Tang Dynasty China — the early 7th cen-
tury A.D., or about 150 years before the time of
Charlemagne — and describes that Cliina in these
terms :
Politically, China was at this moment perhaps the
most powerful, the most advanced and best adminis-
tered country in the world. Certainly, in every ma-
terial aspect of the life of a state she was overwhelm-
ingly superior to Japan. The frontiers of her empire
extended to the borders of Persia, to the Caspiau Sea.
to the Altai Mountains. She was in relations with the
people of Annam, Cochin China, Tibet, the Tarim
Basin and India ; with the Turks, the Persians, and the
Arabs. Men of many nations appeared at the court of
China, bringing tribute and merchandise and new ideas
that influenced her thought and her art. Persian, and
more remotely, Greek influence is apparent in much of
the sculpture and painting of the time and period.
We need not discuss the extent of these various alien
influences, we need only notice that their presence must
have been a stimulus to invention and creation in many
provinces of life, and at the same time remember that
the bulk of China was so great, her strength so formi-
dable that they could easily be absorbed without dis-
turbing the balance or the individuality of her own
culture. Along the streets of Chang-an there passed in
those days Buddhist monks from India, envoys from
Kashgar and Samarkand, Persia, Annam, Tonkin. Con-
stantinople, chieftains of nomadic tribes from the Si-
berian plains, officials and students from Korea and, in
now increasing numbers, from Japan. It is easy to
imagine the effect upon the eyes and minds of these last
of a capital so rich in interest and excitement, their de-
590
DEPAnTMENT OF STATE BULLETIN
spair at the sight of such profusion, their proud resolve
to rival it if hands and courage and restless ambition
could eke out their country's material shorlconiiiigs.
No doubt with that tireless curiosity and patient atten-
tion to detail which characterized their study of other
alien civilizations, with which they later came into
contact — those of Portugal, of Holland, and later of
the industrialized Occident of the 19th Century — the
Japanese .set themselves to observe and report on every
aspect of China's life, and to consider what features
they might profitably adopt in their own country.
Could we but imagine today a proud Mexico
city, capital of a troubled South American con-
tinent populated by 700 million people of a
single racial strain — and related to ours — a
common language and intermingled racial
memory, and ornamented with the monuments
of London, Rome, and Athens, rich with the
patina of time, we might appreciate the hold
Peiping has had upon the imagination of the
Japanese people. Is it surprising that the
Japanese sometimes become inattentive to
Americans who lecture them too dogmatically
about China? "We may regard Japan compla-
cent. They may often think that Americans
wait poorly.
So long as Japan's perspectives and ours,
Japan's knowledge and ours, Japan's experi-
ence and ours, can be exchanged and combined
in ever deepening understanding of the formi-
dable problems of our era — not least of all, those
in and with China — the free world possesses
assets far greater than an arithmetical sum of
our separate strength.
To sum up : Japan has emerged from its war-
time devastation and dislocation to become a
proud equal in eveiy way of the societies of
the advanced industrialized countries of the
world today. Japan can compete and stand
competition.
Tokyo and Washington look out upon the
international trading community with similar,
if not identical, views on what is needed to
create a worldwide nondiscriminatory, competi-
tive environment.
Both countries are troubled by the widening
gap between the affluent and less developed
countries of the world and are exploring meth-
ods by trade and by aid to close it.
Both Tokyo and Washington are alert to the
financial and fiscal policies of major countries
around the world and have devoted their best
talent to evolving international mechanisms for
forestalling potentially calamitous fluctuations
in production, trade, and payments trends
worldwide — in the less dev'eloped countries no
less than in those more developed.
Both countries have deep and somber experi-
ence with the peoples and institutions of the
Communist world, both in Europe and in Asia.
Both realize that, in a nuclear age, the patient
search for safety must move along varied and
precarious paths.
Within the frame of its dynamic and still
rapidly developing economic system, the people
of Japan are experiencing an improvement of
welfare and a flowering of scientific, artistic,
intellectual creativity which is the envy of
Asia.
In the context of these vast areas of common
interest and purpose, our occasional disputes
should remain but pinpricks, provided we ac-
cord to each other the respect and tolerance due
to true partners.
And so I conclude: Japan does have a new
destiny in the world at this point in midcen-
tury — not to control or to follow but to dedicate
itself to fulfillment of the promise in its present
system of social, political, and economic free-
dom so that neighbors will emulate, participate,
and share in its rewards.
U.S. and Japan Inaugurate
Television Link Via Syncom III
Folloxoing are texts of statements hy Presi-
dent Johnson, Secretary Eusk, and Foreign
Minister Etsusaburo Shiina of Japan broadcast
on October 7 as part of a program inaugurating
the transmission of television communications
between the United States and Japan through
the satellite Syncom III.
White House press release dated October 6, for release Octo-
ber 7
President Johnson
This broadcast which carries my voice and
my image to your television sets in Japan and
in the U.S. has been made possible by our new
communication satellite Syncom III. This
amazing satellite and the facilities in Japan and
in the U.S. which make its operation possible
OCTOBER 2 6. 19f>t
591
are the product of the vision and inventiveness
of our scientific communities — both government
and private.
I welcome the opportunity to applaud this
latest triumpli in tlie application of science to
the field of communications. It opens for us
new vistas of friendship and understanding in
the fields of education, cultural exchange, busi-
ness, and entertainment.
I think it most fitting that this system could
come into operation as the XVIII Olympic
games take place in Tokyo. The youth of the
world will be assembled there to engage in
sports. Some of these events had their begin-
nings in ancient Greece and others in ancient
Asia. For a few days Tokyo will be the scene
of a quest for excellence among the young peo-
ple of the world. Upon them all of our hopes
must rest.
It is heartening that the Olympic games — a
symbol of peaceful competition among na-
tions— can now be seen simultaneously by those
actually present and by peoples throughout the
Western Hemisphere.
The U.S. and Japan can be deeply gratified,
I believe, to have shared this diiimatic expres-
sion of partnership that binds them m many
fields. I now look forward to seeing satellite
systems extend throughout the world. It can
be a great contribution to international under-
standing— a vital stejipingstone toward lasting
peace.
Secretary Rusk
Mr. Foreign Minister: It is a pleasure for
me to join with you in this greeting to mark
the beginning of a new system of communica-
tion between Japan and the United States.
The success of the Syncom III project is an-
other inspiring step in man's great progress
in the field of communication.
To the navigable ocean, a broad highway
of access, and to the older air waves, we have
now added a new a\'enue through air and
space. This is the longest continuous com-
munication link in the history of mankind.
It is the forerunner of a global conununica-
tions .satellite system, connecting the Americas
with Asia across the Pacific, and then by air
with Europe across the Atlantic.
We look forward with lively interest to the
transmission of Olympic television by Syncom
III. This achievement will be an outstanding
demonstration of the technological capabili-
ties— and constnictive partnership — of our two
countries. It will further reinforce the bonds
of understanding and partnership between us.
We look forward to the exchange of other
television programs among Japan, the United
States, and Canada. The complex arrange-
ments for these exchanges involve the coopera-
tive eiforts of many participants — both private
enterprises and governments. They constitute
a significant international accomplishment and
are a source of deep satisfaction to my Gov-
ernment, as they must be to yours.
The growth of international understanding
is a child of communication. In this sense
every major technological breakthrough in this
field can be regarded as a step toward peace.
The challenges of our age are vast and
varied. The partnership between Japan and
the United States, of which the Syncom III
project provides exhilarating testimonj-, is an
important source of our confidence that free
men can meet those challenges with success.
Let us continue to move forwai'd together
toward a brighter futui'e for ourselves and
our children, in a world of freedom, justice,
and peace.
Foreign Minister Shiina
I am very happy today to be able to take
part in this program inaugurating the trans-
mission of television communications between
the United States and Japan through the com-
munications satellite Syncom III.
Over the past several years, the progress
made in the field of space development — and
particularly in the area of communications
satellites — has been enormous. As a result of
this progress, it has now become possible for
the United States and Japan to exchange tele-
vision programs across the Pacific Ocean. In
recognition of such an achievement I should
like to take this occasion to commend highly
and warmly the Secretary of State and all
those agencies and individuals in tlie United
States Government, and tliose in the private
sector of the Nation as well, whose elTorts,
592
DEPARTMENT OF STATE BXTLLETIN
talents, and resources have made possible the
event taking place today.
Just as the United States and Japan have
worked together for the establishment of world
peace and the improvement of the conditions
of human life, so, I am sure, will the success
of television exchange through this communi-
cations satellite contribute greatly to the com-
mon efforts we have made toward deepening
the ties of mutual esteem and understanding
between our two countries.
The Olympic games will open for the first
time on Asian soil, in Tokyo on October 10th.
The actual events of this festival, in which
youths fi'om all countries of the world are to
participate, will be relayed by means of this
satellite to your country' as well as to Canada.
It is highly appropriate, I feel, that the first of
the programs which will be transmitted through
Syncom III are to be telecasts of these Olympic
games — which is a festival well disposed to ad-
vance the cause of peace and good will among
all nations of the world.
It is my sincere hope that through this new
means of communicating with each other, the
peoples of the United States and Japan will en-
joy a future of increased mutual respect, under-
standing, and cooperation.
The Alliance for Progress: A Challenge and an Opportunity
iy Thomas O. Mann
Assistant Secretary for Inter-American Affairs^
The other day I spoke in Dallas^ about the
very considerable progress that has been made
in the last few months against Communist sub-
version in the Western Hemisphere. Today I
should like to speak about the economic aspects
of a subject which is intimately related to this
struggle — the Alliance for Progress.
As a fourth-generation Texan perhaps I shall
be permitted to say to fellow Texans that our
history, our geographical location, our juris-
prudence, which draws from the civil as well as
the common law, our cultural heritage, our eco-
nomic ties, our traditions of free enterprise and
liberal trade give us all a special interest in
Latin America and, I hope, a clear understand-
ing that the destiny of our country is closely
Imked with that of our neighbors to the south.
In the past it was possible for nations to think
in terms of isolation and withdrawal from the
^ .\cldress made before the Houston Council on World
Affairs at Houston, Tex., on Sept. 23 (press release
413).
' Bulletin of Oct. 19, 1964, p. 549.
outside world. All of us may sometimes have
nostalgic thoughts about how much simpler life
would be if we did not have to bother about the
problems of others, if we could somehow pass on
to others the responsibilities which we did not
seek but which our military and economic
strength have thrust upon us. But in our more
thoughtful moments we know, deep down in
our minds and hearts, that now and in the fu-
ture we live in an interdependent hemisphere
which is part of an interdependent world. Two
world wars have taught us this. Whatever en-
dangers the political independence of any
American Republic threatens freedom in all
the others. Wliatever impedes economic and
social progress and creates situations of politi-
cal unrest in one presents practical, concrete
problems for all the rest.
The Alliance for Progress recognizes this
interdependence. The preamble of the Charter
of Punta del Este recites: ^
' For text, see ibid., Sept. 11, 1961, p. 463.
OCTOBER 26, 1964
593
We, the American Republics, hereby proclaim our
decision to unite in a common effort to bring our people
accelerated economic progress and broader social jus-
tice within the framework of personal dignity and
political liberty.
The Development Problem
Let. us look at the nature of the development
problem.
Twenty-one free and sovereign nations exist
in Middle and South America with a popula-
tion and a landmass greater than our own.
Our gross national product reached $600 bil-
lion in 1963. The gross national product of the
other American Republics is between $60 billion
and $75 billion.
The average annual individual income of our
people is about $2,500 and is steadily rising.
The average annual individual income in the
other American Republics is around $300 a year.
It is not rising as fast as it should.
Not only do these contrasts exist in an age of
rising expectations, but the Americas face a
population explosion unprecedented in liistory.
There are now 200 million Latin Americans. If
present trends continue, this number will double
in the next two decades.
A high and sustained rate of economic growth
in all of Middle and South America is not there-
fore merely a desirable goal. It is an impera-
tive. Each country must, for example, rapidly
expand production of food that its people con-
sume, or there will be hunger. Each nation
must rapidly increase the number of job oppor-
timities, or there will be rising unemployment.
There is another important element in the
problem that deserves mention. In recent
decades it was possible for Latin American gov-
ernments to postpone taking economic and social
measures which were clearly needed simply by
borrowing money from abroad. This is no
longer feasible in some cases simply because
countries are finding it increasingly difficult to
service additional "hard" loans and short-term
supplier credits. Excluding Venezuela, Latin
American countries must use 20 percent of their
export earnings to pay their foreign debts. In
consequence, a number of countries have been
obliged to request a "stretchout" of their pay-
ment obligat ions.
Every one of our sister Republics therefore
faces the necessity of taking those measures
necessary to create conditions propitious for
rapid growth and progress — and of taking them
quickly.
Wliat are they ? Each coimtry is, of course,
different from all the rest. Each has its own
particular problems, and each wants to follow
its own path.
TVe do not wisli to intervene in the internal
affairs of other countries. But perhaps it will
not be taken amiss if, without intending to refer
to any particular countrj', I try to outline some
of the economic problems which seem to me to
impede the achievement of the alliance goals in
the Western Hemisphere. This opens up such
a wide vista that I shall be able to mention only
a few.
In listing the problems, and in making brief
generalized comments about them, I do not in-
tend to be doctrinaire. After all, the acid test
of any development policy is not whether it fits
a particular economic theorj' but whether it
works — whether it produces equality of oppor-
tmiity and a better life for the people.
Monetary Policies
Common to several countries — not all of them
by any means — is the old problem of chronic,
galloping inflation. This kind of inflation can
achieve short periods of growth. But it cannot
achieve the high and sustained level of progress
which the situation demands.
This kind of inflation robs the wage earner.
It disrupts orderly processes in the economy. It
destroys incentives for domestic private savings.
It discourages private-sector investment in job-
and-goods-producing farms and factories. It
promotes flights of capital to safer havens
abroad. It raises interest rates on loans needed
for economic and social progress to incredibly
high interest rates and very short terms, thus
denying loans to those who need them most.
The speculators, not the people, profit from
inflation.
One of the principal causes of inflation is large
budgetary deficits which governments attempt
to cover by printing more money. And, in turn,
one of the principal causes of these, large budg-
etary deficits is that government-owned enter-
prises— not necessary social projects, but enter-
594
DEPARTMENT OF STATE BULLETIN
prises wliich are supposed to earn a profit or at
least to pay tlieir own way — all too often run
very large operating deficits.
These operating deficits of government-owned
enterprises impede economic and social progress
by draining off domestic tax savings urgently
re*[uii'ed for development. Tighter control over
national and autonomous agency budgets is ob-
viously part of the answer to the problem of
inflation. Lower operating costs and increased
efficiency in government-o\vned enterprises
which must compete for world markets are also
essential.
Another part of the answer to the problem
of budgetary deficits is to increase tax revenues.
This is one of the reasons the alliance charter
speaks of the importance of tax reform both
in the sense of better tax collection methods and,
in many countries, modem tax policies.
A dynamic economy and accelerated social
progress are compatible with fiscal and mone-
tary responsibility ; indeed fiscal and monetary
irresponsibility is incompatible with the
achievement of the goals of the alliance. The
proof of this is that those countries in this hemi-
sphere wliich control uaflation and follow sound
monetary and fiscal policies are those which
have the highest growth rates and are making
the fastest progress toward social justice.
Another problem common to several comi-
tries— again, not all — is the familiar chronic
balance-of-payment deficit. Wlienever this oc-
curs the nation is unable to import the capital
goods which it needs for development. Since
the need to import, will grow rather than dimin-
ish in the foreseeable future, it will obviously be
necessai-y for nearly all countries to begin now
to divei-sify and expand those exports for which
there is a foreign market. Policies which dis-
; courage exports are archaic and should be re-
I formed as quickly as is feasible.
Another common problem is the need to in-
i crease rapidly the production of food for in-
j temal consumption, to create a fair and efficient
1 system of land tenure, and to improve food
storage, food processing, and food marketing
facilities. Tliere is no task more important or
urgent than this. In doing this, coimtries will
j not only assure their people of adequate food
' supplies but they will be giving the fanner a
way to improve his standard of li^dng and, by
increasing his purchasing j^ower, increase na-
tional markets for national industries.
How to get the private sector to make its full
contribution to economic and social progress
is another i)roblem connnon to many comitries.
At least 70 percent of gross domestic invest-
ment in Latin America comes fi'om the private
sector. Obviously, if tlie domestic private sec-
tor is not making its full contribution to de-
velopment, the goals of the alliance will not be
achieved.
If the domestic private sector is to make its
contribution, government policies must give a
basis for confidence that agreements and con-
tracts will be respected, property rights pre-
served, and adequate incentives given to capital
which is invested in entei-prises which contribute
to grow-th. For its part, the domestic private
sector has a responsibility to repatriate its capi-
tal, to invest in ways which will contribute to
progress, to seek fair rather than excessive
profits, to compete rather than expect special
privileges and monopoly positions. What is
needed is teamwork and trust between govern-
ment and business so that each can make its
maximum contribution to the welfare of their
peoples. As the Under Secretary of State,
Mr. Ball, recently pointed out : *
Nations that elect to pursue policies that tend to
eliminate the private sector . . . should be aware that
they are denying themselves a source of capital that
could otherwise greatly speed their own economic
development.
The Importance of Self-Help
These are some of the problems that can only
be solved by mtemal policies, attitudes, and
measures taken by the govermnent concerned.
They therefore fall into the category that in
recent years has been increasingly referred to
as "self-help."
Unless conditions favorable to development
are created by each countiy, all the aid from and
trade with the outside world will not achieve
the goals of the alliance. Indeed, there have
been occasions in the past where aid has served
only to postpone constmctive self-help measures
and to increase the external debt that future
regimes have to pay.
' Ibid., Apr. 20, 1964, p. 634.
OCTOBER 26, 1964
595
That is why our policy is one of stepped-up
emphasis on the importance of self-help. For-
eign assistance, for its own sake, will never
result in real development; foreign assistance
is helpful only when others are ready and will-
ing to institute the changes, reorganize their
own societies and economies, rationalize their
tax and budget policies, reform their agricul-
ture, and change their societies in ways which
open the door to growth. "We must be con-
vinced that a government and a nation is pre-
pared to do everything it reasonably can to put
its own economic house in order before we can
justify the commitment of our own resources.
But I would like to say with equal emphasis
that it would be a tragic mistake, harmful in the
extreme to our national interests, if we were to
put ourselves in a straitjacket by limiting the
use of loans to specific projects undertaken only
after general reforms have been accomplished.
There have been, and could well be in the future,
moments in the rapid unfolding of events in
Latin America when we must be in a position
to provide general support in limited amounts
and for a limited period to new governments
prepared to commit themselves to serious pro-
grams of development and refonn. Program
loans for the importation from the United
States of essential capital goods and raw ma-
terials are also of direct benefit to the private
sector, permitting businessmen to get on with
the job of increasing production.
These considerations apply with particular
importance to Brazil, for example, which has
been a trusted and valued friend of our country
in good times and bad. We cannot turn our
backs on the gallant efforts of the present gov-
ernment to bring order out of the chaos created
by its predecessor. All we have a right to ask
is that it match our efforts, step by step, by
taking every feasible measure of self-help.
But in all cases our lending must be more ivnd
more related to self-help. Our assistance pro-
gram can only be effective if it supplements the
efforts of others to progress. As President
Johnson said a year ago : *
. . . for the job before us, our resources are not com-
fortably abundant. What we have to work with is
• Ibid., Sept. 9, 1963, p. 401.
enough only if we carefully and wisely use it to create
the growth now which will free the growth of the
future.
Trade and Aid
At the same time it needs to be repeated again
and again that even those countries which are
doing their level best to help themselves will not
be able to progress fast enough to keep up with
their growing populations unless we also do our
part. Our policies on trade and aid are crucial.
Cordell Hull said in 1936 :
For generations humanity has built its life upon
recognition of the primary fact that trade is the life
blood of economic activity.
And why is that so ? Wlien pressure groups
in our country seek quotas and high tariffs to
protect them from competition, they are asking
for an indirect government subsidy which the
American consumer pays for in the form of
higher prices.
There are, to be sure, exceptional cases where
limited protection of particular industries
serves the national interest. But the general
rule is that the nation loses from protectionism.
Our exporters lose ; all Americans who produce
for export lose because nations which cannot
earn dollars by selling their products to us
cannot buy from us. The American consumer
loses. The American worker loses.
The point which I want to emphasize is that
a departure from the liberal trade policies we
have followed since the great depression of the
1920's and 30's would not only harm us: It
would foredoom tlie alliance to failure and
create in tliis hemisphere — in our neighbor-
hood— all the economic, political, social, and
security problems which flow from himger,
resentment, despair, and hopelessness.
As we ask Latin America to take self-help
measures let us, then, also resolve to do our part
by participating with our friends in a mutually
advantageous trade.
Our second task is to continue, through our
aid program, to make it possible for all Ameri-
can nations which are doing their part to obtain
loans on terms which they can repay.
Our aid program in Latin America is justi-
fied by our tradition of humanitarianism. It
is not a giveaway. It is an investment in free-
dom, in decency, in progress in our own neigh-
596
DEPARTMENT OF STATE BULLETIN
borhood. It is part and parcel of our defense
effort. It is required by our security interests.
Evidences of Progress
In spite of the problems to wliich I have re-
ferred, we are making progress imder the
alliance.
Tlie majority of the American Republics are
progressing toward new horizons of economic
achievement and social justice. Seven have be-
gun major tax-reform programs, and others
will soon follow. A majority have undertaken
important agrarian programs. Eight coun-
tries have established development banks, and
nine have passed legislation for savings and
loan associations, both types of institutions de-
signed to mobilize domestic savings and to use
them creatively.
But beyond figures of this kind, the alliance
partnersliip is moving forward on many fronts.
Eepresentatives of 17 of our land-grant colleges
and of 14 of our States, as well as our own
Foreign Service personnel (who come from
every State in the Union) are working side by
side with their counterparts in 21 countries.
Under the first 3 years of the alliance they have
participated in programs which have built more
than 23,000 classrooms, 220,000 houses, 2,900
miles of roads, made 200,000 agricultural credit
loans, built more than 1,000 water supply and
sewage systems serving 15 million people, helped
in this year alone to feed more than 2-4 million
people.
We are participating, too, in programs of
teacher training, rural and urban electrifica-
tion, training in tax and customs administra-
tion, rural cooperatives, and in other programs
which ai'e all ingredients of progress.
In all this we are partners in an historic ef-
fort under the Alliance for Progress, an effort
which joins progressive and forward-looking
people of the hemisphere in a common program
which is dedicated to one overriding purpose
and one purpose only : the improvement of the
condition of human life in Latin America. "We
seek no political or economic advantage. We
have no territorial ambition. We do not seek
to impose our will on others. We seek only to
join hands in the reform and development of
this, our hemisphere, so that each nation can
talce its rightful place in the community of
nations — free, democratic, self-confident, and
able to provide for its own people the jobs,
schools, and decent life to which all men in this
century are entitled.
And, finally, I should like to say that I am
not one of those Miio seem to believe that the
United States is ahvays wrong and that we are
responsible when things we obviously do not
and cannot control do not go well in every
country in the hemisphere. There is no need
for this great country of ours to be constantly
on the defensive as if we were suffering from
some giant complex.
The United States is prosperous not because
we exploit others but because the great major-
ity of our people are dedicated, honorable, and
industrious; because we have made reasonably
good use of the natural resources which Provi-
dence gave us; because we have been blessed
with responsible leaders who have put country
above selfish advantage; because we seek equal-
ity of opportunity for all within a democratic
framework of political and economic freedom.
If all Americans in this hemisphere remain
true to their traditions, the future of the New
World will be as bright and shining as it was in
the visions of Jefferson, Juarez, and Bolivar.
As President Johnson said last Novem-
ber 26 : »
"The accomplishments of the years to come
will vindicate our faith in the capacity of free
men to meet the new challenges of our new day."
Columbus Day, 1964
A PROCLAMATION*
Whereas four hundred and seventy-two years ago
Christopher Columl)us embarked on a daring voyage
into an unknown sea and discovered a new world ; and
Whereas, in the ensuing centuries, the continents of
the world have been brought closer together in time
and space by means of modern communications and
transportation ; and
Whereas closer relationships between the peoples of
the world have increased our awareness of the need for
a just and lasting peace ; and
Whereas the vision, courage, and dedication of
Columbus are a constant inspiration to us, both as
' Ibid., Dec. 16, l!)fi3, p. 912.
' No. 3C21 ; 29 Fed. Reg. 13795.
OCTOBER 26. 1964
597
individuals and as a Nation, as we seek a new world of
peace and understanding ; and
Whereas, in recognition of our debt to Columbus,
the Congress of the United States, by a joint resolution
approved April 30, 1934 (48 Stat. 657), requested the
President to proclaim October 12 of each year as
Columbus Day for the observance of the anniversary
of the discovery of America :
Now, THEREFORE, I, Lyndon B. Johnson, President of
the United States of America, do hereby designate Mon-
day, October 12, 1964, as Columbus Day; and I invite
the peoijle of tiis Nation to observe that day in
churches, schools, and other suitable places with appro-
priate ceremonies in honor of the memory of
Christopher Columbus.
I also direct that the flag of the United States be dis-
played on all public buildings on Columbus Day in
honor of the great explorer.
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 third day of
October in the year of our Lord nineteen
[seal] hundred and sixty-four, and of the Inde-
pendence of the United States of America the
one hundred and eighty-ninth.
By the President :
Dean Rusk,
Secretary of State.
U.S. Requests Three IJC Studies
on Water Levels and Pollution
STUDIES OF GREAT LAKES AREA
The Department of /State announced on
October 8 {press release Ul) that it had trans-
mitted on October 7 two letters to the Inter-
national Joint Commission, United States and
Canada, requesting reports on water levels and
pollution in the Great Lakes area. Following
are the texts of the letters.
Water-Level Conditions in Great Lakes
OCTOHEK 7, 1904
SiR.s: In order to detenniuo wlietlier meas-
ures within tlie Great Lakes Basin can be
taken in the public interest to reguhite further
the levels of the Great Lakes or any of them
and their connecting waters so as to reduce
the extremes of stage which have been ex-
perienced, and for the beneficial effects in
these waters described heremider, the Govern-
ments of Canada and the United States have
agreed to refer the matter to the International
Joint Commission for investigation and report
pursuant to Article IX of the Boundary
Waters Treaty of 1909.
It is desired that the Commission study the
various factors which affect the fluctuations
of these water levels and determine whether
in its judgment action would be practicable
and in the public interest from the points of
view of both Governments for the purposes
of bringing about a more beneficial range of
stage for, and improvement in
a) domestic water supply and sanitation,
b) navigation,
c) water for power and industry,
d) flood control,
e) agrictilture,
f) fish and wildlife,
g) recreation, and
h) other beneficial public purposes.
In the event that the Commission should find
that changes in existing works or that other
measures would be practicable and in the public
interest in light of the foregoing pui-poses, it
should indicate how the various interests on
either side of the boundary would be benefited
or adversely affected thereby. The Commis-
sion should estimate the cost of such changes in
existing works or of such other measures and
the cost of any remedial works that might be
found to be necessary and make an appraisal of
the value to the two comitries, jointly and sepa-
rately, of such measures. For the purpose of
assisting the Commission in its investigations
and otherwise in the perfonnance of its duties |
under this Reference the two Governments will
upon request make available to the Connnission
the services of engineers and other specially
(jualified personnel of their governmental agen-
cies and such information and technical data as
may have been ac<|uired or as may be acquired
by them during the coui-se of the investigation.
Tlio two Governments have agreed that when
598
DEPARTMENT OF STATE BULLETIN
the Commission's report is received they will
consider whether any examination of further
measures which might alleviate the problem
should be carried out, including extending the
scope of the present Reference.
The Commission is requested to submit its re-
port to the two Govermnents as soon as may be
practicable.
Very truly yours,
For the Secretary of State :
William E. Tyler
Assistant Secretary
Pollution in Great Lakes Area
October 7, 1964
Sirs : I have the honor to infoi-m you tliat the
Governments of the United States and Canada
have been infonned that the waters of Lake
Erie, Lake Ontario and the international sec-
tion of the St. Lawrence River are being pol-
luted by sewage and industrial waste discharged
into these waters. Having in mind the pro-
vision of Article IV of the Boundary Waters
Treaty signed January 11, 1909, that boundary
waters and waters flowing across the boundary
shall not be polluted on either side to the injury
of health or property on the other side, the two
Governments have agreed upon a joint Refer-
ence of the matter to the International Joint
Commission, pursuant to the provisions of Arti-
cle IX of said Treaty. Tlie Commission is re-
quested to inquire into and to report to the two
Governments upon the following questions :
(1) Are the waters of Lake Erie, Lake On-
tario, and the international section of the St.
Lawrence River being polluted on either side
of the boundary to an extent which is causing
or is likely to cause injuiy to health or property
on the other side of the boundary?
(2) If the foregoing question is answered in
the affirmative, to what extent, by what causes,
and in what localities is such pollution taking
place?
(3) If the Commission should find that pol-
lution of the character just referred to is taking
place, what remedial measures would, in its
judgment, be most practicable from the eco-
nomic, sanitary and other points of view and
what would be the probable cost thereof ?
In the conduct of its investigation and other-
wise in the performance of its duties under
this Reference, the Commission may utilize
the services of engineers and other specially
qualified persomiel of the technical agencies
of the LTnited States and Canada and will so
far as possible make use of information and
technical data heretofore acquired or which
may become available during the course of
the investigtion.
The two Governments are also agreed on the
desirability of extending tliis Reference to
other boundaiy waters of the Great Lakes
Basin at an appropriate time. The Commis-
sion is requested to advise the Governments
when, in its opinion, such action is desirable.
The Commission should submit its report
and recommendations to the two Governments
as soon as practicable.
Very tnily yours,
For the Secretary of State:
Willl^m R. Tyler
Assistant Secretary
STUDY OF RED RIVER
The Department of State announced on
October 9 {press release ^43) that it had trans-
mitted on October 1 a letter to the International
Joint Commission, United States and Canada,
requesting a report on pollution in the Red
River. Following is the text of the letter.
October 1, 1964
Sirs : The Governments of the United States
and Canada have been informed that the wa-
ters crossing the international boundaiy in the
Red River are polluted by sewage and industrial
wastes. Having in mind the provisions of Arti-
cle IV of the Boundaiy Waters Treaty signed
January- 11, 1909, that boundary waters and
waters flowing across the boimdary shall not be
polluted on either side to the injury of health
or property on the other side, the two Govern-
ments have agreed upon a joint reference of
the matter to the International Joint Conmiis-
sion, pursuant to the provisions of Article IX
of said Treaty. The Commission is requested to
inquire into and to report to the two (lovern-
ments upon the following questions :
599
1) Are the waters referred to in the preceding
paragraph being polluted on either side of the
international boundary to an extent which is
causing, or likely to cause, injury to health or
property on the other side of the boundary?
2) If the foregoing question is answered in
the affirmative, to what extent, by what causes,
and in what localities is such pollution taking
place ?
3) If the Commission should find that pollu-
tion of the character just referred to is taking
place, what remedial measures would, in its
judgment, be most practical from the economic,
sanitary and other points of view and what
would be the probable cost thereof ?
For the purpose of assisting the Commis-
sion in making the investigation and recom-
mendations provided for in this Reference, the
two Governments will, upon request, make
available to the Commission the services of en-
gineers and other specially qualified personnel
of their governmental agencies, and such infor-
mation and teclinical data as may have been ac-
quired by such agencies or as may be acquired
by them during the course of the investigation.
It would be appreciated if the Commission
would submit its report and recommendations
to the two Governments as soon as practicable.
Very truly yours,
Dean Eusk
Congressional Documents
Relating to Foreign Policy
88th Congress, 2d Session
Administration of National Security. Hearing before
the Subcommittee on National Security Stafiing and
Operations of the Senate Government Operations
Committee. Part 9. June 25, 1964. (M pp.
Economic Policies and Practices. Paper No. 6, Sub-
sidies to Shipping by Eleven Countries. Materials
prepared for the Joint Economic Committee. July
l(i, 19G4. 30 pp. [Joint Committee print]
Claims of U.S. Nationals Against the Government of
Cuba. Hearings before the Subcommittee on Inter-
American Affairs of the House Foreign Affairs Com-
mittee on II.U. 10327, H.R. lOuSG, H.R. 10720, H.R.
12259, and H.R. 122G0. July 2S-August 4, 19G4.
176 pp.
St. Lawrence Seaway Development Corporation.
Message from the President transmitting the annual
report of the corporation for the year ended Decem-
ber 31. 1003. H. Doc. 332. August 3, 1904. 28 pp.
Interest Equalization Tax Act. Conference report to
accompany H.R. 8000. H. Rept. 1810. August 15,
1904. 19 pp.
Wild Animals— Meat Imports. Conference report to
accompany H.R. 1839. H. Rept. 1824. Undated.
8 pp.
Extension and Amendment of Public Law 480. Report
to accompany S. 2687. S. Rept. 1467. August 18,
1964. 52 pp.
Foreign Decorations. Report to accompany H.R.
12342. S. Rept. 1520. September 1, 1964. 3 pp.
INTERNATIONAL ORGANIZATIONS
AND CONFERENCES
Senate Confirms U.S. Delegation
to 19th U.N. General Assembly
The Senate on October 2 confirmed the fol-
lowing to be representatives and alternate rep-
resentatives of the United States to the 19th
session of the General Assembly of the United
Nations:
Representatives
Adlai E. Stevenson
Russell B. Long
Frank Carlson
William C. Foster
Francis T. P. Plimpton
Alternate Representatives
Charles W. Yost
Franklin H. Williams
Mrs. Gladys A. Tillett
Richard N. Gardner
Charles P. Noyes
Senate Confirms Mrs. Tree
for U.N. Trusteeship Council
The Senate on October 2 confirmed the nomi-
nation of Mrs. Marietta P. Tree to be the repre-
sentative of the United States on the Trustee-
ship Council of the United Nations, vice Sydney
R. Yates, resigned.
600
DEPARTMENT OF STATE BTJLLETIN'
TREATY INFORMATION
Income Tax Protocol Enters
Into Force With Netherlands
Press release 419 dated September 28
On September 28 Secretary Rusk and Ambas-
sador Carl W. A. Schurmann of the Nether-
lands exchanged the instruments of ratification
of the protocol, signed at The Hague on October
23, 19G3, modifying and supplementing the
extension to the Netherlands Antilles of the
convention between the United States and the
Netherlands for the avoidance of double taxa-
tion and the prevention of fiscal evasion with
respect to taxes on income and certain other
taxes.
The income tax convention with the Nether-
lands was signed at Washington on April 29,
1948, and was brought into force by the ex-
change of instruments of ratification on Decem-
ber 1, 1948.1 On June 15, 1955, there was
signed at Washington a protocol modifying and
supplementing the 1948 convention for the pur-
pose of facilitating extension to the Netherlands
Antilles. ^ That protocol was brought into
force by the exchange of instruments of ratifica-
tion on November 10, 1955. Thereaftei", by vir-
tue of a notification given by the Netherlands
Government and acceptance thereof by the
United States Government, the application of
the 1948 convention, as modified and supple-
mented by the 1955 protocol, was extended to
the Netherlands Antilles, with operative effect
from January 1, 1955.
The new protocol provides for changes in the
United States tax rate on dividends, interest,
and royalties received from United States
sources by Netherlands Antilles investment
' Treaties and Other International Acts Series 1855.
'TIAS 3366.
companies owned by persons who are not resi-
dents of the Netherlands or the Netherlands
Antilles.
U.S. and Philippines Sign
Income Tax Convention
Press release 433 dated October 5
On October 5, 1964, Secretary of State Dean
Rusk, the Secretary of Foreign Affairs of the
Republic of the Philippines, Mauro Mendez,
and the Philippine Secretary of Finance, Rufino
G. Hechanova, signed a convention between the
United States and the Philippines for the avoid-
ance of double taxation and the prevention of
fiscal evasion with respect to taxes on income.
The purpose of the convention is similar to
that of income tax conventions presently in force
between the United States and numerous for-
eign countries, namely, to eliminate as far as
possible double taxation resulting from the tax-
ation of the same item or items of income by
both countries.
The provisions of the convention deal with
exemptions or credits with respect to taxes on
various types of income, including commercial
and industrial profits, interest, income from real
property, gains upon transfers of controlled
corporations, personal service income, remu-
neration of teachers, remittances to students and
trainees, government salaries or wages, and
charitable contributions. The convention also
contains provisions for cooperation between
officials of the two countries in the exchange of
information and for the prevention of fiscal
evasion.
The convention will be submitted to the U.S.
Senate for advice and consent to ratification.
The convention will be brought into force by
the exchange of instruments of ratification.
OCTOBER 26, 1964
601
U.S. and Yugoslavia Conclude
Cotton Textile Agreement
Press release 430 dated October 5
DEPARTMENT ANNOUNCEMENT
The Governments of the United States and
Yugoshivia announced on October 5 the con-
clusion of a bilateral agreement covering trade
in cotton textiles between the two countries for
a 3-year period extending from January 1, 1965,
to December 31, 1967.
The agreement is designed to provide a frame-
work for the development of Yugoslavia's cot-
ton textile trade with the United States. It
was concluded by an exchange of notes between
Assistant Secretary of State for Economic Af-
fairs G. Griffith Jolmson and the Chief of the
Yugoslav Delegation for Textile Negotiations,
Mihailo Stevovic.
This agreement resulted from a series of bi-
lateral talks held in Belgrade and Wasliington
between representatives of the Governments of
Yugoslavia and the United States. The Unit-
ed States was represented in these talks by rep-
resentatives of the Departments of Commerce,
Labor, State, and Treasury. The talks led to
an understanding between the two Governments
on the future pattern of cotton textile trade be-
tween Yugoslavia and the United States.
The principal features of the agreement are as
follows :
1. The agreement covers all exports of cotton
textiles from Yugoslavia to the United States.
2. The Govenunent of Yugoslavia agrees to
limit exports of cotton textiles to an aggregate
of 15.1 million square yards during calendar
year 1965. A set of conversion factors is speci-
fied in an annex to the agreement to express vari-
ous cotton textile items in terms of a square
yard equivalent.
3. Witliin this aggregate, exports of apparel
(categories 39-63) are not to exceed 1.5 million
square yards equivalent.
4. Within the aggregate limit and tlie groiq)
ceiling for apparel, the agreement also provides
for specific export ceilings with regard to 12
specific items of cotton textiles.
5. The square yard equivalent of export short-
falls in categories with specific export ceilings
may be used in categories not given such specific
ceilings, provided the group ceilmg for apparel
is not exceeded.
6. The two Governments agree to consult in
the event Yugoslavia plans to export cotton
textiles during any calendar year in excess of
300,000 or 350,000 square yards equivalent in
specified categories of cotton textiles not given
specific ceilings.
7. All ceilings of the bilateral agreement will
be increased by 5 jDercent per annum, beginning
with the second year of the agreement.
8. Except for seasonal items the Government
of Yugoslavia will use its best efforts to space
exports evenly over the agreement year.
9. The two Governments will exchange such
information and statistical data on cotton textile
trade as are required for the effective imple-
mentation of the agreement.
10. Tlie export levels established by the bi-
lateral agreement will supersede, as of Jan-
uary 1, 1965, the restraint actions taken by the
United States Government over the past 12
montlis with regard to cotton textile exports
from Yugoslavia pursuant to articles 3 and 6 (c)
of the Long-Term Arrangement Regarding In-
ternational Trade in Cotton Textiles.^
AGREEMENT AND RELATED LETTERS
U.S. Note
October 5, 1964
Sir : I refer to the discussions in Belgrade and Wash-
ington between representatives of the Government of
the United States of America and the Government of
the Socialist Federal Republic of Yugoslavia concern-
ing exports of cotton textiles from Tugoslavia to the
United States.
As a result of these discussions, I propose tlie fol-
lowing agreement relating to trade in cotton textiles
between Yugoslavia and the United States.
1. The Government of the Socialist Federal Repub-
lic of Yugoslavia shall limit its exports to the United
States in all categories of cotton textiles for tlie twelve-
month period beginning January 1, li)G5, to an aggre-
gate limit of ir>.l million s(iuaro yards equivalent.
2. Within this aggregate limit, tlie following specific
ceilings shall apply:
' For text, see Bulletin of Mar. 12, 1962, p. 431.
602
DEFARTMENT OF STATE BULLETIN
Category Million square yarda
1-2 .G (equivalent)
9 5.0
15-16 1.5
18-19 2. 1
22 1.0
Duck (part of 26) 1.65
31 1.0 (equivalent)
3. Within the aggregate limit, exports of apparel
(Categories 39-63) shall not exceed 1.5 million square
yards equivalent. Within this group limit on apparel
exports, the following specific ceilings shall apply :
Category Level
48 4,500 Dozen
49 10,000 Dozen
4. The square yard equivalent of any shortfalls oc-
curring in the categories subject to specific ceilings
may be used for exports in categories not given specific
ceilings, provided, however, that total exports of ap-
parel. Categories 39-63, shall not exceed the group limit
specified in paragraph 3.
5. Within the aggregate limit, any specific ceiling,
now provided for under paragraphs 2 and 3 or nego-
tiated at some future date, pursuant to the provisions
of paragraph 6, may be exceeded by not more than 5
percent; provided, however, that total exports of ap-
parel. Categories 39-63, shall not exceed the group
limit specified in paragraph 3.
6. The Government of the Socialist Federal Republic
of Yugoslavia shall enter into consultations with the
United States Government in the event exports, in any
calendar year, in any category not given a specific ceil-
ing, are planned to be in excess of the following levels :
(a) Categories 3 through 8,
10 through 14, 17, 20, 21,
23 through 25, 26 (other
than duck), 27 through
30, 32 through 44, 47, 52
through 04 350,000 square yards
equivalent ;
(b) Categories 45, 46, 50 and
51 300,000 square yards
equivalent.
The United States Government shall agree to enter into
such consultations and, during the course thereof, shall
provide the Government of the Socialist Federal Re-
public of Yugoslavia with information on the condi-
tion of the United States market in the categories in
question. Until agreement is reached the Government
of the Socialist Federal Republic of Yugoslavia shall
limit its exports in the categories in question at an
annual level not in excess of 350,000 square yards
equivalent for any of the categories enumerated in
(a) above and not in excess of 300,000 square yards
equivalent for any of the categories enumerated in
(b) above.
7. The levels established in paragraphs 1, 2, 3, and
6 of this agreement shall be increased by five percent
lor the calendar year 1966. For the calendar year
1967. each of these levels shall be increased by a
further five percent over the levels for the calendar
year 1966.
8. With the exception of seasonal items, (he Gov-
ernment of the Socialist Federal Republic of Yugo-
slavia shall use its best efforts to space evenly its
annual exports under this agreement.
9. In the implementation of this agreement, the
system of categories and the rates of conversion into
square yard equivalents listed in the Annex hereto
shall apply.
10. Each Government agrees to supply promptly all
available statistical data relating to trade in cotton
textiles requested by the other Government. In par-
ticular, the Government of the Socialist Federal Re-
public of Yugoslavia .shall supply the most current
export data to the Government of the United States,
and the Government of the United States shall supply
the most current import data to the Government of the
Socialist Federal Republic of Yugoslavia.
11. The United States Government agrees not to
invoke, beginning January 1, 1965, the procedures of
Articles 6(c) and 3 of the Long-Term Arrangement
Regarding International Trade in Cotton Textiles done
at Geneva on February 9, 1962 to limit importation of
cotton textiles from the Socialist Federal Republic of
Yugoslavia, and agrees to discontinue all exi>ort re-
straints imposed pursuant to the provisions of those
Articles as of that date.
12. The Governments agree to consult on any ques-
tion arising in the implementation of this agreement.
In particular, in the event that, because of a return to
normalcy of market conditions in the United States,
the Government of the United States relaxes measures
it has taken under the Long-Term Arrangement with
respect to categories given ceilings herein, consulta-
tion may be requested by the Government of the So-
cialist Federal Republic of Yugoslavia to negotiate
removal or modification of those ceilings.
13. This agreement shall continue in force through
December 31, 1967; provided that either Government
may propose revisions in the terms of the agreement
no later than 90 days prior to the beginning of a calen-
dar year ; and provided, further, that either Govern-
ment may terminate this agreement effective at the be-
ginning of a new calendar year by written notice to
the other Government given at least 90 days jmor to
the beginning of such twelve-month period.
If these proposals are acceptable to the Government
of the Socialist Federal Republic of Yugoslavia, this
note and your note of acceptance " on behalf of the
Government of the Socialist Federal Republic of Yugo-
slavia shall constitute an agreement between our Gov-
ernments, effective January 1, 1965.
Accept, Sir, the assurances of my high consideration.
For the Secretary of State :
G. Griffith Johnson
Assistant Secretary
' Not printed here.
OCTOBER 26, 1904
603
ANNEX
Cotton Textile Categories and Conversion
Factors
Conver-
sion
Factor
(Sguare
Yards)
4.6
4.6
4. 6
4. 6
1.0
1.0
1.0
Catt'
torv
I
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
Description
Yarn, carded, singles
Yarn, carded, plied
Yarn, combed, singles
Yarn, combed, plied
Gingham, carded
Gingham, combed
Velveteen
Corduroy
Sheeting, carded
Sheeting, combed
Lawn, carded
Lawn, combed
Voile, carded
Voile, combed
Poplin and broadcloth, carded
Poplin and broadcloth, combed
Typewriter ribbon cloth
Print cloth, shirting type, 80 x
80 type, carded
Print cloth, shirting type, other
than 80 x 80 type, carded
Shirting, Jacquard or dobby,
carded
Shirting, Jacquard or dobby,
combed
Twill and sateen, carded
Twill and sateen, combed
Woven fabric, n.e.s., yarn dyed,
carded
Woven fabric, n.e.s., yarn dyed,
combed
Woven fabric, other, carded
Woven fabric, other, combed
Pillowcases, carded
Pillowcases, combed
Dish towels
Hose and half hose
T-shirts, all white, knit, men's
and boys'
T-shirts, other, knit
Shirts, knit, otiier than T-shirts
and sweatshirts
Sweaters and cardigans
Shirts, dress, not knit, men's
and boys'
Shirts, sport, not knit, men's
and boys'
Shirts, wotk, not knit, men's
and boys'
Raincoats, % length or longer,
not knit
Other coats, not knit
Unit
Lb.
Lb.
Lb.
Lb.
Syd.
Syd.
Syd.
Syd.
Syd.
Syd.
Syd.
Syd.
Syd.
Syd.
Syd.
Syd.
Syd.
Syd.
Syd.
Syd.
Syd.
Syd.
Syd.
Syd.
Syd.
Svd.
Svd.
No.
No.
No.
No.
Doz.
Other towels
Handkerchiefs, whether or not
in the piece
Table damask and manufac- Lb.
tures
Sheets, carded
Sheets, combed
Bedspreads and quilts
Braided and woven elastics
Fishing nets and fish netting
Gloves and mittens
No.
No.
No.
Lb.
Lb.
Doz.
Prs.
Doz.
Prs.
Doz.
Doz.
Doz.
Doz.
Doz.
Doz.
Doz.
Doz.
Doz.
1. 0
I.O
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1. 0
1.0
1. 0
1. 0
1. 0
1.0
1.0
1.0
1.0
1.0
1. 084
1. 084
.348
.348
1.66
3. 17
6.2
6.2
6.9
4.6
4.6
3.527
4.6
7.234
7.234
7.234
36. 8
22. 186
24. 457
22. 186
50.0
32.5
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
Trousers, slacks and shorts Doz.
(outer), not knit, men's and
boys'
Trousers, slacks and shorts Doz.
(outer), not knit, women's,
girls' and infants'
Blouses, not knit Doz.
Dresses (including uniforms), Doz.
not knit
Playsuits, washsuits, sunsuits, Doz.
creepers, rompers, etc., not
knit, n.e.s.
Dressing gowns, including bath- Doz.
robes, beach robes, lounge
robes, housecoats and dust-
ers, not knit
Undershirts, knit, men's and Doz.
boys'
Briefs and undershorts, men's Doz.
and boys'
Drawers, shorts and briefs, Doz.
knit, n.e.s.
All other underwear, not knit Doz.
Pajamas and other nightwear Doz.
Brassieres and other body- Doz.
supporting garments
Wearing apparel, knit, n.e.s. Lb.
Wearing apparel, not knit. Lb.
n.e.s.
All other cotton textiles Lb.
17. 707
17. 797
14.53
45.3
25.0
51.0
9. 2
11.25
5.0
16.0
51.96
4.75
4.6
4. 6
4. 6
Apparel items exported in sets shall be recorded
under separate categories of the component items.
First U. S. Letter
OCTOREB 5, 1904
Sib : I refer to your letter of October 5, 19G4, which
reads as follows :
"I have the honor to refer to the agreement effectet
by an exchange of notes toda.v between the Govern
ment of the Socialist Federal Republic of Yugoslavia*
and the Government of the United States of Americti
concerning exports of cotton textiles from Yugoslavia!
to the United States.
"With regard to currently restrained categories ii
which the restraint levels are now filled, the Govern ;
ment of the Socialist Federal Republic of Yugoslaviti
may wish to initiate exports prior to January 1, 19G5 ii
order to pre.serve an orderly pattern of exports to th(j
United States. Accordingly, the Government of tin!
Socialist Federal Republic of Yugoslavia now request) 1
that the Government of the United States agree to in^r
mit entry of exports in these categories, up to 20 iier
cent of the specific ceilings for these categories estabi
lished for the first year of the bilateral agreement, ex
ported from Yugoslavia in the period November H
through December 31, 1964, whenever the Governmen:
of the Socialist Federal Republic of Yugoslavia advisa
that these goods have been licensed for exiKirt againsi
the specific ceilings of the bilateral agreement fo)
calendar year 1965. Exports from Yugoslavia in thi
period November 10 through December 31, 1964 ad
niitted for entry into the United States in accordanci
with the advice of the GovernnuMit of the Socialist Fed
eral Republic of Yugoslavia would be applied againsi
604
DEPARTMENT OF STATE BULI.ETIh
the specific ceilings of the appropriate categories dur-
ing the first year of the bilateral agreement. It is un-
derstood that the GoverutUfnt of the Socialist Federal
Republic of Yugoslavia would advise the United States
of all such shipments at the time they are licensed for
lexport to the United States.
"The Government of the Socialist Federal Uepublic of
Yugoslavia also requests that the Government of the
United States now agree to consider favorably, on the
same terms, similar problems which might arise with
regard to other categories currently under restraint in
which restraint levels are not now filled."
I wish to assure you on the behalf of my Government
that your proposal is acceptable to the Government of
the United States.
Accept, Sir, the assurance of my high consideration.
For the Secretary of State :
G. Griffith Johnson
Assistant Secretary
Second U.S. Letter
October 5, 1964
Sib : I refer to the agreement, effected by an
exchange of notes today, between the Government of
ithe Socialist Federal Republic of Yugoslavia and the
iGovernment of the United States of America concern-
ling exports of cotton textiles from Yugoslavia to
the United States.
As indicated in the attached tabulation,' 863,780
square yards of cotton textiles of Y^ugoslav origin
cla.ssified in category 9, are now held in bonded
warehouse in the United States because these ship-
ments are in excess of the restraint level of 4.1
million square yards for that category applicable for
the twelve-month period of January 3, 1964 to Janu-
jary 2, 1965.
I It is my understanding that the Government of
|the Socialist Federal Republic of Yugoslavia is agree-
able to the release of these goods, to be charged
against the export ceilings for category 9 estab-
llished under the bilateral agreement effected today
Ln the following manner:
50 percent of the quantity released to be deducted
from the ceiling for the first year of the agreement,
beginning January 1, 196.5 and the remaining 50
percent to be deducted from the ceiling for the second
rear of the agreement, beginning January 1, 1966.
If this understanding is correct, I would appreciate
receiving confirmation' from the Government of the
Socialist Federal Republic of Yugoslavia.
Accept, Sir, the assurance of my high consideration.
For the Secretary of State :
G. Griffith Joh.nson
Assistant Secretary
'Not printed here.
X3TOBER 26, 1964
Current Actions
MULTILATERAL
Atomic Energy
Agreement for the application of safeguards by the
International Atomic Energy Agency to the bilateral
agreement of March 27, 1957, as amended (TIAS
3522, 3842, 4533, 5122), between the United States
and Thailand for cooperation concerning civil uses
of atomic energy. Signed at \'ienna September 30,
1964. Enters into force on the date on which the
Agency accepts the initial inventor}-.
Sii/iiatiires: International Atomic Energy Agency,
Thailand, United States.
Law o{ the Sea
Convention on the high seas. Done at Geneva April 29,
1958. Entered into force September 30, 1962. TIAS
5200.
Accession deposited: Uganda, September 14, 1964.
Convention on the continental shelf. Done at Geneva
April 29, 1958. Entered into force June 10, 1064.
TIAS 5578.
Accession deposited: Uganda, September 14, 1964.
Convention on the territorial sea and contiguous
zone. Done at Geneva April 29, 19.58. Entered into
force September 10, 1904. TIAS 50;i9.
Accession deposited: Uganda, September 14, 1964.
Convention on fishing and con.servation of living re-
sources of the high seas. Done at Geneva April 29.
1958."
Accession deposited: Uganda, September 14, 1964.
Nuclear Test Ban
Treaty banning nuclear weapon tests in the atmosphere,
in outer space and under water. Done at Moscow
August 5, 1963. Entered into force October 10, 1963.
TIAS 5433.
Ratifieation deposited: Nepal, October 7, 1964.
Satellite Communications System
Agreement establishing interim arrangements for a
global commercial communications satellite system.
Done at Washington August 20, 1964. Entered Into
force August 20, 1964. TIAS 5646.
Siffnatiire: Ireland, October 5, 1964.
Special agreement. Done at Washington August 20,
1964. Entered into force August 20, 1964. TIAS
5646.
Signature: An Roinn Poist Agus Telegrafa for Ire-
land, October 5, 1964.
War
Geneva convention relative to treatment of prisoners of
war;
Geneva convention for amelioration of condition of
wounded and sick in armed forces in the field ;
Geneva convention for amelioration of condition of
w-ounded. sick, and shipwrecked members of armed
forces at sea ;
Geneva convention relative to protection of civilian
persons in time of war.
Dated at Geneva August 12, 1949. Entered into
force October 21, 1950; for the United States
February 2, 195G. TIAS 3304, 3362, 3363, and 3365,
respectively.
Notification given that it considers itself hound:
Jamaica, July 17, 1964.
' Not in force.
605
Wheat
International wheat agreement, 1962. Open for sig-
nature at Wasiiington April 19 through May 15,
1962. Entered into force .July 16, 1962, for part I
and parts III to VII, and August 1, 1962, for part
II. TIAS 5115.
Accession deposited: Ecuador, September 29, 1964.
Richard I. Phillips as Deputy Assistant Secretary
for Public Affairs, effective September 27. (For
biographic details, see Department of State press
release 397 dated September 14.)
BILATERAL
Netherlands
Protocol modifying and supplementing extension to the
Netherlands Antilles of the convention for avoidance
of double taxation and prevention of fiscal evasion
vfith respect to income and certain other taxes of
April 29, 1948, as amended (TIAS 1S55, 3.S66, 3367).
Signed at The Hague October 23, 1963. Entered into
force September 28, 1964.
Proclaimed Vy the President: September 30, 1964.
Philippines
Convention for the avoidance of double taxation and
the prevention of fiscal evasion with respect to taxes
on income. Signed at Washington October 5, 1964.
Enters into force upon exchange of instruments of
ratification.
DEPARTMENT AND FOREIGN SERVICE
Confirmations
The Senate on October 2 confirmed the nomination
of Raul H. Castro to be Ambassador to El Salvador.
(For biographic details, see White House press release
dated September 4.)
Designations
Robert J. McCloskey as Director of the Oflice of
News, effective September 27. (For biographic details,
see Department of State press release 399 dated
September 14.)
Check List of Department of State
Press Releases: October 4-11
Press releases ma.v be oljtained from the Oflice
of News, Department of .State, Washington, D.C.,
20520.
Releases issued prior to October 4 which ap-
pear in this issue of the Bulletin are Nos. 413
of September 23 and 419 of September 28.
Subject
U.S. participation in International
conferences.
Cotton textile agreement with Yugo-
slavia.
Rusk : "Trade, Investment, and
Peace."
Income tax convention signed witli
Philippines.
Uganda credentials (rewrite).
Rostow : "U.S. Policy in a Chang-
ing World."
Honduras credentials (rewrite).
U.S. aid to preserve Nubian monu-
ments.
Rostow : "Some Lessons of Eco-
nomic Development Since the
War."
Lyon sworn in as Ambassador to
Ceylon (biographic details).
Leif Erikson Day ceremonies.
International Joint Commission
.studies of Great Lakes water
levels and pollution.
Rusk : news conference.
IJC study of Red River pollution.
Rusk : National Academy of
Sciences.
Trade talks with Uruguay.
No.
Date
*429
10/5
430
10/5
432
10/5
433
10/5
434
t435
10/6
10/6
436
t437
10/6
10/6
1438 10/7
*439 10/7
*440 10/8
441 10/8
442 10/8
443 10/9
t444 10/9
t445 10/9
*Xot printed.
tHeld for a later issue of the Bullehtn.
606
DEr.vnXMENT OF STATE BULLETIlf
INDEX Octoler 26, 196^ Vol. LI, ^'o. 1322
Agriculture. Trade, Investinent. and Peace
(Rusk) 570
American Republics. Tlie Alliance for Progress :
A Challenge and an Opportunity (Mann) . . 593
Atomic Energy. Secretary Rusk's News Confer-
ence of October 8 575
Canada. U.S. Requests Three IJC Studies on
Water Levels and Pollution (texts of letters) . 598
Congress
Confirmations (Castro) GOO
Congressional Documents Relating to Foreign
Policy 600
Senate Confirms Mrs. Tree for U.N. Trusteeship
Council , . . . 600
Senate Confirms U.S. Delegation to 19th U.N.
General Assembly 6(K)
Cuba. Secretary Rusk's News Conference of
October S 575
Department and Foreign Service
Confirmations (Castro) 606
Designations (McCloskey, Phillips) 606
Economic Affairs
Income Tax Protocol Enters Into Force With
Netherlands 601
The New Role of Japan in World Affairs : An
American Policy View (Barnett) 586
Trade, Investment, and Peace (Rusk) . . . 570
U.S. and Philippines Sign Income Tax Conven-
tion 601
U.S. and Yugoslavia Conclude Cotton Textile
Agreement (texts of agreement and related
notes) , . . . . 602
El Salvador. Castro confirmed as Ambassador . 606
Foreign Aid. The Alliance for Progress : A
Challenge and an Opportunity (Mann) . . . 593
Honduras. Letters of Credence (Midence
Soto) 582
India. Secretary Rusk's News Conference of
October 8 575
Indonesia. Secretary Rusk's News Conference
of October 8 575
International Organizations and Conferences.
Secretary Rusk's News Conference of Octo-
ber 8 , 575
Japan
The New Role of Japan in World Affairs : An
American Policy View (Barnett) 586
U.S. and Japan Inaugurate Television Link Via
Syncom III (Johnson, Rusk, Shiina) . . . 591
Laos. Secretary Rusk's News Conference of
October 8 575
Malaysia. Secretary Rusk's News Conference of
October 8 575
Netherlands. Income Tax Protocol Enters Into
Force With Netherlands 601
Non-Self-Governing Territories. Senate Con-
firms Mrs. Tree for U.N. Trusteeship Council . 600
North Atlantic Treaty Organization
I'resident Johnson Meets With NATO Secretary
General (Brosio, Johnson) 582
Secretary Rusk's News Conference of October 8 . 575
Philippines
Secretary Rusk's News Conference of October 8 . 575
U.S. and Philiijpines Sign Income Tax Conven-
tion 601
Presidential Documents
Columbus Day, 1964 597
President Johnson Meets With NATO Secretary
General 582
President Johnson Sends Message to Nonalined
Nations Conference 581
U.S. and Japan Inaugurate Television Link Via
Syncom III 591
Public Affairs
McCloskey designated Director, Office of News . 606
Phillips designated Deputy Assistant Secretary . 606
Science. U.S. and Japan Inaugurate Television
Link Via Syncom III ( John.son, Rusk, Shiina) . .591
Treaty Information
Current Actions 605
Income Tax Protocol Enters Into Force With
Netherlands 601
U.S. and Philippines Sign Income Tax Conven-
tion 601
U.S. and Yugoslavia Conclude Cotton Textile
Agreement (texts of agreement and related
notes) 602
Uganda. Letters of Credence ( Asea ) .... 582
United Nations
Secretary Rusk's News Conference of Octol>er 8 . 575
Senate Confirms Mrs. Tree for U.N. Trusteeship
Council 600
Senate Confirms U.S. Delegation to 19th U.N.
General Assembly 600
Viet-Nam. Secretary Rusk's News Conference
of October 8 575
Yugoslavia. U.S. and Yugoislavia Conclude Cot-
ton Textile Agreement (texts of agreement
and related notes) .... 60?
Name Index
Asea, Solomon Bayo 582
Barnett, Robert w' 586
Brosio, Manlio 582
Carlson, Frank 600
Castro, Raul H (606
Foster, William C isoo
Gardner, Richard N 600
.Tohnson, President 581, 582, 591, 597
Long. Russell B 600
Mann. Thomas C .593
McCloskey, Robert J 606
Midence Soto, Ricardo .582
Noyes, Charles P 600
Phillips, Richard I 606
Plimpton. Francis T. P 600
Rusk. Secretary 570,575,591
Shiina, Etsusaburo 591
Stevenson. Adlai E . 600
Tillett, Mrs. Gladys A 600
Tree, Mrs. Marietta P 600
Williams, Franklin H 600
Yost, Charles W 600
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THE OFFICIAL WEEKLY RECORD OF UNITED STATES FOREIGN POLICY
THE
DEPARTMENT
OF
STATE
BULLETIN
Vol LI, No. 1323
November 2, 1964.
PRESIDENT REPORTS ON CHANGE IN SOVIET LEADERSHIP, CHINESE
NUCLEAR TEST, AND NEW BRITISH GOVERNMENT 610
MAN AND NATURE
Address by Secretary Rush 618
AN APPEAL TO DISCONTENT
by Under Secretary Ball 622
PRESIDENT MACAPAGAL OF PHILIPPINES VISITS UNITED STATES 628
U.S. POLICY IN A CHANGING WORLD
by W. W. Rostow, Counselor 637
For index see inside hack cover
President Reports on Change in Soviet Leadership,
Chinese Nuclear Test, and New British Government
Address ty President Johnson ^
My fellow Americans: On Thursday of last
week [October 15], from the Kremlin in Mos-
cow, the Soviet Government announced a change
in its leadership. On Friday of last week, Com-
munist China exploded a nuclear device on an
isolated test site in Sinkiang. Both of these
important events make it right that your Presi-
dent report to you as fully and as clearly and
as promptly as he can. That is what I mean
to do this evening.
Events in Moscow
Now, let me begin with events in Moscow.
We do not know exactly what happened to
Nikita Khrushchev last Thursday. We do know
that he has been forced out of power by his for-
mer friends and colleagues. Five days ago he
had only praise in Moscow. Today we learn
' Delivered from the White House by television and
radio on Oct. 18 (White House press release; as-deliv-
ered text).
only of his faults. Yet the men at the top to-
day are the same men that he picked for leader-
ship. These men carried on the administration
of the Soviet Government when he was absent
from the Soviet capital, and that was nearly
half of the time that he was in power.
Mr. Khrushchev was clearly the dominant
figure in making Soviet policy. After Lenin
and Stalin, he is onlj' the third man in history
to have made himself the undisputed master of
Communist Eussia. There were times when he
was guilty of dangerous adventure. It required
great American firmness and good sense — first
in Berlin and later in the Cuban missile crisis —
to turn back his threats and actions without war.
Yet he learned from his mistakes, and he was
not blind to realities. In the last 2 years, his
Government had shown itself aware of the need
for sanity in the nuclear age.
He joined in the nuclear test ban treat}'. He
joined in the "hot line," which can help prevent
DEPARTMENT OF STATE BULLETIN VOL. LI, NO. 1323 PUBLICATION 7764 NOVEMBER 2, 1964
The Department ot State Bulletin, a
weekly publication ISHued by the Office
of Media Services. Bureau of Public Af-
fairs, provides the public and Interested
agencies of the Government with infor-
mation on developments In the field of
foreign relations and on the work of the
Department of State and the Foreign
Service. The Bulletin Includes selected
preSH releases on foreign policy, Issned
by the White House and the Department,
and statements and addresses made by
the President and by the Secretary of
State and other oDleers of the Depart-
ment, as well as special articles on vari-
ous phases of International affairs and
the functions of the Department. Infor-
mation Is Included concerning treaties
and International agreements to which
the Dnlted States is or may become a
party and treaties of general Inter-
national Interest.
Publications of the Department, Dnlted
Nations documents, and legislative mate-
rial In the field of International relations
are listed currently.
The Bulletin Is for sale by the Super-
intendent of Documents, U.S. Govern-
ment Printing Office, Washington, D.C.,
20402. Price : 52 Issues, domestic $10 ;
foreign $15 : single cop.v. .*iO cents.
Use of funds for printing of this pnl>-
llcatlon approved by the Director of the
Bureau of the Budget (January 19,
1961).
NOTE : Contents of this publication are
not copyrighted and items contained
herein may be reprinted. Citation of the
Dejinrtment ot State Bulletin a* the
source will be appreciated. The Bulletin
Is Indexed In the Readers' Guide to
l*erlodical Literature.
610
DEPARTMENT OF STATE BULLETIN
a war by accident. He agreed that space should
be kept free of nuclear weapons. In these ac-
tions, he demonstrated good sense and sober
judgment. We do not think it was these ac-
tions tiiat led to his removal.
We cannot know for sure just what did lead
to this secret decision. Our intelligence esti-
mate is that Khrushchev learned of the decision
only when for him it was too late.
There has been discontent and strain and
failure, both within the Soviet Union and within
the Communist bloc as a whole. All of this has
been evident for all to see. These troubles arc
not the creation of one man. They will not end
with his removal.
When I^nin died in 1924, Stalin took 4 years
to consolidate his power. When Stalin died in
1953, it was not Mr. Khrushchev who fii-st
emerged. But two men now share top respon-
sibility in the Soviet Union, and their exact rela-
tion to each other and their colleagues is not
yet very clear. They are experienced, but
younger, men and perhaps less rooted in the
past. They are said to be realistic. We can
hope that they will share with us our great
objective — the prevention of nuclear war.
But what does all this mean for us in Amer-
ica ? It means at least four things :
First: We must never forget that the men
in the Kremlin remain dedicated, dangerous
Communists. A time of trouble among Com-
munists requires steady vigilance among free
men — and most of all among Americans, for it
is the strength of the United States that holds
the balance firm against danger.
Second: There will be turmoil in the Com-
munist world. It is likely that the men in the
Kremlin will be concerned primarily with prob-
lems of communism. This would not be all
good, because there are problems and issues that
need attention between our world and theirs.
But it is not all bad, because men who are busy
with internal problems may not be tempted to
reckless external acts.
Third: This great change will not stop the
forces in Eastern Europe that are working for
greater independence. Those forces will con-
tinue to have our sympathy. We will not give
up our hope of building new bridges to these
peoples.
President Johnson Receives Message
From New Soviet Government
statement by President Johnson
White House press release dated October 16
Tliis morning I reoeived Ambassatlor [Ana-
toliy F.] Dobrynin and talked with him for 45
minutes. The Ambassador brought me a first
message from the new Soviet Government. The
message .stated the desire of the Soviet Govern-
ment to continue in seelving for steps toward a
more solid peac-e. I told the Ambassador that
I welcomed this assurance and that the Soviet
Government and all governments could rely on
the determination of the United States to
persevere steadfastly in its own proven deter-
mination to serve the cause of peace and
international understanding. I reviewed the
developments which liave occurred in relations
between the Soviet Government and the West
in recent years and expressed the puri>ose of
the United States to continue in the quest for
peace.
Fourth: Our own course must continue to
prove that we, on our side, are ready to get on
with the work of peace.
The new Soviet Government has officially in-
formed me, through Ambassador [Anatoliy F.]
Dobrynin, day before yesterday, that it plans
no change in basic foreign policy. I spoke
frankly, as always, to the Soviet Ambassador.
I told him that the quest for peace in America
had never been more determined than it is now.
1 told him that we intend to bury no one and
we do not intend to be buried. I reminded the
Ambassador of the danger that we all faced
2 years ago in Cuba. I told him that any So-
viet Government which is ready to work for
peace will find us ready in America. I said to
the Ambassador that I would be ready to talk
to anyone when it would help the cause of
peace. I believe that this was a good beginning
on both sides.
Chinese Nuclear Explosion
That same day the Chinese nuclear device
was exploded at a test site near a lake called
Lop Nor, in the Takla Makan desert of the re-
mote central Asian province of Sinkiang.
The building of this test site had been known
X0\-EMBER 2, 1964
611
Chinese Communists Conduct Nuclear Test
statement by President Johnson
White House press release dated October 16
The Chinese Ommimists have announced that
they conducted their first nuclear test today. By
our own detection system we have confirmed that
a low-yield test actually took place in western
China at about 3 a.m., e.d.t.
As Secretary Rusk noted on September 29,^ we
have known for some time that the Chinese Com-
munists had a nuclear development program which
was approaching the point of a first detonation of
a test device.
This explosion comes as no surprise to the United
States Government. It has been fully taken into
account in planning our own defense program and
nuclear capability. Its military significance should
not be overestimated. Many years and great efforts
separate testing of a first nuclear device from
having a stockpile of reliable weapons with effec-
tive delivery systems.
Still more basic is the fact that, if and when
the Chinese Communists develop nuclear weapons
systems, free-world nuclear strength will continue
to be enormously greater.
The United States reaflirms its defense commit-
ments in Asia. Even if Communist China should
eventually develop an effective nuclear capability,
that capability would have no effect upon the
readiness of the United States to respond to re-
quests from Asian nations for help in dealing with
' Bulletin of Oct. 19, 1964, p. 542.
Communist Chinese aggression. The United States
will also not be diverted from its efforts to help the
nations of Asia to defend themselves and to advanc-e
the welfare of their people.
The Chinese Conmiunist nuclear weapons pro-
gram is a tragedy for the Chinese people, who have
suffered so much under the Communist regime.
Scarce economic resources which could have been
used to improve the well-being of the Chinese peo-
ple have been used to produce a crude nuclear
device which can only increase the sense of in-
security of the Chinese people. Other Asian nations
have wisely chosen instead to work for the well-
being of their people through economic development
and peaceful use of the atom. In this way they
have made a great contribution to the jteace and
security of the world.
The Chinese Communist nuclear detonation is a
reflection of policies which do not serve the cause
of i)eace. But there is no reason to fear that it will
lead to immediate dangers of war. The nations of
the free world will recognize its limitecl significance
and will persevere in their determination to pre-
serve their independence.
We join all humanity in regretting the contamina-
tion of the atmosphere caused by the Chinese Com-
munist test. We will continue in our own efforts
to keep the atmosphere clean. We wall pursue with
dedication and determination our purpose of achiev-
ing concrete practical steps on the road that leads
away from nuclear armaments and war and toward
a world of cooperation, development, and peace.
to our American intelligence for several years.
In recent weeks the rapid pace of work there
gave us a quite clear signal that the long and
bitter efforts of this regime were leading at last
to a nuclear test. At first, in the 1950's, Eussia
helped the Chinese. This assistance in the
spread of nuclear weapons may now be regarded
with some dismay in Moscow. We believe that
this help was ended in 1960 as the quarrel
among the Communists grew sharper. Soviet
teclmicians left suddenly, with their blueprints
under their arms, and the unfinished facilities
were just left there standing and the expected
supplies were cut off. But tlie Red Chinese
kept to their chosen purpose, even as tlieir eco-
nomic plans collapsed and the suffering of their
people increased.
Our o^^^^ distinguished Secretary of State,
Mr. Rusk, gave timely warning as the prepara-
tions at Lop Nor advanced,^ and when the test
occurred I at once told the world that this ex-
plosion will not tui-n Americans and other free
peoples from their steady purpose.
No American should treat this matter lightly.
Until this week, only four ijowers had entered
the dangerous world of nuclear explosions.
"N^ltatever their differences, all four are sober
and serious states, with long experience as
major powers in the modern world. Commu-
nist China has no such experience. Its miclear
pretensions are both expensive and cruel to its
people. It fools no one when it offers to trade
away its fii-st small accumulation of nuclear
power against the mighty arsenals of those who i
' Bulletin of Oct. 19, 1964, p. 542.
612
DEPARTMENT OF ST.VTE BULLETIN
limit Communist Chinese ambitions. It shocks
us by its readiness to pollute the atmosphere
with fallout. But this explosion remains a
fact, sad and serious. We must not, we have
not, and we will not ignore it.
I discussed the limited meaning of this event
in a statement on last Fritlay. The world al-
ready knows that we were not surprised; that
our defense plans take full account of this devel-
opment; that we reaffirm our defense commit-
ments in Asia ; that it is a long, hard road from
a first nuclear device to an effective weapons
system; and that our strength is overwhelming
now and will be kept that way.
But what I have in my mind tonight is a dif-
ferent part of the meaning of this explosion at
Lop Nor. Communist China's expensive and
demanding effort tempts other states to equal
folly. Nuclear spread is dangerous to all man-
kind. "WHiat if there should come to be 10 nu-
clear powers, or maybe 20 nuclear powers?
"Wliat if we must learn to look everywhere for
the restraint which our own example now sets
for a few ? "Will the human race be safe in such
a day?
The lesson of Lop Nor is that we are right
to recognize the danger of nuclear spread, that
we must continue to work against it — and we
will.
First: We will continue to support the
limited test ban treaty, which has made the air
cleaner. We call on the world — especially Red
China — to join the nations which have signed
that treaty.
Second: We will continue to work for an
ending of all nuclear tests of every kind, by
solid and verified agreement.
Third: We continue to believe that the
struggle against nuclear spread is as much in
the Soviet interest as in our own. We will be
ready to join with them and all the world in
working to avoid it.
Fourth: The nations that do not seek na-
tional nuclear weapons can be sure that, if they
need our strong support against some threat
of nuclear blackmail, then they will have it.
I The two events I have discussed are large
and full of meaning (and I will discuss them
tomorrow with the legislative leaders ; they are
coming here to the White House for a full and
President Sends Congratulations
to New U.K. Prime Minister
Following is the text of a congratulatory mes-
sage from President Johnson to Harold Wilson,
Prime Minister of the United Kingdom.
White House press release dated October 16
October 16, 1964
Dear Mr. Prime Minister : My warmest con-
gratulations on your election victory. As you
enter the great office of Prime Minister, I want
to extend my very best wishes for success for
you and your government and the people of The
United Kingdom. I look forward to the continu-
ation of close and friendly cooperation, based
on mutual confidence and respect, which has
bound our countries so closely for so long.
With warmest personal regards.
Sincerely,
Lyndon B. Johnson
complete briefing tomorrow afternoon) yet
they do not change our basic policy. They just
reinforce it.
Victory of British Labor Party
Now let me take a minute to say that the
same thing is true about another important
event this week. It is the victory of another
party with another leader in Great Britain.
The British Labor Party is the same party
tliat held power when the Atlantic alliance was
founded, when British and American pilots
flew the Berlin airlift together, when English-
men joined us in Korea. It is a party of free-
dom, of democracy, and of good faith. Today
it has the confidence of the British people. It
also has ours. Tliey are our friends — as the
Conservatives before them are our friends —
and as governments of both parties have been
friends for generations.
We congratulate the winners. We send warm
regards to the losers. The friendship of our
two nations goes on. This is our way with all
our trusted allies.
This has been an eventful week in the affairs
of the world. It is not the first such week, nor
will it be the last, for the world has changed
many times in the last 20 years. Great leaders
have come and gone. Old enemies have become
new friends. Danger has taken the place of
danger.
NOVESIBER 2, 1964
613
Through this period we have steadily moved
toward a more hopeful world. We have moved
toward widening freedom and toward securing
a more lasting peace. We will continue in this
dii'ection.
What happens in other countries is impor-
tant. But the key to peace is to be found in
the strength and the good sense of the United
States of America. Tonight we are the strong-
est nation in all the world, and the world knows
it. We love freedom, and we will protect it,
and we will preserve it. Tonight, as always,
America's purpose is peace for all men.
Almost 11 months ago, at a still more fateful
hour, just after I had assumed the Presidency,
I spoke to all of the Congress and to our people
of the purpose of America.^ Let me close to-
night by repeating what I said then:
We must be ready to defend the national interest
and to negotiate the common interest. This is the
path that we shall continue to pursue. Those who
test our courage will find it strong, and those who seek
our friendship will find it honorable. We will demon-
strate anew that the strong can be just in the use of
strength — and the just can be strong in the defense of
justice.
Tliank you and good night to all of you.
'Ibid., Dec. 16, 1963, p. 010.
Mr. Rusk and Mr. Bundy Interviewed on Red China's Nuclear Testing
On October 16 Secretary Rusk was inter-
vieioed hy George Herman on the Columbia
Broadcasting Systeiri's television program ^''Tlie
GoTTwrmnist Explosion,^'' and Assistant Secre-
tary for Far Eastern Affairs William Bundy
was interviewed by EUe Abel on the National
Broadcasting Gompany''s television program
'■'■Red Ghina and the Bomb.'''' Following are
transcripts of the two interviews.
INTERVIEW WITH SECRETARY RUSK
Mr. Herman: Mr. Secretary, you have said
that you expected this development in Red
Ghina. The President today said that it was
cranked into their plans and expectat'wns ahead
of time.^ How did you expect it? What plans
were made? How did you figure it in?
Secretary Rusk: Well, we have known for
some years that the Chinese were working on a
nuclear weapons system and that there would
come a point when they would detonate their
first device. More recently we have had very
' See p. 610.
clear indication and evidence that this could
come at any time. On September 29 I an-
nounced that we expected it at any time.-
But for the past several years we have as-
sumed that they would be going down this trail.
They made it very clear that they were not
going to sign a nuclear test ban treaty but they
would try to equip themselves with nuclear
weapons. And so we have taken this fully into
account in our own defense plans with respect
to nuclear weapons, both in production and in
such tilings as deployment, so that there is no
possibility whatever that there is any lack of
security for the free world in the Pacific Ocean
area as a result of the detonation of this first
device by Peiping.
Q. The President said today that he thought
that this was not an iruiident leading immedi-
ately or in the foreseeahle future to tear. Do
you think, however, that it might lead to in-
creased m,ilitancy by the Ghinese Communists?
Might they be tougher now?
A. Well, Peiping has been preaching the doc-
' Bulletin of Oct. 19, 1964, p. 542.
G14
DEPARTMENT OF STATE BULLETIN
trine of niilitancy and has been pressing in ac-
tion— for exiiniple, tlieir pi-essures in Southeast
Asia. They have pressed it to a point where
tlieir attitude lias created veiy serious differ-
ences, even within the Communist world, and
of course it has created opposition and resist-
ance on the part of the free world. I think we
will just have to wait and see what ell'ect this
will have on their attitude. If they continue
their course of pressure and militancy, then of
course some vei-y serious events are ahead.
On the other hand, when they see one of these
things go off, even the most primitive tyi>e, of
device, and realize the scale on which nuclear
war can occur if they invite such a war, this
may also inject into their own thinking some
caution that might not otherwise have been
there.
Q. You think that they were not fully aware
he fore of the consequences of nuclear war?
A. "Well, I think they have undoubtedly, as
an intellectual matter, known — recognized what
this destructive power can be. But I think also
that those who see it firsthand might have a
little different appreciation of what it might
mean, particularly when what they have seen
can be multiplied by the thousands and thou-
sands of times if they invite the results of their
aggression.
Q. How about those who see it at first hand
across the horder — China's neighiors? Do you
think that this might weaken their determina-
tion to resist Communist expansion?
A. No, I don't think so. I think that these
developing, sophisticated neighbors in that part
of the world have a full understanding of the
gap in power that exists in the world today.
They have shown their determination to take
care of their own independence and freedom,
and I don't believe that this is going to have
any influence in undermining their determina-
tion to be independent. This is not something
that will change that fundamental attitude.
Q. Might there he some pressures from, our
allies in the Far East for accommodation of the
Chinese Communists'' call for a summit meet-
ing?
A. "Well, this call for a summit meeting is a
smokescreen. They used that at tiie time that
they refused to sign the nuclear test ban treaty.
But wo know from many signs that they are
not seriously interested in disai-mament. They
have made it very clear, for example, if I can
quote them, that disarmament can be realized
only after imperialism and capitalism and all
systems of exploitation have been eliminated.
Now, we have had some exchanges of words
in the Warsaw talks that have been going on
over the last 8 years on the subject of disarma-
ment. No interest. No interest. This is an
attempt on their part to pretend to be inter-
ested in the serious measures of disarmament in
order to meet the concerns of almost the entire
rest of the world, particularly the Afro-Asian
world, aljout their coming into the nuclear test-
ing program and contaminating the atmosphere.
I don't attach any serious sigiaificance to this
call for a summit meeting for such a purpose.
If they are interested in disarmament, then the
first step from their point of view is to stop this
course of aggression and pressure and mili-
tancy. And if they would make it quite clear
that they are prepared to leave their neighbors
alone, then maybe steps in the reduction of the
arms race can be seriously taken up.
Q. Do you have any particular steps as sort
of prerequisite steps?
A. No. These questions of disarmament
have been explored in great detail in Geneva,
and they will be exjilored there further. But
as far as China is concerned, we see no indica-
tion that they are seriously interested.
Q. I just wanted to ask you, if I could, sir,
in light of the last 24- hours, do you see any con-
nection in the headlines hetween — in the !34
hours — the fall of Khrushchev and the Chinese
explosion?
A. No. I don't think so. I think some of
the stresses and strains within the Commimist
world, including the Moscow-Peiping dispute,
might have had something to do with the sit-
uation in Moscow. But I don't think that it
has had, on its side, anything to do with the
explosion of the device in Peiping.
Q. Thank you.
KOVEMBER 2, 1964
615
INTERVIEW WITH MR. BUNDY
Mr. Abel: Mr. Bunchj, it was jiist 17 days
ago that Secretary of State Rusk alerted tlie
world to the possibility of a Chinese bomb ex-
plosion. Now that it has happened, what does
this do to the security of those numberless small
and rather weak countries in Asia that we are
supporting?
Mr. Bundy: Well, as you know, Mr. Abel,
this was a test of a test device. The Commu-
nist Chinese are surely many years away from
having either any significant quantity of weap-
ons or any adequate delivery systems; and in
military terms the free-world nuclear posture,
which is, of course, principally our own, is
vastly superior to anything they could possibly
have even over a period of 5 or 10 years.
In the face of this military reality the ques-
tion comes down to whether the nations of the
world that are particularly — possibly — threat-
ened by Communist China miderstand these mil-
itary facts and are detei-mined to go on defend-
ing themselves. We have no doubt at all on
the first comit, and on the second count there
is every indication that they are really very so-
phisticated about this and miderstand that this
in itself, and indeed for many, many years to
come, has no real effect on the military balance,
on their capacity to defend themselves, on our
capacity to carry out our commitments in help-
ing them do that.
Q. Even without the nuclear bomb, hoiv-
ever, the Chinese were the most formidable
poxcer in Asia. Doesri't this — just the achieve-
ment of this technological success — do a great
deal for their prestige?
A. Well, in terms of what it amounts to as
an achievement, they had Soviet assistance in
this field up to 1960, when the Soviets with-
drew. And from the level the Soviets left them
with to get to the level of being able to test a
device in this fashion is actually not too long a
step at all. And then there is the question of
how much nuclear material they can produce.
So it really isn't an outstanding thing to have
taken 4 years from theories that are well un-
derstood throughout the world, and indeed lane
been for nearly 20 years, to achieve what they
have done.
I don't think it would have any very marked
effect on their prestige. They do retain,
of course, substantial military capabilities of
the conventional sort, but I don't think it would
have much to add to that, at least for many
years to come.
Q. I notice Indians Prime Minister [Lai
Bahadur] Shastri today spoke of this develop- j
Tnent as a danger and a menace to mankind.
Now, his caimtry had been a rather recent vic-
tim of Chinese aggression. What are we pre-
pared to do to reassure the Indians?
A. Of course we have specific alliance com-
mitments throughout Asia with the countries
that have wished that. As to India, of course
India has chosen to pursue a policy free of al- ■
liances. But I think India, and any other |
country that might be threatened by aggres-
sion, well knows that the United States would
take a very sympathetic attitude toward any
country so threatened. I think that is the only
way one can state it for the present. But I
would think that India, like the other coimtries,
must realistically understand that this doesn't
have any real effect on the military situation
and won't have at least for many, many years
to come.
Q. Do you see any possible connection be-
tween this Chinese nuclear capacity, so dra-
matically demonstrated noiv, and the events in
Moscow yesterday — Mr. Khrushchev''s down-
fall?
A. I would not see any. One can surmise —
there is no real evidence — that differences of
view as to the dispute between the Soviets and
the Chinese Conununists may have played a
part in the changes in the Soviet leadership that
were announced yesterday, but it is hard to see
how this explosion, even if it had been foreseen
by the Soviets, could in itself have played any
real part.
Q. What about the Chinese appeal now for
a summit conference?
A. Well, we regard that as a pretty clear
smokescreen, and I think the tipoff is that a
very similar proposal was made by them in
July liMi;^ just before the nuclear test ban treaty
was signed between the British and the Soviets
and ourselves. They are trying to devise a
616
DEPARTMENT OF STATE BULLETIN
coverup for the fact that this kind of atmos-
plieric testing is exactly what we 3 nations and
the 104 other nations who have signed that
treaty wished to see ended — atmospheric test-
ing. They are trying to justify it and to put a
peaceful coloration on it by a proposal that we
believe to be, quite frankly, almost entirely, if
not entirely, for propaganda purposes.
Q. You will recall, Mr. Bundy, that the Rus-
sians rather used to ■pooh-fooh the atomic homh
before they possessed it. Stalin v^ed to say
that it wouldnH change anything; imperialism
toould he destroyed the minute we tried to use
the homb. Do you exclude the possibility that
the Chinese, once they learn about the bomb in
this way, ivill develop a more sophisticated
attitude?
A. Xo, I think they might. As you know,
they have been following a pretty militant policy
for a great many years now, and the conse-
quences of this could be very serious. But per-
haps, as they see what nuclear power really is,
tills will have a somewhat sobering effect, and
as they realize that, whereas they had one device
probably of not too great yield tested, other
nations have power in being — oh, tens and
thousands of times greater — this might have
quite a sobering effect on them. I wouldn't
exclude it, but I wouldn't suppose it would nec-
essarily happen either way. They have got
very strong doctrinal compulsions on this mili-
tant policy.
Q. Is it fair to say that you, at this moment,
see no increase in danger to the security of our
free-world allies in Southeast Asia as a result
of this development?
A. I think that is a fair statement.
Q. You xoould just leave it at that?
A. Well, I think obviously one would be con-
cerned at the understanding of people that the
situation is as we — and, I think, any group of
people in the world who understand the facts
of this matter — know it to be, so that one would
be concerned that the understanding was as
complete as it should be. But as far as any
basic change in the situation, as I have said sev-
eral times, I just don't think this basically does
change the situation.
Q. Does China's bomb in any way call for an
increase in U.S. effort, expenditure, commitment
in Asia?
A. Well, as the President said today, we have
for a long time taken this possible testing, and
even what might follow from it in future years,
thoroughly into account in our planning for our
own nuclear capacity throughout the world, in-
cluding particularly our deployments in the Far
East; so it will not in itself, I believe — and I
have not checked this, but this is my understand-
ing of the Defense Department's position, from
my past experience there — this will call for no
change whatever.
Q. Thank you very much, Mr. Bundy.
U.S.-Uruguayan Trade Committee
Holds Talks at Washington
The Department of State announced on Oc-
tober 9 (press release 445) that the first meet-
ing of the Joint Uruguayan-United States
Trade Committee would take place in Wash-
ington on October 12-13. The two Govern-
ments agreed several months ago to establish
this committee, which is expected to meet peri-
odically to review matters of interest arising in
trade between the two countries.
The Uruguayan delegation was headed by
Juan F. Yriart, Uruguayan Ambassador at
Washington. Other participants included
Benito Medero, member of the Uruguayan Hon-
orary Commission on Agricultural and Live-
stock Development, and Justo B. Otegui, Dep-
uty General Manager of the Bank of the
Republic of Uruguay, as well as members of
the Uruguayan Embassy staff.
The U.S. delegation was headed by Deputy
Assistant Secretary of State for Economic Af-
fairs Jerome Jacobson. The delegation in-
cluded Stanley Nehmer, Director, Office of In-
ternational Resources in the Department of
State, and Joseph A. Silberstein, Chief, Argen-
tine-Paraguayan-Uruguayan Economic Affairs
in the Department of State. Also participating
were representatives of the Departments of Ag-
riculture and Commerce and the Agency for In-
ternational Development.
NOVElVrBER 2, 19 64
617
Man and Nature
Address hy Secretary Rusk '
More than 35 years ago I began my frequent
visits to tlie campus of this great university —
initially with hostile intent, as a member of a
Davidson team, but thei-eafter with the most
peaceful of purposes. During my student
days few even dimly perceived the world as it
has come to be today. Three decades of change
have been breathtaking in pace and have thrown
us back upon our most elementary commitments
to give us our direction amid the turbulence of
passing events.
Pandora's box of nuclear power has been
opened. Man is reaching out into space. Sci-
ence and technology have raced ahead on a
thousand fronts and are hurling us into an un-
knowable future at a speed which tests the very
nature of man. The old empires which were
led by those who believed in freedom have been
transformed into a half hundred new nations.
Imperialism is now a near monopoly of the
Communist world.
We in the United States have lost the great
spaces which separated us, in our continental
home, from the rest of the world. Rockets and
fission and fusion have put us in the front line.
And our productivity, combined with our basic
commitments as a people, has compelled us to
assume burdens of protecting the vital interests
of the free world.
Our foreign policy has ceased to be something
remote. Its central objective is the survival of
our nation and way of life. It is as close to
• Made at a coiivooation of the University of North
Carolina, Chapel Hill, N.C., on Oct. 12 (press release
447). The Secretary also made extemporaneous
remarks.
eveiy one of you as your hopes for a decent life
in a peaceful world. It will be in your living
room, and walk with you wherever you go, for
the rest of your lives.
The miderlying crisis of our times arises from
two fundamentally conflicting concepts of
organizing the alfairs of men. One concept is
a world of independent nations, each with its
own institutions and culture, but cooperating
with each other to preserve the peace and pro-
mot© their mutual interests. That is the kind
of decent world order envisaged in the preamble
and articles 1 and 2 of the United Nations Char-
ter. The other opposing concept is a world
regimented under conmimiism. The contest be-
tween these two concepts is as fundamental as
any in man's histoiy. And it will continue un-
til freedom prevails.
But we must make freedom prevail — and tri-
umph— without a gi-eat war, if possible. For
there won't be much freedom anywhere if most
of the Northern Hemisphere is reduced to a
cinder heap.
Shaping the Strategy of U.S. Foreign Policy
Those stark, elementai-j' facts shape the strat-
egy of our foreign jDolicy. They explain why
we and our allies are determined to deter or de-
feat aggression — aggression in any fonn. They
explain why, at the same time, we search for
agreements with our advei-saries to control and
limit crises and to reduce the danger of thermo-
nuclear war from miscalculation, misunder-
standing, or uncontrollable escalation. They
explain why we seek reliable agreements to cur-
tail and turn down the arms race — balanced
618
DEPARTMENT OF STATE BULLETIN
agreements whose perfomiance is verified by
adequate international inspection. They ex-
plain wliy we must tiy to reach even small
agreements with our adversaries — for an ac-
cumulating sum of small agreements can move
the world a little closer to peace. They explain
why we do what we can to promote the trends
toward national independence and more per-
sonal freedom within the Communist world,
why we help to build the economic and social
and political strength of the free world, why
we try to help settle disputes within the free
world — disputes which divert energies and re-
sources from constructive tasks, threaten the
peace, and give the Communists more oppor-
tunities for troublemaking.
Finally, they explain wliy, in our relations
with Commujiist coimtries, we seek to take full
account of the vital common interests of the
human species — in sun^ival, in struggle against
hostile natural forces, m expanding man's
knowledge, and in improving liis lot on. this tiny
speck in the universe.
Epidemic diseases are not politically
spawned. Wlieat rusts recognize no iron cur-
tains. Hurricanes do not distinguish between
Communist nations and free nations. And
many of the things that man must do to enlarge
his knowledge and to increase his well-being
can be done best through international coopera-
tion.
Thus we seek to engage the Communist na-
tions in common endeavors with us and other
free nations on behalf of man as man.
Scientific infonnation flows across the Iron
Curtain in both directions. Soviet and other
Eastern European scientists have been return-
ing to the international scientific community,
by attending meetings and exchanging ideas
with scientists of the free world. And they
have joined in a number of specific cooperative
enterprises. One of the newest and most im-
portant of these is a study of more economical
means of desalting water.^ This holds the
promise of reclaiming large areas of the earth's
surface for food production and habitation.
'For
144.
background, see Bulletin of Aug. 3, 19(54, p.
Potential Consequences of Scientific Discovery
Scientists throughout the world are uncover-
ing the secrets of nature at an imprecedented
pace. Each new discovery expands the horizons
for new exploration. Just as the era of geo-
graphical discovery that began in the 15th cen-
tury led to new and far-reaching changes in
international i-elations, so does the present era
of scientific discovery.
Some of these discoveries are double edged.
They can yield immense benefits to the human
species, or they can destroy it. Wliich is to be
the result depends on man himself.
Let me try to be specific about a few of the
potential consequences of scientific discoveries
and teclinological advances.
The revolution in communications, paced by
the technology of the electronics industry, is
rapidly eroding the possibilities of maintaining
a closed society.
Through a communications satellite we are
able to see the Olympic games in Tokyo. ^ The
"hot line" — the emergency line of communica-
tion— between Moscow and Washington may be
only the prelude to international consultations
by television, with all the benefits or drawbacks
that might entail.
David Sarnoff says: "Our grandchildren's
world will be one in which it will be possible
to communicate with anyone, anywhere, at any
time, by voice, sight, or written message, sepa-
rately or as a combination of all three." He
says ultrahigh and microwave radio frequencies
and laser beams can provide billions of chan-
nels, so that each person in the world can have
his own, much as he can now have his own
telephone number.
The human species has a common interest in
predicting and affecting weather. Weather
satellites and telemetry and computers are im-
proving man's capacity to give timely warnings
of natural disasters originating in the atmos-
phere. Great strides in exchanging data have
been made through the institutions created by
the World Meteorological Organization and
other arrangements. We should like to see
further steps taken to increase cooperation in
' For background, see ihid., Oct. 26, 19&4, p. 591.
NOVEMBER 2, 1964
619
this area — such as the World "Weather Watch
proposed by President Johnson in his address
at Holy Cross College* and a freer exchange
of information gathered by weather satellites,
such as our highly successful Tiros and Nimbus.
Although much damage and loss of human
life have been averted by timely forecasting,
we are only in the first stages of understanding
how weather works and, hopefully, how we
might somehow influence it. The increase in
agricultural productivity that could come from
a more even distribution of rainfall around the
world is almost beyond computation.
The atmosphere is the fluid element of a vast
heat engine which absorbs energy in the tropics
and releases it in temperate and polar regions.
The interaction of the world's oceans with the
atmosphere is an important element in this
system. A better understanding of this inter-
action is a prerequisite to man's efforts to com-
prehend the behavior and motions of the atmos-
phere, the end results of which are weather and
climate. In the field of oceanography we have
begun a series of such cooperative efforts which
opens up the prospects of benefits in many
fields. There is the International Indian Ocean
Expedition, which, among other things, seeks
to determine the effects of monsoon winds on
ocean circulation and, in turn, the effects on
biological productivity. We need to know
more about the depths of the Indian Ocean and
to examine the geological forces that created it.
The chemical and physical properties of the
waters and their dynamics need to be tabulated
in thousands of observations. By the end of
1965, when this program is completed, more
than 40 ships from 12 countries will have par-
ticipated and 8 other countries will have pro-
vided scientific assistance.
A similar program was carried out in the
tropical Atlantic during 1963 and 1964. In
that, 14 vessels from 7 nations participated, in-
cluding 3 each from the United States and the
Soviet Union. Other bilateral and multilateral
projects in oceanography are under way in var-
ious areas of the world.
Man is rapidly extending his knowledge of
the biological cycles and food and mineral re-
* Ihid., June 29, 1964, p. 990.
sources of the seas. Research is opening up
prospects for large-scale sea farming of plant
life, for scientific techniques of fishing to main-
tain the highest productivity in the biological
cycles of the seas, and for mining minerals from
resources that far exceed the supplies available
from laborious digging in the solid surfaces of
the earth.
The scientists dangle before us the possi-
bilities of vast new sources of power. If a basic
measure of man's progress is his ability to find
means of extending the power of his hands, we
may stand at the threshold of a new era. In
the past, great forward surges have come from
the discovery and harnessing of new fuels. Al-
though estimates of the remaining sources of
fossil fuels have tended to grow, there does seem
to be a finite limit. We are now in the early
stages of harnessing nuclear power. In certain
types of reactors, the plutonium and thorium
tliat are produced can be used to fuel other
reactions. Some scientists predict that more
than 95 percent of our electrical output will
eventually come from nuclear power, as other
uses for our fossil fuels surge to the front.
Concern With Health of World's Population
On the biological side, as we wrest from na-
ture the secrets of the composition and growth
of cells, we may learn to control genetic in-
fluences in such a way as to reduce the trans-
mission of disease and hereditary malforma-
tions. Alongside the growth of our knowledge
about genetics there are corresponding advances
in our understanding of the nature and control
of viruses. If our knowledge in these fields con-
tinues to grow at the pace which it is now set-
ting and if we learn to apply this knowledge in
time and in the right places, the possibilities
of greatly improving the health and longevity
of the human race are dramatic.
International cooperation is essential in the
prevention and control of diseases. Several
weeks ago a 6i/^-year-old boy from Africa with
a serious disease peculiar to the tropics was air-
lifted to New York and then moved to one of
the most modern clinics of the National In-
stitutes of Health. One might look upon this
as a solicitous humanitarian gesture. It was
620
DEPARTMENT OF STATE BULLETIN
that — but it was also much more. The affliction
was rare — so rare that cases were almost im-
possible to find within the United States — and
yet the responsibility of our Public Health
Service was great. The large numbers of
Americans now working in Africa, in either offi-
cial or private capacities, increase the dangers
of bringing unfamiliar diseases back to the
United States. It became imperative for our
Public Health Service to understand the nature
of the affliction that he had and how it might be
treated.
Medical friends tell me that there are rel-
atively few doctors in the United States who
have ever seen or treated a case of cholera or
plague or, perhaps more strikingly, of smallpox.
Yet there are many areas of the world which
are still subject to serious outbreaks of these
and other diseases which have long since been
virtually eliminated in our country. Modern
means of transportation are such that the travel
time from even the most remote spots on the
globe to the United States usually is much less
than the incubation period of the virus.
Tlius it seems obvious that if our medical
authorities are to do their job at home in the
j)resent-daj^ world, they need to be deeply con-
cerned with the health of the rest of the world's
population. In this instance, as in many others,
the deep humanitarianism of the American peo-
ple is happily joined by considerations of sound
common sense and elementary self-preservation.
And then there are the challenges of outer
space. Homo sapiens is reaching out from his
earthly abode to the moon and the planets. He
is devising marvelous instruments for probing
the secrets of the universe. The challenges of
the cosmos should unite all men in efforts to
push forward the frontiers of knowledge.
Need for Wisdom in Human Affairs
The ingenuity and persistence of men in un-
covering nature's secrets must be matched by
wisdom in ordering human affairs so that the
human species survives and can benefit from
these accessions of knowledge. It is too late to
be primitive in international relations, too dan-
gerous to let emotions or slapdash decisions
jjrevail over steady, informed judgment.
We, as a Government and people, must work
everlastingly at the task of making this world
safe for the human species
— by making aggression costly and futile,
— by seeking agi-eements, even small ones, to
reduce the danger of a thermonuclear exchange
and move toward the control and reduction of
armaments,
■ — by encouraging trends within the Commu-
nist world toward national independence and
more personal freedom,
— by expanding our partnerships with other
economically advanced free nations,
■ — by helping the developing nations to ad-
vance economically, socially, and politically,
— by strengthening international institu-
tions— above all the United Nations,
— by moving toward a world rule of law,
— by drawing other nations — friends and ad-
versaries alike — into cooperative undertakings
on behalf of man as man.
Great dangers still surround us, and difficult
challenges lie ahead. But we are making prog-
ress. The free world has gained in strength and
vitality, both absolutely and in relation to the
Communist world. Brick by brick, we are
building the structure of a decent world order —
a world in which all mankind can live in peace,
freedom, and brotherhood.
NOVEMBER 2, 1964
621
An Appeal to Discontent
iy Under Secretary Ball^
I am here tonight to say a few words on behalf
of discontent. American education puts a high
premium on encouraging the individual to ac-
cept his environment and become a part of it.
But the hard fact is that the world as now
organized is not good enough.
Certainly the world as now organized is not
going to stay as it is.
Most of you here tonight are, in a very real
sense, members of the cold-war generation.
You have lived the whole of your sentient lives
in a world split between two great contending
forces.
But because this is the world you have always
known, do not assume tliat it is the world that
will always be. Events have not stood still
even in your short lifetime. If you ever doubt
the speed with which the world is changing,
I suggest that you ponder the fact that more
than half the member states of the United
Nations are younger than you.
Let me illustrate my point with a reference
to history.
In 1937, at the request of President Roosevelt,
the National Resources Committee prepared a
forecast of probable inventions and technologi-
cal developments over the next quarter century.
This Committee — composed of leading scientists
and engineers with free access to the resources
of our universities and Government depart-
ments— produced a long and careful report. I
read it at the time with intense interest. It was
filled with ideas that then seemed daring and
unfamiliar. It envisaged developments in a
' Address made at the College of Wooster, Wooster,
Ohio, on Oct. 15 (press release 448).
variety of fields ranging from aviation to
X-rays.
Quite by accident, I discovered a copy of that
report on my bookshelves last week. A reread-
ing did not, of course, inspire the same fresh
wonder as the first encounter. But I foimd it
still higlily instructive — not, this time, for the
predictions it contained but for the predictions
it omitted.
In spite of the fact that at the time it was
regarded as a visionary document, it made no
mention whatever of many of the developments
that have most profoundly affected the life
of all mankind — for example, nuclear energy,
antibiotics, radar, the electronic computer, and
rocketry.
To most of you the failure to foresee these
major brealrthroughs may simply reinforce
what is, I am sure, a deep undergi'aduate con-
viction that all generations that preceded you —
which include all men now over the age of
50 — were either naive or incompetent. (I held
such a view when I was an imdergraduate,
and I'm not sure I wasn't right.) But if you
think hard about this question, I venture to
suggest that you will not be so smug. After
all, taking account of the constantly accelerat-
ing pace of scientific and technological advance,
is it so strange that each new decade should
confound the scientific soothsayers of the pre-
ceding one ?
You who have lived through the vaulting
scientific achievements of the past period nuist
know the answer to that question. You have
learned to expect the unexpected. You Imow
full well that the world of today is not like
the world of yesterday, and you must laiow
622
DEPARTMENT OF STATE BULLETIN
tliat it resembles even less what will be the
world of tomorrow.
You sliould also have learned a lesson in
luunility — that, however great our American
accomplishments in technology, science pays
little attention to national borders. If there
had been any question about that, the Soviet
spac« adventure last Monday should have an-
swered that.
Political and Economic Changes
But I shall not labor the obvious. I am .sure
that all of you here regard the fast pace of tech-
nology as an unavoidable fact of life. I sus-
pect, however, that you have a far less clear
perception of the equally great speed with
which the political and economic shape of the
world is being transformed.
For, adventurous as we Americans may be
in applauding the scope and range of scientific
advance, we often tend to remain earthbound
and conservative in our attitudes toward world
politics. Breakthrouglis in science or engineer-
ing are invariably exhilarating. We equate
them with progress. But we cannot be certain
as to the meaning of great jx)litical and struc-
tural changes in world affairs.
We don't much like such changes. Some of
us try to ignore them because they are new—
to talk and act as if they had never occurred.
We find it hard to face the unsettling reality
that our world is changing as rapidly in the
relations between peoples and nations — which
is the domain of foreign policy — as in the rela-
tions between man and nature— which is the
domain of science.
These phenomena are not, of course, unre-
lated. It seems clear enough in retrospect that
the dominant currents of 19th-centuiy thought
and action resulted in large part from the con-
fluence and interplay of two major events : the
French Revolution, which inflamed a continent
with the egalitarian idea, and the Industrial
Revolution, which shook the economic and
social structure of Europe.
Today we are again experiencing the conflu-
ence and interplay of two revolutions— the
teclmological revolution that has become so
much a part of our life and the revolutionary
consequences of two world wars which have
wrought a vast transformation in the balance
and distribution of world power.
The World in 1937
These latter two revolutions, which are still
underway, have set in motion strong tides to
beat against political and economic structures
in all parts of the world. To understand the
measure and scope of the changes they have
produced, it may be useful to return again to
the vantage point of 1937. Let us suppose that
in that year President Roosevelt, in addition to
commissioning a forecast of our scientific fu-
ture, had also called upon our most distin-
guished diplomats and political scientists to
forecast the military, economic, and political
shape of the world in 1964. What kind of a
report would they have come up with ?
To make this kind of a retrospective predic-
tion requires that we reexamine the environ-
ment of the time. How did we look at the
world a quarter of a centuiy ago ?
In 1937 the United States was suffering a
resurgence of the isolationist spirit that had
dominated our foreign policy since the found-
ing of our country. In spite of our reluctant
intervention in the First World War, many
Americans were still hoping to stand aloof from
the major affairs of the world. They preferred
to leave those affairs to a small band of Euro-
pean nations, which, through the leverage of
great colonial systems, exerted mastery over a
major portion of the globe.
Only a j'ear before, in 1936, the leading Euro-
pean powers had destroyed the League of Na-
tions as an effective instrument of peace by
refusing to apply economic sanctions against
Mussolini, who was attacking Ethiopia. We
had no voice at all in that decision. We had
rejected the League of Nations.
Only a year before, Hitler had occupied the
Rhineland with his troops and guns in viola-
tion of both the Versailles and Locarno treaties.
Again we played no visible role. This was, we
felt, "a European problem."
Only a year before, the Spanish Civil War
had provided a curtain raiser for the grim
cataclysm that was to befall the world. Both
the Fascist powers and the Soviet Union had
engaged themselves in that war. But again our
NOVEMBER 2, 19G4
623
only response was a reaffirmation of the doctrine
of nonintervention, reflecting the controlling
dogma of the time that foreign wars were not
our concern. We amended our neutrality laws
to make it clear that we treated aggressor and
victim alike. Neither side would get any help
from us.
The World Today
That was the atmosphere in 1937. No one
can say today what the statesmen of that time
would have predicted about the next 25 years.
But one thing is sui-e : They would have missed
the target — and missed it widely. And we can
be certain that anyone who might then have
accurately predicted the world as it is today
would have been labeled a dreamer, if not a
lunatic.
Yet within 5 years America had put away its
isolationism like last year's clothes. We were
leading the greatest coalition in the greatest war
in history. And in less than a decade the world
had changed almost beyond recognition. The
United States moved out of the wings — to star
billing and the center of the stage. The Iron
Curtain came down to split the world into two
parts, each dominated by a great power center.
The United States and the Soviet Union
emerged, in a real sense, as the only two global
powers. Each was organized on a continent-
wide basis commensurate with the requirements
of scale and resources demanded by the modern
technological world.
War had released long-pent-up forces —
forces that brought about the dismantling of
the great colonial systems through which a
handful of European powers had run the world.
The breaking up of these systems released pent-
up energies throughout large areas of the globe.
Out of the wreckage emerged more than 50 new
nations, each determined to maintain its newly
won independence and to secure a self-respect-
ing standard of life for its people.
Western Europe, which had for years sought
the maintenance of peace through a precarious
balance of power, began to move toward a new
unity. It made great strides in organizing its
economic affairs. Today Western Europe is on
the eve of becoming a single mai'ket in which
the factors of production can all move freely.
Tomorrow it may become a great political en-
tity comparable in resources to the United
States— and capable of joining with us in a
partnership for the advancement of freedom
all over the world.
Learning To Live With Danger
For you and me as Americans, the most strik-
ing aspect of all of these developments has been
the emergence of the United States as the un-
questioned leader of the free world, the trans-
formation of our country from a spectator to
the principal actor in the great world drama.
This development is not the occasion for com-
placency or self-congratulation. The redistri-
bution of power and responsibility that has
created American preeminence has been ac-
companied by a corresponding redistribution of
danger. Throughout most of our history, we
Americans have felt safe in our own homes.
Since 1814, when the British burned the Wliite
House, no foreign power has dared to attack
the continental United States.
Yet today we face a disturbing paradox. We
are the masters of more military and industrial
power than any nation in history. Yet now, for
the first time, we have had to learn to live, as
President Kennedy said, "on the bull's-eye of
Soviet missiles." = This is not a special fate
reserved for Americans. No man in the entire
Northern Hemisphere is safe from the destruc-
tive power of weapons that are already aimed at
him and ready to be fired.
To live intimately with danger is an old story
for most of the peoples of the world. For
Americans it is a new experience, and not all of
us have known what to make of it.
Some have sought to explain this paradox by
searching for a scapegoat. They have con-
tended that a strong nation such as America
could have been exposed to destructive forces
only through betrayal. This in turn has led
to suspicion and calumny not befitting our na-
tional character.
Others have sought to explain the paradox
by putting the blame on governmental wealcness
and ineptitude.
But the fact is that no nation can lead the
'Bulletin of Nov. 12, 19G2, p. 715.
624
DEPARTMENT OF STATE BULLETIN
modern world without accepting the hazards of
leadership. America cannot be the most re-
sponsible nation in the world and still avoid
the burdens of responsibility— and one of those
burdens is learning to live responsibly -with
danger.
Foundation of U.S. Policies
When we look objectively at the world today,
we must, I think, accept certain propositions as
the foundation for our policies:
First, America is unquestionably the most
powerful nation in the world. This imposes on
us a unique responsibility for helping to shape
the destiny of free men.
Second, we must exercise this responsibility
with a constant awareness that irresponsible ac-
tions could lead to world destruction. We have
replaced the theological tlireat of hellfire by the
ability to create it ourselves.
Third, we live in a convulsive period of his-
tory in which there is only one certitude — that
the world tomorrow will not be like the world
today.
Taking account then of these three proposi-
tions— the imperative of responsibility, the
reality of danger, the certainty of change — what
kind of a world can we look forward to?
I shall not be so brave or so foolhardy as
those intrepid scientists who in 1937 tried to
forecast the world of 25 years in the future. I
can, however, document my contention that we
are in a time of pervasive change. I can go
farther and identify major forces of change at
work in all three areas of the world — in the
Comnnmist bloc, in the less developed coimtries,
and among the nations that form the Western
alliance.
Forces in Motion Within tiie Communist Bloc
The most dramatic development within the
Communist bloc has been the emergence of an
aggressively competitive power center — Pei-
ping — to challenge the claims of Moscow as the
leader of international commimism. The schism
between these two is widening. Eed China and
the Soviet Union are engaged m a relentless
struggle to establish dominance of the Commu-
nist parties around the world, and, as this strug-
gle proceeds, the invective grows louder and
more shrill.
Where this split may lead — what its ultimate
implications may be — are questions that cannot
be categorically answered today.
Clearly Moscow and Peiping differ on the
means to achieve the triumph of international
communism. But there is no reason to suppose
that they are not fully united on that end ob-
jective. The free world would be reckless in
the extreme if it did not recognize this fact.
Apart from the Moscow-Peiping split other
forces are in motion within the bloc.
One is the slow erosion of the closed society.
The Soviet Union's obsession with secrecy stems
from two sources. It is a heritage from czarist
Russia, and it expresses the lack of confidence of
the Soviet leaders in the ability of communism
to hold its own in the free marketplace of ideas.
Yet, over the course of the next few years,
there are reasons to believe that the Soviet Un-
ion will find secrecy a wasting asset. The ex-
tension of tecluiology is making it progressively
more difficult to conceal the furtive activities of
a state bent on world domination. It is making
it harder to hide from the citizens of that state
the achievements and attractions of freedom.
As the societies of the bloc countries become
less tightly sealed, they will be progressively
more accessible to change — change that may
blunt their aggressive purposes. These forces
have been at work for some time in the Eastern
European nations that are now held within the
bloc by Soviet militaiy might. Over a period
of time they should be felt more strongly in the
Soviet Union.
Meanwhile, the United States, in the interest
of the free world, is pursuing policies that take
account of these evolutionary changes — policies
adjusted to the differences in attitudes and as-
pirations of individual Communist states, poli-
cies that encourage rather than defer the grad-
ual lifting of the Iron Curtain.
The Underdeveloped Nations
In a second major area of the world — that of
the underdeveloped nations — changes are also
occurring. None of these countries is having
an easy time. Nor is the near future likely to
be much easier. Most of the new nations will.
NOVEMBER 2, 1964
747-5T8 — 64 3
625
in fact, face far greater problems 5 years from
now than they do today.
For, as they lose the initial momentum of in-
dependence, they will come face to face with
foi-midablo problems. How can they develop
stable and self-sufficient societies? How can
they achieve adequate standards of living for
their people?
The attainment of these goals will require
more than the infusion of outside capital or the
provision of technical help. In many cases it
will mean a substantial realinement among the
states themselves. In the 19th century bound-
aries often tended to be fixed at points where
the advance forces of one colonial power col-
lided with another. Today such boundaries
bear little relationship to either geography or
etlmic reality. And economies built as ap-
pendages to old colonial systems are often diffi-
cult to adjust to the conditions of independence.
We may, therefore, expect over the next few
years substantial regrouping among the newly
independent nations, the formation of economic
blocs in order to make better use of available
resources, and the creation of arrangements of
mvitual help.
Nor can we delay much longer in coming to
grips with the hard issue as to how the north-
south relationship — that between the industrial
free world and the less developed countries — is
to be worked out. Should it be through closed
systems in which industrial nations or groups
of nations have special commercial, economic,
and even political relationships with less de-
veloped nations or groups of such nations? Or
should it be under a regime — which seems to us
far better — in which the industrialized nations
as a whole accept a collective responsibility for
the advancement and well-being of the less
developed countries?
Hope for "Concert of the Atlantic Peoples"
Finally, we can expect major improvements
in cooperation among that handful of countries
on the two sides of the North Atlantic that to-
gether control 90 percent of the industrial
power of the free world.
Throughout the 19th century — from the Con-
gress of Vienna to the First World War — the
peace was kept by a small group of European
nations that controlled most of the effective mili-
tary and economic resources of the world.
These powers were bound together by dynastic
interlockings, by an adherence to Christianity,
and by the possession of other common interests.
They tried to act as a police force; they made
sporadic efforts also to deal with economic
problems. But the Concert of Europe, which
served the 19th centui-y fairly well, proved
clearly inadequate when subjected to the greater
pressures and requirements of tlae industrial
20th century.
After the First World War, Woodrow Wilson
sought by a League of Nations to fill the vac-
uum created by the collapse of the Concert of
Europe. But American isolationism contrib-
uted heavily to the failure of the League.
We Americans did not make the same mistake
a second time. After the Second World War
we took the lead in establishing the United
Nations.
Organized on a world basis, the United Na-
tions was intended to cope not merely with
arguments between small nations but with con-
troversies between the great powers as well.
But, as we all know, the assumption that the
great powers could live together in relative har-
mony and cooperate in policing the postwar
world lasted hardly through the first General
Assembly. For we soon found out that the
Soviet Union had joined the United Nations in
name only. And over the next 4 years, the Iron
Curtain slammed down to fonn a cage around
one-third of the world's population — enclosing
a great landmass that stretched from the Bran-
denburg Gate to the Yellow Sea.
The United Nations was thus frustrated in
serving as a forum for reconciling ditTerences
among the great powers. This has not, of
course, destroyed its usefulness — indeed, its in-
dispensability — for it has found its postwar
destiny in quite different and enormously effec-
tive endeavors.
But its usefulness has been limited by Com-
munist intransigence. And, as Europe has re-
gained its health and strength, the need has
grown for organizing the industrial powers of
tlie free world — on an Atlantic basis — to under-
take in a modern and liberal spirit many of the
peacekeeiDing tasks that the Concert of Europe
626
DEPARTMENT OF STATE BULLETIN
had performed in an earlier day but in a modern
spirit.
Tlie lieart of the structure of the Atlantic
world today is the Western alliance. NATO
was conceived as an arrangement for the mutual
defense of its members against a Communist
drive westward. But NATO can no longer be
regarded in such a limited context. More and
more it must evolve as a mechanism by which
the nations of the Western alliance can mobilize
their collective strength for the performance of
common tasks all over the world.
Success along this line will depend in con-
siderable part, of course, upon the speed with
which the European peoples move toward a
more modern organization of their own eco-
nomic and political strength.
Along with the transformation of colonial
societies into independent states, perhaps the
greatest single achievement of the postwar
world has been the massive steps that Europe
has taken toward unity — including the develop-
ment of a conunon market. Within the last
year and a half, the movement toward economic
and political integration has been abruptly
halted by a counterrevolution of nationalism.
But recently there have again been signs that
the momentiun toward a greater unity might
be regained.
This, of course, would be greatly in the
American interest, for the effectiveness of an
Atlantic partnership will depend in large part
on the ability of the European peoples to work
on an equal basis with us in carrying out our
world responsibilities which we bear in com-
mon. To do this Europe must unite. Only then
can we have a modem "concert of the Atlantic
peoples."
Imperatives of the Changing World
These are some of the forces of change at
work in the world — in the Communist bloc, in
the developing countries, and in the Atlantic
nations. They are reshaping the world whether
we like it or not. We cannot stop change.
But we can work to direct its course.
What is important is that we set our sights
high — that we not be satisfied with an illusory
status quo or be too nostalgic for a yesterday
that never really was. Old habits of thought
are hard to break, and in the affairs of govern-
ments, policies tend to acquire a life of their
own. They become vested interests. They
mtcrf ere. They linger on. They impress their
mark on events even when the conditions on
which they were founded have radically altered.
Such old liabits are pensioners we can ill
afford. For even if we could maintain the
world unchanged — which is manifestly not the
case — we would still be failing our responsibil-
ity. Deep in the American credo is a profound
belief in the idea of progress, a conviction that
it is the duty of man to make tomorrow better
than today. That is why I have spoken to you
tonight in favor of discontent.
Oscar Wilde once wrote: ''Discontent is the
first step in the progress of a man or nation."
And if I have any anxiety about America and
its future, it is that we are often too pleased
with our lot, too ready to accept the easy com-
forts of an easy life and to ignore the impera-
tives of the changing world around us. Hard
problems remain from one end of the globe to
the other, and they are getting harder every
day. We cannot shrink from our responsibility
to meet them.
Many of those problems are the byproducts
of progress. We have created them by our own
sublime curiosity. We have let loose the power
of the exploding sun ; now we must learn how
to manage it. We must keep gnawing away at
the hard business of disai-mament while at the
same time seeking to achieve a political climate
in which this ancient dream can become a
reality. Meanwhile, as a matter of simple pru-
dence, we must secure and strengthen the shield
that protects ourselves and the rest of the free
world.
Almost half of the nations on the earth are
newly born. Some were born prematurely ; all
were born weak. We must continue to help
them meet their needs. As President Kennedy
said, "If a free society cannot help the many
who are poor, it cannot save the few who are
rich." ^
We must continue with greater devotion than
ever to tend to these and other tasks that con-
stitute the world's business. At tlie same time,
' For text of President Kennedy's inaugural address,
see ihid., Feb. 6, 1961, p. 175.
627
we must encourage other industrial states of the
free world to organize themselves so that they
can more effectively join with us m a great com-
mon undertaking.
Only if we do all these tilings and more can
we begin to be satisfied witli the shape of the
world. Only then will I ask you to forgo your
discontent.
President Macapagal of Philippines
Visits United States
President Diosdado Macapagal of the Repub-
lic of the Philippines, accompanied hy Mrs.
Macapagal, 7nade a state visit to tlie United
States from October 3 to 15. He met with Pres-
ident Johnson and otJier U.S. officials during
his stay at Washington October 5 and 6. Fol-
lowing are an exchange of greetings between
President Johnson and President Macapagal
on October 5, an exchange of toasts at a dinner
at the White House that evening, and the text
of a joint communique released on October 6.
stand together here m independence and in
freedom.
We have peace and we prize it, but we prize
freedom and honor more. If any break the
peace and attack freedom, we are prepared and
ready to give firm and appropriate reply.
We shall remember always the price that free
men paid in tlie Pacific for doing too little too
lat«. We are determined that those words shall
never be heard from free men again.
Ten years ago in Manila the Southeast Asia
Treaty Organization was formed. On that
cornerstone the cause of freedom stands in
Southeast Asia, and tlie United States stands
steadfastly in its support.
Mr. President, the success of your dynamic
democracy shows to all that freedom is the wave
of the future for Asia and for all the nations
that rim the vast Pacific.
The honor is ours today to have you here
with us. In this house and wherever you go in
this land, you will find the affection and the
warmth of a nation that regards with great
wannth and deep affection your nation and all
of your people.
Thank you.
EXCHANGE OF GREETINGS
White House press release dated October 5 ; as-delivered text
President Johnson
]Mr. President, for the American people and
for myself, may I say welcome to this land and
to this city. Our comitry is honored for you
because you come representing a people that
Americans honor greatly.
The United States enjoys friendsliip with
many nations, but with your nation, Mr. Pres-
ident, there is and there always will be a special
friendsliip, a special quality of understanding
between us.
Our nations grew up together. We fought
together for common beliefs. We work to-
gether today for common goals. Our eyes are
on the future, but our hearts will never forget
the past.
A part of the soul of America remains for-
ever on Bataan and Corregldor. Our sons and
your sons died together there so that we might
President Macapagal
Mr. President, from the bottom of my heart
I thank you for the warmth and graciousness
of your welcome and for the generous words
that you have uttered about my country and
the relations between us. I am certain that the
sentiments that you have expressed are fully
ajipreciated and reciprocated by our people.
I come to the United States of America as
President of the Philippines in response to an
mvitation extended to me by the President of
the United States, His Excellency Lyndon
Joluison. I am profoundly aware of the honor
of the invitation, and I am here to renew the
friendship between my country and the United
States. That friendship has a long history.
As the representative of the Filipino people,
I am proud to reaffirm the honorable auspices
of that amity. It is based on a common com-
mitment to ideals that have been sustained
and mutnally affirmed by our two peoples in
the ordeal of crucial struggles to maintain
peace and to uphold freedom.
628
DEPARTMENT OF STATE BULLETIN
This conunon commitment, Mr. President,
we liave reaiSrmed in war. I consider it my
distinct privilege in behalf of my people now
to reassure its continuity in peace.
!Mr. President, as I present the greetings
of the Filipino people to you who symbolize
the authority of the American people, I also
wish in my people's name to pay homage of
respect to the obelisk we see from this im-
pressive "White House lawn because, to us in
the Philippines, George Washington epitomizes
the idea of freedom that is the rampart of
this great democratic country and the guidmg
inspiration of our history as a people.
Thank you.
EXCHANGE OF TOASTS
White House press release dated October 5
President Johnson
Mr. President, Mrs. Macajjagal, distinguished
guests: This house of the American people is
honored tonight by the presence of the Presi-
dent and First Lady of a land that Americans
love — the Republic of the Philippines.
Ten months ago, ]\Ir. President, you came on
a mission of sorrow to the funeral of our be-
loved President Jolin F. Kennedy. All Ameri-
cans are grateful to you for that moving gesture.
We are proud that you have returned tonight
mider happier circumstances, on a mission of
friendship.
When we first met in Manila, our guest and
I were both Vice Presidents. He has since suc-
ceeded in being elected President, and, needless
to say, I find that example commendable
tonight.
As we all know, our guest's election to his
highest office has opened a new era in the Philip-
pines. To liis people's courage and devotion to
freedom, tlie President is adding a new dimen-
sion of responsible statesmanship. He has been
imremitting in his efforts to bring about Asian
solutions to problems that threaten conflict
an\ong Asian nations.
In your land and in mine, Mr. President, new
generations are at tlie helm. In all free nations
new generations are on the threshold of leader-
ship. Tliese new generations must test the ties
among free allies and must judge for themselves
their value and their strength, but I have no
doubt what that decision will be.
Those ideals which inspired so many people
to reacli for independence are not Western
values or Asian values. They are abiding hu-
man values. The worth of those values is
eternal. Our mutual devotion to them will be
everlasting.
If freedom is to stand strong, free men must
be devoted to strength, must be devoted to so-
cial justice, to the digiiity of the individual,
and to the love of peace.
On these principles the Philippines has risen
from the ruins of war to build an economy
offering the people one of the highest stand-
ards of living in all Asia. That economy is
built on the foundation of free enterprise and
on the fomidation of private initiative.
The example of the Philij^pines shines to all
nations seeking economic and social progress
with freedom for the individual.
Mr. President, the Philippines has always
been in the forefront of the fight against ex-
ternal challenge to the freedom that we so
cherish. You have met and you have defeated
Communist subversion in the Philippines
itself. You were a founder member of the
SEATO alliance. You have extended a help-
ing hand to Laos and Viet-Nam as they resist
the common peril.
Tonight the independence of free men is no-
where more threatened than in Southeast Asia.
So I was greatly heartened when you told me
personally this afternoon of your purpose to do
all that you can to help meet this challenge. In
turn I pledge again the fuU and continuing sup-
port of the United States to the Philippine
Republic and to other like-minded and true
friends.
None can know just how long the fight for
freedom in Southeast Asia will take, but we of
the United States are resolved not to falter or to
grow weary in the struggle.
Our constant and continuing hope is that
around the realm of the great ocean named for
peace there will grow a great community of
peace. Our effort is directed toward building
such a community where free men can trade to-
gether, where free men can work together and
KOVEMBER 2, 1964
629
prosper together in freedom, in peace, without
war. In the creation of such a community the
Philippines serve as a valuable bridge of un-
derstanding between the East and the West.
We are so happy to have the distinguished
Ambassador from your comatry in our house
tonight [Oscar Ledesma]. We honor him and
have deep affection for him. We are also de-
lighted to have our own Ambassador, Ambas-
sador [William McC] Blair, return here with
you. We think higldy of him, and we hope that
he enjoys it in your comitry.
So, Mr. President, we receive you in this
comitry as the representative of an old and very
valued ally. But we welcome you even more
as the leader of the new Philippines and as a
new leader for freedom's cause everywhere.
So I ask all of you here tonight to join me in
a toast to His Excellency the President of the
Republic of the Philippines, to the continued
friendship between the people of his republic
and ours, and to the success throughout the
world of freedom's cause.
President Macapagal
Mr. President, Mrs. Johnson : Mr. President,
you and I are in a very peculiar situation at
this moment. We are separated by a room and
walls but still we can hear each other, and we
are friends.
Our two comitries are just like we are at this
moment. They are in different places, sepa-
rated by the vast Pacific Ocean, but they can
hear each other's voices, and they're friends.
There is really some similarity between the
career of President Johnson and myself. Both
of us were, first. Vice President, and then we
became President. Now he is ninning for
President. Next year I am running also for
President, so I am very anxious about this elec-
tion here because I confess I am very super-
stitious about similarities.
It is a great honor for my people and myself
that you, Mr. President, have invited me to
make this state visit to the United States. We
regard this visit as a kind of family reunion.
We share to the full the feeling of indestructi-
ble friendship and the sense of common pur-
pose between our two peoples which tliis re-
union sei-vcs to confirm.
We are deeply moved by the kind words which
you, Mr. President, have uttered. Permit me
to say that your generous references to me and
my people are warmly reciprocated. They have
struck in our hearts the deepest chords of re-
spect, admiration, and affection.
The ties that bmd the American people and
the Filipino people are the ties in ideas and
ideals — democracy, freedom, love for peace, and
the rule of law — long shared in common. The
strength of these bonds has in the past been
subjected to the terrible ordeal of battle, and
their durability to the strenuous tasks of peace.
Let my presence here attest to the resolve of
the Filipino people that these bonds of mutual
dedication shall withstand any trials which tlie
future may bring.
It should be of interest to you and to the
whole American people what the attitude of the
Filipino people is toward the United States and
the American people and how the Philippmes
has been faring 18 years after the severance of
our political ties.
The Philippine attitude toward the United
States during the last decade is premised on tlie
basic heritage that you bequeathed to us.
From Spain, which ruled over the Philip-
pines for 377 years, we inherited, firstly, the
Christian religion, so that 95 percent of our
people are Christians, and secondly, a true ap-
preciation of Western culture.
From the United States, which ruled over us
for 48 years, we in turn inherited the processes .
of democracy and a system of mass public edu-
cation which is unparalleled in colonial history.
These are legacies which have become the |
cornerstone of our vigor and future as a nation,
considering that the success of democracy de-
pends upon the level of enlighteimient and edu-
cation of the people.
To caiTy out its unprecedented policy of mass
education, America sent himdreds of American
schoolteachers to the remotest hinterlands and
to the liills to educjite our children, with the re-
sult that the Philippines today enjoys the sec-
ond highest level of literacy in Asia and the de-
sire for education has become a passion among
our people.
I myself am a product of the American piiblic
school system hi tlie Philippuies. Coming from
630
DEPARTMENT OF STATE BULLETIN"
one of the humblest families, my only oppor-
timity to acquire an education was the Ameri-
can-establislied public schools.
I have had the privilege and distinction of
having been tutored by many American teach-
ers during my school days. The fact that one
who comes from among the poorest families
could go through the public school system
established in the Philippines to become Presi-
dent of the Philippine Re2)ublic by virtue of
a free and democratic election is concrete proof
that democracy based on a system of mass
education implanted by the United States in
the Philippines possesses the efficacy to im-
prove the lot of the common man in freedom.
Thus, to us Filipinos, democracy and not com-
munism is the system that can elevate the
masses of Asia from poverty to a better life.
Because of this basic American heritage of
the processes of democracy and mass public
education, the attachment and affection of the
Filipino people today for the American people
are as strong as e^•er, and, I dare say, these
will continue to be as strong in the future.
Our affinity and common ideals of democ-
racy, freedom, love of peace, and the rule of
law should render it relatively easier to thresh
out problems pending between our two coun-
tries in a just and honorable manner and on
the basis of sovereign equality and mutual
respect.
Indeed, we appreciate the blessings of de-
mocracy so deeply that we are prepared to share
in the responsibility of upholding, defending,
and preserving freedom in our part of the
world. This is the basis of the active partici-
pation of the Philippines in Afro- Asian affairs,
particularly our endeavor to bring about a
peaceful settlement of the Malaysian-Indone-
sian dispute. This is the basis of the Philip-
pine support for American policy in South-
east Asia, particularly in Viet-Nam.
The retaliatory action ordered by you, Mr.
President, in the Tonkin incident^ heartened
the free nations of Asia because the struggle
of the people of South Viet-Nam is essentially
one that involves the right to govern them-
selves.
' For background, see Bulletin of Aug. 24, 1964,
p. 258.
The fall of Viet-Nam to communism would
endanger the security of its Southeast Asian
neighbors, and your endeavor for freedom in
that part of the world merits the support of the
other free nations of Asia. We believe that
these nations should be disposed under proper
legal framework and within their capabilities
to participate in the struggle to sustain the
democratic cause in Viet-Nam.
As to how the Philippines has been faring
since its independence, I must say in all humil-
ity that in our administration we have arrested
and greatly reduced the rampant graft and cor-
ruption that have plagued our Government since
the end of the war.
We have successfully restored free enterprise
after 12 years of economic controls. We have
finally succeeded in initiating a land reform
program which abolishes the centuries-old ten-
ancy system which enslaved our farmers in pov-
erty and prevented our agro-industrial progress.
To fight poverty we have launched a long-
range 5-year socioeconomic program calculated
to offer greater opportunities to our people for
an improvement in their lives.
We have done all these, and we are ready to
do more, to prove the vitality of democracy as
a way of life. We believe that should democracy
fail in the Philippines — the only Asian coun-
try which was formerly a colony of the United
States — American leadership in Asia and else-
where in the world for the cause of democracy
and freedom will be less convincing and
be weakened. On the other hand, the success
of our efforts to improve the livelihood of our
masses under freedom will enhance the cause
of freedom and help lighten the enormous load
of the United States in leading the free world.
In your hands, Mr. President, as head of the
American nation and leader of the free world,
rests a heavy responsibility. That responsibil-
ity is to insure the survival of man in a world
of freedom. In your hands, too, lies the pow-
er, moral as well as material, to discharge this
responsibility with patience and wisdom where
required, with strength and resolution when
necessary. We who love freedom stand beside
you. We who long for security pray for you.
May the Almighty steady your hand and steer
your heart as you guide America and lead the
legions of free men everywhere.
NOVEMBER 2, 1964
631
In this spirit, may I ask all to join with me
in a toast to the health and success of the Presi-
dent of the United States, His Excellency Lyn-
don B. Johnson, and to the enduring partner-
ship for freedom of our two peoples.
JOINT COMMUNIQUE
White House press release dated October 6
The President of the United States and the
President of the Philippines today concluded
the fruitful discussions they have held over the
past days. These talks dealt with Philippine-
American relations and matters of international
significance to both countries. They were the
latest in the long history of exchanges between
Presidents of the two countries and reflected
the spirit of special friendship and cooperation
which has existed between the Philippines and
the United States over the years. The two
Presidents expressed their confidence that the
American and Philippine peoples would con-
tinue to benefit from this close association in the
future.
The two Presidents exchanged views on the
situation in Southeast xVsia and pledged tliem-
selves to maintain the unity of commitment and
purpose between their countries in defense of
the right of the free nations of Southeast Asia
to determine their own future.
President Jolinson noted with deep apprecia-
tion the response by the Philippines to the re-
quests of the Government of Viet-Nam for aid
in its defense against conmiunist subversion and
aggression. The two Presidents agreed tliat it
is of the utmost importance to free men through-
out the world that communist force not be per-
mitted to dictate their future. Noting the
struggle of the people of South A-^iet-Nam
against commimist aggression and its implica-
tion for all free people, the two Presidents re-
affirmed their intention to stand by the people
of South Viet-Nam and reiterated their com-
mitment to the defense of Southeast Asia under
the SEATO Treaty. President Macapagal
noted that pi'ompt and decisive action by the
United States in the Gulf of Tonkin had once
again confirmed American readiness and deter-
mination to resist aggression in Southeast Asia
to help assure its progress under freedom.
President Johnson expressed his appreciation
to President Macapagal for the latter "s efforts to
bring about a peaceful settlement of the dispute
between Indonesia and Malaysia. Both Presi-
dents agreed that it is vitally important that
this dispute, wliich now threatens the peace and
stability of the Southwest Pacific area, be
resolved.
The two Presidents recognized that the ag-
gressive intentions and activities of Communist
China continue to present an irtuninent threat
in the Far East and in Southeast Asia. They
reviewed, in this connection, the importance of
the Mutual Defense Treaty between the Philip-
pines and the United States in maintaining the
security of both coimtries, and reaffirmed their
commitment to meet any threat that might arise
against their security. President Jolmson made
it clear that, in accordance with these existing
alliances and the deplojnnent and dispositions
thereunder, any armed attack against the
Philippines would be regarded as an attack
against United States forces stationed there and
against the United States and would instantly
be repelled.
The United States and the Philippines agreed
to study their mutual requirements for security,
to review existing programs, and to consider
changes needed to achieve increased capability
and flexibility in the Philippine response to ag-
gression and threats of aggression.
The two Presidents agreed that the relation-
ship between their respective countries was a
dynamic and flexible association with a history
of past achievement and a heavy stake in a com-
mon future. In the spirit of this alliance, the
two Presidents agreed that any matter of mter-
est to either party related thereto should be the
subject of friendly and frank discussion, and
each President invited the views of the other in
this regard.
The two Presidents likewise took cognizance
of matters pertaining to Pliilippine veterans of
World War II and agreed on the establishment
of a joint commission to study this subject
further.
President Macapagal reviewed the economic
progress made by the Philippines in recent
years. President Johnson commended the land
reform program, initiated bj' President Maca-
pagal this year, as holding out renewed hope
632
DEPARTMENT OF STATE BULLEnN
to the Philippme people for the solution of
the land tenure problems which, for decades,
had beset a major sector of its economy. Pres-
ident Johnson noted jjast United States sup-
port for Philippine agrarian reform and ex-
pressed his hope that American assistance
could continue in the future, particularly in
the realization of the land reform objectives
of the Philippines.
Both Presidents discussed the disposition of
the Special Fund for education, provided for
in the Philippine War Damage legislation. -
The}' agreed to consider plans including the
possible formation of a joint committee which
would ensure use of this fund to further edu-
cational programs to the mutual advantage of
the Philippines and the United States, among
which educational programs pertaining to land
reform would be eligible.
President Macapagal explained the goals of
his Socio-Economic Program and its objective
of alleviating the i^light of the common man
in the Philippines. President Johnson reiter-
ated his belief that it was the responsibility
of this generation everywhere to join the cam-
paign against poverty and the ills associated
with it and pledged American support for
worthy projects contributing to the economic
development of the Philippines. The two
Presidents noted that one area of particular
interest which could bring great benefit to the
Philippine people was rural electrification.
President Macapagal said that Philippine Gov-
ernment plans envisage the establishment of
generating and distribution electric systems in
607 towns and 400 selected barrios. President
Johnson observed that a team of American
experts has arrived in the Philippines, and,
working with private and public Philippine
energy experts, would cooperate in developing
plans for this nationwide system of expanding
power generation and distribution with its spe-
cial attention to rural areas.
The two Presidents looked to developments
in the trade between their respective coimtries
and in the world trading community that could
assure expanding markets for the leading ex-
ports of the Philippines, including sugar, coco-
nut products, abaca, lumber, minerals and
' For background, see ibid., Aug. 19, 1963, p. 301.
others. The Philippines expressed their readi-
ness and willingness to supply additional sugar
to the American market.
In response to President Macapagal's report
of the damage inflicted in the Philippines by
recent typhoons. President Johnson indicated
his Government's intention to donate 25,000
tons of grain available under the Food for
Peace Program. In addition, he pledged
United States readiness to make available for
purchase 100,000 tons of rice deliverable in
1965 to the Philippine Government under
Public Law 480, Title I.
President Johnson and President Macapagal
agreed that representatives of the two govern-
ments would meet at a mutually agreeable date
for negotiations leading to the solution of the
current aviation problems.
The two Presidents noted the major contribu-
tion made by foreign private investment to the
development and continued strength of their
countries. President Joluison pointed out in
this regard that United States economic rela-
tions with the Philippines would be seriously
impaired if an enforcement of the Philippine
Retail Trade Nationalization Law were to prej-
udice the position of long-established Ameri-
can firms. He observed that the Government of
the Philippines had committed itself that the
United States firms would not be affected by the
Retail Trade Nationalization Law. He ex-
pressed confidence that the Government of the
Philippines would uphold its long-standing
commitments contained, i7iter alia, in a note of
the Department of Foi-eign Affairs of August 4,
1954.
The visit of President Macapagal was also the
occasion for the signing of a treaty for the
avoidance of double taxation and prevention of
tax evasion.^ The two Presidents agreed that
the treaty reaffirmed the historic ties between
their countries and sti'engthened the revenue tid-
ministration of their respective governments.
The Presidents agreed that their Govern-
ments should continue their studies of matters
relative to the United States-Philippine Trade
Agreement.
President Johnson and President Macapagal
concluded that the imderstandings reached, as
' Ibid., Oct. 26, 1964, p. 601.
NOVEMBER 2, 19 64
633
well as the personal relationship established
during this visit, will contribute greatly to the
good will and friendship wliich traditionally
support Philippine-American relations and to
the mutual effort of the two countries to uphold,
defend and preserve the common ideals of de-
mocracy, freedom and the rule of law which
their peoples share.
Science and Development in Cliile
Address by Secretary Busk ^
It is a very great privilege for me to be here
today to make a few remarks at this closing
session of what has been a most stimulating and
productive discussion. It is true, Mr. Chair-
man, that science and diplomacy are becoming
allied. During the past 2 years, for example, I
have liad the privilege of sitting down with the
senior officers of the Department of State to
hear from a considerable niunber of distin-
guished scientists what they are doing to us for
the next decade, in order that we ourselves
might try to anticipate some of the problems
which they will be placing in our laps, out of
their laboratories and their adventurous
thought.
When the historian looks back upon this par-
ticular period of history, he will describe it in
many different ways, but he will surely say that
this was a period in which scientific knowledge
and technical capacity have exploded through-
out the world. And I do not mean by that just
that Europe and the Western Hemisphere, with
long traditions in science, somehow spread this
learning to other continents. Because the ex-
plosion has occurred in Europe and in the West-
ern Hemisphere just as much.
I happen to have in my library the proceed-
ings of the Georgia Medical College of 1837,
' Made before a symposium on "The Image of Chile —
Science anil Development," at the National Academy
of Sciences, Washington, D.C., on Oct. 9 (press release
444 ; as-delivered text) .
because a great-uncle of mine was then a stu-
dent. And a coimnencement speech was made
by a distinguished doctor of that day, in which
he pitied the students because the rapid advance
of scientific and medical knowledge in the pre-
ceding three or four decades had been so vast
that he felt tliat they were faced witli the ini-
jjossible task of learning all that needed to be
learned.
That was 1837. But when we look at this
steep curve of knowledge, we i-ecognize what
this modem explosion means. Now, it means
some different things : If applied to destruction,
it means that man has never been in so much
danger; it literally poses the question of the
survival of man, and it tests his spirit, liis con-
science, his prudence, liis judgment, as man has
never been tested before in the history of the
race. But it also means that great gates of op-
portunity are opening up — that the great bur-
dens which ordinary men and women have lived
under throuohout the centuries now have a
cliance of being lifted bj' scientific and techni-
cal capacity, if man can find a way to bring
that knowledge to bear and organize his life to
make it fruitful.
As a boy, I lived on a small red clay farm in
North Georgia, at the very beginning of the
technical revolution in our own agriculture. I
can remember wlien the first county agents be-
gan to come around to those small farms, talking
about the most elementary notions of better
G34
DEPAKTMENT OF STATE BULLETIN
crop management, fertilizer, a superior variety,
the minimum of public health — simple house-
hold hints based upon what was being learned
in the land-grant universities which were estab-
lished 100 years ago to assist this country in its
own development.
I take a good deal of courage and hope from
the fact that I can remember the beginnings in
at least one part of our own country. Because
that means that we need not settle back into
lethargy, under the notion that development re-
quires centuries — that somehow we in the West
took centuries for development, therefore the
others need not expect too much too fast.
We know tliat the dramatic and dynamic de-
velopment of much of our own country has oc-
curred within the lifetime of men now living —
thus that science and teclmology can be brought
to bear with relative rapidity, that one need
not wait for centuries, or even too many dec-
ades, to see what science and technology can
begin to do to lift some of these age-old burdens
from the shoulders of ordinary men and women.
That is one of the reasons why I congratulate
our American and Chilean scientists for having
met during this week to talk about some of the
relationships between science and development
and to see what can be dra^vn out of these fields
for the improvement of the lot of man.
Science and the Alliance for Progress
When the United States pledged its commit-
ment to the Alliance for Progress in 1961, it
recognized the central role which science and
teclinology must play in the economic and social
transformation which was envisaged under the
alliance. The experience of the first years of
the alliance has not lowered our assessment of
the importance of science in this development
process. But it has refined, to some extent, our
thinking on how scientific endeavor most use-
fully can spur economic growth.
In Latin America generally, scientific talent
is limited in quantity. Indeed, we ourselves
continue short in scientific manpower, but
throughout Latin Amei-ica, generally, it is only
about 2.3 percent of tlie population wliich can
be classified as professional or technical in any
field. It has been necessary to establish priori-
ties, and this lias led to extensive discussions
between scientists and technologists, on the one
hand, and those responsible for allocating na-
tional resoui"ces. And, as a rule, the result has
been the sound conclusion that short-range sci-
entific and teclmical projects, however interest-
ing in and of themselves, are less urgent than
research and teaching institutions capable of
promoting science and technology on a broad
front.
Much has been done and is being done in im-
proving curricula, strengthening faculties,
equipping laboratories with the most modem
and sophisticated research devices, and provid-
ing interchanges between United States and
Latin American scientists and scientists from
other parts of the world. And this symposium
this week is symbolic of these efforts.
There is general agreement, I believe, that
Latin American countries need to put more em-
phasis on improving their agriculture and on
making their rural areas a more active market
and a stimulus for manufacturing. Indeed,
this is true of most of the developing areas of
the world. The great imtapped markets of the
future are not necessarily to be found in foreign
trade. If our own experience means veiy much,
it is that the great untapped markets have to
do with the rising standards of living of our
own people and of the people within the coun-
tries looking for markets.
As I pointed out in a speech on Monday of
this week,^ agricultural production in the de-
veloping areas, and particularly in Asia and
Latin America, is growing less rapidly than
population ; and if current trends continue, the
point will not be too far off when world food
stocks will simply not be enough to meet mini-
mum needs in the deficit areas.
Although Chile has a rich agricultural poten-
tial, it has been a net importer of food for years
and presently imports about 20 percent, or $125
million, of its food needs, if my information
is correct. Every dollar of increased food pro-
duction has a potential of freeing a dollar of
valuable foreign exchange to buy goods and
services needed for the overall development of
the country.
' For text, see Bulletin of Oct. 26, 19&4, p. 570.
NOVEMBER 2, 1964
635
Development Projects in Chile
The agricultural development project now
being initiated in Chile is a good example of
how applied science contributes to a total de-
velopment strategy. This project seeks to in-
crease farm production through research activ-
ity and improved rural educational institutions.
Closely correlated activities seek to stimulate
food output and exports through changes in the
agricultural credit and marketing systems and
in overall national agricultural policy.
Another effective application of science to
Chile's economic priorities is the Maule Eiver
project, so reminiscent to us in this country of
the Tennessee Valley Authority here at home.
By late 1967, a comprehensive regional develop-
ment plan will be created for that river basin,
to include an integrated and coordinated con-
struction and financial schedule for individual
projects. The multipurpose water resource
plan will include uses for agriculture, industry,
power, recreation, flood control, and conserva-
tion. Related projects will cover agrarian re-
form, transportation, marketing, education and
training, housing, urban growth, community
development, and public health.
The manpower and educational planning
project is the key to assuring that, in the future,
human resources will make their optimum con-
tribution to Chile's economic and social goals.
I believe these three projects, among the other
technical assistance activities with which we are
concerned in Chile, are excellent examples of
the cooperative endeavor we share under the
Alliance for Progress. They are being imple-
mented by Chilean institutions in collaboration
with the Chile-California program and the
United States Aid Mission in Santiago, with
funds provided jointly by the Government of
Chile and by the AID administration. And
they are utilizing more fully than ever before
the scientific capability of our two countries in
the service of Chile's economic and social de-
velopment under the Alliance for Progress.
Cooperation between Chile and the United
States extends over a wide range of scientific
subjects, including, I understand, the sleep-
wakef ulness mechanisms. This has a somewhat
special appeal to me, for I have been told that
science may make it possible to get along with
less sleep. And, as I remarked on another oc-
casion, I know some government officials who,
of necessity, have already made considerable
progress in that direction.
The Earth Sciences
I turn now to the second main discipline of
these seminars — earth sciences. The same force
that caused so much destruction in Chile during
1960 manifested itself in Alaska only last year.
This awesome power of nature disdains inter-
national boundaries. Studies carried out in
Chile on earthquake-resistant construction can
have universal application. And development
of techniques in instrumentation which might
be able to sense the early onrush of earthquakes
is as important in the Eastern Hemisphere as
in our own Western Hemisphere.
New tecliniques to determine the location and
extent of as yet unfound ore deposits are of
great significance in the economic development
of a country such as Chile, which has poten-
tially such a great mineral wealth. And I
understand that studies of this type are being
actively pursued by the Institute of Geologic
Research.
Studies in physical oceanography ofTer many
potential benefits. Perhaps we might come to
the harnessing of the tides and the ocean cur-
rents for jjower. But the exploitation of the
plant and animal resources of the sea promises,
I would suppose, even more rewarding benefits.
In a world where much of the population goes
to bed at night hungry and where protein de-
ficiency is widespread, the potential benefits
from harvesting the sources in the sea are spec-
tacular. The successful conclusion of experi-
ments now underway in Chile, producing fish
protein concentrate on a pilot-plant scale, could
be of great and far-reaching benefit to all of
mankind.
We need more research of methods of ni-
fluencing the biological cycle of the sea and in
techniques leading to fai'ming fish, rather than
merely hunting them. Such programs migh
pose a challenge for scientists in the Fish De-
velopment Institute in Chile, and indeed are
doing so.
Progress in any of these scientific fields de-
pends not so much on dollars as on manpower;
636
DEPARTMENT OF STATE BULLETIN
the shortage still remains men — here, in Chile,
and in almost every other country we know
about.
Day before yesterday, this symposium con-
sidered scientific manpower and education.
This necessity — the development of trained
manpower, including scientists — is an essential
component of Chile's great national goals, and
it will continue to receive the closest attention,
not only by Chilean authorities but by the
United States, to the extent that we can be,
or are asked to be, of any assistance.
As you know, because of the particular im-
portance of science and engineering in economic
development, a special committee of the Pan
American Union has been set up to investigate
the science and engineering education programs
in Latin America. Studies have already been
carried out in several countries, and it is good
to know that through the eiforts of Dean
d'Etigny, who participated in Wednesday's
symposium, the study for Chile has now been
completed.
Let this meeting of scientists from Chile and
the United States, gathered within the spirit of
hemispheric cooperation, be interpreted by all
as a certain sign that we stand together, ready
to attack and overcome any scientific or tech-
nological obstacles in the path of the economic
and social progress of the peoples of the New
World. Mr. Ambassador [Sergio Gutierrez
Olivos], I congratulate you and your embassy
and the Government of Chile and our friends
here in the National Academy of Sciences for
what has been a most compelling and instructive
dialog here this week between the great scientists
of our two countries. And I hope this will,
itself, not only stimulate our common thinking
as common members of the scientific and tech-
nical community, as it might affect our two
countries, but will spread from here and be of
advantage to many in other parts of the world.
U.S. Policy in a Changing World
by W. W. Rostow
Coimselor and Chairman of the Policy Planning Council'^
In my country when we think of Barcelona
we tliink of one of the great centers of Medi-
ten-anean. Western, and imiversal civilization.
Quite specifically, I recall when I was last here
in 1959 taking my children down to see the
Santa Maria (wliich you have graciously sur-
rendered for tlie time being to the New York
World's Fair), which evokes so vividly Colum-
bus' voyage. I confess that my wife and I were
quite as moved as the children. And this must
be so for every American.
This ancient port has a special meaning for
us and today continues to exert an important
^ Address made before the Institute of North Aruer-
iean Studies, Barcelona, Spain, on Oct. 6 (press release
435).
influence on the life of this small planet. As
the pace of liistoiy accelerates, it is good to
come to this old but still vital center of human
wisdom to consider together some of today's
pressing problems.
I am particularly interested in discussing
with you a problem of importance to all of us :
This is the problem we face in determining our
policies toward the developing nations of the
world. I can think of no more appropriate
place for a discussion of this theme tlian this old
Mediterranean center from which sailed the
ships and men who, starting almost 500 years
ago, began the process of linking the world of
Western Europe with that of other cultures.
In opening our discussion this evening, I
637
should like to do two things: first, to outline
in broad terms how we in Washington define
the strategy we jiursue on the world scene;
second, to look in somewhat gi-eater detail at
one dimension of that strategy — that part
which is concerned with the relations between
the more advanced part of the free world, lying
mainly in the northern arc between Tokyo and
West Berlin, and developing nations, mainly to
the south, in Asia, the Middle East, Africa, and
Latin America.
Fundamental Forces
Although the headlines are filled with news
of crisis, and although the first duty of all our
governments is to cope with such crises, a work-
able strategy in the contemporary world must
begin by defining the fundamental forces which
we confront in the second half of the 20th cen-
tury and which we must try constructively to
shape.
These fundamental forces can be defined un-
der the follovsdng major headings :
— ^The revolution in militaiy technology,
yielding a virtually uncontrolled competitive
arms race and, at present, an imbalance of the
offensive over the defensive in the field of nu-
clear weapons ;
— The revolution of modernization in Latin
America, Africa, Asia, and the Middle East.,
including the modernization going forward
in underdeveloped areas under Connnunist
control ;
— ^The revival of economic momentum and
political strength in Western Europe and
Japan ;
— ^The revolution in science and technology,
notably in international communications;
— The paradoxical political revolution,
marked simultaneously by the proliferation of
ardent new nations and, at the same time, an
intensified interdependence which requires the
individual nation-state to cooperate increas-
ingly with others in order to provide for its
security and economic welfare;
— The continuing compulsive commitment of
the Communists to extend their power on the
world scene to the maximum, by exjiloiling
these fundamental forces.
In the light of this view of what we confront
in the world aroimd us, the strategj' of the
United States may be defined as follows:
First, we are strengthening the bonds of asso-
ciation among tlie more industrialized nations
which lie mainly in the northern portion of the
free world: Western Europe, Canada, and
Japan.
Western Europe and Japan have been caught
up in a remarkable phase of postwar recovery
and economic gro^vth, a phenomenon especially
obsen-able here in Barcelona. American mili-
tary strength and American economic resources
have sen'ed to protect and support Western
Europe and Japan. Although they must still
rely on the deterrent power of American nu-
clear resources, they are evidently entering a
phase where they wish to play a larger role on
the world scene and they command the re-
sources to do so. We are in the midst of a
complicated process of working out new terms
of partnership with Western Europe in every
dimension.
NATO is being rethought and Europe's role
within it being redefined, in the light of the
changing, more diverse and sophisticated na-
ture of the Communist threat.
New patterns of trade are being worked out
within Europe, between Europe and the United
States, between the whole Atlantic community
and the rest of the world.
Our policies with respect to economic growth
and currency reserves are being discussed and
alined in the Organization for Economic Coop-
eration and Development; and we are moving
into a new partnerehip in the business of aid
to the underdeveloped areas.
Although Japan stands in a somewhat differ-
ent relation to us than does Europe with respect
to military affaii-s, in each of the other dimen-
sions of alliance policj' — trade, reserves, ami
aid — it is moving into a role of partnership with
the industrialized north.
Let me make one point quite bluntly. We do
not envisage this association of the northern,
more industrialized states as either an exclusive
club or one designed to protect (he narrow in-
terests of those who join m its entei-prises.
Quite the contrary. It is an effort to group the
assets these nations counnand and to generate
638
DEPARTMENT OF STATE BULLETIN
global policies wliich will not merely protect
the free-world conuminity but provide to the
soutlieru continents resources and tmding op-
portunities whicli will accelerate their develop-
ment and draw tliem as soon as may be feasible
mto full partnership on the world scene.
The constructive steps that mark tlds process
of tiglitening the north and of mobilizing its
strength and resources for worldwide taskt do
not usually make headlines miless— as is inevita-
ble—there are phases of disagreement along the
way ; but it is a rapidly developing piece of his-
tory wliich will give to the cause of freedom a
new strength, a new bone structure.
Tlie second dimension of our strategy con-
cerns our posture toward the revolution of mod-
ernization going forward in Latin America,
Africa, Asia, and the Middle East— all areaJ
wliere Spain has had much experience.
"W^iat we sometimes call underdeveloped na-
tions represent a wide spectnun with different
problems marking each stage along the road to
self-sustained growth. Some of these nations
are well along that road ; others are just begin-
ning. And, in the end, each nation, like each
individual, is, in an important sense, unique.
"Wliat is common throughout these regions is
that men and women are determmed to bring to
bear wlvat modern science and tecluiologj' "^an
afford in order to elevate the standards of life
of their peoples and to provide a firm basis for
positions of national dignity and independence
on the world scene.
The United States is fimily committed to sup-
port this effort. We look forward to the emer-
gence of strong, self-confident nations which,
out of their own traditions and aspirations,
create their own forms of modem society. We
take it as our duty— and our interest^to help
maintain the integrity and the independence of
this vast modernization process, in as far as our
resources and our ability to influence the course
of events permit.
Working increasingly in partnership with
our friends in Europe and Japan, our objective
is to see emerge a new relation of nortli-south
cooperation among self-respecting, sovereign
nations to supplant the old colonial ties which
are gone or fast disappearing from the world
scene.
The third dimension of our strategy lies, of
course, in East-West relations. There we pur-
sue a two-sided policy.
On the one hand, we are conscious tliat wo
have not yet reached a state of peace or even
detente with either Moscow or Peipino-.
Our relations with Moscow have been rela-
tively quiet since the Cuba missile crisis of 1962,
but none of the critical issues of the cold war
ha\-e been settled ; we must assume that Moscow
will continue to probe for weak spots in the free
world ; we must show by our preparedness and
resolve that such probing will not lead to gains
by Moscow.
As we look at it in Washington, the struggle
against communism is part of a larger and more
constructive enterprise. The common mission
of the nations of the free world is not merely to
frustrate Communist aggression. Our mission
IS to build with our friends a new world order
to supplant that which was destroyed in 1914
and never replaced. For a half century now,
we have all lived in a world at war— or near
war— and in recent years with a nuclear sword
of Damocles over our heads.
We are trymg to help build a community of
free and independent nations, offering to their
peoples rising standards of welfare, eacli proud
of its uniqueness but respecting also the inter-
dependence that is imposed upon us all on this
small planet by modern communications and
modern weapons.
The struggle with communism, in the end, is
a .struggle about how the world that is emerging
in tliis second half of the 20th century shall be
organized. We believe it should be organized
on the basis of the principles written into the
United Nations Charter in 1945— principles
which extend to nations that mixture of indi-
vidual freedom, diversity, and responsibility
that underlies the humane tradition of the West.
It is in that spirit that we make our contribu-
tion to building the North Atlantic community,
to building new relationships of mutual sup-
port among the nations of this hemisphere,
building new ties to Japan and to our other
friends in the Pacific. It is in that spirit that
we seek to draw the nations of Eastern Europe
into the wider coimnunity of Europe and the
world, as their will and capacity to express their
NOVEMBER 2, 1964
639
national aspirations increase. It is also in that
constructive spirit that we look seriously but
with caution to our relations with the Soviet
Union, where we hope, step by step, in concert
with our allies to find areas of agreement which,
consistent with the needs of national security,
would limit the dangers to all peoples repre-
sented by an uncontrolled nuclear arms race.
None of these consti-uctive possibilities will
come to life if the Communists succeed, by what-
ever method, in extending their power into the
free world. On the other hand, we take it to be
our task, working with our friends, to move to-
ward the construction of a new world order as
we defend the cause of freedom where it is
endangei'ed.
Therefore, the first dimension of East- West
policy has been and must be the maintenance
of a full spectrum of military strength designed
to make the launching of aggression against the
free world as unattractive as possible and to
permit us to deal with aggression when it occurs
in ways which not only protect the vital inter-
ests of the free world but do so in ways which
minimize the likelihood of nuclear war.
The other side of our approach to East-West
relations goes beyond deterrence. We wish to
exploit every tendency and impulse in the Com-
munist world toward national independence and
toward policies of greater humanity in order to
draw countries of Eastern Europe — and, in-
deed, the Soviet Union itself — toward closer and
more normal relations with Europe and the
Morld.
The victory we desire is a victory for the
fundamental principles of national independ-
ence and human freedom — the principles incor-
porated in the language of the United Nations
Charter.
Our strategy is, then, quite simple. We are
working from day to day to bind up in closer
partnership the industrialized nations of the
north; to work with our friends in the north
to create a new partnership between the more
developed and less developed nations. Kecog-
nizing and welcoming the new strength to be
found in Western Europe and Japan, recogniz-
ing and welcoming the impulse of the newer
nations to modernize, we see a path ahead which
would reconcile the great interests involved and
gradually build a community of free nations.
We intend to defend this community of free
nations and to do so in ways which will minimize
the possibility that a nuclear war will come
about ; and we intend — with all the poise and in-
sight we can muster — to draw the nations now
under Communist regimes toward the free-
world community both by ruling out the expan-
sion of communism and by exploiting specific
areas of overlapping interest which we believe
will increasingly emerge as the strength, imity,
and effectiveness of the free community are
demonstrated.
Growth in the Developing Nations
Within this broad framework of strategy let
me now say something more about its north-
south dimension.
We confront on the world scene, as I said
earlier, the revolutionary movements of mod-
ernization and nationalism in which more than
a billion human beings in Asia, the Middle
East, Africa, and Latin America are now
caught up. Behind these revolutions is what
might be called a reactive nationalism ; that is,
a widespread desire of nations that, in one way
or another, have felt the power and weight of
those who were technologically and industrially
more mature, to free themselves from this kind
of technical inferiority and in so doing to find
a new role of dignity and status on the world
scene.
Although other impulses enter into the moti-
vation for economic growth in the developing
nations, the desire for increased national status
and dignity on the world scene appears a pre-
dominant motivation.
For an historian this is no surprise. Wlien,
for example, Jefferson and Hamilton argued in
the ITnited States in the late l&th century
whether industrialization should be undertaken,
Hamilton's critical argument was that without
industrialization the ITnited States would be
helpless in dealing with Great Britain and other
more advanced European powers.
Similarly, the impulse to industrialization in
France, Germany, Japan, and Russia in the
period from, say, 1815 to 1885 arose primarily
froin this kind of reactive nationalism — from a
desire to overcome a sense of relative inferioritv.
G40
DEPARTMENT OF ST.VTE BULLETIN
In the contemporary world, of course, the
reaction has been more explicitly against colo-
nialism and its memories; but similar impulses
are evident in less developed nations which long
since escaped colonial rule but do feel weighed
down by the burdens of relative underdevelop-
ment.
All this yields a sense of impatience and frus-
tration within developing nations. They are
anxious to attain quickly a position of dignity
and power on the world scene; but they con-
front the arithmetic of power in a world of
modern weapons.
They desire urgently to see a rapid increase of
national income and human welfare; but they
confront the inherent difficulties of the modern-
ization process which limit the pace at which
development can proceed.
Under these circumstances it is not surprising
that we see in both the domestic politics of the
developing nations and their international rela-
tions reflections of this double frustration which
sometimes takes the form — as if by what psy-
chiatrists call transference — of bitter struggles
withm their regions to alter boundaries or set-
tlements laid down, in what is now regarded
as an arbitrary or unsatisfactory way, as part
of the colonial heritage.
The Communists seek to take advantage of
such frustrations.
Conscious of the complexities and crosscur-
rents inherent in the transition to moderniza-
tion, it is Communist policy to heighten them.
They aim to produce a failure of the political
proc&ss and, amidst attendant confusion, to take
over power.
Specifically, Communist policy aims to
heighten the typical anticolonial feeling that is
likely to mark the early stages of moderniza-
tion. They also encourage an exaggerated na-
tional ism in order to achieve one or more of these
results which sen-e Commimist mterests: the
damaging of relations between developing na-
tions and the more advanced democratic nations
which must be an important source of external
assistance; the heightening of regional conflicts
which Communists can exploit; and the diver-
sion of scarce energies, resources, and talents
away from the constructive tasks of moderniza-
tion.
In terms of welfare policy within a develop-
ing nation. Communists (while adapting their
stance to particular circumstance) generally
project the view that no important movement
toward economic and social development can
occur until after there has been a successful
Communist revolution. They seek to divert,
thereby, the energies of the people away from
concrete tasks of development into disruptive
revolutionary activity, while heightening a sense
disappointment with the pace and the uneven-
ness of economic progress and forestalling the
emergence of an effective national consensus.
Finally, in areas where they think the tactic
may prove fruitfvil — as recently in Venezuela —
they seek to disrupt the efforts to move forward
in the direction of effective political democracy,
hoping to profit by the breakdown of public
order.
These tactics are rooted in a judgment that,
unless communism manages to seize power dur-
ing the complex and difficult transition to mod-
ernization, a Conmnmist takeover will prove
impossible. Communists sense that, once non-
Communist methods have demonstrated that
regular growth, social equity, and stable demo-
cratic political practice are attainable and
mutually consistent goals, an historic oppor-
tunity will have passed them irreversibly by.
The Communists are, then, the scavengers of
the modernization process. They prey on every
division, weakness, and uncertainty that is
likely to beset a society in the process of its
transformation to a modem mold.
From the point of view of the United States,
what we see, then, sitting in Washington, is a
situation where the interplay of the revolutions
of modernization and nationalism, with Com-
munist efforts to exploit their inherent frustra-
tions, poses a set of major problems.
"\^niat is our policy ?
Our first task, of course, is to assist those
nations threatened by Commvmist aggression,
direct or indirect, to maintain their independ-
ence. For those nations located along the bor-
ders of the Communist bloc, this has drawn the
United States into a series of direct alliances
designed to make clear that overt aggression
by Communists against these nations would
bring into play the full military power of the
NOVEMBER 2, 1964
641
United States. Our defense agreement with
Spain is an important contribution to the secu-
rity of the free world.
Partly because of the success of the free
world's effort in Korea, Communists have put
tlieir major reliance since that time on tech-
niques of ideological attraction, subversion, and
guerrilla warfare. In Southeast Asia, in the
Caribbean, and in Africa we are now under-
going a critical test of whether we can make
those techniques as sterile as we rendered the
earlier techniques of Commimist aggression
applied against Western Europe and Korea,
and the attempt to install missiles in Cuba.
Our second task in facing the problems posed
in the developing regions to the south is that
of assisting them to establish the longer run
basis for their independence through programs
of economic assistance and trade. Tlie balance
we created in our initial response to Stalin's
postwar offensive, in the form of the Tiiiman
Doctrine on the one hand and the Marshall
Plan on the other, remains relevant down to the
present time. TVe must face, for example, the
hard fact of Communist aggression in South-
east Asia; but we must also conduct programs
of assistance, which are at least as important,
and use our influence to encourage the govern-
ments in that region to get on with the tasks of
modernization.
Third, we seek to be of such assistance as we
can in acliieving peaceful settlements of the
regional conflicts which have threatened dis-
integration in parts of Southeast Asia, the In-
dian subcontinent, and the Middle East, and
important parts of Africa.
In trying to perform these functions — in
trying to assist in tlie maintenance of the in-
dependence of nations, in their modernization,
and in keeping peace in the regions — the United
States finds itself often in a rather complicated
position. Our friends in the developing coun-
tries are, in one part of their minds, pleased
to receive our help and support; but, in an-
other part of their minds, one of the major
pui-poses of revolutions of nationalism and
modernization is to achieve a higher degree of
independence of the more advanced powci*s of
(ho world and in ])articnlar a higher degree of
independence of the United States.
This ambivalence toward the United States
we understand verj' well indeed. As I sug-
gested earlier, we are, after all, the first of the
nations to have broken away from colonialism
and to have been forced to make its way on
the world scene amidst more advanced powers
toward whose struggles against one another
we practiced a policy of isolation and reserve.
But in the modern world, the intimacy of
communications and the character of weapons,
combined with the Communist assault on the
foundations of AVestern life, require of us all
a common objective; namely, that we all do
what we can not merely to pursue conventional
national interests but to contribute actively to
the building of an orderly world community.
Even though the modernizing nations in the
Southern Hemisphere are understandably con-
centrated on their absorbing domestic tasks, we
hope to see them assume enlarged responsibili-
ties for mutual support in defending their in-
dependence, for mutual support in their tasks
of development, for mutual supjiort in the set-|
tlement of their intraregional conflicts. We
welcome the impulse in Asia, Africa, and Latitt|
America for the governments and peoples tc
take a more active role in shaping their owi
destiny. The interest of the United States is|
not to build an empire; it is to play our par
in building an orderly world community.
We welcome the evidence that the reactive
nat ionalism endemic in the southern continents
is being converted into attitudes and roles of
responsibility in regional and world affairsJ
As we look ahead we can foresee the day when|
the north-south distinction, arising from differ-
ences in timing of the industrial revolution
various parts of the world, will tend to disap^
pear. The capacity of nations even'where tc
deal with the tools of modern science and tech-|
nology will tend to become more equal as well
as tlieir ability to shoulder the burdens and re-
sponsibilities of the world connnunity.
The commitment of the United States to the
defense of freedom and the building of a stable
world connnunity — a commitment of men, re-l
sources, and political energy — will, I believej
remain stal)le in the years ahead.
But tills is a commit nient we all share.
C42
DEPARTMENT OF STATE BUIXETII
The Marine Corps and the Foreign
Service: A Working Partnership
Address hy Secretary Rusk ^
General Greene [Gen. Wallace ^I. Greene,
Jr., Commandant of the Marine Corps], other
distinguished guests, friends and families of our
graduating class : It is a very great honor, gen-
tlemen, for me to be here today to welcome you
into our Foreign Service for the Pi'esident and
for the people of the United States.
Since this is my first contact. General Greene,
with the Marines for the last 2 weeks, I should
like to begin by congratulating the Marine
Corps on Billy Mills and his performance in
Tokyo just the other day. I noted that the
sports announcers and the sports writers re-
ferred to him as an unknown. But I didn't
quite understand why they should seem so sur-
prised, because they did know that he was a
Marine.
It is a very gi-eat privilege to extend to the
members of this class, as you finish your train-
ing and embark upon your new assignments,
the congratulations of the President as well as
my own.
As the prospective employer of this class, I
have an understandable interest in your back-
ground, in your motivation for wanting to be-
come a part of our Foreign Service program,
and in the job you will be performing with me
and my colleagues. And, indeed, the interest
here shown by the Departmental and Foreign
Service personnel in this auditorium suggests
that they, too, share the same interest.
In applying for embassy duty, you have al-
ready shown your desire for the unusual — and
you may be assured that embassy duty is dif-
ferent. It is often a test of character, of endur-
ance, and of patience. Or there may be critical
occasions calling for the steady nerves, the cour-
age, and the resourcefulness for which the Ma-
rine Corps is justly renowned.
^ Made at the Department of State on Oct. 16 (press
release 454 ; as-delivered text) during ceremonies mark-
ing the 10th anniversary of the founding of the Marine
Security Guard School and the graduation of the 66th
class of Marine Corps embassy and consulate guards.
You are an elite group within an elite corps.
I am confident that the security of our diplo-
matic and consular posts around the world will
remain in good hands — that you will zealously
protect our missions and our people, who, like
you, are devoted and dedicated to the interests
of our country.
There is, in fact, a great similarity between
our two great services. On the one hand, each
is the oldest in terms of the growth of our na-
tion. I like to think. General Greene, that we
too were born in 1775, because we in the State
Department claim that the Committee of Secret
Correspondence, under Benjamin Franklin, was
a direct ancestor of our Department of State.
Ever since then, we've enjoyed many close ties
with the Marine Corps. The men and women of
these organizations serve wherever assigned,
selflessly and unstintingly, in the furtherance
of our national interest. Like Marines, our
Foreign Service employees serve as the "front-
line" troops, but in an altogether different kind
of battle. They, too, serve in places and under
conditions which are almost unheard of or to-
tally unknown to many people. Like Marines
in wartime, the price our people may pay can be
the supreme one.
Before you leave, I urge each of you to visit
the lobby at the diplomatic entrance and view
the wall plaque on which are inscribed the
names of the men of the Foreign Service who
gave tlieir lives in the service of our nation.
For many of them, I would like to borrow upon
a characterization applied to Marines during
World War II and say that their "uncommon
valor was a common virtue."
Last July we dedicated the south court of this
building as a Memorial Court "to the memory of
those who gave their lives for the cause of
peace and friendship among nations." And
around the fountain m the court we placed
bronze plaques naming the groups of those to
whom this Memorial Court is dedicated. One
of those plaques bears the inscription: "U.S.
Marine Guards."
Incidentally, when you visit that court, that
figure in the fountain does not represent the
State Department. If it did, he would be carry-
ing the world on his shoulders, instead of sit-
ting on top of it.
N0\T;MBER 2, 1964
643
Your Corps and our Foreign Service express
our basic national characteristics and purposes.
We believe that a great majority of the ordinaiy
people of this world share a common bond in
maintaining and perpetuating peace and friend-
ship. In what better way can we exjiress and
promote these objectives than by the personal
exchange of ideas with citizens of other nations
on a mutual and friendly basis and in a cordial
atmosphere ? Independently, or in concert with
other members of the Foreign Service team, our
Marines, as General Greene has pointed out,
have made people in other lands aware of the
lofty ideals of our country and of the warmth
and generosity of our people. In fact, the "Ten
Commandments for Marine Security Guards"
in your handbook provide an excellent guide for
all Americans who go overseas.
To me and to my colleagues in tlie Foreign
Seiwice, the Marine Security Guards are im-
portant symbols of security — in more ways than
one. Aside from the essential functions you
play in helping to maintain the security of our
missions overseas, your presence is a constant
reassurance to us that "the Marines have landed
and the situation is well in hand." In this pe-
riod of numerous critical international tensions,
even Foreign Service employees, dedicated and
conflict-hardened as they are, like to sleep com-
forted by the knowledge that our people, places,
and things are in safe hands. They appreciate,
as I do, the lonely vigil you often, of necessity,
must undertake in performing your duties, and
I assure you that we are constantly aware of
the difficult nature of those duties.
This formal arrangement between the Marine
Corps and the Department of State is 16 years
old. And the joint school from which you are
graduating, while only 10 years old, is emblem-
atic of the unity of purpose of our organiza-
tions. It is another milestone in the long and
historic association between our services since
1775. We in the Department and the Foreign
Service have been very pleased with this pai't-
nership. Like other Americans who have seen
the Marine Security Guards on duty, I feel a
special affection for them, for I have personally
seen — and may I say benefited — from our
Marine Guards in action in at least 30 capitals
all over the world.
As I have visited with the Marine Guards
in so many distant places, I have on occasion
been reminded of the story of the jet flight
across the Pacific where an old lady was sitting
in the kibitzer's seat in the cockpit to watch the
proceedings. She saw the copilot dozing a bit.
The plane was on automatic pilot, and the pilot
was simply looking out and aromid — nothing
very much happening. And she said to him,
"Captain, doesn't it get boring up here hour
after hour like this?" And he said, "Yes, lady,
but when it isn't, it's just the opposite." And
tills is the way in which the duties of a Marine
Guard can be transformed instantaneously from
one type of service to another.
You have been carefully selected and espe-
cially trained for your tasks, which, indeed,
I'equire all the basic qualities of a good diplo-
mat. The central objective of our diplomacy,
as of the military forces which support it, is to
preserve the safety of our people and their way
of life. Today we can be safe only to the extent
that we can make the world as a whole safe
for freedom. The heavy responsibilities of our
foreign policy and of the men and women, both
civilian and militarj-, who conduct and support
it, is to win this world struggle without a devas-
tating war, if possible. For a victory which
would burn up most of the people and civiliza-
tion of the Northern Hemisphere is not the sort
of victory that we — or any sane person could —
desire.
We are still surrounded by dangers, but
through strength and firmness, coupled with
good sense and intelligence and persistence, we
are making progress toward a world that is
secure for freedom. In this vital task, we in
the Department of State and the Foreign Serv-
ice are very glad and proud to have tlie Marine
Corps, with its own great traditions, associated
with us in this very special and intimate way.
Just in the past day or two, we have had news
from various parts of the world which reminds
us once again that we have lived in a period
of change in this postwar world. That has
been true for the past 20 years. And change
will continue to be the standing order of the
day. But there is one very impoi'tant stabilizing
element in this world situation, and tliat is the
power and the purpose of the American people.
644
DEPARTMENT OF STATE BULLETIN
General Omar Bradley once said many years
ago, in reference to this changing course of
events in the postwar world, ''Tlie time has come
for us to chart our course by the distant stars
and not by the liglits of each passing ship."
The purposes of the American people are
committed to freedom, committed to a decent
world order, to peace. And tlioso purposes are
baclied by unimaginable power — power in which
you Marines and your associates in the Armed
Forces are so major a part.
That combination of decent purpose and
great power provides a beacon unpervious to
cliange, to which men who love freedom all over
the world can loolj for their guidance.
So, as you gentlemen go out to distant pai-ts
of the world, wearing this great uniform, you
will be carrj'ing with you the representation of
the American people and those purposes that
are so central to this nation, purposes which
will win for j^ou in almost every instance the
confidence and respect and the friendship of the
foreign peoples among whom you serve-
Good luck to vou.
U.S. Aids International Campaign
To Preserve Nubian Monuments
Press release 437 dated October 6
The international effort sponsored by the
United Nations Educational, Scientific and
Cviltural Organization (UNESCO) to preserve
the Egj^ptian temples of Abu Simbel from inun-
dation by the rising waters of the Aswan Dam
has now received U.S. financial assistance.
A grant in the equivalent of $12 million, in
the fonn of Egv'ptian pounds owned by the
United States in Cairo, is being made for de-
posit to the Liternational Trust Fund created
by the UNESCO Executive Committee of the
International Campaign To Save the I\Ionu-
ments of Nubia. The grant is being made by
the Agency for International Development,
following the Senate recommendation ^ that
such a contribution be made from excess for-
eign currency funds arising from the sale, un-
der Public Law 480, of surplus agricultural
commodities. On June 30 of this year the Unit-
ed States owned Egyptian pounds in excess of
its requirements in the sum of $75.9 million.
In addition, more than $34 million in U.S.-
owned Egyptian pounds had been previously
set aside for loans to U.S. business operating
in the United Arab Eepublic. This sum has
remained unused for more than 3 years and can
now, mider tlie terms of the agreement with the
U.A.E.,^ be used for other purposes. It is from
these funds that the contribution to Abu Simbel
will be made.
A contribution of approximately one-third of
the estimated total cost of $36 million for the
project had been pledged by the United States,
subject to several conditions, at an international
pledging conference last year. Pledges to the
pi'oject by 47 member states and associate mem-
bers of UNESCO, including the United Arab
Republic and the United States, have reached
a total of $28.8 million. While this total is still
considerably short of the $36 million required
to finish the project, it was seen nearly a year
ago that the work could not be delayed if the
temples were to be saved because of the im-
pending rising of the waters this fall. The
U.A.R. therefore decided to underwrite the re-
maining cost of the project so work could be-
gin eai'ly this year. The U.A.R. acted in the
expectation that additional public and private
contributions would be forthcoming to meet the
total cost.
A private American group, the American
Committee To Preserve Abu Simbel, has been
formed to receive private gifts from American
institutions and individuals. With the avail-
ability of U.S. fimds now assured, the commit-
tee will undertake a campaign for private con-
tributions to augment fmids already pledged by
member states and associate members.
' S. Rept. 1380, 88th Cong., 2d sess.
" Funds for the Abu Simbel grant were generated
from surplus agricultural commodities agreements be-
tween the U.S. and the U.A.R. dated Dec. 24, 1958, and
July 29, 1959.
Correction
Bulletin
of October 19, 1964
p.
551
The
date in
the
opening line of the sec
md
para
graph
under
the
subhead "The Fight
Ag
ainst
Sub-
version
" should read "1959."
no\t;m:ber 2, 19 64
645
TREATY INFORMATION
Current Actions
Signatures: Australia, France (ad referendum), New
Zealand, United Kingdom, United States.
Whaling
Amendments of paragraphs 2, 4(1), 6(1), 6(3), 9(a),
and 9(b) to the schedule to the international whal-
ing convention of 1!H6 ( TIAS 1849) . Adopted at the
16th meeting of the International Whaling Commis-
sion. London, June 26, 19(>4. Entered into force
October 1, 19(54, with the exception of paragraph 6(3) .
MULTILATERAL
BILATERAL
Antarctica
Recommendations including agreed measures for con-
servation of Antarctic fauna and flora. Adopted at
Brussels June 2, 1964.'
Notification of approval: South Africa, October 7,
1964.
Coffee
Inteniational coffee agreement, 1962, with annexes.
Open for signature at United Nations Headquarters,
New York, September 28 through November 30, 1962.
Entered into force December 27, 1963. TIAS 5505.
Accession deposited: Ghana, September 9, 1964.
Cultural Relations
Constitution of the United Nations Educational, Sci-
entitic and Cultural Organization. Concluded at
London November 16, 1945. Entered into force for
the United States November 4, 1946. TIAS 1580.
Signature and acceptance: Iceland, June 8, 1964.
North Atlantic Treaty — Atomic information
Agreement between the parties to the North Atlantic
Treaty for cooperation regarding atomic informa-
tion. Done at Paris June 18, 1964.'
Notification received that it is willing to he hound
1)11 terms of the agreement: Canada, October 12,
1964.
Northwest Atlantic Fisheries
Protocol to the international convention for the North-
west Atlantic lisheries of February 8, 1949 (TIAS
2089), relating to harp and hood seals. Done at
Washington July 15, 1963.'
Ratification deposited: Portugal, October 2, 1964.
South Pacific Commission
Agreement amending the agreement of February 6,
1947, establishing the South Pacific Commission
(TIAS 2317). Done at London October 6, 1964.'
Iran
Agricultural commodities agreement under title I of
the Agricultural Trade Development and Assistance
Act of 1954, as amended (68 Stat. 454; 7 U.S.C.
1701-1709), with exchange of notes. Signed at
Tehran September 29, 19(54. Entered into force Sep-
tember 29, 1964.
Agreement amending the agricultural commodities
agreement of January 29, 1962, as amended (TIAS
4956). Effected by exchange of notes at Tehran
February 10 and September 1, 1964. Entered into
force September 1, 19(54.
Viet-Nam
Agricultural commodities agreement under title I of
the Agricultural Trade Development and Assistance
Act of 1954, as amended (68 Stat. 454 ; 7 U.S.C. 1701-
1709), with exchange of notes. Signed at Saigon
September 29, 1964. Entered into force September
29, 1964.
Yugoslavia
Agreement concerning exports of cotton textiles from
Yugoslavia to the United States. Effected by ex-
change of notes at Washington October 5, 19(54.
Enters Into force January 1, 1965.
DEPARTMENT AND FOREIGN SERVICE
' Not in force.
Designations
Harvey R. Wellman as Director of the Office of
Personnel, effective October 12.
646
DEPARTMENT OF STATE BULLETIN
INDEX November 2, 196^. Vol. LI, No. 1323
Atomic Energy
Chinese Communists Conduct Nuclear Test
(Johnson) 012
President Reports on Change in Soviet Leader-
ship, Chinese Nuclear Test, and New British
Government 610
Mr. Rusk and Mr. Bundy Interviewed on Red
China's Nuclear Testing (114
Chile. Science and Development in Chile
(Rusk) (J34
China
Chinese Communists Conduct Nuclear Test
(Johnson) 612
President Reports on Change in Soviet Leader-
ship, Chinese Nuclear Test, and New British
Government 610
Mr. Rusk and Mr. Bundy Interviewed on Red
China's Nuclear Testing 614
Communism. U.S. Policy in a Changing World
(Rostow) 637
Department and Foreign Service
Designations (Wellman) 646
The Marine Corps and the Foreign Service :
A Workiug 1'artner.ship (Rusk) 643
Economic Affairs
An Appeal to Discontent (Ball) 622
U.S. Policy in a Changing World (Rostow) . . 637
U.S.-Uruguayan Trade Committee Holds Talks
at Washington 617
Educational and Cultural Affairs. U.S. Aids
International Campaign To Preserve Nubian
Monuments 645
Europe. An Appeal to Discontent (Ball) . . 622
India. Mr. Rusk and Mr. Bundy Interviewed on
Red China's Nuclear Testing 014
Philippines. President Macapagal of Philip-
pines Visits United States (Johnson, Maca-
pagal, jciint communique) 628
Presidential Documents
Chinese Communists Conduct Nuclear Test . . 612
President Johnson Receives Message From New
Soviet Government 611
President Macapagal of Philippines Visits United
States 628
President Reports on Change in Soviet Leader-
ship. Chinese Nuclear Test, and New British
Government 610
President Sends Congratulations to New U.K.
Prime Minister 613
Science
Man and Nature (Rusk) 618
Science and Development in Chile (Rusk) . . 634
Treaty Information. Current Actions .... 646
U.S.S.R.
An Appeal to Discontent (Ball) 622
President Johnson Receives Message From New
Soviet Government (Johnson) 611
President Reports on Change in Soviet Leader-
ship, Chinese Nuclear Test, and New British
Government 610
Jlr. Rusk and Mr. Bundy Interviewed on Red
China's Nuclear Testing 614
United Arab Republic. U.S. Aids International
Campaign To Preserve Nubian Monuments . 645
United Kingdom
President Reports on Change in Soviet Leader-
ship, Chinese Nuclear Test, and New British
Government (jio
President Sends Congratulations to New U.K.
Prime Minister (text of message) .... 613
United Nations
An Appeal to Discontent (Ball) 622
U.S. Aids International Campaign To Preserve
Nubian Monuments (j4g
Uruguay. U.S.-Uruguayan Trade Committee
Holds Talks at Washington 617
Name Index
Abel, Elie gig
Ball, George W g22
Bundy, William gjg
Herman, (Jeorge gi4
.Tohmson, President 610,611,612,613,628
Macapagal, Diosdado 628
Rostow, W. W g37
Rusk, Secretary 614,618,634,643
Wellman, Harvey R. •...•.... 646
Check List of Department of State
Press Releases: October 12-18
Press releases may be obtained from the OflSce
of News, Department of State, Washington, D.C.,
20.~>20.
Relea.ses issued prior to October 12 which ap-
pear in this issue of the Bulletin are Nos 435
and 437 of October 6 and 444 and 445 of Oc-
tober 9.
Subject
U.S. participation in international
conferences.
Rusk : "Jlan and Nature."
Ball: "An Apijeal to Discontent."
Harriman : Virginia Polytechnic
Institute (excerpts).
U.S.-Israel de.salting program.
Marine Security Guard graduation.
Harriman : Farm- Labor-Small
Business Council, Muncie, Ind.
(excerpts).
Harriman : Purdue University
( excerpts ) .
Rusk: Marine Security Guard
graduation (as-delivered text)
Cleveland: U.N. Association and
Central Washington State Col-
lege (excerpts).
Cleveland: Sunday Evening Fo-
rum, Tucson, Ariz, (excerpts).
No.
Date
*446
10/12
447
448
*449
10/12
10/15
10/15
t450
«451
*452
10/15
10/16
10/16
*4.j3
10/17
454
10/16
*455
10/16
*456 10/17
*Not printed.
tHeld for a later issue of the Bulletin.
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OFFICIAL BUSINESS
TWO FOREIGN AFFAIRS OUTLINE PAMPHLETS
The Alliance for Progress
Democracy vs. Dictators in Latin America
These two pamphlets, based on recent addresses by Thomas C. Mann, Assistant Secretary of Sti
for Inter-American Affairs, outline United States policy toward Latin America and call upon aU 1
American peoples for continued dedication to assure the success of the Alliance for Progress progn
and to make democracy a reality throughout the hemisphere.
ORDER FORM
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CITY, STATB
THE OFFICIAL WEEKLY RECORD OF UNITED STATES FOREIGN POLICY
THE
DEPARTMENT
OF
STATE
BULLETIN
Vol. LI, No. 13U
November 9, 196^
TOWARD THE BROTHERHOOD OF MAN
Address by Secretary Eusk 650
SECRETARY RUSK DISCUSSES WORLD DEVELOPMENTS
ON "ISSUES AND ANSWERS" 65^
SOME LESSONS OF ECONOMIC DEVELOPMENT SINCE THE WAR
by W. W. Rostow, Counselor 661^.
MONEY FLOWS AND BALANCE-OF-PAYMENTS ADJUSTMENT
by Under Secretary of the Treasury Robert V. Roosa 669
For index see inside back cover
Toward the Brotherhood of Man
Address ly Secretary Ritsk^
It is a privilege to address this great meeting
of young leaders. I understand that the some
2,000 delegates at this meeting come from 81
coimtries of the free world. And they repre-
sent some 300,000 other Jaycees — the largest
organization of young businessmen in the
world.
More important than your size are your com-
mon commitments. You subscribe to a lofty
creed :
We believe
That faith in God gives meaning and purpose to
human life ;
That the brotherhood of man transcends the sov-
ereignty of nations ;
That economic justice can best be won by free men
through free enterprise ;
That government should be of laws rather than of
men;
^ Made before the 19th World Congress of Junior
Chamber International at Oklahoma City, Okla., on
Oct. 19 (press release 457). Secretary Rusk also made
some extemporaneous remarks.
That earth's great treasure lies in human person-
ality ;
And that service to humanity is the best work of
life.
You are devoted to "service to humanity."
The good works of the Junior Chambers of
Commerce are visible throughout the free world.
Your creed and your endeavors to live up to it
go far to explain why Karl Marx and his fol-
lowers went wrong. They thought only in
terms of primitive capitalism— a capitalism
which often ruthlessly exploited human labor.
They did not understand the capacity of free
and compassionate men to improve their
institutions.
You know that "economic justice can best be
won by free men through free enterprise.'*
What private enterprise, combined with suit-
able governmental policies, can accomplish is'
evident in all the economically advanced coim-
tries of the free world. It is in these countries'
that the ordinary man has achieved the highest'
levels of well-being in all history. And con-i
DEPARTMENT OF STATE BULLETIN VOL. LI, NO. 1324 PUBLICATION 7766 NOVEMBER 9, 1964
The Department of State Bulletin, a
weekly publication issued by the Office
ot Media Services, Bureau of Public Af-
fairs, provides the public and Interested
agencies of the Government with infor-
mation on developments in the field of
foreiifn relations and on the wort; of the
Department 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 Depart-
ment, as well as special articles on vari-
ous phases of International affairs and
the functions of the Department. Infor-
mation Is Included concerning treaties
and international agreements to which
the United States Is or may become a
party and treaties of general interna-
tional interest.
I'nbllcatlons of the Department. United
Nations documents, and legislative mate-
rial In the field of internationui relations
are listed currently.
The Bulletin Is for sale by the Super-
intendent of Documents, U.S. Govern-
ment Printing Office. Washington, D.C., :
20402. PBiCE : 52 Issues, domestic $10;
foreign $15 ; single copy 30 cents.
Use of funds for printing of this pub-
lication approved by the Director of the
Bureau of the Budget (January 19,
1961).
NOTE : Contents of this publication are
not copyrighted and Items contained
herein may be reprinted. Citation of the
Department of State Bulletin as the
source will be appreciated. The Bulletin
is indexed in the Readers' Guide to
Periodical Literature.
650
DEPARTMENT OF STATE BULLETIN;
trary to Communist propcaganda, tlie gap in
production and living standards between the
Communist stat«s and these nations of the free
world is growing wider.
However, a large majority of the population
of the free world does not yet enjoy the fruits
of modem teclinology. All of us in the eco-
nomically advanced nations have an interest in
assisting the less developed countries to move
ahead economically, socially, and politically.
Our foreign aid programs frequently are cru-
cial in determining whether a nation begins to
move on the road toward self-sustaining
growth. But government actions in the devel-
oping coimtries will not be enough unless they
encourage and are accompanied by private
actions.
Reexamining Private Investment Activities
Private mvestment is the surest and the
quickest way of transferring capital, manage-
rial skills, and technical know-how to these na-
tions. Properly extended and properly re-
ceived, private foreign investment can be the
most effective weapon in the arsenal of economic
development.
I believe that all of us in the more developed
countries need to reexamine both our precon-
ceptions and our efforts in this area. We have
not been doing enough. Sometimes we have
been held back by outmoded cliches and sterile
debates. We must learn more effective ways of
investing in the newly independent countries,
and how to manage these mvestments in ways
appropriate to our time. In our coimtry, orga-
nizations such as the Business Council for In-
ternational Understanding are doing excellent
work toward this end through educational and
training projects, both in the United States and
in other countries.
On the other side of the coin, leaders in the
developing countries must put aside old theories
and fears based upon the limited experience of
earlier times. Increasingly they are doing this.
Increasingly they are recognizing that private
foreign investment and the private sector are
wonderfully efficient instruments for the effec-
tive allocation of a nation's resources and for
the organization of human energies.
This trend was evident at the United Nations
Conference on Trade and Development, which
concluded its work in June of this year.^ One
of its recommendations calls for a series of ac-
tions by both the industrial and the developing
countries to promote private foreign invest-
ment in the developing countries. The con-
ference adopted this recommendation by the
resounding vote of 94 to 1, with 22 abstentions.
And I would emphasize that the need for
private initiative is nowhere greater than in
the field of agriculture. The growing food im-
balances in the poorer comitries of the world
make it imperative that we all work together
to increase their agricultural production, im-
prove the lot of their farmers, and expand their
rural markets. President Joluison emphasized
this last week when he said that he would "pro-
pose steps to use the food and agricultural skills
of the entire West in a joint effort to eliminate
hunger and starvation."^ Private companies
have a key responsibility to apply their experi-
ence, their teclmology, and their organization
to this critical task.
Developments Promising Expanded Private Action
Let me give you some examples of develop-
ments that promise to expand the role of pri-
vate action in economic development.
^ Firsts work is going forward on the Interna-
tional Executive Service Corps. This busmess
initiative, which the United States Government
strongly supports, could become the business
counterpart of the Peace Corps. I can think of
no better way for American business to demon-
strate its support for the private sector in other
countries. And I believe it is significant that a
number of the developing countries have shown
a strong interest in this initiative.
Second, over the past 2 years we have nego-
tiated new investment guaranty agreements
with 12 countries and expanded our agreements
with 15 other countries. It is now possible for
the United States Government to insure private
investors against a variety of political risks in
61 friendly countries and areas. These agree-
' For background and text of the preamble and rec-
ommendationa contained in the Final Act, see Btn.-
LETiN of Aug. 3, 1964, p. 150.
'For text of President Johnson's remarks at the
annual dinner of the Alfred E. Smith Memorial Foun-
dation, Inc., at New York, N.Y., on Oct 14, see White
House press release (New York, N.Y.) dated Oct. 14.
NOVEMBER 9, 1964
651
ments in themselves evidence the interest of
these countries in receiving United States pri-
vate investments. During this year alone AID
[Agency for International Development] has
written contracts under these agreements for
more than $500 million of new United States
private investment — a record sirni for the
program.
Third, a great deal has been done to put more
and better information at the disposal of United
States firms interested in investing in the de-
veloping countries. The Department of Com-
merce has had a continuing program in this
field. AID is strongly collaborating in this
effort. It has recently established a busmess-
men's information center which shows how in-
vestments can be made in connection with spe-
cific AID programs. It is also helping to
finance investment surveys imdertaken by pri-
vate United States firms considering invest-
ments in particular countries. As another
innovation, AID worked up a catalog of invest-
ment opportimities in developing countries
which brings together all available surveys for
the guidance of potential United States
investors.
Pick up any recent issue of the Department
of Commerce's publication International Com-
merce and you will find that interest in these
ventures is not restricted to the American Gov-
ernment or to American private business.
Many of the developing countries are taking
purposeful action to encourage private invest-
ment. And many private business firms in these
nations seek joint ventures or licensing agree-
ments with United States firms.
Fourth, and as another straw in the wind,
two Central American countries took the of-
fensive this year to attract private investment.
They opened offices in New York specifically
for this purpose, and they got results. Other
Latin American countries are now considering
the same move.
Fifth, the continued growth of development
banks and other credit institutions is strength-
ening the private sector in developmg coun-
tries. AID helps in this process by providing
capital and te^lmical assistance. The Interna-
tional Finance Corporation is also doing more
in this field and has recently received authority
to expand its activities. There is a serious
shortage of this type of capital in the develop-
ing countries, particularly in the field of agri-
cultural credit and for industries associated
with the development and expansion of rural
markets. By helping to build up these capital
resources, we strengthen the private sector in
the developing countries and improve the en-
vironment for foreign private investment.
Sixth, there is the unfinished business of the
tax-credit bill which President Johnson rec-
ommended and sent to Congress on March 19,
1964.* Tills measure could greatly increase
U.S. private investment in the developing coim-
tries. I have every hope that it will receive
the urgent attention it deserves in the next
Congress.
Responding to Changing Attitudes
These are among tlie changes I see taking
place, both at home and abroad, in the climate
governing private investment in the developing
coimtries. I believe they call for an effective
response by the business commimities in this
country and elsewhere. One such response has
been provided by the group of American, Cana-
dian, European, and Japanese businessmen who
started the Atlantic Community Development
Group for Latin America. Tliis trail-breaking
organization is just getting underway. Ulti-
mately it could provide the basis for $200 mil-
lion of joint- venture investments in Latin
America.
The stage seems to be set for the resurgence
of private investment as a major instrument
for economic development. I am convinced
tliat attitudes are changing around the world
and that we are all gaining a better mider-
standing of how to work more effectively with
each other.
* For test of the President's foreign aid message, see
Bulletin of Apr. G, 1964, p. 518.
652
DEPARTMENT OF STATE BTJlliETIN
President Meets With Cabinet;
Reviews World Situation
Statement hy President Johnson
White House press release dated October 20
We have just completed a 2-hour Cabinet
meeting, and I will summarize briefly state-
ments made at that meeting.
Smce the significant developments in the
world last week/ responsible officials of your
Government have carefully evaluated their
meaning for our coimtry. Out of our discus-
sions and deliberations, certain conclusions have
been reached for the present :
First, the changes in the Communist world
and in the free world do not at this time indi-
cate sharp or sudden changes in the policies of
the United States.
Second, it is of the utmost importance that
there be continuity and stability in the United
States' policies and purposes during tliis period
of international change.
Third, we can pursue a course of reasonable
and responsible watchfulness. We are able to
do so because we are confident of our strength
militarily, we are confident of our stability eco-
nomically, and we are confident of the all-im-
portant unity of our society on which our
strength stands at home and abroad.
Fourth, we do recognize that it is very im-
portant for the United States to continue to
be prepared for the long pull. Our responsi-
bilities in this regard are clear :
First, we must continue to maintain, to in-
crease, and to strengthen our preparedness. No
one must doubt our capacity for appropriate
response to any challenge presented to free-
dom anywhere in the world.
Second, in actions as well as in words we
must assure our allies and adversaries alike that
we seek only peace in a world of honor and
justice and individual dignity.
Third, we must pursue those policies at home
wliich will continue our domestic growth, our
expansion, and our prosperity without reces-
sion, depression, or inflation. Wliatever the fu-
ture may hold, we can take special satisfaction
' For background, see Bulletin of Nov. 2, 1964, p.
610.
from the strength afforded by the success of
America's economy today.
The picture of the economy in the third
quarter is now nearly complete. We reviewed
it in some detail in the Cabinet today. The
great gains of the first half of the year have
been extended. Compared to the third quarter
a year ago, here are some of the key gains out-
lined at the Cabinet meeting.
Our gross national product is up $40 billion.
The income of consumers, after taxes, is up $138
per capita. Total nonfarm employment is up
1.6 million. Total retail sales are up 7.2 percent.
Business plant and equipment expenditures are
up 11.4 percent. By preliminary estimate, cor-
porate profits after taxes are up 21.7 percent.
"\\niolesale prices are up only one-tenth of 1
percent.
Fourth, considering the demands the future
may impose upon us, it is more important than
ever that in our governmental planning and
programs we be relentless in our war on waste.
I have asked each Cabinet officer to review his
program and policies and see that we eliminate
all waste possible and to report back to me.
Progress must continue to overcome the deficits
of the past and meet the challenges of the
future, but that progress must go hand in hand
with the self-discipline of fiscal prudence.
Fifth, we must continue in every way open to
us to perfect the unity of our people. Divisions
and suspicions among our people will only open
doors for those adversaries who seek to divide
us and to weaken our leadership. There must
be no misunderstanding of America's purpose
and there must be no miscalculation of Amer-
ica's will.
In direct communications to new governments
and in public statements here at home, we have
sought to make clear that the objectives of
United States policy are unchanging. Our first
purpose is peace. We are prepared to defend
peace and freedom and do it promptly against
any act of hostility or aggression anywhere.
We face the future hopefully in the confi-
dence of the strength that we have all built
together. But we face the future with a full
sense of responsibility for the trust that we are
privileged to bear for the cause of humanity and
the cause of freedom everywhere.
KOVEMBER 9, 1964
653
Secretary Rusk Discusses World Developments
on ''issues and Answers"
Following is the transcript of an mterview
with Secretary Rusk mi the American Broad-
castmg Company''s radio and. television program
^'■Issues and Answers" on October 18.
Tlie Armoimcer: Secretary of State Dean
Eusk, here are the issues :
Is Khrushchev's fall from power bad news for
the West?
Do you foresee a siunmit meeting between
President Johnson and the new Soviet leaders?
Will a Red China with nuclear weapons tend
to be more reckless in Asia ?
For the answers to the issues, the Honorable
Dean Eusk, Secretaiy of State. To interview
Secretary Eusk, ABC news correspondent
Baden Langton and ABC State Department
correspondent Jolm Scali.
Mr. Scali: Mr. Secretary, welcome to "Issues
and Answers." This has been a rather hectic
week for you, what with the upheaval in Mos-
cow, the Chinese nuclear explosion, and the
British elections. What is your reaction to this
series of events ?
Secretary Rusk: Well, Mr. Scali, this has
been a week full of imusual interest and import.
We have seen the combination of preordained
events in public life, such as the British election,
with other events which were fully anticipated
although not perhaps on the exact hour, such as
the Soviet space shot at the beginning of the
week and the Chinese nuclear detonation at the
end of the week, along with the change in Mos-
cow, which was not anticipated as to time or
manner, either by Mr. Khrushchev or by the
rest of the world.
Those of us who came to Washington before
Pearl Harbor are reminded once again, of
course, that this has been a great period of
change, this postwar world, and we have lived
through many changes of this sort. But we
have been impressed also with the fact that the
steadying, the unifying, the stabilizing element
in this postwar world has been the strength and
the policy of the United States and the Amer-
ican people. This has given direction to world
events and has shaped the course of the attempt
on the part of so many nations and so many
people to organize a decent world order.
My own general impression is that these are
events that we must look at with the greatest
interest — make preparations for what the future
might hold — but this does not basically change
the intent and the obligation of the United
States to stay on course.
General Omar Bradley, who is a very wise
man, once said many years ago, in the midst of
changes of a similar sort, that the time has come
for us to chart our course by the distant stars
and not by tlie lights of the passing ships.
Well, this is our cue, I think, for this sort of
situation. These are important changes, but the
United States is in business, moving toward the
objectives of the American people in which we
are joined by most common, ordinary people in
most parts of the world.
U.S. Views on Comprehensive Test Ban Treaty
Mr. Larngfon: Mr. Secretary, what is your
reaction to the statement by the new Soviet
leaders calling for an end to all nuclear weap-
ons tests?
Secretary Rush: Well, we ourselves, as you
know, in Geneva and elsewhere proposed that
we have a comprehensive nuclear test ban treaty
that would lead to the elimination of under-
ground testing as well as tests in the atmos-
phere, at sea, and in outer space. A compre-
hensive test ban treaty has been blocked thus
654
DEPARTMENT OF STATE BULLETIN
far by the problem of on-site inspection. We
do not believe that it is consistent with our
security to enter into such commitments unless
■we can be assured that the other parties are
living up to such commitments, and this will
require on-site inspection. Now, I have not
seen any indication that tiie Soviet view on this
particular point has changed, but as far as we
are concerned, we are prepared to pursue that
point. You see, back in 1945 and '6, the United
States moved immediately, after the first nu-
clear explosion, to try to bring these weapons
under control and, indeed, to remove these
weapons from the arsenal of mankind. This
has been an objective of American policy
through all of our postwar administrations.
But we can't do it on a basis of leaving ourselves
at the mercy of those who might sign such
agreements and then violate them, and we have
to have assurance that such agreements would
in fact be effective.
Mr. Scali: Mr. Secretaiy, when you say we
are ready to pursue that point, do you mean you
are going to inquire of the Soviets to find out
whether perhaps they have changed their mind
on this and whether a new round of talks and
a comprehensive test ban would be possible?
Secretary Ru^k.-yVeW, I think if there has
been any change in the Soviet view on this, this
will soon become apparent because this has been
a matter of discussion at the Geneva confer-
ence, which has just recently adjourned, and
undoubtedly will be a subject of discussion at
the forthcoming United Nations General As-
sembly. So this is not a subject which has
died ; this is an active subject, provided effective
safeguards can be arranged.
Now, of course, the Chinese nuclear detona-
tion would mean that the Chinese problem has
to be taken into account on this. The rest of us
are not going to sign an agi'eement eliminating
all nuclear tests underground and otherwise
unless the Chinese come aboard and stop all
testing on their side.
Mr. Scali: Well, Mr. Secretary, isn't the fact
that one of the first statements of the new Soviet
leadership, namely, this call for a total test
ban — couldn't you interpret this as a Moscow
jab at the Chinese Communists, who obviously
have to continue this ?
Too Early To Speculate on Soviet Policy
Secretary Rush: Well, I think it is a little
early to anticipate exactly what might be meant
by such a statement. We have had, as you know,
through the Soviet Ambassador, and from
echoes in other capitals, the general view from
the new Soviet leadership that their policy will
continue, that there are no dramatic changes
anticipated, that they expect to pursue the
policy of peaceful coexistence, that they would
like to see a reduction in international tensions.
But this has to be thought about in tenns of
their standing policy on major questions. We
don't have any way of knowing yet — I think we
will before too long — as to whether there have
been any changes in their interpretation of such
things as peaceful coexistence or in their atti-
tude toward a comprehensive nuclear test ban.
I think it is much too early to speculate.
Mr. Langton : Are you at all alarmed that the
new team in Moscow has renewed the Soviet
demand that we get out of Berlin and make the
Western Sector an internationalized city?
Secretary Rush : Oh, I think that is a part of
their reaffirmation of the standing positions of
the Soviet Union on major foreign policy ques-
tions. I think the new leadership there knows
just as well as we do that there are some very
serious problems about the Berlin and German
question but that as far as our commitment to
West Berlin is concerned, it is complete and
there can be no change in our responsibility for
the security of West Berlin.
Mr. Scali: Mr. Secretary, you have had a few
days in which to analyze and assess the signifi-
cance of the upheaval in Moscow. On balance,
would you say that it is good or bad news for
the West?
Secretari/ Rush: Well, I am not inclined to
draw a judgment on that basis, for several rea-
sons. Mr. IQirushchev was a man of, shall we
say, effervescent personality; he attracted a
great deal of personal attention. But behind
Mr. Ivlirushchev was a collegiate responsibility
for the Soviet Government, a committee, a group
responsibility in the Presidimn. For example,
in the past 7 years Mr. Iflirushchev had been
away from Moscow 2% years, and we knew that
when he was away from Moscow, whether on
NOVEMBER 9, 1964
655
vacation or traveling abroad, the Soviet Gov-
ernment was still in business. The men who
have succeeded him were his own deputies in
the party and in the Government ; so tliat I don't
think we can suppose that the change of a per-
sonality, itself, means far-reaching changes in
policy. And also let me remind you that, al-
though on his 70th birthday Mr. Klorushchev
was pictured as sort of an affable grandfather,
remember, at the age of 68i^ he put missiles in
Cuba and during the Khrushchev period we had
very severe problems with the Soviet Union:
the use of tanks in Hungary, the Berlin crisis on
two or three occasions during that period, the
missile crisis in Cuba.
It is true that also, during that period, there
was a Vienna agreement on Austria and there
was the nuclear test ban treaty. But govern-
ments are in business as governments, represent-
ing the interests of their nations, and I would
suppose that we ought not at tliis point to at-
tach too much dramatic importance to the
change in personality in a system that is as
large and as highly organized as the Soviet
system.
Protecting Vital Interests of the Free World
Mr. Langton: Do you think, then, there is
any reason to believe that the new Soviet leader-
ship will toughen its policy toward the West and
try and get closer to Communist China ?
Secretary Eusk: This is something we will
have to, of course, watch in the months ahead,
but from our point of view we are in the same
position we have been before : If there are those
who wish to find points of agreement, small or
large, that can move us further toward peace,
the United States is not only prepared to try to
work out such agreements but on many occa-
sions we have taken the initiative to find the
possibility of such agreements. But if there are
those who want to create crises and dangers,
then we will have to meet those.
In other words, let's see what happens. We
are vitally concerned in what we believe to be
the vital interests of the United States and the
free world. Now, we are in a world in which
there are 120 governments and regimes, each
generating its own attitude and its own policy,
but the policy of the American people is made
in Washington and by the American people
themselves. We are the ones who decide how
we act in this world situation, and we shall stay
on course. If there are possibilities for agree-
ment, we will seize them — those opportunities.
If there are dangers, we will meet them. And
that is the way any responsible government of a
great power like the United States must proceed.
Mr. Scali: Mr. Secretary, thank you very
much. In just a moment, we will be back with
more issues. {Announcement.) Mr. Secre-
tary, do you subscribe to the school of thought
which I know has existed in the past, namely,
that anybody that came after Klirushchev was
bound to be worse for us ?
Secretary Rusk : Oh, I don't think so. Presi-
dent Johnson will be commenting on the general
implications of tliis change in liis address to the
Nation this evening,^ but again, this is not just
a question of personalities. This is a question
of large powers, great states, with vital interests
as each sees them, trying to find reconciliation of
some, trying to press others.
I think that, again, we have not had a bed of
roses during the period when Mr. Elhrushchev
was in charge of the Soviet Government, and we
undoubtedly will have some very serious prob-
lems with them. The big question is whether
all of us, right around the world, recognize that
the ordinary, common people of our respective
countries have a great stake in trying to find
some way to live in this world without war, and
that means exploring possibilities of agreement,
whether on small tilings or large. And if we
have a crisis over one or another point, we shall
have to deal with it. As President Jolinson has
put it, our guard is up but our hand is out, and
I think that is the basis on which we would
approach any new government in the Soviet
Union.
Mr. Langton: Do you see any one powerful
man emerging from the Soviet hierarchy ?
Secretary Rusk: I think it is much too soon
to tell about that. I know a good many people
who have studied the Soviet Union who think
that one man has to be in a position of ascend-
ancy there. I think we might bear in mind,
' Bulletin of Nov. 2, 1964, p. 610.
656
DEPARTMENT Oi;" STATE BULLETIN
however, the possibility that the collective lead-
ership at the very top, say the half dozen or
a dozen men in the Presidium at the very top,
have worked out a committee responsibility
there, even during the Khrushchev period,
which might continue on for some time into the
future. I have noticed myself, as Secretary of
State, that there have been times when Mr.
Khrushchev has been far from Moscow but yet
we have known that the Soviet Government was
in business, and we know that Mr. [Aleksai N.]
Kosygin was in charge, for example, when Mr.
Khrushchev was away. We know this has not
turned on where a particular personality might
be at a given time, that there is a government
which is in business and doing its job as it sees
it. So I think we just have to wait and see.
Mr. Scali: Do you accept the official explana-
tion by the Soviets that Mr. Ivlirushchev retired
because of age and health, or do you think per-
haps other factors were involved too ?
Secretary Rush: Oh, I think there is a general
impr&ssion that Mr. Khrushchev did not retire
in the sense in which we know it in our own
country. I think the style and manner of his
replacement makes that quite clear. Had he
retired for health or age, I think there would
have been much more of a demonstration for
him, there would have been much more of a
celebration of this occasion, there would not
have been these later attacks on Mr. Khru-
shchev's method of handling the Soviet
Government.
No, I think we can assume, and should as-
sume, that he was required by his colleagues to
leave the government.
Mr. Scali : Do you regard the new Soviet Gov-
ernment as much committed to the 1962 agree-
ment with us to make Laos a genuine neutral
as was Nikita Khrushchev committed to it?
Secretary Rush: Well, there is no question
that the Soviet Government is committed to the
Geneva agreement of 1962 on Laos. There was
a signature to that agreement by the Soviet
Government, and they do not relieve themselves
of those obligations simply by a change of per-
sonality at the top.
Mr. Langton: One of the agreements we have
been discussing seriously with the Soviets is one
which would ban the distribution of nuclear
weapons and materials and know-how to coun-
tries which do not already have the bomb. Do
you still intend to press ahead on that front
with the new leadership ?
Limiting Proliferation of Nuclear Weapons
Secretary Rush: Well, we shoidd like to
make some progress in that regard. Of course,
one of the complicating factors has always been
the known resistance of Peiping to have any-
thing to do with any such agreement. They
refused to sign the nuclear test ban treaty and
were contemptuous of any efforts to limit the
further proliferation of nuclear weapons be-
cause they were working on them themselves
and were determined to try to achieve them.
But on the other hand, even though Peiping
has exploded such a weapon or device, it still
is important that these weapons not be distrib-
uted generally around the world. The capacity
to make them is now in the hands of at least 15
or 20 coimtries. The cost of making them is
continually coming down as tecluiology ad-
vances, and, as has been pointed out many times,
the problems of handling nuclear weapons will
go up geometrically as more countries get them.
So there would still be some point in trying
to work out arrangements for limiting the fur-
ther proliferation of these weapons. This has
been explored by us for the last 2 or 3 years.
Everybody has known that the general, central
idea has been that those who have nuclear weap-
ons would commit themselves not to give them
to other nations and those who don't have them
would agree not to receive them or manufacture
them. We shall continue to work at that in the
Geneva conference and elsewhere, but what the
prospects are now, I could not really say.
Mr. Langton: Do you see any sign that Mos-
cow, now that the Eed Chinese have exploded
their bomb, will reverse their earlier policy of
not giving technical assistance to Eed China?
Secretary Rush: Well, we have had the im-
pression that they have not been giving assist-
ance since about 1959 or 1960. Whether they
should change that policy will depend on the
future relations between Moscow and Peiping.
I myself feel that it is in the veiy nature of
NOVEMBER 9, 1964
657
nuclear weapons that those who have them have
an interest in others not having them and that
those who have them have an interest in others
not having more of them, and if I were a Rus-
sian— just leave aside ideology, leave aside com-
munism and that sort of thing — if I were a Rus-
sian, I would not be very comfortable about the
buildup in China of a large nuclear capability.
And so I should think they would be very cau-
tious about this.
Chinese Nuclear Weapons Development
Mr. Scali: Mr. Secretaiy, do you agree with
Senator Goldwater, who said yesterday that he
believes it will take 25 years for the Chinese to
develop a supply of nuclear weapons, plus the
means to deliver them ?
Secretary Rusk: Well, I am not sure I would
be quite so optimistic in terms of naming a par-
ticular period of years. We do know that the
Chinese have limited capabilities, limited in
terms of producing the necessary fuel for nu-
clear weapons, limited in the industrial plant
and sophistication and the trained manpower
for going into a crash and major program of
nuclear weapons development. But on the
other hand, this is a matter of gi'eat political
significance to Peiping and I think they will
take a good deal out of the livelihood of the
Chinese people to try to go ahead with this
program as they can.
One of the unfortimate things about this
development in Peiping is that their gross
national product has been going down in abso-
lute terms and their population has been grow-
ing very rapidly. In other words, they already
are on a descending slope in terms of the liveli-
hood of the Chinese people. Now, the more
they divert resources into nuclear weapons
programs and military budgets away from the
needs of their rapidly growing population, the
more that population is going to suffer. This
is one of the reasons why we ourselves have
tried so hard to find a way to turn down the
spiraling arms race. It does mean a divergence
of resources away from the unfinished business
of the ordinary people in all of the countries
concerned, and China, I think, would feel this
very specifically.
Mr. Scali: Do you expect the Chinese to con-
duct further tests, and do you have any idea if
and when this might happen ?
Secretary Eusk: Well, I think we can't say
that they won't. I think we have to say that
they might very well. Indeed, from a purely
political point of view, they might suppose if
they conduct one they ought to conduct another
one as soon as possible to get over this impres-
sion that this one is a sort of a sole effort and
they have exhausted their capability. But we
have no direct information that this is likely to
occur in the next few days.
Mr. Langton: Have we through air samples
and other tests been able to determine how big
the explosion was ?
Secretary Rn^h: The President may comment
on that himself, but the general impression that
it was an early device, comparable in general
scale to our own first device, is accurate.
Mr. Scali: Is there any sign that they have
developed any shortcut or achieved any im-
portant breakthroughs in this area ?
Secretary Rusk: We see no evidence of that
at the present time.
3/r. Langton: From what you can see, do you
think it will be the policy now of the Red
Chinese to go ahead and develop a full arsenal
of atomic weapons and grind down the Chinese
population in the process, if they have to ?
Secretary Rusk: 1 think they will imdoubt-
edly try to build up a creditable nuclear weap-
ons arsenal of some sort. This is a very major
undertaking, requiring vast resources in the
tens of millions scale, in terms of dollars, and
how fast they can do that is something we can-
not be sure about. We do know that they have
relatively limited capabilities for throwing the
weight of a sophisticated industrial system in
behind this effort.
Question of Peiping's Prestige in Asia
Mr. Scali: Mr. Secretary, regardless of the
fact that their first nuclear explosion is a crude,
primitive device, when you take with it the fall
from power of Nikita Khrushchev, isn't the
overall effect to increase substantially tlie pres-
tige of Mao Tse-tung throughout Asia and per-
haps tempt them to he a bit more adventurous?
Secretary Rusk: I tliink undoubtedly the nu-
clear detonation and the removal of Mr.
658
DEPARTMENT OF STATE BULLETIN
Khrushchev added to the prestige of Peiping
to a degree and that Peiping will try to make
the most of this.
I do believe that there is another side to this.
Here Peiping now appears in the whole world,
and particularly in the Asian-African world,
as the country which has upset tlie effort on the
part of every other nation practically to end
atmospheric testing, and I think this feeling
that the policy of Peiping has set back the hopes
of mankind significantly is something that will
cut down on their prestige in many places. So
I think in tlie short run we will see botli these
factors at work. I have no doubt that Peiping's
propaganda will try to make the most of this,
but I think it will be resisted in a great many
places.
Mr: Langton: Is it possible now that the Red
Chinese leadership, instead of growing more
reckless as they become more of a nuclear jiower,
will become more cautious when they are
aware of the tremendous power of the nuclear
weapons ?
Secretary Rusk: Well, that is one of the
hopes, because those who have had no direct
experience with the power of these weapons tend
to think of them in rather hypothetical terms.
Now, as they try to proceed witli tlieir program,
and they find out more about what this means,
and they find out what the difference is between
what they have any chance of obtaining for
themselves and the vast scale on which the
United States has organized its nuclear estab-
lishment, I think that elements of caution might
well come into their thinking on this. This
certainly is a hope, and I might even say it
would be an expectation over a period of time.
In the short run, of course, they may feel a
certain stimulus and an uplift, but I think the
facts of life will sooner or later settle in upon
them and induce some caution among them.
Mr. Scali: Mr. Secretary, would you think
that the changes in government in Russia and
in Britain, plus our own general elections, might
be reason enough to delay the convening of the
General Assembly session at the United Nations,
which is due to begin November 10 ?
Secretary Ritsh: Well, we have indicated that
if the general membership felt that it was wise
to postpone it for a brief period — 2 or 3 weeks.
that sort of thing — we would be receptive to
any such idea. I think that is entirely possible.
Mr. Scali: On another area, there has been
continuing speculation, as you probably know,
that the shift in governments both in Britain
and in Russia should be a signal for Mr. John-
son, if he is reelected, to have (a) either a meet-
ing with the Soviet Premier alone, or (b) some
Western summit meetings. How do you go on
this?
Secretary Rusk: I would say that is a pos-
sibility, but there is no specific planning or no
specific contacts among governments on that
subject. I think we still come back to the
basic point that when you have meetings at
that level it is important that there be good
preparation for them and that summit meet-
ings not be held under circumstances that would
increase and exaggerate the differences rather
than try to resolve them.
Mr. Langton: Viet-Nam seems to have
slipped from the news a bit lately. Has there
been any improvement in the political and
military fronts lately?
Secretary Rusk : Well, as you know, there has
been some very active fighting as the South Viet-
namese anned forces have moved very aggres-
sively against certain of the Viet Cong elements,
particularly in the southern part of the country,
but the most important thing that is going on
in South Viet-Nam at the present time is the
effort to build a government for the country as
a whole, consolidating both the civilian and
military leadership.
The New British Government
Mr. Scali: Tliank you, Mr. Secretary. In
just a moment we will be back with more issues
and answers. (AnnotMicement.) Mr. Secre-
tary, a new British Labor government is in
power now, but it has only a four-vote mai'gin
in the House of Commons. Won't this tend to
paralyze the British in foreign policy and make
them a less reliable ally ?
Secretary Rusk: Oh, I think we shouldn't
leap to that conclusion at all. The British Gov-
ernment is going to lead Great Britain in pur-
suit of the interests of Great Britain and the
common interests of the West, and I think that
you will find that that means that we will have
NOVEMBER 9, 1964
659
common interests with them right across the
board on almost all questions. After all, it was
a Labor government that was here when NATO
was formed and when the Marshall Plan was
started and during the first Berlin blockade and
other matters. Indeed, before I came to my
present job, my prmcipal service in government
had been during a period when there was a
Labor government in Great Britain, but Great
Britain pursues a national foreign policy
year in and year out on the whole, and I think
there will be cooperation between the two
parties on the great issues of national policy
as they affect Britain's position in the world.
Mr. Lang ton: In the last few minutes — do
you see any chance of a summit conference be-
tween the President and Mr. Wilson [British
Prime Minister Harold Wilson] ?
Secretary Rusk: I have no doubt that at a
time mutually convenient they will be having
talks with each other, but just when is still to be
discussed.
Mr. Lang ton: Thank you very much. Secre-
tary Rusk, for being our guest on "Issues and
Answers."
Secretary Rush: Thank you.
Mixed-Manned Demonstration Ship Visits Washington
Following are texts of remarks made by Sec-
retary of the Navy Paul 11. Nitze, Secretary of
State Dean Rusk, and Chief of Naval Oper-
ations Admiral David L. McDonald on October
20 at ceremonies aboard the U.S.S. Claude V.
Ricketts when the guided-missile destroyer
visited at Washington. The Ricketts is a dem-
onstration ship based at Norfolk, Va., and
manned by a mixed creio of officers and men
from the Federal Republic of Germany,
Greece, Italy, the Netherlands, Turkey, the
United Kingdom, and the United States.
Secretary Nitze
I am pleased to welcome to the guided-missile
destroyer U.S.S. Claude V. Ricketts the dis-
tinguished ambassadors and ministers from the
NATO nations taking part in the Multilateral
Force Working Group discussions in Paris.^
The United States Navy is proud to provide
' Present at the ceremonies were Count Jean D'Ursel,
Minister of the Embassy of Belgium ; Ileinrieh Knapp-
stein, Ambassador of the Federal Republic of Ger-
many ; Pierre Calogeras, Counselor of the Embassy
of Greece; Sergio Fenoaltea, Ambassador of Italy;
Carl W. A. Schurmann, Ambassador of the Nether-
lands ; Turgut Mencmoncio&lu. Ambassador of Tur-
key ; and U. Stewart, Minister of the British Embassy.
the Ricketts as a vehicle and a host for this
remarkable demonstration of international na-
val cooperation.
When the Ricketts was commissioned 2i/^
years ago, the Navy knew that a fine warship
had joined the fleet — a ship which could be
expected to distinguish herself in the service
of our nation. It could hardly have been an-
ticipated, however, that she would be called
upon to fill the important and unprecedented
role in the life of our nation and our allies
which she has now undertaken.
This ship is engaged in demonstrating that
a modern, complex warship can be successfully
and efficiently manned by seamen from seven
allied nations. Well over 100 officers and men
from the Federal Kepublic of Germany,
Greece, Italy, the Netherlands, Turkey, and the
United Kingdom are already aboard and are
participating fully in the operation of the ship.
Other officers and men from those nations are
in this country for specialized training and will
all be aboard bj' mid-December. "Wlien mixed-
manning of the ship has been completed, there
will bo as many crewmen aboard from the
navies of our allies as there are from our own
Navy.
The purpose of this demonstration is to iso-
660
DEPARTMENT OF STATE BULLETIN
late, in advance, and propose solutions to those
problems of mixed-manning which will doubt-
less arise during the course of the cruise. We
are certain that, by the time this mixed-manning
cruise ends, a stoi'e of experience will have been
accumulated wliich will prove invaluable in the
establishment of the MLF itself.
During recent years, many men have devoted
a great deal of time and attention to the develop-
ment of the multilateral force. Ambassador
[Thomas K.] Finletter and the ambassadors to
NATO of the other nations represented here
today have formed the Working Group in Paris
which has applied itself so diligently to reach-
ing an understanding concerning the details of
the force.
Admiral Claude V. Ricketts, the late Vice
Chief of Naval Operations for whom this ship
is named, was the Navy's most articulate spokes-
man for the multilateral force, and he freely
devoted his great energy and ability to further-
ing its cause. Both as Assistant Secretary of
Defense and as Secretary of the Navy, I have
myself closely followed the progress of the
MLF, for I believe in its validity as a militarily
viable and a politically unifying force.
Secretary [of Defense Robert S.] McNamara
has asked me to say on his behalf that the De-
fense Department believes strongly in this
unique joint U.S.-European venture. He told
the NATO ministerial meeting last December
that we are prepared to join in substituting
MLF sea-based medium-range missiles for
some of the longer range systems now included
in our program. The Joint Chiefs of Staff and
General Lemnitzer [Lyman L. Lemnitzer, Su-
preme Allied Commander Europe] have con-
cluded that the MLF would be a militarily
useful and effective force; and Secretary
McNamara has also made known to United
States congressional leaders his personal in-
terest in and support for this important
program.
Yet there is one man, in particular, in the
Government of the United States without
whose wholehearted support the concept of a
multilateral force could never have advanced to
tliis point. The imaginative leadership of our
Department of State has been essential to the
progress of negotiations connected with the
force. Our Secretary of State has, by devoting
large amounts of his own time and effort to
problems connected with the MLF, provided
that leadership. We are honored to have him
aboard today to join us in marking this signifi-
cant milestone in the development of the MLF.
Gentlemen, the Secretary of State of the
United States, the Honorable Dean Rusk.
Secretary Rusk
Press release 460 dated October 20
Today we are recognizing formally a promis-
ing venture in Alliance military unity.
The object of this venture, as is the object of
NATO itself, is to strengthen peace.
An effective North Atlantic partnership can-
not be achieved all at once, by any single action.
It will be formed over a period of time by a
series of specific programs which strengthen
ties among us all, on both sides of the Atlantic.
Sharing responsibility for the nuclear deter-
rent against war offers an opportunity for com-
mon action in a matter of vital importance to
each member of the alliance. Instead of de-
ploying mediiun-range missiles to separate na-
tionally manned and owned forces, eight nations
have been discussing how they might be placed
under common ownership and manning in a
single force to be available to NATO. Over
time, other weapons systems could be added to
this force, and within its framework, nuclear
consultation among North Atlantic allies could
become more effective.
The force could create a better balance of
missile strength in Europe. And the MLF
members, by virtue of their new role as owners
and managers of nuclear weapons systems, could
have an enhanced position in disai'mament
negotiations, as countries with active and
responsible roles in nuclear deterrence. The
delivery systems would be held under mixed-
manning and ownership, rather than imder
national manning and ownership. This fact
should improve the prospects for nonprolifera-
tion of these awesome weapons.
These are among the reasons why three suc-
cessive American Presidents have supported
this concept. Its bipartisan roots are attested
NOVEMBER 9, 1964
661
by the presence of my predecessor, foiiner Sec-
retary of State [Christian A.] Herter, who first
presented this concept to NATO in December
1960,= by decision of then President Eisen-
hower.
Mixed-manning and ownersliip of weapons
will not automatically assure growth of the
North Atlantic partnership, any more than
pooling of coal and steel production 14 years
ago assured Western European imity. But
they will mark a major step forward and can
help to build a framework for continuing
progress.
President Johnson recently said: ". . . our
Atlantic partnership is coming to a new and to
a much greater time." ^ He spoke of its "re-
markable achievements and unlimited promise."
That promise can be fulfilled by creative actions
which seek to extend the principle of partner-
ship to new fields.
Tliat, the MLF will do.
This mixed-manned ship demonstration was
conceived of personally by the late President
Kennedy to give us experience in this new con-
cept of military integration. It is not only
tangible evidence of our earnest intent to pro-
ceed toward ]\ILF. It will also give us useful
operating practice. This ship's company is liv-
ing proof that NATO ships can be effectively
manned by differing nationalities.
For this we owe much to the great naval
officer for whom this ship is named. I know
from firsthand observation that Admiral Claude
Ricketts played an invaluable part in the crea-
tive thinking which has gone into the MLF
concept.
I congi-atulate the skipper and crew of the
U.S.S. Claude V. Richetts on substantial prog-
ress in demonstrating that effectiveness.
In so doing you are fulfilling the richest tra-
ditions of the maritime nations from which this
ship's crew is drawn — traditions which in some
cases date back to the pre-Christian era. Now
we are embarked on another great age of ex-
^ For background, see Bulletin of Jan. 9, lOCl, p. 39.
" For text of an address made by President Johnson
at Johns Hopkins University on Oct. 1, see White
House press release dated Oct. 1.
ploration, to discover new means of binding
men and nations more closely to each other.
In strengthening what has become the North
Atlantic community, it will be playing a notable
part in the great task of helping to create the
conditions which can make peace possible.
Admiral McDonald
It is a privilege for me to add my remarks to
the expressions of confidence and approval
which you have just heard. Such recognition
bespeaks the high regard our nation holds for
the value of your efforts.
Since my last visit to this ship, I have been
pleased and proud to follow the progress of
your unique mission. Beginning with your
participation in Operation Sail in New York in
July, where your presence symbolized the inter-
national theme of that naval program, your
training and operational activity as a part of
the 2d Fleet has created an outstanding im-
pression— in both the public view and in the
critical eye of the Navy.
To me, in the awareness of the world impor-
tance of your mission, yours is a warm and
heartening example of the ability of free men
to unite in both ideals and individual effort,
regardless of geographic or language back-
ground. Here, I think, is proof that the
strength of a navy is not so much in its ships but
in the people who man those ships. Here is
evidence for all the world that men of common
purpose and professional kinship will find no
barriers to delay their tasks.
Through your efforts the concept which was
greatly fostered by the untiring work of the man
for whom your ship is named. Admiral Claude
Ricketts, is now being demonstrated.
For the future, as you continue your training
operations in the Caribbean and in the Mediter-
ranean, I am confident that this same unity of
purpose and pride in your naval profession will
enable you to achieve a signal success in the
determined progress of free men to make a free
world.
It is for these reasons that I know I voice the
hopes of many countries when I wish for you
G^ute Reise [German], Kalo ta Xidi [Greek],
662
DEPAKTMENT OF STATE BULLETIN
lyi neyahetler dilenm [Turkish], Ooede Reis
[Dutch], Buon Viuggio [Italian], and God
speed.
USIA Foreign Service Officers
To Become Part of FSO Corps
Statement iy President Johnson
White Uouse press release dated October 3
I am pleased to announce an action taken by
the Secretary of State and the Director of the
United States Information Agency which will
do much to provide the United States with a
more flexible and effective Foreign Service.
Under the new arrangement, the vast major-
ity of USIA career Foreign Service ofBcers will
become an integral part of the Foreign Service.
Affected will be almost 900 officers now working
for the Information Agency. The arrange-
ment will :
1. Provide a single pool of carefully selected,
higlily trained talent from which both agencies
may draw to fill key posts.
2. Increase substantially the efficiency and
the flexibility of those personnel available to
represent the United States abroad.
3. Permit a greater exchange of persomiel be-
tween State and USIA, thus insuring that our
officers acquire the wide range of experience and
contacts so vitally necessary to the effective con-
duct of foreign policy.
4. Meet recommendations of the Herter Com-
mittee, the Advisory Commission on Informa-
tion, and various other study groups that USIA
career officers be given the same rights and pre-
requisites and be subjected to the same stringent
judgment of performance as personnel already
in the Foreign Service.
5. Increase greatly the already high level of
cooperation and joint planning between State
and USIA.
In my opinion, this action, which I whole-
heartedly endoi-se, is a major step forward in
our constant efforts to improve the efficiency of
the Foreign Service of the United States — a
Service that is vitally necessary in an era when
the burdens of world leadership are heavy upon
us.
President Meets Witli Consultants
on Foreign Affairs
Statement iy President Johnson
White House press release dated October 21
I had my second meeting this morning with
some of the most distinguished men in this
country — members of my panel of consultants
on foreign affairs.' Many of these men — like
General [Omar] Bradley, Mr. [Allen] Dulles,
Mr. [John J]. McCloy, Mr. [Robert] Lovett,
Mr. [Paul] Hoffman, and Mr. [Dean] Ache-
son — have played great parts in our bipartisan
foreign policy over the last 20 years, and I
value these opportunities to meet and talk with
them frankly.
Part of our business was to discuss the events
abroad which have occurred in the last week,^
but my main purpose was to ask their help in
thinking ahead to the great problems which
this country will have to face after the coming
election, whoever is chosen to go on.
I asked these men to give me their counsel on
thi-ee important matters :
First: Our relations with Communist coun-
tries. We must both defend freedom and
advance the prospects of peace.
Second: The affairs of the great Atlantic
community. We intend to move on to greater
achievement in a partnership which has gained
so much in strength over the last 15 years.
Third: The struggle to limit the spread of
nuclear weapons.
I expressed to the panel my own strong sense
of urgent purpose in all three of these areas,
and I have asked them to continue in working
session with Secretary Rusk, Secretary Mc-
Namara, and others of my senior advisers within
the Government.
I expect to meet again in the weeks ahead
with the members of this panel, and I want to
take this occasion to express my gratitude for
their willingness to serve their country in tliis
way.
' For a statement by President Johnson on Sept. 9
announcing formation of the panel, see Bitlletin of
Sept. 28, 1964, p. 441.
■ For background, see ihid., Nov. 2, 19C4, p. 610.
NOVEMBER 9, 1964
663
Some Lessons of Economic Development Since tlie War
Vy TF. W. Rostow
Counselor and Chairman of the Policy Planning Council ^
It is more than a common courtesy to say
that I am happy to be in Spain. Since some
of your yomiger economists called on me at
my miiversity (the Massachusetts Institute of
Technology) in the 1950's I have been conscious
of a new and serious thrust within this country
to regather momentum and to move on fully
to modernize the economic and social life of
Spain. In coming here in 1959 — where I spent
my last vacation — I was able to observe how
the airplane and the automobile were leveling
the historic barrier represented by the Pyrenees.
One could almost feel, day by day, how Spain
was drawing closer to Europe and the life of
Europe was being enriched by new contacts
with modem Spam.
It was clear in the late 1950's that the life
of this nation, which has contributed so much
to the Atlantic heritage, was entering a new
and exciting phase. Developments in the past
several years have confirmed this fact. Aiid I
am grateful, in these few days among you, to
see a little for myself.
I have come on this occasion primarily to
learn rather than to teach. The subject of eco-
nomic development is scientific in the sense that
nations confront and must solve in the course
of the stages of their development a fairly uni-
form and quite definable sequence of problems.
These we can state and study, arraying the vari-
ous solutions sought at different times and
places. Development economics is, essentially,
a biological science. And it is possible for a
development economist to come to a nation and
' Address made before the Institute of Economic De-
velopment, Madrid, Spain, on Oct. 7 (press release 438).
ask, with a certain minimum background of
information, quite relevant questions. But, ul-
timately, nations, like individuals, are unique.
Therefore, the right answers to those questions
can only be found by the nation itself in terms
of its own culture, history, and institutions and
in terms of its own ambitions.
Wliat I have to say, then, in discussing some
problems of economic development with you,
is not in any sense designed to be prescriptions
for Spanish problems. My observations reflect
an effort to derive from the first generation of
postwar experience with development some gen-
eral lessons for the decade and generation
ahead. Only you can judge if these observa-
tions bear on the Spanish scene and, if so, in
what ways they might apply.
New Perspective on Agricultural Development
My first proposition is that agricultural de-
velopment is vastly more important in mod-
ernizing a society than we used to think.
Development thought in the immediate post-
war years tended to focus around a simple
and quite true proposition ; namely, that pro-
ductivity per man is generally higher in indus-
try than in agriculture. It appeared to follow
that the proper course for economic develop-
ment was concentrated on industrial investment.
Simple arithmetic suggested that every man
transferi'ed from agriculture to industry raised
the average level of productivity. It was some
such hypothesis that led to the emphasis on in-
dustrial development in postwar development
plans.
This tendency was heightened, in some parts
of the world, by an association of agricultural
G64
DEPAETMENT OF STATE BULLETIN
production with a colonial or neocolonial de-
pendence on a single \ailnerable export crop.
We can leave it to historians to judge whether
the development programs that flowed from
this perspective were distorted and whether a
better balance between agricultural and indus-
trial investment should have been sought. But
there is, in retrospect, a certain rough justice
in the pattern followed, because the moderniza-
tion of agriculture does require a prior indus-
trial base; and the developing nations of the
world have now achieved, in many cases, an
initial endowment of industrial skills and the
capacity to organize industrial establishments.
But when nations have acquired a minimum
industrial base — and, of course, Spain has long
since been in that position — the problem of
agriculture must be looked at in a somewhat
different way ; for a modernized agriculture be-
comes a necessity for efficient industrialization
itself. This relation derives from the fact that
agricultural output is not merely a source for
food which, if neglected, can force a nation into
heavy dependence on imports costly in scarce
foreign exchange. Agricultural output is also
an important source of industrial raw mate-
rials. It provides ways to earn foreign ex-
change. And the agricultural population is an
important potential market for industrial
products.
In addition, of course, a failure to modernize
agriculture can produce two results — often at
the same time — neither of which is socially and
politically sound for the life of the nation. It
may yield a rush of rural folk to the cities, in
an effort to share somehow the advantages of
modern life; or it can entrap in the countryside
manpower badly needed for industrial develop-
ment, leaving the nation split between a vital
modern sector and an impoverished archaic tra-
ditional sector. Neither urban slums nor a
socially and psychologically divided nation is
conducive to the well-being of a society.
The modernization of agriculture is, of
course, much more than a matter of bringing
new teclmology to the farmer. Agricultural
production — like industrial production — is a
system which, when it is successful, embraces
technology, credit, marketing arrangements,
and incentives. Contemporary agriculture.
efficiently pursued, is as "modern" an activity
as industry itself. To modernize agriculture
requires that the skills of organization devel-
oped in the modern virban sectors of the society
be brought systematically into play around the
life of a farmer in such a way as to provide
for him a technical, credit, and marketing
environment in which his natural impulse to
better his position can be effective. It requires
also a suitable framework of law and regula-
tions that favor both a rational land tenure
system and a rational use of the land, based on
economic criteria rather than government
control.
Beyond these considerations of national de-
velopment policy, there is an even more basic
reason why, on a world basis, agricultural pro-
duction and policy will come to the center of
the stage : Agricultural output is increasmg, in
Asia and Latin America, at a rate less than the
increase in population. With the passage of
time we could be confronted with minimum
food requirements which can be met neither
from local production nor from the world's
food surpluses. Evidently the world commu-
nity will have to turn promptly and with vigor
to reverse the current trend and to remove the
shadow of massive famine from the path of
the human family.
For these convergent reasons, therefore, I
have no doubt that development thought and
policy in the decade ahead will focus much more
systematically than it has in the past on the
problem of agricultural production and produc-
tivity as well as on the larger social question
of bringing the rural sector of developing so-
cieties more fully and satisfactorily into the
web of modern life.
Problems of Marketing and Distribution
In this connection, I would also judge that we
shall see a new attention paid to problems of
marketing and distribution. A wise observa-
tion was made a decade ago in a paper published
by the OEEC in Paris: 2
'Productivity in the Distributive Trade in Europe —
Wholesale and Retail Aspects, pamphlet published by
the Organization for European Economic Cooperation,
Paris, 3cl reprint, September 1957.
NOVEMBER 9, 1964
748-267 — 64 3
665
Distribution is a relatively neglected field of scien-
tific study and investigation in Europe. In part this
neglect springs from false thinking, that is thinking in
the physiocratic tradition which would consider the
process of distribution of goods and the provision of
services as a more or less sterile activity as contrasted
with the actual production of the goods.
It is true that economists and planners,
leaders in governments and in private sectors,
have tended systematically to neglect the role of
marketing and distribution in economic devel-
opment. They have tended to assume that, if
roads were built and technical assistance made
available in the countryside, somehow, auto-
matically, agricultural production would flow
efficiently to the cities and manufactured prod-
ucts would flow efficiently to the countryside
through normal market mechanisms. They did
not reckon carefully with the ancient, frag-
mented, and deeply rooted marketing arrange-
ments which one statesman recently described as
a Chinese wall barring the cities and the coim-
tryside from each other. I have no doubt that
development strategy in the decade ahead re-
quires a systematic effort to modernize urban-
rural interchange. Old-fashioned marketing
methods, with big markups and multiple inter-
mediaries, yield a whole series of results which
frustrate the development process as a whole.
The prices actually paid to farmers are often
too low, while the prices paid for foodstuffs in
the cities are often too high. More than that,
such barriers reduce the incentive of the farmer
to shift into higher productivity cash crops;
and, by thus reducing the income available in
the countryside, the manufacturer is denied
important potential markets.
Since development is a process which takes
place through time, it is, of course, impossible
to bring riiral areas all at once into a close and
efficient relation with the more modern urban
sectors. On the other hand, marketing arrange-
ments have been in most developing nations an
arbitrary and unnecessary barrier to the mod-
ernization of the countryside and to the devel-
opment of adequate national markets for indus-
trial products.
The experience of the past decade has demon-
strated to us the importance of another lesson,
with implications for more developed and less
developed nations alike ; namely, the need for a
deep understanding within a society about the
rate at which money wages can, appropriately,
be raised. Labor benefits from the develop-
ment process in two ways. First, there is in-
creased demand for labor of higher skill. As
the society modernizes, it yields more jobs of
higher productivity with, quite appropriately,
higher real wage rates. A first and basic bene-
fit for labor flows directly from the changing
structure of the working force. Second, as out-
put per capita in a society increases, it is evi-
dently appropriate that the working force fully
share in this communal achievement. Great
stakes, however, hinge on an imderstanding
within the society and within the working force
as to the rate at which money wages can be
expanded in the common interest. The general
rule is, of course, that the average increase in
wages cannot safely exceed the average increase
in productivity without risking the level of in-
vestment or risking inflation. And the more we
examine the consequences of inflation for devel-
opment, the less attractive an environment it
appears. It is least attractive for the industrial
worker who has less capacity and resources to
hedge against inflation than those with higher
incomes.
I may say, parenthetically, that, counter to a
widespread myth, the development of the econ-
omies of Western Europe and the United States
in the 19th century did not take place in an in-
flationary environment. There were, of course,
certain brief intervals of inflation often asso-
ciated with wars; but progress was mainly
achieved in an environment of relatively stable
money wages and falling prices. I am not
necessarily commending this formula for the
second half of the 20th century; but I believe
that, after extensive experience, there is every
reason for all elements in a society, including
the industrial working force, to help design
policies which avoid inflation.
This, in turn, requires a common understand-
ing among the major sectors of the society and
a confidence that tlie benefits of development
will be equitably shared. The workers, for ex-
ample, must be confident tliat wages will not
be allowed to drag behind. The achievement
of this kind of consensus is, in fact, one of the
fundamental requirements for a successful de-
velopment program in the modern world. It
666
DEPARTMENT OF STATE BULLETIN
is not easy to achieve; but, when achieved, it
constitutes a unifying element in the life of a
nation whose importance ti'anscends even its
beneficial economic consequences.
Educational Systems in Changing Societies
In looking ahead to development policy for
the next decade, I believe also that we shall give
increased importance to problems of education.
Most societies in the world developed educa-
tional and cultural institutions — many of the
highest distinction — before they were indus-
trialized. And they developed patterns of pop-
ular education to fit their cultural values and
requirements of a preindustrial society.
I can say, as an old teacher, that no institu-
tions are more cautious with respect to innova-
tion and more loyal to their long heritage than
educational institutions. And I understand
fully why this is so and should be so. This
caution exists not only because professors retire
at 65 and are quite powerful fellows. It exists
because educational institutions must look far
ahead, dealing as they do with the young, as
well as look far back. They must try to instill
abiding essentials, not adjust hastily to short-
run demands or fancies.
On the other hand, a nation's educational
system is one of the fundamental elements
which determine the path of its development.
Development is a job done by men and women,
not by abstract forces. They must be trained
and motivated to do the jobs a society needs to
have done. And in many parts of the world
one can observe a costly lag between the stand-
ards and purposes of the educational system and
the imperatives of development. Men and
women are trained for tasks for which require-
ments may be decreasing, while inadequate
numbei's are trained for tasks where opportuni-
ties and requirements are rising; and academic
freedom is a powerful force in promoting the
flexibility required to meet these new require-
ments.
One of the few experiences of the United
States in economic development which is worth
attention by other developing societies is the
transformation in our educational system
brought about, a century ago, by the Morrill
Act. That piece of legislation used public land
to finance a large number of agricultural, min-
ing, and engineering schools. They were orig-
inally created to meet the urgent needs of a
rapidly growing society, at an early stage of
development. But, as our society and its re-
quirements changed, so did these institutions.
Many of them have been transformed into mod-
ern universities sharing the oldest scientific and
humanistic traditions ; for example, the Massa-
chusetts Institute of Teclinology, of which I
have the privilege of being a faculty member.
I would certainly not commend to Spain or
to any other country the particular method we
devised through the Morrill Act. I would
merely underline that the commitment of a so-
ciety to rapid development raises important
questions about the appropriate balance of its
educational system, which justify thoughtful
attention. And I would observe that it is
clearly possible for a nation to adjust its edu-
cational system to its changing requirements
without losing the abiding cultural values it
wishes and should wish to retain.
Role of Public and Private Enterprise
In one domain I believe the experience of the
past generation now permits us greater clarity
and consensus than might have been possible
even a relatively short time ago ; namely, in the
contentious field of the relation between public
and private enterprise in the economy.
No one seriously doubts that there is a large
and irreducible function for the government in
the economic development of a nation. There
are essential economic and social overheads re-
quired for a modern society which only govern-
ment enterprise can provide ; for example, edu-
cation, public health, certain types of housing,
transport, et cetera. Only a government can
responsibly manage the internal and external
monetary balance of a nation. Indeed, Adam
Smith recognized the legitimacy of this kind of
role for government in the 18th century. Even
a society as proudly capitalist as the United
States accepted these state functions in the 19th
century.
On the other hand, we have largely freed
ourselves, in the past decade, from the old de-
bate, derived largely from Marxist analysis,
over public ownership and operation of the
N0VE5IBEK 9, 1964
667
means of production. We have seen too much
government ownership and operation to retain
romantic views of its efficacy. The democratic
socialist movement in Europe and elsewhere has
come to accept the fact that private enterprise,
in most fields of production and distribution, is
vastly more efficient than public enterprise and
that the large interests of a society in the compo-
sition of output and price policy in the private
sector can be achieved by indirect means. There
is even a growing awareness of the legitimacy
of the most basic of capitalist propositions;
namely, that competition in the private sector
is one of the most efficient ways of guaranteeing
the public interest in the equity and efficiency
of an economy.
To be sure, each nation must and will strike
its own balance between the role of the public
and private sectors ; and these balances are and
will be different, depending upon many unique
circumstances. There is likely to be a marginal
debate about this or that function. But this
kind of debate is essentially pragmatic rather
than ideological. It is a considerable historical
fact that development economics and politics
outside the Communist world has largely freed
itself from the sterile and essentially mislead-
ing debate which implied the necessity for
choice between a publicly owned or privately
owned economy. We are now in a position to
pose sharply the same question to both public
and private authorities; that is, whether they
are using efficiently a nation's resources in direc-
tions which advance the development process
as a whole. In most cases I have examined in
various parts of the world there are important
potentialities for improvement in both sectors.
Modernization of a Society
Now, finally, if you would, a more general
observation on the process of development.
I can recall vividly in the 1950's learned schol-
ars explaining to us economists that certain
societies, because of their religious, cultural,
social, and family structures, were incapable
of organizing modern industrial societies.
Modern industrialization was sometimes por-
trayed as a unique product of the ethos of
northwestern Europe and the Atlantic, requir-
ing values and human relations which other cul-
tures would reject, ruling themselves, therefore,
effectively out of the world of modern science,
teclmology, and industry. On the other hand,
there were others who proclaimed that in-
dustrialization, with its complex functional
imperatives, linking men and institutions in
new ways, would alter each society which un-
dertook to absorb the fruits of modem science
and technology in ways which would distort or
even destroy its traditional cultural values.
I think we can say with some confidence now
that both propositions are unti-ue. National
cultures are both more flexible and have more
power of survival than was often supposed.
One can observe throughout the world that
many different kmds of societies, with the great-
est possible differences in their history, culture,
and tradition, are demonstrating a capacity to
master and apply the tricks of modern technol-
ogy ; but we can also see that in so doing they
are retaining, and can retain for the future, a
continuity with their most cherished traditions
and values.
These comforting facts stem from the fact
that the modernization of a society, when it
occurs, is and must be the work of a whole na-
tional community. It is not the product of
abstract forces or the work of a single class.
In fact, one of the most inaccurate elements
in Marx's historical analysis was the view that
industrial development was the product of a
class struggle. Taking the single case of British
industrial revolution — and misinterpreting that
case substantially — he projected the vision of
industrialization as the handiwork of a handful
of industrial capitalists who, as they moved for-
ward to exploit profit possibilities, destroyed the
old social and political as well as economic
structure.
It is, of course, true that the making of a
modern industrial society does involve shifts in
the composition and relative power of groups
within a society. The cities, with all they con-
tain in men and institutions, grow in relative
importance; new functions are undertaken by
governments; and a new network of ties within
the nation emerges. On the other hand, the
modernization of a society is not the work of a
single class or group. It requires for its success
that all elements in a society contribute and
share in its benefits — the industrialist and the
668
DEPARTMENT OF STATE BUI.IJITIN
government official, the worker and the farmer,
the teacher and the doctor, and even the
economist.
The modernization of a society is to be imder-
stood, then, as a common human adventure in
which nations seek to apply what modern sci-
ence and technology can afford, in ways which
meet their traditions and their ambitions for
their people. Ultimately it is a process which
permits tliem to emerge with dignity as effective
members of an increasingly interconnected com-
munity on this small planet.
Approached in this way, modernization —
providing challenges, tasks, responsibilities, and
rewards for all — can be a unifying experience,
widening the horizons of men and nations.
Money Flows and Balance-of-Payments Adjustment
hy Robert V. Roosa
Under Secretary of the Treasury for Monetary Affairs ^
Last week, talking in Philadelphia, I had
an opportunity to describe the steps being taken
to unprove further the arrangements for inter-
national financial cooperation — arrangements
that have been expanded rather quickly in the
past few years and for which we now need
some more orderly regularization. Next week,
at a meeting of the National Industrial Con-
ference Board, I will have an opportunity to
elaborate some of the arguments that can be
made for, and against, various proposals that
have been made for adding to international
liquidity. I refer, of course, to suggestions for
introducing in the future some new form of
international reserve asset, to be used along-
side gold and the foreign exchange which has
supplemented gold, most notably the dollar,
the pound sterling, and, for some parts of the
world, the French franc.
Today I propose to leave both cooperation
and the creation of new reserve assets aside and
take a look instead at some aspects of balance-
of-payments adjustment. That means, of
course, the processes through which countries
in external deficit, or external surplus, get
' Address made before the New York Chamber of
Commerce, New York, N.Y., on Oct. 8.
themselves back into equilibrium. And as all
of you know so well, when the overall jiayments
flow of a business, or a nation, can be so man-
aged that current receipts closely balance
current outpayments, the need for an idle bal-
an^ce of working cash, or for drawing on credit,
can be kept to a minimum. That is why any
methods that can be relied upon to limit, and
reverse, a tendency which one country or an-
other develops toward heavy balance-of-pay-
ments deficits, or another develops toward large
surpluses, will also contribute importantly to-
ward reducing the overall need for liquidity
itself.
There is often a dangerous propensity among
us to feel that more money is the adequate
answer to any problem — until, of course, we
find that an excess of money creates inflation
and intensifies imbalance. In large or increas-
ing amounts, liquidity may only mask over for
a time, rather than help to resolve, the real
disparities that develop among countries in the
flow of trade and payments. In international
affairs, as in the home economy, the need is for
ample, but not superfluous, liquidity. And it is
one of the built-in safeguards of a system based
upon credit — credit that rests upon appraisal
and judgment — that a reasonable balance can
be foujid. The mechanism itself tends, with
NOVEMBER 9, 1964
a measure of overall guidance from the financial
authorities of government, to be self-adjusting.
It is fully as important, moreover, to find
ways of reducing balance-of-payments swings
as it is to assure the reserves or credit facilities
needed to finance imbalances over the period
that correction back toward equilibrimn is tak-
ing place. That is why the United States, after
7 lean years of balance-of-payments deficits,
must get back to equilibrium in real terms.
This cannot be accomplished through any mir-
ror trick of monetary magic. We must go
through our own process of adjustment.
I need not repeat today, much as I do wish
to emphasize, the details of our current national
balance-of-payments effort, as these have been
working themselves out through larger exports,
reduced governmental expenditures abroad,
some inflow of capital to offset our large out-
flows, and the interaction of many other forces.
The fusion of private effort and Government
stimulus has, at the gradual but determined
pace which usually characterizes fundamental
changes brought about through the market-
place, produced reassuring results.
We have, it now seems clear, been on the right
path — promoting investment for greater pro-
ductivity as the basis for price and cost stabil-
ity, and evolving an unprecedented change in
the "mix" of fiscal, monetary, and debt manage-
ment policies as the Government's principal
contribution toward this aim. Though the
United States still has the most rugged part of
that path yet to travel in order to reach real
equilibrium, and though we are now at the stage
for intensified rather than relaxed effort, it is
possible to begin to read some lessons from tliis
experience.
Tlie representatives of the various govern-
ments which meet in Working Party III of the
OECD [Organization for Economic Coopera-
tion and Development] have recently been
asked to make a special efl'ort to distill, from
the experience of all these countries since con-
vertibility became general at the end of 1958,
any "rules of the game" that might improve
the processes of balance-of-payments adjust-
ment among nations. Witliout anticipating
the results of that major undertaking, I would
like to suggest some of the conclusions that
seem, at least in my judgment, already war-
ranted as to (1) the conditions that must be
placed upon adjustment aims, (2) the nature of
differences among countries for which any
"rules" must be adapted, and (3) the methods
which can appropriately and effectively be used
to bring about equilibrium.
The days of simple reliance upon monetary
policy, for any and all cases, I am going to dare
to suggest, may possibly be gone forever.
While there will still be many cases of im-
balance for which monetary policy can provide
the principal corrective, and while it will no
doubt play an active role in all, the patterns of
its influence will probably be increasingly
varied; the range of appropriate variations in
interest rates may begin to narrow; and the
complex industrialized economies may find
their own free markets creating so many new
forms of liquidity instriunents that the tradi-
tional methods and criteria of monetary' control
may have to be reexamined in a number of these
countries.
Tliese are not meant as flat assertions, rather
as provocative questions. But perhaps you
may agree they are questions worth asking if I
am able to sum up what I have in mind on the
limiting conditions, the nature, and the methods
of the adjustment processes which countries
would now find sufficiently acceptable to be re-
lied upon.
Limiting Conditions
One way of looking at the limiting conditions
is to list the things which most countries simply
cannot any longer deliberately set out to do.
(a) They cannot intentionally, for more than
a few months at most, attempt to stop their own
domestic growth; few could dare attempt to
turn it backward, though its upward pace can,
of course, be altered.
(b) They carmot deliberately, with the ex-
ception of transitional or structural changes of
comparatively short duration, increase un-
employment^— eitlier of men or of resources.
(c) They cannot induce severe price deflation,
with its imiilications not only for growth and
employment, but also for profits.
670
DEPAKTMENT OF STATE BUIXETIN
(d) They cannot for long pursue policies of
intentional inflation, tlioiiirh this is a somewhat
weaker constraint than that of deflation.
(e) They cannot make frequent large changes
in their exchange rates, once they have reached
the stage of establishing a parity.
Or, to put these conditions positively, most
countries are now committed to support sus-
tained domestic growth, to assure maximum
employment, to avoid depression, to check ac-
celerating booms, and to maintain fixed rates
of exchange (within the narrow margins of
variation permitted by the International Mon-
etary Fund).
Is it to be wondered that, in these circum-
stances, once convertibility was reestablished
among most of the industrialized countries, the
earlier forms of monetary action, which so often
relied upon correction through contraction,
have been succeeded by approaches that have
seemed to some of us, at times, a bit unorthodox ?
The Nature of Significant Differences Among
Countries
As approaches have changed, it has also be-
come increasingly clear that there are wide
differences among countries in their sensitivity
to one mix of policies or another, and that any
new "rules of the game," if countries are going
to be able to live by them, will have to be
adapted to such differences as the following :
(a) Differences in the stage of development,
of manpower and resources ;
(b) Differences in the composition of product,
as between raw materials and manufactures;
(c) Differences in the proportion between ex-
ternal transactions that flow through the bal-
ance of payments and total transactions (that
is, between foreign and domestic transactions) ;
(d) Differences in internal market structure,
in restrictive practices, or in domestic subsidies,
not only for goods but also for various kinds of
capital and credit;
(e) Differences in comparative size, causing
differences in the extent to which a given coun-
try must take into account the effect of its own
actions upon all others ;
(f) Differences in the extent to which a coun-
try's currency, or its credit facilities, or its
capital markets, may be utilized by others, with
a resulting convergence upon reserve currency
countries, for example, of many of the pres-
sures released or exerted by other countries.
This is by no means an exhaustive list. It
does starkly underline, however, the extent to
which modern progress has meant a fanning out
of countries into a number of general types, in
contrast with earlier periods when all countries
were much more nearly the same — and when
perhaps two groupings could account for nearly
all of them. I do not imply that progress has
been synonymous with chaos, but I do ask
whether we should not expect that our methods
of maintaining viable balance among countries
should have become as complex and varied as
are their national economies and the commit-
ments and priorities of their domestic economic
policies.
■Methods of Adjustment
If my questions have any validity, then, they
suggest that the United States has been making
the right kind of an attempt, whether or not we
have found the right combination of answers, in
our own balance-of -payments program over re-
cent years. Trial and error can be expensive,
if not destructive, so that neither we nor other
countries can afford to hop about, changing
the direction or emphasis of the attack on the
U.S. deficit, or upon the German or French
surpluses, for example. Wliat we can do — at
the price of more wear and tear in transatlantic
jet travel than may be sensible or sustainable
for the long run — is to maintain close and con-
tinuous contact with other countries, among
whom the similarities may be somewhat greater
than the differences, and to submit each other to
persistent cross-examination and criticism, par-
ticularly concerning our interactions upon each
other.
It is out of just such exposure that much of
the stimulus for, if not the actual content of, a
considerable part of our own mix of balance-
of-payments policies has been evolved. And in
the process we have, so far as the United States
is concerned, found ourselves developing a se-
ries of measures on the governmental side which
could, quite imderstandably, be critically
NOVEMBER 9, 1964
671
viewed as patchwork improvisation. But there
has thi'ougli it all been a pattern. Our starting
premise has been price and cost stability. Our
primary effort has been to use fiscal and mone-
taiy measures to stimulate the productivity that
will support growth and provide expanding in-
comes and profits within the framework of price
stability. At the same time, we have trimmed
Government spending of dollars overseas, tried
to spur exports, and where necessary put a brake
upon an accelerating outflow of either short-
term funds or long-term capital. Meanwhile,
as the deficits gradually shrank, without im-
posing harsh repercussions on others, we
sought such means of financing the deficits that
remained as would, over the longer rim, also
make some contribution toward more diversified
credit facilities for the international liquidity
needs of the future.
Wliat I think we also learned in this process
(and this explains the title I have selected for
these remarks) is that some of our traditional
conceptions — of reliance solely, or mainly, upon
the "tight money" that depends upon very high
interest rates to overcome a deficit — are not
likely very often to fit the needs of the United
States economy, nor the conditions wliich most
countries impose on the adjustment process,
over the years ahead. And I suspect that some
of the surplus countries are reaching similar
conclusions, from the other side.
For the impact of really tight money, or se-
verely constricted credit, in the United States
over these past several years would have been
of doubtful assistance, to say the least, in
progress toward adjustment in real terms, while
perhaps attracting an inflow of funds that
would have given us the superficial satisfaction
of apparent balance. And conversely, easy
money in the rapidly expanding economies of
Europe would have fanned the inflation which
their rising costs and wages were already caus-
ing, leading at the same time to an outflow of
funds that would have given a superficial im-
pression that their underlying surpluses were
disappearing.
The main reason for these paradoxical devel-
opments is that our traditional views on the
role of monetary policy in correcting interna-
tional imbalance presumed a dillerent sort of
world. Countries with external deficits were
sujDposed to have full employment and rising
prices; countries with external surpluses were
supposed to have underemployment and com-
paratively low prices. For these conditions,
tight money could meet both the foreign and
the domestic needs of the deficit coimtry; easy
money could meet both the external and the
internal needs of the surplus country. I do not
want to say that such circumstances will not re-
cur. Wliat I do say is that we cannot presume
that tliis will be the only pattern.
Within the past year there has been further
sharp evidence of the new circumstances, and
their significance. Take Italy and the Nether-
lands as examples. Without doing justice to
either, I may perhaps generalize that Italy's
situation at the beginning of the year was one
of rising external deficit coupled with severe
inflationary pressure at home — on the surface,
one of the classic cases. Yet Italy was also
undergoing the most extensive structural
readjustment, internally, of any of the lead-
ing industrial comitries. The Government
acted; the private sector responded. There
were some new taxes; there was a firm control
over credit, including limitation on foreign bor-
rowing by Italian banks ; there was no increase
in the discount rate. Following announcement
of a tailored package of short-nm external cred-
its, the situation was turned abruptly around.
Italy is now in surplus. We all hope a lasting
improvement has been accomplished. But to
have relied entirely on further increases in in-
terest rates, in the circumstances, would indeed
have only caused an inflow of funds that might
have defeated — not supported — the overall ef-
fort to restore equilibrium.
In the case of the Netherlands, without re-
viewing all of the relevant storj^, a deficit had
also developed early this year after some period
of surplus on balance. The Government had,
somewhat earlier, deliberately accepted a con-
trolled degree of inflation as part of the correc-
tive needed for restoring a balance in payments,
but that seemed to begin to get out of hand. In-
ternal restraint became necessary. The credit
markets were tightened and interest rates raised
to heights that had not been seen in the Nether-
lands for some years. The result ? An unprece-
672
DEPARTMENT OF STATE BULLETIN
dented volume of funds has been repatriated or
invested in the Netherlands just as its balance
of payments seemed to be moving back into equi-
librium. Tight money has not, at least not un-
mistakably, been the sole and satisfactory
answer.
It is such experience that has persuaded so
many of us that we must try to develop new
methods, or new combinations of old methods,
among most of the more industrialized countries
over these past few years. It is certainly not a
reason to turn toward selective controls of any
kind, for the longer run, and certainly not to
become restrictionist instead of expansionist in
our outlook for freedom of trade and payments.
It is to say, as Chairman Martin [William McC.
Martin, Jr., Chairman of the Board of Gov-
ernors of the Federal Reserve Sj'stem] has said
so often, that none of us can be isolationist in
economic policy. And I would add, as I am sure
he would, none of us can afford to be rigid in the
development of economic policy.
President Johnson Exchanges Letters
With NATO Secretary General Brosio
White House press release dated October 17
Letter From President Johnson
October 1, 1964
Dear Mr. Secretary General : As you leave
the United States,' I want to tell you again how
pleased we were to have you here as our guest
and for the opportunity for extended discus-
sions.
I found our talks on the state of the North
Atlantic Alliance and its future needs and hopes
useful and rewarding. I was particularly
pleased that you were able to join me in visiting
the Strategic Air Command in Omaha for I
think it gave both of us another opportunity
to see how closely the strategic strength of the
United States and the effectiveness of the
Alliance are tied together.
>Mr. Brosio visited the United States Sept. 27-30;
for an exchange of toasts at the White House between
President Johnson and Secretary General Brosio on
Sept. 29 and their remarlis later that day at Offiitt Air
Force Base, Omaha, Nebr., see Bulletin of Oct. 26,
1964, p. 582.
As I have emphasized several times, the
United States is dedicated to NATO. The
American commitment to the Alliance is firm
and real. We in the United States remain
ready, as I know you do, to work with all our
allies to insure that ours is a growing partner-
ship of freedom based on shared responsibility
for the most effective defense of our people and
our freedom.
More personally, I would like you to know
that your visit here gave us a new sense of con-
fidence in your leadership and your dedication
to a most challenging task. You have my as-
surance that this Government will give you the
closest possible cooperation as you carry on at
the helm of the North Atlantic Treaty Orga-
nization.
Good luck, and very best wishes.
Sincerely,
Lyndon B. Johnson
Letter From Secretary General Brosio
October 6, 1964
Dear Mr. Prestoent: Upon my return to
Paris, I would like you to know of my profound
gratitude for the very warm welcome you gave
me and for the highly useful and satisfactory
discussions which took place during my visit to
the United States. As a result, I am even more
deeply convinced than before that there is no
substitute for personal meetings in order to find
a complete understanding.
I am particularly grateful that you, at a time
of hea\'7 personnal engagement in domestic af-
fairs, were able to give me so much of your pre-
cious time. It was a great honor for me to be
your guest at the Wliite House in the midst of
such distinguished company, and in your re-
marks that day I found the most imequivocal
assurances of American dedication not only
to the ideal but also to the concepts of
our Alliance. I need not emphasize the sat-
isfaction with which I listened to your state-
ments.
The visit to the Strategic Air Command
headquarters demonstrated in a most concrete
manner the substance of the American commit-
ment to the defense of our freedom. It is an
impressive experience to see directly the proof
of American concern over the security not only
NOVESIBER 9, 196 4
673
of your country and people, but of the other
NATO members as well. At this point I would
like to pay tribute to the evident superior quali-
ties of the men at Omaha who are entrusted
with these grave responsibilities.
In closing, Mr. President, I want to thank
you both for your boundless hospitality and for
the assurances of support in my tasks, a sup-
port which I consider absolutely essential to
the success of my mission.
With warm regards,
Sincerely,
Manlio Brosio
FSI To Offer Course on "Science,
Technology, and Foreign Affairs"
Press release 469 dated October 23
On January 11, 1965, the School of Foreign
Affairs of the Foreign Service Institute will
inaugurate a pilot seminar on "Science, Tech-
nology, and Foreign Aifairs." This course of
4 weeks' duration to be conducted on an experi-
mental basis is designed to provide a selected
group of Foreign Service and Departmental
officers and participants from other Govern-
ment agencies with an increased understanding
of the interaction between science, technology,
and foreign affairs. It will strive to give par-
ticipants an improved competence in assessing
and dealing with scientific and technological
factors which have a bearing on the formulation
and execution of foreign policy.
The first class will consist of approximately
25 persons, about half to be drawn from the
Department of State and the remainder from
other governmental agencies. Lectures, semi-
nars, and panel discussions will be supple-
mented by field trips, assigned reading, and
individual and group projects involving partic-
ipation by class members. The case-study
method will be used extensively in policy areas
such as foreign economic assistance, national
influence and prestige, arms control, and inter-
national organizations. Lecturers and faculty
participants with a wide variety of backgrounds
and responsibilities will be drawn from Gov-
ernment, universities, and industry.
THE CONGRESS
President Signs Cuban Claims Bill;
Asks Study of Vesting Provision
Statement hy President Johnson
White House press release dated October 17
I have signed into law H.K. 12259. The basic
purpose of this bill is to authorize the Foreign
Claims Settlement Commission to determine the
amount and validity of claims of United States
nationals against the government of Cuba.
The Castro regime has expropriated over
$1 billion worth of property of United States
nationals in total disregard for their rights.
These unlawful seizures violated every standard
by which the nations of the free world conduct
their affairs.
I am confident that the Cuban people will not
always be compelled to suffer under Communist
rule — that one day they will achieve freedom
and democracy. I am also confident that it will
be possible to settle the claims of American
nationals whose property has been wrongfully
taken from them.
This bill will provide for the adjudication of
these claims of American nationals. I have
signed it because of the importance of making
such a permanent record while evidence and
witnesses are still available.
There is, however, another provision of this
bill that requires further study. This provi-
sion vests in the Federal Government ownership
of certain assets of the Cuban government now
held in the United States. These assets are
already blocked and are thus of no further use
to the Cuban government. The proceeds from
the sale of the vested assets will not be available
to American nationals whose properties were
expropriated but will be used to pay for the
expenses of administering the bill.
The United States strongly adheres to the
sanctity of property. The vesting of the prop-
erty of foreign governments or nationals is not
a step that we should undertake without careful
consideration.
674
DEPARTMENT OF STATE BULLETIN
I am, therefore, requesting the Secretary of
State to make a full study to determine the effect
of the vesting provision on American interests
abroad and its implications for the conduct of
our foreign relations.
I am also requesting an opinion by the Attor-
ney General concerning the precise scope and
application of the vesting provision. The lan-
guage of this provision is ambiguous concern-
ing its possible application in various circum-
stances. It is unclear, for example, whether the
provision applies to the property of American
nationals that was unlawfully expropriated by
the Castro regime. Similarly, there is doubt
whether it applies to certain properties in which
other countries have substantial interests.
In the light of these studies, I may find it
necessary to propose amendatory legislation
with regard to the vesting provision. The pres-
ent bill provides for a 6-month waiting period
before the vesting provision becomes operative.
If I conclude that the amendatory legislation
is required, I will propose it early next year so
that it can become effective before the end of the
6-month period.
President Reports on Operation
of Foreign Assistance Program
Follow-ing is the text of a letter from Presi-
dent Johnson transmitfinff to the Congress the
annual report on the foreign assistance program
for fiscal year 1963}
White House press release dated October 3
To the Congress of the United States:
This report demonstrates the remarkable
progress made in strengthening our foreign as-
sistance programs and policies since 1961.
The 1961 Act for International Development
called for major changes in the operation and
emphasis of these historic programs. For more
effective direction, the activities of several agen-
cies were brought together under the Agency for
International Development. New guidelines
were laid down for our aid programs as part of
the bold effort to make the 1960"s the Decade of
Development.
' H. Doc. 357, 88th Cong., 2d sess.
This report for fiscal 1963 shows clearly the
ways in which these new guidelines are being
translated into concrete programs. They pro-
vide the foundations for the lean, tightly-man-
aged aid program we plan for fiscal 1965. I
want to call your attention particularly, there-
fore, to some significant features of this report
which mark our progress during 1963 toward
basic and continuing objectives of our foreign
assistance policy.
Interest-Bearing Loans Replace Grants
As the 1961 Act directed, interest-bearing
loans have replaced grants as the chief mecha-
nism for assistance. Loans represented 57 per-
cent of aid's commitments during fiscal 1963 —
the highest proportion in the history of the for-
eign assistance program.
Aid Is More Selective
Our aid became increasingly selective and
concentrated in fiscal 1963 — a trend that has
since been accelerated. Eighty percent of all
economic assistance funds authorized that year
were for just twenty countries. Sixty percent
of total military assistance went to just nine key
countries.
Aid to Latin America Increases
To increase the impact of the Alliance for
Progress, our aid to Latin America was sharply
stepped up in fiscal 1963, reaching 23 percent of
world-wide commitments, compared with 18
percent the preceding year and an average of
only 2 percent from 1948 to 1960.
New Policies Protect the Dollar
Policies designed to protect our balance of
payments produced major results in fiscal
1963 — a dramatic jump in the purchases of U.S.
products. U.S. producers supplied 78 percent
of all AID-financed commodities during the
year, compared with 63 percent the preceding
year, and less than 50 percent in earlier years.
Increased Participation hy U.S. Industry
Under these policies U.S. business and indus-
try exported $855 million in AID-financed
goods and equipment to Asia, Africa and Latin
America during the year, and American ship-
NOVEMBEK 9, 1964
676
pingj firms were paid about $80 million to carry
AID-financed commodities to their destinations
in the less-developed countries. These dollars
meant more jobs for American workers.
As a result of the same policy, U.S. ships car-
ried more than 80 percent of the total net AID-
financed cargo that year, well in excess of the
60 percent required by the Cargo Preference
Act.
Private Organizations Play a Larger Role
The 1961 Act also called for greater use of
America's vast private resources in the battle
against world poverty. During fiscal 1963,
about one-fourth of all teclmical assistance was
carried out not by AID personnel, but by Amer-
ican colleges, universities, business, professional
firms, and service organizations on contract
with AID.
More than 70 of our colleges and universities
were at work in 40 countries under AID con-
tracts, helping other people make progress in
education, in health, in agriculture, in business
and industry.
During the year, there was a four-fold in-
crease in cooperative programs designed to help
private citizens organize savings and loan in-
stitutions, credit unions, rural electric coopera-
tives, housing and farm credit co-ops. These
programs that go right to the people have
continued to grow. To expand this significant
work, AID relied heavily on contracts with
experienced private groups such as the Credit
Union National Association, the National
League of Insured Savings Associations, the
Cooperative League of America, and the Na-
tional Rural Electric Cooperative Association.
Increased Emfhasis on Private Enterprise
In recognition of the fact that foreign invest-
ors helped build our own nation's economy and
that private capital must do most of the job for
the developing nations, we increased efforts to
encourage American investment in the less-de-
veloped countries. Twelve countries signed in-
vestment guaranty agreements during fiscal
1963, bringing to fifty-five the nimiber of less-
developed countries participating in this suc-
cessful program.
This year, for the first time, AID guaranteed
a substantial amount of new U.S. private dol-
lar investment in development banks organized
to foster private enterprise in the less-developed
countries. U.S. investors applied for guaranty
coverage totaling $32 million for new or addi-
tional investments in such banks.
Significant Savings hy Improved Management
Fiscal 1963 saw the beginning of significant
economies in the management of aid programs
by the Agency for International Development.
Economies made in that year included savings
of more than $900,000 by centralized purchase
of DDT, $1,200,000 during the first six montlis
of the fiscal year alone through tighter travel
policies and regulations, and $34 million saved
through an aggressive program to use
Government-owned excess property in overseas
projects.
EconoTnic Aid to Europe Terminated
Major assistance to Europe under the
Marshall Plan had ended by the mid-fifties, but
a few smaller supplemental programs continued
during the years after. Fiscal 1963 saw the last
economic assistance commitment for Europe:
a single grant of $125,000 authorized to finance
the closing out of prior activities in Yugoslavia.
Finally, let me point out this. It is particu-
larly approjjriate that the same year wliich
marked the termination of the historic and suc-
cessful Marshall Plan for Europe was also the
year in which our efforts in the less-developed
countries began giving immistakable evidence
of success.
With our help, developed countries like Brit-
ain, France and Japan recovered from the war
rapidly and were soon in a position to give
rather than receive assistance. But when we
first extended America's helping hand to the
less-developed countries a decade ago, there was
no such promise of rapid results. "We knew it
was right and necessary to help these poorer
countries to a better life if we were to preserve
our own good life and expand the family of the
free. But only recently could we be certain
that it was practical and only recently have
been able to see with our ej'es the proof of our
earlier vision. In fiscal 1963, for the first time,
it became mimistakably clear that countries like
676
DEPARTMENT OF STATE BULLETIN
Free China were ending their dependence on
AID and that others would follow.
We know today that the progress in control-
ling diseases that have sapped men's strength
to build and to work, the steady expansion of
educational opportunities, the slow but persist-
ent increase in national income and output in
the countries we have aided are leading to fur-
ther successes. We know that if our goal is still
distant, our course is true.
Lyndon B. Johnson
The White House,
October 3, 19G4.
President Signs Bill Extending
Food for Peace Program
Statement hy President Johnson ^
I am very happy to sign this bill. It will
extend for 2 years legislation of enormous im-
portance both to the United States and to the
rest of the free world. It authorizes continua-
tion of the Food for Peace program. This
program makes possible the sharing of our
abundance on a scale unparalleled in tlie his-
tory of the world. It stands as a monument
to the miracle wrought by the American
farmer and to the generosity and practical
wisdom of the American people.
The Food for Peace program authorized by
this law will permit us to use our agricultural
abundance to combat malnutrition and hunger
in the less developed countries and to promote
their economic growth. At the same time, this
program will help us to attain vitally im-
portant economic and foreign policy objectives.
It benefits all of the people, directly or in-
directly.
During the past 10 years we have shipped
$12.2 billion in food to needy people under
Public Law 480. Our food has gone to over
' Made Oct. 8 upon the signing of S. 2687, an act
to extend the Agricultural Trade Development and
Assistance Act of 1954 (White House press release
(Indianapolis, Ind.)).
100 countries. It has relieved the hunger of
many millions of men, women, and children.
Most of us, in this rich land of ours, find
it difficult to imagine what food assistance
really means to the half of the people in the
world who have too little to eat. This kind
of assistance means a noon meal for 40 million
foreign schoolchildren. It means emergency
supplies when catastrophe strikes — drought,
floods, hurricanes, earthquakes. To millions
of people it means the difference between an
inadequate and barely adequate diet.
Our food also promotes economic growth
in the less developed countries. It helps con-
trol inflation. It generates local currencies,
which the United States can grant to less
developed countries to help them build their
industry, their agriculture, their communica-
tions, their schools, and their hospitals.
The United States is also a prime beneficiary
of the program. The Food for Peace program
authorized by P.L. 480 makes constructive use
of the abimdant production of our farmers and
ranchers, thereby increasing their incomes. It
stimulates business for American industry and
creates jobs for American workers. It builds,
through market promotion and economic de-
velopment, the basis for expanded cash sales of
American farm products.
The Food for Peace program furthers our
foreign policy objectives. It helps strengthen
many other countries of the free world — which
is certainly in our mutual interest. It creates
good will for the United States. It gives all
countries a chance to see how remarkably effi-
cient our free agricultural system really is —
especially when compared with the regimented
and depressed farming of the Commimist world.
This bill, however, contains several features
which concern me. Of these, two provisions are
particularly imdesirable. One seeks to give
either the House Committee on Agriculture or
the Senate Committee on Agriculture and For-
estry a veto power over certain proposed dis-
positions of foreign currencies accruing from
sales under P.L. 480. The other seeks to pre-
vent the President from making certain loans
at interest rates below a specified level unless
he has concurrence of an advisory committee
composed in part of Members of Congress
NOVEMBER 9, 1964
677
and in part of his own executive appointees.
In recent years, four Attorney Generals of the
United States have held that legislative provi-
sions vesting in congressional committees the
power to approve or disapprove actions of the
executive branch are unconstitutional. The
Acting Attorney General now advises me that a
provision vesting such power in a committee
made up m part of Members of Congress stands
on no better footing. Both such provisions
represent a clear violation of the constitutional
principle of separation of powers. This is the
position taken in similar cases by President
Eisenhower, President Kennedy, and by myself.
However, I appreciate the desire of the Con-
gi'ess to be informed and to be consulted on the
operation of aU aspects of the P.L. 480 progi-am,
and I am directing that executive officials see
that this is done.
Two other provisions of the bill are disturb-
ing. The first, by preventing any foreign cur-
rency sales to any Communist countries, inhibits
our ability to deal selectively with coimtries that
may demonstrate a tendency toward political
and economic independence from communism.
1 note, however, that the effect of this restric-
tion is somewhat offset by the authorization to
make dollar sales on credit to such comitries.
The second, by requiring that our surplus in-
ventories of extra-long-staple cotton be offered
for sale at world prices, could create serious
problems in our foreign relations. I am direct-
ing that this provision be administered with
great care so as to minimize any hannful effects
on the economies of the free-world coimtries
which "are the principal exporters of this com-
modity.
But the overriding fact is that the bill I have
just approved will pennit the Food for Peace
program to continue iminterrupted for another
2 years. Both in its tangible and intangible
benefits, this vital program deserves and, I be-
lieve, enjoys the overwhelming support of the
American people. It has and will continue to
receive the wliolehearted support of tliis ad-
ministration. If tlie past is any guide to tlie
future, I am confident that Food for I'eaeo will
represent a growing force in our efforts to ad-
vance the cause of freedom throughout the
world.
President Sends Food for Peace
Report to Congress
White House press release dated September 21
President Jolmson on September 21 sent to
the Congress the 20th semiaimual report on
Public Law 480 (Food for Peace) programs.^
The report covers the second half of fiscal year
1964 (January 1-June 30) and marks the com-
pletion of 10 years of U.S. overseas food assist-
ance programs authorized by Public Law 480,
the Agricultural Trade Development and As-
sistance Act of 1954.
In an accompanying memorandum to the re-
port, the President's Special Assistant for Food
for Peace, Kichard W. Eeuter, said: "Our
bountiful farm abmidance represents a potent
weapon for good in the war against liimger,
poverty and disease both at home and abroad."
Tlie Food for Peace progi'am, Renter stated,
"shares our plenty with friendly peoples and
nations of the world in a manner and to a de-
gree wliicli supplements effectively the expand-
ing world trade in agriculture, and helps the
United States maintain its position as the
world's leading exiDorter of food and fibers."
In the fiscal year ended Jmie 30, 1964, the re-
port points out, U.S. farm exports reached a
new record high level of $6.1 billion, as $1 billion
increase over the previous all-time high of the
fiscal year 1963. The increase, the report em-
phasizes, represented commercial sales rather
than P.L. 480 sliipments.
Food for Peace shipments for the last half of
fiscal year 1964 totaled $825 million ; for the full
fiscal year, $1,545 million — 25 percent of total
U.S. agricultural exports. In (he ji receding fis-
cal year, 1963, Food for Peace shipments
amounted to $1,529 million — 30 percent of the
$5.1 billion total agricultural exports for that
year.
In the past 10 years, the report states, $12.3
billion M'ortli of agricultural products liave been
shipped overseas under the Food for Peace pro-
gram— 27 percent of total agricultural exports
for the period.
The President's report to the Congress cited
tlie following highlights of the past 10 yeare
of Food for Peace — "A Decade of Abundanoe" •
' II. Doc. 3G5, 88th Cong., 2d sess.
678
DEPARTMENT OF STATE BtTLLETISr
— 63 percent of the $12.3 billion worth of farm
commodities shipped overseas in tlie past 10
years imder tlie Food for Peace program have
been sold for the local currencies of the recipi-
ent countries — $9.9 billion wortli [including $2.2
billion in ocean transportation] of farm prod-
ucts to 49 coimtries. These sales for local cur-
rencies (under title I of Public Law 480) for
the period January-Jmie 1964 totaled $431 mil-
lion ; for the full fiscal year, $616 million.
— Sales for dollai-s of agricultural commodi-
ties imder the Food for Peace program have
totaled $262.7 million since the enactment of
title IV of Public Law 480 in 1959, which pro-
vides for long-term dollar credit sales as a means
of helping countries to graduate from local cur-
rency to dollar purchasing. Reflecting an
increased emphasis on transition from local
currency to dollar programs, almost half of this
total was recorded in the $117.9 million in title
IV sales agi'eements negotiated in fiscal year
1964. Through June 30, 1964, the United States
has received a total of $4.8 million in principal
and interest i-epayments on credit previously
extended under tins program.
— -"U.S. agricultural abundance," the report
states, "has proved to be one of our most valu-
able resources in international development
programs — to help the countries and the peo-
ple of the free world help themselves to eco-
nomic and social progress." Nearly two-thirds
of the $9.9 billion in local currencias generated
by title I sales in the past 10 years has been
set aside for economic development — $4.9 bil-
lion in loans, $1.8 billion in grants — contribut-
ing to flood control, irrigation, and reforesta-
tion projects; improvement of railroads, high-
ways, bridges, docks, communications ; and con-
struction of electric power facilities, hospitals,
clinics, and schools.
— "Local currencies generated by the sale of
U.S. fai-m products," the report states, "have
reduced by millions the outflow of U.S. dollars
to finance overseas programs in the past 10
years." Since 1954 Public Law 480 sales have
produced more than $936 million in local cur-
rencies for payment of regular U.S. expenses
abroad : for U.S. government buildings ; Amer-
ican-sponsored schools and centers; interna-
tional student exchange; trade fairs; transla-
tion, publication, and distribution of books and
periodicals; educational, medical research, and
vocational rehabilitation; sales for dollars to
U.S. tourists ; fishery research ; military family
housing; scientific translations.
— Food for Peace has provided $208.8 mil-
lion in local currencies derived from Public
Law 480 sales in the past 10 years in private
enterprise loans to 275 U.S. and local business
firms for business development and trade ex-
pansion in 23 countries. In the Januaiy-June
1964 period 26 new loans in the amount of
$29.5 million were approved, making a total
of $64.5 million for 45 private enterprise loans
for the fiscal year.
• — Public Law 480-generated local curren-
cies totalmg $99.4 million have been invested
in the past 10 years in programs designed to
develop new and expanding markets for U.S.
farm products overseas (cotton, soybeans,
poultry, wheat, feed grains, rice, meat, and
milk) through cooperative programs with U.S.
trade and agricultural groups, trade fairs and
trade centers, and marketing research.
—Representing a calculated shift from relief
feeding to food-for-work community develop-
ment programs, an estimated 1.8 million work-
ers in 23 countries are receiving a supple-
mentary wage of food for their contribution
to local self-help projects. Including workers'
families, over 8 million needy persons are
now benefiting from these development pro-
grams. During January-Juno 1964, 18 new
food-for-work projects were authorized, bring-
ing the total for the fiscal year to 30 programs.
— Food for Peace title III donation programs
in the past 10 years have provided $1.6 billion
worth of food to millions of hungry men, wom-
en, and cliildren in 112 coimtries. This food,
identified in the local language as "donated by
the people of the United States," is distributed
by accredited nonprofit voluntary agencies such
as CARE, Church World Service, Catholic Re-
lief Services — as well as intergovernmental or-
ganizations such as UNICEF. In the fiscal year
1964, 225 such programs were approved to fur-
nish food valued at $330 million to 73 million
people in 110 coimtries. Forty million children
are benefiting from school lunch programs made
possible by Food for Peace. In Latin America,
NOVEMBER 9, 1964
679
as a result of an intensive "Operation Xinos"
child-feeding Food for Peace program, the
number of school children panicipating in
school lunch programs has increased in the past
year from 3 million to 10 million.
— In the past decade 63 countries have re-
ceived approximately $940 million worth of
Food for Peace commodities for the relief of the
victims of floods, earthquakes, droughts, and
plagues and for the assistance of refugees.
From Januarv-June 19&4 more than $50 million
Avortli of U.S.-donated food was used for disas-
ter and refugee relief in 11 countries — a total
for the fiscal year of nearly $112 million in 22
countries.
— In the past 10 years $1.7 billion worth of
agricultural commodities have been exported
under the barter provisions of Food for Peace in
exchange for materials, goods, services, and
equipment. Barter contracts negotiated during
the period January-June 196i totaled $5S mil-
lion; for the fiscal year 196i, $170 million.
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
Security Council Recommends
IVIalawi for U.N. IVIembership
Statement by Charles W. Tost '■
It is an honor for the United States to vote
for the admission of Malawi to the United
Nations and a pleasure for us to welcome their
delegation to the Security Council today.
We expect that Malawi will have mucli to
contribute to the work of this organization.
The United Nations has not yet achieved the
goals set for it in its charter. The path to
world peace and the reconciliation of inter-
national differences is not an easy or a short
one. We in the United Nations can offer to
new members therefore only the prospect of
hard work in the service of yet unrealized hopes
and ideals.
But we do not doubt that Malawi will take up
this challenge with the same spirit of wisdom
and moderation wliich has guided it over the
years from colonialism to independent nation-
hood. The experience which Prime Minister
[H. Kamuzu] Banda and our distinguished col-
league with us here today, Ambassador [James
' Made in the U.N'. Sectirity Council on Oct. 9 (U.S./
CN. press release 4448). Mr. Yost is Deputy U.S.
RepresentatiTe In the Security CoonciL
David] Rubadiri, have gained from the long,
patient negotiation of Malawi's independence
might serve us all as an example of moderation
put to the service of strong conviction. Such
qualities, we believe, should always hold an hon-
ored place in the United Nations.
The United States is particularly pleased to
vote for the admission of [Malawi because of
the long history of friendly relations which our
two peoples have enjoyed. American citizens
have been active in educational and religious
affairs in Malawi for many years, and in re-
turn many Malawians have studied and worked
in the United States. More than 60 Malawians
are now studying in American universities,
many of them imder United States Government
auspices. The most notable among past stu-
dents was, of course, the present Prime Minister
of Malawi, Dr. Banda, who received the degree
of Doctor of Medicine from an American
university.
In Malawi itself a number of American Cath-
olic and Protestant missionary organizations
have long been active. In addition, the United
States is happy to note that by the end of 196i
as many as 200 United States Peace Corps vol-
imteers wUl have been welcomed in Malawi,
most of them in teaching and public-health
positions.
680
DEPABT5£ZN'T OF STATE BUIXETIN
The United States looks forward to increas-
ing this friendly exchange between our two
countries. Our long contacts with Malawi
have led us to the belief that this nation will
have much to say and to do in the councils of
peace. We welcome it, therefore, to the United
Nations, both as a friend and as a potential
contributor to the great work which lies before
us.-
United States Submits Memorandum
on U.N. Financial Crisis
Following is a letter from U.S. Represent-
ative Adlai E. Stevenson to U.N. Secretary-
General U Thant, together with the text of a
UjS. memorandum.
U.S./U.N. press release dated October 8
LETTER OF TRANSMITTAL
October 8, 1964
Excellency: I have the honor to enclose a
Memorandum by the United States of America,
dated October 8, 1964, concerning "The United
Nations Financial Crisis." I would appreciate
it if you would arrange to have the Memoran-
dum circulated as an official document of the
General Assembly.
Tlie Memorandum deals with the serious ex-
tent of the financial issue facing the Organiza-
tion, the law on the issue as established by the
International Court of Justice and the General
Assembly, and the implications which a breach
of the Charter on the question would entail.
Accept, Excellency, the renewed assurances
of my highest consideration.
Adlai E. Stevenson
TEXT OF MEMORANDUM, OCTOBER 8
A. The Financial Crisis
The United States is vitally interested in the sur-
vival of the United Nations as an effective institution,
" The Council on Oct. 9 unanimously recommended
that Malawi be admitted to membership in the United
Nations.
and is deeply troubled by the financial crisis facing
the Organization.
The crisis is painfully clear. The UN has a net
deficit of $13i million.
On June 30 the UN had on its books unpaid obliga-
tions owed to governments and other outsiders total-
ing some .$117 million. In addition, it owed to its
own Worliing Capital Fund — which it is supposed to
have on hand in order to keep afloat and solvent
pending the receipt of assessments — $40 million.
Other internal accounts were owed $27 million.
Against this total of $183 million of obligations it had
$49 million in cash resources, or a net deficit of $134
million.
What does this mean?
It means that the UN does not have the money to
pay its debts, and that it would be bankrupt today
if it were not for the forbearance of the Member
Governments to which it owes those debts.
It means that, unless something is done, the United
Nations will have to default on its obligations to
Member Governments which, in good faith and in
reliance on the UN's promises and good faith, have
furnished troops and supplies and services to the UN,
at its request, for the safeguarding of the peace. In
so doing, these Governments incurred substantial addi-
tional and extraordinary expenditures which the UN
agreed to reimburse — an agreement which the Secre-
tary General referred to in his statement at the open-
ing session of the Working Group of 21 on September
9 (Doc. A/AC. 113/29, p. 5) as " the commitment which
the Organization has accepted, in its collective capacity,
towards tho.se of its Members who have furnished the
men and material for its successive peace-keeping
operations."
Which are those Governments?
The UN owes significant amounts to Argentina,
Austria, Brazil, Canada, Denmark, Ethiopia, Ghana,
Indonesia, India, Iran, Ireland, Italy, Liberia, Malay-
sia, Mali, Morocco, Netherlands, Nigeria, Norway,
Pakistan, Philippines, Sierra Leone, Sudan, Sweden,
Tunisia, UAR, the United Kingdom, Yugoslavia, and
the United States. It is to be noted that 19 of these
29 countries are developing countries.
As the Secretary General said at the opening session
of the Working Group of 21 on September 9th (Doc.
A/AC. 113/29, p. 5), these 29 Members "are surely
entitled to expect the United Nations to keep faith
with them." For the United Nations to keep that
faith, it must get the money from its Members, for
it has no other practicable source.
These 29 countries will suffer if the UN is forced,
by the default of the Members which owe it, into de-
faulting to those which it owes; the entire organiza-
tion will suffer if it does not honor its just obligations
and becomes morally bankrupt.
The 29 Members would suffer by a default, but the
real sufferer would be the UN itself. How could an
enfeebled and creditless defaulter maintain peace and
security? Indeed, how could any institution that had
committed such a breach of faith hope long to
NOVEMBER 9, 1964
681
survive as a credit-worthy and effective organization?
As the Secretary General said at the opening session
of the Worliing Group of 21, "failure to take care of
the past may not leave us with much of a future."
What lias caused this crisis?
The crisis has been thrust upon the United Nations
by those Jlembers which have refused to pay the assess-
ments for the Middle East (UNEF) and Congo (ONUC)
operations as voted by the General Assembly In accord-
ance with the Charter.
It is worthwhile recalling exactly how those opera-
tions were authorized and exactly what they were.
B. The Middle East Operation— UNEF
UNEF grew out of the Suez crisis of 1956. The
Security Council found itself unable to act because of
vetoes by certain of the Permanent Members. Yugo-
slavia then, on October 31, 1956, introduced the follow-
ing Resolution (S/.3719) :
"The Security Council,
"Considering that a grave situation has been created
by action undertaken against Egypt,
"Taking into account that the lack of unanimity of
its permanent members at the 749th and 750th meet-
ings of the Security Council has prevented it from
exercising its primary responsibility for the mainte-
nance of International peace and security,
"Decides to call an emergency special session of the
General Assembly, as provided in General Assembly
resolution 377A (V) of 3 November 1950 [Note: The
Uniting for Peace Resolution] in order to make appro-
priate recommendations."
The Yugoslav Resolution was adopted 7-2-2, and the
Soviet Union voted for the Resolution.
Thus the Soviet Union supported the referral by the
Security Council of the crisis to the General Assembly
for "appropriate recommendations" under the very
Uniting for Peace Resolution which the Soviet Union
now tries to discredit.
The "appropriate recommendations" began with
Resolution 997 (ES-I), adopted 64-5-6 (the Soviet
Union voting for), calling for an immediate cease-fire,
and Resolution 998 (ES-I), adopted 57-0-19 (the
Soviet Union abstaining), requesting the Secretary
General to submit
"a plan for the setting up with the consent of the
nations concerned, of an Emergency international
United Nations Force to secure and supervise the
cessation of hostilities in accordance with all the terms
of the aforementioned resolution" (Res. 997) (empha-
sis supplied).
There followed Resolution 999 (ES-I), adopted 59-5-
12 (the Soviet Union voting for), autliorizing the Sec-
retary General to arrange for the implementation of
the cea.se-fire, and Resolution 1000 (ES-I ), which noted
with satisfaction the Secretary General's plan (Docu-
ment A/32S9) for the international force, and provided
as follows :
"1. Establishes a United Nations Command for an
emergency international Force to secure and supervise
the cessation of hostilities in accordance with all the
terms of General Assembly Resolution 997 (ES-I) of
2 November 1956 ;"
The vote on the Resolution was 57-0-19. There was
not a single vote against (the Soviet Union abstained).
Further, the General Assembly, by Resolution 1001
(ES-I), which was adopted 64-0-12. approved the
Secretary General's second report. Document A/3302.
That report specifically indicated (a) that UXEF was
intended only to secure and supervise the cease-fire
and the withdrawal of forces, and not to enforce the
withdrawal, (b) that it was not an enforcement action,
nor was UNEF a force with military objectives, and ■
(c) that no use of force under Chapter VII of the I
Charter was envisaged. The Soviet Union abstained
and did not vote against that resolution either.
Yet now the Soviet Union contends that there was
something illegal about an operation (a) which was
recommended by the General Assembly pursuant to a
referral by the Security Council voted for by the
Soviets themselves, (b) which involved no enforcement
or military action whatsoever but merely the securing
and supervising of a previously agreed to cease-fire,
(c) which was consented to by the government con-
cerned, and (d) which was authorized by the Assembly
without a negative vote by anyone.
Rejecting the Soviet contentions, the International
Court of Justice held (see under heading D 1 below)
that UNEF was properly authorized by the Assembly.
C. The Congo Operation — ONUC
The United Nations operation in the Congo was
authorized by the Security Council on July 13, 1960,
by Resolution S/4387, reading in part as follows :
"The Security Council . . .
"2. Decides to authorize the Secretary-General to
take the necessary steps, in consultation with the Gov-
ernment of the Republic of the Congo, to provide the
Government with such military assistance, as may be
necessary, until, through the efforts of the Congolese
Government with the technical assistance of the United
Nations, the national security forces may be able, in
the opinion of the Government, to meet fully their
tasks ;" j
The Soviet Union voted for the Resolution, which *
clearly gave the Secretary General discretionary au-
thority, in consultation with the Congolese Govern-
ment, to determine the make-up of ONUC.
On July 18, 19G0, the Secretary General presented J
to the Security Council his first report (S/4389) in \
which he recited the steps taken by him to invite Mem-
ber States to furnish forces for ONUC.
On July 22, 1960, the Security Council adopted
Resolution S/4405, reading in part as follows : j
"The Security Council, ... '
"Appreciating the work of the Secretary-General
682
DEPARTMENT OF STATE BULUETIN
and the support so readily and so speedily given to
him by all Member States invited by him to give
assistance, . . .
"3. Commends the Secretary-General for the prompt
action he has taken to carry out Resolution S/-13S7
of the Security Council and his first report ;"
The Soviet Union voted for the resolution.
In the face of this record, it is difficult to understand
the Soviet Union's present claim (Soviet Memorandum
of September 11, 1964, p. 5 ') that it was improper for
the Secretary General to invite States to take part in
ONUC — when he did so pursuant to direct Security
Council authorization and approval, twice voted for
by the Soviet Union itself. There was no "bypassing"
of the Security Council (Soviet Memorandum, p. 5) ;
on the contrary the Secretary General did exactly what
the Council authorized him to do and commended him
for having done !
On August 9, 1960, the Security Council adopted
Resolution S/4426, confirming the authority given to
the Secretary General by the two prior Resolutions and
requesting him to continue to carry out his responsi-
bility. The Soviet Union voted for that Resolution
too.
Furthermore, six months later, the Security Council
on February 20. 1961, adopted Resolution S/4741 which
broadened ONUC's mandate and reaffirmed the three
earlier Security Council Resolutions and an inter-
vening General Assembly Resolution. The Soviet Un-
ion abstained.
Finally, the Security Council on November 24, 1901,
nine months later, adopted Resolution S/5002. which in
effect again reauthorized the OXUC operation, recall-
ing the earlier Security Council Resolutions (and in-
tervening General Assembly Resolutions), and again
broadened ONUC's mandate. The Soviet Union voted
for the Resolution.
Against this record of Security Council authoriza-
tion and repeated reauthorization, it is difficult to un-
derstand how the Soviet Union can now contend that
the operation was not legal and was not validly au-
thorized.
As for the Soviet contention that ONUC was not con-
ducted in accordance with the five Security Council
Resolutions, it is enough to point out that ONUC was
reauthorized by the Security Council's Resolutions of
February 20. 1901, and November 24, 1961 — six months
and fifteen months, respectively, after its inception.
If the Security Council had felt that ONUC was not
being properly conducted in accordance with its Reso-
lutions, it could at any time have changed or given
further explicit instructions. No such instructions
were ever given or even suggested by the Security
Council, and the record of Security Council authoriza-
tion and reauthorization, and reaffirmation, of the
ONUC operation, remains unchallenged.
The International Court of Justice accordingly held
(see under heading D below) that ONUC iias projjerly
authorized.
D. Soviet Legal Arguments
Let us now consider the legal arguments which have
been made by the USSR.
It should first be noted that every one of the argu-
ments put forward by the Soviet Union in its memo-
randum of September 11, 1904, and elsewhere, was
made by the Soviet Representative in his submission
and argument before the International Court of Justice
in the summer of 1962, when the Court considered the
question of whether the UNEF and ONUC assessments
voted by the General Assembly were "expenses of the
Organization" within the meaning of Article 17, para-
graph 2, of the Charter, and therefore binding obliga-
tions of the Members.
Every single one of those arguments was specifically
rejected in the Court's Advisory Opinion of July 20,
1962.- That Opinion was accepted on December 19,
1902, by the General Assembly by the overwhelming
vote of 76-17-8, after the Assembly had decisively
defeated an amendment which would merely have
taken note of the Opinion.
Nevertheless, it may be useful to deal briefly with
the Soviet contentions.
1. The Claimed "Exclusive" Peacekeeping Rights of
the Security Council
The Soviet position is that the Security Council, and
only the Security Council, has any right to take any
action whatsoever with respect to the keeping of the
peace, and that the General Assembly has no rights
whatsoever in that area.
It should first be noted that this argument has noth-
ing to do with ONUC, which was authorized and re-
authorized by the Security Council by repeated Resolu-
tions, four out of five of which were voted for by the
Soviet Union — it abstained on the fourth. Further, It
will be remembered that UNEF was recommended by
the General Assembly pursuant to the Security Coun-
cil's referral of the problem to the General Assembly
for its recommendations, by a resolution which the
Soviet Union voted for.
In any event, there is no basis for the contention
that the Security Council has exclusive rights as to
peacekeeping, and the General Assembly none. Article
24 of the Charter gives the Security Council "primary
responsibility for the maintenance of international
peace and security", but not exclusive authority.
The Charter provisions set forth unequivocally the
authority of the General Assembly in this regard.
Subject only to Article 12, paragraph 1,'
— Article 10 authorizes the General Assembly to dis-
• U.N. doc. A/5729.
' For a Department statement on the Court's opinion,
see Bulletin of Aug. 13. 1962. p. 246.
' That paragraph reads : "While the Security Coun-
cil is exercising in respect of any dispute or situation
the functions assigned to it in the present Charter, the
General Assembly shall not make any recommendation
vplth regard to that dispute or situation unless the
Security Council so requests." [Footnote in original.]
NOVEMBER 9, 19 64
683
cuss and make recommendations on any questions or
matters within the scope of the Charter ;
— Article 11, paragraph 2, authorizes the General
Assembly to discuss and make recommendations with
regard to any questions relating to the maintenance of
international peace and security (except that any
question on which "action" is necessary shall be re-
ferred to the Security Council) ;
— Article 14 authorizes the General Assembly to rec-
ommend measures for the peaceful adjustment of any
situation likely to impair the general welfare or
friendly relations among nations, including situations
resulting from a violation of the purposes and prin-
ciples of the United Nations ; and
— Article 35 prov'ides that any dispute or situation
which might lead to international friction or give rise
to a dispute may be brought to the attention of the
Security Council or of the General Assembly, whose
proceedings are to be subject to Articles 11 and 12.
The word "action" in the exception to Article 11,
paragraph 2, clearly applies only to coercive or en-
forcement action, and therefore not to recommenda-
tions by the General Assembly. So the International
Court of Justice held in its Advisory Opinion of July
20, 1962, saying at pages 164-165 :
"The Court considers that the kind of action referred
to in Article 11, paragraph 2, is coercive or enforce-
ment action. This paragraph, which applies not merely
to general questions relating to peace and security,
but also to specific cases brought before the General
Assembly by a State under Article 35, in its first sen-
tence empowers the General Assembly, by means of
recommendations to States or to the Security Council,
or to both, to organize peacekeeping operations, at the
request, or with the consent, of the States concerned.
This power of the General Assembly is a special power
which in no way derogates from its general powers
under Article 10 or Article 14, except as limited by the
last sentence of Article 11, paragraph 2. This last
sentence says that when 'action' is necessary the Gen-
eral Assembly shall refer the question to the Security
Council. The word 'action' must mean such action as
is solely within the province of the Security Council.
It cannot refer to recommendations which the Security
Council might make, as for instance under Article 38,
because the General Assembly under Article 11 has a
comparable power. The 'action' which is solely within
the province of the Security Council is that which is
indicated by the title of Chapter VII of the Charter,
namely 'Action with respect to threats to the peace,
breaches of the peace, and acts of aggression'. If the
word 'action' in Article 11, paragraph 2, were inter-
preted to mean that the General Assembly could make
recommendations only of a general character affecting
peace and security in the abstract, and not in rela-
tion to specific cases, the paragraph would not have
provided that the General Assembly may make recom-
mendations on questions brought before it by States
or by the Security Council. Accordingly, the last sen-
tence of Article 11, paragraph 2, has no application
where the necessary action is not enforcement action."
The Security Council does have the sole authority,
under Chapter VII, to make binding decisions, obliga-
tory and compulsory on all Members, for coercive or
enforcement action, but that does not mean that the
General Assembly cannot make recommendations (as
opposed to binding decisions) as to the preservation of
the peace.
UNEF, as shown by the Secretary General's report
and on the face of the Resolutions which authorized it
(see . . . above), involved no enforcement action, and
was clearly within the recommendatory power of the
General Assembly as regards a situation turned over
to it by the Security Council by a Resolution voted for
by the Soviet Union.
ONUC lias authorized by the Security Council, and
reauthorized by the Security Council, and no valid ob-
jection can be raised to that authorization.
Few Members of the United Nations would ever agree
that, if the Security Council proves itself unable to
act in the face of an international emergency, the
General Assembly can only stand by, motionless and
powerless to take any step for the preservation of the
peace.
Certainly the record of recent years shows that the
General Assembly can take and has taken appropriate
measures in the interest of international peace, and
that it has done so with the support of the overwhelm-
ing majority of the Members, who believe that such
measures are fully within the letter and the spirit of
the Charter.
2. The Claimed "Exclusive" Fights of the Security
Council as to Peacekeeping Expenses
The Soviet Union also contends that the Security
Council has sole authority to determine the expenses of
a peacekeeping operation, and to assess them on the
membership, and that the General Assembly has no
such right.
We think it unlikely that many Members would ever
agree that the 11 Members of the Security Council
should be able to assess the other 101 Members with-
out any consent or action on their part — surely taxa-
tion without representation.
There is not the slightest justification in the Charter
for any such contention. The only reference in the
Charter to the Organization's expenses is In Article
17, paragraph 2, which provides that "the expenses
of the Organization shall be borne by the Members
as apportioned by the General Assembly." The Se-
curity Council is never mentioned in the Charter in
connection with any UN expenses.
3. The Claimed "Non-Includability" of Peacekeeping
Expenses under Article 17
Article 17 of the Charter reads :
"1. The General Assembly shall consider and ap-
prove the budget of the Organization.
"2. The expenses of the Organization shall be borne
by the Members as apportioned by the General Assem-
bly." (emphasis supplied)
684
DEPARTMENT OF STATE BULIETIN
It is clear that if the expenses of UNEF and ONUC,
as apportioned by the General Assembly, are "expenses
of the Organization", they are obligatoi-y on the Mem-
bers and must be paid.
This is precisely the question which was decided in
the atlirmative by the International Court of Justice in
its Advisory Opinion of July 20, 1962, accepted by the
General Assembly.
Before the Court the Soviet Union contended, as it
does on page 7 of its memorandum of September 11,
1SK>4, that paragraph 2 of Article 17 refers only to
the budgetary expenses of the Organization. The
Court points out, at page 161, that "on its face,
the term 'expenses of the Organization' means all the
expenses and not just certain types of expenses which
might be referred to as 'regular expenses'."
The Soviet memorandum of September 11, 1964,
refers, at page 7, to a proposal made at San Francisco
as to costs of enforcement action. In point of fact,
the proposal was made by South Africa, which sug-
gested an amendment to what is now Article 50 of
the Charter.
Article 50 deals with the right of a State (whether
a UN Member or not) to consult the Security Council
for a solution of any special economic problems aris-
ing from preventive or enforcement measures taken
by the Council ; the Article obviously relates to the
situation where, for example, a Secui'ity Council em-
bargo or boycott against an aggressor has the side
effect of seriously harming the economy of an innocent
third country.
The South Africa amendment was to the effect that
a guilty country against which UN enforcement ac-
tion is taken should be required to pay the costs of
the enforcement action and to make reparation for
losses and damages sustained by the economies of
innocent third countries as a result. Countries jmr-
ticipating in the enforcement action were to submit
their claims for costs and reparation to the Security
Council for approval and for action required to en-
sure recovery. The amendment had nothing whatever
to do with the payment of peacekeeping costs incurred
by the United Nations itself. Furthermore, the amend-
ment was rejected, by Committee III/3 by a vote of
19-2. The two votes in favor of the amendment were
presumably those of South Africa, the proposer, and
Iran, the seconder, which indicates that both the Soviet
Union and the United States voted for rejection. See
Documents on UN Conference on International Orga-
nization, Vol. 3, p. 478, and Vol. 12, pp. 393, 435, 493,
513.
The full text of Committee III/3's report on the
matter (partially quoted in the Soviet memorandum
at p. 7) was as follows (p. 513) :
"Economio Problems of Enforcement Action. In
conclusion, having heard various explanations on the
subject of mutual assistance between states in the
application of the measures determined by the Security
Council and having noted the legitimate concern ex-
pressed by South Africa that the expenses of enforce-
ment action carried out against a guilty state should
fall upon that state, the Committee declared itself
satisfied with the provisions of paragraphs 10 and 11.
[Note: The present Charter Articles 49 and 50, which
contain no provisions as to the treatment of peace-
keeping expenses.]
"A desire moreover was expressed that the Orga-
nization should, in the future, seek to promote a
system aiming at the fairest possible distribution of
expenses incurred as a result of enforcement action.
"Having duly noted the explanations and sugges-
tions given, the Committee unanimously adopted para-
graphs 10 and 11 of the Dumbarton Oaks Proposals
without change." (underscoring in the original) (p.
513).
The Committee's rejection of the South African pro-
posal that aggressors pay, and the Committee's omis-
sion from Articles 49 and 50 of any reference to ex-
penses, left Article 17 as the only Article in the Charter
dealing with expenses. That rejection and omission,
and the Committee's emphasis on the fairest possible
distribution of enforcement expenses, buttress the con-
clusion that such expenses are to be included in Arti-
cle 17, paragraph 2, and apportioned by the General
Assembly, and are to be borne by the Members.
The Soviet memorandum of September 11, 1964, p. 9,
refers to a statement by Goodrich and Hambro in
"Charter of the United Nations, Commentary and Doc-
uments", Boston, 1949, that the expenses referred to in
Article 17, paragraph 2, do not include the cost of
enforcement action. In point of fact the statement
is foimd in a footnote, footnote 90 on p. 184. The
footnote refers to Article 49 (which provides that
Members are obligated to join in affording mutual
assistance in carrying out Chapter VII measures de-
cided upon by the Security Council) and to the dis-
cussion of that Article on p. 295 of the same book.
Both references, and the discussion, make it clear
that the authors have in mind enforcement costs that
are to be borne by Members themselves in carrying
out measures decided upon by the Security Council
under Articles 48 and 49, and not the type of non-
enforcement peacekeeping expenses involved in UNEF
and ONUC, where, by agreement, primary expenses
were to be borne by the States furnishing the forces,
but their extra and additional expenses were to be
reimbursed by the UN.
The Soviet memorandum contends (pp. 9, 10) that
the fact that the General Assembly set up separate
accounts for UNEF and ONUC expenses, apart from
the regular budget, and, in certain cases, apportioned
and assessed those expenses in a manner different
from that used in the case of regular budget expenses,
took UNEF and ONUC expenses out of the category
of "expenses of the Organization" as found in Article
17, paragraph 2.
The International Court of Justice in its Advisory
Opinion of July 20, 1962 decisively rejected this con-
NOVEMBER 9, 1964
685
tentiou. saying with respect to UNEF expenses, after
a full review (pp. 172-175) of the General Assembly
UNEF assessment resolutions from 1956 to date :
"The Court concludes that, from year to year, the
expenses of UXEF have been treated by the General
Assembly as expenses of the Organization within the
meaning of Article 17, paragraph 2, of the Charter."
(p. 175)
As to ONUC expenses, the Court said at pp. 178,
179:
"The conclusion to be drawn from these paragraphs
is that the General Assembly has twice decided that
even though certain expenses are 'extraordinary' and
'essentially different' from those under the 'regular
budget', they are none the less 'expenses of the Orga-
nization' to be apportioned in accordance with the
power granted to the General Assembly by Article 17,
paragraph 2. This conclusion is strengthened by the
concluding clause of paragraph 4 of the two resolutions
just cited which states that the decision therein to use
the scale of assessment already adopted for the regular
budget is made 'pending the establishment of a dif-
ferent scale of assessment to defray the extraordinary
expenses'. The only alternative — and that means the
'different procedure' — contemplated was another scale
of assessment and not some method other than assess-
ment. 'Apportionment' and 'assessment' are terms
which relate only to the General Assembly's authority
under Article 17." (emphasis in the original).
The clear conclusion is that the UNEF and ONUC
expenses are "expenses of the Organization" as re-
ferred to in Article 17, paragraph 2, and, as duly
apportioned by the General Assembly, "shall be borne
by the Members" as obligatory obligations.
4. The Claimed "Non-Applicaiility" of Article 19
The first sentence of Article 19 of the Charter reads
as follows :
"A member of the United Nations which is in arrears
In the payment of its financial contributions to the
Organization shall have no vote in the General As-
sembly if the amount of its arrears equals or exceeds
the amount of the contributions due from it for the
preceding two full years."
The Soviet Memorandum of September 11, 1964,
states (p. 11) that the arrears to which Article 19
refers are arrears in the payment of expenses under
Article 17. This is of course true.
But the Memorandum contends (pp. 10, 11) that
since, according to the Soviet claim, UNEF and ONUC
expenses are solely within the competence of the Secu-
rity Council and are not "expenses of the Organiza-
tion" under Article 17, they cannot be included in the
calculation of arrears under Article 19.
But, as the International Court of Justice has held
and as the General Assembly confirmed (see heading
D ."J above), UNEF and ONUC expenses ore "expenses
of the Organization" under Article 17 and were prop-
erly apportioned under that Article by the General
Assembly. Therefore they are to be included in any
calculation of arrears under Article 19.
The Memorandum refers on p. 11 to an amendment
to the present Article 19 proposed at the San Francisco
Conference by Australia. The amendment in question
would have added to Article 19 a provision that a
Member shall have no vote If it has not carried out its
obligations under what is now Article 43. In other
words, for example, if a Member has agreed with the
Security Council under Article 43 to furnish certain
troops on the Council's call, and later refuses to do so,
it should lose its vote. The proposed amendment would
thus have added to Article 19, which already provided
for loss of vote by a member failing to pay its assess-
ments for UN expenses, a provision for loss of vote by
a member failing to comply with its Article 43 obliga-
tions. Expenses were not involved in the proposed
amendment at all.
In point of fact the proposed amendment was with-
drawn by Australia and was never voted on. The
proposed amendment and its withdrawal have nothing
to do with the fact that Article 19 does deprive a mem-
ber of its vote for falling to pay its assessments for
UN expenses, and the fact that those expenses include,
as the International Court of Justice has held, the
UNEF and ONUC peacekeeping expenses incurred by
the UN itself and duly assessed on all Members by the
General Assembly. Those interested in the proposed
amendment will find the accurate story in the docu-
ments of the UN Conference on International Orga-
nization, Vol. 8, pp. 470 and 476.
So the conclusion is clear that, in the calculation
of arrears under Article 19, UNEF and ONUC assess-
ments are to be included.
E. The Attitude of the UN Membership
From the foregoing it is clear that UNEF and ONUC
arrears are legal and binding obligations of Members.
Furthermore, it is the overwhelming conviction of the
U.N. Membership that they should be paid, and that
all Members have a collective responsibility for the
financing of such operations.
General Assembly Resolution 1854 (XVII), of De-
cember 19, 1962, accepting the International Court of
Justice Advisory Opinion that UNEF and ONUC ex-
penses are "expenses of the Organization" within the
meaning of Article 17, paragraph 2, has already been
cited, together with the vote of 76-17-S in its favor.
By Resolution 1874 (S/IV), adopted on June 27. 1963
by the vote of 92-11-3, the General Assembly aflirmed,
among other principles, the principle that the financing
of peacekeeping operations is the collective responsibil-
ity of all Member States of the United Nations.
On June 27, 1963, by the vote of 79-12-17, the Gen-
eral Assembly adopted Resolution 1877 (S/IV), read-
ing in part as follows :
"Noti>i(i with concern the present financial situation
of the Organization resulting from the non-payment
of a substantial portion of past assessments for the
United Nations Emergency Force Special Account and
686
DEFAUTMENT OF STATE BULLETIN
the ad hoc Account for the United Nations Operation
in the Congo,
'■Believing that it is essential that all assessments
for these AceouHts be paid as soon as possible,
"1. Appeals to Member States which continue to be
in arrears in respect of their assessed contributions
for pa.vnient to the United Nations Emergency Force
Special Account and the ad hoc Account for the United
Nations Operation in the Congo to pay their arrears,
disregarding other factors, as soon as their respective
constitutional and financial arrangements can be proc-
essed, and, pending such arrangements, to make an
announcement of their intention to do so :
"2. Expresses its conviction that Member States
which are in arrears and object on political and juridi-
cal grounds to paying their assessments on these ac-
counts nevertheless will, without prejudice to their
respective positions, make a special effort towards
solving the financial difficulties of the United Nations
by making these payments;"
Despite the overwhelming support for the legal con-
clusion of the International Court of Justice that UNEF
and ONUC expenses are legally binding obligations,
and for the political conclusion that these expenses
should be paid, regardless of legal dissent, to keep the
UN solvent, the United Nations is still faced with re-
fusals by certain States to pay their shares of these
expenses.
F. Article 19
November 10 is the opening of the General Assembly,
and November 10 presents the inevitable and inescap-
able issue of Article 19 unless requisite payments are
made before that opening. Article 19 reads as follows :
"A Member of the United Nations which is in arrears
in the payment of its financial contributions to the
Organization shall have no vote in tlie General Assem-
bly if the amount of its arrears equals or exceeds the
amount of the contributions due from it for the preced-
ing two full years. The General Assembly may,
nevertheless, permit such a Member to vote if it is
satisfied that the failure to pay is due to conditions
beyond the control of the Member."
The first sentence of Article 19 says in simple and
clear terms that a Member subject to its provisions
shall have no vote in the General Assembly. It does
not say that the General Assembly has any discretion
with respect to such a Member ; it does not say that the
General Assembly shall vote as to whether the delin-
quent shall have no vote ; it simply says that the delin-
quent shall have no vote. The first sentence of Article
19 in the French text is even more emphatic : it says
the delinquent Member cannot vote — "ne peut partici-
per au vote".
The second sentence of Article 19 does provide for
a vote ; a delinquent Member whose failure to pay is
due to conditions beyond its control map be permitted
by the General Assembly to vote. But there is no dis-
cretion as to a delinquent Member whose failure to pay
is not due to conditions beyond its control, no discre-
tion as to a Member which refuses to pay.
The United States hopes that those Members about
to be confronted by Article 19 will take the action nec-
essary to avoid the confrontation.
The way to avoid the confrontation is for those sub-
ject to the terms of Article 19 to make the necessary
payments.
The United States does not seek the confrontation^
but if on November 10 the plain and explicit terms of
Article 19 do become applicable, there is no alternative
to its application.
It is not only that Article 19 means what it says —
that the Member shall have no vote — it is that failure
to apply the Article would be a violation of the Charter
which would have far-reaching consequences.
Failure to apply the Article would break faith with
the overwhelming majority of Members who are paying
their peacekeeping assessments — often at great sacri-
fice— as obligations binding under the Charter.
Failure to apply the Article would be a repudiation
of the International Court of Justice and of that rule
of international law whose continued growth is vital
for progress toward peace and disarmament.
Failure to apply the Article would mean the discard-
ing of the only sanction which the United Nations has
in support of its capacity to collect what its Members
owe it.
Failure to apply the Article would undermine the
only mandatory power the General Assembly has — the
power under Article 17 to assess the expenses of the
Organization on the Members.
Failure to apply the Article would tempt Members
to pick and choose, with impunity, from among their
obligations to the United Nations, refusing to pay for
items they dislike even though those items were
authorized by the overwhelming vote of the Members.
Indeed, the Soviet Union has already said that it will
not pay for certain items in the regular budgets. How
could any organization function on such a fiscal
quicksand?
Failure to apply the Article to a great power simply
because it is a great power would undermine the
constitutional integrity of the United Nations, and
could .sharply affect the attitude toward the Organiza-
tion of those who have always been its strongest
supporters.
Failure to apply the Article could seriou.sly jeop-
ardize the support of United Nations operations and
programs, not only for the keeping of the peace but for
economic and social development.
The consequences of not applying Article 19 would
thus be far worse than any conjectured consequences
of applying it.
We believe that it is the desire of most Members of
the United Nations that the situation not arise which
makes Article 19 applicable, and therefore we believe
that it is up to the Membership to see to it that the
confrontation is avoided through the means available
under the Charter for avoiding it — the making of the
necessary payments.
NOVEMBER 9, 1964
687
G. The Fundamental Issue
The United Nations' financial crisis is not an ad-
versary issue between individual Members ; it is an
issue between those who refuse to pay and the Orga-
nization itself, the Organization as a whole. It is an
issue which involves the future capacity of the United
Nations as an effective institution. If the United
Nations cannot collect what is due from its Members,
it cannot pay what it owes; if it cannot collect what
is due from its Members, it will have no means of
effectively carrying on its peacekeeping functions and
its economic and social programs will be jeopardized.
The issue is one which vitally affects all Members
of the United Nations.
The United Nations is of particular importance to
its developing Members. It is not only a free and
open forum where all can defend what they think
and urge what they want, it is an institution which,
in response to the interests of all — both large and
small — can act. But it cannot act unless it has the
funds to support its acts. And if it cannot get from
its Members the funds to support its acts, all would
be the losers. So it is to all countries that the United
Nations must look for a solution.
It has sometimes been said that somehow the
United States should work out with the Soviet Union
a compromise on some of the fundamental issues.
Could the United States — or should it — agree that
Member States which are not members of the Security
Council should have nothing at all to say about peace-
keeping, even in cases in which the Security Council
cannot act? And nothing to say about peacekeeping
expenses or their assessment?
Could the United States — or should it — agree that
Article 19, despite its plain terms, should not be ap-
plied against a great power in support of General
Assembly assessments, simply because it is a great
power?
The United States does not see how, without violat-
ing the Charter, anyone could or should agree to any
of these propositions.
H. United States Efforts to Find Solutions
The sincere and earnest desire of the United States
to find a way out of the United Nations' financial
crisis, and to avoid confrontation under Article 19,
is evidenced by the repeated attempts it has made to
reach common ground.
On March G of this year the United States proposed
to the Soviet Delegation certain Ideas as to the
Initiation, conduct and financing of future peacekeep-
ing operations which it was hoped — without sacrificing
the rights of the General Assembly — would emphasize
the primary role of the Security Council in peace-
keeping and the desirability of according full weight
to the views and positions of the Termanent Members
of the Security Council and other major contributors
to peacekeeping expenses. The United States hope
was that agreement as to future peacekeeping opera-
tions would facilitate the solution of the present
problem.
However, despite frequent Inquiries as to when a
reply to the United States suggestions could be ex-
pected, four months went by without any answer.
Then in early July, the Soviet Union circulated a
memorandum, dated July 10, 1964 (Doc. S/5811),
which merely repeated the familiar Soviet thesis that
only the Security Council has any rights under the
Charter with respect to peacekeeping operations, and
that the General Assembly and the Secretary General
have none. There was no mention of the arrears
problem or of any of the ideas the United States had
suggested for discussion.
On receipt of that memorandum, and later, the
United States Delegation again endeavored to enter
into a discussion with the Soviet Delegation as to the
United States suggestions. Unfortunately the unvary-
ing answer was that the uncompromising Soviet memo-
randum of July 10 was the only reply to be expected.
This sincere effort to enter into a dialogue with the
Soviet Delegation was in the hope that adjustments as
to the arrangements for the initiation and financing of
future peacekeeping operations could make it easier
to reach some solution as to the present and the past.
Unfortunately, there has been no Soviet willingness to
enter into that dialogue.
It is common knowledge that representatives of other
Member States also have sought to initiate discussions
with the Soviet Union on this subject and also have
been met with a reiteration of past Soviet contentions.
Nonetheless, the United States has not given up hope,
and it intends to continue its attempts to work out
new arrangements in the hope that solutions for the
future may make it easier for those in arrears on
UNEP and ONUC assessments to clear up in some
manner these past arrears. The United States Intends
to continue its efforts in the Working Group of 21,
now meeting under the chairmanship of Chief Adebo
of Nigeria, and the United States hopes that all other
Members of the Group will join in this attempt.
Accordingly, the United States has tabled in the
Working Group, as a basis for discussion, a Working
Paper ' which sets forth examples of the kinds of new
arrangements it has in mind as to peacekeeping opera-
tions involving the use of military forces. The follow-
ing elements were mentioned :
"1. All proposals to initiate such peacekeeping op-
erations would be considered first in the Security Coun-
cil. The General Assembly would not authorize or
assume control of such peacekeeping operations unless
the Council had demonstrated that it was unable to
take action. [Tliis would be a self-denying ordinance
on the part of the General Assembly, emphasizing the
primary role of the Security Council.]
"2. The General Assembly would establish a stand-
ing special finance committee. The composition of this
* U.N. doc. A/AC.113/30 ; for text, see Bulletin of
Oct. 5, 19G4, p. 4S8.
688
DEPARTMENT OF STATE BULLETIN
committee should be similar to that of the present
Working Group of Twenty-One .... [The Commit-
tee membership would include the Permanent Members
of the Security Council, who would thus have a posi-
tion more commensurate with their responsibilities
than in the General Assembly.]
"3. In apportioning expenses for such peacekeeping
operations, the General Assembly would act only on a
recommendation from the committee passed by a two-
thirds majority of the committee's membership. [The
Permanent Members of the Security Council would
have an influence greater than in the Assembly, but no
single Member could frustrate, by a veto, action de-
sired by the overwhelming majority.]
"4. In making recommendations, the committee
would consider various alternative methods of financ-
ing, including direct financing by countries involved in
a dispute, voluntary contributions, and assessed con-
tributions. In the event that the Assembly did not
accept a particular recommendation, the committee
would resume consideration of the matter with a view
to recommending an acceptable alternative.
"5. One of the available methods of assessment for
peacekeeping operations involving the use of military
forces would be a special scale of assessments in which,
over a specified amount. States having greater ability
to pay would be allocated higher percentages, and
States having less ability to pay would be allocated
smaller percentages than in the regular scale of as-
sessments." (Doc. A/AC.113/30, 14 September 1964).
The United States hopes that such ideas may lead to
a measure of agreement among Members of the United
Nations as to how these operations are to be started
and paid for in the future. Arrangements of this kind
should go a long way toward giving the Soviet Union
and others in a similar position such assurances for
the future as .should make it easier for them to make
their payments relating to the past.
I. What Other States Have Done
It is recognized that the Soviet Union and certain
other States in arrears for UNEF and ONUC have
strongly-held views against paying these arrears.
However, the example of what other States have done
when in a similar position indicates that loyalty to the
Organization, respect for the International Court of
Justice and the rule of law, and consideration for the
overwhelming views of Members, should be overriding.
On this point, the following was said by Ambassador
Piero Vinci, the Permanent Representative of Italy to
the United Nations, in the Working Group of 21 on
September 23. 1964 :
"But we feel that the correct line is the one that the
Latin American countries have chosen to follow, al-
though they did not consider the International Court's
ruling consistent with the views they had been up-
holding. The working paper submitted by the Delega-
tions of Argentina, Brazil and Mexico and circulated
as document A/AC.113/3 reads as follows: '. . .
also because they wish to maintain the prestige of the
Court, whose objectivity in considering the matters
submitted to it is one of the most solid guarantees of
the maintenance of international peace and .security,
the Latin American countries accepted the advisory
opinion'. In keeping with this well inspired and wise
policy, the distinguished Representative of Mexico in-
formed us, on Thursday, September 17th, that his Gov-
ernment had decided of its own free will — if I under-
stood correctly — by a sovereign act which does not
affect its position of principle, to pay its arrears. We
have here an example and an implicit suggestion that,
I believe, should be carefully weighed and even more
usefully followed by whomever might still have reser-
vations on the subject."
In 1954 the United States itself faced a somewhat
similar predicament in connection with an issue on
which it had very strong convictions. This was a
matter involving awards made by the United Nations
Administrative Tribunal to certain former oflScials of
the United Nations Secretariat. The United States and
a number of other countries objected strongly on legal
grounds to the payment of such awards by the Gen-
eral Assembly. To settle the matter, the General As-
sembly decided to seek an advisory opinion from the
International Court of Justice. The United States
vigorously argued its position before the Court. Never-
theless, the Court handed down an advisory opinion
contrary to that sought by the United States.
Despite its strongly -held views on the issue, the
United States voted with the majority to act in accord-
ance with the opinion of the International Court of
Justice. It was not easy for the United States to
accept the majority view as to the issue, but it saw no
real alternative if the rule of law and the Charter,
as interpreted by the Court, were to be maintained.
The case illustrates the fact that all Members, large
or small, can be called upon and can be expected to
comply with an authoritative legal opinion and the
clearly demonstrated will of the General Assembly that
they should make payments as to which they may
have the strongest legal and political reservations.
In insisting that Member States, including great
powers, follow the examples cited and find some way
to make the necessary payments, all must be prepared
to be flexible with regard to the modalities of pay-
ment. The only vitally essential ingredient in any
solution is that the funds be made available to the
United Nations. Most Member States are undoubtedly
prepared to be flexible in approach to such a solution,
are inclined to be considerate of the interests and
prestige of States which have thus far found difficulty
in payment, and are ready to negotiate on any reason-
able basis consistent with the relevant provisions of
the United Nations Charter and Financial Regulations.
J. Conclusion
The United Nations is faced with a financial and
constitutional crisis which must be solved if the Or-
NOVEMBER 9, 1964
689
ganization is to continue as an effective instrument.
Tlie Charter cannot be ignored. Faith cannot be
brol^en. Commitments must be met. Bills must be
paid.
The problem is one which is of crucial importance to
all Members, and a solution can be found only if all
Members work together in a search for common
ground.
The issue is one between (a) the countries that
have brought on the crisis by their refusals to pay and
(b) the other Members of the Organization. It is now
the task of all those other Members to get the help of
those who have thus far refused to pay in solving the
crisis that faces the entire Organization.
This memorandum has dealt, among other things,
with Article 19 and its applicability. The consequence
of not applying it, if it becomes applicable, would be to
undermine the very integrity and capacity of the UN.
Let all Members cooperate in finding that common
ground which would make possible the receipt by the
United Nations of the funds which would make Article
19 inapplicable and which would enable the Organiza-
tion, thus strengthened, to look forward to continued
effective usefulness and Man's best hope for a peaceful
world.
TREATY INFORMATION
Current Actions
MULTILATERAL
Aviation
Protocol amending articles 48 (a), 49(e), and 61 of the
convention on international civil aviation (TIAS
1.591 ) by providing that sessions of the Assembly of
the International Civil Aviation Organization shall
be held not less than once in 3 years instead of an-
nually. Done at Montreal June 14, 1954. Entered
into force December 12, 1956. TIAS 3756.
Ratifications deposited: Chad, August 28, 1964;
France, September 21, 1964 ; Kenya, May 31, 1964 ;
Somalia, September 30, 1964.
Protocol amending article 50(a) of the convention on
international civil aviation (TIAS 1591) to increase
membership of the council from 21 to 27. Done at
Montreal June 21, 1961. Entered into force July 17,
1962. TIAS 5170.
Ratifications deposited: Chad, August 28, 1964;
Kenya, May 31, 1964 ; Somalia, September 30, 1964.
Protocol relating to amendment to convention on inter-
national civil aviation (to increase number of par-
ties which may request holding an extraordinary
meeting of the Assembly). Adopted at Rome Sep-
tember 15, 1962.'
Ratifications deposited: Au.stria, May 12, 1964 ; Chad,
August 28, 1964 ; Cuba, June 15, 1964 ; Czechoslo-
vakia, June 8, 1964 ; Federal Republic of Germany,
July 27, 1964 ; Jamaica, September 28, 1964 ; Kenya,
July 22, 1964 ; Netherlands, August 26, 1964 ; New
Zealand, August 24, 1904 ; Somalia, September 30,
1964 ; Syrian Arab Republic, May 14, 1964.
Marriage
Convention on consent to marriage, minimum age for
marriage, and registration of marriages. Opened
for signature at the United Nations December 10,
1962.
Ratification deposited: Denmark (with a reserva-
tion), September 8, 1964.
Accession deposited: Norway (with a reservation),
September 10, 1964.
Enters into force: December 9, 1964."
Nortli Atlantic Treaty — Atomic Information
Agreement between the parties to the North Atlantic
treaty for cooperation regarding atomic information.
Done at Paris June 18, 1964.'
Notification received that it is willing to be bound by
terms of the agreement: Norway, October 20, 1964.
Trade
Protocol to the General Agreement on Tariffs and Trade
embodying results of 1960-61 tariff conference. Done
at Geneva July 16, 1962. Entered into force for the
United States December 31, 1962. TIAS 5253.
Signature: Nigeria, August 4, 1964.
BILATERAL
Ecuador
Agreement amending the agricultural commodities
agreement of April 5, 1963 (TIAS 5356). Effected
by exchange of notes at Quito October 6, 1964.
Entered into force October 6, 1964.
India
Agricultural commodities agreement under title I of the
Agricultural Trade Development and Assistance Act
of 19.54, as amended (68 Stat. 454; 7 U.S.C. 1701-
1709) , with exchange of notes. Signed at New Delhi
September 30, 1964. Entered into force September
30, 1964.
Liberia
Agreement supplementing the agreement of September
6 and 12, 1960 (TIAS 4571), so as to provide for
additional investment guaranties authorized by new
U.S. legislation. Effected by exchange of notes at
Monrovia September 26 and 29, 1964. Entered into
force September 29, 1964.
Mauritania
Agreement relating to investment guaranties. Effected
by exchange of notes at Nouakchott May 4 and July
3. 1964. Entered into force July 3, 1964.
' Not in force.
^ Not in force for the United States.
690
DEPARTMENT OF ST.VTE BrLLETIN
INDEX November 9 ^1964. Vol.LI,No.i32i
Agriculture
President Sends Food for Peace Report to Con-
gress 67S
President Signs Bill Extending Food for Peace
Program 677
Atomic Energy. Secretary Rusk Discusses World
Developments on "Issues and Answers" . . . 654
China. Secretary Rusk Discusses World Devel-
opments on "Issues and Answers" .... 654
Claims. President Signs Cuban Claims Bill ;
Asks ."^tudy of Vesting Provision (Johnson) . 674
Congress
President Reports on Operation of Foreign As-
sistance Program (text of message) .... 675
President Sends Food for Peace Report to Con-
gress 678
President Signs Bill Extending Food for Peace
Program 677
President Signs Cuban Claims Bill ; Asks Study
of Vesting Provision (Johnson) 674
Cuba. President Signs Cuban Claims Bill ; Asks
Study of Vesting Provision (Johnson) . . . 674
Department and Foreign Service
FSI To Offer Course on "Science, Technology,
and Foreign Affairs" 674
USIA Foreign Service Officers To Become Part
of FSO Corps (Johnson) 663
Disarmament. Secretary Rusk Discusses World
Developments on "Issues and Answers" . . 654
Economic Affairs
Money Flows and Balance-of-Payments Adjust-
ment (Roosa) 669
Some Lessons of Economic Development Since
the War (Rostow) 664
Toward the Brotherhood of Man (Rusk) . . . 650
Foreign Aid
President Reports on Operation of Foreign As-
sistance Program (text of message) . . . 675
President Sends Food for Peace Report to Con-
gress 678
President Signs Bill Extending Food for Peace
Program 677
Toward the Brotherhood of Man (Rusk) . . 650
Malawi. Security Council Recommends Malawi
for U.N. Membership (Yost) 680
Military Affairs. Mixed-Manned Demonstration
Ship Visits Washington (McDonald, Nitze,
Rusk) 660
North Atlantic Treaty Organization
Mixed-Manned Demonstration Ship Visits Wash-
ington (McDonald, Nitze, Rusk) 660
President Johnson Exchanges Letters With
NATO Secretary General Brosio 673
Presidential Documents
President Johnson Exchanges Letters With
NATO Secretary General Brosio 673
President Meets With Cabinet; Reviews World
Situation 653
President Meets With Consultants on Foreign
Affairs 663
President Reports on Operation of Foreign As-
sistance Program 675
President Signs Bill Extending Food for Peace
Program 677
President Signs Cuban Claims Bill ; Asks Study
of Vesting Provision 674
USIA Foreign Service Officers To Become Part
of FSO Corps 663
Treaty Information. Current Actions . . . 691
U.S.S.R. Secretary Rusk Discusses World De-
velopments on "Issues and Answers" . . . 654
United Kingdom. Secretary Rusk Discusses
World Developments on "Issues and An-
swers" 654
United Nations
Secretary Rusk Discusses World Developments
on "Issues and Answers" 654
Security Council Recommends Malawi for U.N.
Membership (Yost) 680
United States Submits Memorandum on U.N.
Financial Crisis 681
Name Index
Brosio, Manlio 673
Johnson, President . . 653, 663, 673, 674, 675, 677
Langton, Baden 654
McDonald, David L 660
Nitze, Paul H 660
Roosa, Robert V 669
Rostow, W. W 664
Rusk, Secretary 650, 654, 660
Scali, John 654
Stevenson, Adlai E 681
Yost, Charles W QSO
Check List of Department of State
Press Releases: October 19-25
Press releases may be obtained from the OflBce
of News, Department of State, Washington, D.C.,
20520.
Release issued prior to October 19 which ap- 1
pears in this
issue of the Bulletin is No. 438 of
October 7.
No. Date
Subject
457 10/19
Rusk: "Toward the Brotherhood
of Man."
*4.58 10/19
Blair House Fine Arts Committee
reception.
♦459 10/19
U.S. participation in international
conferences.
400 10/20
Rusk: visit of U.S.S. Claude V.
Ricketts.
•461 10/20
Rusk : death of Herbert Hoover.
*462 10/21
Morgan: "United We Stand —
Training for Effective Action in
the U.N.'s Third Decade"
(excerpts).
t463 10/21
G. Griffith Johnson : "Progress and
Prospects in International Eco-
nomic Cooperation."
*464 10/22
Cultural exchange.
t465 10/22
Duke: Yale Club of Washington.
*466 10/22
Cleveland: "The Spirit We Are
Of."
Talbot: "Some Reflections on the
t467 10/23
United States in the United
Nations."
t408 10/23
Ball : "The United Nations Today."
469 10/23
FSI seminar on science, technol-
ogy, and foreign affairs.
*470 10/23
Cultural exchange (Eastern Eu-
rope, Near East).
3d.
*Not print
tHeld for
a later issue of the Bulletin.
Superintendent of Documents
u.s. government printing office
WASHINGTON, D.C.. 20402
OFFICIAL BUSINESS
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U.S. Participation in tlie UN
Report by the President to the Congress for the Year 1963
This is the 18th annual report, covering U.S. participation in the work of the United Nations and
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In his letter of transmittal, President Johnson reaflirms U.S. support of the United Nations as "the
best instrument yet devised to promote the peace of the world and to promote the well-being of niankind."
Further, he calls the 18th General Assembly "a faithful mirror of political reality" as "it dealt in an
intensely practical way with current human events."
The activities of the United Nations for that calendar year and this Government's participation
therein are fully described in this 433-page volume. The appendixes contain U.N. charts and other
organizational information, as well as information on U.N. publications and documentation.
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THE OFFICIAL WEEKLY RECORD OF UNITED STATES FOREIGN POLICY
THE
DEPARTMENT
OF
STATE
BULLETIN
Vol. LI, No. 1325
THE UNITED NATIONS TODAY
by Under Secretary Ball 691^.
SOME REFLECTIONS ON THE UNITED STATES IN THE UNITED NATIONS
hy Assistant Secretary Talbot 700
PROGRESS AND PROSPECTS IN INTERNATIONAL ECONOMIC COOPERATION
by Assistant Secretary Johnson 708
EASTERN EUROPE: A REGION IN FERMENT
by Ambassador George G. McGhee 716
For index see inside back cover
The United Nations Today
by Under Secretary Ball ^
It is sometimes regarded as fashionable — or
at least good politics— to deplore the United
Nations as it operates today and to advocate a
return to the purposes for which it was orig-
inally conceived. Those who yearn in this nos-
talgic manner for an earlier time betray, it
seems to me, an ignorance of history. For they
overlook the one relevant fact — that the United
Nations was never able to function as its found-
ers had originally intended.
The Charter of the United Nations, like other
great organic documents, was the product of a
time of troubles. It was drafted toward the
end of the greatest war in histoi-y. It was
intended as an instrument for preserving the
peace and preventing another war. It con-
templated an arrangement by which the great
powers, allied in World War II, could live
in harmony and, in common agreement, police
the postwar world.
' Address made at an annual United Nations dinner
sponsored by the Mayor's Committee of Greater Kansas
City, at Kansas City, Mo., on Oct. 24 (press release
468 dated Oct. 23).
As we know all too well, the effort to fashion
"one world" with one treaty hardly lasted
through the first General Assembly in 1946.
For it soon became apparent that the Soviet
Union had joined the United Nations in name
only. It had no intention of making common
cause with the West in the interests of a better
world. Instead, it slammed down an Iron Cur-
tain to form a cage around one-third of the
world's people — the whole population of a great
landmass that stretches from Stettin to the Yel-
low Sea.
The United Nations was thus frustrated in
its original objective of serving as a forum
for reconciling differences among the great
powers and for enforcing their agreements on
the rest of the world. It was frustrated for
one reason only — that the ambitions of one
great power denied the basic tenets of the
charter.
This has not, however, destroyed the U.N.'s
usefiilness — indeed, its indispensability. For,
fortunately, the United Nations Charter — like
our own Constitution — proved capable of serv^-
DEPARTMENT OF STATE BULLETIN VOL. LI, NO. U25 PUBLICATION 7775 NOVEMBER 16, 1964
The Department of State Bulletin, a
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fairs, provides the public and Interested
agencies of the Qovemment with Infor-
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Department of State and the Foreign
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press releases on foreign policy, Issned
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and statements and addresses made by
the President and by the Secretary of
State iiud other officers of the Depart-
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ous phases of International affairs and
the functions of the Department. Infor-
mation Is Included concerning treaties
and International agreements to which
the Dnlted States is or may become a
party and treaties of general Inter-
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Publications of the Department, Dnlted
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NOTTS : Contents of this publication ore
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694
DEPARTJIENT OF STATK BULLETINl
ing the changing requirements of an evolving
world. Deflected from its original purpose, it
still made possible quite different, yet enor-
mously effective, endeavors, and it is these en-
deavors that I shall try to describe in the few
minutes that we have together tliis evening.
The Story of the Past 19 Years
The storj' of the past 19 years — that brief
moment of time since the United Nations Char-
ter was signed — is highly concentrated history.
It is the storj' of vast shifts and realinements
in power arrangements throughout the world.
If in this period one-third of the world's popu-
lation has been encircled by the Iron Curtain,
in this same short jDeriod another one-third has
made the eventful passage from colonial status
to some form of national independence. Today
the 50th new nation [Zambia] became inde-
pendent; others are actively in the making.
Such a revolutionary movement on a world-
wide scale has no precedent. The great changes
of the past have taken place only over cen-
turies; the postwar anticolonial revolution has
been compressed in two short decades. The
United Nations has in effect been the overseer
of the process — and the task has not been an easy
one.
The breakup of the European empires meant
the collapse of a longstanding system of world
order. It meant the sudden rupture of old ties,
the sudden emergence of new states, the sudden
liberation of a billion people from colonial de-
pendence. The world has never known a com-
parable political convulsion — so abruptly be-
gun, so quickly concluded.
Even under the best of circumstances one
could well have expected this to be a period of
violent conflict, chaos, and vast bloodletting.
But the collapse of the European empires did
not take place in the best of circumstances —
quite the contrary. It took place in a world
polarized between the great powers of East and
West — where the Sino-Soviet bloc sought to
promote its interests by the vigorous promotion
of chaos.
The Communists tried hard to exploit the tur-
moil implicit in rapid change. They sought fo
capture and divert nationalist revolutions into
Communist revolutions. They did their best to
turn political instability into political collapse,
to rub salt into the wounds of racial antago-
nisms, to fan jealousies between the poor and the
rich, to exploit the inexperience of the new gov-
ernments, to capitalize on economic misery, and
to heighten tensions between new states and
their neighbors wherever they existed.
But they failed. Fifty nations have been
born since the Second World War, and not one
of them has chosen communism as a way of life
or a system of government. The Eussians tried
to subvert most of these nations, and they failed.
The Chinese Communists are now busy in a
couple of dozen of them, and they will fail too.
Leaders of the anticolonial revolutions are
sometimes frightened by Communist power ; but
in the long run most of them have proved
resistant to Communist teclmiques and resentful
of efforts to make them once again dependencies
of a powerful metropolitan nation.
Membership in the United Nations has power-
fully aided the new countries to resist domina-
tion from whatever outside source. It has pro-
vided them with both a sanctuary and a means
of expression. Within the framework of the
charter small comitries can band together for
mutual encouragement and protection — and
they have a ready forum for public complaint if
they are picked on by powerful neighbors. A
good deal of loud talk results, and not all of it is
in polished language or even in good taste. But
rash talk inside the United Nations is better
than rash action outside the United Nations.
And I am reminded at this political season that
our domestic politics are not so free of invective
that we should be unduly sanctimonious about
harsh polemics at the international level. We
should not, in other words, be put off by the fact
that representatives of the new nations are
sometimes given to irrelevant talk. Neither we
nor they should permit it to obscure the relevant
business that every new state has to tackle as it
enters the age of engineering and economics.
In fact, instead of being irked by the occa-
sional exuberance of some of the representatives
of new nations in the General Assembly, we
should be eternally grateful to the U.N. that the
complex business of transforming half a hun-
dred new states from dependence to sovereignty
has, for the most part, been accompanied by
speeches rather than by shooting. This is, I
NOVEMBER 16, 1964
695
think, one of the strikmg achievements of our
time.
U.N. a School of Political Responsibility
In trying to understand the actions of the new
nations we should realize that in their eyes the
U.N. has a very special meaning. The immedi-
ate and natural ambition of every new nation is
to establish its national identity. Membership
in the United Nations has served this purpose;
it has become the badge of independence, the
credentials of sovereignty, the symbol of nation-
hood, and the passport to the 20th century.
Wlien the delegation of a new nation takes its
place in the grand hall of the General Assembly,
that nation has arrived ; it can look the world in
the eye and speak its piece. And even if that
piece may be discordant to our ears, the fact that
it can be spoken has helped to stabilize the post-
war world.
Yet the U.N. is more than a place for letting
oif steam ; it is also a school of political responsi-
bility. While some of its members may repre-
sent closed societies, it is itself an open society.
The General Assembly is staged for all the
world to see, and performing upon that stage
sometimes — though not perhaps often enough —
helps turn demagogs into statesmen.
The growing sense of responsibility in the
new nations is only partly the result of fuiding
themselves on stage before a critical world. It
stems also from the growing conviction that the
business of economic and social development in
their own countries is tough and demanding.
They find the problems of food and health, edu-
cation and tecluiology, enterprise and adminis-
tration, will not yield to repetitive slogans car-
ried over from the fight for independence. And
they discover, too, the need to develop a new
relationship with the Europeans and with the
North Americans.
The framework of the United Nations pro-
vides a basis for such a new relationship — a po-
litical system in which the less developed nations
can have a full sense of participation, a sys-
tem that makes possible a family of technical
organizations whose international staffs can
help conceive and carry out the development
plans every people now expects a government
to pursue with vigor.
Peacekeeping Capacity of the U.N.
In the vast mutation that has almost dou-
bled the number of nations in the world, the
interests of the great powers have been at all
times deeply involved. In every political
change, in every part of the world, one ques-
tion lurks nearby : ^^^lat big power will gain —
or lose — what advantage ? In the global rivalry
the United States and its closest allies have had
an enormous edge on the Communists: We
really want other countries to be independent
and people to be free, while the world of Com-
munist ideology leaves room only for satellites
and adversaries.
But because of this fundamental struggle be-
tween global powers, the world has lived in
constant danger that a jungle war in Southeast
Asia, a tribal conflict in the heart of Africa, or
an ancient gi-udge fight in the Middle East
could lead to a global confrontation — and that
what began as a brush fire could be fanned into
nuclear war. Yet in 19 years the confrontation
of the armed forces of the great powers has
been everywhere averted, save only in Korea.
And so another major role of the United
Nations can be stated as a paradox: Unable
to hold the great powers together, it has played
a decisive role in keeping them apart. It has
accomplished this by helping to bring about
the settlement of conflicts through conciliation
and debate and by interposing itself as the
agency to keep the peace in areas where chaos
might otherwise attract great-power interven-
tion.
Fourteen times in 19 years the United Na-
tions has lielped preserve the peace after it was
broken. None of these disputes could have
been safely resolved by nations acting alone.
At this moment 6,000 United Nations troops
are maintaining a precarious peace between two
feuding ethnic communities on Cj'prus that
might otherwise become a war between two of
our NATO partners, Greece and Turkey.
Eight now a mobile team of United Nations
forces is supervising a tenuous truce between
Israel and her Arab neighboi-s. For 8 years,
night and day. United Nations roving patrols
have held the lid on this Middle Eastern
trouble spot.
And in Korea tonight United Nations sen-
tries stand watch over a demilitarized zone in-
696
DEPARTMENT OF STATE BULLETIIT
sulating the free iisition to the south from its
aggressive Communist neiglibors to the north.
I could go on to name other trouble spots of
the past 20 years, where the United Nations has
acted in one way or anotlier for peace: Indo-
nesia, Laos, West New Guinea, Kaslimir, the
Congo, Lebanon, Yemen, and Cambodia.
The response to some of tliese 14 disputes was
a United Nations peace force; to others it was
truce commissions or observation missions; to
still others, committees of inquiry or mediators.
But in every case the objective was the same:
to preserve the peace and to prevent a widening
war. Any of these crises might have set oti' the
sparks that fired world war III. But they did
not, and Americans were safer because the
United Nations was put to work for peace in
strange and far-ofl' places.
Thus, one of the clearest lessons of the past
two decades is that a United Nations capacity
to keep the peace is in the United States' na-
tional interest. For, after all, most of the
world's problems are, in a vei-y real sense, our
problems. Like it or not, we are so strong and
so influential that we are almost automatically
involved in the world's problems, wherever they
occur. We are not involved merely from altru-
ism— merely because it is "right" — but because
technology has so shrunk our planet that the
smallest, remotest spark can jeopardize the
peace of the world and imperil a wide range
of vital United States interests. This is espe-
cially true when other nations feel they have
something to gain by fanning local brush fires.
Yet we neither can nor should be the world's
only fireman. Most of the rest of the world
also wants the fires extinguished, short of an
all-out conflagration. And thus, if we have the
imagination to join with other countries in
building and maintaining the international ma-
chineiy to do the job, we can often avoid having
to do it all by ourselves with American money,
American troops, and American prestige.
That is why the United States has been in
the forefront of those nations wanting to
strengthen the United Nations peacekeeping
capacity.
That is why we have proposed the earmarking
and training of national military units for im-
mediate use by the United Nations in the event
of emergency.
19th Anniversary of United Nations
]{cmark>i In/ President JohnKon
White House press release dated October 23
Tomorrow we celebrate tUe 19th birthday of
the United Nations. All over America and in 112
other countries thoughtful people will salute the
U.X.'s work of peace.
In these 19 years the United Nations has done
well. Nineteen years after the League of Na-
tions was founded, in 19.38 the world's hopes for
peace were dying in the shame of Munich. To-
day the United Nations Is strong. Our hopes for
peace are high.
For 19 years, in every corner of the world, U.N.
missions have helped to keep the peace. At the
same time U.N. agencies have been at war with
the enemies of man that pay no attention to na-
tional frontiers — hunger, sickness, and ignorance.
The victories of the United Nations do not al-
ways make headlines, but they do make history.
The United Nations is teaching all of us to work
with other peoples as a good and necessary part
of our own national life. The United Nations is
not perfect at all. This year, in fact, it faces a
real crisis unless all of its members can agree to
bear their fair share of its costs. But we will
not tremble before every passing threat, and we
will not give up our glowing hope for the U.N.'s
future.
More than 85 percent of Americans are In favor
of the United Nations, and so am I. We will
never withdraw from the United Nations, and we
will never do anything to weaken it. Instead,
we will try to be the very first among those who
work to make it grow in strength and in service
to peace.
As we celebrate the U.N.'s birthday, we should
all take a moment to pay tribute to four great
men who helped make it strong. Two have been
in the doctors' hands lately — Dwight Eisenhower
and Harry Truman. Fortunately both of them
are on the mend. Two are gone — Franklin
Roosevelt and John Kennedy. So let us give spe-
cial thanks today for President Roo.sevelt, who
created the United Nations, and for President
Kennedy, who loved it so well. For myself, I
can only repeat what I said to Secretary -General
U Thant at a dark hour last November. It will
be hard to be a more vigorous and effective sup-
I)orter of the United Nations than President Ken-
nedy was, but if I can manage it, that is what I
will be.
That is why we have developed specific sug-
gestions for building up United Nations peace*
keeping machinery as an essential part of prog-
NOVEMBER 16, 1964
697
ress toward arms control and disarmament.
That is why we have recommended improve-
ment of the United Nations facilities for media-
tion, conciliation, and adjudication of disputes.
And that is why we have insisted upon collec-
tive responsibility for financing United Nations
peacekeeping operations and are now working
for procedures to take into account the greater
responsibility of the larger powers for main-
taining world peace.
The Ending of Colonialism
You and I have sometimes heard it argued
that, by providing each emergent new state a
voice equal to that of a great power, the United
Nations has given an excessive impetus to the
manufacture of new nations. As the new states
have gained in numbers and thus in votes in
the General Assembly of the U.N., they have
mounted pressures that have forced the colonial
powers to move beyond the speed limits set by
prudence. As a result, independence has been
conferred upon peoples unprepared for the com-
plex tasks that follow independence.
Evidence can be marshaled to support this
thesis. Examples can be cited of nations born
prematurely, nations lacking the educated elite
to operate the difficult business of government,
nations illogically conceived, with national
boundaries that have little rational meaning in
ethnic, geographic, or economic terms.
But, on the other side, there are compelling
argmnents for maintaining the momentum of
change. When the world is faced with a con-
vulsion so profound as the ending of colonialism,
it is well to get the process over just as quickly
as it can be done peacefully. A great political
and social revolution of this kind cannot be
achieved without major adjustments, and in a
world wliere most of the dependent peoples
have achieved independence, the lot of the re-
mainder must become increasingly irksome.
Under such circumstances a long deferment of
their own independence is likely to produce
frustrations and bitterness that will impede and
complicate their ultimate accommodation to the
environment of free nations.
We are nearing the end of the process, but
we have not yet arrived. There are still
vestiges of the colonial era, especially in the
areas of Africa where large European popula-
tions have made their homes, areas which have
not yet solved the formidable problem of how
to reconcile the rights of white minorities with
the rights and aspirations of African majorities.
Yet the vast bulk of the population formerly
under colonial rule has now achieved self-gov-
ernment. For most of the world, colonialism is
a matter of history.
You would scarcely know it is history from
the violent words about colonialism that are
still the ritual litany of many an international
meeting. Yet this is not surprising. The sur-
vival of the polemics of the anticolonial strug-
gle should not be hard to imderstand. It
springs from a reluctance to leave the familiar
past. And this reluctance is natural, because
the next step is, in most cases, a giant step and
much more complicated — the hard progress
from the juridical independence of a nation to
the firm establishment of freedom for the indi-
vidual men and women who inhabit it.
Thus, after two decades of national libera-
tion— with surprisingly little bloodshed — the
old dragon of colonialism, or oppression by for-
eigners, has almost ceased to exist. In its place
is a new breed of domestic dragons ; the abuse
of power by dominant majorities within nations.
These are mainly internal, homegrown dragons,
and there are limits to what the United Nations
and other international bodies can do about
them through the thick walls of national sover-
eignty. Yet even in this sensitive area of
human rights, the United Nations is wielding a
growing influence by employing the instruments
of investigation, debate, and the hard light of
publicity.
Human Rights
Human rights no more include the right to
starve in a world of plenty or to perish from a
preventable disease than they include the right
to demean other human beings because of race,
sex, language, or religion.
The United Nations has done much and will
do more about hunger, poverty, illiteracy, and
disease. The U.N.'s specialized agencies and
development funds now concentrate more than
three-fourths of the U.N.'s money and four-
fifths of its personnel on these basic economic
698
DEPARTMENT OF STATE BULLETIN'
and social problems which are keystones in the
many arches of peace.
So the United Nations is moving, although
not as fast as some would like, to give fuller
answer to a question asked by President Ken-
nedy, ". . . is not peace, in the last analysis,
basically a matter of human rights ... ?" ^
The U.N. Financial Crisis
The United Nations is, in a sense, like mother-
hood. Almost everyone is in favor of the insti-
tution— or at least has not devised a way to do
without it. Almost everyone says he wants to
strengthen the U.N., even when proposing
changes that would, in fact, destroy it.
This is true not merely in the United States
but abroad. The new leadership of the Soviet
Union found three occasions in the past 2 days
of power to speak of the need for strengthening
the United Nations.
But when the 19th session of the General
Assembly begins in a few weeks, a constitu-
tional issue will arise that threatens the
integi'ity of the organization. This issue poses
the greatest danger to the United Nations since
the charter was signed 19 years ago.
The crisis results because the Soviet Union
and other Communist members have refused to
pay their assessments for peacekeeping opera-
tions in the Congo and the JVIiddle East. They
have refused to pay in spite of an advisory
opinion by the World Court, accepted by over-
whelming vote of the General Assembly, that
these costs are "expenses of the Organization"
for which U.N. members may be assessed by
the General Assembly.
Some of the delinquents are more than 2 years
behind in their total contributions. This
means, if one applies the language of article 19
of the charter, that they "shall have no vote"
in the General Assembly.
The issue presented is not one of money. The
Soviet Union is perfectly able to pay its con-
tribution. The critical amounts involved are
not large. The real question is the integrity
of the General Assembly. The Soviet position
is that peacekeeping operations should be es-
tablished only through the Security Council so
that the Soviet Union can exercise its veto with
regard to any such operation it does not like.
Tliis is a major constitutional crisis. It is of
particular importance to the smaller nations,
whose interest in keeping the peace is compel-
ling and whose only voice is in the General
Assembly.
The Communists are trying to evade the clear
and inescapable provision of the charter by
intimidating other members with threats of
"serious consequences" to the organization if
they lose their votes. They have implied that
enforcement of the charter could lead to a
breakup of the United Nations.
But I recall similar threats 3 years ago, when
the Communists made their ill-fated "troika"
proposal, a plan to paralyze the U.N.'s work by
installing a veto-wielding Soviet as part of a
three-man secretariat. And when it became
clear that the membership was solidly united
in opposition, the Soviets quietly withdrew the
plan without even putting it to a vote.
We believe United Nations members will
stand firm again in the face of this new Soviet
threat. We believe the membership will resist
this effort to destroy the key mandatory power
the General Assembly now has — the power of
assessment.
Make no mistake about it, these financially
delinquent coimtries are now on a collision
course with the United Nations Charter. The
United States position is clear. We believe the
charter is a binding treaty on all its members
and should be enforced equally on all members,
whether large or small.'
Some U.N. members have expressed them-
selves clearly in favor of enforcing article 19, if
need be. Other nations are less outspoken.
But let no one confuse the desire to preserve
the United Nations membership intact with
vacillation on the basic issue of the powers of
the General Assembly. "Wlien the chips are
down, we are convinced that the members will
uphold the integrity of the charter — even if the
Soviets make good on their threat. Any other
course is a prescription for progressive deteri-
oration and dissolution.
It is vital to the United Nations that this
' Bulletin of July 1, 1963, p. 2.
' For text of a U.S. memorandum of Oct. 8 regard-
ing the U.N. financial crisis, see ibid., Nov. 9, 1964,
p. 681.
NOVEMBER 16, 1964
699
crisis be resolved and resolved in a way that will
preserve the strength and vitality of the
organization.
Peace, the Assignment of the Century
Tlie United Nations is far from perfect. It
is not the parliament of man that some people
once envisioned. It has many faults, and we
are often tempted to dwell at length upon these
faults while passing over the reality of its ac-
complishments. We sometimes tend to forget
that, just as it is an instrument of United States
foreign policy, so it is an instrument of the for-
eign policy of every other nation.
But its achievements are real and our tasks
around the world would be far more difficult
without it.
Every nation can talk about peace, but as the
most powerful countiy we have the heaviest re-
sponsibility for helping to devise the procedures
and to construct the institutions for peace. I
say this factually, not boastfully. The United
States is so strong that we can work safely for
peace with any nation willing to work with us.
As President Jolmson said last Simday [Octo-
ber 18],* "Tonight, as always, America's pur-
pose is peace for all men."
Earlier this month, the President met with
some 200 distinguished Americans to lamich
our participation in International Cooperation
Year, 1965 — marking the 20th anniversary of
the United Nations Charter.^ International
cooperation, the President stated, is a "clear
necessity." Peace, he said, "is the assignment
of the century." The United Nations serves our
national interest in cari-ying out this assign-
ment. I am confident it will continue to do so
as long as we are its leading member and as long
as we continue to exercise our leadership.
' Ibid., Nov. 2, 1964, p. 610.
' Ibid., Oct. 19, 1964, p. 555.
Some Reflections on the United States in the United Nations
by Phillips Talhot
Assistant Secretary for Near Eastern and South Asian Affairs ^
We are here to observe United Nations Day.
Similar groups are meeting arovmd the world
today and tomorrow to pay tribute to the United
Nations, which to many countries has become a
central forum for the conduct of international
relations. Across our own land our fellow citi-
zens in gatherings like this one are expressing
the American hope for the United Nations:
that it should serve to strengthen the forces for
peace and security in the world. It is a special
pleasure for me, as a product of the Middle
West, to be able to share this occasion with you
in Wichita.
'■ Address made bofore the United Nations Associa-
tion of Wicliita at Wicliita, Kans., on Oct. 23 (press
release 467 ) .
There has never been lack of argument in or
about the United Nations. Within a few weeks
its members will face a portentous issue:
whetlier to deprive certain members — notably
tlie Coimnunist states — of their votes in the
General Assembly if they have not yet settled
their arrears. The future capability of the
United Nations to pursue international coopera-
tion for the benefit of all mankind could turn
on the Assembly's answer to this question.
Other serious issues will also be with us this
j'ear, as they always are.
Yet I would point out one interesting fact.
Tliat is that the central questions about the
United Nations today are not why it exists but
700
DEPARTMENT OF STATE BUtX.ETIN
hoxo it should operate. "Wliat a change this
represents from the condition of international
organizations a generation ago !
This is an age of fimdamental changes in the
nature and texture of international relations.
Even so, we can be somewhat surprised that it
is already difficult to imagine how world af-
fairs could be effectively organized without the
United Nations. I say "already," because to
some of us at least the timespau since World
War II and the San Francisco organizing con-
ference still seems short. Yet today the United
Nations can no longer be regarded as a new,
untested institution. As it approaches tlie 19th
General Assembly, the baby of 1945 is older
than almost half the independent states that
are its members. For some of them, in fact,
it has already served virtually in loco parentis.
Despite its broad acceptance, we may still
ask why the United Nations should evoke such
deep United States involvement. Our country
has bilateral relations with 114 other independ-
ent nations. We have twice as many embassies
abroad as we had only 11 years ago. You may
fairly ask whetlier these embassies, and tlie rep-
resentatives of other governments who meet
with us in Washington, cannot do the job. "Wliy
must we also be so immersed in a United Nations
organization where the rule of "one country,
one vote" means that a nation whose population
is no larger than that of Wichita has a vote
equal to ours — though not the same financial
responsibility? I might add, parenthetically,
that the General Assembly does operate in the
light of, and against the backgroimd of, the
power realities in the modern world.
I could respond to these questions in general,
global tenns. "Wliat I should prefer to do to-
day, however, is to speak not of the whole rela-
tionship between the United States and the
United Nations but rather of how this relation-
ship looks from the fairly narrow angle of
vision of one Assistant Secretary of State whose
responsibilities concern our relations with the
18 countries of the Near East and South Asia.
This approach will, I hope, help sharpen the
focus.
It happens that in the Department of State
I am presumed not to deal with United Nations
matters as such. Under the President and the
Secretary of State that responsibility falls on
my colleague Harlan Cleveland, Assistant Sec-
retary for International Organization Affairs.
Yet to say that Mr. Cleveland deals with inter-
national organizations while I handle "bilat-
eral" and "regional" problems quite fuzzes the
realities.
The problems of Near East and South Asian
coimtries, brought to the Security Council or
to tlie General Assembly or one of the other
U.N. bodies, frequently occupy Mr. Cleveland
almost as much as they do me for days and
weeks on end. Conversely, a person in my posi-
tion can no longer address many disputes in
that part of the world that affect our interests
without taking full account of United Nations
involvement in them. In a wide range of social,
economic, and political issues these overlapping
approaches, some direct and some through the
United Nations, have become characteristic of
the new diplomacy.
The lesson, it seems to me, is clear. In today's
world it would obviously be foolish and imre-
warding for the United States to attempt to
advance its interests without involving itself
fully in United Nations processes. Conversely,
it would be equally foolish and unrewarding
to assume that United Nations processes by
themselves, without our involvement, would nec-
essarily further American interests or the pros-
pects for world peace.
The U.N. and American Diplomacy
Let me turn to three major security issues in
the Near East and South Asia — the Kashmir
dispute, Arab-Israel troubles, and the recent,
intensive Cyprus issue — to suggest how this
thesis has practical meaning in our American
diplomacy. I choose these issues in part because
they represent the extraordinary complexity of
the foreign relations of a powerful United
States with many friends and allies, especially
when some of these friends and allies become
absorbed in serious differences between them-
selves.
Perhaps the first question is why such deep-
rooted disputes should concern the United States
at all. They all reflect ancient and persistent
quarrels among peoples distant from and, until
recently, not well known to us Americans. We
NOVEMBER 16, 196 4
701
did not invent the quarrels. We are not re-
sponsible for the actions of the immediately in-
terested parties. It is not for us to choose
sides or to make moral judgments from afar.
It would be vastly easier for us to ignore them,
if we could, and go about our plentiful other
business.
However easy escapism might sound, it won't
work. In our own immediate and larger in-
terests we sometimes cannot avoid becoming in-
volved in these disputes. Our first concern is
of the sort that has always led the members of a
community to form a fire brigade. A fire in
the next street, or halfway around the world,
can threaten not only those who immediately
suffer its horrors but also the rest of us — espe-
cially if the winds are wrong. I don't say this
lightheartedly, for today's winds include some
from Commmiist China and the Soviet Union
which before now have been known to fan the
flames of disputes between free countries.
Secondly, we are drawn into such disputes be-
cause the vast power of the United States of
America is inescapably a factor in the great
issues of peace and war, whether these issues
arise between the free world and the Communist
bloc or within the free world itself. Although
we might wish it otherwise, other nations in the
free world that traditionally have exercised a
restraining and accommodating influence today
find it difficult or impossible to sustain that role.
Thus, much as we might wish to avoid awkward
problems, we must face the prospect that certain
compulsions will come upon us in the defense
of freedom.
The Kashmir Dispute
The Kashmir issue shows clearly how, first,
American interests become involved in other
peoples' disputes and, second, how our actions
can be most useful when combined with United
Nations efforts.
Kashmir is only one aspect, of course, of our
larger interests in the subcontinent of South
Asia. From the moment in 1947 when Britain
transferred power to the Governments of India
and Pakistan, we acknowledged the importance
of these two large nations strategically situated
on the rim of Asia. If India, now with 450
million people, and Pakistan, with 100 million
702
people, could find reasonable roads to tranquil-
lity, progress, and stability, then we could fore-
see real prospects for orderly processes of
modernization in Asia during our time. If, on
the contrary, India and Pakistan, or either of
them, should for any cause stumble badly, then
the prospect for large parts of the largest con-
tinent would be somber.
Out of these considerations, the United States
has worked intensively and persistently with
India and with Pakistan for half a generation
now. Our economic assistance, consisting pri-
marily of American goods and services with a
total to date of about $8 billion, has substan-
tially helped the two countries to gain viability.
Our military assistance, first given to Pakistan
a decade ago and provided to India since the
Chinese Communist attack of late 1962, has
helped strengthen the fibers of their defenses
against Communist pressures. These have been
United States progi-ams, carried out directly
with India and Pakistan.
However, it soon was clear that neither our
economic cooperation nor our security assistance
could achieve the full intended results should a
third great danger overtake India and PaJ^istan.
You will recall that communal bitterness which
for generations had disturbed Hindu-Muslim
relations led to the partitioning of British India
in 1947. Since independence these and other
influences have repeatedly threatened to destroy
even the minimum level of cooperation that is
essential to the well-being of these two closely
interlinked countries. The Kashmir issue has
been a central symbol of the area disputes be-
tween India and Pakistan. And from tlie be-
ginning the Kashmir dispute has been a concern
to the United States because of its impact on
the policies and progress of India and Pakistan,
including their policies toward tiie United
States.
Since the fii-st Kashmir complaint was
brought to the Security Council by India on
the last day of 1947, the United Nations with
American participation and the United States
directly have been involved almost continuously
in efforts to find a solution. I won't trouble
you with the long and complex course of the
many negotiating efl'orts, but in summary I
would say that both the TTnited Nations and the
individual nations, including the United States,
i
DEPARTMENT OF STATE BULLETIN"
have made their contributions. In all the years
that the Security Council has been faced with
the Kashmir dispute, its deliberations have pro-
vided a sounding board not only for the parties
immediately involved but also for wider world
opinion, expressed through the initiatives and
attitudes taken by the permanent and the many
successive nonpermanent members of the Secu-
rity Council. The presence of a United Na-
tions observer group along the cease-fire line
in Kashmir has done much to keep some of
the most sensitive friction points from flaming
into open conflict. Tlie United States alone, or
say the United Kingdom, could hardly have
had the same impact. At the same time, both
within the Security Council and directly, our
country out of its deep concern has mounted
a series of efforts to help Pakistan and India
come closer to agreements that would dissolve
this issue. Indeed, I am persuaded that with-
out American efforts with India and with Pak-
istan the United Nations, including the United
States as a permanent member of the Security
Council, could not have functioned as usefully
as it has. If neither the United Nations nor
we have found a path to settlement during these
17 years, I believe nevertheless we can take
heart that all these related approaches have lim-
ited violence and at certain moments helped
to avoid war between India and Pakistan.
The Arab-Israel Issue
Turning to the Arab-Israel dispute, I am
impressed with a similar relatedness of United
States and United Nations efforts. Along with
Kashmir, the Arab-Israel issue stands, of
course, as the hardiest perennial on the United
Nations agenda. From the events leading to
the creation of Israel down to the present, both
the United States and organs of the United
Nations have unceasingly been involved in prob-
lems of Near Eastern peace and security. The
United Nations has not only heard countless
Security Council debates and annual efforts in
the General Assembly to deal with the problem
of the Palestine refugees, but it has also main-
tained quiet sentinels of peace in the United
Nations Emergency Force located in the Gaza
and the Sinai areas, the United Nations Truce
Supervision Organization, which observes the
frontiers between Israel and its immediate Arab
neighboi-s, and the United Nations Relief and
Works Agency, which has helped sustain dis-
placed Arab refugees for the past 15 years or
so.
We Americans have, of course, had active
roles in these United Nations endeavors.
Along with other nations we have worked to-
ward compromise and settlement in the United
Nations corridors, and we have contributed our
share and more to the United Nations peace-
keeping activities. For humanitarian reasons
and in the interests of peace in the area, we
have been contributing up to 70 percent of the
UNRWA budget — a much higher proportion
than we normally contribute to United Nations
expenses.
But we also have constantly spent our ener-
gies directly with the Arab countries and with
Israel in efforts to find areas of possible ac-
commodation and to tamp down strains and
stresses that might lead to explosions. These
dialogs go on almost all the time, and at mo-
ments of impending crises I must say we find
ourselves very actively counseling restraint.
Once again the lesson for the conduct of
American foreign policy is that we can best
pursue our goal of peace and security in the
region when we function both directly and
through the United Nations. In today's con-
ditions we must often recognize that neither
course of action would be enough by itself.
The Problem of Cyprus
The third area of dispute that I would like
to discuss, the Cyprus issue, demonstrates this
proposition even more graphically. Let me say
immediately that since last winter the Greek-
Turkish-Cypriot conflict has absorbed the at-
tention of high officials of the United States
Government — and of at least four other govern-
ments— to a degree rarely allotted a single for-
eign policy problem. The reason is that on
this issue the complexities of American interests
and of present-day international relations are
arrayed in full panoply.
You are, I am sure, familiar with the broad
outlines of the Cyprus problem. Stated briefly,
the difficulty is that through a year of extreme
tensions two of our NATO allies, Greece and
NOVEMBER 16, 1964
703
Turkey, have been unable to find a basis for
agi'eement with each other and with tlie au-
thorities of a third nation, the Republic of Cy-
prus, on the future of that island republic,
whose people are wont to think of themselves as
Greeks and Turks before thinking of themselves
as Cypriots. More than once during this anx-
ious year the eastern Mediterranean has been at
the brink of disaster. Nor is the problem yet
resolved.
Cyprus is a garden island lying 40 miles off
the southern coast of Turkey and many hundred
miles from the mainland of Greece, but of its
people 80 percent are Greek Cypriots and the
remaining fifth are Turkish Cypriots. Any
proper consideration of the problem of Cyprus
has to take into account such complex and con-
flicting considerations as the following :
— Relations between the Greek Cypriots and
Turkish Cypriots, too often marked in recent
months by high tension and animosity, clandes-
tine paramilitary activities, and considerable
loss of life ;
— The national involvement of Greece with
the fate of the Greek Cypriot connnunity and of
Turkey with that of the Turkish Cypriot com-
munity ;
— The status and future of the three inter-
locking treaties whose adoption less than 5 years
ago brought independence to the Republic of
Cyprus, made allies of Cypiais, Greece, and
Turkey, and established Greece, Turkey, and
Great Britain as guarantor powers with certain
(now disputed) rights of intervention if neces-
sary to protect the constitutional structure of
the Republic ;
— The question of the solidarity of NATO
and of free-world security on NATO's south-
eastern flank in view of the strains that have
developed between Greece and Turkey ;
— Possible Communist involvement.
If ever there seemed a major international
problem in which the United States need not
involve itself directly, it was the Cyprus dispute
as it first erupted last winter. The Government
of the Republic of Cyprus had the first respon-
sibility of maintaining law and order and
preserving the constitution. The guarantor
powers — Turkey, Greece, and Britain — had the
backup responsibility for dealing with breaches
in the constitutional structure. If the parties
immediately concerned failed to resolve the
issues, then the Security Council was also avail-
able to them.
Nevertheless, in the succeeding weeks the
United States was drawn into the situation step
by st«p as it became clear that the preestablished
arrangements were not working and that clear
dangei'S lay ahead. In particular, the guaran-
tor powers, far from agreeing on one course of
action, quickly developed divergent policies. In
all frankness, had not the United States been
willing to respond to tlieir urgent request by
investing its energies in this knotty problem, I
do not know what by now might have come of
peace in the eastern Mediterranean and of some
of the vital concerns of our partners, Turkey
and Greece, and ourselves. These were the
compounding factors that lay behind Under
Secretary Ball's travels to the various capitals,^
the President's invitations to Prime Ministers
Inonu and Papandreou to visit Washington in
June,^ former Secretary of State Acheson's un-
remitting efforts in Geneva during the summer,
and a variety of little-publicized United States
initiatives.
Yet on this issue, too, the United Nations has
had, and I have no doubt will have, an essential
role to play. The Security Council has met at
almost any hour of the day or night at the call
of one or another of the parties. By its action,
a United Nations peacekeeping force has been
established on Cyprus to help damp down the
fii-es of intercommunal strife.^ The Secretary-
General has placed a political representative in
Nicosia, and he has helped work out some of the
arrangements leading to the very recent relaxa-
tion of restrictions on the Turkish Cypriot com-
munity and, at least for now, of tensions on the
island generally. Both the Cypriot Govern-
ment and Turkey have inscribed Cypnis items
on the agenda for the forthcoming General
Assembly.
It is well to remember, of course, that the
United Nations can perform certain functions
but not others. For example, neither the Secu-
" For background, see Bulletin of Feb. 24, 19C4,
p. 284.
' Ihid., July 13, 1964, p. 4S.
*For background, see ibid.. Oct. 19. 1964, p. 561.
704
DEIWRTMKNT OF STATE BUI.I-ETIN
rity Council nor the General Assembly is com-
petent to revise treaties. Tliroughout the
Cyprus crisis there has been much talk of the
inadequacy of the Zurich-London treaties.
Some might wish to junk them and start afresh.
Tlie United Nations is plainly not the forum
for that sort of effort.
As I see tlie problem that lies ahead in the
Cyprus issue, it is evident that the central fea-
ture of a peaceful resolution must be a bargain-
ing process whose result is that the parties to
the Zurich-London treaties agree on some fu-
ture pattern. "VYhat this pattern will be, I don't
pretend to suggest. As from the very begin-
ning of our involvement, our hope lias been tliat
a resolution can be achieved by agreement.
Kashmir, the Arab-Israel problem, and
Cyprus — three issues in which I may have a
parochial interest because of my own current
responsibilities but which also seem to me to il-
lustrate effectively the intensity of relations be-
tween United States foreign policy and tlie
United Nations. I suppose that some Ameri-
cans would find this a disturbing situation.
They might argue that the still-growing mem-
bersliip of the United Nations raises such
threats and dangers for the United States that
as the world's most powerful nation we should
withdraw to a more unilateral approach to
world affairs. I would only suggest that the
issues I have discussed underline the value that
the United States gains from its relations in and
with the United Nations.
Obviously the United Nations can function
effectively only if funds are available for its
operation. That is why the payments issue
which the General Assembly will face is
crucial. Our stand on this issue is clear,^ and
we believe that it will be supported by the
majority of the membership. Indeed, if the
United Nations is a valued dimension of Amer-
ican foreign relations, how much more is it im-
portant to those smaller countries which see in
the United Nations their most important inter-
national forum.
On this United Nations Day we can have
confidence, I submit, that American policy for
the past 20 years has been on tlie right track
in cooperating closely with the United Nations
and its various component parts. Indeed, 1
submit that peace and security in the world are
strengthened because of the strong United
States interest in its relations with the United
Nations.
U.S. Reports on Success
of Alliance for Progress
Following are remarks made hy President
Johnson on October 27 after a meeting at the
White House w-lth members of the Inter-Ameri-
can Committee on the Alliance for Progress,
together with tlie text of a report mxide to the
President on October 30 by Thomas C. Mann,
Assistant Secretary of State for Inter- American
Affairs and U.S. Coordinator for the Alliance
for Progress, which was made public on Octo-
ber 31.
REMARKS BY PRESIDENT JOHNSON
White House press release dated October 27
Ladies and gentlemen: We have just had a
meeting with the membership of the CIAP
gi-oup and discussed the relations in this hemi-
sphere, and we have f oimd the developments to
be quite encouraging. Harmony exists. There
is a feeling of friendship between the neighbors
in the Western Hemisphere. We regularly
have these meetings.
The CIAP group has just completed a coun-
trj'-by-country review of the social and eco-
nomic progress that the various individual na-
tions have made. Eleven months ago — the first
week that I was in office — I took somewhat far-
reaching steps to overhaul the machinery and
to strengthen the personnel in the agencies that
dealt with our neighbors in this hemisphere.^
At the end of the fiscal year, all the money
° For text of a U.S. memorandum of Oct. 8 regarding
the U.N. financial crisis, see iMd., Nov. 9, 1964, p. 681.
' For text of a letter dated Deo. 15. 1963, from Presi-
dent Johnson to Ambassador Mann outlining U.S.
policy relating to Latin America, see Bulletin of
Jan. 6, 1964, p. 9.
NOVEMBER 16, 1964
705
that had been appropriated had been allocated.
Ked tape had been cut. Decisions were no long-
er being delayed. The watchword of the admin-
istrator, Mr. Mann, who had the authority of
the White House and the State Department
and the Alliance for Progress all wrapped up
imder one hat, was such that he could make a
decision, and did.
So we got out our allocations and made our
decisions. We proceeded on the premise that
we could not really have a successful relation-
ship that we could take great pride in unless we
successfully attacked the ancient enemies of
mankind in this hemisphere, poverty, disease,
ignorance, illiteracy, health, and so forth ; that
we must have land reform ; that we must have
fiscal reform; we must have tax reform; we
must have budget reform.
We liave watched with great interest the im-
provement that has been made in these various
fields. But I also concluded — and my view, I
think, was shared by Secretary Rusk and Mr.
Mann — that you could take all the gold in Fort
Ivnox and it would just go down the drain in
Latin America unless the private investor, upon
which our whole system is based — free enter-
prise— could have some confidence that he could
make his investment and it would not be confis-
cated and that he would have an opportimity to
make a fair and reasonable return.
So we worked very closely with a number of
leading businessmen, and we worked very close-
ly with some of the great thinkers, some of
whom are represented here, in trying to make it
possible to make private investment increase
and also make it safer. In 1963 we made in-
vestments of around $60 million in other coun-
tries. In 1964, at the rate we are going, it will
be over $100 million, almost twice as much. So
progress is being made.
We have had a good many momentary diffi-
culties. We had our water cut off at Guan-
tanamo, but we solved that without a major
debacle. We had some difficulties in Panama,
but with patience and judgment we solved that
without a major catastrophe. We had prob-
lems in Brazil, and now we are working very
closely with them to give them major assists.
Wo had an election in Chile, and that has been
decided. Nowhere, really, have the Commu-
nists taken over any governments or have any
governments gone communistic since Cuba in
1959.
In retrospect, as we look over the 12 months
of our relations with our neighbors in this
hemisphere, we can look at them with confi-
dence, with respect, and with pride. And now
I am going to ask Mr. Mann to make a full and
detailed report on these developments to me
quickly and shortly.
I am going to ask Dr. Sanz [Carlos Sanz de
Santamaria, chairman of CIAP] here with
CIAP to realize that we maintain an open-door
policy and that that door there to the Presi-
dent's office is always open to him and to his
group for suggestions, for criticisms, for ideas.
Because we do have a very genuine respect not
only for the independence of our fellow men in
this hemisphere but for their lofty and worthy
desires to achieve for their people a better
standard of living and a better way of life.
And because so many people helped us de-
velop our economy and become a strong and
mighty nation politically and economically and
educationally, we feel a debt of gratitude and
we want to, in part, repay it by working with
our other neighbors. Because the stronger
they are, the stronger America is. Thank von
very much.
TEXT OF REPORT
October 30, 1964.
Eeport to the President on Latin American
Policy
President Franklin Roosevelt laid the corner-
stone of our policy toward Latin America when
he dedicated this nation "to the policy of the
Good Neighbor".
President Truman added economic and social
dimensions to our policy in 1949 by announcing
his Point Four program. I
In the late 1950's, President Eisenhower ]
called for "widespread social progress and eco- i
nomic growth benefiting all the people and |
achieved within a framework of free institu-
tions".
Beginning in 1961 President Kennedy pro-
posed an Alliance For Progress between the
American states dedicated to the more rapid
achievement of political democracy, social jus-
706
DEPARTMENT OF STATE BULLETIN
tice and economic growth. The Alliance came
into being as a multilateral obligation. A new
hope stirred the imagination and the energy of
the people of the entire hemisphere.
1964 has been marked by a new unity of pur-
pose in making the Alliance not just a state-
ment of goals but a reality.
Within our own government a new coordina-
tion has been achieved between our AID
[Agency for International Development] activ-
ities and our political and economic policies.
As a result, more Alliance For Progress loans
were made in the first six months of 1964 than
in all of 1963. All of the funds made available
by the Congress were committed. More impor-
tant, the quality of loan programming was im-
proved. Increased emphasis was given to
self-help.
In 1964 each American Republic began, for
the first time, to discuss in depth with others its
problems, its needs and its own self-help meas-
ures. The new forum is the Inter-American
Committee for the Alliance For Progress. In
addition to governments, the Inter-American
Development Bank, the World Bank, the Inter-
national Monetary Fund and panels of experts
participate in these reviews so that the best
talent available in the hemisphere is brought to
bear on the complex economic and social prob-
lems of our times.
High growth rates in Venezuela, Mexico,
Central America and other countries reflect a
new confidence in those countries. This is re-
flected in an increased flow of foreign invest-
ments. United States investors, for example,
are investing in Latin America at about twice
the rate they did in 1963.
There are encouraging signs of accelerated
self-help measures throughout the hemisphere.
Sixteen countries have adopted improved tax
legislation. Twelve countries are working on
agrarian reform programs. Latin American
education budgets have been increased by twen-
ty-five percent.
Some 900 credit unions have been created,
more than 220,000 houses and 23,000 school
rooms have been built. Fifteen million more
people have been given access to potable water
supplies. The diets of millions have been im-
proved by making our surplus agricultural pro-
duction available in school and family feeding
and in food for work programs.
1964 was also a good year for political free-
dom. The people of Venezuela triumjihed over
a determined subversive effort by Communists
to prevent free elections and a democratic trans-
fer of government.
The peoj^le of Brazil achieved a new national
consensus and have begun an important pro-
gram of economic and social reform.
The people of Chile chose freedom in free
elections.
Panama and the United States are sitting to-
gether at the conference table, as reasonable
men should, to resolve their problems.
The water is rumiing again at Guantanamo
from a new desalinization plant while the
Cuban economy continues to flounder in the
sea of Communist mismanagement.
The American Eepublics imposed strong
sanctions against the Castro regime in retalia-
tion for its aggression against Venezuela. And
in doing so they collectively served notice that
further aggressions would not be tolerated.
Mexico and the United States celebrated the
settlement of a long-standing boundary dispute
and demonstrated their growing friendship and
cooperation.
These are results which people throughout
the hemisphere can see and feel and mider-
stand. They are developments which open the
way for even greater progress in the Alliance
against poverty, illiteracy, disease and hunger
and for political and economic democracy.
If all of the American Republics do their
part, the Alliance For Progress will succeed.
Thomas C. ISIann
NOVEMBER 16, 1964
707
Progress and Prospects in International Economic Cooperation
iy G. Gri-ffith Johnson
Assistant Secretary for Economic Affairs '
The United Nations has designated 1965 as
the Year of International Cooperation. In ad-
dition, President Johnson early this month pro-
claimed 1965 to be International Cooperation
Year in the United States.^ This is therefore
an appropriate time to review the state of inter-
national cooperation in economic affairs, what
progress we have made and what the prospects
may be.
The first obsei-vation I should like to make is
that newspaper headlines often seem to us to
give a somewhat distorted view of the situation.
To read, for example, that "Kennedy Round
Seemingly Heads Toward Collapse," or "U.S.-
French Differences Lead to Impasse on Liquid-
ity Issue at IMF Annual ]\Ieeting," or "Poor
Nations Defy West at UN Meet" may convey
the idea that little pi'ogress has been accom-
plished in international economic cooperation
or that whatever progress has been achieved is
now threatened by sharp cleavages amongst the
advanced countries, on the one hand, or between
the less developed countries and the advanced
countries, on the other hand.
That serious problems exist, and differences
in viewpoint among the various countries, is not
a surprising situation in this complex world.
They are the growing pains of an emerging in-
ternational economic system designed to deal
with increasingly close relationships forced
' Address made before the Economic Club of Pitts-
Imrfrh at Pittsliurgb, Pa., on Oct. 21 (pres.s release 463) .
° For remarks made b.v President .Tolinsnn and Secre-
tar.v Rusk on Oct. 2 and text of Proclamation 3620, see
Bulletin of Oct. 19, 1964, p. 555.
upon us by modern technology. This emergence
is a slow and laborious process, and what should
concern us is whether effective progress is being
made, progress sufficient to meet at least the
minimum requirements and aspirations reflected
in the political and social developments within
the society of nations.
If at times the prospect appears discouraging,
I think we can take heart from the very real
successes that have been achieved in the years
since the end of "World War II, particularly
when we contrast the achievements of these
years with the two decades after World War I.
In many ways the problems faced in construct-
ing a peaceful and prosperous world after 1945
were more complex than those arising out of
1919. The devastation was far greater. The
return to political stability was far more diffi-
cult. Looming over a war-shattered Europe
was the threat of Soviet expansionism abetted
by upsurging Communist movements in major
European countries. At the same time the na-
tions of the West were faced with the almost
complete collapse of colonial empires, with re-
sulting political turmoil and a doubling of the
number of independent countries.
World War I had also changed the world in
a very fundamental way — but not the minds of
tlie finance ministers and economic policy-
makers of the victorious Allied Powers. We
all know what happened. A prostrate German
nation carried wheelbarrows of German marks
to the stores to buy a loaf of bread; Britain
suffered prolonged strikes, rioting in coal min-
ing areas, and chronic unemployment after she
708
DEPARTMENT OF STATE BULLETIN
revalued the pound to its prewar level and lost
heavy export markets to competitors; and the
United States rocketed to short-lived prosperity
built, in part, on overextended speculation.
When tlie crash came — as it Iiad to come — the
credit mechanism collapsed, not only interna-
tionally but nationally as well. Nations had
to default on their international obligations,
banks closed their doors, prices of internation-
ally traded commodities dropped 50 percent
within the space of a few years, and nations
raised even higher tariff walls to protect home
industries — notably our own Smoot-Hawley
Tariff Act of 1930. Analysts are still debating
these years, and there is no easy answer as to
why the world acted as it did.
One thing is clear, however: The economic
institutions, particularly those of international
trade and finance, were not up to the job of
supporting a woi'ld economy in which one na-
tion was increasingly dependent on another for
its economic health and well-being. On the
financial side, the then-existing modified gold-
standard system was totally inadequate. It be-
came highly deflationary in effect, and when it
collapsed, as was inevitable, there was no effec-
tive international machinery to substitute.
Similarly, there was no mechanism for facili-
tating trade.
The rest is history, and I leave it to the his-
torians to argue the causes. What is clear is
that the twenties and thirties were characterized
by a lack of effective international cooperation,
in the economic sphere as well as politically.
Twenty years after the signing of the Ver-
sailles Treaty, many countries were still plagued
by massive unemployment, nations had fixed
high barriers across their economic borders, the
international monetary system accentuated in-
stability, travel between countries was at a mini-
mum, and the world had to face the threat of
Hitler's militaristic ambitions. The failure to
set up an effective mechanism for international
economic cooperation after the Peace of Ver-
sailles had helped draw the world once more
face to face with the threat of cataclysmic war.
One has only to recite these facts to see how
vastly different the economic evolution has been
in the two decades since World War II. Instead
of stagnation, there is prosperity; and instead
of national "beggar my neighbor" economic
policies, tiiere is substantial mternational co-
operation for mutual economic benefit. We
have had 20 years without a major depression,
nationally or internationally, and have reached
levels of production and income beyond imagi-
nation a few decades ago. The economic atti-
tudes have changed drastically. Today, every
country and many firms are busy projecting the
level of economic gro^'th, 5, 10, and 20 years
hence, and estimating how much better off they
will be. We take it for granted, perhaps a little
too readily, that tomorrow will be better than
today.
Wlien we look back at this recent period and
ask ourselves how all this has been possible to
achieve, the answer in all candor must perhaps
be in part that we have been lucky — but only in
part. A large and indispensable share of the
explanation lies in the strong determination
of the West, with the United States leading, not
to repeat the economic blimders following
World War I. We recognized that the free
world is higlily interdependent and that postwar
economic policies must create an enduring
multilateral system of economic cooperation for
mutual benefit. You will remember, for
example, that even before the war was over,
work was started on plans and projects, such
as the design of a stronger international mone-
tary system, to meet the needs of the postwar
period.
There are three outstanding developments in
the international economic field in these past two
decades, and what has happened in these three
areas at the same time provides the framework
and indicates the objectives for our future
efforts.
Expansion of Free-World Trade
First, there has been a prodigious develop-
ment in free-world trade. Since 1948 free-
world exports have about tripled m real terms
and are now running at an annual rate of over
$150 billion. This level is more than double
the pre- World War II level of 1937. In the case
of the U.S., exports — again in real terms — have
NOVEMBER 16, 1964
748-977 — 64 3
ro9
more than trebled since 1937. Not all countries
have participated equally in this expansion of
trade, with the exports of many less developed
countries lagging behind the averages. More-
over, a number of industries in many countries,
including our own, have had to make adjust-
ments, sometimes painful, to world competition.
Nevertheless, the growth in trade has been a
powerful lever in raising the free world's
standard of living.
This spectacular rise in world trade has been
no accident; on the contrary, it has been both
nurtured and made possible by deliberate gov-
ernment policies quite contrary to those adopted
in the years after World War I. During the
1930's, the United States made a start in lower-
ing the higlily protectionist tariff barriers
erected in the depression, through the bilateral
agreements negotiated under the Trade Agree-
ments Act. These agreements helped to slow
down the worldwide trend toward even higher
barriers, but at the end of the war much re-
mained to be done and it was evident that the
bilateral negotiation method had serious limi-
tations. Satisfactory improvement could not be
expected imtil at least most of the major trading
coimtries were ready to undertake similar obli-
gations on a reciprocal basis. A multilateral
approach to the problem, therefore, was needed,
and the General Agreement on Tariffs and
Trade was negotiated at Geneva in 1947 among
the United States and 22 other important trad-
ing countries. Since then many additional
countries have agreed to apply the GATT rules,
and there are now over 60 contracting parties
to the agreement, including nearly all the im-
portant trading countries of the world.
Broadly, the two major accomplislmients of
the GATT are, first, establishment of a series
of rules for the conduct of trade, avoiding the
unfortunate effects of the damaging practices
which were so prevalent in the thirties, and,
second, a series of multilateral negotiations
which have resulted in widespread reduction of
tariff barriers. The barriere which remain, and
the exceptions to the rules — of which there are
many, as to most rules — tend sometimes to make
us forget the enormous contribution which the
liberalization of trading arrangements under
the GATT has made to the present prosperity
of the Western World.
Strength of International Monetary System
The second significant development, and a
closely related one, has been the strength and
flexibility of the international monetary system.
The large growth in trade could not have been as
large if there had not been available the means
to finance this trade, the liquidity to facilitate
adjustments to changes in balances of payments,
and a reasonable stability and freedom from
crisis in the monetary area. The system has had
to weather many strains ; to mention a few — the
widespread European devaluations of 1949, the
moves toward convertibility by the major Euro-
pean coimtries which began in 1958, the sharp
rise in the price of gold in 1960, the run on the
pound in 1961, the Canadian devaluation in
1962, the threatened Italian exchange crisis in
the spring of 1964. In an earlier period any
one of these crises might have led to the col-
lapse of the international monetary system.
This did not take place. There is now an in-
creasing flow of capital between markets which
can only take place because of the confidence of
investors.
Here again the effectiveness of international
cooperation in the economic field was an indis-
pensable part of the picture. The basis was set
by the formation of the International Monetary
Fund, initiated at the Bretton Woods Confer-
ence in 1944 and designed to insure an inter-
national payments system that would encourage
international trade and capital movements —
one sufficiently flexible to permit orderly ad-
justments to balance-of-payments swings with-
out creating the dangers of excess world
liquidity and inflation and at the same time
without being excessively restrictive and caus-
ing deflation and depression.
The modified gold standard as it operated in
the prewar years was extensively and correctly
criticized because of its tendency to exert down-
ward pressure on world economic activity. The
fact was that a system based primarily upon
gold for settlement of payments deficits could
not count upon an adequate supply of gold be-
ing produced annually to meet expanding needs
of trade and capital movements. Moreover,
without a system of mutual support such as
now exists, such a system was highly vulnerable
to speculative movements of funds. The re-
no
DEPARTMENT OF STATE BULLETIN
suit was that the country which lost gold was
forced to deflate and create unemployment,
while the coimtry which gained gold sought
to sterilize the gold to prevent inflation.
There is a further point that should be noted.
In the prewar years, there was very little
understanding of the proper roles of fiscal and
monetary policy in bringing about full employ-
ment, relatively steady growth, and balance in
international accounts. The Fund introduced
for tlie first time, on an organized and fully
multilateral basis, the principle of reliance upon
credit facilities to supplement the use of gold
and the dollars, sterling, or francs that had
become embedded in the "owned reserves" of
various countries. At the same time, the IMF
system through its provisions for scrutiny and
rising interest charges had provided a needed
measure of discipline as a substitute for the un-
fortunate contraction that the gold standard
would impose.
International Development Activities
Finally, and perhaps most significant for the
future, have been the developments in the less
developed areas of the world — the postwar pur-
posive pursuit of modernization by the billion
people of the developing nations, with massive
economic support provided by the advanced
countries. We can, I think, take great pride in
the role of the United States in furthering this
process of economic development. Through its
leadership and the farsightedness of its policies,
it has generated forces which have led to a new
and unique degree of international cooperative
effort.
The first necessity was, of course, the recon-
struction of Western Europe, I think it is well
understood that the Truman Doctrine and the
Marshall Plan were major milestones in a line of
postwar policy which did not repeat the mis-
takes of earlier eras. Without the successful
rehabilitation of Western Europe none of the
other measures would have mattered. With
the help of these programs Western Europe
remained part of the free world, and similar
programs of cooperation with Japan have aided
that country to become a bulwark of the free
world in the Far East.
With the success of reconstruction, attention
properly turned to the situation and needs of
the developing countries, where the great cleav-
age between aspiration and reality had become
a pressing threat to world peace and prosperity.
Development, as we know, is not an easy task
since it involves in a vital sense far more than
economic change. It also involves basic changes
in the total structure of the developing nations.
It is for this reason that the progress has been
so uneven among the developing nations and
that at times some people despair whether, if
ever, the job will be done. Undoubtedly, we
have in the past underestimated the size of the
job and the time it would take. In tlieir anxiety
to speed up progress, the leaders of the new
countries, in particular, have tended to advance
unrealistic proposals and to seek "get rich quick"
solutions. The difficulties in these areas, the
great contrast between goals and realities, the
political instabilities and social dislocations
which persist in many of them, should not, how-
ever, blind us to the fact that solid progress has
been made and that these countries are in most
cases being transformed.
Behind this solid progress are a series of
international efforts, both multilateral and bi-
lateral, of great diversity and size, and if the
results have not been as spectacular or conclu-
sive as in other fields, it is because the problem
itself is so much more profound and complex.
Led by the United States, the advanced coun-
tries have broken new ground in devising
methods of assisting the development process.
Most notable, of course, is the World Bank and
its sister agencies, the International Finance
Corporation and the International Development
Association. The United Nations and its spe-
cialized agencies have undertaken extensive
work in teclinical assistance. Through the
Development Assistance Committee in Paris —
an offspring of the OECD [Organization for
Economic Cooperation and Development] — the
advanced countries are attempting to coordinate
their efforts in assisting developing areas, and
the base of financial participation has been
broadened. Largest of all have been the U.S.
programs to assist both in maintaining the
security and in facilitating the development of
the less developed nations.
"Wliile my remarks have dealt with the areas
of trade, finance, and reconstruction and devel-
NOVEMBEK 16, 1964
711
opment, this by no means exhausts the list of
successful cooperative activities. The network
of international relationships in the economic
field is of course far more extensive. In civil
aviation, maritime affairs, agricultural and
commodity programs, telecommimications — in
these and other areas there exists organized
multilateral cooperation on a scale unprece-
dented in scope and effectiveness. Many of you
have participated in these activities, under the
auspices of the OECD or the United Nations
and its specialized agencies. A most recent
example is the interim arrangements for a com-
mercial communications satellite system — a
multilateral commercial venture which is unique
and unprecedented.^ You are also familiar
■with the numerous regional economic arrange-
ments, varying in character and scoi^e but con-
tributing to the facilities for cooperative effort
and, in many cases, offering great potential
usefulness.
At this juncture I should like to make one
point. The United States has played a most
responsible and constructive role of world lead-
ership in international economic cooperation,
but it cannot be emphasized too strongly that
what has been achieved has been the result of
bipartisan political support, the willingness to
submerge party differences for the sake of a
better world economic system. Many of these
programs were initiated under President Tru-
man with support from the Republicans. But
they were carried forward and expanded xmder
President Eisenhower with support from the
Democrats. Both parties have recognized that
our common stake in the security and well-being
of the free world outweighs our domestic party
differences, and this has been and continues to
be a necessary underpinning of our effective
leadership.
Future Efforts in Trade and Monetary Fields
As for the future, the achievements since the
end of World War II, the economic activities
and programs that have been built up, provide
a solid foundation for further pi"ogress — but
they do not at all guarantee it. They reflect an
evolutionary process requiring continual effort,
' For background and texts of agreements, see ibid.,
Aug. 24, 1964, p. 281.
and it is not likely tliat progress in the future
will be as easy or as spectacular as in the past.
Furthennore, this must be increasingly a joint
effort on the part of the advanced countries,
f)roper]y reflecting the rapidly rising capabili-
ties of others as well as the United States.
In the trade field, for example, we have
reached a broad testing groimd which will de-
tennine whether the industrialized countries are
going to continue along the road which has
sei-ved them so well in the past or will turn back
under traditional protectionist pressures. The
principal test is, of course, the Kennedy Round,
which has been made possible by our own Trade
Expansion Act of 1962. The Kennedy Roimd
represents a departure from precedent in one
very important respect: It contemplates sub-
stantial tariff cuts on a broad or Imear basis
rather than on the laborious product-by-prod-
uct basis of prior negotiations. Success in carry-
ing through on this basis appears to be essential
for the further substantial reduction of barriers
to world trade.
The preparations for the Kemiedy Round
have been long and difficult. A substantial area
of agreement has been reached on the broad ob-
jectives and procedures at the GATT minis-
terial meetings and in the committees and work-
ing groups which have been earnestly laboring J
in Geneva.* In our own coimtry we have gone '
through carefully the procedures required by
the law, and a large group of experts have been
making the necessary preparations to protect j
and further our own interests. Other countries 1
have been doing the same, pointing toward the
date set for the tablmg of offers and exceptions.
The most difficult problem remains the treat-
ment of agricultural commodities, and negotia-
tions are now going on with respect to the rules
to be applied in this area. We believe the other
major trading countries contmue to attach pri-
mary importance to the successful conclusion of
the Kennedy Roimd, as they have stated many
times in the past. For his part, President John-
son has recently reaffirmed the coimnitment of
his administration to the "full and vigorous im-
' For remarks by the President's Special Representa-
tive for Trade Negotiations Christian A. Herter and
text of a declaration adopted by the GATT ministers
on May 6, see ibid.. June 1, 1904, p. 878.
712
DEPARTMENT OF STATE BULLETIN
plemeutation" of the Trade Expansion Act.'
In the mternational monetary field we have
seen the issues sharpened during the last year
by the studies and discussions within the Inter-
national IMonetary Fund and the "Group of
10." '^ The essential problem is to develop a
mechanism for providing adequate world li-
quidity— but not too much — and at the same
time to facilitate the process of orderly adjust-
ment in coimtries which are in unbalance. Dur-
ing the postwar period international liquidity
has been adequate to meet the needs of world
trade and capital flow, because of the liquidity
provided by tlie supply of dollars made avail-
able through deficits in the United States bal-
ance of payments. Now that the United States
has moved and is continuing to move effectively
to eliminate its deficit, and since the output of
gold is quite unlikely to be adequate, the issue
thus comes up : How will the free world expand
its liquidity to meet the needs of growing trade
and an expanded flow of capital ?
In the meetings of the "World Bank and In-
ternational Monetary Fund in Tokyo last
month,^ a beginning was made in formulating
plans to deal with this issue. One step was an
approval of an increase in IMF quotas. The
"Group of 10" also approved further detailed
study of various proposals for the creation of
reserve assets through the IMF or otherwise, a
study of the adjustment process, and a process
of "multilateral surveillance" of the ways and
means of financing balance-of-payments dis-
equilibria.
Xeitlier all of the experts nor all of the gov-
ernments are of one mind on these complex
and highly important issues. Nor can they be
expected to be. One difference of opmion
which was highlighted by the newspapers was
whether further progress in providing world
liquidity should be through the International
Monetary Fund or outside it. (The United
States believes that these problems should be
worked out through the Fund; others prefer
" Ihiil.. Oct. 12. IJKM. p. 516.
" For background, see il)id., Oct. 21, 1963, p. 615, and
Aug. 31.1964, p. 323.
' For a statement made by Secretary of the Treasury
Douglas Dillon at Tokyo on Sept. 8, see iftid., Sept. 28,
1964, p. 444.
to work toward some arrangement confined to
leading industrial countries.) While differ-
ences of opinion nuist be expected and extensive
discussion will be required, the important thing
is that the comitries of the world, in particular
the leading industrial countries, keep a broad
perspective on the essential fimctions which the
international monetai-y mechanism must per-
form and not permit themselves to be diverted
from the essential task by narrow and doctri-
naire considerations.
Problems of the Developing Countries
Finally, the major task before us, and at
the same time the most difficult one, clearly lies
in our relationship with the developing coun-
tries— what has been called the north-south
axis. Here in particular, economic matters are
mixed with an exasi^erating array of political
and militai-y complications, combined with a
psychological revolution which has far ex-
ceeded the ability of economic realities to sup-
port it. There is general recognition of the
pressmg need for accelerated development and
of the vital interest of the advanced coimtries
in having this take place ; but the knowledge of
how to do it, in the enormously varied condi-
tions which obtain, is something less than
perfect.
The importance of this subject and the con-
fusion surrounding it were well illustrated at
the United Nations Conference on Trade and
Development held in Geneva for 3 months last
spring.^ To a certain degree the conference
revealed an encouraging consensus among de-
veloping and developed countries on a range
of measures which can and should be taken to
improve the trade and development prospects
of the poorer coimtries, but much of the dis-
cussion and many of the eventual resolutions —
passed by means of tlie large majority which
the developing countries represented — evi-
denced a large gap between their understand-
able aspirations and the practical possibilities.
Under these circumstances the temptation to
paper over difficulties with kind words is very
stronsr indeed.
' For background, see md., Apr. 20. 1964, p. 034, and
Aug. 3, 1964, p. 150.
NOVEMBER 16, 1964
713
As a starter, it must be recognized that the
major responsibility lies with the developing
countries themselves. They must themselves
provide the necessary conditions for develop-
ment, the political and social climate, the ad-
vancement of education from the most elemen-
tary to the most teclmical, the institutions, the
monetary stability, the incentives, the plans,
and the energy to advance. Without these
things, outside help can be of little value.
But even assuming enlightened internal pol-
icies and adequate self-help, the developing
countries need more external resources in order
to move ahead; they need more capital and
more foreign exchange to buy the equipment
and services which are essential to accelerated
progress. These additional resources can be
obtained only by increasing their expoits or
by a larger inflow of public and private capital.
As far as trading arrangements are concerned,
the contracting parties to the GATT have given
increasing recognition to the needs of the less
developed countries, both in the Kennedy Round
and in other contexts. They are now negoti-
ating the text of a new section to be included in
the General Agreement to deal with trade and
development. In the Kennedy Round they
have agi'eed that the less developed countries
will not have to give full reciprocity in tariff
concessions, and they have formed a special
committee to look out for the interests of the
less developed countries. We believe these
efforts in the GATT will be successful and that
the GATT will continue to be the effective
forum for negotiating reductions in trade bar-
riers, including those of special interest to
developing countries.
The GATT, however, deals with only a part
of the problem — with trade access arrangements
and not with related financial difficulties and
basic economic capabilities. The lowering of
trade barriers cannot create trade where the
capacity to produce and compete is lacking.
While much can be done to improve the trading
position of the developing countries and export
earnings will obviously continue to provide the
major part of their foreign exchange resources,
a critical factor is that net addition to total
resources provided by the inflow of foreign
capital.
The need for a sizable inflow will continue to
be great. As a practical matter, in addition to
considerations of effectiveness, private invest-
ment must be counted on to provide an increas-
ing share, and the preconditions required to
facilitate this should have a high priority. But
the governments of the advanced countries will
continue to bear a heavy responsibility for
assisting in carrying out the development pro-
grams of the developing coimtries. Wlien we
look at the phenomenal growth of the advanced
countries since 1945— the unlooked-for levels of
current prosperity — can it be claimed that the
potential demands on their resources for this
purpose do not fall well within the limits of
their capabilities ?
In this, as in other areas of international
cooperation, the importance of pressing ahead
remains compelling, in terms of our national —
and the free world's — interest and survival. We
need not be deterred by the fact that the future
may appear troubled and uncertain, that the
right course of action is not always crystal clear.
This is perhaps a chronic condition in inter-
national affairs, and the solid progress of the
past two decades should give us confidence for
the future.
U.S. Comments on British Measures
To Strengthen Economy
Fottowlng are statements released on October
26 hy the Depart7nent of State and by the Treas-
ury after an announcement by the British Gov-
ernment that it was taking certain meamires to
strengthen its econcmiy, including the introduc-
tion of a temporary surcharge on imports.
DEPARTMENT STATEMENT'
The United States Government welcomes the
speed and vigor with which the British Govern-
ment has moved to deal with the problems relat-
ing to its balance of payments and to the under-
lying economic situation in the United King-
' Read to news correspondents by Robert J. McCloa-
key, Director of the Office of News.
714
DEPARTMENT OF STATE BULLETIN
dom. While we naturally regret that the situ-
ation has led the British Government to deem it
necessary to resort to emergency import charges,
we are gratified that these charges are to be non-
discriminatory and by the categorical assurance
that the charges are strictly temporary and will
be reduced and eliminated as soon as possible.
The United States Government is confident that
the wholehearted cooperation of the British
Government in the Kennedy Round will in no
way be impaired. The United States Govern-
ment stands ready to cooperate in any way that
it appropriately can with the British Govern-
ment in dealing with these problems.
TREASURY STATEMENT
The new British Government has acted
promptly and effectively to maintain the
strength and stability of the pound sterling.
Its temporary measures strike at the inflated
imports which have been the principal source of
immediate pressure on the pound. Its longer
run measures affecting productivity, incomes,
and prices can i^rovide the improvement that is
needed in the competitive position of the United
Kingdom in world markets.
It is gratifying that the action taken is non-
discriminatory in form and avoids any damag-
ing reiiercussions upon the functioning of the
international monetary system. The import
charges will, for a time, have a moderately ad-
verse effect upon our trade as well as upon that
of other countries, but there is no painless cor-
rective, either for the United Kingdom or for
the rest of the world. The United States wel-
comes the British determination to reduce and
remove these import charges at the earliest
opportunity.
Existing arrangements for international
financial cooperation have proved their effec-
tiveness in recent years and are again demon-
strating their capacity to maintain the smooth
functioning of the international monetary
system.
UNESCO General Conference
Meets at Paris
The White House announced on October 17
that President Johnson on that day had ap-
pointed five delegates and five alternates to the
13th session of the General Conference of the
United Nations Educational, Scientific and
Cultural Organization (UNESCO) scheduled
to be held at Paris October 20-November 19,
1964. In addition, the delegation will include
five congressional advisers, two from the Sen-
ate and three from the House of Representa-
tives. The delegates will be the official repre-
sentatives of the United States during the
month-long meeting. They are as follows :
Delegates
William Benton, chairman, U.S. Representative,
UNESCO Executive Board
Harvie Branseomb, rnce chairman. Chairman, U.S.
National Commis.sion for UNESCO
Walter M. Kotschnig, Deputy U.S. Representative,
United Nations Economic and Social Council
Mabel M. Smythe, Principal, New Lincoln (High)
School, New York, N.Y.
Robert H. B. Wade, U.S. Permanent Representative
to UNESCO
Alternate Delegates
August Heckscher, Director, Twentieth Century Fund
Francis Keppel, U.S. Commissioner of Education
Walter H. C. Laves, Chairman, Department of Gov-
ernment, Indiana University
Roger Revelle, Director, Scripps Institute of Oceanog-
raphy, University of California, La Jolla, Calif.
Wilbur L. Schramm, Director, Institute for Commu-
nication Research, Stanford University, Palo Alto,
Calif.
Congressional Advisers
Senator George McGovern
Senator Milward Simpson
Representative Harold Cooley
Representative Edith Green
Representative Peter Frelinghuysen
UNESCO was established in 1946 to help
promote international understanding through
cooperation among nations in educational,
scientific, and cultural fields.
NOVEMBER 16, 1964
715
Eastern Europe: A Region in Ferment
by George C. McGhee
Ambassador to the Federal Republic of Germany ^
Wlien I was asked to participate in the sym-
posium lield eacli year here in Kassel, I accepted
with gi-eat pleasure. This was in no small part
because it gave me a welcome opportunity to
return to Kassel — a city in which I have long
had a deep interest. I was much impressed
by the visit my family and I paid to your city
not long ago, when we had the opportunity
to see the excellent collection of modem art
assembled for the exhibition Documenta III.
The outstanding nature of that exhibition is a
great tribute to Professor Bode — its foundei- —
and to Kassel.
Now your invitation enables me to become
better acquainted with another of KassePs
achievements: its forward-looking program
for young people. I congi-atulate you on tliis
endeavor. To my mind, it is especially im-
portant that the lising generation in the free
world, and in particular the young people of
free Germany, become acquainted with the is-
sues which will for the foreseeable future dom-
inate our times.
Today I want to discuss with you the situa-
tion in the countries of Eastern Europe and the
policy of my Government toward these coun-
tries. Eastern Europe is an area of great im-
portance— not only for my country but also for
yours and for all of Western Europe. "Wliat
is happening there foreshadows new challenges
that we shall have to face — and new opportuni-
ties that we shall want to grasp.
^Address made at Kassel, Germany, on Oct. 13 at a
symposium sponsored by the Youth Program of tlie
City of Kassel and the America House, Kassel.
Let me make clear at the outset, however, that
my discussion will not include the situation in
the So\-iet Zone of Germany. This is not be-
cause the zone does not pose important prob-
lems— and ones which should be discussed. In-
deed, the problem created by the division of
Germany is one of immense concern — to us as
well as to you. On June 26 of this year we
joined with the British and French in pointing
out, in the tripartite declaration,- that we are
convinced that there can be no security or sta-
bility in Europe so long as Germany remains
disunited. Although the general situation in
Eastern Europe is not without relevance to the
zone, much of what I have to say about the
countries of Eastern Europe would be mislead-
ing at best if applied to the zone. The zone
is not a country — but the dismembered part of
one — and is imique in other important respects.
Even with this reservation, the subject of
Eastern Europe remains almost too large to
cover within the limits of a smgle lecture. I
believe that all intelligent observers and students
of the area will agree that Eastern Europe can
no longer be described in terras of simple or
static conditions. Moreover, the changes which
are taldng place in that part of Europe are of
a kind which make it less and less meaningful
to speak of the region in broad generalizations.
Eastern Europe is now characterized by in-
ternal disparities — rather than by homogeneity ;
by contrasts between its states in development —
rather tlian by their identity. One must con-
- For text, see Buixetin- of July 13, 1904. p. 44.
716
DEPARTMENT OF STATE BULLETIN
sider tlie countries of Eastern Europe one by
one.
Eastern Europe in Stalin's Time
Before we do that, however, it may be useful
to compare the present situation in Eastern
Europe with that which existed in Stalin's time.
Stalin tried to build in Eastern Europe a base
from which the Soviet Union ultimately could
extend its control into Western Europe. To
consolidate that base, he attempted to seal off
Eastern Europe from the free world. Soviet-
patterned police apparatuses terrorized the
unfoi-tunate peoples of the Eastern European
countries. Their widely varyin<i: economies and
national institutions were forced into a single
Procrustean mold — so their resources could be
more easily exploited to the advantage of the
Soviet Union. Polish coal, Rumanian oil, and
Czech uranium all were drained off for Soviet
use. The agriculture of Eastern Europe was
thrown into cliaos and its productivity dimin-
ished by collectivization — to fit Stalin's blue-
print of uniformity.
Imposed by force, unifonnity was maintained
by terror. Eastern Communist leaders who
dared to question Stalin's disregard of differing
national needs quickly disaj^peared — liquidated
or otherwise put out of the way. Tlie Iron Cur-
tain clanged down on whatever hope the Eastern
European peoples had had of preserving their
traditional contacts witli the "West. To all out-
side appearances, the Eastern European coun-
tries became featureless puppets, witliout voices
or identities of their own. Indeed, at times it
seemed that they were only one short step from
disappearing from the international scene en-
tirely— perhaps to reemerge as parts of the
Soviet Union.
The Trend Toward Independence
It is now plain, however, tliat Stalin ulti-
mately failed in his purpose of hammering the
nations he dominated into a single, lasting,
monolitliic bloc. He permitted no manifesta-
tion of the forces of national consciousness and
self-interest in Eastern Europe, but he could
not destroy the forces themselves. Combined
with the very human yearning for freedom and
a better life, these forces have now cracked
the monolith. The countries of Eastern Europe
are becoming progressively less isolated from
the West. Their natural and national diversi-
ties are asserting themselves more and more.
Stalin's monolith did not even last out his own
time. Yugoslavia, as you will recall, extricated
itself f i-om it as early as 1948 — and stayed out, to
Stalin's lasting but impotent fury. Although
Yugoslavia has recently improved its relations
witli Moscow, it has retained its independence
in political, military, and internal affairs. It
belongs to no military pact ; however, it is influ-
ential in the nonalined world and has friendly
relations with us and other Western nations.
Altliough you do not have diplomatic relations
with Marshal Tito, we are glad to see the better-
ing of German- Yugoslav relations. We wel-
come the recent signing of agreements between
the Federal Republic and Yugoslavia extending
and supplementing the trade agreement of 1952.
In the sphere of domestic policy, Marshal Tito
clearly is pursuing his announced goal of follow-
ing what the Communists call "the national path
to Socialism." Yugoslavia, indeed, has as-
sumed some of the aspects of a free-market econ-
omy ; it has granted more autonomy to individ-
ual cooperative enterprises; it has increasingly
liberalized its foreign trade regulation and has
largely replaced its important licensing system
with a fixed tariff which, incidentally, is based
on the same Brussels tariff chassification as the
common external tariff of the European Eco-
nomic Community. More than 70 percent of
Yugoslavia's foreign trade is with the West.
Yugoslavia has since 1959 participated in the
General Agreement on Tariffs and Trade — •
GATT — and is now taking part in the Kennedy
Round of tariff negotiations. Foreign trade is
gradually being decentralized — by allowing
some factories to deal directly with foreign cus-
tomers and to make purchases abroad with for-
eign curi-ency earned through exports.
In Poland the trend toward independence be-
came visible some 8 years ago. In 1956 national
feeling, and problems arising from tlie applica-
tion of Communist theory, forced its rulers to
move away from orthodoxy and complete sub-
ordination to Moscow. Although the church in
Poland is still subject to controls and restraints.
NOVEMBER 16, 1964
717
it retains its role as a vital element in the life of
the people. Poland has not followed other
Communist states in collectivizing agriculture;
85 percent of the farmland in the country is in
private hands. Poland, too, has since 1959
been participating in the work of the GATT
and is adjusting its foreign trade policies to the
requirements of trading with the free-market
countries of the West ; it also expects to play a
role in the Kennedy Round.
Recent developments in Rumania have also
been significant and demonstrate the desire of
the Government and the people for greater
independence.
In other Eastern European countries there
are likewise indications that the governments
are aware of and trying to adjust to the de-
mands of the population for a bettering of their
lot. In Hungary moderating internal reforms
and efforts at national conciliation have resulted
in solid improvements for the people. All the
Eastern European countries seek increased trade
with the West — and have, as a group, shown
considerable gains in this respect since 1955,
with an increase in total trade with the West
from roughly $2 billion in 1955 to $4 billion in
1963. These figures are fairly evenly divided
between exports and imports. The 1963 level
of $4 billion is close to that in 1938, although
allowance must be made for the change in prices.
Encouragement of Tourism
Most of the Eastern European countries have
particularly encouraged tourism. In addition
to encouraging tourists to come to their coun-
tries, which is of direct economic usefulness to
them, they are also permitting their own people
more travel abroad. They have shown interest
in developing cultural and other exchanges with
the West. In short, most of Eastern Europe
is making an increasingly successful effort to
restore communication with the rest of Europe
and the West.
I would like to state here my conviction that
tourism itself, on a sufficient scale, can exert a
most powerful influence in bringing about con-
structive change in the Eastern European na-
tions. Tourism not only provides income to
these countries but also provides opportunities
for promoting better understanding and friend-
ship. In 1961 the Eastern countries coimted
513,000 tourists from Western Europe and
North America. This represented about 25
percent of all visitors from all countries and
included 39,000 Americans. Although fully
comparable data are not available for 1962, we
estimate that the number of Western visitors to
Eastern Europe increased by about 20 percent
in that year.
Quite clearly, personal contacts with tourists
make Eastern Europeans more aware of con-
ditions in the free world as they really are —
and not as misleading propaganda has presented
them for almost a generation. Some of the
Eastern European governments now bring in
Western newspapers for use by visitore. The
Eastern European governments realize that, if
they are to attract tourists, they cannot as in the
past subject visitors to police-state methods;
indeed, powerful restraints are placed on them
in their treatment of their own citizens.
Tourism has, moreover, certain long-range
economic effects in addition to the obvious one
of providing an attractive and readily expand-
able source of foreign exchange for the coimtry
visited. Taking care of tourists requires a con-
siderable capital investment in facilities and
services, and once a flow of tourists has been
started it cannot be stopped without wasting
the initial investment, as well as losing current
income. For this reason, I believe the develop-
ment of tourism in Eastern Europe is likely to
provide a basis for enduring links with the
West.
I caution again that any generalization about
Eastern Europe must be closely examined for
its validity in relation to each country. Signs
of change are less striking in certain countries
than in others. Albania, for example, is so far
out of step with its neighbors that it finds itself
isolated in Eastern Europe — and in league with
Red China. Albania provides additional evi-
dence of the breaking up of the Soviet bloc.
It is also necessary to I'emember that the
evolution within individual countries has not
been a uniform process. There have been
changes in approach and reversals in trends.
They illustrate the ebb as well as the flow of
tlie process we have been discussing. In short,
the political evolution of Eastern Europe has
718
DEPARTMENT OF ST.VTE BULLETIN"
proceeded at an uneven pace — but it is
proceeding.
Factors Contributing to Change
Students of the Communist world have been
much intrigued by these developments in East-
em Europe. Their assessment of the reasons
for the changes there should be interesting for
all of us. They conclude that one of the most
likely causes for what has happened has been
the monumental mismanagement by Marxist
theoreticians of the economies of the various
Eastern European Communist countries. Fol-
lowing years of economic troubles, in which
governments failed to increase — in some in-
stances, even to maintain — the material well-
being of the population, popular resentment has
exerted irresistible pressures for change.
The contrasting spectacle of economic dy-
namism and social progress in the free Western
nations has exerted a profound influence. The
swift postwar recovery and continuing rise of
living standards in Western Europe — particu-
larly in Germany — have had a magnetic effect
on the people of Eastern Europe and their
leaders. This is one of the reasons why there
is an inevitable attraction of the Eastern states
toward the West.
We must also acknowledge that Stalin's suc-
cessors, some of whom fortmiately did not fully
share his relentless and brutal grasp of the
mechanism of tyranny, found themselves un-
able to hold shut the gates against the floodtide
of desire for change. They repudiated Stalin's
bloody methods — though they were ready
enough in Hungary in 1956 to use repression
and bloodshed to stop an evolution which had
become a revolution. However, the new wield-
ers of Soviet power obviously foresaw that, if
they were to have any hope at all of holding on
in Eastern Europe, change was inevitable.
One factor which has undoubtedly played an
important role is the example of Yugoslavia.
That country's determination to assert its in-
dependence has encouraged those in other East-
em European nations who have followed the
Soviet Union to feel their way, albeit in some
cases cautiously, toward courses of action more
in keeping with their own national interests.
Finally, I think we must inevitably conclude
that the present rift between Commimist China
and the Soviet Union is a contributing factor
toward change in Eastern Europe. As the two
giants of the Communist world exchange in-
sults and threats, the comitries of Eastern
Europe clearly feel increasing freedom of ac-
tion. While maintaining its identity with
communism — in most cases Soviet commu-
nism— each country tries to act as independently
as it can within the limits of tolerance it feels
it lias.
Whatever the causes, the process of change
in Eastern Europe is bound to continue. The
question facing all of us in the West is: How
are we to deal with this development? Wliat
should be our policy objectives in Eastern
Europe, and how are we to achieve them ?
In formulating a policy, there are, I believe,
several elements which we must keep in mind.
Wlien we use the phrase "Eastern Europe" we
should stress the second word — "Europe." For
after all, Eastern Europe is a part of Europe —
a fact that is becoming increasingly apparent
as the pattern of diversity, which the free West
has never lost, begins once again to assert itself
in the East.
Nor is the evolution toward conjimction with
the West limited to gross appearances. The
Eastern European nations want to do business
with the W^est; their economic systems must
perforce be adapted to an extent which will
enable them to do so with some degree of effi-
ciency. I do not suggest that the Marxists of
Eastern Europe will become champions of free
enterprise. Under the influence of commerce
with the West, however, the economic institu-
tions of Eastern Europe will inevitably become
increasingly modified.
Similarly, cultural and other exchanges will
help to revive a consciousness of European iden-
tity which is deeply rooted in the Eastern na-
tions. For centuries the arts, literature, his-
tory, and traditions of the Eastern countries
were closely intertwined with those of the rest
of Europe. Polish, Czech, and Hungarian
musicians — Paderewski, Chopin, Dvorak, Liszt,
and others — rank with their Western European
contemporaries. One recalls the historic role
King John Sobieski of Poland played in pre-
serving Europe — both East and West — and
NOVEMBER 16, 1964
719
European culture from the invading Turkish
armies, nearly 300 years ago.
Your own countiy has strong traditional ties
with Eastern Europe. There are many exam-
ples in the East of the influence of German cul-
ture. Germany has traditionally been a major
importer of i)roducts from Eastern Europe —
and a major supplier of industrial products to
that area. My Government welcomes the imag-
inative efforts of the Federal Republic to estab-
lish the foundations for improved relations be-
tween the Federal Republic and the countries of
Eastern Europe. By negotiating trade agree-
ments and establishing trade missions on a re-
ciprocal basis witli several of these countries —
Poland, Rumania, and Hungary — the Federal
Republic is improving the ties which Germany
has in the area. German trade with the area
has been maintained at a healthy volume — well
over half a billion dollare a year. This is a
field in which Germany can take an important
role in the interest of the West as a whole. At
the same time Germany can contribute to the
security and stability of all Europe. We wish
you well in this significant undertaking.
We hope that the identity of the Eastern na-
tions with Europe will be borne in mind as
Western Europe moves toward economic inte-
gration through the European Economic Com-
munity. This development causes many prob-
lems for the countries in the East, many of
whose traditional trade patterns are being dis-
turbed. This is a problem that must be faced
if the favorable trend of events in Eastern
Europe is to continue.
I am aware that there are those of the West
who would like to erect a wall between the West
and the whole Communist world — the effect of
which would be to deliver Eastern Europe into
Moscow's hands in perpetuity. These same peo-
ple would have us follow one simple, basic policy
toward all Communist countries. They would
have us treat Albania as we would Poland, and
vice vei'sa.
The policy followed by my Government is far
more complex and, I believe, far wiser. We are
tiying to encourage evolution within the Com-
munist world toward national independence,
peaceful cooperation, and open societies. We
are trying to help promote a trend of develop-
ments in Eastern Europe which can, if advanced
sufficiently, lead to ending the division of Eu-
I'ope and, as an inevitable corollary, the division
of Germany. We believe that we can best pro-
mote these objectives by a flexible policy which
takes account of the differing behavior of the
various Communist countries — or the changing
behavior of any one country. In our view, a
rigid policy would not fit situations which in
fact vai-y from country to country, nor would
it be taken as a sign of strength by our adver-
saries. Our policy reflects, not weakness or in-
decisiveness, but the flexibility that can be af-
forded by those who are strong.
In all this there is nothing hostile to the Soviet
Union — no intention to marshal the little Euro-
pean nations against the Soviets. I think we
all recognize that these countries must have sat-
isfactoi-y and friendly relations with their giant
neighbor to the East if they are to have any per-
manent sense of security. "VMiat I am ad\-ocat-
injr is the encouragement of conditions in East-
ern Europe which would allow its member states
to enter freely into relationships with both East
and West — but under conditions determined by
their own natural interests and not from coer-
cion.
U.S. Policy Toward Eastern Europe
Specifically, American policy toward Eastern
Europe has the following objectives:
(a) To see its peoples fully independent,
prosperous, and restored to their natural and
historic relationship with the rest of Europe
and the free world. This concept is founded on
our conviction that the achievement of self-
determination in Eastern Europe, as every-
where, is essential to the establishment of a
just and lastingly secure world order.
(b) To encourage a progressive loosening of
external authority and control over tlie Eastern
European countries and a continuation of the
present trend to national autonomy and diver-
sity. Such an evolution is a slow road but one
which runs in the right direction — toward ulti-
mate freedom and independence.
(c) To encourage developments wliich would
enable the peoples of Eastern Europe to deter-
mine freely their own forms of government and
to enjoy (he fruits of national independence.
720
DEr.\KTMENT OF STATE BULLETIN
This -svould contribute to the peace of Europe
by leading to a more normal, stable, and healthy
relationship between these people and their
neighbors, including not just the West but the
Soviet Union.
What, concretely, are the means the United
States has adopted to carry out its policy to-
ward the Eastern European states? In essence,
we have sliaped our actions to the ditfering re-
quirements and opportunities of each case. In
some instances initiatives to improve relations
with the United States have come from the East-
ern European countries themselves. We have
welcomed and responded to them when there has
been real evidence of a desire to better tlie state
of affairs between us. In this connection it is
significant that the jamming of the Voice of
America in Eastern Europe has almost ceased.
We have responded to the progress in Poland
toward national independence by extending
most-favored-nation treatment in trade and
sui^plying agricultural products under Public
Law 480.
Rumania's recent eifort to expand its trade
and other contacts with the West has included
steps to improve relations with the United
States. We are responding accordingly. In
May of this year the United States and Ru-
mania engaged in a comprehensive review of
mutual relations and agreed on a number of
specific measures to benefit trade and travel, as
well as scientific and cultural exchanges be-
tween the two countries.' We are watching
developments closely in the other countries of
Eastern Europe and will do what we can to
encourage any tendencies to improve the lot of
their people.
Let me stress again that what we see in East-
em Europe are trends — not a new world already
in existence. Our policy by no means over-
looks the tragic fact that these countries are
still Communist-ruled. Americans have too
many historic, jDersonal, and cultural ties with
Eastern Europe not to be sympathetically
aware that there has as yet been no free expres-
sion of popular will in that area. There re-
main deep diiferences between the governments
of Eastern Europe and the West. And inso-
far as these Communist governments remain
"Ibid.. .Tune 15. 1064, p. 924.
committed to world revolution, our policy takes
that fact, too, into account.
This policy is formulated in the full knowl-
edge that communism is a tyrant over peoples
and a danger to the peace of the world. Yet it
is formulated also in the belief — of which East-
ern Europe has given concrete proof — that the
domains over which connnunism rules are not
inhabited by peoples in whom the desire for
freedom is dead. These two truths dictate the
course we follow, one of clear principle ex-
pressed in carefully graded actions. Commu-
nism's attempts to achieve greater power in the
world we oppose with all our strength. Move-
ment toward national independence and greater
lil>erty within nations in the Communist sphere
we encourage with the peaceful means at our
disposal.
This is not the easiest policy to pursue but
is certainly the wisest. It requires a constant
exercise of judgment, a careful weighing of
actions which may appear supei-ficially similar
but have opposite results if applied in dissimilar
circumstances. It is not a policy which lends
itself to slogans. Its pursuit demands patience
and unflagging attention to detail. If we per-
sist in it, however, we shall find that the fer-
ment in Eastern Europe will yield a new wine
of hope in a vintage season that is approaching.
United States Expresses Concern
About Problem of Rhodesia
Department Statement ^
Tlie United States Government has followed
the course of events in Rhodesia with intense in-
terest and moimting concern.
We have on frequent occasions expressed our
hope that a solution would be found to the
Rhodesian problem acceptable to the majority
' Read to news correspondents on Oct. 28 by Robert
J. MoCloskey, Director of the Office of News. I^ter
that day the statement was also read at the United
Nations by U.S. Repre.sentative Marietta P. Tree be-
fore the Special Committee on the Situation With
Regard to the Implementation of the Declaration on
the Granting of Independence to Colonial Countries
and Peoples (Committee of 24) (U.S./U.N. press re-
lease 4459) .
N0VE3IBER 16, 196 4
721
of the people. We continue to hope that Rho-
desia will gain independence as a united nation
with a government based upon the consent of
the governed. We have been encouraged by
the forthright position taken by the British
Government in insisting that it would not sanc-
tion independence for Rhodesia until satisfied
that the people have been allowed the full exer-
cise of self-determination. Prime Minister
[Harold] Wilson's message to the Rhodesian
Prime Minister [Ian Smith], published yester-
day [October 27], makes clear some of the
serious consequences which could befall all Rho-
desians should their Government continue to
follow its present course.
The United States hopes that the Rhodesian
Government will continue to discuss with the
United Kingdom Government ways to achieve
a satisfactory solution.
Mr. Coffin Represents U.S.
at Cameroon Railroad Ceremony
The Department of State announced on
October 29 (press release 475) that Frank
Coffin would represent the United States at the
spike-driving ceremony to be held at Yaounde,
Cameroon, on October 31 to mark the com-
mencement of a 190-mile construction project
to extend the Trans-Cameroon Railroad north-
east from the capital.
This project is a pioneer effort in interna-
tional cooperation for development assistance.
The United States is contributing to the project
with a $9.2 million loan. Tlie European De-
velopment Fund of the European Economic
Community (EEC) is making a grant worth
$17.25 million ; the French Government is con-
tributing about $8.4 million in grants and loans,
and the Cameroon Government has allocated
some $2 million of its own resources for the
extension.
A railroad line now extends from the port
city of Douala inland to the capital city of
Yaounde. The new extension will run north-
east from the capital to Belabo and is expected
to open up the interior of Cameroon to economic
development and eventually provide a new trade
route to Chad and the Central African
Republic.
Mr. Coffin is U.S. representative to the Devel-
opment Assistance Committee (DAC) of the
Organization for Economic Cooperation and
Development (OECD) at Paris.
U.S. Joins in Independence
Ceremonies in Zambia
MESSAGE FROM PRESIDENT JOHNSON
Following is the text of a congratulatory
msssage from. President Johnson to President
Kenneth D. Kaunda of Zamhia, whose country
gained its independence on Octoher 2^. The
message was delivered to President Kaunda on
October 26 hy President Johnson^s Personal
Representative, Charles W. Engelhard.
White House press release dated October 26
October 26, 1964.
Dear Mr. President: I extend to you and,
through you, to the people and Government of
Zambia the sincere best wishes of the American
people and Government. We rejoice that Zam-
bia has become free and now joins the other
indejjendent states of Africa in seeking a better
life for its people.
During the past ten years the United States
has warmly and sincerely welcomed many Afri-
can states into the community of nations. As
we welcome Zambia to this community and ex-
tend our congratulations to the people of Zam-
bia, we wish to express our personal admiration
to you, Mr. President, for the vital role j'ou
played during the recent years of preparation
for this joyous occasion.
We especially admire your success in achiev-
ing mutual cooperation and understanding
among the different racial elements in Zambia.
We sincerely hope that this achievement will
be taken as a lesson and example by the entire
world. Our interest in your example is greatly
heightened by our own efforts to eliminate racial
discrimination in the United States.
The American nation seeks constantly to fos-
ter the development of free nations cooperating
722
DEPARTMENT OF STATE BUnLLETlN
for their mutual benefit. We encourage the
building of world and regional institutions for
joint action and cooperation. "We seek the elim-
ination of violence and aggression of any sort
in relations among nations, and we support the
economic and social development of each nation
in the interest of the development of all nations.
We believe that this community of free nations
can fully achieve the universal goals expressed
in the United Nations Charter only when all
governments are based on the consent of the
governed. We know that Zambia shares these
objectives with us. We look forward to close
cooperation with you and your Government in
pursuing these mutual objectives in the coun-
cils of the world and in our relations with each
other.
Zambia's independence will permit us to
strengthen the ties of friendship and coopera-
tion which have been built up between Zam-
bians and Americans over many years.
With every possible good wish for the future
success and well-being of Zambia and its people,
I extend personally to you and to your Govern-
ment my warmest congratulations for all that
you have accomplished thus far. I pledge my
friendship and that of my people and country
in the years ahead.
Sincerely,
Lyndon B. Johnson.
PRESENTATION OF INDEPENDENCE GIFT
Following is the text of a statement made by
Mr. Engelhard at Lusaka, Zambia, on October
26 at the, 'presentation of the U.S. independence
ff'ff-
Press release 471 dated October 26
Mr. President, in these glorious times in Zam-
bia's history, I am both pleased and proud to
present to you 25 ambulances for use in your
rural health program. They are a gift from
the people of the United States to the people of
Zambia. Please accept them as a token of the
good wishes and sincere friendship whicl). the
American people hold for you and for all the
people of Zambia.
The United States has long pursued a policy
of cooperating with developing nations — old
and new — in their efforts to advance the well-
being of their peoples. I trust that tliese ambu-
lances will prove to be a fitting symbol of our
desire to woi-k with your country toward the
achievement of mutually beneficial goals.
President Johnson recently stated that the
mastery of technology has helped men to learn
that poverty is not inevitable, that disease and
hunger are not the laws of nature. Your coun-
try has given ample evidence of its determina-
tion to strike out against disease, poverty, and
illiteracy. Your determination is symbolized
for the world to see in Zambia's coat of arms by
the soaring eagle rising above the country's
problems. It is demonstrated in the self-help
projects currently in progress in Zambia.
Zambia is a nation of great promise. The
importance that your Government places on the
health, training, and education of its people is
the best portent for a productive and happy
future — a future of progress and freedom for
Zambia and a future in which Zambia will be
able to make significant contributions to the
advancement of the univei-sal goals embodied in
the Charter of the United Nations.
Report Released on Program
To Develop Desalination
Statement by President Johnson
White House press release dated October 25
I am pleased to release the report of the Sec-
retary of the Interior and the Chairman of the
Atomic Energy Commission, made at my re-
quest, on a proposed program for developing
the technology to desalt sea water economically.^
The demand for water is increasing steadily
throughout the world. Water shortages in some
sections of this country threaten to restrict fur-
ther economic development. This problem is
even more acute in many arid, developing coun-
tries where future economic growth is abso-
lutely dependent upon finding new sources of
fresh water. Within the next decade desalted
water will be the cheapest — in some cases the
' A limited number of copies of each section of the
report are available upon request from the Department
of the Interior and the U.S. Atomic Energy Commis-
sion, Washington, D.C.
723
only — way to obtain new water supplies in many
areas.
The record shows that the United States
stands ready to share its technology in this
field with other nations. We have already be-
gun cooperative studies with Israel, Mexico,
and the Soviet Union,^ and have actively par-
ticipated on the panel on the use of nuclear
enei-gy for desalination of sea water of the
International Atomic Energy Agency. As
President Kennedy stated over 2 years ago,^
There is no scientific brealithrough, including the trip
to the moon, that will mean more to the country which
first is able to bring fresh water from salt water at a
competitive rate. And all those people who live in
deserts around the oceans of the world will look to the
nation which first makes this significant break-
through. . . .
We have a lot of work to do to bring this
technology to a useful stage, as this report
shows. We have had a good program in the
past, but we are going to ask the Congress for
some more money so that we can learn how to
produce desalted water more economically.
This report will serve as a useful guide.
U. S. and Israel To Share Cost
of Detailed Survey on Desalting
MEMORANDUM OF UNDERSTANDING
statement by President Johnson
White House press release (New York, N.Y.) dated October 15
I am pleased to announce that the Govern-
ments of the United States and Israel have
agreed to a second step toward tlie solution
of Israel's critical water needs.
The first step was taken last June when Prime
Minister Eshkol and I established a joint United
States-Israeli study team to conduct technical
surveys.' These have already been comjjleted.
Now we have agreed that our Govermnents
will share equally in the cost of a detailed engi-
'For text of a joint U.S.-U.S.S.R. memorandum, see
Buu-ETIN of Aug. 3, 10G4, p. 144.
"At Los Hanos, Calif., on Aug. IS, 1902. during
ground-breaking ceremonies for the San Luis Dam.
' For background, see Bxtlletin of June 22, 19C4,
p. 958; June 29, 1904, p. 1001 ; and Aug. 17, 1904, p. 230.
neering study for a large water desalting proj-
e<"t to meet Israel's pressing demands for more
fresh water.
Both Governments will promptly issue invi-
tations to American engineering consulting
firms to participate in the second step. A joint
board, with each Government equally repre-
sented, will assist in making the selection and
will oversee the effort.
Text of Memorandum
Press release 450 dated October 15
Having examined the recommendations of
the Joint Israeli-United States desalting team,
the undersigned affirm the following Principles
of Understanding:
1. That an invitation for proposals for the
undertaking of a detailed feasibility study by
a consulting engineering finn should be issued
promptly by the Governments;
2. That, based upon review of the proposals,
and intei'views if necessary, an engineer be
selected and an appropriate contract acceptable
to both Governments be executed ;
3. That the cost of the engineering study be
shared equally by the two Governments;
i. That a Joint Board, consisting of an equal
number of representatives from each of the
Governments (with a representative of the In-
ternational Atomic Energy Agencj' as an ob-
server) , be appointed to prepare the in^-itation,
make recommendations for selection of the engi-
neer and the terms of the contract, and to per-
fonn such other functions in relation to the
engineering contract as will later be defined by
the Governments, and to make recommenda-
tions to the two Governments.
Done at Washington in duplicate this four-
teenth day of October, 1964.
IVENNETH HOLTJM
Acting Secretary
United States Department of the Interior
Glenn T. Seauoro
Chmnnan
United States Ato7nic Energy Corrvmission
AvR.\HA5I HaRJIAN
Ambassador of Israel
General Z\t Zur
Pri?ne Minister of Israel's Coordinator
of the Water Desalting Project
724
DEI'ARTMENT OF STATE BULLETIN
REPORT OF JOINT TEAM OF EXPERTS
White House press release dated Oetoher 20
Tlio teuni of American and Israeli experts,
appointed by the Goveninients of the United
States and Israel in connection with the joint
United States-Israel water desalting program
agreed upon by President Jolmson and Prime
Minister Eshkol in June, has concluded its work
in Wasliington and presented its joint report to
the two Governments.
The joint team of experts in its report iinder-
lined in its findings that a nuclear dual-purpose
power and desalting plant would offer an attrac-
tive solution for Israel's short-term water prob-
lems, and tliat the development and construction
of such a plant would constitute a significant
contribution to the development of the art of
desalting and further its application in other
parts of the world.
The joint team recommended that the Gov-
ernments of the United States and Israel, with-
out delay, engage the services of a consulting
firm to prepare detailed studies. The purpose
of these studies should be to review the economic
feasibility and develop the engineering for a
dual-purpose plant to the point which will pro-
vide necessary data for appropriate decisions.
The joint team also recommended the ap-
pointment of a joint board to assist in the selec-
tion of the consulting engmeer, to be available
to instruct and consult with the engineer, to
I^rovide the engineer with data from related
development work of government agencies, and
to make recommendations to the Governments
of the United States and Israel.
The joint team further recommended that the
appropriate desalting development programs
of the Govermnents of Israel and the United
States be coordinated to the extent possible to
provide the maximum mutual benefit and that
liaison be maintamed through the joint board.
In its report, the joint team recommends that
the engineering consultant study alternative
dual-purpose plants which would provide be-
tween 175 and 200 megawatts of electricity and
between 125 and 150 million cubic meters of
fresh water each year (4 cubic meters of water
approximate 1,000 gallons) .
The joint team's report envisages that the
engineering study, recommended for immediate
implementation, would be completed by mid-
19G5, at which time the two Governments would
consider further stejjs.
As stated in the joint communique of June
11, 1964, it is hoped that on the basis of this
study an economic desalting project of mutual
technological interest will be undertaken in
Israel with the active participation of the
United States.
In its findings, the joint U.S.-Israel team
states that such a desalting plant would be many
times larger than any plant now in commercial
operation. It also states that the construction
of a prototype desalting plant, or at least par-
tial modules of a prototype, may prove essential
for a successful and economic design of a full-
scale plant. It is anticipated that the existing
programs of the United States and Israel will
include required development and testing work.
The joint team of experts was appointed fol-
lowing tlie agreement between President Lyn-
don B. Johnson and Prime Minister Levi Esh-
kol in June 1964 and commenced its duties in
Israel in July 1964. The U.S. members of the
joint team are: Milton Chase; Stewart Mul-
ford; Irving Spiewak. The Israeli members
are : Aharon Wiener ; Chaim Cats ; Reuven
Thieberger. By invitation of the Governments
of the United States and Israel, the Interna-
tional Atomic Energy Agency nominated as its
observer Michael D'Orival, and he participated
in all the proceedings.
The joint team held its first series of talks in
Israel from July 27 imtil August 12. During
this period the team reviewed the requirements
of Israel for water and electricity for the next
decade, visited electrical and water installations,
and studied possible sites for a dual-purpose
plant for the production of electricity and de-
salted water. The first joint meeting of the
U.S.-Israel team of experts was presided over
by Prime Minister Levi Eshkol.
The joint team began the second series of its
meetings on September 23 in Washington. The
Israeli side was headed by General Zvi Zur,
who has been appointed recently by Prime Min-
ister Eshkol as chief coordmator for the Israeli
desalting project.
The joint team conducted a wide-range review
of the experience that had been recorded so far
in the United States and in Israel in the fields
NOVEJrBER 16, 19 64
725
/
of desalting and the use of nuclear energy for
single- and dual-purpose plants. The joint
team paid visits to the Wrightsville Beach ex-
perimental plant of the Office of Saline Water
in North Carolina and to the Oak Ridge Na-
tional Laboratory of the U.S. Atomic Energy
Commission in Tennessee.
The joint team held talks with representatives
of about 15 American engineering and manu-
facturing firms specializing in the fields of nu-
clear reactors and desalting units.
The engineering firm which will implement
the technical and economic feasibility study is
expected to commence its work later this year.
TREATY INFORMATION
Current Actions
MULTILATERAL
Declaration of provisional application: Portugal, Oc-
tober 29, 1964.
Special agreement. Done at Washington August 20,
1964. Entered into force August 20, 1964. TIAS
5646.
Signature: AdministraQao Geral dos Correios, Tel6-
grafos e Telefones for Portugal, October 29, 1964.
Wheat
International wheat agreement, 1962. Open for signa-
ture at Washington April 19 through May 15, 1962.
Entered into force July 16, 1962, for part I and parts
III to VII, and August 1, 1962, for part II. TIAS
5115.
Accession deposited: Sierra Leone, October 26, 1964.
BILATERAL
Luxembourg
Agreement amending annex B of the mutual defense
assistance agreement of January 27, 1950 (TIAS
2014). Effected by exchange of notes at Luxem-
bourg September 24 and 30, 1964. Entered into force
September 30, 1964.
Paraguay
Agreement for financing certain educational exchange
programs. Signed at Asuncion August 20, 1963.
Entered into force: October 1, 1964.
Agreement for financing educational exchange pro-
grams, as amended (TIAS 4813). Signed at Asun-
cion April 4, 1957. Entered into force June 26, 1957
(TIAS 3856).
Terminated: October 1, 1964 (superseded by agree-
ment of August 20, 1963, supra).
Coffee
International coffee agreement, 1962, with annexes.
Open for signature at United Nations Headquarters,
New York, September 28 through November 30, 1962.
Entered into force December 27, 1963. TIAS 5505.
Accession deposited: Luxembourg, June 29, 1964.'
North Atlantic Treaty — Atomic Information
Agreement between the parties to the North Atlantic
Treaty for cooperation regarding atomic information.
Done at Paris June 18, 1964.''
Notification received that it is tcilling to he bound
hy terms of the agreement: France, October 27,
1904.
Oil Pollution
Amendments to the international convention for the
prevention of pollution of the sea by oil, 1954 (TIAS
4900). Done at London April 11, 1962.=
Acceptance deposited: Ghana, October 19, 1964.
Satellite Communications System
Agreement establishing Interim arrangements for a
global commercial communications satellite system.
Done at Washington August 20, 1964. Entered into
force August 20, 1964. TIAS 5646.
Signature: Portugal, October 29, 1964.'
' Included in accession for Belgium.
' Not in force.
' Subject to approval.
Check List of Department of State
Press Releases: October 26-November 1
Press releases may be obtained from the Office
of News, Department of State, Washington, D.C.,
20520.
Releases issued prior to October 26 which ap-
pear in this issue of the Bulletin are Nos. 450
of October 15 ; 463 of October 21 ; and 467 and
468 of October 23.
Sobject
Engelhard : presentation of U.S.
independence gift to Zambia.
U.S. participation in international
conferences.
Castro sworn in as Ambassador to
El Salvador (biographic details).
Cotton textile agreement with
Spain.
Delegation to Trans-Cameroon
Railroad extension ceremonies
(rewrite).
♦Not printed.
tllcUl for a later issue of the Bulletin.
No.
Date
471
10/2G
*472
10/26
♦473
10/26
t474
10/30
475
10/29
726
DEPAHTMENT OF STATE BULLETIN
INDEX November 16, 196Ji. Vol.LI,No.l325
American Republics. U.S. Reports on Success of
Alliance for Progress (Johnson, Mann) . . . 705
Atomic Energy. U.S. and Israel To Share Cost
of Detailed Survey on Desalting (Johnson,
memorandum of understanding) 724
Cameroon. Mr. Coffin Represents U.S. at Cam-
eroon Railroad Ceremony 722
Communism. Eastern Europe : A Region in Fer-
ment (McGhee) 716
Cyprus. Some Reflections on the United States
in the United Nations (Talbot) .<..... 700
Economic Affairs
Progress and Prospects in International Eco-
nomic Cooperation (G. Griffith Jolinson) . . 708
U.S. Comments on British Measures To
Strengthen Economy (statements by State De-
partment and Treasury) 714
Educational and Cultural Affairs. UNESCO
General Conference Meets at Paris (delega-
tion) 715
Europe. Eastern Europe : A Region in Ferment
(McGhee) w 716
Foreign Aid
Mr. Coffin Represents U.S. at Cameroon Rail-
road Ceremony 722
U.S. Reports on Success of Alliance for Progress
(Johnson, Mann) 705
Germany. Eastern Europe : A Region in Fer-
ment (McGhee) 716
India. Some Reflections on the United States in
the United Nations (Talbot) 700
International Organizations and Conferences.
UNESCO General Conference Meets at Paris
(delegation) 715
Israel
Some Reflections on the United States in the
United Nations (Talbot) 700
U.S. and Israel To Share Cost of Detailed Sur-
vey on Desalting (Johnson, memorandum of
understanding) 724
Middle East. Some Reflections on the United
States in the United Nations (Talbot) ... 700
Non-Self-Goveming Territories. United States
Expresses Concern About Problem of Rhodesia
(Department statement) 721
Pakistan. Some Reflections on the United States
in the United Nations (Talbot) 700
Presidential Documents
19th Anniversary of United Nations 697
Report Released on Program To Develop De-
salination 723
U.S. and Israel To Share Cost of Detailed Sur-
vey on Desalting 724
U.S. Joins in Independence Ceremonies in
Zambia 722
U.S. Reports on Success of Alliance for
Progress 705
Rhodesia. United States Expresses Concern
About Problem of Rhodesia (Department
statement) 721
Science
Report Released on Program To Develop De-
salination (Johnson) 723
U.S. and Israel To Share Cost of Detailed Sur-
vey on Desalting (Johnson, memorandum of
understanding) 724
Treaty Information. Current Actions .... 726
United Kingdom. U.S. Comments on British
Measures To Strengthen Economy (statements
by State Department and Treasury) .... 714
United Nations
19th Anniversary of United Nations ( Johnson ) . 697
Some Reflections on the United States in the
United Nations (Talbot) 700
The United Nations Today (Ball) 694
United States Expresses Concern About Prob-
lem of Rhodesia (Department statement) . . 721
Zambia. U.S. Joins in Independence Ceremonies
in Zambia (Engelhard, Johnson) 722
Name Index
Ball, George W 694
Engelhard, Charles "W 722
Johnson, G. Griffith , 708
Johnson, President 697, 705, 722, 723, 724
Mann, Thomas O 705
McGhee, George C 716
Talbot, PhiUips 700
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FOREIGN POLICY
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STATE
BULLETIN
Yol. LI, No. 1326
November 2S, 1964
AMERICA'S IMAGE IN AFRICA
iy Assistant Secretary Williams 730
PROTOCOL AND PEACEKEEPING
iy Angler Biddle Duke 736
HEALTH AND SOCIAL PROGRESS IN LATIN AMERICA
ly Murat W. Williams 7^7
INTERNATIONAL COOPERATION IN OUTER SPACE
Statement hy Francis T. P. Plimfton 755
GENEVA, A CENTER OF INTERNATIONAL COOPERATIVE EFFORTS
hy Roger W. Tubhy 7Jfi
For index see inside hack cover
America's Image in Africa
by G. Mennen Williams
Assistant Secretary for African Affairs
To speak of America's image in Africa is to
speak of walking through a hall of many mir-
rors. In a continent more than three times the
size of the United States — a continent of some
265 million people and 1,000 languages, a conti-
nent of 36 independent and a number of still-
dependent countries deriving from different
tribal cultures and colonial associations — there
is no single reflection of the image of America.
In some African cities there is a higlily so-
phisticated, higUy educated urban population
which reacts quickly to events in America.
Little Rock, military protection for James
Meredith, police dogs and fire hoses used against
civil rights demonstrators, and the Civil Rights
Act — all of these have an impact in Africa as
quickly as they do in the United States.
Yet in some places, often only a few miles
' Address made before the Advertising Federation of
America's Presidents Conference at Pocono Manor, Pa.,
on Nov. 7 (press release 481).
from African urban centers, there are other
Africans whose knowledge and impressions of
America are almost nonexistent. In 1962, for
example, I recall dining with the President of a
province located deep in the heart of French-
speaking Africa. During dinner I spoke in
English to a Negro colleague a distance down
the table. I was surprised when a perplexed
provincial President's wife asked if we had
Negroes in the United States.
There are some things about America, how-
ever, that penetrate every part of the continent.
This was demonstrated vividly by the wide-
spread mourning following President Ken-
nedy's assassination. In one instance I recall
the astonishment of a European ambassador
who was several days' journey from the capital
of the country to which he was assigned at the
time of President Kennedy's death. As he
traveled through that country, which has very
limited communication facilities, he was visibly
moved to find that villages in the most remote
DEPARTMENT OF STATE BULLETIN VOL. LI, NO. 1326 PUBLICATION 7779 NOVEMBER 23, 1964
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730
DEP,tVRTMENT OF STATE BULUITIN
parts of the countrj' were flying flags at hulf-
mast in memory of President Kennedy.
This Africa of which I speak is a land rich
in resources but limited in the numbers of
skilled people available to transform its natural
wealth into higher standards of living. It is a
land of brilliant leaders, without cadres to give
implementation to that leadership. It is a land
beset by the ancient enemies — poverty, illiter-
acy, and disease. It is a land of great agricul-
tural potential but low agricultural produc-
tivity. It is a land whose peoples' annual per
capita income averages only $120. It is a land
where only 15 percent of the people can read
and write and where only four out of five chil-
dren live to become teenagers. And, impor-
tantly, Africa is a land of miiversal aspirations,
exalted dreams, and dedicated idealism — con-
tests for political power, struggling popula-
tions, and pockets of as yet imemancipated
primitiveness.
Yet, despite its present difficulties, Africa is
a continent of great significance. Its proximity
to both Asia and Europe is in itself sufficient
reason to make it important in today's world.
This fact is highlighted by the rising interest
and activity in Africa of both the Soviet and
Chinese Communists. Furthermore, in the
space age, the African Continent assiunes a
position of considerable scientific impoitance.
Africa has a special relation to the United
States because it is the ancestral home of one-
tenth of our population and is playing a key
role in the worldwide drive for equal human
rights.
Africa is important also because of its rich
economic potential, including possession of
critical metals of limited availability, and be-
cause of its close ties with the nations of
Europe.
And it is important because of its increasingly
prominent role in world affairs, as exemplified
by its soon-to-be 36 out of 115 votes in the
United Nations. '
'^"^Tiile the United States has an inlierent
friendly interest in all peoples, Africa's impor-
tance to the United States quite naturally makes
us concerned with how the peoples of that con-
tinent look upon our country. We desire to
develop the friendliest and most cordial types
of relationships with Africa's nations, and to
a large extent we have done so. But with so
many dillerent peoples who have varying inter-
ests in the many different facets of American
society, it is ob\dous that we cannot entirely
please all of the people all of the time.
How Africans Judge the U.S.
What, then, are some of the more significant
criteria by which Africans judge us?
First, and possibly most important, is the
President. Africans had a longstanding inter-
est in President Kennedy, even before he took
office, because of his 1957 Senate speech in which
he supported Algerian independence. That
speech had a tremendous impact on Africans
throughout the entire continent. President
Kennedy's early selection of a public figure to
handle the conduct of African affairs in the
State Department and sending him to meet
firsthand the peoples of the African Continent
also was taken as an indication of the Presi-
dent's strong interest in Africa. I might men-
tion as well that President Kennedy's clear
endorsement of the statement, "Africa for the
Africans," which was attributed to me in Nai-
robi in 1961. added further to his stature among
Africans. The fact that he received more Af-
rican leaders, both independent and not yet
independent, at the Wliite House than any other
President in history — and received them with
warmth and imderstanding — was another fac-
tor that endeared him to the people of Africa.
It was natural, then, that President Kemiedy's
assassination came as a tragic shock to people all
over Africa, and many Africans used the term
"our President" in expressing their grief.
President Johnson already has developed a
favorable image in Africa. For one thing, he
visited Senegal in West Africa when he was
Vice President and scored a tremendous hit
among the people he met. His own personal
wannth and natural tendency to meet with
people from all walks of life, and the outgoing
charm of his wife, are well remembered in
Africa. In addition, his vigorous efforts to
secure passage of the 1964 Civil Eights Act
substantially increased his prestige in Africa.
President Johnson's overwlielming endoree-
ment in this week's election already is drawing
NOVEMBER 23, 1964
731
many messages of congratulations from African
leaders.
A second criterion that helps shape our image
in Africa is our vast industrial, scientific, and
militaiy power. Tliese factors have earned the
United States much respect in Africa, and Af-
rican visitors to this country are impressed with
the immense size and strength of our nation.
They are visibly affected by our many universi-
ties, our large industrial complexes, our highly
developed conmiunications facilities, the intri-
cate highway networks that crisscross America,
and many other facets of American life that
many of us take for granted.
U.S. Support for African Independence
A third criterion on which we are judged is
United States foreign policy. Because we never
were a colonial power in Africa and because we
have welcomed the emergence of 32 new African
nations in the past 13 years, most Africans
would agree that our record of support for Af-
rican independence has been a good one in re-
cent years. They know well our Declaration
of Independence, for example. At the same
time, now that we are faced with hard-core
problems in such areas as South Africa, Rho-
desia, and the Portuguese territories of Angola
and Mozambique, many Africans feel we
should be doing more than we are to help as-
sure the development of govermnents freely
chosen with the consent of all the governed in
those areas.
The issue of self-government in those areas
is a very legitimate, passionate, and urgent con-
cern among all Africans. We, too, have felt
strongly that the peoples of those areas should
govern themselves, but we feel also that self-
government should come in a responsible and
fruitful manner. On the other hand, the Com-
munists can afford to take all lands of irrespon-
sible positions and actions in supporting inde-
pendence whore people are not free to choose
their own governments. Such strong, even if
impractical, Communist positions enhance the
Communist image in Africa, even among so-
pliisticated Africans who can see through the
Communist demagogy. Our policy is faced
with the challenge of maintaining effectiveness
and responsibility but accelerating to meet the
pressure of the times.
In terms of United States economic assistance
to Africa, many Africans appreciate our efforts
but feel we should be assisting them to a much
greater degree.
We rate relatively well in terms of our sup-
port of the Organization of African Unity and J
our understanding of Africa's desire to remain I
truly nonalined and independent. At the same
time, however, we are condemned in some quar-
ters because we choose to support a legitimate
African government whose prime minister may
not be in the good graces of all his African col-
leagues. Although this action may for the time
being injure our image in parts of Africa, never-
theless it is consistent with and essential to our
policy of basing our actions not on personalities
but upon long-established principles, mainly the
support of legally chosen representatives of
their people.
The Civil Rights Act
A fourth criterion on which we are judged by
Africans is the way we handle domestic prob-
lems in the United States. They are impressed
by the living standards of workers, by our at-
tack on poverty, by our concern for humanity in
general, but particularly by our concern with
the question of American race relations. Ob-
viously, Africans have a deep interest in the
civil rights movement here, just as they are con-
cerned with matters of human rights and equal
dignity throughout the world. Any racial in-
cident, whether in Philadelphia, Pennsylvania,
or Philadelphia, Mississippi, attracts wide at-
tention in Africa. By the same token, the pas-
sage of the Civil Rights Act, the peaceful Free-
dom March in Washington, and the selection of
Sidney Poitier for an Academy Award were all
occasions for glowing African tributes to Amer-
ica's determination to eliminate racialism from
our society.
The State Department's policy of including
Americans of all backgrounds among our repre-
sentatives at home and abroad has had a favor-
able response among Africans. They are par-
ticularly impressed by the fact tliat Negro
Americans are assigned to posts, including
732
DEPARTMENT OP STATE BULLETIN
ambassadorial positions, throughout the world
rather than solely to African posts. As we move
farther along on this policy, the impact will, of
course, be gi-eater.
Developing African-American Rapport
A fifth factor in America's image in Africa
is founded in the actions of Aiuericans who visit
or work in Africa and on the treatment accorded
Africans who come to this country to visit or
study. Because of the way many Americans
adjust quickly to Africa, our image in that re-
spect is brighter than our image in receiving
Africans who come to the United States. Re-
sponsible and dedicated missionaries, business-
men, teachers, and other private citizens have
helped the United States immeasurably by the
interest they have shown in helping Africa move
forward. American troops in Africa during
World War II also made a favorable impression
on Africans.
Equally important is the dedication of Amer-
ican diplomatic, information, Peace Corps, and
technical assistance personnel in Africa. Al-
though our numbers are much smaller tlian
those of European countries, and the American
presence in Africa is relatively much newer than
the European presence, Americans have quickly
developed strong and cordial relations with
people in all parts of that continent. Africans
and Americans share personal characteristics of
openness, frankness, and a good sense of humor
in dealing with each other, and these have de-
veloped African-American rapport.
While it is tme that the visits of some Ameri-
can dignitaries, writers, or racists of all colors
have been detrimental to our image, it is equally
true that visits by such outstanding Americans
as Edgar Kaiser, Ealph McGill, and Harry
Belafonte have gone a long way to redi'ess that
image. Mr. Belafonte, for example, has been in
Guinea for several months in a completely pri-
vate venture at his own expense. He is helping
Guinea construct a national cultural center and
is helping form a Guinean dance troupe which
will tour the United States next year. His visit
has been extraordinarily successful. He has
been received like a chief of state and has toured
most of Guinea in the company of President
Ahmed Sekou Toure.
In terms of visitors to this comitry from
Africa, our image is reflected in various ways.
One liigh-ranking North African visitor re-
cently informed our Ambassador to his country
that "the minute your foot touches American
soil, many prejudices disappear in the wake of
your experience and observations." At the
other end of the scale is whatever remains of the
mentality symbolized by Route 40. Also, we
can find comments by young African students
who complain that Americans, regardless of
color, ignore them and make them feel lost and
lonesome in the United States. Certainly this
is true for only a nainority of the more than
6,000 African students here, but it is an area in
which we have more work to do.
American Communications Media
The sixth and last criterion I would mention
is American communications media of all kinds.
It is difficult to convince Africans that Ameri-
can media do not officially represent the views
of the U.S. Government. Because this is so,
and because so many African nations are new
to independence and sensitive to criticism from
foreign sources, any flippant or patronizing
American media comment about an outstanding
Afi'ican personality or a new nation is resented
widely throughout the continent and tends to
tarnish our image.
In addition to our own media, there are the
news media of other non-African nations which
compound Africa's misconceptions of America.
This is particularly true of, but not limited to,
such organizations as Tass and the New China
News Agency, both of which tailor their output
carefully to destroy or viciously distort Amer-
ica's image in Africa.
The thrust of Communist propaganda in
Africa is increasing in strength. Although the
Soviets have been operating in Africa longer
than the Chinese, Communist China currently
is moving more swiftly to expand its propa-
ganda activities. At the present time, Tass is
serving 14 African countries and the New China
News Agency is serving 11. Most of the Chi-
nese expansion is relatively recent. Czecho-
slovakia, East Germany, Rumania, and Cuba
NOVEIMBER 23, 1964
733
also are trying to make inroads into African
media.
In addition to news services, both the Soviets
and Chinese are beaming an increased volume
of vernacular radio programs to Africa and
dubbing African languages into Conununist
films in greater nimibers. Other than English,
French, and Portuguese, the Coimnunists are
using Arabic, Hausa, Bambara, Swahili, Am-
haric, and Somali in their output. Cheaply
produced paperback Communist books also are
being printed for Africans in increasing num-
bers.
As you can readily imagine, all of this Com-
munist activity is designed to portray America
in the worst possible light.
What U.S. Media Can Do
Now let me turn to the question of what
Americans in your profession can do to help re-
flect America's Linage in Africa more accurately
so that understanding and friendship may in-
crease between us. Let me say right off that I
am sure your backgi'ound and training will de-
velop more suggestions from my analysis than
I can hope myself to suggest. However, I
would like to venture a few ideas of my own.
Before offering any suggestion, I would like
to emphasize that mutual understanding at this
time is of critical and urgent importance.
Africa is now breaking the bonds of colonialism,
tribalism, and preindustrial society. It seeks
independence, new values, and a higher stand-
ard of living at home and recognition and equal
dignity around the world. Africa looks eagerly
abroad to choose things of value for its own
society and economy wherever it can find them,
I'eserving the right to reject anything or every-
thing. In the process it is proud of its history
and anxious to maintain and develop its African
personality. It is a period of high sensitivity
and eagerness for midcrstanding.
Obviously, decisions and choices made now
are apt to set patterns for a considerable future.
So right decisions and choices are of great and
long-term significance for Africa and the rest
of the world.
My first suggestion is based on the idea that
you who are in the field of communications can
do a more effective job as you know more about
Africa, ilay I give you just a couple of ex-
amples? Just last Sunday, an ad in the New
York Times had a Ghanaian farmer speaking
in Swahili. This would be something like hav-
ing a French peasant speaking Greek. As any
African or Africanist would know, a West
African farmer wouldn't be likely to speak in
an East African tongue.
A more complicated problem is the different
meanings the same terms have in America and
in Africa. For example, take the word "social-
ism." Most of us think of socialism as at least
implying public ownership of the means of pro-
duction. In Africa many of the most avid ,
advocates of socialism are equally passionate in I
their support for foreign investment with tax
incentives and for major private sectors of the
economy.
Second, I would suggest that more of you see
Africa. It is pretty difficult to write with real
feeling about Africa, even from a good reading
acquaintance. The feel comes with seeing the i
almost incredible contrasts between the old and '
the new, the richness of resources and the hard
life of most of the people, the ability and even
brilliance of the elite and the primitiveness of
the disadvantaged. You must be with Africans
to sense their determination to get ahead, their
impatience with obstacles, and, withal, a sense
of humor congenial to Americans.
Third, if you can't get to Africa, or even if
you can, get to know the Africans who are in our
midst — diplomats, students, visitors of all kinds.
From many of them you will get an exciting feel
of what Africa is all about. In turn you may
be able to give them a better understanding of
what America is all about, and that may be
important to both them and to our country. We
have many values which have real pertinence to
emerging Africa because at base we are a free
and revolutionary society — even Fortune mag-
azine devoted an issue to "America, the Perma-
nent Kevolution." More tlian a few of our I
former student guests have gone home to become
leaders in their countries. Some have absorbed
and appreciated our real values. Some have
caught part, and misimderstood part, or liave
been disenchanted and disappointed. All are
open to the truth and to warmth and under-
standing. For all of us this is a rich and
rewarding experience.
734
DEPARTMENT OF STATE BtrLLETIN
Incidentally, in your own professions or re-
lated ones, there is great opportunity for de-
veloping important understanding. In some of
your areas, Africans recognize our preeminence
and are eager for an opportunity for study and
acquaintance. For example, the field of radio
and television is a place ■where we can contribute
much. Journalism is an ai'ea where we can
demonstrate the values of professionalism.
Fourth, may I express the hope that the truth
about Africa can be reported starkly and hon-
estly, but with miderstanding ? It is true that
a rose by anj' other name may smell as sweet,
but there are at least 57 ways of describing
pickles. Some bum, while some are sharp but
not impleasant. American relationships not
only in Africa but around the world are all too
often thrown into bitter crises because of un-
necessarily unpleasant turns of phrase in de-
scribing personalities. The unvarnished truth
is all well and good, but the poison-polished
characterization may produce more bum than
enlightenment.
Fifth, America's image in Africa and Amer-
ica's understanding of Africa can both be im-
proved by the further expansion and deepening
of coverage in both areas by American media,
employing to the greatest extent possible Amer-
icans or Africans and not third countries' na-
tionals, who often have special prejudices.
For one thing, American media could expand
and deepen their coverage of African events.
Such papers as the New York Times, Washing-
ton Post, Baltimore Sun, and Christian Science
Monitor are doing pioneering work in this field.
Recently the Kansas City Star did an exception-
ally fine series of articles on Africa. I am sure
there are others that have not come to my
attention.
Both United Press International and the As-
sociated Press are doing a good job in covering
African events in the face of heavy competition
from European and Communist services. Both
have bureaus or correspondents in most parts of
Africa, and an increasing number of African
stories are being moved by these wire services
to American media. UPI also moves much
news in the other direction. It is the only
Washington bureau with a full-time man cover-
ing Africa in this country and reporting on
what the United States has to say about Africa.
The AP moves its worldwide service to many
clients in Africa.
Another American activity that is helping to
improve America's image in Africa is Ebony
magazine, which has established an African
edition with some 65,000 circulation in Africa.
Our reports indicate that Ebony Africa, as it is
called, is being received very well among
Africans.
You in the advertising field could make an
important contribution to better communica-
tions by persuading your clients to focus on the
future of Africa and its potential markets. It
would be timely now for them to use institu-
tional advertising as a good-will investment.
Such identification of company and brand
names could pay handsome dividends in the
years ahead as African purchasing power rises,
because Department of Commerce surveys indi-
cate Africans are quality- and brand-conscious.
In brief conclusion, there is much yet to be
done, and I hope you will increase your efforts
to supplement those of our Government. The
long-range results, I am sure, will be rewarding
to all of us — African and American alike.
President Calls for Increase
in Peace Corps
Statement hy President Johnson
White House press release dated November 2
Four years ago today John Kemiedy pro-
posed the Peace Corps. Then it was a promise.
Now it is a reality.
To the 10,000 volunteers serving in 46 coim-
tries — to the 110,000 Americans who have ap-
plied to become vokmteers — go the thanks of
this nation. Through their hard work and de-
voted service the pioneering tradition of Amer-
ica has been renewed and our name is honored
anew among the developing nations of Africa,
Asia, and Latin America.
But this is no time to rest on the achieve-
ments of the last 4 years. This is the time to go
forward.
In the next 4 years we must double the size
and still further raise the quality of the Peace
Corps. Nearly every country where volunteers
NOVEMBER 2 3, 1964
735
are now serving has asked for more — often two,
three, or four times more. Many countries are
on the "waiting list." We must not lose this
practical opportunity to assist friendly nations
in their self-help efforts in peaceful develop-
ment.
For the next stage of the Peace Corps, we
need applications to serve from about 10 per-
cent of the graduating class of our colleges and
universities, we need more applications from
skilled workers in our factories and on our
farms, we need more experienced teachers, .
more doctors, more nurses, more senior citizens. 1
And as 6,000 to 10,000 volunteers return from
2 years of overseas service we must see that their
firsthand experience is put to good use, in our
schools and universities, in American private
enterprise, in our city and State governments,
in our war on poverty, and in all our Federal
services, including the Foreign Service.
Protocol and Peacekeeping
iy Angier Biddle Duke
Chief of Protocol'^
Today I will lead off with the simple question
of how our immediate national interests benefit
from the United Nations now. Or, putting our
theme another way, what are the hard advan-
tages of the United Nations to the United
States? I use the word "hard" not in its sense
of difficult but rather the specific and practical.
Let us leave to the prophets the question of
whether we or our descendants will ever enjoy
the benefits of a parliament of man. This per-
sistent vision of such great men as Plato and
Francis Bacon will receive no knocks from me.
But today's foreign policy concerns are any-
thing but visionary, usually demandmg urgent,
businesslike planning and execution around
the clock and throughout the calendar. Time
and again we find the United Nations presents
the most acceptable channel to conduct Amer-
ica's urgent business in many areas overseas.
A central reason for needing the United
Nations is that we have a general state of world
conditions which is neither peace nor war in any
absolute sense. We are not in any declared war.
And yet every day more than a few men are
' Address made before the Yale Club of Washington,
at Washington, D.C., on Oct. 22 (press release 465).
being killed in lethal confrontations between
the free, independent and the closed, controlled
societies.
The United Nations is serving to prevent
tragic deterioration of this less-than-perfect
condition of very real power blocs, nations, and
men. In so doing, it is serving us and our allies
well. In President Johnson's words, spoken
last December before the United Natioiis Gren-
eral Assembly : -
We have seen too much success to become obsessed
with failure. The peacekeeping machinery of the
United Nations 7ios worked in the Congo, in the Middle
East, and elsewhere. The great transition from
colonial rule to independence 7ia« been largely accom-
plished. The Decade of Development has successfully
begun. The world arms race /ia« been slowed. The
struggle for human rights has been gaining new force.
And a start has been made in furthering mankind's
common interest in outer space, in scientific explora-
tion, in communications, in weather forecasting, in
banning the stationing of nuclear weapons, and in
establishing principles of law. [Emphasis supplied.]
We cannot possibly in one sliort talk even
touch upon — much less encompass — all the
many ways our country benefits from United I
" Bulletin of Jan. G, 19C4, p. 2.
736
DEPARTMENT OF STATE BULLETIN
Nations activities. I am in a position, however,
to comment on two additional practical roles
in which international consultation would be
helpful. The first involves the major, contin-
uing need for keeping the peace with a limited,
competent, and disciplined international force
in trouble spots. The second concerns an idea
for improvuig personal commmiication between
the heads of sovereign states, a field m wliich
I have had some very real experience.
U.N.'s Peacekeeping Operations
On the never-ending task of peacekeeping in
touch}', complex, and volatile situations, I
should like to quote from an address delivered
before the Foreign Policy Association in New
York this past February by Assistant Secretary
of State Harlan Cleveland: "In spite of its
great jjower, the United States does not have
to be the world's policeman // we have the wit
and skill to build international peacekeeping
machinery instead."
For those who consider it absurd or unthink-
able for our country ever to become a self-
appointed international policeman, let me re-
mind them that this would be our role if there
were no United Nations. Why? For it is a
central fact of life that there are forces in the
world eager to exploit every chance accessible
to them wherever destruction of independent
self-government can be accomplished relatively
cheaply or at little risk.
The desirable goal of having international
peacekeeping machinery at the ready — without
reliance largely upon our military power — is
far from an idle or theoretical dream. It is
certainly not a brand new idea made in Amer-
ica, but represents the growing intention of
many smaller nations whose governments
are prepared to share the burdens and
responsibilities.
Last year, m a speech made at a meeting not
unlike this one, with the signal difference that
it was delivered before a group of Harvard
alumni. United Nations Secretary-Greneral
U Thant suggested that United Nations mem-
bers should earmark military units which they
would be prepared to make available on request
to the United Nations. Earmarking would be
voluntary and would have to be acceptable to
every contributing country in each particular
situation before its troops were deployed. Un-
like a standing international army, the ear-
marked units would be financed and controlled
directly by their governments and made avail-
able to the United Nations.
This may sound more elaborate and cumber-
some than armchair strategists specializing in
ideal procurement policies would prescribe.
There is a solid background of military experi-
ence, however, behind this proposal.
As you probably know, in Cyprus there are
now troop contingents from Canada, Britain,
Finland, Sweden, and Ireland, under the pa-
tient and resourceful field command of the
redoubtable General Kondondera Thimayya of
India. At the height of the Congo turmoil
there were more than 20,000 U.N. troops from
21 member nations. Wlien all the crises over
the last decade and a half are tallied — including
Korea and Suez — 54 member countries have
voluntarily assigned troops to peacekeeping
operations under United Nations auspices.
Having earmarked contingents available for
quick decisions would be another major step of
great value and importance toward attaining
enforcible international law. Denmark, Nor-
way, Sweden, Ireland, Canada, and the Nether-
lands have already offered, under such arrange-
ments, to earmark crack, well-trained units for
U.N. duty. These members of the international
community are keenly aware that some crises,
potentially manageable through the United Na-
tions, could become drastically escalated if there
were direct involvement of the major powers.
As Americans we certainly should welcome
and encourage this development in the capacity
of the United Nations to prevent local and re-
gional crises from provoking outright war.
International Conference on Protocol Suggested
The second idea I should like to share with
you is a conception of my own. I have thought
about it for some time but have never before
outlined its aim and content in public. The idea
is a byproduct of the development of the func-
tion of my office under Secretary Rusk, Presi-
dent Kennedy, and President Jolinson.
At first glance there would seem to be a wide
gulf between peacekeeping and protocol. Yet
NOVEIIBER 2 3, 1964
737
a valid connection exists and could be
strengthened.
Similarly, in the public mind there was no
evident link between civil rights and protocol
back in 1961, when my office undertook to insure
equal treatment for all diplomats here in our
nation's capital. Wliile covert discrimination
may persist uncorrected in such matters as
travel, living accommodations for embassy
staffs, access to private schools and club facili-
ties, the situation has greatly improved.
A central protocol responsibility continues to
be arranging for visits of world leaders to this
country and helping with our President's trips
abroad. On the grand scale this has required
highly detailed planning and administration of
arrangements for 110 meetings between our
Presidents and the heads of almost every coun-
try in the world. President Jolmson has met
with 25 prime ministers and chiefs of state in
11 months, probably a record for such a period.
I suggest that an international conference
could very well be of assistance to this kind of
personal diplomacy by bringing together the
chiefs of protocol from around the world at an
early date. Such a consultative gathering
would have one simple, helpful purpose: to
agree upon the basic ground rules regarding
contacts and visits between chiefs of state.
With the multiplication of jet transportation
facilities, there has been an explosion of oppor-
tunities to worsen or to better relations between
countries through many more face-to-face meet-
ings of key leaders.
Secretary Rusk may well have started the
thinking along these lines in his remarks at my
swearing-in ceremony on January 24, 1961. He
called for a clearer definition and understand-
ing of international protocol functions and
mentioned his hopes for results from a United
Nations-sponsored conference to be held in
Vienna in 1961 on diplomatic privileges and
immunities. The results were several specific
agreements in that limited field, which in our
own case still await Senate ratification. Now
other areas of protocol merit similar considera-
tion, definition, and agreement. An interna-
tional meeting of senior protocol officials should
work out some common procedures which would
fill an urgent present need.
A few simple definitions would help, answer-
ing what constitutes a state, official, working,
or private visit. We say that a state visit entails
2 nights in Washington and up to 7 days' travel
aroimd the country, distinguished by a "White
House dinner, a parade through the streets of
Washington, reciprocal hospitality at the
guest's embassy for the President and First
Lady, two substantive conferences at the Presi-
dential level, full militai-y honors on arrival,
and a similar ceremony conducted by the Secre-
tary of State at the guest's departure.
For an official visit, there are certain minor
variations. On a working visit, the guest
usually resides at his own embassy, travels in
our country at his own expense, and both cere-
mony and mutual hospitality are kept to a satis-
factory minimum. On a private visit, the guest
should not expect to see the President.
We have uiiilaterally defined these categories
in order to conserve the precious working time
of our President while assuring his guest cour-
teous treatment and an opportunity to accom-
plish his important mission here.
These practices of ours receive close atten-
tion from diplomatic observers around the
world. Once at Bogota I was delighted to notice
upon stepping off the plane with President Ken-
nedy that the Colombian arrival ceremony was
so similar to our own that he could take part
in it without advance briefing. It would, of
course, bo imdesirable for all nations to stand-
ardize their pageantry, but other protocol pro-
cedures should be more widely shared.
We have only recently abolished the time-
wasting chore of going to and from airports in
connection with state visits. Use of helicopters
from Philadelphia or Williamsburg to the
Wliite House lawn has been our solution, al-
though this custom even today is not totally
understood abroad. Tliis might not work out
nearly so well at the Kremlin or the Elysee or
Buckingham Palace, for example, but alterna-
tives could be discussed and, hopefully, agreed
upon.
African leaders, looking toward an era of in-
creasing unity on their continent, want to be
able to see each other with increasing frequency
without having the rigmarole of useless for-
mality hamper them. And at the same time
738
DEPARTMENT OF STATE BULLETIN
they are properly concerned with appropriate
dignity. More than half a dozen African coun-
tries have sent their protocol ofScers to my oflice
for orientation on our procedures. I can assure
you that they would welcome a common accept-
ance of mutually agreeable procedures in the
interest of dignified and easy access of their
leaders to one another.
The main points to be settled are definitions
of each category of visit and what they entail :
the length of time to be spent in the capital city
and in travel around the country for each kind
of visit; the size of the official party and the
status of the unofficial party ; policy on sending
government aircraft to pick up the primary
guest in his country ; and other concerns which
deserve clearer consideration than they have
received.
The role of the visiting press is important, for
example, because it directly affects the interpre-
tation of the visit to the guest's home constitu-
ency. Our practice of not permitting the for-
eign press to travel with the official party on our
Government aircraft has caused repeated diffi-
culty and misunderstanding, although it makes
good sense to us.
Ground rules for security personnel would be
helpful, including the number involved in the
visitor's party. Some countries do not permit
the visitor's guards, for example, to carry side-
arms. Agreement to have mutual advance con-
sultation on such matters as exchange of gifts,
awards, and decorations should eliminate some
sensitive guessing games and provide for more
pleasant results.
If guidelines for these visits are not imder-
stood or are less than mutually agreeable, the
substance as well as the tone of the talks be-
tween heads of state can be advereely affected.
I have discussed this at length with chiefs of
protocol from many countries. Without excep-
tion, they concur on the need for reaching a
consensus on such protocolary practices through
some form of international consultation.
In Africa, South Asia, the Middle East, and
in Latin America particularly, the promotion of
frequent contact between like-minded heads of
governments could forestall crises which need
never require formal consideration by regional
organizations or the United Nations. Such per-
sonal communication would also do much to
advance and expedite cooperation toward com-
mon political and developmental goals.
Informal sessions can, in their opportune
ways, have numerous advantages which formal,
official visits lack. From my inquiries about the
meetings between President Eisenhower and
Chairman Khrushchev at Camp David, and
from my observations of the talks between Pres-
ident Kennedy and Prime Minister Nehru dur-
ing the latter's visit to Newport, and of the
rapport established between President Johnson
and Chancellor Erhard at the LBJ Ranch in
Texas, I have every reason to believe that easier
and simpler communications between heads of
state can contribute greatly toward solutions of
both short-range pressing problems and sound
long-term actions toward important goals.
In arrangements for official visits, the capital
of every host country offers advantages and aus-
pices with its own unique character. For less
formal, more relaxed discussion, every country
also has other appropriate sites.
In this hemisphere I look toward the day
when our relations with states still under dicta-
tors will continue to be on strictly correct, offi-
cial lines, wliile democratic countries will enjoy
a special relationship, a camaraderie, involving
frequent and fraternal working contact.
I would look forward to discussing these ideas
as well as forms and procedures to further these
ends at an appropriate official forum, but in the
meantime I am delighted to have had this op-
portunity to air these views with you.
In conclusion, our celebration of United Na-
tions Day and Week this year can be more than
mere habitual observance. Yes, another event-
ful 12 months has elapsed and the United Na-
tions has not joined the League of Nations in
the graveyard of noble abandoned hopes. We —
and the rest of the civilized world — have an or-
ganization. It is an instrument, a tool, which
can be as useful as the practical uses we make
of it.
NOVEMBER 23, 1964
739
Geneva, a Center of International Cooperative Efforts
iy Roger W. Tuhhy '
I've thought today I'd talk about some of the
recent achievements of international coopera-
tive effort, and the potentials. But I hasten at
the outset to stake out for my comments only a
small part of the vast range of international ef-
fort. The peacekeeping responsibilities of the
U.N., the disarmament talks, the Kennedy
Round of tariff negotiations, crucially impor-
tant though they are, I'll not touch on. Eather,
I should like to mention some of the economic
and scientific work which has been centered in
conferences or agencies in Geneva and which
holds so much promise for the future.
We have in Geneva really sort of an interna-
tional smorgasbord of activity, much of it unre-
ported, perhaps because much of it is as unspec-
tacular as the building of new office buildings
and apartment houses around our cities. Never-
theless, while a good deal of the U.N. building
agency work is not only steadily, rather quietly,
contributing to strengthening economic and so-
cial conditions around the world, I think it is
doing so in an interesting, even a dramatic way.
In Brussels international economic coopera-
tion through the European Community has con-
tributed to the remarkable economic resurgence
and growth of industry and trade in Western
Europe. The success on this continent, like that
in the U.S. and Japan, has spurred the less de-
veloped countries to raise their sights, their
demands.
Secretaiy of State Rusk has said that all
' Excerpts from an address made before the Ameri-
can Chamber of Commerce at Brussels, Belgium, on
Sept. 22. Ambassador Tubby is U.S. Representative to
the European Office of the United Nations and Other
International Organizations at Geneva.
around the world it is now recognized that pov-
erty, ignorance, and disease are not ordained
by Pi-ovidence but are matters which men can
do something about.
In Geneva, as in Brussels and New York,
Paris and Rome, in all the great centers of in-
ternational cooperative effort, there is aware-
ness of the tremendous needs, the opportunities,
together with realization of limits of skilled
manpower, adequate capital, or other resources
to meet those needs. It is important, however,
not, I think, to accentuate the negative, the dif-
ficulties, the financial burdens, but rather to
move where and how we can to increase our
contributions to nation-building, to investment
in a far more productive world.
There are times wlien the more developed
countries feel pushed and harried by the de-
mands of countries less blessed than ourselves
with resources or training, by the demands of
"the fraternity of the impatient." We are con- ,
cerned whether our bilateral or multilateral aid |
programs are effective. We, our people and
parliaments, are concerned about the problems
of overlap or duplication of some programs,
the problem of waste. Such concern is justi- J
fied but should not lead, it seems to me, to a "
negative response on our part. Nor has it.
The U.N. Expanded Progi-am of Technical As- J
sistance to developing countries, for instance, "
has grown from $6.5 million in 1950 to $47.9
million in 1903. This is a steady and useful
growth, but it still is a small program measured
against the enormous needs, or against the re-
sources of the more developed countries.
In the work of \\\q European Community
hero in Brussels, in that of the OECD [Organi-
740
DEPARTMENT OF STATE BULLETIN
zation for Economic Cooperation and Develop-
ment] in Paris, in the three recent great con-
ferences in Geneva on science and teclinology,-
on trade and development/ on the peaceful uses
of atomic energy/ in the work of GATT [Gen-
eral Agreement on Tariifs and Trade] and the
specialized agencies such as the International
Bank, the World Health Organization, the Food
and Agriculture Organization, and UNESCO
[United Nations Educational, Scientific and
Cultural Organization], the emphasis consist-
ently has been on how to do more, and do it
better.
Andean Indian Program
The Andean Indian program, ruitiated in
1953, is one of the largest and most compre-
hensive multiagency projects ever attempted.
It is carried on under the U.N. Expanded Pro-
gram of Technical Assistance in close coopera-
tion with the Food and Agriculture Organiza-
tion, the World Health Organization, the
United Nations Educational, Scientific and Cul-
tural Organization, and the United Nations
Children's Fund, as well as with the govern-
ments of the countries concerned. The program
aims to raise the standards of some 7 million
Indians li\ing in isolation and ignorance on the
highlands of Peru, Ecuador, Bolivia, and Co-
lombia, and in sections of Argentina and
Chile — to give them hope for the future and to
make them fully integrated citizens of the
countries to which they belong. The Interna-
tional Labor Organization is responsible for
the general administration of the program.
In the field bases of the Andean program,
experts — agronomists, instructors in teaching,
technical instructors, doctors, anthropologists,
social workers, nurses, and veterinarians — are
daily showing the Indians how to speak, read,
and write the language of their country, how to
increase the yield of crops, how to build roads
and irrigation ditches, how to make better
homes, and how to prevent illness. The Andean
^ For background, see Bulletin of Feb. 25, 1963,
p. 302.
^ Ibid.. Apr. 20, 1964, p. 634, and Aug. 3, 1964, p. l.oO.
* Ibid., Sept. 21, 1964, p. 408.
program builds schools and model houses; it
sets up vocational training workshops in which
artisans and qualified workmen are trained;
it trains local administrators, directors of co-
operatives, and future teachers ; and it helps to
organize in some cases the movement of whole
communities to more fertile land.
Belgium has made a substantial contribution
to the Andean program. Antibiotics to a total
value of 3 million Belgian francs were provided
by the Belgian Government to the Andean In-
dian mission in Ecuador, Bolivia, and Peru in
February 1956. In September 1956, machine
tools to a value of $40,000 were provided by
Belgian employers and trade imions for the
establishment of a workshop at Cotoca, Bolivia.
In August 1957 the Belgian Government put a
sum of 400,000 Belgian francs in convertible
currency at the disposal of the ILO, to be used
exclusively for the construction of a cormnunity
center at Cotoca, Bolivia. In 1960 it donated
some medical drugs (blood plasma substitutes)
to the Governments of Bolivia, Ecuador, and
Peru for use in emergency and maternity wards.
In February 1961 it placed a further sum of
500,000 Belgian francs at the disposal of the
ILO to be used for buildmgs for the vocational
training program in Bolivia. Last year the
Belgian Government donated 100,000 francs for
the construction of a vocational training center
in the new base of Paracaya, also in Bolivia.
Health Programs
In the field of health, Dr. M. G. Candau,
Director General of WHO, has reported that
malaria has been virtually eliminated from
many areas of the world; this may not have
much personal meaning to us living in Western
Europe, but it is a development of immense
importance to the health, happiness, and pro-
ductivity of hundreds of millions living in the
tropics. It is the world's greatest single
scourge ; this is why the eradication of malaria
has been one of WHO's top priorities for nearly
10 years. Some 350 million people have now
been freed from its dreadful threat. A massive
campaign is at present being conducted in 85
countries where 400 million people remain stiD
affected by, or exposed to, malaria.
There are some large-scale diseases whose
NOVEMBER 23, 1984
741
very names may sound unfamiliar to us. An
example is bilharziasis, a fever that strikes at
young people particularly, reducing their
strength and working capacity. It is caused by
tiny worms that live in the human veins.
Traces of some of the worm parasites have been
found in mummies, and the disease was de-
scribed in a papyrus 5,000 years ago — but it still
infects about 20 million inhabitants of the val-
leys of the Nile, the Tigris, and the Euphrates.
The word "yaws," again, is unfamiliar to
many ; yet 100 million still live under the threat
of this crippling disease. Since 1950, 300 mil-
lion persons have been examined in interna-
tionally assisted campaigns, and nearly 40
million were treated with penicillin. During
these last 14 years, the proportion of active cases
in these campaign areas dropped from up to 20
percent of the population to less than 0.5 per-
cent.
Bad water supplies and faulty sanitation con-
tribute gi'eatly to the world's mass diseases. In
some developing countries, 90 percent of the
population have either unsafe water or far from
enough water. It was recently found in a
WHO survey of 75 countries (60 of which are
in Africa, Asia, and Latin America) that only
80 percent of the tovm population had water
taps in the home — in the country districts,
things were worse — while the remainder took
their water from wells or streams or rivers,
where death often lurked in every drop they
drew. Some had to pay considerably in money
and could ill afford sufficient quantities ; others
paid more dearly with their lives.
The World Health Organization is acutely
conscious of these facts and figures which point
up the urgent need for doctors and nurses and
sanitary engineers in the developing countries,
where these mass diseases are rife. Throughout
the world, the disparity in the distribution of
doctors in relation to the population shows how
desperately serious is the situation. Wliile the
best figure on per capita medical coverage is
1 doctor for 400 inhabitants (Israel), there are
a number of countries in which the proportion
is 1 to 50,000 and even 1 to 100,000. At one
time one of the African countries had only one
native doctor ; he was also the health minister of
this country. When he came to represent his
people at a WHO conference, his country was I
left with none.
According to the latest figures, there are 2^4
million qualified nurses in the world. Only one I
of every six works among the vast populations
of Africa, Asia, and Oceania (including Aus-
tralia and New Zealand). In European coun-
tries the distribution of nurses varies from 1 to
335 to 1 to 1,195 inhabitants. In the Americas
the figures are from 1 to 229 to 1 to 6,026; in
Asia, from 1 to 423 to 1 to 8,267 ; in Africa, from
1 to 790 to 1 to 12,445.
Much is being done by WHO to help to solve
this cnicial jiroblem of health workers: 2,000
fellowsliips are granted each year to enable
students from the developing countries to study
medicine abroad. Only last week a special
conference, in which 22 countries were repre-
sented, was held in Geneva under the auspices
of WHO with the aim of establishing basic
principles as a guide for future assistance given
to the developing countries in the field of medi-
cal education.
However, large-scale health problems are not
restricted to the developing nations of the
world. In a recent survey of 22 coimtries—
and they were mostly highly developed — WHO
discovered that c-ardiovascular diseases (dis-
orders of the heart and blood vessels) caused
almost a half of all deatlis; these included
strokes and coronarj' heart disease. The sec-
ond destroyer of life in these countries was
cancer. While many of the great scourges of
mankind are slowly being reduced, cancer is
on the increase: Over 2 million are dying of
it each year.
All these serious problems are aggravated
by rapidly increasing population, by the popu-
lation "explosion." The populations of many
countries are expected to grow by over 40 per-
cent in the next 15 years.
New Techniques in Weatlter Analysis
Health and weather, two of the commonest
topics of conversation the world ai-ound. We
are learning to do a lot to control disease; we
are coming to imderstand, if not control, the
weather.
742
DEPARTMENT OF STATE BULLETIN
The World Meteorological Organization is
engaged in exciting new teclmiques of weather
analysis. It is responsible for coordinating the
development of networks of v/eather stations.
Every day about 8,000 land stations, 3,000 trans-
port and reconnaissance aircraft, and 4,000
ships make 100,000 observations for the surface
of the earth and 10,000 observations relating to
the upper air. These are now supplemented
by records and photographs made from the
Tiros and Nimbus satellites.
The Nimbus, launched tliis August, is able
to provide information for all the earth, once
in daylight and once at night, collecting 500
million bits of information each orbit lasting
108 minutes. This vast quantity of material is
processed by electronic computers in Washing-
ton.
The WIVIO has provided help to more than
70 countries since 1952 by appointing experts
to ad\'ise governments on the organization or
development of their meteorological services,
by the award of fellowships for professional
training covering agricultural meteorology, hy-
drology, tropical cyclones, forecasting tech-
niques for high-level jet aircraft, problems of
tropical meteorology, and the application of
meteorology in fighting desert locust.
With FAO and UNESCO a study of agri-
cultural climatology in arid and semiarid zones
in the Near East has been carried out. Close
and constant cooperation is maintained with
the International Civil Aviation Organization
in studying the requirements of meteorological
seiwices for aviation, and there is similar close
collaboration with the Intergovernmental Mari-
time Consultative Organization on meteorologi-
cal matters affecting maritime safety and sliip-
ping, and with the International Telecommu-
nication Union on plans for meteorological
telecommunications.
Dr. Robert White, Chief of the U.S. Weather
Bureau, at the last '\\^I0 Executive Commit-
tee meeting sponsored a resolution which en-
courages experimentation and research in
commimication between satellites and sounding
balloons.
Agriculture, transportation, industry, tour-
ism, water resources are affected by the
weather — as well as our personal dispositions.
The new techniques available for meteorological
study are part of the exciting developments
made possible by science.
International Organization for Standardization
Turning from the spatial and still somewhat
impredictable, and to give you further msight
into the variety of work going on in Geneva
(there are 116 international organizations with
headquarters there, 57 with branch offices) , I'd
like to mention work done on standardization
of industrial and other products.
Comparatively little is known about the In-
ternational Organization for Standardization.
Perhaps this is due in part to the fact that a
group of 21 people working on a $150,000 an-
nual budget is dwarfed in a city of large-scale
multi-million-dollar organizations. Yet this
nongovernmental, nonpolitical organization is
accomplishing breakthroughs which save time,
money — and tempers.
It deals in practical ideas about such practi-
cal everyday things as nuts and bolts. For
example, 24 member coimtries of ISO have
adopted basic dimensions for screw threads.
This means that a factory, say, in Nigeria can
buy standardized replacements for its nuts and
bolts from any of them.
Here is a national example: Until recently
Portugal had 93 types of milk bottles, with
varying shaped necks and a wide range of stop-
pers. Then Portugal adopted the ISO's ra-
tional recommendations. Now the morning
milk comes to the Portuguese in one of the eight
standard and stoppered types they prefer,
ranging from 10 deciliters for bachelors and
working girls to 2 liters for large families. The
customers like it that way — and the dairy in-
dustry finds it economical.
International Telecommunication Union
Among the specialized agencies most produc-
tive of concrete, practical results is the Inter-
national Telecommunication Union (ITU),
which is celebrating its centenaiy next year and
is the oldest of all the organizations now mem-
bei-s of the United Nations family. The im-
portance of these results can best be seen in
three major aspects of its work.
The three main kinds of telecommunication
NOVEMBER 23, 1964
743
are telegraph, telephone, and radio, with all
their extensions such as telex and television and
with their new fields of application such as
outer space. The operations of telecommunica-
tions throughout the world, and now into space,
are governed by three basic documents : the Tel-
egraph Regulations, the Telephone Regulations,
and the Radio Regulations, whose establishment
and revision have, throughout the Union's his-
tory, been the work of what are called its Ad-
ministrative Conferences. These regulations
lay down the provisions for all aspects and
phases of international commimications — for
example, tariffs; the routing and transmission
of telegrams; the priority to be accorded to tele-
grams relatmg to the safety of life, government
telegrams, and press telegrams; the phototele-
graph service ; the different classes of telephone
calls ; the lease of telephone circuits ; the alloca-
tion of all the radio frequencies in the frequency
spectrum to the different radio services
throughout the world ; measures against harm-
ful interference between radio stations of dif-
ferent countries; radio messages of distress,
alarm, urgency, and safety ; radiotelegrams and
radiotelephone calls; and many other matters.
The establishment, revision, and, above all,
the acceptance of these three sets of regulations
by the member countries of the ITU, who now
number 124, is an outstanding example of co-
operative effort. Without it, it would be vir-
tually impossible for telephone calls to be made
from one country to another, for planes to fly
internationally, or for anybody to listen to a
foreign broadcasting program. Recently, at tlie
end of 1963, a special conference was called by
the ITU in Geneva to revise the Radio Regida-
tions so as to make them applicable for the
needs of outer space activities, particularly with
respect to the allocation of radio frequencies so
as to eliminate the dangers of harmful inter-
ference with radiocommunications in space.'
Here, once again, an amazingly wide measure
of agreement was achieved.
Radio frequencies are allocated by ITU radio
conferences to the different kinds of radio serv-
ices throughout the world — that is to say, for
example, the various fixed and mobile services,
including maritime and aeronautical, broadcast-
' Ibid., Dec. 9, 1903, p. 904.
ing, aeronautical radionavigation, meteorologi-
cal aids, the radio amateurs, outer space, and
radioastronomy. Within the limits of the allo-
cations made by ITU radio conferences and
enshrined in the Radio Regulations, the telecom-
munication authorities of the individual mem-
ber countries of the ITU assign frequencies iv
stations imder their national jurisdiction oper-
ating in the various services. "Wlien frequencies
are thus assigned, the national telecommunica-
tion authorities must notify the ITU in Geneva
so that the assignment can, after teclinical ex-
amination, be recorded in a Master Interna-
tional Frequency Register and thereby acquire
international recognition and protection.
The technical examination is to insure that
the new assignment does not clash with one pre-
viously recorded, thus creating a situation in
which harmful interference would occur. If it
does, the national administration submitting
the new assignment or change of assignment no-
tification is asked to assign another frequency
for the station concerned and is often provided
with alternatives. The same sort of thing hap-
pens when a station in one coimtry finds it is
being interfered with by a station in another.
Following an investigation, recommendations
for a solution are made based on the facts as
recorded in the Master Register and on technical
findings.
Though these recommendations carry no
force of law, they are universally acceptable in
view of the vast mutual benefits that nations de-
rive from international cooperation in the field
of radio. The central agent for that coopera-
tion, the clearinghouse of international radio,
is the ITU.
Under the ITU work is being done to draw
up internationally agreed plans for a telegraph-
telephone-radio network that will effectively
link up the whole world.
International telecommunication links have
been in existence for a long time, but they have
shown themselves to bo inadequate for modem
world communication needs and often ineffi-
ciently oi'ganized. The inadequacy is pointed
up by the recent spate of long-distance sub-
marine cables such as the five that have been laid
across the North Atlantic since 1056, Compac
across the Pacific, and Seacom in Southeast
744
DEPARTSIENT OF STATE BULLETIN
Asia, and by the urgency being shown in the
development of space cominuiiication satellites.
The inefficiency can be illustrated in Africa,
where communications between some neighbor-
ing nations on that continent still have to be
routed through Europe.
The creation of a modern worldwide network
harnessing the newest teclmological discoveries
to soaring international communication needs
and replacing inefficient or anachronistic sys-
tems of the past requires a massive job of plan-
ning. This is being done by the ITU's Plan
Committee.
At a historic meeting in Kome in December
1963, the committee drew ujj the first worldwide
interconnection plan incorporating submarine
cables and satellites and supplemented by a
routing plan and numbering plan. The num-
bering plan assigns telephone numbers to indi-
vidual countries, thereby taking a long stride
forward to the day when telephone subscribers
throughout the world will be able to dial each
other directly.
Telecommunications in the Congo
On a national level, in an area of major im-
portance to the U.S.. Belgium, and Afi-ica, the
ITU has been playing a vital role.
In the bitterly divided, war-torn Congo of the
past 4 years, with its vast spaces and isolated
communities, one element has proved constantly
vital in the eilorts to keep the country to-
gether— its telecommunications. The fact that
tlie network has not only continued to function
but has also expanded is due in no small measure
to the ITU mission which has been working
with the United Nations civil operations in the
Congo since 1960, first under Mr. Santiago
Quijano Caballero of Colombia and now under
Mr. Gabriel Tedros of Ethiopia.
The basic emergency task has been to main-
tain telecommunication services and eqiiipment
throughout the country, and this has been
achieved despite increasing difficulties due to the
depletion of parts, stocks, fuel, and transport.
But the ITU mission has never regarded its job
purely as a holding operation. The expansion
of existing telecommunication services and the
training of Congolese personnel for the future
have been top long-term priorities.
Under plans drawn up by the Government
with ITU assistance, equipment has been given
by the Federal Republic of Germany to link the
regional telecommunication centers with auto-
matic, error-corrected, high-speed radiotele-
graph circuits as well as improved radiotele-
phone circuits. Construction groups, consist-
ing of experts from the Federal Republic of
Germany and the ITU together with Congolese
personnel, have installed the equipment and in-
structed local personnel in its operation and
maintenance.
The commissioning of this equipment has
made it possible to connect important Congolese
centers with the world telex network and im-
prove safety of air travel in the region through
the new circuits carrying meteorological and
aviation information. Direct teleprinter serv-
ices between the Ministry of the Interior in
Leopoldville and other cities will improve Gov-
ernment communications, and the general public
will benefit from the improved telegraph and
telephone services. Longer term plans are also
being worked out.
The training of Congolese personnel has been
progressively intensified over the last few years.
In 1963, for example, more than a hundred
students attended the Ecole Nationale des Tele-
commvmications. In addition, the ITU has
organized the training of a large number of
Congolese nationals outside the country under
bilateral programs, particularly in the Federal
Republic of Germany and France.
The main object of the ITU mission, working
toward the day of its final departure, has thus
been to leave behind not only a fully efficient
nationwide network but also a cadre of national
personnel who have been trained to run it.
Satellite Tracking Station in India
The ITU is to be appointed the executing
agency in India for the establishment of a satel-
lite trackmg station to provide training and to
participate in practical tests in satellite com-
munication techniques.
India, because of its geographic location, is
expected to serve as an important relay point in
a possible future global system for the high-
density traffic between Europe, the Far East,
NOVEMBER 23, 1964
745
749-577—64-
and the South Pacific area. Further, in ad-
vancing the science of satellite communications,
some useful information concerning the noise,
temperature, and propagation performance
under particular tropical conditions could be
gathered from a ground station located on the
Indian subcontinent.
The object of the project is the establisliment
and initial operation, for 4 years, of a center
which will track satellites in orbit, participate
in practical tests, and conduct training and
investigation in satellite communication tech-
niques. This will essentially be an applied
research and training project. The Govern-
ment will make the facilities available for the
training of nationals from other countries.
The site chosen for the project is at Ahmeda-
bad, about 500 kilometers north of Bombay.
The existing physical research laboratory at
Ahmedabad is engaged in experiments relating
to cosmic ray physics, ionospheric physics, meas-
urement of terrestrial noise, satellite tracking,
and telemetry. Alimedabad is connected with
the country's inland telephone and telegraph
networks and therefore conveniently provides
the facilities necessary for communication tests
pertaining to the project.
The first phase of the program will be mainly
concerned with the design and construction of
the station under the direction of the interna-
tional experts. This will be followed by par-
ticipation in communication tests conducted
with both active and passive types of satellites.
Transmission by means of low- and high-alti-
tude synchronous satellites will also be studied.
The second phase will be the evaluation of the
test results and detailed studies of the tech-
nology and equipment problems of the satellite
communication systems. At this time, the plan-
ning of ground stations, and specifications for
them, will be examined in detail. It is also
hoped to participate in the testing and modifica-
tion of equipment to suit the operating require-
ments of a future worldwide satellite communi-
cation network. The final phase will consist of
further studies and practice m satellite tracking
and comnmnication teclmiques, including co-
ordination with existing systems, as a combined
scientific and engineering program.
The project will provide training facilities
for younger scientists and engineers for the
operation of ground stations.
Building a Better World
In this talk IVe touched on a variety of inter-
national cooperative efforts centered at Geneva,
perhaps more so than Don Catlett, Chris Pet-
row, or you especially, expected. Yet in doing
so I've left a lot out— GATT, BIRPI [United
International Bureaus for the Protection of In-
dustrial and Intellectual Property], IBE [In-
ternational Bureau of Education], the U.N.
Narcotics Commission, UNHCR [U.N. High
Commissioner for Refugees], ICEM [Inter-
governmental Committee for European Mi-
gration], the League of Red Cross Societies with
its 170,000,000 members or volunteers, the Inter-
national Commission of Jurists, ORT [Organi-
zation for Rehabilitation Through Training],
the disarmament negotiations, the preparations
for the Kennedy Round of tariff negotiations,
the mediation talks on Cyprus. I've referred
only to a very small part of the International
Labor Organization activities — the Andean
Indian program. Nevertheless I hope I have
helped give you some insight which perhaps
you'd not previously had of activities centered
at Geneva. What to make of it all, or of similar
activities elsewhere ?
1. There is a great need for contuiued, and
expanded, multilateral aid programs. Presi-
dent Johnson has said, "Those who live in the
emerging commimity of nations will ignore the
problems of their neighbors at the risk of their
own prosperity." ^ Our prosperity, well-being,
security depend on helping to strengthen the
economies of developing countries.
2. In carrying out these programs, however,
we must take care that they are well conceived
and executed. This is important not only for
the recipient comitries but for the return on our
investment of trained manpower and financial
and other support.
3. Our public, our legislative bodies, and ex-
ecutive authorities should be much more fully
informed of what is actually being accom-
plished by U.N. projects. Strong public sup-
port will come for most of these projects where
' Ibid., June 29, 1964, p. 990.
746
DEPARTMKXT OF ST.\TE BULLETIN
there is understanding of their objectives and
achievements.
4. The Communist countries have given but
begrudging help to U.N. i^rojects. It is to be
hoped that in the years ahead many if not all
of the Communist countries will wholeheartedly
join in nation-building programs which will be
of benefit to donors and recipients alike. Hob-
bled, anemic U.N. programs may in the short
run be what the Communists want. Slow and
ineffective economic growth in developing
countries produces frustrations and a political
climate thought favorable to Communist in-
trigue, terror, and aggression. However, in-
creasingly sophisticated leaders of many of the
developing nations recognize and appreciate
contributions to U.N. multilateral programs
made by countries in good faith, contributions
free of the taint of political blackmail.
"Give so that ye may receive" is a premise
well foimded in long experience. Training
teachers, lawyers, agronomists, doctors, busi-
nessmen, engineers ; reducing barriers to trade ;
improving health and communications; spur-
ring investment ; bringing fresh water to deserts
and atomic power to lands lacking fossil fuel;
creating new international research laboratories
such as the cancer research center proposed by
President de Gaulle — these and countless other
things can contribute to a better world. If the
modern-day imperialists, Russia and Commu-
nist China, will leave off their quest for domi-
nation of others, of each other, and join their
great talents and resources wlioleheartedly with
the rest of us in the building of a better world,
they, we, all peoples, will benefit enormously.
Health and Social Progress in Latin America
by Murat W. Williams ^
I wish to express my particular thanks to Dr.
[Emil P.] Taxay, Dr. [Rafael] Penalver, and
the University of Miami for the honor you have
given me of speaking to this impressive gather-
ing. With all sincerity, I say it is a genuine
privilege to be present with you. It is my
pleasure also to bring the greetings of our As-
sistant Secretary [for Inter- American Affairs],
Thomas Mann.
We know something of what you have done
and recognize the greatness of the work in which
you all participate. Your efforts are directed
toward meeting the needs of our friends and al-
' Address made at graduation ceremonies for Latin
American physicians completing postgraduate courses
at the University of Miami School of Medicine, Miami,
Fla., on Oct. 10. Mr. VS^illiams is Deputy Director for
Coordination, Bureau of Intelligence and Research ; he
was formerly Ambassador to El Salvador.
lies to the south for a better, healthier, and hap-
pier life. You are facing and satisfying the ris-
ing aspirations that call upon all of us to pro-
duce from our professions, our resources, our
skills, and our energies the good things that the
riches of the world and the powers of science
offer to every himian being. You will help to
make it possible to share the patrimony of man-
kind with all mankind.
Ours is a world of undreamed-of possibilities.
Our potentials to produce are growing faster
than we ever imagined. Resources in energy
and raw materials are proving so great that the
most imaginative predictions of past prophets
of progress seem inadequate. In the Western
Hemisphere the nations have it within their
power to bring prosperity and health to all.
Today in the Americas the great effort to achieve
these goals is underway. It is moving ahead.
NOVEMBER 23, 1964
747
Your efforts are a great part of the Alliance
for Progress. Tlie alliance is the vast com-
bination, the joining together, of all the efforts
of all persons to bring to the free nations of
the hemisphere the opportunities and the possi-
bilities for a better life which the free, modern
world offers. This decade is the decade of
promise and performance — the decade in which
we are seeing true progress, economic and
social.
We have often said that economic gi'owth
should go hand in hand with social progress.
There is no social progress without an economic
foundation. On the other hand, there is no
point in economic achievement by itself. Wliat
is the purpose of wealth and growth if it does
not benefit society? We may go a step fur-
ther and say that we cannot even have real eco-
nomic progress without social progress. The
economy does not grow unless health and educa-
tion advance. A nation ridden by disease, mal-
nutrition, and illiteracy will not be a productive
nation.
■One of the most energetic proponents of the
aliama joined me a few years ago in a meeting
with young Central Americans. He posed a
question: "If you had just enough money to
build either a factory or a hospital, which would
you choose?'' The answer was "a hospital."
My friend replied, "But if you built a factory,
you would soon be able to afford several hos-
pitals." My friend was ready to argue the
case the other way, but the most certain conclu-
sion is that the two factors are intertwined.
Nearly 4 years ago I had a visit in my em-
bassy from an ambitious young industrialist
eager to talk to me about how he was solving
the problems of production in an imderdevel-
oped country. He said he had imported pre-
cision machinery from the United States for
tlie manufacture of household equipment that
was much in demand. However, for nearly a
year the machines had been simply a source of
wony and frustration. He found the preci-
sion department of his factory had an intol-
erable turnover of personnel.
One day it occurred to him to study the
home life and the health of his employees and
their families. He learned of their medical
needs. He took steps to help tliem and their
wives and children to get medical attention and
assistance for a healthier home life. His fac-
tory problem was solved. Within 6 months of
the visit I read a front-page story in the Wall
Street Journal about the success of that young
man's factory in supplying the needs of the
Central American market in his particular com-
modity. The article drew much attention, but
it did not mention the real secret of his suc-
cess, which was not in the factory but in the
solution of a medical and social problem.
Welfare Is Productive
Welfare is productive. That is the lesson of
that experience and the lesson that the leaders
in the economic growth of modern nations so
well understand.
Too often welfare is treated as if it were
merely an aspect of philanthropy, and govern-
ments which are directly concerned with their
people's welfare are called "soft." Yet all
modem industrialized countries, as well as the
countries that are making great strides in de-i-el-
opment and economic growth, are finding that
the community's concern for the health of the
people must have a priority comparable to the
priority accorded to finance, training, tech-
nology, and the acquisition of capital equip-
ment. Businessmen believe this. More and
more of them are applauding, supporting, and
supplementing their government's efforts in the
fields of health.
Not many years ago I served in Israel, a
small country that has worked miracles in agri-
cultural and industrial development. I doubt
that there is any countrj' in all the world that
takes a more serious interest in the health and
welfare of its people. The leaders of that coun-
try, impatient for economic progress, have
realized that they need not talk economic
growth unless they have a healthy people. Pos-
sibly no healthier country exists in all the world.
The Israelis achieved a higli standard of health,
and, hand in hand with it, they are setting
records in industrial growth and agricultural
production.
Tiie same impatience exists today in many
countries of the aliama. Thei*e is impatience
on the part of the articulate leaders. The im-
patience is impatience to participate in the
748
DEPARTMENT OF STATE BULLETIN
worldwide boom, the worldwide march of the
nations to the productive and prosperous world
of the future.
You are medical men. You know the possi-
bilities. You know what can be done. With
your knowledge of the sciences and techniques
of medicine, I can imagine how you must feel
at the sight of the imnecessary diseases that
afflict the millions of human beings who have no
medical attention. I know how you must feel
at the sight of unnecessary trachoma, unneces-
sary pellagra, and a hundred other avoidable
scourges.
I know how you must feel about villages — yes,
even towns of 10,000 people — who have no med-
ical attention, or rural provinces where a single
physician struggles with the illnesses of a hun-
dred thousand human beings and has to see
scores of the seriously ill fall into the unscien-
tific, even dangerous, hands of the witch or
curandera.
Men of your dedicated profession are already
hard at work to eliminate these afflictions of
avoidable plagues and unnecessary neglect.
And great progress is being made.
Gentlemen, you already have seen that
changes are taking place throughout the hemi-
sphere. You have seen that a great effort is
being made to assure that the attentions of the
medical profession are reaching those neglected
places and neglected peoples. I have seen it
myself in Central America. I have seen your
young physicians in their jeep health units jog-
ging along stony and dusty roads to go from
village to village treating the sick, bringing
medicines, and, with the help of courageous
nurses, maintaining posts that will relieve pain,
end the crippling handicaps of disease, and open
the doors of a healthier, happier, and more use-
ful life. I have had the privilege of visiting
very remote villages where the alcalde, or town
secretary, has proudly shown me not just the
church and the plaza, as in olden times, but also
the neat, efficient health post, built by the people
under the advice and direction of health officers
and doctors like yourselves.
I have also seen the work of Latin American
research doctors, whose scientific investigations
are of high quality and who are making im-
portant scientific advances in the study of the
microbes that afflict suffering millions. You
know that these researches are contributing to
the world's scientific knowledge and serving the
interest of all mankind. Our National Insti-
tutes of Health have enlisted the help and col-
laboration of your scientists to carry out re-
search in your coimtries on problems common to
all mankind. To the layman, the extent of
interchange between our researchers and yours
often comes as a surprise. I do know from
personal experience how much our medical
scientists depend upon the work of many distin-
guished doctors in your countries.
You gentlemen are in a profession to which
hmidreds of millions of people in the Western
Hemisphere are looking with respect and with
great expectation. You are opening the doors
to the better life. You have a tremendous po-
tentiality, without which all talk of progress is
meaningless. Some of you will find opportuni-
ties to launch new programs, open new depart-
ments under your own leadership, in universi-
ties, ministries, or industrial enterprises. I
have heard young doctors in this country ex-
press envy of your opportunities.
Achieving tlie Goals of the Alliance for Progress
Thei'e will be frustrations, but the possibilities
are brilliant and much already has been done.
At the present pace of the world's progress how
many of us can say that what we plan and what
we are doing is enough ? We may all feel that
we have made a start. But we must ask, Wliat
more can we do? Wliile we may take some
satisfaction from what has been done in some
places under the Alliance for Progress, the great
effect of it all should be to encourage us to push
on to achieve its great goals, which we now
know can be achieved.
Now, the spreading of medical or health serv-
ices is being achieved in free societies. New
benefits are reaching the masses in the free coun-
tries without the sacrifice of liberties or the
curbing of free initiatives. The costs of better
health are properly a part of the costs of eco-
nomic gi'owth, and as such they are repaid many
times, whether they are costs directly paid by
corporations, by individual proprietors, or by
governments. The nations that want economic
growth must recognize that they must make this
N0VE3IBER 23, 1964
749
fruitful investment in better health.
Opportunities become more abundant for all
without the loss of opportunity for any. In
the countries that take part in the Alliance for
Progress, health services are being made avail-
able under a system of free enterprise. In
many forms, through cooperatives, social se-
curity systems, labor unions, community asso-
ciations, or insurance organizations, medical
care is made available to more and more people.
Those who have resisted public support for
spreading services, those who have complained
of soft, humanitarian gestures that a country
was not rich enough to afford, have time and
again found that what was good for the masses
was also good for the rich. The old world in
which a few held jealously to their privileges is
passing, but as it passes the big change for the
privileged is often that they have more com-
pany in their affluence. As the nation's well-
being has improved, they have not found any
handicap to themselves. They need not fear
that progressive movements must drag down
into ruins the old world as the privileged would
like to see it — the world of grandpapa. On the
contrary, those in the most privileged positions
are seeing that their own continued prosperity
and their own hopes for a more prosperous fu-
ture depend upon the social progress of the
multitudes.
To some, these may seem unduly optimistic
ideas. But they are based on realities as we
have observed them. Governments, legislating
for the general welfare, have found that with
the interdependence of economic and social
progress the claim of health departments and
medical services upon a people's resources be-
comes stronger and stronger. The fact that
welfare is productive can no longer be ignored.
Programs for welfare and health must never
again be treated as residual or secondary pro-
grams to be allotted what is left of a nation's
resources after other more obvious programs are
taken care of.
The interdependence of economic growth and
social progress is so clear today that it must be
obvious to all that the nation that neglects
the health of its masses will fall behind in the
march of the world to the brilliant and pros-
perous future that has been pictured for us by
scientists and engineers.
In the great cooperative effort of the Alliance
for Progi-ess, different allies have diffei-ent parts
to play, different contributions to make. The
willingness of the United States to play its
part has been made well known in conferences
at Bogota, in Washington, at Punta del Este,
in Mexico, and on many occasions.
The Problem of Population
Now let me talk about something that until
very recently was virtually taboo — the problem
of population.
The fields in which the United States can be
useful have been expanded to include the all-
important question of population. In the West-
ern Hemisphere there are some of the highest
rates of population growth in the world. In
the pursuit of our mutual objectives of promot-
ing better health for the peoples of the area
of the alliance, population problems must be
faced in order merely to keep up with the health
needs of the nations both in finances and m per-
sonnel. This is above all true in the rural areas.
There is widespread awareness of the problems
of population, on the part of the people, their
governments, and the church.
The activities of the United States Govern-
ment were precipitated by the United Nations
General Assembly resolution - on the subject
of population and by the subsequent Fulbright
amendment [to the Foreign Assistance Act of
1963] of December 1963, which provides that
we should assist nations whicli request our help
to carry on research on population problems
and to help those nations carry out their own
solutions. We are already active in the field.
We have had discussions with our Latin Ameri-
can friends. I hope we can help you who face
this problem in your own countries.
Whatever each of us may be doing in his
particular field, I think that we can all be proud
of taking part in this broad movement of the
1960's toward the combined goals of social and
economic progress for the peoples, for the
masses in this hemisphere. To achieve these
goals we work in the full understanding that
economic progress, social progress, and politi-
cal progress are all interrelated, that there can
* For text, see Bulletin of Jan. 7, 1963, p. 19.
750
DEPARTMENT OF STATE BULLETIN
be no real economic advance without progress
in the fields of health and public welfare, and
that advances in health and welfare will make
an essential contribution to the achievement
of the prosperous new world which is within
reach of all the countries of this hemisphere.
President Outlines Position
on Balance of Payments and Trade
STATEMENT BY PRESIDENT JOHNSON
ON ECONOMIC ISSUES
White House press release dated October 24
Great issues lie before the country for
decision. The supreme issues of life and death
are in the field of foreign policy — as Red
China's bomb and the changes in Moscow so
forcibly remind us.
But the strength that underlies our world
leadership is anchored in the prosperity and
stability of the American economy. Our 4-
year record of strong and balanced economic
advance knows no parallel in this or any other
country. Maintaining this great frosperity is
a vital task that challenges our free society.
So the American people have every right to
do more than just "look at the record." They
have every riglit to ask where I stand on the
key economic issues that will determine the
health and growth of our economy.
In a series of brief "\^^lite House statements
over the next few days, I will outline my posi-
tion on some of the most important economic
issues before the country today. I shall deal
with the following topics :
1. Maintaining Prosperity ^
2. Monetary Policy for Stability and
Growth ^
3. Strengthening Our Balance of Payments
4. Responsible and Effective Fiscal Policy '
5. Further Tax Reduction ^
6. Strengthening State-Local Government ^
7. Improving the Tax System ^
8. Expanding "World Trade
9. Promoting Responsible Price-Wage De-
cisions ^
10. Achieving Full Employment.^
PRESIDENTIAL STATEMENT #3
ON ECONOMIC ISSUES
White House press release dated October 26
Strengthening Our Balance of Payments
1. We have made much progress over the past
4 years in strengthening our balance of pay-
ments.
• Our surplus of merchandise exports over
imports is 40 percent above 1960.
• Our balance-of-payments deficit (on I'egu-
lar transactions) has been cut by more than
half — from an average level of $3.9 billion in
1958-60 to $1.7 billion during the last fiscal
year.
• Confidence in the dollar has been restored.
• As a result, the gold outflow — which aver-
aged an alarming $1.7 billion a year from 1958
through 1960— was cut in half in 1961 and 1962,
and has ceased entirely over the past 12 months.
2. This progress has not come at the expense
of our other vital responsibilities
— for maintaining and improving our de-
fenses abroad,
— for providing needed assistance to develop-
ing nations,
— and for sustained and rapid growth at
home.
3. Moreover, we have refused to seek "easy"
and fast solutions to our balance-of-payments
problem through damaging controls and re-
strictions that would have curbed economic
freedom, hurt our domestic prosperity, or dam-
aged other countries' trade.
4. Instead, we have chosen tlie slower but
surer path of progress through a more com-
petitive, efficient, and prosperous domestic
economy — an economy fully equipped to main-
tain and expand its share of rapidly growing
world markets.
5. To assist American business in tapping the
gi-eat potential of these world markets, this ad-
ministration has pursued a vigorous program
of export promotion and expansion. Five
permanent American Trade Centers have been
established abroad since 1961; 19 commercial
exhibits at foreign trade fairs have been spon-
sored by the Department of Commerce in the
' Not printed here.
NOVEMBER 23, 1964
761
past 2 years. With the assistance of the Export
Expansion Program, about 4,000 U.S. firms have
made export sales for the first time since 19G0.
6. During the past year we have cut back
hard on the U.S. Government flow of dollars
abroad; we have passed the Interest Equaliza-
tion Tax and raised short-term interest rates at
home to cut off an excessive flow of capital
abroad. Moreover, our policies have helped to
maintain the price stability that has advanced
our trade, and we have made investment at
home more attractive by stimulating healthy
economic growth.
7. The task of restoring balance in our ex-
ternal payments has not been completed. We
will maintain our forward momentum and capi-
talize on the very real gains of the past 4 years
through further efforts to expand our exports,
create conditions that will attract more of our
capital into domestic investment, and pursue
responsible fiscal and monetary policies that
will retain the world's confidence in the Ameri-
can economy and the American dollar.
PRESIDENTIAL STATEMENT #8
ON ECONOMIC ISSUES
White House press release dated October 28
Expanding World Trade
1. The policy of trade liberalization — pur-
sued ever since the Trade Agreements Act of
1934, by both Democratic and Republican ad-
ministrations— has served this country well.
Our foreign trade, which amounted to only $3.8
billion in 1934, is now running at an annual
rate of $42i/^ billion — $241^ billion in exports
and $18 billion in imports.
2. Our exports provide jobs for about 3.6 mil-
lion American workers and outlets for the crops
of one out of every four acres of our farms.
Our imports provide essential raw materials for
our industries, maintain a healthy pressure on
our own producers and workers to step up their
efficiency, offer our consumers a wider choice of
goods at competitive prices, and counteract do-
mestic pressures for price increases.
3. On the basis of the Trade Expansion Act
of 19G2 we arc currently able to engage in the
sixth round of international negotiations un-
der the auspices of the General Agreement on
Tariffs and Trade (GATT). The Trade Ex-
pansion Act is one of the great legislative mon-
uments to President Kennedy's leadership, and
this administration is fully committed to its
vigorous implementation.
4. The current negotiations will not impose
burdens on some nations to provide gains for
others. They are being conducted on a basis of
reciprocity, and their success will be advanta-
geous to all participating nations. The negotia-
tions may be lengthy, complex, and at times
difficult, but we are prudently confident of
fruitful results.
5. Special import difficulties confronting par-
ticular sections of our economy may at times re-
quire remedial action. This administration has
taken action to meet the problems of meat pro-
ducers and of cotton textile and apparel manu-
facturers. We are also seeking to work out
arrangements among the woolen textile produc-
ing nations which would be in the mutual inter-
ests of all.
6. However necessary, such remedial actions
are the exception rather than the rule. The
main thrust of this administration — as of Dem-
ocratic and Eepublican administrations for the
past 30 years — will be toward trade liberaliza-
tion.
U.S. Improves Balance-of-Payments
Position; Increases Gold Holdings
White House press release dated October 31
Statement by President Johnson
I am happy to be able to make public a re-
port from Secretary [of the Treasury Douglas]
Dillon which shows that for the firet time in 7
years we have been able to increase our total
gold holdings. This is the result of outstand-
ing work by American exporters and full co-
operation by all agencies of tlie Govenunent.
We have not yet finished the job of closing
our dollar gap, but we have taken a long step
forward. With the continued effort of both
business and Government wo can reach our goal.
752
department of state bulletin
Report by Secretary Dillon
October 30, 1064
Dear Mr. President : I have completed a review of
our balance of payments position at this time, a review
based on complete data for the first half of this year
and partial data for the third quarter. This review
shows that our national balance of payments program
has produced striking results.
Our payments deficit on regular transactions through
September of this year has been running at an annual
rate of about $2 billion, against $3.9 billion in I960 and
$3.3 billion in 1963.
Our performance in selling goods abroad has made an
important contribution to this improved position. Our
exports this year have continued to run at record levels.
They are 12 percent above a year ago and 27 percent
above the 1960 level. Much of this improvement
reflects the stable price level we have achieved domes-
tically over these years, making our goods increasingly
competitive in markets abroad.
Our imports have also risen as would be expected
with the improved performance of our domestic econ-
omy— but at a slower rate than exports. As a result,
our surplus on commodity trade is running close to
$Qy2 billion, as compared with about $4^4 billion in 1960
and $5 billion in 1963.
A very significant part of the improvement in our
balance of payments results from the actions we have
taken to cut the outflow of dollars for Government
spending abroad. In that regard, we are well on our
way toward reaching the target of a $1 billion reduc-
tion in Government spending from 1962 levels which
was set in President Kennedy's Balance of Payments
Message of July 18, 1963.^ During the fiscal year ended
last June 30, we achieved more than one-half of that
target. The impact of our aid expenditures abroad
during that year was $340 million less than in 1962,
while military expenditures and procurement of stra-
tegic goods were down by $180 million. And this was
accomplished in the face of substantially rising costs
abroad.
We must, of course, to protect our balance of pay-
ments position, carry forward and realize full success
in achieving the $1 billion target — which will then have
virtually its entire impact on our balance of payments
in 1965.
On capital account, the flow of our savings into secu-
rities dropped to about $400 million, compared with
$1.7 billion in the previous twelve months. While per-
formance on our other capital accounts has been less
satisfactory, expanding investment opportunities here
at home have improved the attractiveness of invest-
ment in the United States — both for American and
foreign investors.
This over-all improvement in our balance of pay-
ments has been the key factor inspiring new confidence
in the dollar in markets throughout the world. This
improvement has been crucial
— in bringing our gold losses to a halt — indeed, our
total gold holdings so far this year have shown an
increase for the first time in seven years ; and
— in sustaining the close international financial rela-
tionships which have been developed to provide an
effective answer to any speculative outburst against
our currency in world markets.
The job is not yet complete — a gap still remains.
That gap must be closed. But we have taken a long
step forward. With the combined effort of Government
and private sectors, we can reach that goal.
Douglas Dillon
Chairman, Cabinet Committee
on Balance of Payments
Immigration Quota Established
for Malawi
A PROCLAMATION^
Whereas under the provisions of section 202(a) of
the Immigration and Nationality Act, each independent
country, self-governing dominion, mandated territory,
and territory under the international trusteeship sys-
tem of the United Nations, other than independent
countries of North, Central, and South America, is
entitled to be treated as a separate quota area when
approved by the Secretary of State ; and
Whereas under the provisions of section 201(b) of
the Immigi-ation and Nationality Act, the Secretary
of State, the Secretary of Commerce, and the Attorney
General, jointly, are required to determine the annual
quota of any quota area established pursuant to the
provisions of section 202(a) of the said Act, and to
report to the President the quota of each quota area so
determined ; and
Whereas imder the provisions of section 202(e) of
the Immigration and Nationality Act, the Secretary of
State, the Secretary of Commerce, and the Attorney
General, jointly, are required to revise the quotas,
whenever necessary, to provide for any political
changes requiring a change in the list of quota areas;
and
Whereas on July 6, 1964, the Nyasaland Protector-
ate, administered by the United Kingdom, became the
independent state of Malawi ; and
Whereas the Secretary of State, the Secretary of
Commerce, and the Attorney General have jointly de-
termined and reported to me the immigration quota
hereinafter set forth :
Now, therefore, I, Lyndon B. Johnson, President
' For text, see Bulletin of Aug. 12, 1963, p. 250.
' No. 3626 ; 29 Fed. Reg. 14913.
NOVEMBER 23, 1964
753
of the United States of America, acting under and by
virtue of the authority vested in me by the aforesaid
Act of Congress, do hereby proclaim and make known
that the annual immigration quota of the quota area
hereinafter designated has been determined in accord-
ance with the law to be, and shall be, as follows:
Quota Area Quota
Malawi 100
The establishment of an immigration quota for any
quota area is solely for the purpose of compliance
with the pertinent i)rovisions of the Immigration and
Nationality Act and is not to be considered as having
any significance extraneous to such purpose.
Proclamation No. 3298 of June 3, 1959," as amended,
entitled "Immigration Quotas," is further amended by
the addition of the quota for Malawi.
In witness whereof, I have hereunto set my hand
and caused the Seal of the United States of America
to be affixed.
Done at the City of Washington this thirty-first day
of October in the year of our Lord nineteen
[seal] hundred and sixty-four and of the Inde-
pendence of the United States of America the
one hundred and eighty-ninth.
luyvJUJ^3rfU.t»fc^' ■
By the President :
Dean Rusk,
Secretary of State.
U.S. Prepared To Table Industrial
Exceptions List at GATT Talks
The OfRce of the Special Representative for
Trade Negotiations announced on November 3
that the United States had notified the Execu-
tive Secretary of the General Agreement on
Tariffs and Trade (GATT), the Commission
of the European Economic Community, and
its major trading partners that it was prepared
to table its industrial exceptions list, together
with other key countries in tlie GATT, on No-
vember 16, the date earlier agreed to in GATT.
Discussions as to the treatment of agricul-
tural products continue. It is expected that
the substantive negotiations on both industrial
and agricultural products will begin at an early
date in 1965.
* For text, see Bulletin of July 6, 1959, p. 19.
Congressional Documents
Relating to Foreign Policy
88th Congress, 2d Session
United States Defense Policies in 1963. Prepared by
the Legislative Reference Service, Library of Con-
gress. H. Doc. 335. May 4, 19G4. 165 pp.
Immigration. Hearings before Subcommittee No. 1
of the House Committee on the Judiciary on H.R.
7700 and other bills to amend the Immigration and
Nationality Act. Part I. Serial No. 13. June 11-
30, 1964. 383 pp.
Discriminatory Ocean Freight Rates and the Balance
of Payments. Hearings before the Joint Economic
Committee (88th Congress, 1st and 2d sessions).
Part 5— Appendix. June 20, 1963-March 26, 1964.
497 pp.
United States Contributions to International Organiza-
tions. Twelfth report on the extent and disposition
of U.S. contributions to international organizations
for the fiscal year 1963. H. Doc. 313. June 29, 1964.
138 pp.
Satellite Communications — 1964 (Part 2). Hearings
before a subcommittee of the House Committee on
Government Oi)erations. August 6-11, 1964. 135 pp.
Inter-American Development Bank Act Amendment.
Hearing before the Subcommittee on International
Finance of the House Committee on Banking and
Currency on H.R. 12010, a bill to amend the Inter-
American Development Bank Act to authorize the
United States to participate in an increase in the
resources of the fund for special operations of the
Bank. August 11, 1904. 115 pp.
Claims Against Cuba. Report to accompany H.R.
12259. S. Rept. 1521. September 3, 1964. 18 pp.
Eleventh Annual Report of the Corregidor-Bataan Me-
morial Commission. H. Doc. 360. September 8,
1964. 2 pp.
Operation of Article A'll, NATO Status of Forces
Treaty. Report of the Senate Committee on Armed
Services made by its Subcommittee on the Opera-
tion of Article VII of the NATO Status of Forces
Agreement, covering the period December 1, 1962,
through November 30, 1963. S. Rept. 1541. Sept.
10, 1964. 16 pp.
Judicial Procedures in Litigation With International
Aspects. Report to accompany H.R. 9435. S. Rept.
1580. September 15, 1904. 20 pp.
Proposed Agreement for Cooperation Regarding the
Exchange of Atomic Information Between the Gov-
ernment of the United States of America and the
North Atlantic Treaty Organization and Its Mem-
ber Nations. Report pursuant to sec. 202 of the
Atomic Energy Act of 1954, as amended, on Statutory
Basis for Proposed Agreement With NATO. H.
Rept. 1890, September 17, 1964, and S. Rept. 1592,
September 22, 1964. 24 pp. each.
Second Annual Report of the U.S. Advisory Commis-
sion on International Educational and Cultural
Affairs. H. Doc. 864. September 21, 1964. 23 pp.
Public Law 480 Extension. Conference report to ac-
company S. 2687. H. Rept. 1897. September 22,
1964. 8 pp.
Eighth Annual Report of the President of the United
States on the Trade Agreements Program. H. Doc.
366. September 23, 1964. 22 pp.
Communication from the President transmitting a
proposed supplemental appropriation for the fiscal
year 1965. in the amount of $300,000, for the Depart-
ment of State. S. Doc. 102. September 24, 1964.
2 pp.
754
DEPARTMENT OF ST.VTE BULLETIN
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
International Cooperation in Outer Space
StateTnent hy Francis T. P. Plimpton
U.S. Representative to the United Nations '
From the dawn of the space age the explora-
tion of outer space has been conceived as a co-
operative venture. Each year, as the number
of nations conducting research in space in-
creases, the network of bilateral and multilat-
eral arrangements spreads.
There are many examples. The joint study
of the auroral ionosphere by the Scandinavian
countries, in cooperation with the United States,
is an example of the effective pooling of re-
sources by countries which share a common lo-
cale and access to common geophysical phe-
nomena.
The establislunent of ESRO [European
Space Research Organization] and ELDO
[European Space- Vehicle Launcher Develop-
ment Organization] illustrates the possibilities
of effective cooperation on a regional basis.
Such cooperation makes possible accomplish-
ments beyond the resources of individual par-
ticipants.
Cooperative satellite launchings of England,
France, Italy, and Canada with the United
States are enabling these countries to gain ex-
perience in satellite work, both useful in itself
and in developing the technological capability
for their own national satellite programs.
There are further examples of effective bilat-
eral cooperation — for instance, experimental re-
search conducted by France with Argentina,
Iceland, India, Pakistan, Japan, and the United
States. Worldwide ionospheric and meteoro-
logical research programs using U.S. satellites
are other examples of the kind of cooperation
which has made space a common venture.
And the scope and magnitude of activity in
outer space are increasing. By the end of the
first decade of space — in 1967 — there should be
not just two satellite-launching nations but a sig-
nificant number of other states and several in-
ternational organizations conducting such
launchings or participating directly in them.
The sounding-rocket programs of a score of
countries will be steadily increasing in scientific
and technical sophistication. All these ef-
forts— including ground-based work, telemetry,
and data acquisition — will be increasingly con-
solidated and coordinated through programs
and institutions of scientific exchange.
The review of national and cooperative inter-
national space activities prepared by the U.N.
Secretariat presents a picture of outer space ex-
ploration as it is carried on today in 37 coun-
tries.- The review of the activities and
resources of the United Nations itself, of its
specialized agencies, and of other competent in-
ternational bodies relating to the peaceful uses
of outer space ^ effectively completes this out-
^Made in the Committee on the Peaceful Uses of
Outer Space on Oct. 27 (U.S./U.N. press release 4457).
' U.N. doe. A/AC.105/L.13.
» U.N. doc. A/AC.105/L.12.
NOVEMBER 23, 1964
755
line. The variety and scope of information
contained in these reviews give some idea of the
enormous and growing field in which this com-
mittee operates and of the important work with
which it is entrusted.
Subcommittee Recommendations
This year the Scientific and Tecluiical Sub-
committee made a number of important recom-
mendations to increase the scope of our activi-
ties. The following actions will be taken, if
these recommendations are approved.
— This committee will ask the Secretariat to
update and republish the reviews just mentioned
every 2 years, and to improve the form and use-
fulness of the report, on national and interna-
tional programs.
— The committee will empower the Secre-
tariat to fimction as a clearinghouse of infor-
mation on education and training, thus foster-
ing the growth of cooperative space arrange-
ments and the spread of scientific and teclinical
Imowledge. This is a task that the Secretariat
would perform on a continuing basis.
— To assist nations the committee will ask
the Secretariat to compile useful information
on international conferences and symposia and
periodically inform member states so as to assist
them in assessing the importance and relevance
of these meetings.
— The committee will ask that steps be taken
to increase the size and usefulness of the outer
space library maintained by the Secretariat.
— The committee will ask the Secretary-
General to consider, in the light of existing
material, the usefulness and possibilities of pub-
lishing new material on the purposes and poten-
tialities of space activities, possibly in a series of
pamphlets or a handbook. With increasing
worldwide interest in outer space, we would
hope that this project might be fully considered
in tlie near future.
— The committee will recommend that the
General Assembly accord United Nations spon-
sorship to the first international sounding-
rocket facility, the Thumba International Equa-
torial Sounding Rocket Launching Facility.
My Government fully supports the recom-
mendations of the scientific group which visited
the facility in Januaiy 1964 and of the Scientific
and Technical Subcommittee. We are pleased
that France and the U.S.S.R. have also provided
assistance for the facility.
— The committee will take into account the
resolution adopted by COSPAE. [Committee on
Space Research] concerning potentially harm-
ful effects of space experiments. My delegation
hopes that the recommendations of COSPAR
on biological sterilization of space probes will
be supported by extensive international ex-
change of information. Accordingly, we hope
that the members of COSPAR will lend their
support to the convening of an international
conference on tliis particular matter, as pro-
posed in paragraph 9 of the COSPAR resolu-
tion.
In addition, the committee will be endorsing
the concept that nations undertaking experi-
ments in outer space should give full considera-
tion to the problem of potentially harmful effects
and should, where they consider it appropriate,
seek scientific analysis of the qualitative and
quantitative aspects of those experiments.
At the meeting of the Scientific and Technical
Subcommittee this spring, some delegations ex-
pressed interest in the possibility of organizing
in 1967 an international conference under
United Nations auspices on the exjiloration and
peaceful uses of outer space. Tlie United States
shares with others the belief that the passage of
the first decade in space exploration is an occa-
sion which properly deserves commemoration.
We believe, however, that a scientific and tech-
nical conference would largely duplicate, at a
very considerable expense in time and resources,
the same exchanges of information that are con-
ducted each year on an ever-widening scale by
such organizations as COSPAR, tlie many
scientific unions, the "WlIO [World Meteor-
ological Organization], the ITU [International
Telecommunication Union], the other special-
ized agencies, the International Astronautical
Federation, and many national agencies. Nearly
all of the nations conducting space research are
already publisliing the results of their work as
soon as these are obtained. Such a conference
is not likely to produce any more information
than is currently produced as a matter of course,
and we question whetlier the very considerable
additional expense, both in time and money,
would be justified.
756
DEPARTMENT OF STATE BULLETIN
Rather than a full-blown United Nations
conference we would suggest a commemorative
meeting of the Outer Space Committee itself in
1967. In addition to the handling of the com-
mittee's usual business, the meeting could pro-
vide a wide exchange of views on matters of
general interest in space. It could feature the
reports of experts on the achievements of the
space age in the past 10 years and outline the
possibilities and potentialities for the future.
Such a meeting would be a culmination of the
work of this committee since its inception and
would be a fitting task to engage its energy and
resources.
Meteorology and Telecommunications
A belief central to this committee is, and I
quote from Resolution 1721 (XVI) ^ that "the
exploration and use of outer space should be
only for the betterment of mankind and to the
benefit of States irrespective of the stage of their
economic or scientific development." In recent
years there have been developments in two
areas which otfer the greatest promise of wide-
scale benefit for mankind from outer space re-
search : meteorology and telecommunications.
This year has witnessed impressive progress
in both fields. In meteorology the World
Meteorological Organization has moved ahead
with its planning for the establishment of a
World Weather Watch.
The third report = of the WMO on the atmos-
pheric sciences and developments in outer space
stresses two ways in which meteorological satel-
lites may affect the proposed World Weather
System :
(a) as a means of obtaining unprecedented
observations of the earth's atmosphere ; and
(b) as a means of communication for the col-
lection and exchange of meteorological data on
a global scale.
The United States has two meteorological
satellites now in orbit which are continuing
to provide weather information: Tiros VII
launched on June 19, 1963, and Tiros VIII on
December 21, 1963.
Nimbus I was lamiched on August 28 of this
year and has demonstrated the value of a num-
ber of improvements. In contrast with earlier
meteorological satellites, Nimbus was oriented
continuously toward the earth enabling it to
provide daily observations over the entire earth.
Like its immediate predecessor Tiros VIII,
Nimbus I was equipped with an automatic pic-
ture transmission system, which made it possible
for suitably equipped ground stations in other
countries to obtain direct cloud-cover pictures
over their local areas at relatively low cost.
The Nimbus satellite demonstrated conclusively
the value and importance of several previously
untried concepts in space technology, including
high-resolution infrared data on nighttime
cloud systems, giving us global weather infor-
mation on a 24-hour basis.
In the field of space communications the
the third report ^ of the International Telecom-
munication Union provides an account of the
commendable achievements of the Extraordi-
nary Administrative Radio Conference on the
allocation of frequency bands for space com-
munications convened by the ITU in October
of last year.
The United States has in the last year con-
tinued to perfect the synchronous orbit tech-
nique for space communications. On August 19,
1964, Syncom III was successfully launched
and is now in an almost completely stationary
orbit 22,300 miles above the Pacific Ocean. It
has served to transmit the 1964 Olympics from
Japan to television viewers in North America
and Europe.'
Resolution 1721 of the 16th General Assem-
bly stated that "communication by means of
satellites should be available to the nations of
the world as soon as practicable on a global and
non-discriminatory basis." Resolution 1802 ' of
the 17th General Assembly stressed "the im-
portance of international co-operation to
achieve effective satellite commmiications which
will be available on a world-wide basis." On
' For text, see Bulletin of Jan. 29, 1962, p. 185.
" TJ.N. doc. A/AC. 10.5/L.lO/Rev. 1.
' U.N. doc. E/3890/Add. 1.
' For statements made by President Johnson, Secre-
tary Ru.sk, and Foreign Mini.ster Shiina of Japan on
Oct. 7 as part of a program inaugurating the transmis-
sion of television communications between the U.S.
and Japan through Syncom III, see Bulletin of Oct. 26,
1964, p. 591.
' For text, see ibid., Jan. 7, 1963, p. 28.
NOVEMBER 23, 1964
757
July 24, 1964, 19 countries, including the
United States, joined together m completing
two agreements " for the establishment of in-
terim arrangements for a global commercial
communications satellite system as envisaged
in these resolutions. The agreements will re-
main open to accession by all member states
of the International Telecommunication Union.
However, it is not necessary to adhere to these
agreements nor to invest in these arrangements
for any nation to have access to the satellite
communications system being established. Ac-
cess will be open to all as it becomes teclmically
feasible.
These agreements have been submitted for
registration to the Secretary-General of the
United Nations in accordance with article 102
of the Charter of the United Nations. Copies
of the agreements have been made available to
the members of the committee. In this con-
nection I call to the attention of members a
progress report '" which the United States in
association with the other 16 signatories is to-
day submitting to the Secretary-General.
The timetable for this operational system in-
cludes the launching of an experimental-
operational "Early Bird" synchronous satellite
over the Atlantic Ocean in March 1965. By the
fall of 1965 the international policy committee
for these arrangements will take a decision as
to the basic operational system, and the deploy-
ment of the global system will begin in 1966.
These satellites will provide voice, teleg-
raphy, high-speed data, facsimile, and televi-
sion communications service as rapidly as
practicable on a global and nondiscriminatory
basis.
Commimication traffic is expanding in all
areas of the world. While the North Atlantic
route is the heaviest traffic area at present, traf-
fic will undoubtedly increase rapidly in other
parts of the world as well. All areas of the
world will profit through the use of satellite
communications facilities. Improved conunu-
nications contribute significantly to increased
international trade and investment, travel, ed-
ucation and cultural opportunities, and the ex-
change of ideas among people in different parts
of the world, thus furthering peace and inter-
national understanding. We look forward to
use by the United Nations itself of the increased
commmiications facilities to be made available
by the proposed satellite sj'stem.
Legal Problems of Outer Space Exploration
I should like to turn now to another area in
wliich this committee has been entrusted with
special responsibilities : the area of legal prob-
lems which maj' arise from the exploration of
outer space. Since its inception, the commit-
tee has made notable progress. At its instance
Resolution 1721 of the 16th General Assembly
expressed the view that international law and
the United Nations Charter apply to outer
space and laid down the principle that outer
space and celestial bodies are free for explora-
tion and use by all states and are not subject
to national appropriation.
This resolution established the basis for the
next major development: the Declaration of
Legal Principles Governing the Activities of
States in the Exploration and Use of Outer
Space, adopted at the instance of this commit-
tee by the 18th General Assembly as Resolu-
tion 1962.'^ The operative paragraphs of this
resolution contain legal principles wliich the
Assembly has declared should guide states in
the exploration and use of outer space.
Resolution 1963 " of the same Assembly re-
quested the committee "in particular to arrange
for the prompt preparation of draft interna-
tional agreements on liability for damage caused
by objects launched into outer space and on as-
sistance to and return of astronauts and space
vehicles." The basis for these agreements had
already been accepted in paragraphs 7 through
9 of the declaration.
The work of drafting these agreements has
occupied the Legal Subcommittee in its session
in March and its resumed session which has just
been completed.
On the question of liability, we have had a
full and useful exchange of views. In addition
to the revised text presented by my country we
have considered texts prepared by Belgium and
Hungary. I think all the delegates who at-
• For texts, see ibid., Aug. 24, 1964, p. 281.
" U.N. doc. A/AC. 105/22.
" For text, see Bulletin of Dec. 30, 1963, p. 1012.
" For text, see ibid., p. 1013.
758
DEPARTMENT OF STATE BULLETIN
tended these meetings would agree on the high
quality of legal argument and analysis M'hich
has prevailed. The foundation has been laid.
My delegation is eager to contmue the work of
raising the growing structure of agreed lan-
guage. "We believe the work should be pursued
at the Legal Subcommittee's next meeting so
that a fully agreed text may be reached as soon
as possible.
On assistance and return, there has been i^er-
haps greater progress, based in part, no doubt,
on the greater simplicity of the subject. Some
issues remain unresolved, but my delegation be-
lieves that a continuation of the positive efforts
which were made by all concerned during the
recent session of the subcommittee will lead to
fruitful results.
Agreements on liability and on assistance and
return will represent yet another step toward
the construction of a regime of law in outer
space. They will fittingly complement the prog-
ress we have made in the scientific and techni-
cal area. With good will, we can match prog-
ress in both areas and lend credence to those
who would claim for our committee an impor-
tant role in giving the principles of the charter
relevance to the new environment of outer space.
Security Council Recommends Malta
and Zambia for U.N. IVIembership
Statement hy Charles W. Yost ^
Mr. President, the United States is happy to
vote today in favor of the accession of Malta
and Zambia to the United Nations. It is a
pleasure to welcome to the United Nations new
states who will share the burden of our respon-
sibilities and the satisfaction of our accomplish-
ments. Though a vast amount remains to be
done to secure world peace, the chai-ter of this
organization provides us with the possibility
and the prospect of creating a better, a safer, a
more productive world. We expect that both
Malta and Zambia, in accordance with their past
" Made in the U.N. Security Council on Oct. 30 (U.S./
U.N. press release 4462). Mr. Yost Is Deputy U.S. Rep-
resentative in the Security Council.
histoi-y and national characters, will play a lead-
ing role in these tasks.
]\Iy own country has long enjoyed friendly
relations with both Malta and Zambia. Since
the Second World War, in which Malta played
such an important part, the United States has
had a consulate there and has welcomed thou-
sands of Maltese settlers to our shores. We are
both seafaring people, and our sailors have long
known and admired Malta and the Maltese.
We have also had excellent relations with
Zambia and its people. Many United States
citizens have enjoyed its hospitality. United
States Government officials have been active
there in the fields of education, communications,
and rural development. In addition, United
States private citizens as missionaries and as in-
vestors in the copper industry, which forms the
principal basis of Zambia's wealth, have partici-
pated in the life of the country. Many Zam-
bians have also come to the United States as stu-
dents. That distinguished African statesman,
the present Prime Minister, Kenneth Kaunda,
has visited this country a number of times, and
we have the deepest respect and admiration for
him. My Government has had the honor of
sponsoring a training program for Zambian
diplomats at American University in Washing-
ton and Columbia University here in New York.
My delegation would like to stress one of the
points that these two countries have in com-
mon— that is, the peaceful transition to inde-
pendence. We consider the way in which they
have reached their goal reflects great credit on
them and on the former administering power,
which has facilitated and welcomed the process
of self-determination and the accession to inde-
pendence of these new states. We are sure that
their role in the United Nations will be a moder-
ate and constructive one. In a time of crisis
such as the United Nations faces, small and
large nations alike must assume such attitudes
if we are to retain and increase the strength of
our organization. We welcome Malta and
Zambia, therefore, with the conviction that
their future in the United Nations will be as
constructive as have been their past roles in
world history.^
' The Council on Oct. 30 unanimously recommended
that Malta and Zambia be admitted to membership in
the United Nations.
NOVEMBER 23, 1964
759
U.S. Views on U.N. Subcommittee's
Report on South-West Africa
Statement ty Marietta P. Tree ^
The Special Committee now has before it the
report of Subcommittee I concerning the min-
ing industry and other international companies
having interests in South-West Africa.^ I must
say candidly that my delegation has found the
conclusions and recommendations of this report
disappointing.
The committee will remember that in the reso-
lution of November 13, 1963/ the General As-
sembly asked this committee to assess the eco-
nomic and political influence of international
companies active in South-West Africa and to
report to the General Assembly. The report
which has now appeared after nearly a year's
work does not provide a valid assessment. Its
conclusions and reconunendations constitute a
largely unconstructive and unfounded series of
condemnations and gratuitous calls for action
which at times become undisguised propaganda
attacks on the United States and the United
Kingdom.
Many of the ideas reflected in the recom-
mendations are as flat and stale as the slogan-
like terms in which they are stated. They are,
Mr. Chairman, entirely inappropriate in what
purports to be a study of implications of eco-
nomic activity for the enlightenment of the
General Assembly.
Specifically my delegation is concerned that
the subcommittee has exceeded the terms of
reference established for it by the General As-
sembly. We are equally concerned that the
subcommittee has apparently seen fit so to ig-
nore tlie factual analysis presented in part two
of the report as to raise grave doubts about the
validity of the subcommittee's recommenda-
tions. I should like to touch briefly on each of
these points.
iJIade before the U.N. Special Committee on the
Situation With Regard to the Implementation of the
Declaration on the Granting of Independence to Co-
lonial Countries and Peoples on Oct. 30 (U.S./U.N.
press release 4463). Mrs. Tree is the U.S. Representa-
tive on the committee.
= U.N. doc. A/AC.109/L. 154.
"U.N. doc. A/RES/1899 (XVIII).
First, Mr. Chairman, may we look again at
the terms of reference laid down by the General
Assembly when it requested the Special Com-
mittee to engage in its study. The committee
was directed "To consider, in co-operation with
the Secretary-General and the agencies of the
United Nations, the implications of the activi- J
ties of the mining industry and the other inter- '
national companies having interests in South
West Africa, in order to assess their economic
and political influence and their mode of opera-
tion." It was "To report on these questions to
the General Assembly at its nineteenth session."
It is both useful and desirable, of course, for
the committee to explore matters which can give
an insight into the welfare of the inhabitants
and the general material progress of a mandated
territory. My delegation fully supports this
undertaking. I would remind the cormnittee
that the United States in Committee IV had
suggested sharpening the focus of this para-
graph so as to direct the study to the eifect of
international investments "on the welfare of the
people of South West Africa." This, we hoped,
would relate the study specifically to the re-
sponsibility of this conunittee for dependent
peoples.
In any event, the General Assembly's instruc
tions, as stated, were ignored ; the economic and
Ijolitical influence of international companieSj
are not assessed. In fact, there is little reflec
tion of any process of careful analysis in the
subcommittee's conclusions and recommenda-
tions. The subcommittee does not evaluate the
activities of industry but strongly condemns the
activities of international companies. The sub-
committee then calls upon South Africa uni-
laterally to abrogate contractual agreements
with international companies for reasons un-
specified. It condemns in general terms the
granting of concessions, again unsupported by
any semblance of the analysis requested by the
General Assembly. Finally, without specifying
reasons, it calls upon my Government to inter-
fere with the lawful international activities of
lawful American business enterprises . Without
pursuing more specific instances, Mr. Chairman,
I must say that my delegation fails to see what
purpose would be served by sending such a
collection of unfounded condemnations and un-
justified requests to the General Assembly. Such
i
760
DEPARTMENT OF STATE BULLETIN"
recommendations are not within the scope of
the work this committee was requested to per-
form, nor are they consistent with the serious
responsibility placed upon the committee when
it was formed.
Finally, Mr. Chairman, I must treat briefly
the question of the accuracy of some of the
premises and assumptions of fact which are
implicit, or present by innuendo, in the recom-
mendations. The cruder of these recommenda-
tions clearly hawk the economic theories of a
minority of this committee. They do not pro-
ceed from an assessment of facts.
Mr. Chairman, as the committee is aware, the
General Assembly enabling resolution requested
the Special Committee to obtain the assistance
of the Secretary-General. The Secretariat, ac-
cordingly, was asked to prepare a working
paper on the activities of the mining and other
industries in South-West Africa. It did so, and
the working paper stated that the Secretariat
had obtained infonnation from a number of
independent sources. The working paper was
then made available to the subcommittee to fa-
cilitate its work.
The working paper, much of wluch has been
incorporated as part two of the subcommittee
report., was notable for the thoroughness and
balance of the facts it assembled. We see, for
example, that there are extensive sections on
labor legislation and practices, mining legisla-
tion, and the various laws of the teiTitory under
which foreign companies operate. There is an
interesting and comprehensive description of the
various international companies — ownership,
capitalization, their role in the economy of
South-West Africa — including taxes paid and
labor employed. The economic and industrial
pattern which emerges would have been useful
to the study of the subcommittee in making its
final assessment. But it appears that the facts
have been, for the most part, ignored rather
than construed in reaching the report's fanciful
conclusions and recommendations. Let me cite
two or three examples.
1. Paragraph (b) of the subcommittee's rec-
ommendations condemns foreign companies for
acting "for the sole benefit of these companies."
Part two of the report notes, however, that not
only does 75 percent of all territorial revenues
derived from income tax come from mining.
fishing, and related companies (15.3 million
rand in 1962-63) but local expenditures of these
companies in wages and purchases rose from
R1.6 million m 1938 to R20.3 million in 1960 and
R28.3 million in 1963. Yet these substantial
contributions to the local economy are disre-
garded. That same paragraph states that the
activities of international companies "represent
one of the major obstacles in the way of the
counti-y to independence." I wonder if the ex-
periences of a number of members of this com-
mittee would allow them to support tliis sort of
generality. Many enterprises established dur-
ing the colonial era have welcomed independence
and continued to contribute to the economies of
the emerging independent countries.
2. Paragraph (c) states the Government of
South Africa's support of and participation in
international companies' activities in South-
West Africa "run counter to the provisions of
the Mandate." I challenge this contention.
The participation of foreign interests in the de-
velopment of the territory is contrary neither
to the terms nor the spirit of the mandate. I
find no explanation in this report which indi-
cates how the subcommittee came to its conclu-
sion. This is a typical example of the subcom-
mittee's approach. Part two of the report,
based on the Secretariat paper, analyzes the ac-
tivities of foreign companies within the strict
legislative and administrative limitations im-
posed on them by the administering power.
The conclusions and recommendations, how-
ever, dismiss these limitations and seem irra-
tionally determined to attack foreign invest-
ment as solely responsible for the inequities
described in part two.
3. Paragraph (e) states that "the policies of
apartheid in South West Africa . . . among
others, create favourable conditions for . . .
international companies." The Secretariat
study notes that apartheid labor laws are re-
sponsible for the cleavage of African and white
labor along unskilled and skilled, high- and low-
paid employment lines. Nowhere, however,
are any particular advantages accruing to an
industrial employer from a large, uneducated,
unskilled labor force set forth. The chairman
of the Anglo-American Corporation in fact has
indicated the contrary to be true. He points
out that low productivity resulting from such a
761
labor force and the consequently low wages are
not only undesirable in themselves but undesir-
able for effective industrialization. In de-
scribing company training programs to over-
come this situation, he notes that "attempts to
remedy this situation are, of course, made more
difficult by the legislative color bars which are
imposed on industry in South Africa." The
South-TVest African labor legislation described
in the Secretariat report is substantially the
same as that in South Africa. I note that the
chairman and president of American Metal
Climax has made similar comments in his com-
pany report : "It is to be hoped that the govern-
mental authorities will now be prepared to
sponsor or permit substantial modernization of
the standards and conditions of employment and
life of the African workers in the Territory."
In closing, Mr. Chairman, my delegation must
record its inability to understand the request of
the Special Committee that the United States
of America put an end to its support of the
Republic of South Africa. The position of my
Government on the issue of apartheid is quite
clear, and the implication behind this recom-
mendation is contradicted in my Government's
record. Such allegations also jeopardize the
serious purposes of this committee. Political
progress in South Africa is one of our most
pressing concerns here, and my Government
continues its willing support for constructive
action. Engaging m politically inspired invec-
tive can only obstruct the path to this goal.
For all these reasons — for the unsuitability of
the subcommittee's conclusions and recommen-
dations in light of the General Assembly's di-
rective to the subcommittee and for rank inac-
curacy and contentiousness of statement — my
delegation opposes tlie adoption of the subcom-
mittee's conclusions and recommendations in
their present form. We would hope further
that the impropriety of sending such a report to
the General Assembly will be obvious to the
Special Committee and that it will act accord-
ingly."
TREATY INFORMATION
' On Nov. 10 the Special Committee adopted the re-
port as a whole (U.N. doc. A/AC.109/L.1.'J4), as re-
vi.sod, by a vote of 16 to 4 (U.S.), with 4 abstentions.
The recommendations of the subcommittee appended
to the report were adopted by a vote of 16 to 6 (U.S.),
with 2 abstentions.
Current Actions
MULTILATERAL
Aviation
Convention on international civil aviation. Done at |
Chicago December 7, 1944. Entered into force April
4, 1947. TIAS 1591.
Adherence deposited: Zambia, October 30, 1964.
Law
Statute of the Hague conference on private interna-
tional law. Done at The Hague October 9-31, 1951.
Entered into force July 15, 1955.
Acceptance deposited: United States, October 15,
1064.
Marriage
Convention on consent to marriage, minimum age for
marriage, and registration of marriages. Done at
United Nations Headquarters, New Yorli, December
10, 1062."
Accession deposited: Dominican Republic (with res-
ervation), October 8, 19f)4.
Narcotic Drugs
Protocol bringing under international control drugs
outside the scope of the convention limiting the manu-
facture and regulating the distribution of narcotic
drugs concluded at Geneva July 13, 1931 (48 Stat.
1543), as amended (61 Stat. 22.30; 62 Stat. 1796).
Done at Paris November 19, 1948. Entered into force
for the United States September 11, 1950. TIAS
2308.
Acceptance deposited: Tanganyika and Zanzibar, Oc-
tober 7, 1964.
BILATERAL
Brazil
Amendment to the agreement of August 3, 1955, as
amended (TIAS 3.303, 4255, 4539, 5510), for coopera-
tion concerning civil uses of atomic energy. Signed
at Washington September 1, 1964.
Entered into force: November 2, 1964.
Chile
Agreement uniting and replacing the agreements on
Air Force, Army, and Naval missions of the United
States in Chile. Effected by exchange of notes at
Santiago October 27, 1964. I5ntered into force Octo-
ber 27, 1964.
Yugoslavia
Agreement regarding claims of United States nationals,
with exchange of notes and interpretative minute.
Signed at Belgrade November 5, 1004. Enters into
force on the date of exchange of notes confirming that
it has been approved by the competent authorities
of both Governments.
' Not in force.
762
DEPARTMENT OP STATE BULLETIN
INDEX November £3, 1964. Vol. LI, No. 1326
Image in Africa (Wil-
Africa. America's
liams) 730
American Republics. Health and Social Progress
in Latin America (Murat W. Williams) . . 747
Congress. Congressional Documents Relating
to Foreign Policy 754
Economic AfiFairs
President Outlines Position on Balance of Pay-
ments and Trade (statements) 751
U.S. Improves Balance-of-Payments Position ;
Increases Gold Holdings (Dillon, Johnson) . 752
U.S. Prepared To Table Industrial Exceptions
List at GATT Talks 754
U.S. Views on U.N. Subcommittee's Report on
South-West Africa (Tree) 760
Foreign Aid
Health and Social Progress in Latin America
(Murat W. Williams) 747
President Calls for Increase in Peace Corps
(statement) . . 735
Health, Education, and Welfare. Health and
Social Progress in Latin America (Murat
W. Williams) 747
Immigration and Naturalization. Immigration
Quota Established for Malawi ( text of procla-
mation) 753
International Organizations and Conferences
Geneva, a Center of International Cooperative
Efforts (Tubby) 740
U.S. Prepared To Table Industrial Exceptions
List at GATT Talks 754
Malawi. Immigration Quota Established for
Malawi (text of proclamation) 753
Malta. Security Council Recommends Malta
and Zambia for U.N. Membership (Yost) . . 759
Presidential Documents
Immigration Quota Established for Malawi . . 753
President Calls for Increase in Peace Corps . . 735
President Outlines Position on Balance of Pay-
ments and Trade 751
U.S. Improves BaUiuce-of-Payments Position;
Increases Gold Holdings 752
Protocol. Protocol and Peacekeeping (Duke) 736
Science. International Cooperation in Outer
Space (Plimpton) 755
South Africa. U.S. Views on U.N. Subcommit-
tee's Report on South-West Africa (Tree) . 760
Treaty Information. Current Actions . . . 762
United Nations
International Cooperation in Outer Space
(Plimpton) 755
Protocol and Peacekeeping (Duke) . , . . 736
Security Council Recommends Malta and Zambia
for U.N. Membership (Yost) 759
U.S. Views on U.N. Subcommittee's Report on
South-West Africa (Tree) 760
Zambia. Security Council Recommends Malta
and Zambia for U.N. Membership (Yost) . . 759
Name Index
Dillon, Douglas 752
Duke, Angler Blddle 736
Johnson, President 735, 751, 752, 753
Plimpton, Francis T. P 755
Tree, Marietta P 760
Tubby, Roger W 740
Williams, G. Mennen 730
Williams, Murat W 747
Yost, Charles W 759
Check List of Department of State
Press Releases: November 2-8
Press releases may be obtained from the Office
of News, Department of State, Washington, D.C.,
20520.
Release issued prior to November 2 which ap-
pears in this issue of the Bulletin is No. 465
of October 22.
No.
*476
*477
Date
11/3
11/2
t478 11/4
*479 11/6
t4S0 11/5
481 11/7
Subject
Cultural exchange (Ethiopia).
U.S. participation in international
conferences.
Mann : "Social Justice in the United
States and in the Hemisphere."
Cleveland : University of Maryland.
Claims agreement with Yugoslavia.
Williams : "America's Image in
Africa."
''Not printed.
tHeld for a later issue of the Bulletin.
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of foreign trade with particular emphasis on U.S. trade policy.
Some aspects of U.S. trade policy wliich are discussed include the importance of foreign trade
the United States, the trade challenges posed by Western Europe, the market potential offered by tl
developing nations, attitude toward trade with Communist countries, the Trade Expansion Act of 196
and the Kennedy Round of tariff negotiations. i
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BULLETIN
Vol. LI, No. 1327
Novemher 30, 196^.
TEADE AND THE ATLANTIC PARTNERSHIP
Address hy Secretary Rusk 766
GERaiANY AND THE ATLANTIC PARTNERSHIP
hy Under Secretary Ball 773
SOCIAL JUSTICE IN THE UNITED STATES AND IN THE HEMISPHERE
hy Assistant Secretary Mann 775
INTERNATIONAL HUMAN RIGHTS YEAR
Statement hy Franklin H. Williams 787
THE INTERNATIONAL, ATOM
hy Glenn T. Seahorg 779
For index see inside hack cover
Trade and the Atlantic Partnership
Address 'by Secretary Rush ^
This is an auspicious day on which to begin
your Council's deliberations on world trade and
economic development. Today, in Geneva, the
leading trading nations have begun in earnest
the sixth and potentially the most far-reaching
of the postwar negotiations under the General
Agreement on Tariffs and Trade. The economic
prospects of the free world are thereby brighter.
We have come tliis far in the Kennedy
Round,^ after many delays and after long and
complex preliminary bargaining with our trad-
ing partners. Tlie Trade Expansion Act was
passed in October of 1962. We hoped then,
vsdth the extensive tariff negotiating authority
that the Congress had given to the President,
* Made before the National Foreign Trade Council at
New York, N.Y., on Nov. 16 (press release 489).
' For remarks made by Christian A. Herter, the
President's Special Representative for Trade Negotia-
tions, at the opening public session on May 4 and the
text of a declaration by the GATT Trade Negotiations
Committee, see Bulletin of June 1, 1964, p. 878.
that the United States and its trading partners
could move promptly to a large-scale attack on
barriers to international trade.
In the event, we encoimtered disappointments
and difficulties, some foreseen, others unex-
pected. The negotiations for British entry into
the European Economic Community, which
were well advanced in the fall of 1962, did not
succeed. Our adjustment \a the developing
European system brought trade problems, along
with substantial trade expansion.
Our problems, as we anticipated, have cen-
tered particularly in agricultural trade. We
have always recognized that the process of Eu-
ropean unification would require common agri-
cultural policies and unified prices. We have
also recognized that these policies could involve
problems for us. The controversy over poultry
trade was a dramatic example of this. But we
remain confident that Europe's common agri-
cultural policy will not — in Europe's interest —
prove to be autarkic but will — in the general
interest — prove to be negotiable.
DEPARTMENT OF STATE BULLETIN VOL. LI, NO. 1327 PUBLICATION 7780 NOVEMBER 30, 1964
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766
DEPARTMENT OP STATE BULLETtlT \
Then, too, the advance preparations for the
Kennedy Round uncovered serious technical, as
well as economic, issues. Partly, they reflect
the fact that these negotiations break new
ground in commercial bargaining among na-
tions and hence require new rules.
Governor Herter's task as the President's
Special Representative for Trade Negotiations
has thus been demanding and complicated, and
sometimes frustrating. But he has not been
diverted from the main goals of our policy.
So, in a mood of hopeful realism, we have
entered upon a major effort to reduce further
the customs tariffs of the leading trading na-
tions. We propose to move measurably closer
to an efficient allocation of productive activ-
ities on an international scale. We continue
to seek, as John F. Kennedy said in May 1962,^
greater growth at home, greater progress
around the world, and the emergence of a
greater Atlantic partnership. We shall do our
part to make the negotiations a success.
Two Basic Lines of U.S. Foreign Policy
The Kennedy Round embodies two long-
standing and basic lines of American foreign
policy. One is the drive for freer trade and
an increasing flow of commerce throughout the
world. The other is our support for a strong
and united Western Europe, capable of acting
in partnership with the United States in the
great enterprises that lie before us.
Our commitment to an open system of inter-
national trade goes back to 1934 and to one of
my most distinguished predecessors. Secretary
Hull. Mr. Hull fought for the Reciprocal
Trade Agreements Act when the world seemed
to be hopelessly entangled in a net of restric-
tions and controls on international commerce.
He pushed ahead in the face of towering ob-
stacles. His example and his vision carried
over through the war and into the early post-
war years. These years proved to be unmensely
productive of progress in world trade.
In the 1947 tariff negotiations, following
upon renewal of the Trade Agreements Act in
1945, we first used the multilateral tariff bar-
' For text of remarks made by President Kennedy
before a conference on trade policy at Washington,
D.C., ou May 17, 1962, see ibid., June 4, 1962, p. 906.
gaining technique. That technique was there-
upon codified in the General Agreement on Tar-
iffs and Trade. The deep cuts in tariff's in
1947 were followed by further cuts in 1949,
1951, 1956, and 1960-1961, all in response to the
leadership of the United States.
Not only were tariff's reduced substantially
over these years, but we contracted in the Gen-
eral Agreement and in the International Mone-
tary Fund to dismantle as rapidly as possible
the other chief forms of trade restrictionism :
that is, quotas and exchange controls. These
have been largely eliminated among the indus-
trial countries.
Tlie rewards of liberal trade policies are there
for all to see. International trade has boomed.
The free world is now exchanging goods to
the annual value of $300 billion, and this amount
is rising regularly and rapidly. Our own for-
eign trade is rvmning at the level of more than
$42 billion. Our exports have grown by $7 bil-
lion— almost 50 percent — in 10 years. We are
all richer, our standards of living are more
varied, our countries are more productive, be-
cause we have unshackled ourselves of many of
the restraints of trade.
Our commitment to European unity has been
a main strand of American foreign policy since
World War II. It has been expressed in the
Marshall Plan, in the North Atlantic Treaty,
in our support of EURATOM [European
Atomic Energy Community], the European
Coal and Steel Community, and the Common
Market.
These momentous developments have brought
into being a new Western Europe. If we look
beyond the day's headlines and use the perspec-
tive of the past two decades, we observe a
changed Europe — prosperous, fully employed,
and technically modem. It has a growing econ-
omy, an expanding trade, and an excellent
economic outlook.
Its basic political health, moreover, provides a
firm foundation for this change. The threat of
domestic Communist parties — so omnipresent
and, in France and Italy, so ominous little more
than a decade ago — has receded into relative
shadow. The ancient rivalries within Europe
have faded. A more unified Europe now can
be contemplated as a realizable project, not
NOVEMBER 3 0, 1964
767
merely by visionaries but by responsible men of
affairs.
We liave come far indeed from the days when
Western Europe was devastated, enfeebled, and
in grave and immediate hazard of political dis-
aster.
Here too we can see about us the reward of
sound policies. A prosperous Europe contrib-
utes to a prosperous America. The volume of
our trade with Western Europe has grown by
125 percent during the past decade — a far
higher rate tlian the growth in our overall
trade. Similarly, our exports to the six coun-
tries of the European Economic Community
alone have grown by 85 percent, or by more than
$2 billion, since the Common Market was estab-
lished in 1958. The record underscores the
economist's axiom that trade grows as econ-
omies grow.
But even more important, we now have a
strong, politically healthy Western Europe.
Such a Europe is indispensable to a strong and
secure free world. The dangers still facing us
are formidable enough for anyone. But we are
no longer face to face with the danger of eco-
nomic and political collapse in a crucial area
of the Western alliance. Instead, we have in
Europe two thriving trade groupings and an
evolving commimity with manifold prospects
for extended forms of cooperative Atlantic
action.
Of course our European allies have their in-
dependent points of view. Who would have
expected otherwise? Equally, who would say
today that our interests — and our security —
have not been immeasurably furthered by the
progress that has been made in Western
Europe?
The Atlantic Partnership In a Prospering World
It was implicit in our policy from the first
that a revived, prospering, and unifying Eu-
rope would be able to share with the United
States the burdens and responsibilities that we
have borne and discharged since the end of the
Second World War. Western Europe, taken
as a whole, has the industrial potential and the
overall economic capacity to approach or to
match the United States. Together we can sus-
tain the levels of physical output and the de-
gree of technical progress needed for the com-
mon defense. Together we can furnish the
capital resources, the teclmical help, and the
expanding markets that must be available if
the less developed countries are to have their
fair chance at the future. Together we can
work for peace and freedom in a prospering
world.
The combined gross national product of the
North Atlantic community in 1964 will be more
than $1 trillion. These countries, along with
Japan, possess by far the greatest part of the
world's modem industrial plant. They have the
research facilities and the teclmical and scien-
tific skills to permit steady and impressive gains
in productivity. Their capacities for generat-
ing savings are enormous. Their institutions
for putting these savings to useful work are
effective.
For us to work together to the end of making
our countries and our peoples richer and more
secure is not a matter of new organizations and
procedures. For the most part we have in
being, or we know how to create, the means for
better cooperation in trade, in financial affairs,
in defense, in aid. We must now demonstrate
the political will to seize the opportimities that
we have worked long and hard to create.
Opportunity Offered by Kennedy Round
The Kennedy Round is such an opportunity.
It offers to the United States and the Common
Market, to the United Kingdom and its free-
trade associates, to Canada and Japan, and to
all the other participating countries the possi-
bility for strengthening the economic and trade
ties that help to bind us together. A successful
Kennedy Roimd can expand the exports and
improve the domestic economy of every nation
taking part in it. Furthermore, it can open
wider markets to all of the less developed coim-
tries, without discrimination. Its beneficial ef-
fects on international commerce and economic
development will continue and cmnulate over
an indefinite future.
The United States has always considered the
new round of tariff negotiations especially im-
portant to beneficial relationships with the
European Common Market. In the Trade
Expansion Act we obtained the statutory au-
768
DEPARTSIENT OF STATE BtJLLETIN
thority that permits us to join with the new
European group and others in a long step to-
ward reducmg and eliminating obstacles to
world trade. We were and are prepared to
give the reciprocal concessions that the Com-
mon Market can properly ask in return for
reductions in the common tariff that now sur-
rounds it.
The specific act that occurred in Geneva today
was the depositing of lists of exceptions — a list
of the industrial items which have been reserved
from the full 50-percent across-the-board re-
duction called for by the rules governing the
Kennedy Koimd. In providing for exceptions
to a linear reduction the GATT coiuitries
agreed that they should be held to a bare mini-
mum and should be justified in each case on
grounds of "overriding national interest."
We helped to frame this austere rule. We
have tabled an exceptions list that reflects, I
believe, its letter and spirit. We look to our
trading partners for exceptions lists that are
similarly limited. Having devised and agreed
upon the procedures to allow a really large-
scale reciprocal cut in national tariffs, it would
be lamentable if we were to fail to follow
through.
Common Advantage in Lowering Trade Barriers
Indeed, we and other industrial nations
should be clear about our self-interests in these
negotiations. The bargaining takes the form
of an adversary relation, but the outcome is to
our common advantage.
The reasons stem from the economic structure
of our contemporary world. It is a striking
fact that we trade and invest more with other
industrial countries than we do with develop-
ing countries. Eoughly two-thirds of our for-
eign trade and almost as much of our direct
investments abroad are concentrated in Canada,
Japan, Australia, and the countries of Western
Europe. It is in these countries, moreover,
that our trade and investment have risen most
rapidly throughout the postwar period. They
are the dynamic sector of our private economic
activities abroad.
This is a far cry from Marxist tenets. These
trends, in fact, make a mockery of the tradi-
tional Marxist view that foreign trade is pri-
marily a battle for markets prosecuted by colo-
nial powers and that foreign investment is
exploitation.
Instead, the figures demonstrate what is well
known to American business — liigher incomes
make for greater trade and investment. We
can trade more with our competitors because
markets are larger and more specialized and
because the exchange gives all of us the oppor-
tunity to concentrate somewhat more on pro-
ducing and selling the things we do best.
Moreover, we have been able to maintain, if
not improve, our competitive position in these
markets despite our higher wages. Wages in
our export industries average $3.50 per hour —
or much more than the average in our more
highly protected industries which do not sell
abroad. Essentially these figures show that the
most progressive of our industries at home are
also the most competitive abroad.
The same situation exists in other industrial
countries. That is why we must continue to
work together, and to support each other's ef-
forts, in reducing restrictions on trade. It al-
ways seems easier to avoid foreign competition
by resorting to one or another protective device.
But such actions encourage retaliation, close op-
portunities, raise costs, and, in the end, hurt us
all. Neither we nor other industrial countries
can afford to view our own markets as special
economic preserves removed from world market
competition.
Reducing Obstacles to Agricultural Trade
Similar considerations apply to agriculture.
I regret that we have as yet been unable to
agree with the Common Market on rules for
reductions in the obstacles to agricultural trade.
We recognize the special social and political
factors that apply to agriculture. These are
not confined, after all, to any one country or
region. But we also know that technological
advance is making agriculture an industry much
like any other industry. As this process con-
tinues, it will become increasingly costly to ig-
nore considerations of relative efficiency when
we approach trade in farm products.
So far as the United States is concerned, we
expect that the negotiations in both industry
and agriculture will go hand in hand. This
KOVEMBER 30, 1964
769
would conform to the ministerial resolutions
agreed to in May 1963 * and again in May 1964.'^
We have every hope that the eventual Kennedy
Eound outcome will include agreed measures
to allow for a substantial expansion of trade in
agricultural goods on conmiercial terms.
Private Enterprise and the Developing Nations
In discussing the trade negotiations, I have
necessarily had to focus my remarks on the role
of government. But clearly, in the field of for-
eign economic activities — ^both trade and in-
vestment— the results we achieve will depend
more on private action than on government
policy. The Government can set guidelines, im-
prove the ground rules, and provide informa-
tion, but, for the most part., private actions are
the instruments of change and progress in the
economic world.
One of our main objectives, therefore, is to
make your efforts — as businessmen engaged in
the field of foreign trade and investment — more
effective. In this connection I would like to
mention some aspects of our greatly expanded
program to assist businessmen in this field.
Abroad, the Department of State has made
commercial activities a responsibility of every
Foreign Service officer, with the ambassador
setting the pace. Approximately 150 officers
now spend all or most of their time on trade
promotion work. Some 350 other Staff mem-
bers of the Foreign Service are closely associ-
ated with this program.
Over the past year our missions abroad re-
ported on almost 13,000 business opportunities
relating to specific foreign companies. They
also made available to American business infor-
mation on approximately 4,000 foreign govern-
ment tenders or planned government construc-
tion projects. We now have five trade centers
operating in major foreign cities. And we have
greatly expanded our participation in impor-
tant trade fairs throughout the world.
A parallel effort has been made by the De-
partment of Commerce in the United States.
Tlirough its 42 field offices the Department of
Commerce has greatly expanded its program
* For text, see ihid., June 24, 1963, p. 995.
• For text, see iftttf., June 1, 1964, p. 879.
to interest American firms in the export trade
and to disseminate the business information col-
lected by our posts abroad. There are now
1,200 members participating in regional Ex-
port Expansion Councils in the United States.
Seminars have been organized around the coun-
try to give businessmen the best available infor-
mation on how to do business abroad.
These efforts — abroad and at home — clearly
have had results. In the past 3 years the num-
ber of our manufacturers engaged in exporting
abroad has increased by one-third — from 12,000
to 16,000 firms.
We also have a comprehensive program to as-
sist United States firms interested in investing
in the developing coimtries :
First, we have greatly expanded the invest-
ment guaranty arrangements. It is now possi-
ble for the United States Government to insure
private investors against a variety of political
risks in 61 friendly countries and areas. Dur-
ing this year alone the Agency for International
Development has written contracts under these
agreements covering more than $500 million of
new United States private investment — a rec-
ord sum for the program.
Second, a great deal has been done to put
more and better information at the disposal of
American firms interested in making invest-
ments in the developing countries. For ex-
ample, AID has recently established a business-
men's information center and has brought
together all available investment surveys for the
ready convenience of potential United States
investors.
Third, there is the unfinished business of the
tax-credit bill which President Johnson rec-
ommended and sent to Congress on March 19,
1964.® This measure could greatly increase
United States private investment in the devel-
oping countries. I have every hope it will re-
ceive the early attention it deserves in the
Congress.
But I would also add that much more remains
to be done. We can do our best to provide
American business with helpful information on
market prospects and investment opportunities,
and we can carry on the diplomatic negotiations
* For text of the President's foreign aid message,
see ibid., Apr. 6, 1964, p. 518.
770
DEPARTMENT OF STATE BUI.LET1N
necessary to open up markets. But only busi-
ness can do the job itself.
In trade, we will have to maintain a contin-
uing interest in foreign markets and the ability
to compete in these markets.
On the capital side, we must learn more effec-
tive ways of investing in the developing coun-
tries and how to manage these investments in
ways appropriate to our times. We must ex-
periment more with new forms of investment —
with joint ventures, licensing agreements, and a
variety of shared-equity arrangements. In one
way or another American private enterprise
must become more extensively and more heavily
engaged in the development business.
Broader Framework of Trade and Development
"We must view the Kennedy Eound in this
broader framework of trade and development —
and of relations not only among industrial
countries but also between industrial countries
as a group and developing countries as a group.
It is another step toward an international en-
vironment that would encourage and expand
the interchange of goods, capital, tecluiology,
and ideas among nations.
There will be hard bargaining in these trade
negotiations, and this is as it should be. Im-
portant interests are involved. The tecluiical
and economic issues are tough and complicated;
and the political problems are all too numerous.
The Kennedy Eound, like other great enter-
prises that are underway, could come to noth-
ing. But a Kennedy Round failure would be
more than a disappointment. It would signify
that the industrial nations were unready to
abandon the economic parochialism that was so
costly to us all in the past. It would be a con-
cession to narrow reaction in the international
commimity.
Equally important, a Kennedy Eound failure
would be a break of faith with the emerging
nations of the world. If we and other indus-
trial countries prove to be so shortsighted as to
restrict our markets from each other, we would
do more than hurt ourselves. We would also
lessen the export possibilities and hence the de-
velopment prospects of the poorer nations of the
world. In effect, our trade and aid policies
would be working at cross-purposes. This fact
describes but another dimension of our grow-
ing interdependence, and one that we cannot
afford to ignore.
I do not look for failure. John F. Kennedy
was fond of saying that there are tides in the
affairs of men. The tides today flow toward
partnership and freedom, in trade as ia political
life.
We must capture this spirit and ride with
these tides. We must center our efforts on tak-
ing advantage of the dynamic possibilities of
the future, not waste them on the vain attempt
to hoard the present. Free-world exports are
now growing by $10 billion a year. By moving
forward together, we can make sure that this
total will grow even more rapidly.
As President Johnson has said : ^
These negotiations are not the liind in which some
nations need lose because others gain. Their success
will be to the advantage of all. The opportunity, there-
fore, is here to build a partnership for progress among
the free-world industrial nations and then between
them and the developing nations.
This is the prospect that lies before us and
our friends today. It is a measure of our com-
mitment to a productive future. We have every
reason to be proud of this project. And we are
resolved to do all witliin our power to make it a
success.
Secretary Discusses Mainland China
in Television interview
Following is the transcript of an interview
with Secretary Rusk iy CBS news correspond-
ent Marvin KaTb telecast on November 11 as
part of a program entitled '■'■CBS Reports: The
United States and the Two Chinas^
Press release 487 dated November 11
Mr. Kalb: Mr. Secretary, France has indi-
cated her willingness to join Commxmist China
in a summit meeting on disarmament, and our
attittide, generally speaking, has been negative.
I wonder, sir, if you could envisage rohat cir-
cumstance would make it possible for v^ to
join China in disarmament talks?
' lUd., May 11, 1964, p. 749.
NOVEMBER 30, 1964
771
Secretary Rusk: Well, I think, in the first
place, Mr. Kalb, we need to see some progress
on the disarmament talks that already are in
course in Geneva. Incidentally, France has a
chair there which she has not occupied. We
suppose that if we make any significant progress
toward real disarmament, either in nuclear
forces or in conventional forces, mainland China
is free to pursue whatever arms program it
wishes to. But we have not made much prog-
ress in Geneva.
Secondly, in our bilateral contacts with Pei-
ping, we have over the years had some chance to
discuss this armament question. We've seen
very little interest on the part of Peiping in
disarmament, so that, in the broadest sense, any
worldwide disarmament program would neces-
sarily have to include mainland China. But in
terms of taking immediate steps that would
seem to open up prospects for serious talks,
leading to the reduction of arms involving
Peiping, I would think that this is not some-
thing that is on the immediate horizon.
Q. Mr. Secretary, a nurnber of our allies say
that if Communist China toere admitted to the
United Nations, then the fossibility exists that
she would he easier to deal with and, in a sense,
more apt to mollify her hard line. Do you agree
with this general view?
A. Well, I am very doubtful about that. In
the first place, the United Nations is not a re-
form school. It is an organization of those
states that are prepared to conamit themselves
to the principles of the charter. Peiping has
consistently annoimced to the world a militant
doctrine of another sort. They pursued it in
practice. Their harsh policy has caused great
problems within the Communist world itself,
quite apart from concerns, of course, created in
the free world. Let me point out that since
August 1955 we have had talks with Peiping.
President Eisenhower started them back then.
We had 122 talks through our ambassadors in
Geneva, or Prague, or Warsaw, and we are not
in a position of not knowing what Peiping
thinks; we are in the position that, with con-
tacts, we don't like what we find out. You see
in these — in these discussions they always start
with the proposition that, if there is to be any
improvement in relations, we must turn over
11 million free people on Formosa to Peiping.
And this we're not going to do. And when that
becomes clear, these talks produce no forward
motion. So I would think that this is a ques-
tion of Peiping pohcy — whether they are pre-
pared to live at peace witli their neighbors and
with the rest of the world. And if they're not
prepared to do so, I think we should not en-
courage them by rewarding them for a policy
which is so contrary to the prospects of peace.
I must say that I haven't seen much blue
sky ahead in the attitudes of Peiping. They
have not been prepared to leave their neighbors
alone. They did attack India, they are putting
pressures on their neighbors in Southeast Asia,
they do continue to refuse to renounce force in
the Formosa Strait. They are engaged in try-
ing to subvert other nations through the usual
teclmiques of Communist penetration.
Q. Mr. Secretary, on an issue of vital interest
apparently on both sides, that is, the interest
of Viet-IVam. Do you feel that the United
States and Communist China are on a collision
course?
A. This turns entirely on PeipLng's decision
on that crucial question, about whether they
are prepared to leave their neighbors alone.
We've made it very clear that we are not going
to pull away and leave Southeast Asia to be
overrun by these people from the north. There-
fore, the answer to your question lies to Pei-
ping. We feel that they must come to the de-
cision to leave these people alone in Southeast
Asia. Now, if they don't, then there is trouble
ahead. If they will, then there are not any
problems there that can't be solved by the ordi-
nary processes of discussion with the nations
of Southeast Asia.
We have invested 150 years of affection and
interest and effort with the Chinese people.
And the fact that they are living ui this kind
of regime is a matter of deep disapix)intment
to us. These relationships with the Peiping
government have nothing to do with our basic
attitude toward the Chinese people. And of
course, we all look forward to the day when
those underlying relationships can be restored
and we can express once again that century-
long feeling that we have about the Cliinese
people.
772
DEPARTMENT OF STATE BULLETIN
Germany and the Atlantic Partnership
hy Under Secretary Ball ^
During the course of this meetmg -we have
had an opportunity to discuss with great frank-
ness the relations between the United States
and the Federal Republic of Germany. Tliis
discussion has served to illuminate the depth
and variety of our relations.
The United States and Germany maintain re-
lations on several levels. There are the bi-
lateral relations between the United States and
the Federal Republic as two great nations.
There are the relations of the United States to
the Federal Republic as one of the leading
members of the European Commimity engaged
with its neighbors in building a united Europe.
Tliere are the relations between our two coim-
tries as allies and as members of an Atlantic
partnership dedicated not only to advancing
the interests of its members but of combinine
their common strength for the fulfillment of
great common responsibilities around the world.
Nothing in these three sets of relationships
is incompatible.
I need say little today about the bilateral
relations between our two nations. These rela-
tions are and will be firm and constant. We
Americans intend to make every effort to bring
nearer the reunification of Germany through
self-determination.
AVe are dedicated to carrying out our commit-
ments with respect to Berlin, including the
maintenance of the Western position in Berlin
and the continued freedom, viability, and right
of free access to this brave city.
' Address made at the fourth German-American Con-
ference at Berlin, Germany, on Nov. 15 (press release
491 dated Nov. 16).
We have from the beginning supported the
creation of a united Europe. We continue to
believe that through unity the peoples of Europe
can best help to assure the peace and progress
of the world. In the years since the war Euro-
peans have made an extraordinary advance
toward unity. Sometimes we take that progress
for granted. Yet there is little doubt that the
establishment of the European Communities
has been one of the most constructive achieve-
ments of the 20th century.
"Wliile we shall continue to give every sup-
port and encouragement to progress toward
unity in Europe, the ways and means of achiev-
ing that objective are, and must be, peculiarly
a matter for Europeans to decide. We are fol-
lowing with great interest the initiatives that
the nations of the Community are now consider-
ing.
"The Defense of the Western World Is Indivisible"
The United States conmiitment to the West-
ern alliance and Atlantic partnership is firm and
clear. Time and time again we have demon-
strated our fidelity to the purpose of the
alliance — not merely by words but by a con-
tinuing engagement on a vast scale. We are
maintaining in Europe today a force of almost
400,000 fully equipped men. And beyond this
force is the enormous power of our strategic
nuclear deterrent.
Make no mistake. Our strategic nuclear
strength is committed as much to the defense
of our European allies as to our own defense
because the two are inseparable. The integrity
of that commitment cannot be challenged by
KOVEMBER 30, 1964
773
anyone willing to look squarely at the facts.
We have not stationed our troops in Europe
to let them be overrun by a hostile power. We
have not built our massive strategic nuclear
force and targeted a considerable part of it
against weapons whose only target is Europe
with any thought that the force would not be
used if Europe were attacked.
The effective engagement of that force is
validated not only by most solemn treaty com-
mitments but by the presence of our men and
our flag on the frontiers of Western Europe and
by our performance shoulder to shoulder with
our allies in the crises of the past generations.
We have borne the awesome responsibility
of being a nuclear power for 20 years. For a
substantial period we were the only nuclear
power in the world. We have studied and
pondered the uses and deployment and meaning
of nuclear weapons in great depth.
This intensive experience has brought us to
the Inevitable conclusion — as it must bring any
nation that over a long period of time faces the
responsibilities that the possession of massive
nuclear power imposes — that the defense of the
Western World is indivisible. This simple but
profound truth binds our destinies irrevocably
together.
Multilateral Nuclear Force
Western Europe is safe today behind the
deterrent forces of the Atlantic alliance. But
we recognize that other nations may wish to
participate in the planning and responsibility
for their own nuclear defense without the risks
of creating additional national nuclear forces.
For that reason the United States stands ready
now to join with other members of the alliance,
nuclear and nonnuclear alike, in a combined
effort to create and manage a multilateral nu-
clear force.
This multilateral force would, in our judg-
ment, further strengthen the ties that bind the
nations of the Atlantic partnership. It could
give a new impetus to European unity.
Finally, it would provide the medium-range
ballistic missiles that NATO military authori-
ties have said are needed.
My Government regards this force not as a
static concept but as one further step toward the
full realization of our developing relationship —
an ever-growing partnership between the na-
tions of North America and the nations of West-
em Europe moving toward unity. And I refer
to all the nations of Western Europe.
This total Atlantic partnership is made neces-
sary not merely by the imperatives of our own
mutual defense or even by the need to concert
our economic policies in an interdependent
world. It is required by the weight and cliarac-
ter of the responsibilities that flow from the
possession of wealth and power.
Today the nations of the Atlantic partnership
possess 90 percent of the industrial capacity of
the free world. If we are ever fully to meet our
common obligations which that wealth imposes,
we must combine our resources of men, material,
and ideas for our common purposes.
That is why my country, the United States,
will work unceasingly to strengthen the bonds of
our alliance and to perfect ways to concert
policy and get on with our common tasks.
I have found this same spirit in the confer-
ence we are now concluding.
This is a goal which, I can assure you, Presi-
dent Johnson is determined to attain. He said
quite recently:^ ". . . our Atlantic partnership
is coming to a new and to a much greater time."
He spoke of its "remarkable achievements" and
"unlimited promise." That promise can be ful-
filled by creative actions that seek to extend the
principle of partnership.
This is a task for all of us.
^ For text of an address made by President Johnson
at Johns Hopkins University on Oct. 1, see White
House press release dated Oct. 1.
774
DEPARTMENT OF STATE BULLETIN
Social Justice in tiie United States and in the Hemisphere
hy Thomas C. Mann
Assistant Secretary for Inter-American Affairs ^
It is a pleasure to speak before this group,
brought together by an organization which,
since it was founded in 1843, has enjoyed such
great respect in the United States and, more
recently, around the world.
The contribution of the American Jewish
community to our society has been impressive
in scope and depth. It has been to this coim-
try's great advantage that the freedoms we en-
joy have made possible the diversity which has
permitted all groups of whatever religion or
origin to contribute to our national progress.
U.S. Experience in Social Justice
Under the Charter of Punta del Este,= this
hemisphere is allied in "a coimnon effort to
bring our people accelerated economic progress
and broader social justice within the frame-
work of personal dignity and political liberty."
The commitment of the United States to the
goals of the Alliance for Progress is based on a
profound appreciation by the people of this
country for the practical benefits of economic,
social, and political development and the his-
tory of our progress toward these goals.
In 1776 about 3 million Americans, divided
into 13 Colonies, not only began a war for polit-
ical independence but sought to create a new
kind of economic and social democracy out of
the old order. Because nine-tenths of the peo-
ple were engaged in agriculture and only one-
tenth in fishing, commerce, and manufacturing,
' Address made before the International Council of
B'nai B'rith at Washington, D.C., on Nov. 4 (press
release 478). Mr. Mann is also U.S. Coordinator for
the Alliance for Progress.
" For text, see Bulletin of Sept. 11, 1961, p. 463.
it is natural that their first reforms related to
the land.
Land tenure patterns were changed by sweep-
ing away the legal structure which had been
created to keep lands in the same family genera-
tion after generation. These legal changes in-
cluded the abolition of primogeniture — laws
which passed land on death to the oldest son;
limitations on the entailment of land — laws
which restricted tlie right of the eldest to sell
or encumber the land he inherited; and laws
which impeded the acquisition of land by
others.
At the beginning of our Eevolutionary War
a large part of the land was owned by the Crown
and many large estates were in the hands of an
aristocracy — the Tories — which remained loyal
to the Crown. Most of the Tories left with the
English armies, leaving their lands behind.
The King's land passed to the new sovereign
states. Thus our land was, from the very be-
ginning of our mdependence, available to the
people for settlement.
As has happened in other wars, excesses were
committed against the "enemy." As Jameson
points out in his lectures The American Revolu-
tion Considered as a Social Movement : ^
The legislatures were so hot against the Tories and
so eager in the pursuit of their spoils that they quite
overstepped constitutional bounds in their enactments
against them. Among the lawyers there grew up the
idea, virtually a new idea, that courts might set aside
laws if they conflicted with the constitution of the
State.
'John Franklin Jameson, The American Revolution
Considered as a Social Movement, Boston, Beacon
Press, 1956.
NOVEMBER 30, 1964
775
In order to prevent a recurrence of these ex-
cesses— in order that we truly could have a rule
of law in which the minority and the weak, even
the "enemy," would be guaranteed equal
justice — specific safeguards against excesses by
the Congress were provided in our Constitution.
These included the strengthening of the author-
ity of the judiciary to declare laws of the Con-
gress unconstitutional and specific provision
against the confiscation of private property.
We have adhered to this rule ever since as basic
to social and economic progress and, indeed, to
political liberty.
After the Revolutionary War we continued to
make land available to people who wanted to
possess it, to occupy it, and to make it produce.
These attitudes were especially important in the
westward movement of our people. The doc-
trines of prescription and adverse possession in
the common law facilitated these ideas as did
statutory laws such as the homestead acts. At
the same time, land taxes, and later income,
gift, estate, and inheritance taxes, discouraged
the ownersliip of unused and unproductive land.
But our agricultural tradition does not stop
with land tenure. It has sought to help the
farmer in a hundred ways to make his land
produce as the only way of increasing his in-
dividual income.
The war of 1776 also produced great changes
of a social character in the status of our peo-
ple. The privileges of the Old World aristoc-
racy were swept away. Eventually the right
of suffrage was extended to all the people.
Church was separated from state, and freedom
of religion was established. The rights of
minorities, free speech, and assembly were spe-
cifically provided for. A course was set which
led to the abolition of slavery and eventually
to legislation on civil rights. A system of free
public education was made available to all and
private schools and universities encouraged.
The founding and growth of free trade-union
movements were made possible. By these and
other measures great social change was
achieved. As Jameson points out:
Thus in many ways the successful struggle for the
Independence of the United States affected the char-
acter of American society by altering the status of
persons. The freeing of the community led not un-
naturally to the freeing of the individual ; the raising
of colonies to the position of Independent states brought
with it the promotion of many a man to a higher order
in the scale of privilege or consequence. So far at any
rate as this aspect of life in America is concerned, it
is vain to think of the Revolution as solely a series of
political or military events.
Our social progress did not end with our Rev-
olutionary War. It is for us a continuing proc-
ess, a goal to be achieved. We still have much
to do. But we have made good progress. Al-
low me to refer to only a few advances related
to social progress.
Today there are some 150,000 schools and
2,100 colleges and universities in operation with
about 53 million students — one-fourtli of our
population — enrolled. The cost to our economy
is nearly $35 billion annually. This vast system
has been developed with the firm conviction
that neither our economic growth nor our dem-
ocratic institutions can be sustained without an
educated, informed, and responsible population.
The system is also based on our conviction that
every child should be given an equal opportu-
nity to obtain the education wliich will permit
him to reach as high as liis talents and his ef-
fort will take him.
In the field of public health our efforts have
reduced infant mortality dramatically, and av-
erage life expectancy at birth in the United
States today is over 70 years. A major part of
our public health programs has been the pro-
vision of potable water and sewage disposal to
nearly every one of ovu" citizens.
The free trade-union movement is important.
In the words of Senator [Robert F.] Wagner,
who sponsored the National Labor Relations
Act of 1935, industry and labor have developed
a partnership in the sokition of national prob-
lems. The key to this partnership has been the
collective bargaining process, whicli has re-
mained independent of Government control al-
though the Government, by the Wagner Act
and subsequent legislation, has acted as a ref-
eree interested in the national welfare in both
its social and economic aspects. American un-
ions continue to be among the strongest advo-
cates of the American economic and social
system precisely because it has been the system
which produces best and gives the worker the
opportimity to increase liis standard of living
776
DEPARTMENT OF STATE BULLETIN
by sharing in increased productivity.
Credit has also played a vital role in our
social development. In 1776 there was not a
single bank in the Thirteen Colonies. Today
there are nearly 14,000 banks holding deposits
of over $309 billion. This credit system, be-
cause it is competitive, has placed within the
reach of the vast majority of Americans an op-
portunity to finance, at reasonable terms, a
crop, a house, a small business, and many other
things which would otherwise be impossible to
acquire.
There are many other ingredients in the ef-
forts of the United States to achieve social
justice. Our social security system, our farm
programs, the encouragement of cooperatives,
unemployment insurance, and Government in-
surance of bank deposits are other advances.
All of those ingredients are costly. We
would have none of them unless our system
first produced wealth in surplus of basic needs
and second but simultaneously mobilized this
surplus into the revenues necessary to finance
social development. Our system of competitive
private enterprise has produced sufficient
wealth, and our tax system has served to mo-
bilize revenue equitably and effectively. The
progressive income tax wliich produces the
largest part of our Government revenue has
also played an essential role in our efforts to
achieve social justice. Tlirough tliis tax sys-
tem those who have benefited the most from
their society make the largest contribution to
its maintenance and improvement.
Commitments in Latin America
From this broad experience in social justice,
the United States has formulated its policies
toward Latin America. Following World War
II this country embarked on a program of as-
sistance to other nations which is imique in
the history of the world. In President Tru-
man's words : ^ "Only by helping the least for-
tunate of its members to help themselves can
the human family achieve the decent, satisfy-
ing life that is the right of all people."
In the famous Point 4 of his 1949 inaugural
address, he said :
Our aim should be to help the free peoples of the
world, through their own efforts, to produce more food,
more clothing, more materials for housing, and more
mechanical power to lighten their burdens. . . .
Greater production is the key to prosperity and
peace.
And in drawing from our history he said :
Communism maintains that social wrongs can be
corrected only by violence.
Democracy has proved that social justice can be
achieved through peaceful change.
The social content of U.S. policy toward
Latin America was again emphasized by Pres-
ident Eisenhower in liis Newport declaration on
July 11, 1960,= in wliich he said :
. . . widespread social progress and economic growth
benefiting all the people and achieved within a frame-
work of free institutions are the imperatives of our
time. . . .
I have in mind the opening of new areas of arable
land for settlement and productive use. . . . better
land utilization, within a system which provides oppor-
tunities for free, self-reliant men to own land, without
violating the rights of others. . . . housing with em-
phasis, where appropriate, on Individual ownership of
small homes. And I have in mind other essential mini-
mums for decent living in both urban and rural
environments.
In September of 1960 the United States joined
with the Latin American nations in sifmine the
Act of Bogota,^ in which social objectives were
made a part of a multilateral commitment. The
Act of Bogota recognized that :
. . . the preservation and strengthening of free and
democratic institutions in the American republics re-
quires the acceleration of social and economic progress
in Latin America adequate to meet the legitimate
aspirations of the peoples of the Americas for a better
life and to provide them the fullest opportunity to
improve their status. . . .
The act called for the improvement of the condi-
tions of rural living and land use, housing, edu-
cation, public health, and the mobilization of
domestic resources.
In liis March 1961 speech about the Alliance
for Progress,' President Kennedy said: "The
revolutions which gave us birth ignited, in the
words of Thomas Paine, 'a spark never to be
extinguished.' " He reminded us that :
' For text of President Truman's 1949 inaugural ad-
dress, see BuixETiN of Jan. 30, 1949, p. 123.
"/fiiU, Aug. 1,1960, p. 166.
" For text, see Hid., Oct. 3, 1960, p. 537.
' Ibid., Apr. 3, 1961, p. 471.
NOVEMBER 30, 1964
777
. . . the revolution which began in Philadelphia in
1776 and in Caracas in 1811— is not yet finished. Our
Hemisphere's mission is not yet completed. For our
unfulfilled task is to demonstrate to the entire world
that man's unsatisfied aspiration for economic progress
and social justice can best be achieved by free men
working within a framework of democratic institutions.
Ingredients of Social Progress
The social history, the social traditions, and
the social achievements of tlie United States as
well as the record of the United States in propa-
gating them throughout the world are not new
and novel subjects. They are not the patri-
mony of any small group. They belong to all
citizens of our land who honestly search for
ways to make our ideals a reality throughout
the world.
Wliat is the attitude of our foreign policy
toward social reform in Latin America ? It is
very simple. It reflects our own national experi-
ences and our own national ideals. It seeks
greater dignity, wider opportunity, and a better
life for every man in the hemisphere, not just in
theory but in practice.
The real issue — indeed the only issue — is how
the hemisphere can best achieve these social
objectives.
There is a great temptation to look for quick
answers. In the discussion of this issue, some
have said that it is essentially a political prob-
lem, to be solved by political means. Others
say that there should be a greater concentration
on social projects and programs. And still
others suggest that economic development will,
by itself, bring social justice.
I would like to suggest that political, social,
and economic progress are in fact of one piece —
that they are indivisible.
A growing and dynamic economy is an indis-
pensable ingredient of social progress. With-
out an adequate economic base, countries will be
unable to mobilize resources in amounts needed
to finance education, health, social security, land
reform, housing, and other types of social proj-
ects and programs. Only an eflBcient economy
can aiford to pay its workers adequate wages.
Only an adequate rate of economic growth can
provide the number of new jobs and the addi-
tional food required by growing populations.
Social development is, in turn, related to eco-
nomic growth. If people are denied education
there will be a lack of skills needed to run a
modern industry and to provide management
for government and business. Without educa-
tion no research can be conducted and no tech-
nological advances made. Education is essen-
tial to increased agi-icultural production.
Without health the productivity of people de-
clines. Without a fair distribution of the na-
tional income there is no incentive for people to
make the effort which progress requires. With-
out social justice the purchasing power in the
national market will be insufficient to sustain
eificient national industries.
The political system is also related to social
progress. Without a system of laws, impar-
tially administered justice, and protection of the
constitutional rights of the citizens, there will
be insufficient confidence on the part of the
people to stimulate mvestment in the economy.
Nor can the individual have the security and the
dignity to which he is entitled. Indeed social
justice and economic democracy are intimately
related to political democracy.
The social problem is not simple. It is com-
plex. We need better understanding of the im-
pediments to progress and a greater will to sac-
rifice short-term political advantages and
personal gain so that solid and enduring
foundations of progress in freedom can be laid.
As President Johnson has said : ' "That is going
to take leadership, leadership that is dedicated
to economic progress without uneconomic privi-
lege, to social change which enhances social
justice, to political reform which widens human
freedom."
' Ibid., May 11, 1964, p. 726.
778
DEPARTMENT OF STATE BULLHTIN
The International Atom
hy Glenn T. Seaborg
Chairman, U.S. Atomic Energy Commission^
Not many weeks ago I returned from a Euro-
pean trip which included attendance at three
meetings — one in Geneva, another in Brussels,
and the third in Vienna. In Geneva, as chair-
man of the United States delegation to the
Tliird International Conference on the Peace-
ful Uses of Atomic Energy, I met with dele-
gates from about 75 nations to discuss pi"ogress
in the peaceful applications of nuclear energy
and our outlook for the future.^ At Brussels
I spoke before a group of European industrial-
ists in the nuclear field on what the United
States is now able to do over the long haul in
furnishing enriched uranium fuel to foreign
purchasers of our nuclear power reactors. U.S.
reactors have recently become economically com-
petitive with conventional plants for the pro-
duction of electricity in areas where the price
of the fossil fuels — coal, oil, and gas — is moder-
ate to high. And in Vienna, as head of the
United States delegation to the Eighth General
Conference of the International Atomic Energy
Agency, I participated with other delegates in
reviewing that Agency's progress over the past
year and in planning its .'uture activities.^ This
fall of 1964, then, has been n, busy time for the
peaceful international atom and, I believe, a
most auspicious period in the optimism it has
revealed among the nations engaged in peaceful
nuclear activities.
^ Address made at a Town Hall meeting at Los
Angeles, Calif., on Oct. 27.
" For a statement made by Dr. Seaborg at Geneva on
Aug. 29, see Bulletin of Sept. 21, 1964, p. 408.
' For a statement made by Dr. Seaborg at Vienna on
Sept. 15, see iUO.., Oct. 12, 1964, p. 519.
A very pleasant interlude during the Geneva
conference came when I had the opportunity
of taking a number of the delegates for a short
cruise on our nuclear ship Savannah., which
was at that time in Swedish waters. I was
proud to report to the conference that the Sa-
vannah had brilliantly demonstrated the poten-
tialities of nuclear propulsion for merchant
vessels as she completed her second European
voyage.
Developments in Nuclear Energy Since 1958
At Geneva we were excited by a number of
developments in the nuclear energy field since
the last conference in 1958. Small, compact
radioisotope-fueled sources of electric power —
about the size of the proverbial breadbox — had
proved their worth both in this country and the
U.S.S.K. The United States is even now using
these Snap (Systems for Nuclear Auxiliary
Power) devices in our space satellites to power
communications equipment. They have the ad-
vantages over solar cells of much longer life,
much less vulnerability to the radiation to be
found in space, and the ability to operate in the
absence of sunlight. We also have a number of
them operating unattended and reliably for
long periods of time in remote weather stations
and in navigation buoys and lighthouses. One
of these devices powering a weather station lo-
cated on an iminhabited island 700 miles from
the North Pole has, in fact, recently passed its
third anniversary.
We were all pleased by the further rapid
developments in the applications of radioiso-
topes in medicine, industry, and agriculture.
NOVEMBER 3 0, 19G-1
779
Radioisotopes, from the very beginning of our
program of peaceful uses of the atom, have
proved their value in a multitude of applica-
tions. Most recently there has been substantial
progress in the use of ionizing radiation for
processing organic chemicals, plastics, and other
materials, for the sterilization of medical sup-
plies, and for the preservation of foods. A
related development is the widespread use of
neutron activation analysis for measuring trace
elements. You may recall that this was one of
the methods employed in an attempt to estab-
lish Oswald's connection vsdth weapons related
to the assassination of President Kennedy.
Though the results were not conclusive in this
instance, activation analysis has enabled inves-
tigators in other cases to locate the source of
smuggled narcotics and to reveal techniques
used by the old masters in their paintings.
I reported in my official summary of the
Geneva conference that much interest has been
aroused here and abroad in the U.S. Plowshare
program, in which nuclear explosives are to be
used for excavation, mining, and the recovery
of gas and oil. Much work remains to be done
before we are ready to undertake useful proj-
ects ; however, experimental results to date give
evidence that large-scale civil engineering proj-
ects, such as cutting passes through moimtains
and digging canals, can be accomplished more
economically with nuclear explosives than by
conventional methods. A number of delegates
at Geneva, including one or two from the Soviet
bloc, suggested the need for international
collaboration in this field.
Here in Califonaia, where water is getting to
be something of a problem, I think you will be
encouraged to know that there is a growing
international interest in employing the heat
from nuclear reactors for desalting sea water.
Such projects, either solely for desalination or
for desalination combined with the production
of electric power, are under study in a number
of countries outside of our own — for example,
Mexico, Israel, and the Soviet Union. You
may be aware that we are working with the
State of California toward construction of a
.525,000 electrical kilowatt reactor plant to sup-
ply power to the Tehachapi pumping station,
which will raise the waters of northern Cali-
fornia over the Tehachapi Mountains and make
them available to the Los Angeles area. If this
project is located in a coastal area, it may also
be designed to furnish steam for a 15 million
gallon per day desalination plant. In addi-
tion, the AEC is cooperating with the Metro-
politan Water District of Southern California
in a study to determine tlie feasibility of a dual-
purpose nuclear plant in the Los Angeles area
for the conversion of sea water and the produc-
tion of power.
Prospects for Growth of Nuclear Power
All these developments were enthusiastically
discussed, but by far the most intense focus for
our optimism at Geneva, Brussels, and Vienna
was on the current prospects for the rapid
growth of nuclear power. What are the facts
accounting for this state of enthusiasm ? First,
I think, is the fact that in this country we have
had excellent operating experience with a dozen
or more prototype and demonstration nuclear
power plants of several different types and in
sizes up to more than 200,000 kilowatts. Sec-
ondly, our reactor manufacturers have provided
us with substantial evidence — based on their
willingness to quote guaranteed prices on water-
cooled plants in sizes up to 1 million kilowatts —
that nuclear power will be able to compete for
an appreciable share of the new electric capacity
to be added to the United States utility network
in the decade or so ahead.
Taking a further look at this picture, our ex-
perts in the U.S. Atomic Energy Commission
have revised their estimates of nuclear power
plant constniction made not quite 2 years ago,
and they now expect about 70 million kilowatts
of nuclear capacity to be in operation in the
United States by 1980 rather than the 40 mil-
lion kilowatts previously estimated. Finally,
there is the significant fact that recent changes
in the U.S. atomic energy statute permit, and in
due course require, the private ownership of the
basic fuel materials used and produced in nu-
clear power plants. This legislative change es-
sentially completes the transition that began a
decade ago when the first steps were taken to
convert what was then an exclusively Govern-
ment nuclear power endeavor into an independ-
ent nuclear power industrj'.
780
DEPARTMENT OP STATE BULLETIN
To even further enlarge this perspective, let
me say that in 1955 there were only 5,000 kilo-
watts, that is, 5 megawatts, of installed nuclear
capacity throughout the world. By 1958 the
figure had risen to 158 megawatts. Today
there are about 5,000 megawatts — or about 1,000
times more than 10 years ago — and we antic-
ipate that by 1970 the total world nuclear power
capacity will reach approximately 25,000
megawatts.
For those of us who have worked hard to
reach this point, the situation spells good news.
I can well remember a 1947 report made to the
Commission by the General Advisory Commit-
tee (of which I was then a member), a report
predicting that economical nuclear power would
be decades in coming — if indeed it arrived at
all. That was how hard the problem looked
to us then. For many of us the subsequent
progress has been almost startling.
IAEA Safeguards System
We have reason to be elated, and yet at the
same time for many people — both scientists and
laymen — there are serious matters to be con-
sidered as we welcome this recently accelerated
growth of nuclear power. We want to be as-
sured that an international development of this
kind will accomplish the desirable end of help-
ing to provide the substantial amounts of elec-
trical power needed for an expanding world
economy without, at the same time, endanger-
ing world peace through the proliferation of
nuclear weapons. This is certainly a legitimate
concern of responsible people everywhere.
An organization that is already playing a
very significant role in guaranteeing that the
peaceful international atom will remain peace-
ful is an agency many people hardly know
exists. This organization is the International
Atomic Energy Agency, with its headquarters
in Vienna, Austria. The IAEA, which had
its start in late 1956 and early 1957, has a far-
ranging program. It serves as a means of es-
tablishing worldwide standards in the nuclear
field. It provides a forum for international
discussion of mutual problems in nuclear en-
ergy. It provides advice and assistance in nu-
clear energy to many of the developing coim-
tries. But most important, the IAEA oversees
and administers an international safeguao-ds
system. This international safeguards system
helps keep the peaceful atom peaceful through
an international system of control and inspec-
tion designed to assure that the nuclear mate-
rials, facilities, and technology furnished for
peaceful uses are not diverted to military appli-
cations. Eight now, today, the IAEA safe-
guards inspection system is in operation. It is
the first program of international inspection in
the arms limitation field to be put into actual
operation, and it is operating with the full
blessing and encouragement of both the United
States and the U.S.S.R. Except for the lim-
ited nuclear test ban treaty, of which I will
have more to say later, there are few more
important steps being taken to preserve inter-
national peace and security.
Let me explore some of the reasons for this
broad statement, and to do so I will have to
tell you a little about the technical matters
involved here. The fuel burned in reactors —
large and small — is, of course, fissionable mate-
rial. In most reactors operating today this
fissionable material is either natural uranium
or enriched uranium. Natural uranium —
uranium found ui naturally occurring ores
throughout the world — contains about 0.7 per-
cent of the fissionable isotope uranium 235,
with the rest being the nonfissionable isotope
uranivmi 238.
Enriched uranium, on the other hand, has
been physically altered so that it contains a
greater proportion of the fissionable isotope
uranium 235 than is found in naturally occur-
ring uranium. In operating a nuclear reactor
the isotope uranium 235 undergoes nuclear fis-
sion and produces large quantities of heat which
can be converted into useful electrical power.
Some of the neutrons produced in the fission
reaction also interact with the nonfissionable
uranium 238 contained in the fuel and convert,
this plentiful nonfissionable isotope into the
fissionable synthetic element plutoniimi. Tliis
reactor-produced plutonimn may then be ex-
tracted and purified by rather involved chemi-
cal processes and used either as additional fuel
for operating a reactor or as the essential in-
gi'edient of certain types of nuclear weapons.
The first nuclear device ever exploded — at
NOVEMBER 30, 1964
754-812—64 3
781
Alamogordo, New Mexico, on July 16, 1945 —
was made of such reactor-produced plutonium.
Generally speaking, the greater the power level
of the reactor, the more plutonium it produces.
From this it follows that as the world produc-
tion of nuclear power increases so also does
the production of plutonium increase and so
also does tlie need for safeguards become in-
creasingly important for world peace.
How Nuclear Safeguards Came About
The story of liow nuclear safeguards came
about is the story of careful foresight in the
establishment of the U.S. atoms-for-peace pro-
gram and of the continuing conscientious ef-
forts of many scientists, administrators, and
diplomats, both in this country and abroad,
over a period of several yeare. The atoms-for-
peace program began with the fundamental
thesis that the plentiful benefits of the peaceful
atom must be shared with all mankind if we
are to live up to our belief in an open commu-
nity of nations free from the specter of poverty.
The successful launching of the atoms-for-peace
program was dependent upon reasonable guar-
antees that the nuclear teclinology and nu-
clear material to be shared with other countries
would not be diverted toward military purposes.
We had to be sure that neither the uraniimi
furnished as reactor fuel nor the plutonium
produced by the operation of reactors would
be a threat to international security. We set
out at the very beginning to develop and put
into effect tlie safeguards that we knew would
be required as nuclear energy began to achieve
its inevitable status in world teclmology.
Perhaps I should say a word about what I
mean by the inevitable status of nuclear power
in the world. There were many who felt in
those early days, as some feel today, that we
could somehow hold back the hands of time —
arrest scientific progress — and not cooperate
with other countries in providing this nuclear
technology and materials for peaceful purposes.
Science cannot for long be kept imder lock and
key. We knew that other coimtries could inde-
pendently achieve a nuclear capability. We
also laiew that many countries of the world liad
their own supplies of natural uranium and, per-
haps more importantly, their own scientists.
We also considered that if we did not cooperate
in sharing our peaceful nuclear teclmology and
nuclear materials, there would be other coun-
tries— not all of which necessarily would agree
to the need for safeguards — other countries
which miglit be willing to provide nuclear mate-
rials and teclmology without a firm assurance
as to their eventual peaceful end use. We also
recognized that a multilateral control system
would be more efficient and objective than bilat-
eral safeguards and that it would contribute in
the long run to the evolution of a broader sys-
tem of arms limitation or disarmament. It was
these simple facts that led us, at an early date,
to see the urgent need for a system of interna-
tional safeguards and for the United States to
take a major role in its evolution.
U.S. Interim Bilateral Arrangements
The situation, however, had many complexi-
ties. Some time had to be allowed for the estab-
lishment of an international agency — as a mat-
ter of fact, nearly 5 years passed before the
IAEA became a reality — and more time yet
would pass before an international safeguards
system could be developed, voted on, and put
into operation. In the meantime we felt the
urgency of going ahead with other phases of
the atoms-for-peace program. It was therefore
decided to proceed with a bilateral nation-to-
nation progi-am before tlie broader international
program could come of age. Under tliis bilat-
eral program, the United States assisted other
nations with such activities as training and
research, the furnishing of laboratory instru-
ments and equipment, and the building of re-
search reactors and power reactors. This bilat-
eral program had to proceed without undue
delay and yet with the assurance that the nu-
clear materials, equipment, and teclmology pro-
vided to other countries would be used only for
peaceful purposes. The answer to this immedi-
ate problem was to incorporate into tlie bilateral
agreements implementing this program provi-
sions for safeguarding the assistance rendered
other nations, thus setting tlie stage for an inter-
national system of safeguards. Such provisions
were included in our bilateral agreements, be-
ginning with our first agreement for coopera-
tion in tlie civil uses of nuclear energy, signed
782
DEPARTMENT OF STATE BULLETIN
with Turkey in June 1955,^ and on through the
agreements concluded with 39 other coimtries
since that time.
Under the terms of tliese agreements the
United States has transferred to its bilateral
partners in the past 9 years about 200,000 kilo-
grams of natural uranium, another 150,000 kilo-
grams or so of enriched uranium contaming
5,500 kilograms of uranimn 235, some 20 kilo-
grams of plutonium, and more than 600 tons of
heavy water. (This latter is water just like or-
dinary tap water, except that it contains the
rare, heavy isotope of hydrogen, called deute-
rium, instead of the lighter, much more abun-
dant, ordinary hydrogen isotope — thereby
making it especially useful for nuclear work.)
The facilities utilizing this material range from
small research laboratories containing nothing
more than simple neutron sources incorporating
plutonimn as an ingredient, through nuclear re-
search centers containing research and test
reactors, to large power reactors. Applicable
to such transfers are United States rights to
receive regular reports on the use being made of
the material transferred and to conduct periodic
on-site inspections to assure that the material is
indeed being used for peaceful purposes. Up to
the present time the United States has followed
up on these safeguards provisions by conducting
109 inspections in 26 countries in Europe, South
America, and the Middle and Far East.
Advantages of International Safeguards
As I discussed earlier, these bilateral safe-
guards arrangements had to be considered as an
interim solution and at the same time as an
entree to an international system. We could
not, and did not, forget that an international
system of safeguards would be needed and
needed ever more urgently as more and more
nations embarked on their own nuclear power
programs. With more and larger reactors being
built, the potential for plutonium production —
and the possibility of weapons proliferation —
would increase correspondingly.
The advantages to having widely accepted
international safeguards with uniform stand-
ards and methods of inspection are clear. All
' For text, see iiid., July 11, 1955, p. 55.
nations supplying nuclear teclmology and ma-
terials must apply consistent and credible safe-
guards if we are indeed to j^revent the prolifer-
ation of nuclear weapons. Neither the United
States nor any other nation alone can provide
assurance against proliferation. Fortimately,
we have been joined in the IAEA safeguards
effort by the large majority of IAEA member
states, including both the advanced nations,
such as the Soviet Union, the United Kingdom,
and Canada, and the recipients of our nuclear
assistance. To achieve workable safeguards, it
is apparent also that the supplier nations hav-
ing large reserves of natural uranium must lend
their support to safeguards, and such support
has been evident to a large degree in their inter-
national transactions in these nuclear materials.
As I mentioned earlier, the growth of such
a system was necessarily gradual, and yet the
development of the International Atomic En-
ergy Agency's safeguards system has kept pace
with the trend of nuclear activities. As a first
step, reactors smaller than 100 thermal mega-
watts— mostly research, training, and test reac-
tors— were covered by the Agency's system.
More recently, the system has been broadened
and extended to cover reactors larger than 100
thermal megawatts so that now, as we stand on
the threshold of large-scale nuclear power pro-
grams in various areas of the world, we do have
in the IAEA safeguards system a program
which, as it becomes widely accepted and ap-
plied, will go far toward assuring that nuclear
materials and facilities will be put to peaceful
rather than military use. It is important that
the future growth of the international atom be
paralleled by the future growth and application
of an effective safeguards system, for, as Dr.
Sigvard Eklund, Director General of the IAEA,
has said, it is important to have accepted an
"international safeguards system now when
the number of power reactors is still small."
The logical culmination of the interim bi-
lateral safeguards program is to transfer to the
International Atomic Energy Agency the re-
sponsibility for administration of the safe-
guards which the United States has carried out
luider its bilateral agreements. This we have
undertaken to do, and the first such transfer
was accomplished by means of a trilateral
NOVEMBER 30, 1964
783
agreement signed by the United States, Japan,
and the IAEA on September 23, 1963, under
which the Agency now administers the safe-
guards arrangements between the two signa-
tory countries. Thus far, arrangements have
been made for tlie IAEA to administer the
safeguards applied to the nuclear materials,
equipment, and technology supplied by the
United States to 11 countries: namely, Japan,
Norway, Greece, Austria, the Philippines, Viet-
Nam, Argentina, Portugal, Thailand, Iran, and
Nationalist China. This list will be extended
as we conclude other negotiations now under-
way.
Some Criticisms From Developing Countries
Up to this point, I have given little indication
of some of the difficulties encountered and criti-
cisms that have been voiced in opposition to
this international safeguards system. Ob-
viously, these difficulties exist, since it has taken
8 years to reach the point where we are today —
8 years which have included a determined
United States effort. One of the most persist-
ent complaints against this international system
of controls and inspection has been voiced by
certain of the developing countries. Because
IAEA safeguards do not apply to the pluto-
nium production reactors and other facilities of
the present nuclear powers, the claim is made
that safeguards are discriminatory — that they
discriminate against the least advanced coun-
tries, that they discriminate against the "have
nots." If one means — and one does — that safe-
guards discriminate against nuclear spread, to
this I answer, of course they are discriminatory.
That is exactly what they were intended to be !
They were intended to prevent the proliferation
of nuclear weapons. They were meant to pre-
vent the "have nots" from becoming "haves" as
far as nuclear weapons are concerned.
I must add that we are working toward the
tune when all of the nuclear powers will also
be discriminated against, for, by its very na-
ture, a serious arms limitation or disarmament
measure must, in a sense, discriminate against
the more advanced nations in favor of the less
advanced nations. I believe that no responsi-
ble nation, large or small, advanced or emerg-
ing, questions the need to ultimately create and
enforce a comprehensive progi'am of arms con-
trol and disarmament. Such an ultimate com-
prehensive system, when it comes, will of neces-
sity require the imifomi application of safe-
guards to the programs of nuclear and non-
nuclear powers alike, and at that time certainly
the question of discrimination will become an
academic one.
If one argues that safeguards impede the nu-
clear industrial or economic development of the
developing countries or puts them to a special
disadvantage, then I would point out that the
safeguards we have are so designed and admin-
istered that they do not interfere in this devel-
opment. On the contrary', as I have indicated,
it is only under the mantle of safeguards that
we are able to assist these countries to obtain
the full benefits of the peaceful atom. More-
over, it is to the redoimding credit of the less
developed countries that the majority of them
have not only readily accepted safeguards but
have vigorously assisted in their development.
In order to encourage the development of
IAEA safeguards and overcome some of the re-
sistance encovmtered in certain quarters, the
United States a few years ago voluntarily
placed four of its civilian prototype power and
research reactors under the Agency system.^
This was done as a means of testing the system
and giving IAEA safeguards staff experience
in conducting safeguards inspections. That
agreement was recently renewed and extended
to include a large privately owned U.S. power
reactor — the Yankee reactor at Rowe, Massa-
chusetts, owned by the Yankee Atomic Electric
Company.^ The invitation to apply safeguards
to this 600 thermal megawatt reactor (capable
of producing more than 100 kilograms of plu-
toniiun per year) was extended to assist the
IAEA in developing and demonstrating the ef-
fectiveness of its inspection teclmiques for
larger reactors.
As matters stand today, then, we see that the
International Atomic Energj' Agency has as-
sumed an active role in administering its sys-
tem of international safeguards and is moving
" Ibid.. Apr. 23, 1962, p. 696.
° For an IAEA announcement of June 11, see ibid.,
July 6, 19G4, p. 27.
784
DEPARTMENT OF STATE BULLETIN
forward to keep pace with the growth of nu-
clear power.
U.S.-EURATOM Agreement
Another major phase of our cooperation in
nuclear developments abroad is our continuing
jomt program with the European Atomic En-
ergy Commimity, or EURATOM, the nuclear
community composed of the six Common Mar-
ket countries. As originally planned, the U.S.-
EURATOM joint power program would have
brought into operation in the Community by the
end of 1965 a total installed nuclear capacity of
1 million kilowatts, or 1,000 megawatts of elec-
tricity. The program as actually developed
totals about two-thirds of the original goal of a
million kilowatts in the form of three power
reactor projects.
The agreement between the United States and
EXIRATOM,' in addition to defining our modes
of cooperation, also contains important provi-
sions relating to safeguards. The Community, a
multinational and in a sense a supranational
body, guarantees that no material, equipment,
or device furnished under the agreement will be
used for military purposes and that no material
will be transferred from the control of the Com-
munity except by agreement of the United
States. EUKATOM has also agreed to follow
a series of prescribed principles, fashioned after
those contained in the statute of the IAEA, in
applying its multilateral safeguards system to
the assistance received from the United States.
Tlie United States has the opportimity under its
understanding with EUEATOM to verify by
scientific methods the effectiveness of EURA-
TOM's safeguards system.
Challenges and Opportunities of a New Era
The certain facts before us, then, clearly indi-
cate that large-scale nuclear power will be a
reality in many countries of the world in the
not too distant future. The conclusion I hope
you will have begun to share with me by now
is that the development of international safe-
guards, especially those of the International
Atomic Energy Agency, will allow us to accept
the challenges and opportimities of a new era.
' For text, see Hid., Jan. 12, 1959, p. 69.
An item of very great importance in this broad
picture has been what we consider to be a sub-
stantial improvement in the attitudes and spirit
of cooperativeness on the part of the U.S.S.R.
and other Commimist coimtries. At a recent
IAEA conference, as a matter of fact, it was the
U.S.S.R. representative who arose at one point
to question a proposed relaxation in Agency
safeguards.
These developments in international coopera-
tion in the peaceful uses of nuclear energy com-
plement and support what has been achieved
by the nations of the world in the limited test
ban treaty banning nuclear weapons tests in the
atmosphere, in outer space, and imder water.
As we look forward hopefully to a time when
more comprehensive, properly inspected arms
control and disarmament treaties may be
achieved, we recognize that what we have done
in the safeguards area and in the limited test
ban treaty are extremely important initial steps.
However, the recent test of a nuclear device in
Cliina has shown us all that there is still a way
to go. Here is an example of a nation, certainly
not technologically advanced by comparison
with a number of others, that is apparently fol-
lowing the well-defined steps toward nuclear
capability.
As you may know, there are two approaches
a nation can follow to a nuclear weapons capa-
bility. One is to develop the necessary tech-
niques of isotope separation and then to con-
stnict an isotope separations plant in which
natural uranium can be enriched. The product
of tliis plant — higlily enriched uranium — can
then be used directly in a nuclear weapon.
The other route to nuclear weapons is through
the use of plutonium. To produce plutonium,
a nation can build large natural uranium fueled
reactors, as all of the present nuclear powers —
the United States, the United Kingdom, the
U.S.S.R., and France — did at the beginning of
their military effort. The natural uranium and
graphite or heavy water needed for the produc-
tion reactors are available from many countries.
The construction and operation of these reactors
can be paralleled by the mastering of the chem-
ical separations teclmology and the construc-
tion of a chemical separations plant. A slightly
subsequent or nearly parallel weapons effort is
785
the development of plutonium metallurgy and
the necessary technology associated with the
fabrication of a nuclear device. Some 8 or 10
countries seem to be capable of pursuing this
route today if they so choose. In every case,
choice of such a course by a nation would be-
come known. Fortunately, none of these na-
tions seems inclined at present to take this
course. Such possibilities, however, increase the
necessity of continuing and strengthening the
safeguards where these are already applicable
and of striving to effect restraints in the case
of nations not yet subject to safeguards in their
independent programs.
The final step — that of testing the nuclear
device — is most easily and inexpensively accom-
plished in the atmosphere. Underground test-
ing is more difficult. Here you can see a benefit
of the limited test ban treaty in deterring the
signatory nations, and you can see the real bene-
fit of a future properly inspected comprehen-
sive test ban treaty which would extend the
present ban on tests to underground weapons
tests and thus greatly assist in halting the fur-
ther proliferation of nuclear weapons.
I cannot help feeling a profound sense of
satisfaction that we have made our first steps in
establishing safeguards and getting a limited
test ban treaty — and especially that the first
international inspections that have been
achieved in the arms limitation area were in
activities relating to the peaceful applications
of nuclear energy. Let me repeat, however, that
what the Chinese People's Republic has done
can be done by other nations as well. I believe
we must continue to press forward vigorously
toward the day when we can be even more secure
through the achievement of a comprehensive
nuclear test ban agreement with adequate in-
spection and controls.
At tlie Tliird International Conference on
the Peaceful Uses of Atomic Energy in Geneva,
as we reviewed our progress over recent years,
one thing above all became apparent: The de-
gree of international cooperation in the devel-
opment of our nuclear energy resources in the
last decade is surely imusual, and perhaps
imique, in world history. The work of the In-
ternational Atomic Energy Agency, the variety
of cooperative programs among nations, and the
nuclear assistance programs of a number of
nations have no coimterparts in the previous
development of international science and tech-
nology. This international collaboration car-
ried out so successfully in the nuclear energy
field furtlier strengthens the thesis that science
can serve as a common ground between nations
of the world. The free flow of information, not
only in science but also at the more restrictive
technological level, is the key to the most rapid
progress for all people.
I believe that the Geneva conference served
to dramatize the fact that the practical achieve-
ment of material well-being for the peoples of
the developing nations rests upon this structure
of close international cooperation. Again we
were made aware of the relative shortages of
fossil fuels and hydroelectric potential in many
of these nations. If they are to reach and main-
tain living standards presently found in the
developed countries by the end of the century,
there can be no doubt that the enormous poten-
tialities of nuclear energy will have to be mus-
tered and disciplined to their service. Indeed,
we see the possibility that through nuclear
power the developing nations may partially
circumvent the long years of the Industrial
Revolution and greatly telescope the time re-
quired for those nations to enter the scientific
revolution upon which so many of the devel-
oped nations have already embarked. The
imagination and resourcefulness employed by
the United States and other nations of ad-
vanced technology in helping to bring about
this kind of advancement on tlie part of our less
fortunate neighbors will be of the utmost im-
portance in furthering the general cause of
humanity in the years to come.
786
DEPARTMENT OP 8TATB BTJT.TiTnTlT
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
International Human Rights Year
Statement hy Franklin H. Williams ^
As this is my first intervention in this com-
mittee, I would like to congratulate you, sir
[E. R. Eichardson, of Jamaica], not only on
^our election as chainnan but also on the initia-
tive that you and your Government have taken
in proposing the International Human Eights
Year. Tliis is a subject of great interest and
concern not only to my Government but also to
me personally. "We consider the human rights
provisions one of the most important and most
ueglected areas of our charter responsibilities.
Mr. Chairman, it is apparent to me and to
the other members of this committee that tlie
record of my Government in the field of human
rights is far from perfect. Nevertheless, we
are working vigorously and constantly on our
problems and are irreversibly engaged in the
process of making good on the great promises
of our great human rights documents : the Con-
stitution, the Declaration of Independence, and
the Emancipation Proclamation. We therefore
feel no embarrassment in asking whether every
member of our organization is equally dedicated
and active in promoting what our charter calls
the "universal respect for, and observance of,
human rights and fundamental freedoms for all
without distinction as to race, sex, language, or
religion."
"V\niile there are still some peoples that re-
main in dependent status, the drive for national
independence, sparked, at least in part, by our
own Declaration of Independence, has culmi-
nated in national freedom for nearly all the
world's peoples. It is time now for each of us
to think harder and to do more internationally
' Made before the U.N. Committee on the Interna-
tional Tear for Human Rights on Oct. 21 (U.S./U.N.
pres.s release 4455). Mr. Williams is U.S. Representa-
tive on the U.N. Economic and Social Council.
to insure personal freedom and equality for the
mdividual citizen. Unfortunately, the achieve-
ment of national independence has too often not
resulted in the expansion of individual liberty.
These concepts, freedom and equality, are not
solely the aspirations of nations, states, or eth-
nic groups. They are the aspirations of individ-
ual men and women, with all of their personal
problems and idiosyncrasies. This is a fact that
we on this committee should constantly bear in
mind during our deliberations and planning for
the year.
The inhumanity of man to man is generally
an incident in the internal politics of nations
and can only be halted by the continued strug-
gle for individual freedom inside societies after
nationhood has been achieved. Nevertheless,
such internal denials of individual freedom and
human dignity are of great concern to the inter-
national community.
We see this exemplified in the case of South
Africa. The entire world is shocked and en-
raged by that Government's policy of apartheid.
But even where governments' policies are not
so all-pervasive, we are worried and concerned.
All barriers — governmentally enforced, based
on arbitrary considerations of race, religion,
or color — are properly of concern to us. Bars
to employment, bars to housing, bars to travel,
bars which deny a white man citizenship or a
black man the franchise, discriminatory trade
and business arrangements which favor one
group to the disadvantage or exclusion of others
— all are properly of concern to us.
Role of U.N. in Field of Human Rights
But, Mr. Chairman, the real problem we must
resolve is how far we in the United Nations
want our organization to go in doing something
about these matters. We all agree that the U.N.
should promote national independence through
self-determination. But are we equally deter-
mined that our organization should vigorously
NOVEMBER 30, 1964
787
promote, and I quote article 55 of our charter,
the "universal respect for, and observance of,
human rights and f imdamental freedoms for all
without distinction as to race, sex, language,
or religion"? Do we possess an equal determi-
nation to take "joint and separate action in co-
operation with the Organization for the achieve-
ment of the purposes set forth in Article 55"?
I suggest, Mr. Chairman, that while there is
wide agreement that our organization should
work for self-determination, there is a good
deal of imcertainty as to how far the U.N.
should go in considering the problems of al-
ready independent peoples. In view of this we
must be realistic in asking ourselves what the
U.N. can do about human rights. My own feel-
ing is that one possibility would be for our or-
ganization to shine a factfinding light into the
many comers of the world in order that prob-
lems may be unearthed and that solutions may
be sought.
But such a suggestion raises an important
policy question for all our governments. We
need to consider whether, as the price for shin-
ing a light on the problems of others, we are
prepared to have our organization turn its
public attention to our own problems. We
must ask how far and how fast we want our
organization to proceed in holding its member
nations to their human rights obligations under
the charter. We must ask whether there are
new ways, practical ways, yet consistent with
the sovereign equality of nations, by which our
organization can help protect and promote the
dignity and freedom of individuals within their
own coimtries and even possibly against the op-
pressions of their own governments.
Mr. Chairman, this is not a rhetorical ques-
tion ; this is a real question. I am sure that we
could make no more significant beginning to
the International Human Rights Year than to
tackle this important problem now, in public,
in earnest, and in every country.
Mr. Chairman, it should be apparent that my
delegation views the implementation of human
rights as an appropriate major concern for our
International Year. And we sincerely hope
that one impact of the Year will be to broaden
concern and strengthen the instrumentalities for
international protection of human rights. It is
possible that discussions in Committee III of
the General Assembly may provide adequate
study materials for various international pro-
posals. I would not think it appropriate for
our committee to prejudge the work of the Gen-
eral Assembly in this important field. How-
ever, we might recommend to the Commission
on Human Rights that it give priority to the
international implementation of hvunan rights
when it considers the International Year.
Mr. Chairman, my delegation is, of course,
concerned with national as well as international
implementation of human rights. We are not
aware of any survey of national institutions
which exist for this purpose. Many coimtries
have recently made great strides in this very
important field. We believe the committee
should recommend to the Commission that an
information document be prepared on this very
important subject. A study might be under-
taken by an expert body, such as the Subcom-
mission on Discrimination and Minorities, or
the Secretary-General himself might be asked
to prepare an analysis of such existing institu-
tions.
In reading the working paper" which you
prepared for our committee, it struck me that
one of your central concerns, and one that we
share, is that significant educational activities
be undertaken in connection with the Interna-
tional Year. Certainly education about hu-
man rights should be one of our major goals.
It would be my hope, sir, that the special com-
plementary program of education suggested in
paragraph 45 of your working paper be but one
part of this broad educational program. It
seems to me that every aspect of the program
that we recommend to the Commission on
Human Rights should have a built-in educa-
tional feature. For example, the activities sug-
gested m part I of your paper will require the
cooperation of informed citizens in each comi-
try and will contribute to the education of
others. The national advisory committees re-
ferred to should include educational programs
among their activities. The programs of the
U.N. through the U.N. information centers, the
miscellaneous jirivate media, and the various
national information sei-vices could all bo called
= U.N. doc. ST/SG/AC.5/3 and Corr. 1.
788
DEPARTMENT OP STATE BULLETIN
upon to participate in a significant way in edu-
cation for human rights during the Interna-
tional Year.
One particularly important aspect of the pro-
gram for tlie Year relates to the activities that
might be imdertaken by the nongovernmental
organizations. The distinguished delegate
from the Philippines [Mrs. Ramos Shahani]
on Monday [October 19] drew the attention of
our committee to some of the valuable sugges-
tions that already have been made by them.
We share her hope that the committee will be
able to devote adequate time to these. The In-
ternational League for the Rights of Man has
sent to the members of the committee a brochure
which my delegation found of great interest.
This pamphlet, "The Great Question : A Guide
for Community Action," though jirepared for
use in the United States, contains a great vari-
ety of valuable material that would be easily
adaptable for use in other coimtries. In con-
nection with the brochure I especially would
like to draw the attention of the committee to
the notion of community audits.
Views on Proposed Human Rights Conference
Mr. Chainnan, these are a few of the thoughts
of my delegation on the International Year for
Human Rights. However, it seems to us that
more thoi-ough and careful consideration than
has thus far been possible needs to be given to
the type and form that the actual observance
and celebration of the 20th anniversary of the
Universal Declaration might take.
We do not believe it possible at the present
time to make a valid judgment regarding the
proposed human rights conference in 1968. In
saying this, my delegation does not wish to be
interpreted as taking a position either in favor
of or opposed to the conference. In our report
to the Commission on Human Rights we might
mention the points brought out concerning the
conference, but my delegation considers it pre-
mature for our committee to make a definitive
recommendation.
We do believe, however, that steps can be ini-
tiated now to prepare the way for an effective,
realistic, and meaningful celebration. Some of
these steps have been indicated in outline in
what has already been said regarding the work
of the nongovernmental organizations, the
preparation of a document on national imple-
mentation machinery, and study of the question
as to how far our organization should actually
go in promoting human rights and fimdamen-
tal freedoms. In addition, it seems to us that
the regional seminars organized in 1966 and
1967 imder the Human Rights Advisoiy Serv-
ices Program can provide a broad base for dis-
cussion on the extent of progress and evalua-
tion of teclmiques which have been useful in
advancing hmnan rights. Thus, we do think
that, without making any definitive recommen-
dation to the Commission with regard to a con-
ference in 1968, our committee could suggest to
the Commission that certain aspects of the
terms of reference as suggested to us for our
study by the Commission be considered under
the Advisory Services Program, without, of
course, in any way prejudicing a final decision
for or against such a hmnan rights conference.
Mr. Chairman, I appreciate this opportunity
to expi-ess some of the views of my delegation
about the International Year. I have not, of
course, taken the opportunity to address myself
to all aspects of your excellent working paper.
Were I to do so, sir, I am certain that it would
take more of the committee's time than would
be justified. However, I can assure you, sir,
of the wholehearted collaboration of my delega-
tion in the work of this committee and, of
course, in the preparation and celebration of
the International Year itself.
Supplementary List of Items
Proposed for U.N. Agenda
Following is a supplementary list of items
proposed for inclusion in the agenda of the 19th
regular session of the U.N. General Asserribly}
U.N. doc. A/5760/Rev. 1 dated November 9
1. Kenunciation by States of the use of force for the
settlement of territorial disputes and questions con-
cerning frontiers [item proposed by the Union of
Soviet Socialist Republics (A/5751)].
2. Question of Cyprus [item proposed by Cyprus (A/
5752)].
* For text of the provisional agenda dated Sept. 10,
19Gi, see Buixetin of Oct. 5, 1964, p. 491.
NOVEMBER 30, 1964
789
3. The grave situation created by the policies of the
Greek Cypriots and of Greece in the question of
Cyprus [item proposed by Turlcey (A/5753)].
4. Report of the Secretary-General on the Third United
Nations International Conference on the Peaceful
Uses of Atomic Energy [item proposed by the Sec-
retary-General ( A/5754 ) ] .
5. Consolidation of the Special Fund and the Expanded
Programme of Technical Assistance in a United Na-
tions Development Programme [item proposed by
the Secretary-General (A/5755)].
6. Observance by Member States of the principles re-
lating to the sovereignty of States, their territorial
integrity, non-interference in their domestic affairs,
the peaceful settlement of disputes and the condem-
nation of subversive activities [item proposed by
Madagascar (A/5757 and Add. 1)].
7. Non-proliferation of nuclear weapons [item proposed
by India (A/5758)].
8. Restoration of the lawful rights of the People's
Republic of China in the United Nations [item pro-
posed by Cambodia (A/5761)].
9. Question of Tibet [item proposed by El Salvador,
Nicaragua and the Philippines (A/.5765)].
World Bank Reports Net Income
of $33 IVIillion in First Quarter
The International Bank for Reconstruction
and Development on November 5 reported net
income of $33 million in the first quarter of the
current fiscal year. In addition, at the end of
the period, September 30, 1964, the Bank had
reserves of $894 million.
Gross income was $64 million. Expenses
totaled $31 million and included $26 million for
interest, issuance, and other financial expenses
connected with the Bank's funded debt.
During the period the Bank made 9 loans
totaling $273 million in Finland, Gabon, Mo-
rocco, Nigeria, Philippines, Sierra Leone,
Spain, and Venezuela (2 loans) . This brought
the total number of loans to 395 in 74 countries
and territories and raised the gross total of com-
mitments to $8,204 million. By September 30,
as a result of cancellations, exchange adjust-
ments, repayments, and sales of loans, the por-
tions of loans signed still retained by the Bank
had been reduced to $5,406 million.
Disbursements on loans were $158 million,
making total disbursements $6,143 million on
September 30.
The Bank sold or agreed to sell the equivalent
of $31 million principal amounts of loans. At
September 30 the total amount of such sales was
$1,810 million, of which all except $69 million
was without the Bank's guarantee.
Repayments of principal received by the
Bank amounted to $28 million. Total principal
repayments amounted to $1,654 million on Sep-
tember 30, consisting of $801 million repaid to
the Bank and $853 million repaid to the pur-
chasers of borrowers' obligations sold by the
Bank.
On September 30 the outstanding funded debt
of the Bank was $2,490 million, reflecting a net
decrease of $2 million in the past 3 months.
During the period the funded debt was in-
creased through the private placement of notes
totaling $60 million and DM 160 million (U.S.
equivalent $40 million). The debt was de-
creased through the retirement of notes total-
ing $75 million and DM 100 million (U.S.
equivalent $25 million) and by sinking fund
transactions amounting to $2 million.
Current U.N. Documents:
A Selected Bibliography
Mimeographed or processed documents (such as those
listed heloiv) may he consulted at depository libraries
in the United States. U.N. printed piihlications may
6e purchased from the Sales Section of the United
Nations, United Nations Plaza, N.Y.
Security Council
Letters to the President of the Security Council from
the representative of Cambodia with regard to Cam-
bodian charges of aggression by armed forces of the
Republic of Viet-Nam. S/5926, September 2, 1964,
1 p. ; S/5932, September 4, 1964, 1 p. ; S/5942, Sep-
tember 9, 1964, 1 p.
Letter dated September 9 to the President of the
Security Council from the Charge d'Affaires a.i. of
Cambodia, transmitting the text of a joint declara-
tion with regard to the report of the Security Council
Missi(m by the "Prince Head of State of Cambodia,
the Roval Government and the two Assemblies" on
August 30. S/59,52. September 10. 1064. 4 pp.
Report by the Secretary-General to the Security Coun-
cil on the functioning of the United Nations Yemen
Observation Mission and the implementation of the
terms of disengagement covering the period from
Julv 5 to September 4, 1964. S/5927. September
2, 1964. 7 pp.
Cable dated September 1 to the President of the Se-
curity Council from the Minister for Foreign Affairs
of Haiti with regard to an "unprovol^ed net of hos-
tility" by the "garrison of the Dominican frontier
post of Jimani against the Haitian frontier post of
Malpasse." S/5928. September 2, 1964. 2 pp.
790
DEPARTMENT OF BTATE BULLETIN
■J
TREATY INFORMATION
United States and U.S.S.R. Agree
To Cooperate in Weather Matters
Following is a statement made hy President
Johnson on October 24- regarding an agreement
with the Soviet Union for the exchange of
weather information, together ^oith the text of
the agreement as released at the United Nations
on Novemher 5.
WHITE HOUSE ANNOUNCEMENT
White House press release dated October 24
Statement by President iohnson
I am happy to be able to announce that we
have reached an agreement with the Soviet Un-
ion for the exchange of weather information be-
tween Washington and Moscow.
Tliis is a good step forward in building the
"World Weather System, to wliich I repledged
American cooperation last Juno at Holy Cross
College.^
This cooperative effort has grown out of the
beginning made by President Kemiedy in liis
speech to the United Nations on September 25,
1961.^ He said then that our country ". . .
would propose cooperative efforts between all
nations in weather prediction and eventually in
weather control."
In 1961 and 1962 the United Nations called
upon the World Meteorological Organization
to develop a program of cooperation that would
strengthen weather service and research. The
organization responded with a concept of a
World Weather System and has designated
Moscow and Washington as two World Weather
Centers.
The United States and the Soviet Union have
been working out an agreement to exchange
weather information over a direct communica-
tions link between the two capitals. The agree-
ment we have now reached provides for the ex-
change on a reciprocal basis of weather informa-
tion gathered by satellites. For a short initial
period conventional data will be exchanged.
We hope that other member nations of the
World Meteorological Organization may even-
tually participate in the exchange of data over
this weather link.
We expect that the formal terms of this new
agreement will be released next week at a meet-
ing in New York of the United Nations Com-
mittee on Peaceful Uses of Outer Space.
In addition, I expect to be able in the near
future to announce the opening of the World
Weather Center in Washington. We have al-
ready been exchanging test transmissions on an
experimental basis. We know that the new link,
when in operation, will be a substantial step
forward in speeding the transmission of valua-
ble weather data in both directions. The Amer-
ican weatherman and the American public will
immediately benefit from these improvements.
I take this opportunity to release a letter that
I have sent to Secretary Hodges. This letter
emphasizes my continuing support for interna-
tional cooperation in weather matters and my
desire to insure that all departments and agen-
cies of the United States Government do their
full part in support of international weather
activities.
Letter to Secretary Hodges
October 23, 1984
' BtTLLETiN of June 29, 1964, p. 990.
'Ibid., Oct. 16, 1961, p. 619.
Dear AIr. Secretary : As you are fully aware, we
have over the past few years witnessed a substantial
increase in international cooperation in weather mat-
ters. The nations of the world are exchanging meteoro-
logical data and pooling their activities to a greater
extent than ever before to provide early warnings of
severe storms and other calamities of nature, to fur-
ther the safety and efficiency of air and sea travel,
and to promote industry, commerce, and agriculture
NOVEMBER 30, 19G4
791
within their own borders. The most recent significant
event in international weather cooperation has been
the agreement among the member nations of the World
Meteorological Organization to accelerate the develop-
ment of a World Weather System. When the System
is brought into full operation, it will bring substan-
tial benefits both to our own country and to the less
developed nations of the world. I have pledged the
cooperation of the United States in the development
of the System because of its Importance to us and to
the world at large.
A number of Federal departments and agencies are
presently involved in international activities in meteor-
ology and have a concern with one aspect or another
of United States international meteorological pol-
icies. With the growth of international cooperation
in weather matters, and particularly with the quick-
ening of international efforts to develop a World
Weather System, there must be even more continuing
consultation among them and effective coordination of
their activities than has been necessary up to now.
I therefore direct that you take such action as you
may deem necessary to bring the interested Federal
departments and agencies into closer consultation and
coordination with regard to international activities in
meteorology and the formulation of United States in-
ternational meteorological policies and programs to
ensure that the United States will continue to make a
significant contribution to international meteorological
activities.
Sincerely,
Lyndon B. Johnson
The Honorable Luthee H. Hodges
Secretary of Commerce:
Washington, D.C.
RELEASE OF AGREEMENT AT U.N.
U.S. Mission Note to Correspondents, November 5
Representatives of the U.S. National Aero-
nautics and Space Administration and the
Academy of Sciences of the U.S.S.R. have con-
tinued discussions on bilateral cooperation in
space activities during the current meetings of
the U.N. Committee on the Peaceful Uses of
Outer Space. The chief representatives of the
two agencies were, respectively, Dr. Hugh L.
Dryden and Academician A. A. Blagonravov.
As a result of the present series of bilateral
discussions, final agreement was reached on a
Second Memorandum of Understanding to Im-
plement the Bilateral Space Agreement of June
8, 19G2, clearing the way for the exchange of
conventional and satellite weather data, when
available from both sides, over a special com-
munications link between Moscow and Wash-
ington. This link is now being used experi-
mentally.
Additional details were included relating to
the complementary use of satellites by both
countries in mapping the earth's magnetic field.
Finally, discussions continued on the subject
of the preparation of a joint review of space
biology and medicine. The means of carrjdng
out this project have not yet been agreed. Con-
sideration may be renewed at a later date.
Copies of the English and Russian text of the
Second Memorandum of Understanding, along
with an attached Protocol establishing the spe-
cial communications link, are being submitted
to the Secretary-General of the United Nations
with a request that they be circulated to aU
United Nations members.
Texts of Memorandum and Protocol
Second Memoeandum of Understanding To Implement
THE Bilateral Space Agreement of June 8, 1962
Between the Academy of Sciences of the USSR
AND the National Aeeonautics and Space Admin-
istration of the us
I — Preamble
The purpose of the present Memorandum of Under-
standing is to advance the implementation of the sec-
tions of the bilateral space agreement of June 8, 1062 '
dealing with a coordinated meteorological satellite
program and a world magnetic survey rising satellites.
II — Coordinated Meteorological Satkt.t.tte Program
This section of the Second Memorandum of Under-
standing to Implement the Bilateral Space Agreement
of June 8, 1962 supplements Section II of the First
Memorandum dated March 20 and May 24, 1963,* and
replaces the Appendix attached to that Memorandum.
A. Exchange of Conventional Meteorological Data
1. Conventional data of equivalent type will be ex-
changed over the communications link between the
World Meteorological Centers in Moscow and in Wash-
ington, provisions for the establishment of which have
been determined by a separate protocol in accordance
with transmission schedules to be agreed by exchange
of correspondence between the Chief, U.S. Weather
Bureau, and the Chief of the Hydrometeorological Serv-
ice of the USSR.
• For text, see ibid., Dec. 24, 1962, p. 963.
* For text, see ibid., Sept. 9, 1963, p. 405.
792
DEPARTMENT OF STATE BULLETIN
2. The following order of priority shall apply to the
transmission of conventional meteorological data :
(a) Collectives of upper-air data. Transmissions
should be completed within four hours of observation
time.
(b) CoUectives of surface synoptic weather reports.
Data available in Washington, withm three hours of
observation time, for the area of North and Central
America and the North Atlantic and North Pacific
Oceans, will be transmitted to Moscow. Data avail-
able in Moscow, within three hours of observation
time, for the areas of Eastern Europe, the USSR, South
Asia and the Southern Pacific (WMO Regional Asso-
ciation V), will be transmitted to Washington.
(e) In addition, the following charts will be trans-
mitted by facsimile on a time available basis :
(i) Forecast contour charts for 1,000, 500, 300 and
200 millibars, for periods up to 72 hours, if avail-
able,
(ii) Vertical motion forecast for a level between 850
and 500 mb, or for the levels 850, 700 and 500 mb.
(iii) 500 mb. vorticity chart,
(iv) Sea level isobaric five-day forecast,
(v) Thirty-day temperature and precipitation fore-
cast for the continent of the transmitting coun-
try,
(vi) Special charts for aviation such as tropopause
chart and significant weather distribution chart
3. When practicable, charts exchanged will cover
the area of the Northern Hemisphere. Polar stereo-
graphic projections will be used for all chart ex-
changes. Analysis and prognostic charts having a
scale of 1 : 30 million or 1 : 40 million will be used.
Special charts exchanged on request would be on
scales most convenient for the transmitting country.
4. When satellite data become available, they will
have first priority as provided in the First Memoran-
dum of Understanding. Priorities for conventional
data will follow thereafter in the order prescribed
above. It is recognized that, due to the experimental
nature of satellite programs, there may be periods
when satellite data will not be available at Moscow or
Washington and satellite data exchange will be tempo-
rarily discontinued.
5. Status of the exchange will be reviewed formal-
ly early in 1965, and at six-month intervals thereafter,
to ascertain whether the purpose of satellite data ex-
change has been achieved and to evaluate the use-
fulness of continued direct exchange. If satellite data
do not become mutually available within a reasonable
time, the exchange of data over this special link will
be discontinued.
Ill — Maonetio Field Subvet Through the Use of
Artificial Satellites
A. Exchange of Data
1. It is agreed that the exchange of magnetic observa-
tory data between the Academy of Sciences of the
USSR and NASA of the USA, provided for and de-
scribed in IV, paragraph 6, of the First Memorandum
of Understanding (Geneva, 1963) is to be conducted in
the volume of data for the years 1964 and 1965, and
will be carried out through World Data Centers A and
B, located, respectively, in Washington and in Mos-
cow.
2. It is agreed that magnetograms and monthly tables
of the following Observatories
VSSR
Yakutsk
Sverdlovsk
Irkutsk
Odessa
Tashkent
V8
Sitka
College [Alaska]
Fredericksburg
Tucson
San Juaa
Guam
for the years 1960-1963 will be transmitted to World
Data Centers A and B before the end of 1964.
3. It is agreed that the exchange of magnetic sur-
vey data taken without the utilization of satellites,
provided for in IV, paragraph 8, of the First Memo-
randum of Understanding (Geneva, 1963) will be con-
ducted through World Data Centers A and B, located,
respectively, in Washington and in Moscow.
B. Magnetic Mapping
It is agreed to review the possibility of utilizing
satellite measurement results for the composition of a
magnetic map for days of slight disturbance and to
exchange review results with the other side.
FOR THE ACADEMY OF
SCIENCES OF THE
USSR :
A. Blaoonravov
FOR NASA:
Hugh L. Dbtden
New York, New York
November 5, 1964
Protocol
Fob the Establishment of a Special Direct Com-
munications Link Between the World Meteorologi-
cal Centers in Moscow and Washington in Accord-
ance With the Bilateral Agreement on Outer Space
Dates) June 8, 1962 Between the Academy of Sciences
OF the USSR and the National Aeronautics and
Space Administration of the USA.
1. This Protocol has been prepared to implement
the Bilateral Agreement in Outer Space, dated June
8, 1962, between the Academy of Sciences of the USSR
and the National Aeronautics and Space Administra-
tion in the USA, as well as the first Memorandum of
Understanding dated March 20 and May 24, 1963.
2. In anticipation of the availability of meteorologi-
cal satellite data for exchange by early 1965, it is agreed
to establish, in the third quarter of 1964, a duplex
twenty-four hour communications link between Mos-
cow and Washington, for transmission of meteorologi-
cal information. Assuming there are no technical dif-
NOVEMBER 30, 1964
793
Acuities of any kind, it is agreed tliat each side will
use its own terminal equipment and apparatus and
that the telegraph signals will be sent in accordance
with International Telegraph Code 2. The communica-
tions link and the terminal equipment and apparatus
will conform to CCITT [Comitd consultatif interna-
tional ta^graphique et t^l^phonique] standards, and
will be operated according to an agreed schedule of
transmission of photo, facsimile, and telegraph signals.
3. It was agreed that the link would be routed via
the following points — Moscow-Warsaw-Berlin-Frank-
furt-London-Washington.
4. The principle of equal sharing of costs will be
achieved through a method of settlement whereby the
sides will pay full costs of the communications link
between Washington and Moscow for periods of one
month. The American side will pay for the first
month after establishment of the link after which the
responsibility for payment of costs will be assumed by
the parties alternately for each one month period.
5. After the link has been determined to be operating
satisfactorily, the parties, in a manner to be deter-
mined by correspondence, will invite to a meeting the
WMO, weather services operating in the territories
through which the communications link passes, and
any other weather services interested in acquiring
access to the communication link on a receive-only
basis. Each such weather service will make a propor-
tional contribution to the total expenses of the com-
munications link.
6. This special Protocol may be terminated by either
party on 60 days notice.
FOn NASA
Hugh L. Drtden
John W. Townsend
Geneva, Switzerland
June 6, 1964
FOR THE ACADEMY OF
SCIENCES OF THE
USSR:
A. Blagonravov
A. Badalov
U.S. and Spain Conclude
Cotton Textile Agreement
Press release 474 dated October 30
DEPARTMENT ANNOUNCEMENT
The Governments of the United States and
Spain announced on October 30 the conclusion
of an agreement relating to trade in cotton tex-
tiles between Spain and the United States. The
new agreement modifies an earlier arrangement
concluded on July 16, 1963.'
The new agreement is designed to promote
the orderly development of Spanish cotton
textile exports to the United States and was
negotiated under article 4 of the Long-Term
Arrangement Regarding International Trade
in Cotton Textiles, done at Geneva on Febiniary
9, 1962.^ The agreement was concluded by an
exchange of notes in Washington between As-
sistant Secretary of State for Economic Aifairs
G. Griffith Johnson and the Spanish Counselor
for Economic Affairs, Juan Luis Pan de Sora-
luce, Conde de San Roman.
The new arrangement is a result of bilateral
discussions held in Madrid the week of October
12 between representatives of the Spanish De-
partment of Commerce and of the U.S. Depart-
ments of Commerce, Labor, and State. The
talks led to a complete understanding between
the two Governments on the future pattern of
cotton textile exports from Spain to the United
States.
The principal features of the arrangement are
as follows :
1. The arrangement covers all 64 categories
of cotton textiles and continues in force for the
period October 1, 1964, to December 31, 1968.
2. Spain agrees to limit total exports of cotton
textiles in calendar year 1965 to an aggregate of
33 million square yards and, within this limit,
to the following levels :
a. Yams (categories 1^) — 2,100,000 pounds.
b. Fabrics (categories 5-27)— 19,250,000
square yards.
c. Made-up goods, apparel, and miscellaneous
items (categories 28-64) — 6,100,000 square
yards equivalent.
3. For the period October 1 to December 31,
1964, Spain agrees to limit exports of cotton tex-
tiles to one-quarter of the levels applicable for
1965.
4. The United States, for its part., agrees to
admit an additional 380,000 poimds of cotton
yam from Spain, to be exported in the period
October 1, 1964, to March 31, 1965, outside the
aggregate ceilings established by tlie agreement.
5. Within these limits, the agreement also
provides for specific export ceilings for 20 spe-
cific categories of cotton textiles.
' Treaties and Other International Acts Series 5427.
• For text, see Bulletin of Mar. 12, 1962, p. 431.
794
DEPARTMENT OF STATE BUIiLETrN
6. A set of conversion factors is specified in
the annex to the new agreement to express vari-
ous textile units in terms of a square yard
equivalent.
7. Within the group ceilings for fabrics, as
well as made-up goods, apparel, and miscellane-
ous items, any shortfalls occurring in categories
given specific ceilings may be used for categories
not given such specific ceilings.
8. Exports in any category not given a spe-
cific ceiling shall not exceed 350,000 square
yards equivalent in any 12-month period, except
by mutual agreement of the two Governments.
9. Within the aggregate annual limit, the
group and category ceilings can be exceeded by
up to 5 percent.
10. The aggregate limit, the group and in-
dividual category ceilings, as well as the con-
sultation level for other categories, will be in-
creased by 5 percent for the 12-month period
beginning January 1, 1966, and, on a cumula-
tive basis, for subsequent 12-month periods.
11. With the exception of seasonal items, the
Government of Spain shall endeavor to space
exports evenly over each 12-month period.
12. The two Governments will exchange sta-
tistical information on cotton textiles as is re-
quired for the effective implementation of the
new agreement.
13. The export levels established by the new
agreement supersede those of the agreement of
July 16, 1963. Furthermore, the Government
of the United States will not exercise its rights
under article 3 of the Long-Term Arrangement
during the duration of this new agreement.
AGREEMENT AND RELATED LETTERS
U.S. Note
OCTOBEB 30, 1964
Excellency : I have the honor to refer to recent dis-
cussions in Madrid between representatives of the
Government of the United States of America and the
Government of Spain concerning the Agreement Relat-
ing to Trade in Cotton Textiles between the United
States and Spain signed on July 16, 1963, and amended
by notes of Jiuie 1.5 and 17, 1964.'
As a result of these discussions, I have the honor
to propose the following modifications of that Agree-
ment:
' TIAS 5598.
1. The Government of Spain shall limit annual ex-
ports to the United States in all categories of cotton
textiles for the twelve-month period beginning Jan-
uary 1. 1965, to an aggregate limit of 33,000,000 square
yards equivalent.
2. Within the aggregate annual limit specified in
paragraph 1, the following group ceilings shall apply:
(a) Yarn (Categories 1-4) 2, 100, 000 lbs.
(b) Fabrics (Categories 5-27) 19, 250, 000 syds. eq.
(c) Made-up Goods, Apparel
and Misc. Items (Cate-
gories 28-64) 6, 100, 000 syds. eq.
3. No more than 50 per cent of the group ceiling
established in paragraph 2 for yarn shall be exported
in any of Categories 2, 3 or 4.
4. Within the group ceiling established in paragraph
2 for fabrics, the following specific ceilings shall apply :
(a) Categories 5-6 2,000,000 syds.
(b) Category 9 10,500,000 syds.
(c) Categories 18-19 6,000,000 syds.
(d) Categories 22-23 3,200,000 syds.
(e) Category 24 800,000 syds.
(f) Category 26 (duck only) 1,400,000 syds.
(g) Category 26 (other than duck) 7,000,000 syds.
5. Within the group ceiling established for made-up
goods, apparel and miscellaneous items in paragraph
2, the following specific ceilings shall apply:
(a) Category 36 95,000 pes.
(b) Categories 41-42-43 146,000 dz.
(c) Categories 48-49 (No more 700,000 syds.
than 450,000 syds. eq. in eq.
either category)
(d) Category 53 17,500 dz.
(e) Categories 57-58 1,750,000 syds.
eq.
(f) Category 62* 300,000 lbs.
(g) Category 64* 300,000 lbs.
•Prior to January 1, 1965, the Government of Spain
will propose to the Government of the United States a
breakdown of items in Categories 62 and 64 in accord-
ance with expected export patterns.
6. Within the group ceilings for fabrics and made-up
goods, apparel and miscellaneous items established by
paragraph 2, any shortfalls occurring in categories
given specific ceilings may be used for categories not
given a specific ceiling. Exports in any twelve-month
period in any category not given a specific ceiling shaU
not exceed 350.000 square yards equivalent except by
mutual agreement of the Governments.
7. Provided that the aggregate limit established by
paragraph 1 Is not exceeded, exports in any group or
any category given a specific ceiling may exceed by
up to 5 per cent the levels established herein for that
group or ceiling.
8. The limits on exports established by paragraphs
1, 2, 3, 4, 5 and 6 shall be raised by 5 per cent for the
twelve-month period beginning January 1, 1966 and, on
NOVEMBER 30, 1964
795
a cumulative basis, for subsequent twelve-month
periods.
9. With the exception of seasonal items, the Govern-
ment of Spain shall endeavor to space exports evenly-
over a twelve-month period.
10. Each Government agrees to supply promptly any
available statistical data requested by the other Gov-
ernment. In the implementation of this agreement,
the system of categories and the factors for conversion
into square yards equivalent set forth in the annex
hereto shall apply.
11. For the duration of this agreement, the Govern-
ment of the United States shall not exercise its rights
imder Article 3 of the Long Term Arrangement Regard-
ing International Trade in Cotton Textiles done at
Geneva on February 9, 1962 to request restraint on the
exjMrts of cotton textiles from Spain to the United
States. All other relevant provisions of the Long-Term
Arrangement shall remain in effect between the two
Governments.
12. This agreement shall become effective on January
1, 1965 and continue in force through December 31,
1968; provided that either Government may propose
revisions in the terms of the agreement no later than 90
days prior to the beginning of a new twelve-month
period ; and provided further that either Government
may terminate this agreement effective at the end of a
twelve-month period by written notice to the other Gov-
ernment to be given at least 90 days prior to the end
of such twelve-month period.
If these proposals are acceptable to the Government
of Spain, this note and Tour Excellency's note of accept-
ance * on behalf of the Government of Spain shall con-
stitute an agreement between our Governments.
Accept, Excellency, the renewed assurances of my
highest consideration.
For the Secretary of State :
G. GBii'i'iTH Johnson
His Excellency
The Maequis de Mbhiet Del Val,
Ambassador of Spain.
ANNEX
Cotton Textile Categories and Conversion
Factors
Caie-
Concarion
goTV
Dacription
Uhtt
Factor
1
Yam, carded, singles
Lb.
4. 6
2
Yam, carded, plied
Lb.
4.6
3
Yam, combed, singles
Lb.
4.6
4
Yarn, combed, plied
Lb.
4. 6
5
Gingham, carded
Syd.
1.0
6
Gingham, combed
Syd.
1.0
7
Velveteen
Syd.
1. 0
8
Corduroy
Syd.
1.0
9
Sheeting, carded
Syd.
1.0
10
Sheeting, combed
Syd.
1.0
11
Lawn, carded
Syd.
1.0
12
Lawn, combed
Syd.
1. 0
13
Voile, carded
Syd.
1.0
* Not printed here.
14
Voile, combed
Syd.
1.0
15
Poplin and broadcloth,
carded
Syd.
1.0
16
Poplin and broadcloth,
combed
Syd.
1.0
17
Typewriter ribbon cloth
Syd.
1.0
18
Print cloth, shirting type,
SO X 80 type, carded
Syd.
1.0
19
Print cloth, shirting type,
other than 80 x 80 type,
carded
Syd.
1. 0
20
Shirting, Jacquard or dobby,
carded
Syd.
1. 0
21
Shirting, Jacquard or dobby,
combed
Syd.
1.0
22
Twill and sateen, carded
Syd.
1.0
23
Twill and sateen, combed
Syd.
1.0
24
Woven fabric, n.e.s., yam
dyed, carded
Syd.
1.0
25
Woven fabric, n.e.s., yam
dyed, combed
Syd.
1.0
26
Woven fabric, other, carded
Syd.
1.0
27
Woven fabric, other, combed
Syd.
1.0
28
Pillowcases, carded
No.
1.084
29
Pillowcases, combed
No.
1. 084
30
Dish towels
No.
.348
31
Other towels
No.
.348
32
Handkerchiefs, whether or
not in the piece
Doz.
1.66
33
Table damask and manufac-
tures
Lb.
3. 17
34
Sheets, carded
No.
6.2
35
Sheets, combed
No.
6.2
36
Bedspreads and quilts
No.
6.9
37
Braided and woven elastics
Lb.
4.6
38
Fishing nets and fish netting
Lb.
4.6
39
Gloves and mittens
Doz. Prs.
3.527
40
Hose and half hose
Doz. Prs.
4.6
41
T-shirts, all white, knit, men's
and boys'
Doz.
7.234
42
T-shirts, other, knit
Doz.
7.234
43
Shirts, knit, other than T-
shirts and sweatshirts
Doz.
7.234
44
Sweaters and cardigans
Doz.
36.8
45
Shirts, dress, not knit, men's
and boys'
Doz.
22. 186
46
Shirts, sport, not knit, men's
and boys'
Doz.
24 457
47
Shirts, work, not knit, men's
and boys'
Doz.
22. 186
48
Raincoats, % length or longer,
not knit
Doz.
50.0
49
Other coats, not knit
Doz.
32.5
50
Trousers, slacks and shorts
(outer), not knit, men's and
boys'
Doz.
17. 797
51
Trousers, slacks and shorts
(outer), not knit, women's,
girls' and infants'
Doz.
17. 797
52
Blouses, not knit
Doz.
14 53
53
Dresses (including uniforms),
not knit
Doz.
45. 3
54
Playsuits, washsuits, sun-
suits, creepers, rompers,
etc., not knit, n.e.s.
Doz.
25.0
55
Dressing gowns, including
bathrobes, beach robes,
lounge robes, housecoats,
and dusters, not knit
Doz.
51.0
56
Undershirts, knit, men's and
boys'
Doz.
9.2
57
Briefs and undershorts, men's
and boys'
Doz.
11.25
58
Drawers, shorts and briefs,
knit, n.e.s.
Doz.
5.0
59
AH other underwear, not knit
Doz.
16.0
796
DEPAKTMENT OF STATE BULLETIN
60 Pajamas and other nightwear Doz. 51.96
61 Brassieres and other body- Doz. 4 75
supporting garments
62 Wearing apparel, knit, n.e.s. Lb. 4. 6
63 Wearing apparel, not knit, Lb. 4. 6
n.e.s.
64 All other cotton textiles Lb. 4. 6
Apparel items exported in sets shall be recorded
under separate categories of the component items.
First U.S. Letter
October 30, 1964
Sm: I refer to the Agreement of October 30, 1964
between the Governments of the United States and
Spain relating to trade in cotton textiles between Spain
and the United States.
It is the understanding of my Government that dur-
ing the period from October 1, 1964 through December
31, 1964 the Government of Spain will limit exports in
categories or groups of categories subject to specific
ceilings or group ceilings in that Agreement to amounts
equal to one-fourth of such ceilings. It is the further
understanding of my Government that any exports dur-
ing the period October 1-December 31 in excess of
one-fourth of such levels will be charged against the
appropriate ceilings established for 1965 by the Agree-
ment.
I should be grateful if you will confirm these under-
standings if they are acceptable to your Government.
Accept, Sir, the assurance of my high consideration.
G. Griffith Johnson
Assistant Secretary
Mr. Juan Luis Pan de Soraluce,
CoNDE DE San Roman,
Counselor for Economic Affairs,
Embassy of Spain.
Second U.S. Letter
October 30, 1964
Sir : I refer to the Agreement concerning trade in
cotton textiles between Spain and the United States
signed on October 30, 1964.
During the discussions preceding this Agreement, the
representatives of the Spanish Government expressed
their desire to export to the United States goods in the
yam categories in excess of the levels specified for such
exports in the Agreement. While the representatives
of the Government of the United States were imable to
accede to an increase in the level specified for yam in
the agreement, because of the current state of the
United States market for yarn, they were able to agree
to a one-time provision for the shipment of amounts of
yam in excess of the agreement levels.
Accordingly, exports from Spain during the period
October 1. 1964-March 31, 1965 in the yarn categories
shall be allowed for entry into the United States up to
380,000 pounds in excess of the levels established for
yarn by the Agreement and by our exchange of letters
of October 30, 1964, relating to trade during the period
October 1-December 31, 1904, without charging them
against such levels.
Moreover, the Government of the United States is
willing to consult in future years with regard to the
possibility of extending this special treatment for
exports of yam, taking into consideration the circum-
stances then prevailing in the yam market of the
United States and the export opportunities of the
Spanish manufacturers.
Accept, Sir, the assurance of my high consideration.
G. GRiFrrrH Johnson
Assistant Secretary
Mr. Juan Luis Pan de Soraluce,
CoNDE DE San Roman,
Counselor for Economic Affairs,
Emhassy of Spain.
Current Actions
MULTILATERAL
Automotive Traffic
Convention concerning customs facilities for touring.
Done at New York June 4. 1954. Entered into force
September 11, 19.57. TIAS 3879.
Accession deposited: Tanganyika and Zanzibar (with
reservation), June 22, 19&4.
Aviation
Convention for unification of certain rules relating
to international transportation by air and additional
protocol. Done at Warsaw October 12, 1929. En-
tered into force Febraary 13, 1933. 49 Stat. 3000.
Adherences deposited: Cuba (with reservation),
July 21, 1964 ; Senegal, June 19, 19^4.
Protocol to amend convention for unification of certain
rules relating to international carriage bv air signed
at Warsaw October 12, 1929 (49 Stat. 3000). Done
at The Hague September 28, 1955. Entered into
force August 1, 1963.'
Ratifications deposited: Brazil, June 16, 1904 ; Israel,
August 5, 19&4.
Adherence deposited: Senegal, June 19, 1964.
Convention on offenses and certain other acts com-
mitted on board aircraft. Done at Tokyo Septem-
ber 14. 1963.'
Siffnatures: Spain, July 27, 1964 ; Ireland, October 20,
19t>4.
Nortli Atlantic Treaty — Atomic Information
Agreement between the parties to the Xorth Atlantic
Treaty for cooperation regarding atomic information.
Done at Paris June 18, 1964.'
Notifications received that they are willing to te
bound by terms of the agreement: Belgium, No-
vember 13, 1964; United Kingdom, November 9,
1964.
' Not in force for the United States.
' Not in force.
NOVEMBER 30, 1964
797
Telecommunications
Partial revision of the radio regulations (Geneva, 1959)
with annex and additional protocol. Done at Geneva
November 8, 1963. Enters into force January 1, 1965.
TIAS 5603.
Notificatian of approval: South Africa and Territory
of South- West Africa, September 28, 1964.
Trade
Declaration on provisional accession of the Federal
People's Republic of Yugoslavia to the General Agree-
ment on Tariffs and Trade. Done at Geneva Novem-
ber 13. 1902. Entered into force April 27, 1963.
Signatures: Argentina, May 10, 1963; Austria, June
20, 1963 ; " Belgium, December 7, 1962 ; Brazil,
July 8, 1963; Canada, March 7, 1963; Ceylon,
May 21, 1963; Chile, November 21, 1962; Cuba,
October 4, 1963 ; Cyprus, August 6, 1963 ; Czeeho-
filovakia, April 18, 1963 ; Dahomey, November 25,
1963 ; Denmark, March 11, 1964 ; Finland, May 2,
1963; France, December 13, 1962; Ghana, Febru-
ary 15, 1963 ; Greece, April 4, 1963 ; India, Febru-
ary 21, 1963 ; Indonesia, December 13, 1963 ; Israel,
May 6, 1963 ; Italy, March 21, 1963 ; Japan, May 8,
1963; Kuwait, September 9, 1963; Luxembourg,
December 14, 1962 ; Madagascar, December 30,
1963; Netherlands, April 8, 1963; New Zealand,
December 4, 1963 ; Niger, February 17, 1964 ; Nor-
way, January 16, 1963 ; Pakistan, October 24, 1963 ;
Senegal, March 16, 1964 ; Southern Rhodesia, No-
vember 27, 1963 ; Sweden, September 2, 1963 ; Tan-
ganyika, July 1, 1963 ; Tunisia, October 21, 1963 ;
Turkey, April 24, 1963; United Arab Republic,
June 24, 1963; United Kingdom, May 2, 1963;
United States, October 22, 1964 ; Uruguay, May 13,
1963 ; Yugoslavia, November 15, 1962.
Ratifications deposited: Austria, March 16, 1964 ;
Yugoslavia, March 28, 1963.
Enters into force for the United States: November 21,
1964.
Declaration on provisional accession of Iceland to the
General Agreement on Tariffs and Trade. Done at
Geneva March 5, 1964. Entered into force April 19,
1964.
Acceptances deposited: Austria, May 28, 1964 ; ' Bra-
zil, June 12, 1964 ; Denmark, March 18, 1964 ; Fin-
land, May 8, 1964 ; Prance, May 26, 1964 ; Iceland,
March 20, 1964 ; Japan, April 13, 1964 ; New Zea-
land, June 16, 1964; Norway, May 6, 1964; Rho-
desia, Mav 4, 1964 ; Sweden, April 13, 1964 ; United
States, October 22, 1964.
Enters into force for the United States: November
21, 1964.
BILATERAL
India
Agreement amending and implementing air transport
agreement of February 3, 1956, and replacing ex-
change of notes of -same date (TIAS 3504). Effected
by exchange of notes at New Delhi October 26, 1964.
Entered into force October 26, 1964.
Jamaica
Agreement for the continuation of the cooperative me-
teorological program in Jamaica. Effected by ex-
change of notes at Kingston November 3, 1964.
Entered into force November 3, 1964.
Pliilippines
Amendment to the agreement of July 27, 1955, as
amended (TIAS 3316, 4515), for cooperation con-
cerning civil uses of atomic energy. Signed at Wash-
ington August 7, 1963.
Entered into force: November 4, 1964.
Portugal
Amendment to the agreement of July 21, 1955, as
amended (TIAS 3317. 3S99, 4519, 5111), for cooper-
ation concerning civil uses of atomic energy. Signed
at Washington August 11, 1964.
Entered into force: November 6, 1964.
Spain
Agreement concerning trade in cotton textiles. Effected
by exchange of notes at Washington October 30, 1964.
Entered into force October 30, 1964.
Yugoslavia
Agricultural commodities agreement under title IV of
the Agricultural Trade Development and Assistance
Act. as amended, with exchange of notes. Signed at
Belgrade October 28, 1964. Entered into force Octo-
ber 28, 1964.
Agricultural commodities agreement under title IV of
the Agricultural Trade Development and Assistance
Act, as amended, with exchange of notes. Signed at
Belgrade October 29, 1964. Entered into force Octo-
ber 29, 1964.
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U.S. Participation in the UN — Report by the President
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U.S. Balance of FajTtients — Questions and Answers.
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change of notes — Signed at BogotA April 27 and May 13.
1964. Entered Into force May 13, 1964. TIAS 5601.
7 pp. 100.
798
DEPABTJIENT OF STATE BULLETIN
INDEX November 30, 196 J^ Vol. LI, No. 1327
American Republics. Social Justice in the United
States and in the Hemisphere (Mann) . . . 775
Atomic Energy. The International Atom (Sea-
borg) 779
China. Secretary Discusses Mainland China in
Television Interview (Kalb, Rusk) .... 771
Disarmament. Secretary Discusses Mainland
China in Television Interview (Kalb, Rusk) . 771
Economic AGfairs
Trade and the Atlantic Partnership (Rusk) . . 766
U.S. and Spain Conclude Cotton Textile Agree-
ment (agreement and related notes) .... 794
World Bank Reports Net Income of $33 Million
in First Quarter 790
Europe
Germany and the Atlantic Partnership (Ball) . 773
Trade and the Atlantic Partnership (Rusk) . . 766
Germany. Germany and the Atlantic Partner-
ship (Ball) 773
Human Rights
International Human Rights Year (Franklin H.
Williams) 787
Social Justice in the United States and in the
Hemisphere (Mann) 775
International Organizations and Conferences
The International Atom (Seaborg) 779
World Bank Reports Net Income of $33 Million
in First Quarter 790
Military Affairs. Germany and the Atlantic
Partnership (Ball) 773
North Atlantic Treaty Organization. Germany
and the Atlantic Partnership (Ball) .... 773
Presidential Documents. United States and
U.S.S.R. Agree To Cooperate in Weather
Matters 791
Publications. Recent Releases 798
Science. United States and U.S.S.R. Agree To
Cooperate in Weather Matters (Johnson, letter
to Secretary of Commerce, and memorandum
of understanding and protocol) 791
Spain. U.S. and Spain Conclude Cotton Textile
Agreement (agreement and related notes) . . 794
Treaty Information
Current Actions 797
United States and U.S.S.R. Agree To Cooperate
in Weather Matters (Johnson, letter to Secre-
tary of Commerce, and memorandum of under-
standing and protocol) 791
U.S. and Spain Conclude Cotton Textile Agree-
ment (agreement and related notes) .... 794
U.S.S.R. United States and U.S.S.R. Agree To
Cooperate in Weather Matters (Johnson, letter
to Secretary of Commerce, and memorandum
of understanding and protocol) 791
United Nations
Current U.N. Documents . . . ^ 790
International Human Rights Tear (Franklin H.
Williams) . 787
Supplementary List of Items Proposed for U.N.
Agenda 789
name Index
Ball, George W . 773
Johnson, President 791
Kalb, Marvin 771
Mann, Thomas 0 775
Rusk, Secretary 766,771
Seaborg, Glenn T 779
Williams, Franklin H 787
Check List of Department of State
Press Releases: November 9-15
Press releases may be obtained from the Office
of News, Department of State, Washington, D.C.,
20520.
Releases issued prior to November 9 which ap-
pear in this issue of the Bulletin are Nos. 474
of October 30, and 478 of November 4.
Snbject
U.S. participation in international
conferences.
Mann : "Population Growth and
the Alliance for Progress."
Educational exchange agreement
with Yugoslavia.
Special awards ceremony.
Documents on German Foreign
Policy (rewrite).
Rusk : interview on CBS, "The U.S.
and the Two Chinas."
Consultations concluded with Ja-
pan on king crab fishing.
*Not printed.
tHeld for a later issue of the Buixetin.
No.
Da<e
*4S2
11/9
t4S3
11/9
1484
11/9
*485
t486
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11/10
487
11/11
t488
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STATE
BULLETIN
r-;._1
Yol. LI, No. 1328
December 7, 196J^
THE ROLE OF INTERNATIONAL LAW IN WORLD AFFAIRS
Remarks by /Secreta7y Rusk 802
POPULATION GROWTH AND THE ALLIANCE FOR PROGRESS
by Assistant Secretary Mann 807
MAJOR OBJECTIVES OF THE FOREIGN AID PROGRAM
by David E. Bell 821
THE PROMISE OF SCIENCE AND TECHNOLOGY
by Ambassador Adlai E. Stevenson 810
EAST- WEST TRADE : THE IRON CURTAIN EIGHTEEN YEARS LATER
by Robert B. Wright 815
For index see inside back cover
The Role of International Law in World Affairs
Following are remarks made ty Secretary
Rusk at the Department of State on November
llf. on the occasion of the presentation of the
Manley 0. Hudson Medal of the American Soci-
ety of International Law to Judge Philip C.
Jessup of the International Court of Justice.
OPENING REMARKS
Ladies and gentlemen : As honorary president
of the American Society of International Law,
it's a great delight for me to be able to be here
today as the society and its president [Branson
MacChesney] honor Judge Pliilip Jessup. This
is a matter not only of great professional satis-
faction but of personal satisfaction. Philip
Jessup and I are friends with a fi-iendship that
is only acquired by occupying many diplomatic
foxholes together, and over many years. We
honor him, and we honor the Court.
INTRODUCTION OF JUDGE JESSUP
Press release 493 dated November 17 ; as-delivered text
In introducing Judge Jessup to respond on
this occasion, I take note of the fact that the
three distinguished international lawyers who
have won this great award have served on the
World Court.
It's fashionable, when discussing interna-
tional adjudication, to stress its deficiencies —
the lack of sanctions, the so-called primitive
state of international law, and the lack of wil-
lingness to entrust political disputes to judicial
settlement, to name but a few. But these
alleged deficiencies have not liindered the devel-
opment of international adjudication as much
as many suppose, for international courts and
arbitral tribunals have managed to resolve a
very considerable number of contentious dis-
putes between nations.
These disputes have not resolved the great
and dangerous struggles of our day. These
struggles are probably not well suited for the
processes of judicial settlement. But those who
seek a world in which all disputes are entrusted
to courts for settlement seek more than we can
reasonably hope to attain in today's world. But
there are disputes — important and thorny, in-
capable of settlement by the states concerned —
which the International Court of Justice has
resolved. In earlier times these disputes might
not have been resolved peacefully. The lack of
sanctions, however, has not prevented a com-
DEPARTMENT OF STATE BULLETIN VOL. LI, NO. 1328 PUBLICATION 7783 DECEMBER 7. 1964
Tbe Department of State Bulletin, a
weekly publication Issued by the Office
of Media Services, Bureau of Public Af-
fairs, provides the public and Interested
agencies of tbe Government with Infor-
mation on developments In the field of
forelini relations and on the work of the
Department of State and the Porelfjn
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 Depart-
ment, as well as special articles on vari-
ous phases of International affairs and
the functions of the Department. Infor-
mation Is included concerning treaties
and International agreements to which
the United States Is or may become a
party and treaties of general Interna-
tional Interest.
Publications of the Department. United
Nations documents, and legislative mate-
rial In the field of International relations
are listed currently.
The Bulletin la for sale by the Super-
intendent of Documents, U.S. Govern-
ment Printing Office, Washington. DC,
20402. Pbicb : 52 Issues, domestic $10,
foreign $15 ; single copy 30 cents.
Use of funds for printing of this pub-
lication approved by the Director of the
Bureau of the Budget (January 19,
1961).
NOTB : Contents of this publication are
not copyrighted and Items contained
herein may be reprinted. Citation of the
Department of State Bulletin as the
source will be appreciated. The Bulletin
Is Indexed In the Readers' Guide to
Periodical Literature.
802
DEPARTMENT OP STATE BULLETIN
*
i
piiance with the Court's rulings. The border
dispute between Honduras and Nicaragua is one
example. More recently, the Court disposed of
a long- festering dispute between Cambodia and
Thailand.
But nevertheless, it is widely agreed, and
rightly so, that the number of legal disputes
submitted to international adjudication is too
small. There are no doubt many reasons for
this. The United States would like to see more
nations submit to the compulsory jurisdiction
of the Court. In this connection, I should add
that the present administration, like its prede-
cessors, would like also to see the Connally
amendment ^ repealed. Finally, we regret the
reluctance of U.N. members to accord the Inter-
national Court of Justice compulsory jurisdic-
tion to settle disputes arising from treaties
concluded under the auspices of the United
Nations.
There is one area in which international ad-
judication has proved especially valuable and
effective. I refer to the role of the International
Court of Justice in rendering advisory opinions.
There has developed, though not fully enough,
a tradition of referring constitutional issues
arising under the charters of international or-
ganizations to the Court for adjudication. And
more important, there has arisen also a tradition
of accepting the Court's opinions as law and
acting upon them.
The Court has rendered 12 advisory opin-
ions— 10 requested by the General Assembly, 1
by the UNESCO Executive Board, and 1 by
the Assembly of IMCO [International Maritime
Consultative Organization]. These opinions
have been accepted by the organs which sought
them and have been given effect. They've had
a marked impact on the constitutional develop-
ment of international institutions, particularly
on the most important institution, the United
Nations.
The advisory opinion in the Reparations case,
for example, confirmed the organization's ca-
' For background, see Bulletin of Sept. 14, 1959, p.
381.
pacity to maintain an international claim
against both member and nonmember states for
injuries suffered by its agent. The case stands
for the proposition that the founding fathers
conferred upon the United Nations a legal status
in the world community. And this simple
proposition has been important.
The Court has performed a similar service in
adjusting relationships between the component
parts of the organization itself. The advisory
opinion concerning the awards made by the U.N.
Administrative Tribimal is a case in point, and
others are the advisory opinions regarding the
admission of new members.
It should not be surprising that the Court's
power to issue advisoiy opinions has been so
important — more important, perhaps, than its
power to decide contentious disputes. A pri-
mary fact of postwar international life has been
the growth and development of international
machinery and institutions for coping with the
issues of the day. Wlien it renders advisory
opinions, the Court is functioning as an integral
part of this machinery. Particularly when its
advisory opinions concern the United Nations —
the organization's relation to the world com-
munity and its members, and the allocation of
power between its component parts — is the
Court participating in the ongoing institutional
processes which characterize international life
today. In this role, the Court has a clearly
defined job and is uniquely suited to perform it.
The issues tend to be framed more cogently, and
the standards for solving them developed more
fully, than when the issues are settled without
benefit of the Court's participation.
I would hope that the effectiveness of the
Court would encourage increasing resort to its
procedures and that in this manner the role of
law in international life would be enhanced.
This, in turn, would give further effectiveness
to the role of those great international lawyers
like Judge Jessup who have labored so hard to
bring a little reason into the turbulence of world
affairs.
It is a great privilege to introduce Judge
Jessup to respond on this occasion.
DECEMBER 7, 1964
803
President Reaffirms U.S. Support
for Alliance for Progress
Statement by President Johnson
White House press release (Austin, Tex.) dated November 13
The Inter- American Committee on the Alli-
ance for Progress — called CIAP from the
Spanish initials — has completed the first cycle
of its work.i In the year since it was created it
has reviewed the development efforts of each of
the countries of Latin America under the alli-
ance. Its report^ measures both the internal
resources and efforts and the foreign assistance
which, together, must support these develop-
ment efforts.
This report will be forwarded to the Lima
meeting of the Inter-American Economic and
Social Council, which begins on November 30.
CIAP's report, and the meetings of the experts
and ministerial representatives of all the nations
of the inter- American system at Lima, suggests
an appropriate opportunity for me to renew
our support of the Alliance for Progress.
Firm and continued support for the principles
of the Charter of Punta del Este ' is the central
theme of all we do in the hemisphere. The
United States considers itself a partner with the
peoples of Latin America. Theirs is a struggle
to create a new future, a better way of life, in
which each human being of the hemisphere may
reach his own full potential. We are proud to
say that we will continue to play our part by
support and participation in the work of the
CIAP.
We are encouraged in this by developments in
the hemisphere during the last year.
All the problems of the Alliance for Progress
have not, of course, been solved in the rapid
unfolding of events in 1964. Obstacles are still
before us — obstacles which all nations of the
hemisphere must bend their efforts to overcome.
" For remarks made by President Johnson on Oct. 27
following a meetinp; at the White House with members
of CIAP, see Bulletin of Nov. 16, 19G4, p. 705.
' Copies of the CIAP report will be available at a
later date from the office of the Assistant Secretary for
Economic and Social Affairs of the Organization of
American States, Pan American Union, Washington,
D.C.
'For text, see Bulletin of Sept. 11, mr.l, p. 40;}.
There must be peaceful changes in the coun-
tryside in order to bring full social justice to the
poor who work the lands, to increase the produc-
tion of food and fiber to feed the rapidly
growing population of Latin America, and ex-
pand markets for the burgeoning industries of
the hemisphere.
There must be improved revenue systems in
the administration of taxes. Nations afflicted by
the disease of inflation must carry forward their
programs to bring stability to their currencies.
We must continue and improve planning
efforts so that scarce public resources available
for investment and development can be directed
to the needs of highest priority and in order
that the changes of national policy essential to
growth be identified and instituted. The efforts
and will of all the peoples of America in these
and other fields — labor, health, housing and
urban planning, cooperatives, commimity de-
velopment, national budgeting, water and
sewerage, education, transportation, public
administration — can build the new hemisphere
toward which we all aspire.
We must release the energies and resources
of the private sector for growth through co-
operatives, through democratic, free trade
imions, through community organizations and
citizen groups and private business and in-
dustry. Development and growth are not a
matter solely of governments. The energies of
all the people must contribute.
There must be a full effort to expand the
range of economic opportimities within Latin
America by creating and strengthening national
markets in each nation and by further progress
under the Central American Common Market
and the Latin America Free Trade Area. At
the same time, all the nations of the free-world
trading community, including the United States,
must make special efforts to improve the condi-
tions of international trade.
There is a quickened interest by the nations
of Europe, by Japan and by Canada, in Latin
America. We look forward to a gi'eater and
more closely coordinated participation by all
members of the industrialized free world in the
economic, social, and political development
efforts of Latin America.
I congratulate the efforts of Dr. Carlos Sanz
de Santamaria and the members of CIAP. I
804
DEPAKTMENT OF STATE BULLETIN
have on a number of occasions met with him
and, from time to time, with the ambassadors of
our alliance partner nations and the members
of CIAP. As all oiBcials of our Government
know, and as I have said often in the past, I
regard the work of the CIAP as deserving of
our sincere support.
President- Elect of Mexico Visits
President Johnson at LBJ Ranch
President-elect Gustavo Diaz Ordaz of
Mexico and Seiiora Diaz Ordaz were guests of
President and Mrs. Johnson at the LBJ Ranch,
Johnson City^ Tex.^ on November 12. Following
are remarJcs made hy President Johnson and
President-elect Diaz Ordaz at a barbecue at the
ranch.
White House press release (Austin, Tex.) dated November 12
PRESIDENT JOHNSON
We welcome here today to this peaceful Texas
hill country President-elect Diaz Ordaz and his
lovely, gracious wife.
Mr. President, I have not discussed this matter
with you, but as one who has just finished a
campaign and will be installed formally in my
office 1 month and 20 days after your inaugura-
tion, I can only say that it is much more cheering
here after a campaign than before one. Mr.
President, I am pleased to tell you that I re-
ceived no support from anyone that was greater,
or perhaps more unanimous, with warmth than
that given me by the many thousands of Ameri-
cans of Mexican ancestry who live in the United
States of America ; and so today, at the end of
the long, long trail, after more than 44 States,
Mr. President, I speak the beautiful sound of
the words I heard so often throughout America,
"Mr. President, viva Mexico."
It is part of the feeling of kinship between
the great Republic of Mexico and the United
States that the two Presidents should meet and
should talk and should counsel and should be
friends. Our border is long, and it is friendly.
We have no armed men on either side patrolling
the river. So it is our tradition to be neighbors.
Mr. President, you and I share common
purposes and similar objectives for both of our
countries. Our countries are enjoying today
very prosperous times. We want them to keep
that way. Both our countries look to the other
country for tourists and for travel, and we want
to keep it that way. Trade between our two
countries is at an all-time high level — more than
$114 billion in 1963. But you and I are meeting
here to discuss ways and means to increase that
trade, and we have already begmi the explora-
tions this morning. But you and I are never
going to be satisfied with the course of either
of our countries as long as there is a single man
who wants to work and cannot find work, so long
as there is a single child without a school or a
teacher, and so long as there is a single family
without a home.
So we are meeting here to talk together and
to work together and to take up arms together
against the ancient enemies of mankind —
disease and poverty and hunger and ignorance.
So, Mr. President, in all that you do and in
all tliat I do we try to preserve the freedom of
our people, to protect the treasures of our
society, and to always enhance the dignity of our
people. In both of our countries we seek to give
everyone an opportunity to achieve his highest
aspirations. We have found in your country
and in mine that if we give our people the in-
centive to invest their energy and their income,
we can achieve much higher rates of economic
growth.
Mr. President, we both know that it is not
our vast resources or even our geography or
even our arms that have made our nations great.
The thing that has made them great has been
the genius of our people and the political and,
most importantly, the economic systems that our
people have created. Americans have invested
in Mexico, and we think we have contributed
greatly to Mexico's growth. Many billions have
been invested in this country, the United States,
by wise and by good and by thrifty and honor-
able people from many other nations in this
world in which we live, and both of our coiuitries
have been the beneficiaries.
As Mexico becomes stronger and wealthier,
Mexico will be able to help others, just as Mexico
is helping others today in Central America.
DECEMBER 7, 1964
805
For, Mr. President, the alliance is not just gov-
ernments; it is the will and the desire and the
noble ambition of people — people who give op-
portunity and incentive, and they can make this
Western Hemisphere and, indeed, they can
make the entire world a better, a healthier, a
more peaceful, and a much safer place to live in.
We have problems. We are here to discuss
them. And in the days ahead we will resolve
them in peace, with reason, with justice to each
other. So, Mr. President, it gives me and Mrs.
Jolmson the greatest of pleasure to welcome you
here today and to welcome your lovely, gracious
wife. You make us very proud to be in our
home and on our land and to have you in our
presence. As they say it so beautifully in your
land, your country, where 30 years ago my lady
and I spent our honeymoon, we say to you today,
Mi casa es su casa.
Ladies and gentlemen, the President-elect of
Mexico, Diaz Ordaz.
PRESIDENT-ELECT DIAZ ORDAZ
Unofficial translation
Mr. President, Mrs. Johnson, officials and
friends : First of all, I want to express to you
my deep satisfaction in being able to visit you
as a representative of my people and receive the
overwhelming hospitality that has been given
to me by the Jolinson family. I am very happy
to be here and spend these hours with you in
this beautiful place, and I am especially grate-
ful to President Jolinson and the distinguished
First Lady because they did not issue to me a
cordial invitation to visit them in their official
residence but, rather, were good enough to in-
vite me so that we could be together in the sweet
intiinacy of their home, the place where they
come to rest.
This, I want you to know, is a tremendous
honor both for Mrs. Diaz Ordaz and myself,
and something for which I am profoundly
grateful. This visit of mine to you has a specific
purpose, which is to establish a pereonal knowl-
edge between President Johnson and myself.
We are two men who have the greatest respon-
sibilities entrusted to us by our respective
people. It is vitally important that President
Jolmson and I, as heads of our two respective
governments, be able to know each other per-
sonally so we can work together in the future
to solve any existing problems and any possible
problem that might arise in the relations be-
tween our two countries.
So I am here to seal a friendship with a warm
handshake with President Johnson from me and
the Mexican people, and to him and through
him to the American people. I hope and I
know that we will be able to work together with
reciprocal respect and joint cooperation to main-
tain the principles that have inspired our two
peoples.
Our own history is not a brilliant one in that
we have obtained spectacular victories, but it is
a history that we cherish because throughout
the years, at the cost of great sacrifice and great
effort, we have won our independence, we have
won the freedom of our people, and we are work-
ing to increase the prosperity of the people of
Mexico. I can assure you that in the future
all the men and women of Mexico are going to
redouble their efforts to maintain our freedoms,
to maintain our independence, and to increase
the well-being of all of our citizens.
It is a pleasure for me to come here to restate
and reiterate the bonds of friendship that imite
our great people. It is sometimes easy to be
friends from a distance, but it is also very diffi-
cult, sometimes, to be friends with your neigh-
bors, and this is a friendship that we have
achieved. We have a long border, a very long
border, which does not divide us but, rather,
brings us together, and we have come here to-
day, crossing this border, in order to study some
of the problems that have come up and to be
able to work them out together.
Mexico and the United States have given an
example in just the past few weeks of how one
of the most powerful nations in the histoiy of
the world has yielded to justice with a country
which economically and militarily is very weak
by solving this very old problem on the basis
of fairness and reason and justice.^ This could
well be a lesson that we could give to people
throughout the world who want to be friends,
' For text of an address mndo by President .Johnson
at El Paso, Tex., on Sept. 25, 1964, during the unveiling
of a marker indicating the new boundary of the Rio
Grande River In the Chamizal tract, see Bulletin of
Oct. 19, 1964, p. 545.
806
DEPARTMENT OP STATE BULLETIN
one with another. This is what we have come
here to reinforce and to strengthen, tlie example
that we have given in the sohition of this prob-
lem. Our relationships have been friendly and
warm for many years and have grown to this
state in spite of the adverse conditions that have
existed at one time or another. But we have
now found bonds of friendship and of closeness
that unite us and have become very great friends
and neighbors with the people of the United
States.
As I was saying, we have shown to people
throughout the world how differences can be
eliminated through mutual respect, through the
sharing of common ideals, through good faith,
and with a spirit of justice. I say to you, Mr.
President, and through you to the people of
the United States, that I come extending the
hand of friendship from the Mexican people
that I am honored to represent during the next
presidential period. I want to come to you and
speak to you with the same frankness and fair-
ness and nobility of spirit that has always char-
acterized tlie exchanges between our two
peoples, and I know, as you said a while ago,
that neither you nor I nor our people will rest
as long as there is a family in this hemisphere
that does not have a roof over its head or bread
to eat, as long as there are any children that
have no schools to attend, as long as there are
any ill people that have no medical attention
to take care of their ills.
We will continue to work together on the
basis of this personal contact we are making
here in these hours that we will be together,
on the basis of reciprocal respect, one for an-
other, to figlit very strongly and energetically
together to keep the peace of the world, to fight
with equal energy and strength to maintain all
of the freedoms of our respective peoples. That
relationship is going to be based on democracy
which, in turn, is going to be based on all of
our freedoms. Thank you very much for your
kindness.
Population Growth and the Alliance for Progress
hy Thomas 0. Mann
Assistant Secretary for Inter- American Affairs ^
In August of 1961 the nations represented at
Pmita del Este, Uruguay, united in the most
noble of all alliances dedicated to one overriduig
purpose: the improvement of the condition of
human life.^
In the few short years following the forma-
tion of this Alliance for Progress, the accom-
plishments of our hemisphere have been notable.
Possibly one of our most significant achieve-
ments has been an increased comprehension
' Address made before the Planned Parenthood-
World Population annual banquet at New York, N.Y.,
on Nov. 9 (press release 483).
' For background and text of the Charter of Punta
del Este establishing the Alliance for Progress, see
Bulletin of Sept. 11, 1961, p. 459.
throughout the hemisphere of our complex
problems in all of their aspects and a better
mobilization of our efforts and talents in the
search for their solutions.
There is a growing realization that one of the
important factors affecting our efforts to im-
prove the conditions of human life throughout
the world — to increase each individual's in-
come— is the rapid expansion of population.
Eeliable demographers now estimate that in this
year the population of the world will increase
by some 63 million persons — each bom with the
same right to food, shelter, education, and em-
ployment, and with the other social and eco-
nomic needs that are imsatisfied in so much of
the world today.
DECEMBER 7, 1964
807
Nearly every part of the world is affected.
Here in the United States, for example, our
population growth rate is said to be at 1.6 per-
cent this year. Because our population has been
increasing for some time, more than a million
additional people will be looking for jobs this
year in our country alone.
In Latin America the demographers say that
the annual population increase is somewhere
near 3 percent per annum. It, is predicted that,
if this average is maintained, the population
of the area, which now stands at about 200 mil-
lion, will reach about 600 million in 35 years.
To use a different span of time, the population
of Latin America will have increased in this
century from some 69 millions to some 600
millions.
This arithmetic has a direct and important
bearing on the ability of the American states to
achieve the Alliance for Progress goal that the
increase in the income of every man, woman,
and child in the hemisphere "should be not less
than 2.5 percent per capita per year."
With high rates of population growth, it is
obvious that the only way the alliance goal can
be achieved is with commensurate high rates of
economic growth. This means that production
must grow at a rate of 51/2 percent to 6 percent
a year in Latin America. Unless it does, we
cannot achieve social justice. But the problem
is even more complex than that. Latin America
is a developing area. The composition of the
population is quite different from that in the
United States. For example, about one- fourth
of the population is less than 10 years old. A
large portion of the population therefore con-
tributes little to production; rather it is es-
sentially a consumer. This means that the
working force has a heavier burden to bear.
Because a higher percentage of production
must be consumed on the necessities of life,
there is less available to invest in farms and
factories that are needed to increase production.
This is truly one of the dilemmas of the
alliance: How can we best achieve adequate
levels of production so essential to social justice
and political stability and at the same time meet
the desire of the people that production be dis-
tributed immediately so that it can be con-
sumed ?
Dimensions of the Job Ahead
Allow me to illustrate the dimensions of the
job ahead of us in this hemisphere:
In 1960 a United Nations study estimated
that the existing housing deficit in Latin
America was about 40 million units. If the
population trebles in the next 35 years, this fig-
ure will obviously also grow geometrically.
Another illustration : We are having difficul-
ties today overcoming a very high illiteracy
rate. In the next decades we face an even more
difficult task in building the classrooms and
training the teachers who will be needed to care
for an additional 400 million people.
Again : If some cities in Latin America are
currently growing in population at the rate of
14 percent per annum, obviously we shall have
even a larger task of providing the transporta-
tion, streets, electricity, sewerage, market facili-
ties, and all the other things that the urban
dweller needs.
Another factor is the relationship between
population growth and the availability of nat-
ural resources. It is a fact that water supplies
are becoming scarce in some areas not only for
irrigation in the production of food and fiber
but also for human consumption. The lack of
arable land is today a problem, with some coun-
tries having over 300 people per square mile.
Of more immediate concern is the urgent
need to increase the production of food. I re-
cently saw figures which indicate that the an-
nual production of grain in Central and South
America has remained virtually the same over
the past 6 years. The failure to increase food
production in the face of i-apid population
growth has required several countries to import
such basic items as corn and rice, spending
scarce foreign exchange earnings which are
badly needed to finance industrialization pro-
grams and infrastructure. Despite costly im-
ports, insufficient production has resulted in a
decline in individual consumption of grain in
recent years.
In speaking of the dimensions of the problem
I do not wish to predict, like Malthus, that man
is outgrowing his environment. Whetlier or
not mankind will find it possible eventually to
accommodate to soaring populations I do not
pretend to know. I only make this suggestion:
808
DKrARTMKNT Or STATK nULLETIN"
In the decades immediately ahead of us, the
rate of population growth will have a direct
effect on the aspirations of peoples in this hemi-
sphere for a rapid improvement in their stand-
ards of living. To the extent that these aspira-
tions are frustrated, additional strains and
stresses are placed on the political, economic,
and social fabrics of the hemisphere.
Public Discussion of Population Problem
Public statements by public officials of the
relevance of the population increase to the
political, social, and economic problems of our
day have, in the past, been avoided.
The reasons for reticence were understand-
able: Neither yesterday nor today do people
wisli to offend others by statements which might
be misinterpreted as contrary to their ethical,
moral, or religious convictions.
Today nearly everyone agrees that the study
of the population problem is desirable. And,
in consequence, progress is now being made in
broadening our imderstanding of the problem
in all of its aspects. As Pope Paul VI recently
said:
The question is being subjected to study, as wide
and profound as possible, as grave and honest as it
must be on a subject of such importance. It is under
study which, we may say, we hope will be concluded
with the cooperation of many and outstanding
experts.
Discussions on the topic have been held by the
National Council of the Churches of Christ and
by the Rabbinical Assembly. Universities, pro-
fessional associations, and foundations have
held symposiums and devoted funds and per-
sonnel to the questions of population.
The effect of this public discussion has been
salutary in focusing the attention of govern-
ments and the public on the implications of
population growth. About 1 year ago the For-
eign Assistance Act under which we administer
our part of the alliance was amended to provide
that: "Fu7ids made available to carry out this
section [Chapter II, Title V — Development
Eesearch] may be used to conduct research into
the problems of population growth."
Under the terms of this legislation, the Latin
American bureaus of the Department of State
and Agency for International Development
are giving the question of population growth
careful and serious consideration. All U.S.
missions in the hemisphere have been advised
of the importance attached to the population
issue, and we are consulting with foreign gov-
ernments and with responsible private, church,
and educational institutions.
We have provided funds for the Latin Amer-
ican Science Board of the National Academy
of Sciences, which has organized a committee
on population composed of eminent sociologists,
economists, social psychologists, demographers,
political scientists, and physicians. This com-
mittee serves to assist our staff in its work
through consultation and advice.
In addition, we are considering requests from
several Latin American organizations interested
in the problem of financing demographic train-
ing and research in such crucial matters as
attitudes about family size and family respon-
sibility. We will be working with several
organizations and universities here in the
United States which will be helping us to study
and define the problem more clearly.
Solution Rests With Each Country
But I should add that the more we have
reflected upon the issue of population growth,
and its effect on the economic and social devel-
opment goals of the Alliance for Progress, the
more we are impressed with its complexity.
The issue is not simply one of money. It is,
at least in Latin America, rather a problem of
innumerable facets: the extent to which na-
tional planning agencies are equipped and pre-
pared to study the demography of their own
countries; the extent to which ministries of edu-
cation can program their long-term investments
in the light of population growth projections;
the extent to which ministries of health are
attentive to the matter ; the attitudes and aspi-
rations of the campesinos, the slum dwellers, the
middle class; the extent to which the religious,
civic, and community groups of the nation are
involved; and, beyond all else, the desires and
the hopes and the decisions of individuals
and families in whose hands rests the final
responsibility.
In short, though our role can be a significant
one, the decisions must be made by each country.
DECEMBER 7, 1964
809
We can work with — and we are prepared to
work with — institutions and groups both in the
United States and in Latin America. We can
offer a helping hand in training and research in
demography and the exchange of information
to government institutions, church interests, and
private organizations. But as we do this, we
are fully aware that much will depend on the
private initiative of the organizations in this
hemisphere, including those which are repre-
sented here tonight.
I venture to express the hope that out of all
the research, the training of demographers, the
exchange of information, and the careful exam-
ination of the ethical, moral, and religious
aspects of population growth will come a clearer
understanding of its relationsliip to social, eco-
nomic, and political progress in this hemisphere.
And I venture the additional hope that from
such a deeper understanding will evolve a con-
sensus of the peoples of the continent about how
it can be reconciled with our ideals of dignity
and a fuller life for every person.
The Promise of Science and Technology
hy Adlai E. Stevenson
U.S. Representative to the United Nations ^
I am wondering how I ever had the temerity
to accept this invitation. Here I am, sur-
rounded with distinguished scientists — and I
know nothing about science; surrounded by
great industrialists and businessmen — and I've
been in foreign affairs so long I've all but for-
gotten what makes the world's wheels turn;
surrounded by intellectuals — and my only claim
to membership m that group rests on the
columnists' conclusion that if one's sentences
are moderately grammatical he must be an
"intellectual."
I suppose the only explanation for my dis-
comfort is bravado or, perhaps, a hope that
someone might think I really belong in such
company as this.
I'm reminded of the callow new member of
the House of Commons who asked Disraeli if
he should participate actively in the debates.
And, after a quick appraisal, the Prime Minister
replied : "No, I think not; it would be better for
' Address made before the Xerox Corporation Sym-
posium at Rochester, N.Y., on Nov. 12 (U.S./U.N. press
release 4466).
people to wonder why you didn't speak rather
than why you did."
But I can take some comfort from the thought
that being a diplomat may excuse me from being
an authority on science and technology. More-
over, I don't even have to worry that my col-
leagues and I will be replaced by automation.
And I also found some satisfaction in re-
reading the other day some predictions for the
future published in 1937. President Eoosevelt
asked a committee of leading scientists and engi-
neers to prepare a forecast of probable inven-
tions and technological developments over the
next quarter century. At the time it seemed to
present dazzling and daring prospects. But
reading it again today, one is struck far less
by what it did predict than by what it didn't.
And I find myself on a par with the greatest
scientific minds of the time — for I, too, failed
to foresee nuclear energy, antibiotics, radar, the
electronic computer, and rocketr3^
But I suppose I must speak, and you must
listen. I pray we shall both finish our work at
about the same time.
810
DEPARTMENT OF STATE BULLETIN
At the end of the last century a French philos-
opher said: "Science has promised us truth —
an understanding of such relationships as our
minds can grasp ; it has never promised us either
peace or happiness."
But today it does.
Yesterday, most of mankind could look for-
ward only to a life that would be "nasty, brutish
and short," on the verge of privation in good
years, starving when the harvests failed. Now
wheat pours out of our ears. We swim in milk.
We are threatened with vegetable and fruit sur-
pluses and even, in some happy years, wine gluts
as well. Water, man's precious resource, will be
captured from the oceans by desalinization ; nu-
clear power promises unlimited energy; the
rocket, unlimited speed; electronics, unlimited
teclmical control. All the old locks of scarcity
have been sprung, the prisons flung open. From
the first stone tool to the cell which snaps a
camera shutter on the far side of the moon, the
stride of man's abundance is all but unimagin-
able— and yet it is here.
And what can still be foreseen by scientists
humbles me. In your field, communications, for
example, live television may soon be common-
place all over the world. We may use satellites
for transmission of the mail. David Sarnoff
goes further. In our grandchildren's world, he
assures us, it will be possible to communicate
with anyone, anywhere, at any time, by voice,
sight, or written message, separately or as a
combination of all three. Ultrahigh and micro-
wave radio frequencies and laser beams can pro-
vide billions of channels so that each person in
the world can have his own, much as he can now
have his own telephone number.
The international implications of such instant
transmittal of information are staggering — and
the possibilities for wrong numbers are even
more staggering.
Opportunities of Modern Science and Teciinology
Against this background of vast wealth and
steady growth, let us throw off some of the anxi-
eties which have shadowed our thinlcing about
the vast opportunities and responsibilities this
wealth creates. There is less talk these days —
even during that strange interlude we called a
presidential campaign — about "spending our-
selves into bankruptcy," or "inflation hurrying
us to ruin," or "the menace of growing Federal
debt" — which, incidentally, has actually fallen
in proportion to national income.
But we still talk of the difficult choices be-
tween public and private expenditure. We still
hear the question raised of this or that pro-
gram— for housing, for urban renewal, for edu-
cation— whether we can afford it or whether it
may not "overstrain" our capacity. These ques-
tions, I believe, are valid in the short run — while
we train new skills (or install new computers)
and build new plants. But this science and
technology which we acclaim today is making
these questions irrelevant in the longer run be-
cause our economy can grow to meet each new
charge made upon it. It will stagnate only if
we don't ask enough.
This is the basic miracle of modem tech-
nology. This is why it is in a real sense a magic
wand which gives us what we desire. Don't let
us miss the miracle by underestimating this fab-
ulous new tool. We can have what we want.
This is the astonishing fact of the modem scien-
tific and teclinological economy. This is the
triumph we hail today. This is the new instru-
ment of human betterment that is at our hand if
we are ready to take it up.
Interdependence of Public and Private Needs
If we are to do so effectively, two things, I
suggest, are necessary. The first is to recognize
that, in our modem, highly sophisticated, highly
productive market economy, stability and
growth depend upon partnership between man-
agement, labor, and government.
Today our sophisticated fiscal management
allows government to gear its expenditures and
its taxation to the general movements of the
economy and to increase the smoothness and
reliability of expansion. A practical public-
private partnership is a necessity and has
become a fact.
Or take the question of short-term overload-
ing of demand — in other words, inflation.
Throughout the Atlantic world, leaders in the
modem market economies recognize that the
biggest inflationary pressure — not the only pres-
sure, but the biggest — comes from the wage-
cost push — wages rising more rapidly than
DECEMBER 7, 196 4
811
productivity and pushing too much demand into
the economy for existing supply. There is no
way of countering this risk save a genuine
understanding and partnership between govern-
ment, setting the overall guidelines, and man-
agement and labor, cooperating with noninfla-
tionary wage settlements.
The first principle of the new abundance is,
thus, partnership in the mixed economy.
The second is an end to the quarrel between
public and private purposes. In an economy
growing by $30 billion a year it is nonsense to
say that expanded education, decent housing,
an end to urban ghettos, recreation, antipollu-
tion measures — to name only the top human
priorities in the public list — can be secured only
by the sacrifice of private opportunity.
If, through effective partnership, we keep
the present steady rates of growth, we can add
some $6 billion in public money at the Federal
level without adding a single tax. Such sums,
distributed in part to States and cities, could
give a wholly new impetus to better living and
to the end of grinding poverty for the minority
among us who still don't share our incredible
prosperity. This is a byproduct of extraordi-
nary growth.
I would go further and say that unless public
and private needs are satisfied together, the pri-
vate sector will begin to suffer the consequences.
Our public decisions will shape our private
decisions. Don't let us make unreal distinctions.
Let us see these public and private needs as
interdependent. For the citizen is an
amphibian — private in his loves and purposes,
public in his needs and responsibilities. The
glory of modem science is that it allows him to
act freely in both spheres. Let him recognize
this new freedom and accept this new en-
franchisement. If he does, I don't doubt that
we can build a human city worthy of our tools,
as soaring as our science, as useful as our tech-
nology, and restored to its true purpose- — the
well-being of man.
But, as the French philosopher said a long
time ago, science has never promised us either
peace or happiness. And if it does now, it can
never be exclusive; it can never be just Ameri-
can peace and happiness. Because science
has also shriveled our world and packed the
human family into an even smaller house.
And we are told that a host of techniques to
ease man's burdens cannot be used because we
do not know how to bring adequate resources
of money, labor, and materials, and, most of
all, management to bear on the problems.
But I submit that here, too, successful efforts
are being made all over the world to apply what
we know in order to correct what exists.
An example is the transfer of science and
technology from one country to another. In
this company, Xerox, I believe there have been
such transfers of communications know-how to
Rank Xerox and Fuji Xerox. The problem be-
comes more difficult in countries whose scientific
development and markets are less developed.
We know, for example, that China can develop
an atom bomb by concentrating a large frac-
tion of its scientific effort and industrial
resources. But the cost in living standards is
high.
U.N/s Concern With What Science Can Do
You will forgive me if I ask you not to over-
look the activity of the United Nations in the
application of science and technology. This is
a political effort in the world community as it
was in our community.
Electricity had been harnessed 50 years in the
United States before it was put to work on the
farm. It was political will that put it there.
It was political initiative which built TVA,
the Grand Coulee Dam, the superhighways,
years after we knew how.
It was a political trigger which started the
huge programs of research in science in univer-
sities and private industry.
And it is also political will which has inspired
the members of the United Nations to establish
programs of technical assistance. For we know
that peace can never be secure wlien half the
world envies the other half.
Nor can the United States and the very few
countries which can produce more than they
consume be the stacker of wheat and the hog
butcher for the whole world.
To keep the peace, therefore, the United Na-
tions is very much concerned with what science
can do to produce more of everything.
812
DEPARTMENT OF STATE BULMITIN
Winston Churchill said : "It is quite certain
that mankind would not agree to starve equally,
and there might be some very sharp disagree-
ments about how the last crust of bread was to
be shared."
Since the depression we have gradually got
over the Robin Hood notion that to give to the
poor we must rob the rich. We discovered na-
tionally that everyone is better off m an affluent
society. And although we have not yet won our
own war on poverty, we have long abandoned
the concei^t that it must be shared to be reduced.
The United Nations rejects that concept too.
Let me give you some examples of projects in
almost 100 countries in which the United Na-
tions Special Fund is helping developing coun-
tries to help themselves.
In water resources there are 91 projects under-
way. One is the Mekong Delta in Southeast
Asia, where the river basin could be used for
irrigation, flood control, and electric power — if
it wasn't used for war ! Othei-s include desali-
nization, which could have been available com-
mercially by the early 1950's if we had spent
one-tenth of what the Manhattan Project cost
us to develop the atomic bomb.
In fisheries there are 22 projects to increase
the harvest from the seas.
In locust control, projects in 38 countries may
soon bring this ancient scourge under control.
And just a week ago today, agreement was
reached to eradicate the rhinoceros beetle, which
causes severe damage to the coconut palm in the
South Pacific, including islands under United
States administration. All kinds of methods
will be tried : insecticides, cultivation of deadly
parasites, sterilization of the male through radi-
ation— a peaceful use of atomic energy, except
to a rhinoceros beetle.
One hundred countries are cooperating in a
World Weather Watch. In 2 years our satel-
lites have discovered 20 hurricanes, typhoons,
and other tropical storms and observed the be-
havior of 62 others. Nothing, of course, is more
global than the weather, and rhe world is getting
' For remarks made by President Johnson and Secre-
tary Rusk on Oct. 2 and text of a proclamation on the
International Cooperation Year in the United States,
see Bulletin of Oct. 19. 1964, p. 555.
together to do something about it at last — ^Mark
Twain to the contrary notwithstanding.
International Cooperation Year
1965, as you may know, has oflScially been
designated International Cooperation Year.^
Many people ask, Why a special year? Isn't
the United Nations itself founded "to save suc-
ceeding generations from the scourge of war,"
the essence of cooperation on a full-time basis?
Of course international cooperation should
not and does not have a starting date or a finish-
ing date. The special year was originally sug-
gested by Prime Minister Nehru to giye a "truer
picture" of the United Nations to the world, by
calling attention to its cooperating elements —
not its conflicts.
Incidentally, an elderly lady in Seattle had
an idea along these lines. "Why couldn't the
delegates," she wrote me, "take a break every 20
minutes or so, and go out into the corridors and
sing songs? Surely this would show the dele-
gates that they could be in harmony at some
point."
While I welcome all suggestions for reducing
friction among nations, I felt obliged to point
out the practical difficulties to her proposal.
I'm afraid group singing would only increase
the discords.
Our television viewers have some very good
advice. A schoolteacher wrote that she admired
me very much but there was one thing I should
know. "Your posture at the Security Council
is negative. Please sit up straight so you'll
make a good impression on the imderdeveloped
nations."
I might also mention that when I was in
Nashville making a speech recently, I heard
about the little old lady who was alarmed over
reports that Senator Goldwater was going to
take her TV away. She was assured that he
was only talking about TVA. But even so, she
said, she wasn't going to take any chances on
election day.
Much as I like TV — and I have even come to
accept the accuracy of its picture of me — neither
the camera nor the press lias given a full picture
of the United Nations. And I'm sure the
Xerox programs will help to fill it out.
DECEMBER
19G4
813
Most public interest in the United Nations
centers on its peacekeeping activity, on the
polemics of the cold war, on conflict, not co-
operation. Yet, in fact, only 2,500 of the 23,000
members of the staff of the United Nations and
its specialized agencies are working on peace-
keeping operations; the other 20,000 are work-
ing on peace-building operations.
Multilateral Cooperation
The enormous contribution the U.N. is mak-
ing toward economic progress — helping coun-
tries to leap into the 20th century— is scarcely
comprehended, even by the well-informed. A
newspaperman explained the lack of publicity
this way : "If you build a 57-story building in
the heart of Manhattan, you'll get a mention in
the real estate section. But if you blow up a
2-story building anywhere, you'll make the front
page."
Reading so much about disagreements, some
people get the idea that they are total. But it
is nonsense to assume that if two coimtries op-
pose each other on topic A, they also necessarily
oppose each other on B through Z.
I need not list for you the topics upon which
we are in disagreement with the Soviet Union.
You know them. But do you know that we co-
operate with the Soviet Union in allocating
radio frequencies, forecasting the weather,
managing air transport, fighting disease, study-
ing the oceans ?
Many of these projects involve multilateral
cooperation. For instance, since 1962, 44 vessels
from 20 nations liave been making an intensive
study of the Indian Ocean's 28 million square
miles — 14 percent of the earth's surface — which
is relatively unexplored.
The projects, large and small, are fascinating.
But the point is that International Cooperation
Year is nothing new. It is simply unfurling a
banner over what has been going on for more
than 15 years.
When I.C.Y. was designated by the General
Assembly, our delegate said : ^
. . . we are engaged in nothing less than a massive
and historically unique effort to transfer and adapt
science and technology from the limited areas in which
they have flourished ... to the international commu-
nity as a whole. ... if more people can begin to grasp
the fact of this great development — if they can begin to
sense its significance — if they can share some of the
hope that it justifies — they will appreciate better the
pioneering work of the United Nations in its adolescent
years.
Wliile many instances of international co-
operation are not under the direct auspices of
the United Nations, such as the Indian Ocean
project, they have all been inspired by United
Nations philosophy and strengthened by its
encouragement.
Wlien the United Nations conference on the
application of science and technology to the
developing areas met in Geneva,^ it focused the
attention of the world's scientists for the first
time directly upon the world's needs. It gave
all the cotmtries represented the opportunity to
find out what others were doing. It was an at-
tempt to put all the activities of all the coun-
tries into proper perspective and to determine
priorities. It was a tremendous pooling of
knowledge. The American contribution of
printed material alone was 12 volumes, com-
piled by our industrial and scientific commu-
nity.
That conference was a turning point in human
liistory — the first collective, international at-
tempt to marshal and apply the world's
resources in science and teclinology to man's
needs.
The Question for the Future
I have spoken hurriedly about the achieve-
ments and prospects for scientific cooperation.
They are heartening, but we have barely touched
the most urgent items on the agenda :
Education at every level — Half the world
cannot read, and at our present rate of teacliing
it will take 50 years before the developing coun-
tries have the specialists they need.
Population control — In hundreds of thou-
sands of years the world's population reached
114 billion, but in the past 60 years it reached
3 billion.
It is a phenomenon of the 20th century that
the crisis and the means to meet it arrived
' For a statement made by U.S. Representative Mer-
cer Cook on Nov. 20, 19C3, see U.S. delegation press
release 4315 dated Nov. 21.
' For background, see Bulletin of Feb. 25. 19G3,
p. 302.
814
DEPARTMENT OF STATE BULLETIN
simultaneously. The question for the future is
whether we can apply the means — in time.
The role of government is to create a favor-
able climate and a steady stimulus for every
force which can benefit mankind.
America has been operating on this principle.
The American experiment is essentially a great
partnership, which our Government has both
encouraged and participated in. Universities,
private enterprise, charitable foundations, and
Government agencies have all contributed to
our scientific progress and prosperity.
In the United States our once heterogeneous
collection of States might be compared to the
diversity among the nations today. And as our
Federal Government has provided the central
impetus to reduce the differences in standards
of living among our States, so indeed can the
United Nations assume much the same role in
the world.
Last week I was in Latin America, and I was
struck again by the paradox of her past and her
present. This great continent was settled hun-
dreds of years ago. Yet the scientific develop-
ments of latter years have not been exploited
because it is still trying to find its way politi-
cally. The major function of the Alliance for
Progress is to provide the impetus and to help
roll away the ancient obstacles.
So it is by political action and political
determination- — nationally, regionally, and in-
ternationally— that we shall put to work effec-
tively the great fund of knowledge already in
the public domain and that is still to come from
great research centers like this one here at
Xerox.
That is one of the great missions of the United
Nations — to help clear the way politically for
the advancement of science and technology and
the limitless blessings they can bring to
mankind.
East- West Trade: The Iron Curtain Eighteen Years Later
hy Robert B. Wright
Director, Mutuul Defense Control Staffs
As I have tried to indicate in my title for
these remarks, I propose to discuss the special
question of trade between the free world and
Communist countries in the light of inter-
national developments since the early postwar
years — developments that have an important
bearing on our present attitude toward the is-
sues of East-West trade policy. You will recall
that it was 18 years ago that Winston Churchill,
in his memorable speech at Fulton, Missouri,
called attention to the Iron Curtain which had
been drawn down between Eastern and Western
Europe. It was 17 years ago that the Marshall
' Address made before the 15th Kentucky World
Trade Conference at Louisville, Ky., on Nov. 11.
Plan was offered for American assistance to any
European countries "willing to assist in the task
of recovery." And it was very shortly there-
after that the United States controls over
strategic exports to the Soviet Union and the
other Communist countries were extended and
strengthened.
The decision made in 1947 was that the
strategic controls toward the European Soviet
bloc should be selective, in order to prevent con-
tributing to the Soviets' military potential,
rather than constituting a total embargo on all
trade. That basic decision has been reviewed
at intervals but has never been modified by any
administration. In cases where the United
States has imposed a total embargo, or a near
DECEMBER 7, 1964
815
total embargo, it has been because the facts of
our relations with particular Commiuiist coim-
tries required it. We have such embargoes on
trade, shipping, and financial transactions with
Communist China, North Korea, North Viet-
Nam, and Cuba because these countries are
actively supporting aggression or subversion
directed against the independence of other states
whose freedom and welfare are of importance
to the United States.
The point I should like to make, however, is
that, apart from these special embargo situa-
tions, American East-West trade policy has al-
lowed for the possibility of using the encourage-
ment of trade as well as the denial of trade as
an instrument of policy. In my discussion to-
day I should like to concentrate more on the
aspect of trade encouragement than of trade
denial. I should also like to concentrate partic-
ularly on the matter of trade with the Soviet
Union and the smaller Eastern European coun-
tries of the Communist bloc.
Let us, therefore, first look at the phenomenon
of East-West trade from the European stand-
point. The facts of the trade today are quite
clear. Exports from all the free-world coun-
tries to the Communist countries and imports
by the free world from all the Communist coun-
tries each run somewhat over $5 billion a year,
for a total of about $1014 billion, as compared
with total free- world trade of about $300 billion.
This is about 3.5 percent of the total trade.
More than 60 percent of this East- West trade,
however, or $6V^ billion of exports and imports,
represents trade by the countries of Western
Europe with the Communist countries of the
East.
When we look at the part of the total $101/^
billion of East- West trade which is represented
by United States trade with the Commimist
countries, we find it is very small indeed.
United States exports to Eastern Europe have
crept somewhat above $100 million in recent
years, and in 1963 reached $167 million. Im-
ports from Eastern Europe have ranged be-
tween $65 and $85 million annually. Thus
United States trade with tlie Soviet bloc
amounts to no more than one-lialf of 1 percent
of total United States trade, as compared with
equivalent proportions of 3 to 5 percent in the
case of most Western European countries and
considerably more in the case of a few — 20 per-
cent in the case of Finland and 17 percent in
the case of Iceland, for example.
East-West Trading Relationships
While the issue of East- West trade can still
arouse diverse views in the United States, it has
long since been clearly settled by the practice
of European countries. If we look back over the
years before and since the First World War
and the Bolshevik revolution in Eussia, we find
that there has been a historical pattern of com-
mercial exchange between Eastern and Western
Europe. Indeed, the first Anglo-Eussian trade
agreement was signed somewhat over four cen-
turies ago, in 1553, and was based on the same
pattern of importing Eastern raw materials
such as timber, grain, and furs that continues
today. The fact is that international trade be-
tween Eastern and Western Europe is treated
as a logical aspect of the xmderlying community
of economic and cultural interests between East
and West which has persisted in many aspects
of European life, despite the calamities of war
and division, even though it has never fuUy
prevailed.
The essence of the Western European posi-
tion on trade with Eastern Europe is that, apart
from military equipment and strategic com-
modities that would contribute quite directly to
the war potential of the Soviet Union, trade
with the Eastern countries should be handled as
trade between any industrialized countries sub-
ject only to the modifications necessary because
the Eastern European countries are state-
trading regimes.
The changes that are necessary to reflect this
fact, however, are remarkably few. The prin-
cipal Western European means of bridging tliis
discrepancy in trading systems has been the
bilateral trade agreement. The bilateral trade
agreement emerged in tlie immediate postwar
years as a means of resuming trade exchanges
in war-shattered Europe on almost a barter
basis, but it has developed into a flexible sys-
tem of conducting trade witli the Eiistem coun-
tries. The bilateral agi'eements are best under-
stood as a general framework within which the
two countries agree on categories of goods to be
816
DEPARTMENT OF STATE BULUETIN
exchanged, with the idea of keeping the physi-
cal exchange of such goods roughjy balanced.
This rough balance, however, still allows for
financial transfers. Since the currencies of the
Eastern countries are not freely convertible,
payments are made. in convertible Western cur-
rencies. The quotas in the bilateral agreements
are ceilings rather than firm commitments to
purchase or sell. Each of the two parties to a
bilateral trade agreement says in effect : "We are
willing as a government to guarantee to place
no official obstacles in the way of permitting the
sale of at least this much of our exports and the
purchase under most- favored-nation tariff rates
of at least this much of your exports but no
more." The terms and conditions of actual
purchases and sales imder the quotas are left to
negotiation between the individual Western
businessman and the appropriate Eastern trad-
ing enterprise. Additional trade, moreover,
may take place outside or in addition to the
governmental trade agreement, and, in fact, con-
siderable trade does take place in this way.
The United States, of course, conducts its for-
eign trade in general on a multilateral basis.
We have not used this kind of bilateral agree-
ment in our postwar trade with Eastern Eu-
rope— or with any other area — and thus we have
not imposed any special quantitative restrictions
upon imports from Eastern European countries.
For the most part, our legislation has precluded
most-favored-nation tariff treatment for these
imports. Nevertheless, once our customs duty
has been paid, the products of Eastern Europe
have full access to our market and their main
problem is to find buyers rather than to widen
the bounds of quantitative import controls.
To return to the situation as viewed from the
standpoint of the Western European coimtry,
however, the advantages of the European bilat-
eral agreement are principally threefold:
First, the agreement is a means of limiting
imports from the East that could cause damage
to domestic producers or to established third-
country suppliers. Wliile the Eastern country
receives most-favored-nation tariff treatment
for its exports, the effective control is the import
quota. This arrangement, therefore, provides
some protection against the random impact of
imwanted Eastern merchandise at dumping
prices, or even at competitive prices.
Second, the agreement has the advantage of
enabling each Western country to achieve a cer-
tain minimum level of exports to the East.
Wliile the trade does not have to be balanced, the
Western country can use a persistent import sur-
plus as grounds for insisting that the Eastern
coimtry increase its purchases. This approach
has limited effectiveness, because many of the
Western European countries have had over the
years a recurring problem of unfavorable trade
balances, particularly with the Soviet Union.
The president of the British Board of Trade did
insist, however, on just such a commitment
earlier this year to the effect that under the
renewed 5-year Anglo- Soviet trade agreement
the U.S.S.R. would increase its purchases of
British goods "so as to achieve a much closer
balance in the trade of [the] two countries." Of
course, the Western coimtries as a group can
hardly hope to maximize their exports to the
East through this process.
Third, the bilateral agreement permits the
individual Western country to exercise some
marginal influence on the composition of its ex-
ports to the East — for example, to increase the
proportion of manufactured consumer goods in
trade with the East.
Questions Posed by Formation of EEC
"While East- West European trading relation-
ships are thus regulated bilaterally at present,
the formation of the European Economic Com-
mimity is posing complex questions as to the
form which these relationships may take in the
future. Bilateral commercial relations between
member countries and the East are expanding.
However, the EEC is becoming increasingly
aware of East- West political implications and
has proposed for the near future a marked accel-
eration of necessary steps toward folding these
bilateral arrangements into a common policy on
trade with the East by January 1966, rather
than by 1970 as originally plaimed. The only
current controls by the EEC over the bilateral
relations of member states with Eastern Euro-
pean countries consist of the requirements that
member countries consult with the EEC Coun-
cil prior to openmg negotiations; inform the
Commission of agreements concluded; and, if
DECEMBER 7, 1964
755-645 — 64 3
817
the agi'eement is to continue beyond December
31, 1965, include a so-called "EEC clause" or a
1-year cancellation clause. This problem, I
might add, is not one that applies with respect
to Eastern Europe's trade with the European
Free Trade Area countries, which will continue
to handle trade with Eastern Europe on the
basis of bilateral agreements made by individual
member countries.
Eastern Europe, of course, has its own re-
gional grouping — the Coimcil for Mutual Eco-
nomic Assistance (CEMA or COMECON),
which aims at a large degree of coordination
among the economies of Eastern Europe. One
of the most significant indicators of the extent
to which the economic problems of Eastern Eu-
rope are merging with economic developments
in Western Europe was the recognition by
Premier Khrushchev in 1962 of the need to de-
vise some pattern of trading relationships be-
tween the CEMA group and the countries in the
European Economic Community. This thought
on the part of the Soviet regime is somewhat
visionary, because the CEMA organization is
not at all comparable to the EEC and is not in
fact a single trading entity. It seems more
likely that the Eastern European countries, al-
though they have not yet recognized the EEC,
will try individually to find some means of ac-
commodation with the EEC in order to con-
tinue their hard-currency-eaming markets in
the enlarged Western European trading area.
Eastern Europe and the Marshall Plan
The view that trade, apart from strategic ex-
ports, between Eastern and Western Europe is
a normal phenomenon that should be handled
with a minimum of noneconomic restraints is
one that the United States has accepted. I do
not mean to minimize the restraints, because
they are important; but they have a special,
essentially strategic purpose.
I checked my own recollection in this matter
by looking back at the rather full explanation
of policy made by Secretary of Commerce
[Charles] Sawyer in announcing the imposition
of the United States security export controls
program in 1948. That explanation made it
perfectly clear that while the first purpose of
restricting American shipments to Eastern Eu-
rope was to maintain strict control over mate-
rials and equipment "having potential military
significance," another important purpose was
"to minimize interference with the expansion
of East- West trade in Europe." The explana-
tion went on to point out that "the United
States has a basic stake in fostering East-West
trade in view of its beneficial implication for the
European Kecovery Program, on which we have
embarked in the conviction tliat economic sta-
bility in Europe is essential to the security and
well-being of the United States." The success
of that program was believed then to require,
in part, increased shipments of grain, timbei,
coal, and other basic materials from Eastern
Europe to Western Europe. To the extent that
such East-West trade in Europe could be re-
stored and expanded, the need for United
States economic assistance could be reduced.
Although it is sometimes overlooked in retro-
spect, the fact is that the Marshall Plan was of-
fered to Europe as a means of reconstructing
the whole of Europe, not just Western Europe.
It was the decision of the Soviet Union, made
obligatory for the dominated countries of East-
em Europe, to refrain from cooperating in this
program for the reconstruction of the conti-
nent. The Soviet Union in this way made it
impossible for the countries of Eastern Europe
to participate in the design of a reconstructed
European economy.
The nonparticipation of Eastern Europe in
the great creative period of Western Europe
under the Marshall Plan and since may, how-
ever, turn out to have been a postponement
rather than a final exclusion. I say this because
the years since 1947 have demonstrated that the
Iron Curtain has become increasingly porous.
President Johnson has clearly and ringingly
summarized this conclusion in his repeated
references to the importa,nce of building bridges
of increased understanding with countries of
Eastern Europe and in encouraging efforts at
the reconstniction of a European commimity.
Even at the point when the division of Europe
looked most gloomy and absolute, there was a
considerable movement across the boundary be-
tween East and West. Tlie people of Cermany
818
DEPARTMENT OF STATE BULIJ:TIN-
maintained their contacts across the East-West
zonal border, traveled not infrequently both for
business and personal reasons, and conducted
trade on an interzonal basis between the two
parts of Germany. The dark days of the Ber-
lin blockade clouded these exchanges, but they
I'esumed with renewed vigor thereafter. Inter-
zonal trade quadrupled between 1952 and 1958.
Indeed, the flow of people from East Germany
to West Germany became so large a flood that
the Soviet Zone regime decided not to tolerate
it further and built the Berlin wall. Four mil-
lion Germans, or 20 percent of the East Zone
population, fled to West Germany between 1945
and August 1961.
Apart from Germany, there has continued to
l>e trade moving across the Iron Curtain be-
tween Western European countries and each
of the countries of Eastern Europe as well as
the Soviet Union, with all that such trade ex-
changes carry with them in terms of travel
and economic cooperation. In addition to
trade, there has been a continued steady en-
largement of informal exchanges by scientists
and intellectuals either by mail or at European
conferences. The ingenious communications
undergroiuid of Europe has carried a steady
flow of news and fact from the Western World
inside the Communist orbit.
Tlie Iron Curtain thus lias not been a safe
insulation against Western ideas, products, and
contacts. Knowledge of the prosperity and
variety of life in Western Europe has come
through the Curtain and given rise to pressures
by the peoples of Eastern Europe for consumer
goods, for a better level of diet, and for some
elements of free expression. Over the years
these pressures have had an impact on the con-
cept of Eastern Europe as a self-sufficient and
self-contained unity.
Community of Interests Between East and West
Tlius the steady erosion of history upon the
Iron Curtain has by 1964 made Europe, and
particularly Eastern Europe, a sharply different
place from what it was almost 20 years earlier
at the close of the Second World War. The
fact is that the two parts of Europe are finding
that they have some of the same problems and
in fact have much that imites them, in the eco-
nomic field at least. This does not mean that
Communist political domination in the Eastern
ai"ea is disappearing, but the pull toward a his-
toric community of interests between Eastern
and Western Europe does operate to diminish
rather than strengthen the Soviet position of
domination.
In facing their problems of industrial de-
velopment and economic improvement, the
smaller countries of Eastern Europe are looking
with greater interest to trade with the West,
both as a source of plants and technology and
as a valued market for exports. They are also
looking to trade with the United States.
Fi-om the standpoint of this country, the case
to be made for such trade is twofold : First, it
can be of modest but helpful economic advan-
tage to the United States as a means of increas-
ing export earnings and improving our balance
of payments; second, and of more importance
from the foreign policy standpoint, it can con-
tribute to the westward-looking tendencies in
the individual Eastern European countries and
to their increasing independence of full Soviet
domination.
Our policy of differential treatment of Com-
munist countries is not new. It is well tested
over the years. In 1948, because of Yugo-
slavia's break with Kremlin domination, we be-
gan to treat that country more favorably to the
point where it has now for 15 years been treated
in trade matters as any non-Communist country.
This policy has been successful from the stand-
point of United States interests.
As a result of the events of 1956 in Poland,
which represented an attempt to reduce Soviet
domination, Poland sought improved relations
with the West, including the United States.
We have responded with substantial sales of
agricultural surplus commodities, with most-
favored-nation tariff treatment for unports, and
with reduced export controls. As a result,
Poland has a larger commercial trade with the
United States than any other of the Soviet bloc
countries and has made steady progress toward
increasing independence of Soviet domination
and toward closer contacts with America.
More recently, Rumania has asserted the
primacy of its own national interests, particu-
DECE5IBER 7, 19 64
819
larly in the economic field, over the efforts of
the Soviet Union to impose its will. Rumanian
interest in trade and other contacts with the
West has increased, and the United States recog-
nized these developments in bilateral discussions
with the Rumanians in Washington earlier this
summer.^ In these discussions, agreement was
reached on improved conditions for trade be-
tween the United States and Riunania, on
certain equipment that Rumania could purchase
in this coimtry, and on other matters making
for bett«r relationships.
There are evidences today in most of the other
Eastern European countries of efforts to reduce
their economic dependence on the Soviet Union
and to increase their trade and contacts with
Western Europe and the United States. As
matters develop in these countries, and as they
demonstrate a will to work out their policies and
institutions along national lines, it may be
timely to look toward closer trade relations with
them too. We are convinced that United States
trade policy toward individual countries of
Eastern Europe can be one means of bringing
about practical contacts by Americans with the
peoples of Eastern Europe and can enable us
to exert some influence on developments during
this period of accelerating change in Eastern
Europe.
Let me repeat in conclusion the points I have
tried to make today.
First, the conditions in the countries of East-
ern Europe are quite different now from what
they were in the early postwar Stalin years;
the influence and example of immense economic
success in Western Europe have crept through
the Iron Curtain.
Second, the countries of Eastern Europe are
looking increasingly toward trade and other
closer contacts with the West. In part they
seek the resumption of the historic ties between
East and West Europe. But also, the smaller
countries of Eastern Europe have a growing
recognition of the costs that economic autarky
and excessive dependence on the Soviet Union
impose on them.
Third, so far as the United States is concerned,
it is timely to use trade increasingly as a means
' For background, see Bulletin of June 15, 1964,
p. 924.
of encouraging westward-looking developments
and greater independence of policy in the
Eastern European countries.
Finally, sales of American commodities and
equipment to the Eastern European countries
can be of help to American business and to the
United States balance of payments. For ex-
ample, the sale of grain last year to the U.S.S.R.
for cash meant that the United States balance of
payments was $140 million to the good and that
additional jobs were created in transportation
and handling. At the same time, it meant that
a significant part of the available foreign ex-
change resources of the Soviet Union were being
devoted to obviously peaceful purposes.
So there is concrete economic advantage for
the United States in permitting nonstrategic
trade with the Commvmist countries. The more
significant considerations are, however, political
rather than economic. They mean, as Secretary
Rusk has suggested,^ that trade can be used as
one means to promote the trends within the
Conmiunist world wliich lead away from im-
perialism, away from dictatorships, and to
encourage evolution toward national independ-
ence, peaceful cooperation, and open societies,
with which we can live in enduring friendship.
Congressional Documents
Relating to Foreign Policy
88th Congress, 2d Session
WnrUl Newsprint Supply-Demand— Outlook Through
1966. Report of the House Committee on Interstate
and Foreign Commerce. H. Kept. 1S99. Septem-
ber 24, 1964. 37 pp.
Foreign Service Annuity Adjustment Act of 1964.
Conference report to accompany S. 74."). H. Kept.
1898. September 24. 1964. 6 pp.
Communication from the President transmitting a pro-
posed supplemental appropriation to pay judgments
rendered against the United States in the amount
of $1,024,994. S. Doc. 101. September 24, 1964.
7 pp.
Tariff Schedules Technical Amendments Act of 1964.
Report to accompany H.R. 12253. S. Rept. 1601.
September 25, lOW. r>3 pp.
Report of the U.S. delegation to the 53d conference of
the Interparliamentary Union, held at Copenhagen,
Denmark, August 20-28, 1964. H. Doc. 368. Sep-
tember 28, 1964. 35 pp.
Foreign Assistance and Related Agencies Appropria-
tion Bill. 1965. Report to accompany H.R. 11812.
S. Rept. 1605. September 29, 1964. 20 pp.
' Ihid., Mar. 16, 1964, p. 390.
820
DEPARTMENT OF STATE BULLETIN
Major Objectives of the Foreign Aid Program
hy David E. Bell
Administrator, Agency for International Development '
I am very pleased to join in this discussion of
United States foreign assistance programs
under the auspices of the World Affairs Council
of Milwaukee. Conferences such as this, in
■which interested citizens join in discussing
major aspects of national policy, are especially
important in the foreign affairs field. A demo-
cratic form of government, sucli as ours in the
United States, cannot act successfully in this
complex and dangerous world unless leadei-s of
opinion throughout the Nation understand the
issues we face and the alternatives before us.
One of the major elements of American
foreign policy since the end of the Second
World War has been to assist free countries who
need help in establishing peace and security and
achieving economic and social progress. Our
foreign assistance programs are far less of a
burden to us than they used to be — 15 years ago
we were devoting about 2 percent of our gross
national product to foreign aid, whereas at pres-
ent the figure is about six-tenths of 1 percent.
Nevertheless, they remain today an important
element of our foreign policy and a significant
item in our national budget.
Accordingly, I am very glad to be able to
speak to you briefly here this morning and then
to respond to any questions j'ou may have. Let
me in these brief remarks comment on three
central questions : First, what are we trying to
do through foreign aid; second, are we getting
anywhere; and third, what is the outlook for
the future ?
' Address made before the World Affairs Council of
Milwaukee at Milwaukee, 'Wis., on Nov. 21.
The fundamental purposes of our aid pro-
grams have been the same since the end of
World War II. U.S. militaiy and economic
assistance were invented at that time as means
for supporting the strength and independence
of other free countries. The geographic direc-
tion of our assistance has changed completely.
Eight after World War II almost all of our aid
went to Western Europe and to Japan. Today
none of our aid goes to those areas ; all of it goes
instead to the less developed countries in Asia
and Africa and Latin America. The conditions
we deal with in these areas are diverse, fre-
quently very difEcult, and for the most part very
different from the conditions we dealt with in
Western Europe and in Japan. But the purpose
of our aid remains the same. Wlierever we
work, it is our purpose to help strengthen the
forces of freedom and progress.
The conditions in Latin America and Africa
and Asia today engage the fundamental inter-
ests of the United States. It is essential to our
own national security that the people of the
less developed areas be assisted to achieve
strength and progress through free institutions,
or they will surely fall prey to the false appeal
of commimism. It is important to our own
economic progress that there be greater produc-
tion and greater purchasing power in the less
developed countries leading to larger trade and
a better opportunity for American overseas
investment. And it is necessary to our own self-
respect that the world's richest nation devote
some share of its income to helping our poorer
brothers elsewhere in the world.
821
These are our interests and purposes. We
work against severe obstacles. There are first
of all the obstacles of poverty and ignorance
and disease. The average citizen of Wisconsin
has an income of about $2,400 per year, has had
more than 10 years of schooling, and has a life
expectancy of 70 years. The contrast is sharp
witli a country like Pakistan, where the average
citizen has a yearly income of less than $80,
unless he is among the fortunate one-fifth of his
people he has never had the opportunity to go
to school at all, and his life expectancy is only
about 35 yeare. The inherent problems of
achieving economic and social progress starting
■with such handicaps are obviously enormous.
These inherent obstacles are greatly enlarged
by the threat of Communist expansion and
domination. It may be that there has been
some overall easing of tensions between the
United States and the Soviet Union in recent
years. So far as the less developed comitries
are concerned, however, the threat of Com-
munist subversion shows no sign of diminishing.
Indeed, with the Eussians and Chinese Com-
muni.sts battling for leadership of the Com-
munist parties around the world, there is much
evidence of increasing vigor in the Communist
effort to seize control in underdeveloped coun-
tries.
It is obvious from each day's newspaper that
there is no slackening in the bitter, stealthy.
Communist-led guerrilla warfare carried on by
the Viet Cong in Viet-Nam.
It is plain that there is no slackening in the
strong drive of the Communists in Latin
America, supported from Cuba, to gain power
in country after country. Wo have all been
glad to see the recent change of government in
Brazil and the results of the recent electicm in
Chile. But we should not delude ourselves
about the seriousness of the underlying positioi^
in Latin America. The Communist otTort to
achieve influence — through the universities,
through the labor unions, in the slums of the
cities, and in the poverty-stricken rural areas —
will remaiiv an astute and powerful effort for
yeare to come, requiring an equally astute and
powerful elTort by the forces of freedom.
In Africa also we are seeing strong efforts
by both the Russiiui and the Chinese Com-
munists to gain influence in the new coim-
tries there, which are frequently imder the
leadership of untried men seeking to establish
national political stability for the first time.
In the face of challenges like these, it would
plainly be tlie greatest folly for the United
States to reduce its concern for the strengthen-
ing of freedom in the less developed countries.
The threat remains, and in many respects it is
increasing and not diminishing. The national
interest of the United States requires us to con-
tinue our efforts to help the less developed coun-
tries achieve progress in freedom.
Aid to Less Developed Countries
There is another very important point to
make, however, about our purposes under the
foreign assistance program. Since the days of
the Marshall Plan, our central idea has been
to help other countries get on their own feet
so they can meet their own problems with their
own resources and our assistance can come to an
end. This is what happened in Europe. U.S.
aid provided an initial boost, after which the
European countries were able to go ahead on
their own. The same thiag has happened in
Japan. In all, U.S. economic aid has done its
work and lias come to an end in some 17 coun-
tries thus far.
For some yeai's following the end of the
IMarshall Plan, there was considerable skep-
ticism that it would be feasible for foreign aid
to do its work and come to an end in tlie less
developed countries. By now, however, the evi-
dence is beguuiing to accumulate beyond any
reasonable doubt that a self-sustaining process
of economic growth can be achieved in most if
not all of the le.ss developed countries. The
concept of temporary assistance from the
United States and from other advanced coun-
tries is a feasible idea. The less developed
countries can reach a situation in which their
own furtlier pi-ogress can be assured by their
own efforts and special assistance fi'om the
United States and from others can come to an
end.
The clearest evidence of this can be seen in
the fact that we have now identified some 14
additional countries which are plainly in the
stage of transition to economic self-support and
822
DEPARTMENT OF STATE BULLETIN
where economic aid can soon come to an end.
Among these are snch large recipients of aid as
Greece, Israel, and the Ecpublic of China on
Taiwan. Look for a moment at the latter.
A decade ago Taiwan was as heavily depend-
ent on U.S. aid to stay afloat as Viet-Nam is
today. But not any longer. With our help, it
has made enormous progress. It has completed
one of the most successful land reforms in Asia.
It has acliieved an exceptional record of growth
in both agriculture and industry. Education
and health facilities have been greatly ex-
panded. Taiwan's rate of economic growth for
the last several years has been more than 5 per-
cent per year. Today the major share of Tai-
wan's needs for teclmical and capital assistance
can be met through normal commercial chan-
nels, including substantial U.S. private invest-
ment in an economy that is now clearly a gomg
concern and an attractive market. We will con-
tinue for some time to provide military assist-
ance. But Taiwan is definitely in transition,
and economic aid is now coming to an end.
It is important to recognize that the objective
of economic self-support is not related to any
particular level of income. The Japanese have
a thriving economy which is advancing very
rapidly, although their average annual income
per person is only in the neighborhood of $550,
in contrast to about $2,500 per person in the
United States. Taiwan is approaching eco-
nomic independence with an average annual in-
come per person in the neighborhood of $150.
The important point, in other words, is not the
level of income but the establisliment of enough
skills, enough of a capital base, enough public
and private leadership so that the upward spiral
of higher production leading to higher income
which in turn calls for higher production — this
upward spiral can be expected to continue in-
definitely into the future. The people of Tai-
M-an are reaching this pomt. They will shortly
be in a position to achieve a continuing increase
in incomes and living standards without the
kind of soft-term loans or grants we have been
making available to them for the last 15 years.
Economic aid will have done its work and can
be brought to an end.
This is our objective in all the less developed
countries. The period of time within which it
can be achieved will differ from country to coun-
try. The problems of inadequate resources,
lack of export potential, rapid population
growth in many cases are formidable. But
there is every reason to expect that, with con-
tinued strong efforts, economic self-support is in
time an attainable goal in all the major less
developed countries.
Emphasis on Self-Help
It is equally clear, however, that the i^rincipal
factor which will lead to economic self-support
for the less developed countries is not the extent
of the foreign assistance that may be made
available. It is instead the strength of the lead-
ership and the wisdom of the policies followed
in the less developed countries themselves. The
people of the underdeveloped countries must be
prepared to make sacrifices; they must be pre-
pared to defer present enjoyment in the interest
of future progress. They must imdertake the
basic reforms in their own laws and customs
which will lead to dynamic and progressive
societies.
If they do what they can for themselves, then
our assistance can be of great value to them.
This is the fundamental reason why we insist on
self-help measures by the countries we are aid-
ing. This is why we concentrate our economic
assistance in those countries which are doing the
most for themselves. In the present year, for
example, two-thirds of all our development
loans are going to seven countries — India, Pak-
istan, Turkey, Tunisia, Nigeria, Chile, Colom-
bia— which in general are following sound and
strong self-help policies.
Perhaps the clearest expression of the self-
help — the partnership — concept of foreign aid
is to be found in the Alliance for Progress.
'\'\nien the alliance was established, the Latin
American coimtries pledged themselves to raise
their own taxes, to increase the allocation of
their own resources to education, health, and
housing, to undertake the kinds of reform meas-
ures which would stiinulate the private sector
in their countries. For our part the United
States pledged itself to provide capital and tech-
nical resources sufficient, when coupled with
Latin ^Vmerica's own resources, to achieve the
necessary economic and social progress.
DECEMBER 7, 19G4
823
As everyone knows, progi'ess under the alli-
ance has been good in a number of the Latin
American countries but not in all. I believe it
is accurate to say, however, that the fundamental
partnership conception of the alliance has been
winning steadily wider understanding and ac-
ceptance throughout Latin America. If this
is so, and if we in the United States do not falter
in our strong support for the alliance, I believe
we can look forward to significant progress in
Latin America.
Programs of Other Countries and Organizations
Clearer and stronger emphasis on self-help
by the aid-receiving countries is an important
step toward the achievement of our foreign
assistance goals. Another is the growing par-
ticipation by other advanced countries in pro-
viding aid to less developed countries. Fifteen
years ago the United States was the only coun-
try providing foreign assistance. Since then
we have seen a steady transformation of free-
world aid recipients into aid donors, who share
with us the burden and the challenge of helping
the poor countries. The Western European
countries and Japan last year provided over
$2 billion in assistance to the less developed
countries.
We consider that some of the other advanced
countries could increase the size of their aid
programs and that several of them should soften
the terms of their aid loans. But the most im-
pressive fact is that the other advanced coun-
tries and the United States are today joined
in a major conmion effort to help the developing
countries.
Furthermore, in addition to the bilateral
programs of the United States and other coun-
tries, there are today a number of major inter-
national agencies and programs, including the
World Bank and its soft-loan subsidiary the
International Development Association, the
United Nations tex-hnical assistance agencies,
and the Inter-American Development Bank.
The Unit«d States and other countries share
the costs of these efforts, wliich are playing an
increasuigly larger role in the development
process.
Development of Local Private Sectors
I would like to mention this morning one
more point of increasing emphasis directly
related to our fundamental effort to help other
countries get on their own feet, in a position
to solve their own problems. The most im-
portant means for progress in less developed
countries is through the increasing competence
of their people and their leadere, through the
growing capabilities and efficiency of their in-
stitutions. In consequence, those of us who
want to help others develop seek to build com-
petence, seek to establish centers of initiative,
seek to produce individuals and institutions
capable of making sensible plans and taking ef-
fective action.
This is the reason we so strongly support the
growth of the private sector in the developing
countries, not simply private businesses but co-
operatives, labor unions, farm organizations,
and many other kinds of private organizations
capable of vigorous initiative and action. Gov-
ernment policies and programs are essential;
you cannot develop an effective educational sys-
tem, for example, by simply leaving the task to
private initiative. But governments every-
where have more to do than they can handle
well, and the vigor and dynamism tliat is re-
quired to get a process of economic gro^i:h
started must come in large measure from en-
couraging private and local initiative. Our for-
eign assistance programs, therefore, stress in
every aided country the development of the
private sector.
In doing this we are learning to draw more
and more effectively on resources available in
the private sector in the United States. Ameri-
can aid programs for years have supported and
assisted private U.S. business investment over-
seas in the less developed countries, and we are
continually searching for better ways to do this,
since United States business investment abroad
carries with it badly needed teclinical skill and
managerial know-how as well as capital
resources.
We have a series of programs intended to en-
courage U.S. business investment in less
developed countries. For example, we operate
an insurance program under whicli business-
824
DEPARTMENT OF STATE BDX,LETI1T
men can obtain guaranties against the loss of
investments through expropriation, inconverti-
bility of currency, or damage from war or insur-
rection. The attractiveness of such insurance
grew sharply after the Cuban government ex-
propriated American property following
Castro's rise to power. Tliis year, so far, we
have issued over $500 million of such guar-
anties.
Another stimulus for U.S. private investment
in the less developed countries, introduced 3
years ago, is our standing offer to share the cost
of investment surveys. Incidentally, just re-
cently a builder from Madison, Mr. Marshall
Erdman, was the 100th businessman to under-
take an investment survey under this program.
Mr. Erdman's survey will take place in Tunisia.
If the result is favorable and he makes an in-
vestment, he will pay the full cost of the survey.
If the results are negative, AID will pay one-
half the cost and will keep the survey results
for the information of other businessmen.
We are continually seeking ways to bring to
bear in the less developed countries other types
of American skills and experience. For ex-
ample, we have used many leading members of
the American savings and loan industry to help
establish savings and loan associations in Latin
America. This effort has been highly success-
ful. Starting only 3 years ago, there are now 80
individual savings and loan associations in six
Latin American countries. These associations
have some 200,000 members, deposits of over
$75 million, and have already made more than
20,000 housing loans. We are also drawing
heavily on the expertise of American REA
[Rural Electrification Administration] co-ops,
credit imions, and many other parts of the
American cooperative movement.
American businesses, co-ops, labor unions,
universities, and many other institutions have
skills and know-how which can assist in the
task of encouraging economic and social prog-
ress in less developed countries. We are con-
tinuing to seek more ways to draw upon these
private American resources. I met in New
York yesterday with our Advisory Committee
on Private Enterprise in Foreign Aid, headed
by Mr. Arthur Watson of IBM. This group,
created as a result of congressional action, is
systematically exploring with us the complete
range of American private resources and how
we can make better use of them in connection
with our foreign assistance programs.
Confidence in Further Progress
There is much more I could say about our
foreign assistance efforts, but perhaps this is
enough by way of introduction to this morn-
ing's session. In svmimary, I have stressed that
the purpose of what we are doing is to support
the strength of freedom, democracy, and prog-
ress in the world, because that is in the national
interest of the United States. We are not
simply providing charity. We are providing
assistance in getting other countries on their
own feet, in a self-supporting position, and we
are insisting that their first duty is to help them-
selves if we are to provide useful assistance.
We support the development of strong private
enterprise sectors in the countries where we are
working. We look forward to a steady transi-
tion of more and more of the underdeveloped
countries to a position of self-support and to
more and more of the free-world countries join-
ing in the task of helping others.
Above all we retain the vision of a dynamic
and progressive group of free countries, meet-
ing the needs of their people with increasing
success and achieving ever stronger free
societies. Foreign assistance is only one instru-
ment to that end. The record to date demon-
strates, however, that well-conceived foreign
aid, programs can contribute to this gi'eat pur-
pose which is essential to our ovm long-term
security and welfare. I believe we can go
forward with confidence that further progress
can be made.
DECEMBER
1964
825
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
U.S. Mission Expresses Views
on Question of U.N. Financing
EXCHANGE OF LETTERS WITH CHIEF ADEBO
Ambassador Stevenson to Chief Adebo
U.S. /U.N. press release 4465 dated November 11
November 9, 1964
Mt dear Chief Adebo: The President has
asked me to reply to your letter of November 3
[4] and also to convey to you his warm apprecia-
tion for your kind remarks on his election to the
office of President of the United States.
He wishes you to know that he shares your
concern for the welfare and effectiveness of the
United Nations which prompted your letter.
As you noted the provisions of the Charter
will be applicable when the General Assembly
convenes.^ The law of the Charter is explicit
on this. The practical implications are equally
clear, for the law either is applicable to all im-
partially or inapplicable to all impartially.
However we all hope that before December 1
the necessary steps will have been taken so that
this issue will not arise. The United States has
been cooperating with others to help achieve a
generally acceptable solution and will be pleased
to work further to this end.
We have put forward three main ideas, as you
are aware :
First, without derogating from the power »nd
authority of the General Assembly, in which all
United Nations members are represented, we
would be glad to cooperate in strengthening the
primary role which the Charter gives to the
Security Council in the maintenance of inter-
national peace and security.
Second, we will be glad to cooperate in estab-
' For text of a U.S. memorandum of Oct. 8, 1964, con-
cerning the U.N. financial crisis, see Bitlletin of Nov.
9. 1964, p. 081.
lishing arrangements under which the Assem-
bly, in making assessments for major peace-
keeping operations, would take more fully into
account the views of those wlio, such as some of
the states now in arrears, would be expected to
share the main burden of supporting future
peacekeeping activities.
Third, we have consistently said that, as far ■
as the United States is concerned, the current |
financial difficulties can be settled in any num-
ber of possible ways consistent with the Charter.
I believe that these ideas conform with your
desire that a solution be found.
We have in fact held discussions with the
U.S.S.E. and with other members of the Work-
ing Group, as you know, and we have been will-
ing throughout the year to discuss the issue
with anyone at any time. We have reiterated
this willingness to the U.S.S.R. and others in
recent days.
We recognize that this question does not in-
volve the big powers alone. A satisfactory set-
tlement is of greatest import to all United Na-
tions members, big and small, since it goes to
the core of what kind of world organization the
membership is prepared to support. We would
be glad to consider any ideas wliich you or
others may have for a generally acceptable so-
lution consistent with the Charter.
You may be sure that, in all the work before
us, the United States will fully share in your
endeavor to make the United Nations "sti\5nger
to fulfill its purposes, foremost among whicli is
the maintenance of peace and security in the
world."
Sincerely yours,
Adlai E. Stevenson
U.S. Representative to the United Nations
His Excellency
Cliief S. O. Adebo, C.M.G.,
Permanent Representative of
Nigeria to the United Nations.
826
DEPARTSrENT OF STATE BULI
Chief Adebo to President Johnson
4th November, 1964
Dear Mr. President : I have already in another let-
ter conveyed to you, through the United States Mission,
the congratulations of the Permanent Mission of
Nigeria, for your re-election to the great office of
President of the United States. I am writing this
present letter, not as Permanent Representative of
Nigeria, but in my capacity as Chairman of the Work-
ing Group of Twenty-One Nations charged by the Gen-
eral As.sembly with the task of recommending how the
peace-keeping operations of the United Nations should
be financed in the future. And may I say that I am
writing it purely on my own initiative?
The Working Group's efforts to bridge the gap be-
tween the opposing views on this is.sue have so far
been of no avail, and they have been complicated by
the sword of Damocles which now hangs over the re-
sumption of the General Assembly. I refer of course
to the dispute over the application of Article 19 of the
Organisation's Charter.
Your re-election is surely a vote of confidence in your
policy of supporting the United Nations and helping
to make it stronger to fulfill its purposes, foremost
among which is the maintenance of peace and security
in the world. May I humbly appeal to you, Mr. Presi-
dent, to be good enough, in pursuance of that objec-
tive, and in association with President De Gaulle of
France and the new leaders of the Soviet Union and
Great Britain, to help promote an atmosphere in which
we can, in a great cooperative endeavour b.v all States,
members great and small, peacefully resolve the issue
of the immediate financial cri.sis of the Organisation
and then proceed equally cordially to tackle the prob-
lem of future arrangements on a basis satisfactory to
all.
I have ventured to address similar appeals to the
other Heads of State mentioned above. May God bless
any steps that all or any of you may feel disposed and
able to take in this matter.
Accept, Mr. President, the assurances of my highest
consideration.
S. O. Adebo
Permanent Representative of Nigeria
at the United Nations
President Lyndon B. Johnson,
c/o The United States Mission to the United Nations.
^99 United Nations Plaza,
New York, N.Y.
REMARKS BY AMBASSADOR STEVENSON,
NOVEMBER 13'
The United States hopes that any conflict of
opinion over assessments for peacekeeping oper-
ations will be resolved before December 1.
I am encouraged by the initiative of the
Group of Four.
The United States is ready to discuss peace-
keeping arrangements for the future at any
time with anyone at any place, and has been
ever since last March.
Voluntary payments could be made without
prejudice to the Soviet's or anyone else's legal
views. Any arrangements for such payments
consistent with the Charter and satisfactory to
the Secretary-General will be satisfactory to the
United States.
We don't want to aggravate relations with the
Soviet Union or France or anyone else. Wliat
the world needs is better relations and less
tensions with so many serious problems of peace
and security confronting us.
The United States also feels we need ever
stronger peacekeeping operations.
STATEMENT BY FRANKLIN H. WILLIAMS
NOVEMBER 16'
The United States Government has always
given the most sympathetic consideration to the
requirements of the Expanded Program of
Teclinical Assistance and the Special Fund.
Our steadfast, uninterrupted financial support
is indicative of the importance which we attach
to the continued growth and vitality of these
two programs. Many delegates are aware that
it was the United States which initiated the pro-
posals which led to the establishment of these
two programs. They are also aware that
throughout their history we have been their
principal supporter.
We are now looking forward to adoption by
the forthcoming General Assembly of the reso-
lution which would establish the United Nations
Development Program, enlaancing even further
the ability of these valuable programs to meet
the needs of the developing countries.
However, in view of circumstances with which
members are familiar, my Government is not in
2 Made after a meeting with U.N. Secretary-General
U Thant.
' Made at the 1964 United Nations Pledging Confer-
ence on the Expanded Program of Technical Assistance
and the Special Fund (U.S./U.N. press release 4467).
Ambassador Williams is U.S. Representative on the
Economic and Social Council.
DECEMBER 7, 1964
827
a position to make a pledge for 1965 at tliis time.
We have every hope that developments will
make it possible for us to announce a substantial
pledge in the near future.
TREATY INFORMATION
Current U.N. Documents:
A Selected Bibliography
U.S. and U.S.S.R. To Cooperate
in Field of Desalination
Mitneographed or processed documents (such as those
listed helow) may be consulted at depository libraries
in the United States. U.N. printed publications may be
purchased from the Sales Section of the United Nations,
United Nations Plaza, N.Y.
Security Council
Letter dated August 28 to the President of the Security
Council from the Minister for Foreign Affairs of the
Republic of Viet-Nam. S/5924. September 1, 19&i.
3 pp.
Letter dated September 3 to the President of the Se-
curity Council from the representative of Malaysia
requesting an urgent meeting of the Security Coun-
cil to consider Malaysia's complaint of an attack by
Indonesian paratroopers on the night of September
2. S/5930. September 3, 1964. 1 p.
Letter dated September 10 to the President of the
Security Council from the representative of Malay-
sia, enclosing a statement of one of the captured
Indonesian personnel and a "list of code words vcith
vfhich he had been supplied." S/5956. September
11, 1964. 6 pp.
Cables dated September 8 and 11 to the President of
the Security Council from the Minister for Foreign
Affairs of Cambodia concerning "United States-
South Vietnamese acts of aggression against Cam-
bodia." S/5943, September 9, 1964, 1 p.; S/5960,
September 11, 1964, 1 p.
Report by the Secretary-General to the Security Coun-
cil on the termination of the United Nations Ob-
servation Mission in Yemen. S/5959. September
11, 1964. 1 p.
Letter dated September 11 to the President of the
Security Council from the deputy representative of
the U.S.S.R. enclosing a memorandum from the So-
viet Ministry of Foreign Affairs concerning "The
question of the financial situation of the United
Nations." S/5964. September 11, 1964. 13 pp.
General Assembly
Legal Problems Relating to the Utilization and Use of
International Rivers. Report of the Secretary-
General. Volume III. A/5409. April 15, 1964.
291 pp.
Reimrt of the Special Committee on the Situation With
Regard to the Implementation of the Declaration of
the GrniitinK of Independence to Colonial Countries
and I'coiilos. Report on Southern Rhodesia. A/
5S00/Add. 1. August 10, 1964. 186 pp.
Application of Malawi for Admission to Membership
In the United Nations. Letter dated August 6 to
the Secretary-General from the Minister of External
Affairs of Malawi. A/5724. August 24, 1964. 1 p.
Press release 495 dated November 18
DEPARTMENT ANNOUNCEMENT
An agreement on cooperation between the
United States of America and the Union of
Soviet Socialist Kepublics in the field of desali-
nation, including the use of atomic energy, was
signed at Moscow on Wednesday, November 18,
at 5:00 p.m. (Moscow time). The American
Ambassador to the U.S.S.K., Foy D. Kohler,
and the Director of the Office of Science and
Teclmology, Dr. Donald F. Hornig, signed on
behalf of the United States. Beginning from
informal discussions on May 26 of this j'ear, fol-
lowed by a visit to Washington in July of a
group of Soviet experts,^ and coinciding with a
visit of U.S. desalting experts to the Soviet
Union, this agreement sets forth certain types of
cooperation with the U.S.S.R. in this field.
President Kennedy, in his special message to
Congress on natural resources on February 23,
19G1,^ pledged the sharing of our teclmology in
this area to all nations who wished it. Presi-
dent Johnson, on February 6, 1964,' again made
known the U.S. offer to share our knowledge in
this area.
In pursuit of these offers the United States
Government is cooperating with several coun-
tries. The present agreement is an example of
such cooperation and is in a form which follows
our previous arrangements for exclianges with
the U.S.S.R.
' For text of a joint memorandum and a list of the
U.S. and Soviet representatives, see Bulletin of Aug.
3, 1964, p. 144.
" For text, see Public Papers of the Presidents of the
United States: John F. Kennedy, 19G1. U.S. Govern-
ment Printing Office, Washington, 1962.
• Bulletin of Feb. 24, 1964, p. 285.
828
DEPAETMENT OF STATE BULLETIN
The United States also views this agreement
as a further step in the general program of
exchanges in the scientific, technical, and cul-
tural fields which was inaugurated with the
signing at Washington of the first U.S.-
U.S.S.R. exchanges agreement on January 27,
1958."
TEXT OF AGREEMENT
Agreement on Cooperation Between the United
States of America and the Union of Soviet Social-
ist Republics in the Field op Desalination, In-
cluding THE Use of Atomic Energy
The Government of the United States of America
and the Government of the Union of Soviet Socialist
Republics, hereinafter referred to as the "Parties,"
Taking into account that the problem of desalination
has great si^iflcance for the USA and the USSR and
also for many other countries experiencing a shortage
of fresh water ;
Taking into account that contemporary scientific and
technical achievements, including the use of atomic
energy, permit the practical solution of the problem
of desalination ;
Have agreed on the following :
I. The Parties will engage in wide scientific and
technical cooperation in the field of desalination, in-
cluding the use of atomic energy, in accordance with
the provisions of this Agreement.
II. The Parties will conduct scientific research and
development work in the field of desalination, includ-
ing the use of atomic energy, in accordance with their
own programs and at their own expense.
III. The Parties will exchange, on a reciprocal
basis, scientific accounts, reports, and other documents,
including the results obtained from work at pilot and
demonstration plants of the Parties.
IV. The Parties will periodically organize, on a re-
ciprocal basis, symposia and scientific meetings for
discussion of scientific and technical problems and proj-
ects in accordance with previously agreed programs.
V. The Parties will periodically organize visits, on
a reciprocal basis, by technical experts to appropriate
installations and laboratories.
VI. In order that the International Atomic Energy
Agency (IAEA) and its members receive benefits in
full measure from this cooperation, the Parties will
give the IAEA copies of accounts, reports, and other
documents which they exchange and also in appro-
priate cases invite IAEA observers to symposia and
scientific meetings held by the Parties. The Parties
will jointly inform the IAEA Director-General of this
agreement.
VII. The implementation of this Agreement shall
* For text, see Hid., Feb. 17, 1958, p. 243.
be subject to the provisions of Sections I and XIII of
the US-USSR Agreement on Exchanges in the Scien-
tific, Technical, Educational, Cultural and Other Fields
signed at Moscow February 22, 1964.°
VIII. This Agreement shall enter into force upon
signature. It shall continue in force for two years,
and shall be subject to renewal by the Parties.
In witness whereof, the undersigned, duly author-
ized, have signed the present agreement.
Done, in duplicate, in the English and Russian lan-
guages, both equally authentic, at Moscow this Eigh-
teenth day of November, One Thousand Nine Hundred
Sixty-Four.
By authority of By authority of
the Government of the the Government of the
United States of America Union of Soviet Socialist
Republics
FoT D. KoHLER A. Gromyko
Donald F. Hornig A. Petrosyants
U.S. and Japan Reach Agreement
To Govern King Crab Fishing
Joint Announcement
Press release 488 dated November 14
Delegations of the United States and Japan
on November 14 successfully concluded [at
Washington] their consultations regarding
king crab fishing in the eastern Bering Sea.
The delegations agreed to recommend to their
respective Governments arrangements to gov-
ern the king crab fishery of both countries in
the eastern Bering Sea for a period of 2 years,
at the end of which time the two Governments
would undertake to hold further, similar con-
sultations.
Included in the proposed agreement are pro-
visions for a level for the Japanese king crab
catch in the area of the traditional Japanese
fishery in the eastern Bering Sea, interim con-
servation measures to be applied to the fisher-
men of both countries in the area, continued
and intensified scientific study of the king crab
resource, and enforcement of the terms of the
agreement. In order to minimize the possibili-
ties of conflict resulting from the differing types
° For text, see Treaties and Other International Acts
Series 5.582 ; for a Department statement and remarks
by Ambassador Foy Kohler, see Bulletin of Mar. 23,
1964, p. 451.
DECEMBER
1964
829
of fishing gear, the agreement would specify an
area in wMch only crab pots would be used for
commercial crab fishing.
The consultations, which began on October
15, were held in fulfillment of the pledge made
by President Johnson last May ^ that before
implementing the provisions of Public Law
88-308 (the so-called Bartlett Act) the United
States would consult with Japan and would
give full considei'ation to Japan's long-estab-
lished king crab fishery. Faced with the op-
posing legal positions of the two Governments
regarding rights under international law to fish
the king crab resource, the two delegations
agreed on practical arrangements without prej-
udice to the legal position of either side.
United States and Yugoslavia
Conclude Claims Agreement
Press release 480 dated November 5
DEPARTMENT ANNOUNCEMENT
An agreement relating to claims of American
nationals against Yugoslavia was signed on
November 5 at Belgrade by U.S. Ambassador
C. Burke Elbrick and Yugoslav Secretary for
Finance Kiro Gligorov. The negotiations
which led to the signing of the agreement began
in Belgrade over a year ago.
The claims covered by the agreement arose
out of nationalization and other taking by
Yugoslavia of property of American nationals
subsequent to July 19, 1948, the date of the last
claims agreement with Yugoslavia.^ The agree-
ment provides that the Government of Yugo-
slavia shall pay in settlement of the claims the
sum of $3,500,000 in five annual installments of
$700,000 each, beginning January 1, 1966.
The claims will be adjudicated by the Foreign
Claims Settlement Commission of the United
States when the Congress appropriates fimds
for its expenses. That Commission will at
the appropriate time announce procedures for
the filing of claims.
' For text, see B0i,letin of June 15, 1964, p. 936.
°62 Stat. 2658; Treaties and Other International
Acts Series 1803.
TEXT OF AGREEMENT
Agreement Between the Government of the Unit-
ed States of America and the Government of the
Socialist Federal Republic of Yugoslavia Regard-
ing Claims of United States Nationals
The Government of the United States of America and
the Government of the Socialist Federal Republic of
Yugoslavia, desiring to effect a settlement of claims of
United States nationals against the Government of the
Socialist Federal Republic of Yugoslavia, have agreed
as follows:
Abticle I
(a) The Government of Yugoslavia agrees to pay,
and the Government of the United States agrees to ac-
cept, the sum of $3,500,000 United States currency in
full settlement and discharge of all pecuniary claims
of nationals of the United States, whether natural or
juridical i)ersons, against the Government of Yugo-
slavia, on account of the nationalization and other
taking of property and of rights and interests in and
with respect to property which occurred between July
19, 1948 and the date of this Agreement.
(b) Such payment by the Government of Yugoslavia
shall be made to the Secretary of State of the United
States in equal payments of $700,000 each. The first
payment shall be made on January 1, 1966, and the
remaining payments shall be made on January 1, 1967,
January 1, 1968, January 1, 1969 and January 1, 1970,
respectively.
Article II
The claims of nationals of the United States to which
reference is made in Article I of this Agreement refer
to claims which were owned by nationals of the United
States on the date on which the property and rights and
interests in and with respect to proi)erty on which they
are based was nationalized or taken by the Government
of Yugoslavia and on the date of this Agreement.
I
Article III
The distribution of the lump sum referred to in
Article I of this Agreement is witliin the exclusive com-
petence of tJie Government of the United States in ac-
cordance with its legislation and without any responsi-
bility arising therefrom for the Government of
Yugoslavia.
Article IV
With a view to assisting the Government of the
United States in its distribution among claimants of
the lump sum referred to in Article I of this Agree-
ment, the (Sovornnient of Yugoslavia will, uixm the
retiuost of the Government of the United States, with
respect to property claimed furnish certified copies of
pertinent public records of ownership, mortgages and
exemptions from nationalization or taking, certified
copies of pertinent decrees or orders of competent
Yugoslav authorities with respect to the nationaliza-
tion and other taking and, to tJio extent available, origi-
830
DEPARTKENT OF STATE BtJLLETIN
nal or certified copies of pertinent Yugoslav oflScial
evaluations.
The Government of tlie United States will furnish
to the Government of YuRoslavia certified copies of
such formal submissions as may be made by claimants
to the Government of the United States for participa-
tion in the lump sum to be paid by the Government of
Yugoslavia pursuant to this Agreement and of the
corresponding decisions with respect thereto. Upon
receipt of such decisions the Government of Yugoslavia
will inform the Government of the United States if the
property or right or interest in and with respect to
property claimed was not in fact owned by the claim-
ant or was not in fact nationalized or otherwise taken
by the Government of Yugoslavia.
The documents and information referred to herein
will be furnished by the respective Governments as
expeditiously as possible.
Abticle V
The present Agreement shall enter into force on the
date of the exchange of notes confirming that it has
been approved by the competent authorities of both
Governments.
In witness whereof the undersigned, being duly au-
thorized thereto by their respective Governments, have
signed the present Agreement.
Done at Belgrade on the 5th day of November, 1964,
in duplicate, in the English and Serbo-Croatian lan-
guages, both texts being equally authentic.
For the Government For the Government
of the United States of the Socialist Federal
of America Republic of Yugoslavia
C. Burke Elbbick Kieo Gugokov
Ambassador Member of the Federal
of the United States Executive Council,
of America. Federal Secretary
for Finance.
Interpretative Minute
For the purpose of the Agreement between the Gov-
ernment of the United States of America and the
Government of the Socialist Federal Republic of Yugo-
slavia regarding Claims of United States Nationals
signed at Belgrade, November 5, 1964, it is understood
that:
1. Rights and interests in and with respect to prop-
erties which have not been established through probate
or other appropriate legal proceedings in Yugoslavia
are covered and settled by this Agreement for the
amount of the equity or value remaining after deduc-
tion of Yugoslav taxes which would have been payable
if such probate or other legal proceedings had been
concluded.
2. Properties or parts thereof which have been ex-
empted from nationalization or other taking by the
Government of Yugoslavia in accordance with the laws
of Yugoslavia are not covered or settled by this Agree-
ment.
3. Rights and interests in and with respect to proper-
ties which are mortgaged or otherwise encumbered by
an owner or the owners thereof are covered and settled
by this Agreement for the amount of the equity or value
remaining after deduction of the principal amount of
such mortgage or other encumbrance.
Belgrade, November 5, 1964.
C. BuBKE Elbeick
KiBO Gliqokov
Related U.S. Note
Belgrade, November 5, 1964
Excellency, I have the honor to acknowledge receipt
of your letter of this date which reads as follows :
"With reference to the Agreement between the Gov-
ernment of the Socialist Federal Republic of Yugoslavia
and the Government of the United States of America
regarding claims of United States Nationals signed in
Belgrade, November 5, 1964, I have the honour to in-
form you that under the respective Yugoslav Laws
foreign nationals are entitled to equal treatment with
Yugoslav nationals in respect of compensation for na-
tionalization or other takings of property; conse-
quently, claims of nationals of the United States which
were not owned by nationals of the United States on
the date on which the property or the rights and inter-
ests in and with respect to property on which they are
based was nationalized or taken by the Government of
Yugoslavia, will be treated by the Government of Yu-
goslavia under compensation procedures prescribed by
Yugoslav Laws no less favorable than those of Yugo-
slav nationals for similar property or rights and
interests in and with respect to property."
I have the honor to inform you, that my Government
has taken note of the statement quoted above.
Accept, Excellency, the assurances of my highest
consideration.
0. BuBKE Elbrick
His Excellency
KiRO Gligorov,
Member of the Federal Executive Council,
Federal Secretary for Finance
Belgrade
United States and Yugoslavia Sign
Educational Exchange Agreement
Press release 484 dated November 9
The Governments of Yugoslavia and the
United States signed at Belgrade on November
9 an agreement providing for exchange of stu-
dents, professors, teachers, research scholars,
and other persons in the academic field.
The agreement was signed at noon (6 a.m.,
e.s.t.) by American Ambassador C Burke El-
DECEMBER
1964
831
brick and Janez Vipotnik, Federal Secretary
for Education and Culture. Among those at-
tending the ceremony were Senator J. William
Fulhright, chairman of the Senate Foreign Re-
lations Committee and coauthor of the legisla-
tion authorizing exchange activities, and Wil-
liam R. Tyler, Assistant Secretary of State for
European Affairs.
On a less fonnal basis, the United States and
Yugoslavia have conducted exchanges since
1958. The principal new feature is that the
program will now be administered in Yugo-
slavia by a binational commission, thus benefit-
ing from the greater continuity and joint par-
ticipation afforded by similar arrangements
with nearly 50 other countries throughout the
world.
Tlie commission will consist of four Ameri-
cans resident in Yugoslavia appointed by the
chief of the United States diplomatic mission
and four Yugoslavs appointed by the Federal
Secretary for Education and Culture. The ap-
pointing officers will serve as honorary co-
chairmen.
The commission is authorized to spend up to
600 million Yugoslav dinars ($800,000) ac-
quired by the United States through the sale
of suiplus agricultural commodities and sub-
ject to congressional appropriation.
The chief functions of the commission will be
to plan, adopt, and carry out exchange programs
and to recoinmend American and Yugoslav
candidates for grants. Final selection of all
grantees rests with the Board of Foreign Schol-
arships, a 12-member citizens' group appointed
by the President to supervise the academic ex-
change program.
The agreement, on which negotiations were
begun in Belgrade in 1959, is similar to those
in effect with 48 other countries. In still an-
other 87 countries and territories, where no for-
mal agreements or commissions exist, exchange
activities are the responsibility of the American
Embassy.
The Department of State's educational ex-
change programs, authorized in 1946 by the
Fulbright Act and extended 2 years later by the
Smith-Mundt Act, became fully operative in
1948. Administered by the Department's Bu-
reau of Educational and Cultural Affairs, they
are now conducted imder the Mutual Educa-
tional and Cultural Exchange Act of 1961, also
known as the Fulbright-Hays Act, which con-
solidated and expanded the previous legislation
governing these programs.
Ratifications Exchanged Witli Brazil
for Extradition Treaty
Press release 492 dated November 17
Secretary of State Dean Rusk and Ambas-
sador Juracy Magalhaes of Brazil on November
17 exchanged instruments of ratification of the
extradition treaty signed January 13, 1961,^
and the accompanying protocol, signed Jime 18,
1962.
The extradition treaty is similar in form and
content to other extradition treaties of the
United States and provides for the surrender,
on a reciprocal basis, of persons who have been
charged with or convicted of any of the offenses
enumerated in the treaty. The protocol con-
firms the understanding of the two Governments
that the surrender by either country of its na-
tionals is not obligatory. ■
By their terms, the treaty and the protocol 1
will enter into force 1 month after the exchange
of ratifications.
Current Actions
MULTILATERAL
Aviation
Convention for unification of certain rules relating
the precautionary attachment of aircraft. Done at
Rome May 29, 1933. Entered into force January 12,
1937.'
Accession* deposited: Algeria, July 13, 1964; Sene-
gal, September 1, 1964.
Diplomatic Relations
Vienna convention on diplomatic relations ;
Optional protocol to Vienna convention on diplomatic
relations concerning compulsory settlement of dis-
putes.
Done at Vienna April 18, 1961. Entered into force
April 24, 1964.'
Ratification deposited: Ecuador, September 21, 1964.'
' Kor text, see Bulletin of Jan. 30. 1961, p. 164.
' Not In force for the United States.
' Withdrew reservation to convention made at time
of signature.
832
DEPARTMENT OF STATE BULLETIN
Postal Services
Universal postal convention with tinal protocol, annex,
regulations of execution, and provisions regarding
air mail, with final protocol. Done at Ottawa Oc-
tober 3. 1957. Entered into force April 1, 1959.
TIAS 4202.
Adherence: Kenya, October 27, 1964.
Safety of Life at Sea
International convention for the safety of life at sea
Done at London June 17, I960.'
Acceptance deposited: NeUierlands, October 16, 19G4.
Telecommunications
International telecommunication convention with six
annexes. Signed at Geneva December 21, 1959.
Entered into force January 1, 1961. TIAS 4892.
Ratification deposited: Brazil, October 6, 1964.
Radio regulations, with appendixes, annexed to the
international telecommunication convention, 1959.
Done at Geneva December 21, 1959. Entered into
force May 1, 1961. TIAS 4893.
notification of approval: Senegal, October 9, 1964.
Partial revision of the radio regulations (Geneva,
1959) with annexes and additional protocol. Signed
at Geneva November 8, 1963. Enters into force
January 1, 1965. TIAS 5603.
Notifications of approval: Group of Territories rep-
resented by the French Overseas Post and Telecom-
munication Agency, October 7, 1964 ; Mali, October
13, 1964 ; Senegal, October 9, 1964.
BILATERAL
Signed at Rio de Janeiro Janu-
Brazil
Treaty of extradition.
ary 13, 1961.
Ratifications exchanged: November 17, 1964.
Enters into force: December 17, 1964.
Additional protocol to the extradition treaty of Jan-
uary 13, 1961. Signed at Rio de Janeiro June 18,
1962.
Ratifications exchanged: November 17, 1964.
Enters into force: December 17, 1964.
Yugoslavia
Agreement for financing certain educational exchange
programs. Signed at Belgrade November 9, 1964.
Entered into force November 9, 1964.
German War Documents Volume
Released by Department
The Department of State announced on November 18
(press release 486 dated November 10) the release of
Documents on German Foreign Policy, 1918-19i5, Se-
ries D, Volume XIII, The War Years, June 23-Decem-
ter 11, 1941. This volume terminates series D, which
* Not in force.
covers the period 1937-11. Two more volumes, V and
VI, which are being edited and printed in London, re-
main to be is.sucd for series C, which covers the first
phase of the Third Reich, 1933-37. Thus the tripartite
project (Americau-British-French) will have produced
in English tran.slation 19 volumes of documents from
the archives of the former German Foreign Ministry,
illustrating the foreign policy of Germany from Hitler's
appointment as Chancellor in January 1933 until his
declaration of war on the United States in December
1941.
Volume XIII begins on June 23, 1941, immediately
following the German attack on Soviet Russia, and
ends on December 11, when Hitler declared war on the
United States following the Japanese attack at Pearl
Harbor.
The 578 documents of this volume (most of which
are hitherto unpublished) are presented in chronologi-
cal order, but the analytical list of the papers is ar-
ranged by topic so that the reader may ea.sily follow
any principal subject. The subjects on which there
are the largest number of documents in this volume
are: France, Italy, Japan, the Middle East, Spain,
Sweden, Turkey, the U.S.S.R., the United States, and
Yugoslavia.
As has been the practice in this series, the selection
of documents has been made jointly by the BritLsh,
French, and U.S. editors, who share responsibility for
the selections made. Under a reciprocal arrangement,
some of the volumes are edited and printed by the
British and some by the U.S. Government. This vol-
ume has been edited by the U.S. editors and printed at
the Government Printing Office. A British edition is
being relea.sed simultaneously in the United Kingdom.
Copies of the volume. Department of State publica-
tion 7682, can be obtained from the Superintendent of
Documents, U.S. Government Printing OflSce, Washing-
ton, D.C., 20402, for $4, bound in buckram.
Recent Releases
For sale Jiy the Superintendent of Documents, V S
Government Printing Office, Washington, D.C 20/,02
Address requests direct to the Superintendent of Docu-
ments, except in the case of free publications, which
may be obtained from the Office of Media Services
Department of State, Washington, D.C, 20520.
The United States and The Middle East. This publi-
cation is one in a new series of regional pamphlets It
contains an explanation of the term "Middle East" and
points out factors important to U.S. objectives in this
area: to seek peace and prosperity for everyone; to
contain the spread of communism; and to encourage
all peoples to improve their own lots without outside
interference. Pub. 7706. Near and Middle Eastern
series 74. 8 pp. 100.
The United States and Africa. The first publication
issued in the new series of regional pamphlets. It
outlines U.S. foreign policy aims to help the new
African nations establish independent and stable gov-
ernments, strive for higher standards of living for
their peoples, and develop free societies and institu-
DECEMBER 7, 1964
833
tions in harmony with their own beliefs and cultures.
Pub. 7710. African series 40. 15 pp. 150.
Democracy vs. Dictators in Latin America— How Can
We Help? Foreign Affairs Outline No. 8. Article
based on an address by Thomas C. Mann, Assistant Sec-
retary of State for Inter-American Affairs at the Uni-
versity of Notre Dame, Notre Dame, Indiana. Pub.
7729. Inter-American series 90. 6 pp. 50.
The UN . . . action agency for peace and progress.
Leaflet describing purpose, structure, and objectives
of the United Nations. Pub. 7733. International
Organization and Conference series 55. 12 pp. 100.
Partial Revision of Radio Regulations, Geneva, 1959,
and Additional Protocol. U.S. and Other Governments.
Revision and additional protocol — Signed at Geneva
November 8, 1963. Date of entry into force with re-
spect to the U.S. January 1, 1965. TIAS 5603. 467
pp. $1.25.
Mutual Defense Assistance— Cash Contribution by
Japan. Arrangement with Japan, relating to the agree-
ment of March 8, 1954. Exchange of notes— Signed
at Tokyo July 9, 1964. Entered into force July 9,
1964. TIAS 5611. 5 pp. 5<t
Maritime Matters— Use of Danish Ports and Waters
by the N.S. Savannah. Agreement with Denmark-
Signed at Copenhagen July 2, 1964. Entered into force
July 2, 1964. TIAS 5612. 4 pp. 50.
Maritime Matters— Use of Swedish Ports and Waters
by the N.S. Savannah. Agreement with Sweden. Ex-
change of notes — Signed at Stockholm July 6, 1964.
Entered into force July 6, 1964. TIAS 5613. 5 pp. 50.
Petroleum. Agreement, with agreed minutes, with
Korea— Signed at Seoul May 12, 1964. Entered into
force September 3, 1964. TIAS 5614. 9 pp. 100.
Peace Corps Program. Agreement with Panama. Ex-
change of notes — Signed at PanamA October 30, 1963.
Entered into force July 6, 1964. TIAS 5615. 7 pp.
100.
Agricultural Commodities— Sales Under Title IV.
Agreement with Chile, amending the agreement of
August 7, 1962, as amended. Exchange of notes —
Signed at Santiago June 30, 1964. Entered into force
June 30, 1964. With related notes. TIAS 5616. 9 pp.
100.
Agricultural Commodities. Agreement with United
Arab Republic, amending agreement of October 8, 1962,
as amended. Exchange of notes — Signed at Cairo
June 30, 1964. Entered into force June 30, 1964. TIAS
5617. 2 pp. 50.
Trade in Cotton Textiles. Agreement with Greece.
Exchange of notes — Signed at Washington July 17,
1964. Entered into force July 17, 1964. TIAS 5618.
6 pp. 50.
Trade in Cotton Textiles. Agreement with Turkey.
Exchange of notes— Signed at Washington July 17,
1964. Entered into force July 17, 1904. Effective
July 1, 1964. With related notes. TIAS 5619. 8 pp.
100.
Agricultural Commodities. Agreement with Tunisia,
amending the agreement of April 7, 1904. Exchange
of notes — Signed at Tunis July 7, 1964. Entered into
force July 7, 1964. TIAS 5620. 3 pp. 50.
Atomic Energy — Application of Agency Safeguards to
Certain United States Reactor Facilities. Agreement
with International Atomic Energy Agency — Signed at
Vienna June 15, 1904. Entered into force August 1,
1904. TIAS 5021. 7 pi). 100.
Atomic Energy — Cooperation for Civil Uses. Agree-
ment with Viet-Nam, amending agreement of April 22,
1959 — Signed at Washington June 9, 1964. Entered
into force August 10, 1964. TIAS 5622. 3 pp. 50.
Atomic Energy — Cooperation for Civil Uses. Agree-
ment with China, amending agreement of July 18, 1955,
as amended — Signed at Washington June S, 1964.
Entered into force August 6, 1964. TIAS 5623.
3 pp. 50.
Arbitration — Air Transport Service. Agreement with
Italy, relating to agreement of February 6, 1948, as
amended — Signed at Rome June 30, 1964. Entered into
force June 30, 1964. TIAS 5624. 6 pp. 50.
Agricultural Commodities. Agreement with Greece,
amending agreement of October 30, 1903. Exchange
of notes — Signed at Athens July 14 and 16. 1964.
Entered into force July 16, 1964. TIAS 5625. 2
pp. 50.
Maritime Matters — Use of Spanish Ports and Terri-
torial Waters by the N.S. Savannah. Agreement with
Spain. Exchange of notes — Signed at Madrid July
16, 1964. Entered into force July 16, 1964. TIAS 5626.
10 pp. 100.
Agricultural Commodities. Agreement with Viet-Nam,
amending agreement of January 9, 1964, as amended.
Exchange of notes — Signed at Saigon July 24. 1964.
Entered into force July 24, 1964. TIAS 5627. 3
pp. 50.
Trade — Exports of Cotton Velveteen Fabrics from
Italy to the United States. Agreement with Italy,
amending the agreement of July 6, 1962. Exchange of
notes — Dated at Washington July 29, 1964. Entered
into force July 29, 1964. Operative January 1, 1964.
TIAS 5628. 2 pp. 50.
Check List of Department of State
Press Releases: November 16-22
Press releases may be obtained from the Office
of News, Department of State, Washington, D.C.,
20520.
Releases issued prior to November 16 which
appear in this issue of the Bulletin are Nos.
480 of November 5 ; 483 and 484 of November 9 ;
486 of November 10; and 488 of November 14.
No. Date Subject
489 11/16 Busk: "Trade and the Atlantic
Partnership" (printed in Bul-
letin of November 30).
*490 11/16 U.S. participation in international
conferences.
491 11/16 Ball: German-American Confer-
ence, Berlin (printed in Bul-
letin of November 30).
492 11/17 U.S.-Brazil extradition treaty and
protocol ratified.
493 11/17 Rusk : ceremonies of American So-
ciety of International Law for
presentation of medal to Philip
C. Jessup (as-delivered text).
*494 11/18 Rostow: "The Atlantic Agenda."
495 11/18 Desalination agreement with
U.S.S.R.
' Not iirinted.
834
DEPARTMENT OF STATE BULLETIN
IN'3EX December 7, 1964. Vol. LI, No. 1328
American Republics
Population Growth and the Alliance for Progress
(Mann) 807
President ReaflSmis U.S. Support Tor Alliance
for Progress 804
Brazil. Ratifications Exchanged With Brazil
for Extradition Treaty and Protocol . . . 832
Claims and Property. United States and Yugo-
slavia Conclude Claims Agreement (text) . . 830
Congress. Congressional Documents Relating
to Foreign Policy 820
Economic Affairs
East- West Trade: The Iron Curtain Eighteen
Years Later (Wright) 815
D.S. and Japan Reach Agreement To Govern
King Crab Fishing (joint announcement) . . 829
Educational and Cultural Affairs. United
States and Yugoslavia Sign Educational Ex-
change Agreement . . , 831
Europe. East- West Trade: The Iron Curtain
Eighteen Years Later (Wright) 815
Foreign Aid
Major Objectives of the Foreign Aid Program
(Bell) 821
Population Growth and the Alliance for Prog-
ress (Mann) 807
President Reaffirms U.S. Support for Alliance
for Progress 804
Germany. German War Documents Volume Re-
leased by Department 833
Health, Education, and Welfare. Population
Growth and the Alliance for Progress
(Mann) 807
International Law. The role of International
Law in World Affairs (Riisk) 802
Japan. U.S. and Japan Reach Agreement To
Govern King Crab Fishing (joint announce-
ment) 829
Mexico. President-Elect of Mexico Visits Presi-
dent Johnson at LB J Ranch (Diaz Ordaz,
Johnson) 805
Presidential Documents
President-Elect of Mexico Visits President
Johnson at LBJ Ranch 805
President Reaffirms U.S. Support for Alliance
for Progress 804
Publications
German War Documents Volume Released by
Department 833
Recent Releases 833
Science
The Promise of Science and Technology ( Steven-
son) 810
U.S. and U.S.S.R. To Cooperate in Field of De-
salination (text of agreement) 828
Treaty Information
Current Actions 832
Ratifications Exchanged With Brazil for Extra-
dition Treaty and Protocol ... ... 832
U.S. and Japan Reach Agreement To Govern
King Crab Fishing (joint announcement) . . 829
U.S. and U.S.S.R. To Cooperate in Field of De-
salination (text of agreement) 828
United States and Yugoslavia Conclude Claims
Agreement (text) 830
United States and Yugoslavia Sign Educational
Exchange Agreement 831
U.S.S.R. U.S. and U.S.S.R. To Cooperate In
Field of Desalination (text of agreement) . 828
United Nations
Current U.N. Documents 828
The Promise of Science and Technology (Steven-
son) 810
U.S. Mission Expresses Views on Question of
U.N. Financing (Adebo, Stevenson, Wil-
liams) 826
Yugoslavia
United States and Yugoslavia Conclude Claims
Agreement (text) 830
United States and Yugoslavia Sign Educational
Exchange Agreement 831
Name Index
Adebo, S. O 826
Bell, David E 821
Diaz Ordaz, Gustavo 805
Johnson, President 804, 805
Mann, Thomas C 807
Rusk, Secretary 802
Stevenson, Adlai E 810, 826
Williams, Franklin H 826
Wright, Robert B 815
U.S. GOVERNMENT PRINTING 0FFICE:I964
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u.s. government printing office
WASHINGTON. D.C. 2040a
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OFFICIAL BUSINESS
A NEW LEAFLET SERIES ON FOREIGN COUNTRIES
Background Notes
These leaflets ai-e short, factual summaries, especially useful for students, teachers, and study groups
and for travelers and businessmen going abroad. They describe briefly the people, history, government,
economy, and foreign relations of each country. Each contains a map, a list of the principal govern-
ment officials and U.S. diplomatic and consular officers, and, in some cases, a selected bibliography.
The Background Notes listed below are the first in the series and are now available from the Super-
intendent of Documents, U.S. Government Printing Office, Washington, D.C, 20402, at 6 cents each.
ORDER FORM
BACKGROUND NOTES— 5 cents each
Please send me copies of Background Notes as lodicated below:
TO:
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SUPT. OF DOCUMENTS
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GOVT. PRINTING OFFICE
riaylnn (piih 77.-.7) Pnkisf.fln Ipiih 774S)
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ADDRESS 1
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THE OFFICIAL WEEKLY EECOED OF UNITED STATES FOBEIQN POLICY
THE
DEPARTMENT
OF
STATE
BULLETIN
Vol LI, No. 1S29
December U, 198^
UNITED STATES COOPERATES WITH BELGIUM IN RESCUE OF HOSTAGES
FROM THE CONGO 838
THE TRADE UNION MOVESfENT AND SOCIAL PROGRESS
IN THE WESTERN HEMISPHERE
Address by Secretary Bvsk 81)9
THE INDUSTRY ROLE IN TRADE NEGOTIATIONS
by WiUiam M. Roth BBS
For index see inside back cover
United States Cooperates With Belgium in Rescue
of Hostages From the Congo
Following is a series of documents relating,
first, to unsuccessful efforts of the U.S. Govern-
ment to assure the safety of American nationals
in rehel-held territory in the Congo and, second,
to its subsequent cooperation with Belgium in
the landing of rescue missions at Stanleyville
on November 24- «^ o^i Paulis on November 26.^
MESSAGE FROM SECRETARY RUSK TO JOMO
KENYATTA, NOVEMBER 16 '
Kebel leaders in Stanleyville have announced
that they will today execute an American mis-
sionary doctor, Dr. Paul Carlson, who has been
falsely accused of espionage and of being a
major in the United States Army. The United
States Government declares unequivocally that
Dr. Carlson is not in any way connected with
' The first seven of these documents, together with
the Department statements of Nov. 26 and 28, were
read to news correspondents by representatives of the
Ofl3ce of News.
" Mr. Kenyatta is Prime Minister of Kenya and chair-
man of the Ad Hoc Commission on the Congo of the
Organization of African Unity. Copies of Secretary
Rusli's message were also delivered in the capitals of
the other countries represented on the Commission.
the U.S. military and has been engaged only in
his activities as a medical missionary. Dr. Carl-
son is a man of peace who has served the
Congolese people with dedication and faith for
3% years, taking care of the sick and wounded,
including members of the rebel forces. His
execution on charges which are patently false
would be an outrageous violation of interna-
tional law and of accepted standards of humani-
tarian conduct. My Government holds the rebel
leaders directly responsible for the safety of Dr.
Carlson and all other American citizens in areas
under rebel control.
It is now clear from this case as well as other
information coming out of Stanleyville that the
situation in Stanleyville is rapidly collapsing
into anarchy. Under these circumstances, the
world — and most particularly those nations
whose citizens are directly threatened by the
lawlessness and violence in Stanleyville — must
look to the OAU as well as the Congolese Gov-
ernment to take rapid and effective action to
protect the lives of innocent civilians, Congolese
and foreigners, in Stanleyville.
Most immediately, I urge you to bring all of
your influence to bear to prevent this act of
DEPARTMENT OF STATE BULLETIN VOL. LI, NO. 1329 PUBLICATION 7789 DECEMBER 14, 1964
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838
DEPARTMENT OF STATE BULLETIN
atrocity against an innocent human being and
to intervene at once with the rebel authorities to
permit the entry into Stanleyville of the Inter-
national Red Cross to assure the safety of all
foreigners in rebel-held territory. I strongly
urge as well that representatives of the OAU
Ad Hoc Commission accompany the ICRC. I
have asked that this appeal be supported by
member governments of the OAU Ad Hoc
Commission.
MESSAGE TO REBELS FROM U.S. AMBASSA-
DOR, G. McMURTRIE GODLEY, NOVEMBER 17 >
Stanleyville Radio has reported the convic-
tion and condemnation to death of an Ameri-
can missionary, Dr. Paul Carlson, on the un-
founded charge of espionage. The Secretary of
State has already written to Mr. Kenyatta,
chairman of the OAU Ad Hoc Commission,
urging steps to prevent this violation of inter-
national law and of accepted standards of hu-
manitarian conduct.
My Government has now instructed me to
inform you again that it holds the authorities
at Stanleyville directly and personally responsi-
ble for the safety of Dr. Carlson and of all
American citizens in areas under your control.
As you know, this Government along with
other nations has fully supported the unsuccess-
ful efforts of the ICRC and the OAU Ad Hoc
Commission to get your agreement to an ICRC
humanitarian mission in Stanleyville and to ar-
rangements to protect and evacuate innocent
civilians. We continue to stand ready to co-
operate fully in such humanitarian efforts and
to discuss arrangements through these organi-
zations. We are so advising the chairman of
the OAU Ad Hoc Commission and urge you to
communicatft with him in this matter.
MESSAGE FROM CHRISTOPHE GBENYE TO
MR. KENYATTA, NOVEMBER 18 •
I acknowledge receipt of your telegram and
repeat that we hold personally responsible all
American authorities for the Congo massacres.
Major Paul Carlson has been sentenced to death.
This sentence was confirmed by this morning's
popular meeting ; due to OAU inter\'ention, we
have postponed the execution pending negoti-
ations. We are also prepared to cooperate in aU
humanitarian efforts to reach any arrangement
through sole intermediary of the OAU for
which purpose we have detailed Thomas Kanza.
MESSAGE FROM AMBASSADOR GODLEY TO
MR. GBENYE, NOVEMBER 19 •
Mr. Gbenye : Your message ' proposing nego-
tiations regarding the status of American na-
tionals in Stanleyville and indicating that you
have been negotiating on this subject with our
consul, Mr. [Michael P. E.] Hoyt, hag been
received.
My Government has instructed me to advise
you that we stand ready at any time for dis-
cussions to insure the safety of United States
nationals now in the Stanleyville area. If you
will name the place and time and designate Mr.
Kanza or any other representative of your
choice, a representative of the United States
Government will be prepared for discussions in
Nairobi or another capital in East and Central
Africa.
If you prefer, as indicated in your message,
to hold such discussions under the auspices of
the OAU, we will await further notification
from you or the OAU and, similarly, send a
representative at any time for this purpose. In
order to facilitate such discussions we urge you
to provide our consul, Mr. Hoyt, with facilities
for communication with this Government in
accordance with normal diplomatic practice.
My Government awaits your reply.
MESSAGE FROM MR. GBENYE TO AMBASSA-
DOR GODLEY, NOVEMBER 20
Inform you that Thomas Kanza, assisted by
Jomo Kenyatta, President, Ad Hoc Commission
for Congo, and Diallo Telli, Secretary General
of the OAU, is charged by us with the carrying
out in Nairobi of preliminary negotiations on
prisoners of war. Request you fix date
negotiations.
^ Broadcast to Stanleyville.
' This is a public report ot a message relayed to the
United States from Nairobi.
• Not printed here.
DECEMBER 14, 1964
839
REPLY FROM AMBASSADOR GODLEY TO MR.
GBENYE, NOVEMBER 20
In response to Mr. Gbenye's telegram received
here today requesting the U.S. Government to
fix a date for discussions in Nairobi, my Gov-
ernment has directed me to inform you that it
has instructed Ambassador [William] Attwood
in Nairobi to propose such a meeting •with
Prime Minister Kenyatta, ilr. Kanza, and such
other persons as tliey may -wish for noon
Nairobi time, November 21.*
STATEMENT BY BELGIAN GOVERNMENT,
NOVEMBER 20
Unofficial translation
Following certain rumors concerning the
transfer of First Paratroop Battalion, the
spokesman for the Foreign Ministry has made
the following statement :
"With the aid of American planes the First
Paratroop Battalion has been transported to
He Ascension, where it is quartered with the
authorization of the British Government. The
Belgian and American Gtjvemments have con-
sidered it their duty in view of the threat to
their nationals and civilians in general in the
region of Stanleyville to take preparatory meas-
ures in order to be able to effect, if necessary, a
hvunanitarian rescue operation. In the present
situation, therefore, this is only a precautionary
measure. The Belgian Government firmly
hopes to see the Stanleyville authorities safe-
guard the lives of our nationals who are there.
U.S. LETTER TO PRESIDENT OF SECURITY
COUNCIL, NOVEMBER 21
U.N. doc. S/6056 dated November 22
For many weeks a situation of extreme dan-
ger to the lives of innocent civilians has pre-
vailed in Stanleyville and surrounding areas
in the Congo. Many innocent Congolese and
foreigners have been mistreated and killed.
Threats have been made and are currently in
effect against the lives of others.
Appeals have been made by the Congolese
Government, by the Ad Hoc Commission of the
Organization of African Unity, by various
Governments, and today jointly from thirteen
Governments, that the lives of these hostages be
spared. Tlie International Committee of the
Red Cross has for many weeks also sought in
vain permission to carry out its recognized re-
sponsibilities. The lives of citizens of at least
eighteen Member nations of the United Nations
are involved.
On 20 November the United States Govern-
ment received a message from Christophe
Gbenye suggesting preliminary discussions in
Nairobi and asking that the United States fix a
time for these discussions. The United States
immediately accepted this suggestion and Am-
bassador Attwood in Nairobi proposed a meet-
ing with Prime Minister Kenyatta, Chairman
of the Conciliation Commission of the Organi-
zation of African Unity, Mr. Gbenye's repre-
sentative, Mr. Thomas Kanza, and .such other
persons as they desired for mid-day in Nairobi
on 21 November. Ambassador Attwood did
meet with Mr. Kenyatta and Organization of
African Unity Secretary General Diallo Telli.
However, it is not known where Mr. Kanza is
and no meeting with him has taken place thus
far.
Inasmuch as at least one execution threat has
only been held in abeyance until Monday, we
believe that the Security Council needs to be
informed of the situation in case it proves nec-
essary for the Coimcil to take steps to help
protect the lives of the innocent people in-
volved. The United States Government there-
fore fully associates itself with the letter of
today's date from the Government of Belgium
to the President of the Security Council.'
I should appreciate it if you would circulate
this letter as a document of the Security
Council.
Adlai E. Stevzxson
Perrrmnent Representative of the United
States of America
' Mr. Kanza did not appear for the meeting of Xov.
21. On Nov. 23 he met at Nairobi with Mr. Kenyatta,
Mr. Diallo Telli, and Mr. Attwood, but a Department
of State spokesman later that day described the out-
come of the meeting as unsatisfactory.
' UJf. doc. 8/6055.
840
DEPARTMENT OF STATE BULLETTN
DEPARTMENT STATEMENT, NOVEMBER 24
Press release 499 dated November 24
The U.S. Government has just received con-
firmation that a sliort time ago — early morning
of November 24 in the Congo — a unit of Belgian
paratroopers carried by United States military
transport planes landed at Stanleyville in the
Congo. This landing has been made (1) with
the authorization of the Government of the
Congo,* (2) in conformity with our adherence
to the Geneva Conventions, and (3) in exercise
of our clear responsibility to protect U.S. citi-
zens under the circumstances existing in the
Stanleyville area.
The purpose of this action is to save the lives
of innocent men, -women, and children, both
Congolese and citizens of at least 18 foreign
countries. More than 1,000 civilians have been
held as hostages by the Congolese rebels. They
have been threatened repeatedly with death by
their captors. The decision to send in a rescue
force was taken only after the most careful
deliberation and when every other avenue to
secure the safety of these innocent people was
closed by rebel intransigence. This decision
was made jointly by the United States and Bel-
gian Governments with the full knowledge and
agreement of the legal Government of the
Congo. The immediate mission is the rescue
of innocent civilians and the evacuation of those
who wish to leave the area. When this mission
is accomplished, the rescue force will be with-
drawn promptly.
The rebel authorities revealed in late August
that they were holding foreign civilians as
hostages. Late in October the rebel leaders is-
sued statements that the safety of these civilians
could not be guaranteed.
Thousands of innocent civilians, Congolese
and foreign, have been subjected in recent
months to inhumane and unlawful treatment by
rebel forces in the Congo. Some have been
killed; others have been tortured. Mission-
aries and other individuals whose lives have
been devoted to unselfish service to the Congo-
lese people have been maligned and mistreated.
"For test of a letter of Xor. 21 from Congolese
Prime Minister Moise Tshombe to Ambassador Godley,
see p. S43.
Some have been tried in "courts" that have no
legal standing, deprived of competent advice of
counsel, and foimd guilty of spurious charges.
In some cases, when rebel troops have evacuated
an area, organized gangs and uncontrolled mobs
have carried out mass killings of Congolese and
some foreigners.
The safety of the civilians in the Stanleyville
area is a matter of wide international concern.
In addition to Congolese nationals, citizens of
Argentina, Austria, Belgium, Canada, Cyprus,
France, Germany, Greece, Haiti, India, Ireland,
Italy, the Netherlands, Pakistan, the Sudan,
Switzerland, the United Kingdom, and the
United States are in Stanleyville. Citizens of
other countries are probably also present.
Tlie rebels' action in holding and threatening
hostages is in direct violation of the Geneva
Conventions and accepted humanitarian prin-
ciples. Moreover, the harassment and mistreat-
ment of civilians have continued in rebel-held
areas despite repeated protests and appeals from
international organizations and interested gov-
ernments. The efforts of the International
Committee of the Red Cross to carry out its
traditional humanitarian role in such circimi-
stances have been repeatedly frustrated by the
rebel leaders. Proposals for evacuation of for-
eigners from Stanleyville under United Nations
and ICRC auspices have been rejected. Appeals
from the Organization of African Unity and
from a concilimn of 16 signatories of the Geneva
Conventions have also proved fruitless.
We agreed to discuss with rebel representa-
tives arrangements for release of the American
hostages. Our Ambassador in Nairobi under-
took these discussions. However, it quickly be-
came clear that the rebel representative was not
concerned with the safety of the hostages or
other himianitarian considerations but rather
sought to use the lives of these civilians for
political purposes. We therefore have informed
the rebel representative through Prime ilinister
Kenyatta that \mder these circimistances we
cannot continue these talks.
In order to protect the lives of innocent civil-
ians in the Stanleyville area the Government
of the Congo has authorized external help in
rescuing them. Accordingly, the Government
of Belgium dispatched a contingent of para-
BH
troops to accomplish the rescue and the United
States Government supplied transport aircraft.
This operation is humanitarian — not mili-
tary. It is designed to avoid bloodshed — not to
engage the rebel forces in combat. Its purpose
is to accomplish its task quickly and with-
draw— not to seize or hold territory. Person-
nel engaged are under orders to use force only
in their own defense or in the defense of the
foreign and Congolese civilians. They will de-
part from the scene as soon as their evacuation
mission is accomplished.
We are informing the United Nations and the
OAU Ad Hoc Commission of the purely hu-
manitarian purpose of this action and of the
regrettable circumstances that made it neces-
sary.
U.S. LETTER TO PRESIDENT OF SECURITY
COUNCIL, NOVEMBER 24
U.N. doc. S/6062
I have the honour to inform you that, at the
request of the Government of Belgivmi and with
the authorization of the Government of the
Democratic Republic of the Congo, the United
States Government has provided air transport
for a mission of mercy to effect the release of
over 1,000 civilian hostages from eighteen na-
tions held in and around Stanleyville in the
Congo. The mission was conducted at day-
break today, Stanleyville time.
The necessity for this emergency rescue oper-
ation, carried out against threats of mass execu-
tions, is illustrated by the murder of an Ameri-
can missionary. Dr. Paul Carlson.
According to information now available to
my Government many hostages have already
been rescued. A large number of them are be-
ing treated for injuries suffered at the hands
of their captors. An unknown number of other
hostages have been murdered. Precise infor-
mation is not yet available from the area, but
according to a report received by telephone this
morning from the American Consul in Stanley-
ville, who was among those rescued, the hos-
tages held with him were "convinced they would
be dead by today. They were also convinced
that only the airdrop saved them."
The prisoners — men, women and children —
were civilian citizens of some eighteen sovereign
nations and were in no way involved in the
hostilities in the Congo.
They were held as hostages in clear violation
of the Geneva Conventions on the Treatment of
Victims of War.
For more than three months, the United Na-
tions, the International Committee of the Red
Cross, the Ad Hoc Commission of the Organi-
zation of African Unity, the Government of the
Congo and various Governments whose citizens
were illegally detained made repeated and vig-
orous efforts to secure the rights and release of
the prisoners — all of which were ignored or
rejected.
Most recently thirteen signatories of the
Geneva Conventions issued from Geneva an ap-
peal to permit the International Committee of
the Red Cross to perform its services for all vic-
tims in the Congo. This appeal too went un-
heeded.
Threats to murder the hostages by military
leaders and by the radio in Stanleyville con-
tinued through 22 November.
The United States Government persisted in
its efforts to secure the release of these hostages
until 23 November, when a representative from
Stanleyville, meeting with the United States
Ambassador to Kenya in Nairobi, refused to
discuss the release of the hostages except on con-
ditions which my Government had neither the
moral nor the legal right to consider and which
made it clear that he was attempting to bargain
with their lives for political and military pur-
poses.
In these circumstances the United States sup-
plied the transport aircraft to help accomplish
the rescue mission. The sole purpose of this
humanitarian mission was to liberate hostages
whose lives were in danger. It will be with-
drawn upon completion of its task.
I am transmitting for your information a
copy of a statement by the Government of the
United States ° and of the letter of the Prime
Minister of the Democratic Republic of the
Congo to the United States Ambassador in
Leopoldville on this matter. I respectfully re-
quest you to distribute copies of this letter, to-
■ See p. 841.
842
DEPilRTMENT OF STATE BULLETIN
gether with the attachments as a Security
Council document.
As more details become known my Govern-
ment may wish to report further to the Security
Coimcil on subsequent developments.
Adlai E. Stevenson
Permanent Representative of the United
States of America
Letter from the Prime Minister of the Democratic Re-
puhlio of the Congo to the American Amla^sador in
Leopoldville, 21 November 1964
I write to you on behalf of the Chief of State and
following the conversations we have had.
As you know, those who mounted the rebellion
against the Government of the Congo have mistreated
and killed many innocent Congolese and foreigners.
The Government of the Congo has on several occasions
appealed to the rebel leaders to accord humane treat-
ment to the civilian population, in accordance with
the profound desire of the Congolese people and with
humanitarian principles, which are also the principles
of the Geneva Convention.
The Chairman of the Ad Hoc Commission of the
Organization of African Unity has made similar ap-
peals, and the International Committee of the Red
Cross has for many weeks sought In vain to obtain
permission from the rebels to carry out its traditional
humanitarian functions in order to protect the rights
and lives of all civilians in Stanleyville. The rebels
have made no adequate response to these repeated
appeals.
In view of the deteriorating situation in Stanleyville
and the failure of all humanitarian efforts, and because
of the odious blackmail conducted by the rebel leaders
in Stanleyville, the need arises to do everything possi-
ble to prohibit them from carrying out their criminal
design against the persons of the innocent civilians
whom they are holding as hostages.
The Government of the Democratic Republic of the
Congo has accordingly decided to authorize the Belgian
Government to send an adequate rescue force to carry
out the humanitarian task of evacuating the civilians
held as hostages by the rebels, and to authorize the
American Government to furnish necessary transport
for this humanitarian mission.
I fuUy appreciate that you wish to withdraw your
forces as soon as your mission is accomplished.
It is expressly specified that this rescue operation,
whose purpose is exclusively humanitarian, cannot en-
tail any delay in the missions assigned to the Congo-
lese National Army, or any change in the Government's
decision to end the activities of the rebel elements once
and for all. It is recognized that this humanitarian
mission cannot lead to any solutions with regard to
the rebels different from those which it rests with the
Government of the Congo to seek in the exercise of its
full sovereignty.
Please accept, Sir, the assurances of my high
consideration.
TSHOMBE
INTERVIEW OF UNDER SECRETARY BALL ON
NBC TELEVISION, NOVEMBER 24
Elie Abel [NBC correspondenf] : Mr. Secre-
tary, how can we he stire the United States and
Belgium did not precipitate this murder of the
hostages hy the landing in Stanleyville?
Mr. Ball: Well, obviously that was one of the
hard questions that faced the President when he
made this decision to go ahead and faced the
Belgian Government when they joined with us
in this decision. One never knows what the
ejflFect of a landing of this kind might be. But
the situation was deteriorating to the point
where we felt that it couldn't hold very much
longer, and, in fact, Mr. Hoyt, who is our consul
in Stanleyville and who has been one of the
hostages for 3 months, has told us, first of all,
that it was the opinion of everyone there that if
this had gone 24 hours longer they would all
have been executed — they were going to be lined
up against the wall — and, secondly, that only
the airdrop saved their lives.
So we feel pretty confident that this had to
be done. We exhausted every other possibility.
Q. Isn't it true, Mr. Ball, that our own Mr.
Hoyt and the Belgian consul both warned their
Governments not to attack Stanleyville?
A. Well, there had been a succession of mes-
sages, you see, coming out from Radio Stanley-
ville, and one or two of them were signed by
Hoyt and, in fact, one was signed by the two
consuls. It was perfectly apparent that these
messages were under duress, that they were
being made to sign these messages, and in fact
perhaps — we are not clear on it yet — were being
made to say these things over the radio. We
knew that this wasn't their opinion.
Q. We, the United States, told the world last
week that we would hold Mr. Ghenye and his
associates responsible for the life of these
hostages.
A. That's right.
Q. What do we do about that?
DECEMBER 14, 1964
756-299—64 2
843
A. Well, we do exactly what we have said.
Now, as of this afternoon, we haven't any word
that any of the rebel leaders have yet been
found. They apparently fled the city.
Q. We dorCt know where they are?
A. We don't know where they are yet. Of
course they will be run down.
Q. We do have the intention of tracking them
down, even if they escape to other African
countries?
A. Certainly, the Congolese Government has
every intention of tracking them down, and
tliere is a unit of the Congolese Army there
under the leadership of Colonel van der Walle,
who is a Belgian military man.
Q. Mr. Ball, who are these people loho call
themselves — whom we call the Congolese rebels?
Are these the heirs of the late Patrice Lu-
rnumba?
A. To some extent. They are a very heter-
ogeneous lot. After the U.N. had left the
Congo, there was a breakdown of the authority
of the Central Government in many parts of
the country and pockets of insurrection broke
out. And these pockets were led by various
people, some of whom were leftwing, some of
whom had had some Communist training or
were under Communist influence. Some were
simply discontented local politicians, or local
leaders, and they formed a very loose coalition
in Stanleyville under a few leaders, none of
which exercised apparently very great authority
or very great discipline over the people.
Some of these people, the so-called Jeunesse,
were just gangs. They were gangs of young
juvenile delinquents, and they held themselves
out as being the heirs of Patrice Lumumba and
fighting for Communist principles. But, in
fact, in many cases they were just delinquents.
They were a totally irresponsible, destructive,
brutal group.
Q. There has been a good deal of talk, Mr.
Secretary, about possible Convmunist Chinese
instigation here. How much hard evidence do
we have of that?
A. Some. But that isn't the whole story. I
mean there has been some Communist Chinese
influence coming through Bujumbura, where
there is a Communist mission. We have some
evidence of that.
Q. In Burundi, you mean?
A. In Burundi. We have some evidence of
that, but that isn't the whole story. This is the
story of the breakdown of authority. It's the
story of various local leaders with defectors
from the Congolese Army, with people who
were discontented, who are ambitious, who were
self-seeking, and they got together in these lit-
tle clusters and groups and created this great
destruction over the coimtry.
Q. With this apparent victory now for Mr.
Tshombe, do we have any reason to think he will
be any more successful than his predecessors
were in the Central Government in trying to
hold this country together?
A. No, we certainly — it's essential for the res-
toration of the authority of the Central Govern-
ment. This is going to take a great deal of
doing. I tliink Mr. Tshombe is determined to
do everything possible to bring this about.
But the Congo is a very big country, and it's a
hard country to govern.
Q. Thank you very much.
DEPARTMENT STATEMENT, NOVEMBER 26
The rescue mission within Stanleyville has
now been completed and the paratroop force
withdrawn to the Stanleyville aiq^ort area.
Only limited search activity continues in out-
lying areas around Stanleyville for the few
remaining possible evacuees.
In the last 24 hours, however, it has become
clear that rebel groups have collected a large
number of hostages 225 miles to tlie nortli at or
near Paulis. Reports indicate that this group,
comprising perhaps several hundred foreign
civilians — men, women, and children, including
seven Americans — is in imminent peril.
In order to complete the evacuation mission
as rapidly as po.ssible and minimize further loss
of life, a part of the paratroop force has there-
fore l)een flown to Paulis. This unit arrived
at Paulis at 11 p.m. and will complete its evac-
64-1
DEPARTMENT OF STATE BULLETIN
uation mission as rapidly as possible. In keep-
ing with its purpose, the rescue force will
complete its humanitarian mission and with-
draw from the Congo promptly.
U.S. LETTER TO PRESIDENT OF SECURITY
COUNCIL, NOVEMBER 26
U.N. doc. S/GOGS
As reported to you by the Permanent Repre-
sentative of Belgium in his letter of this date,'"
elements of the Belgian paracommando bat-
talion at Stanleyville, transported in American
aircraft, today carried out the rescue in Paidis
of several hundred hostages. This action be-
came necessary when it became clear on 25 No-
vember that rebel groups had collected these
hostages in the Paulis area and that they were
in imminent peril. Subsequent events revealed
the necessity of the action. Reports of the res-
cue action indicate that at least twenty of these
hostages, including one American citizen, were
murdered the previous day, and many others
brutally threatened and physically mistreated.
Onlj' the timely arrival of the rescue mission
prevented a further and more terrible wave of
executions.
The Representative of Belgium has stated
that Belgian troops will be out of Paulis tonight
and the entire paracommando battalion with-
drawn to Kamina tomorrow. He added that the
entire Belgian battalion would be withdrawn
from the Congo as soon as possible and that in
any case the withdrawal operation would begin
this weekend.
I wish to re-emphasize, Mr. President, that
the sole aim of my Government has been and is
to assist in the rescue of innocent civilians en-
dangered by rebel activity in violation of inter-
national law. It is clear from the statements of
the rescued persons themselves that further de-
lay would have meant an even greater number
of wanton and tragic killings. Time, for the
lives of those people, was calculable only in
minutes.
I should appreciate it if you would have this
letter circulated as a document of the Security
Comicil.
Adlai E. Stevenson
Permanent Representative of the United
States of ATnerka
STATEMENT BY PRESIDENT JOHNSON,
NOVEMBER 28 »
Let me add here this statement voluntarily
before I submit for questions, a word about the
Congo and about Africa, which has engaged
our very special attention, as you know, this
week. This terrible experience, this reign of
terror and disorder, these innocent lives sacri-
ficed in political reprisals, constitute a tragedy
for Africa and for the Congo as well as for the
rest of the world.
What has happened in Stanleyville has hap-
pened far too often to Congolese and foreigners
alike on both sides for various conflicts in the
Congo in recent years. The Congo has suf-
fered through more than 4 years of violence and
bloodshed and disunity. It has been an arena
of power struggles and ideological wars. I
hope now that it can have at last a chance for
peace and order and economic recovery, so that
the ordinary people of the Congo can hope for
improvement in their lot and for protection
against the daily threat of violent death.
I have wired the relatives of our citizens who
lost their lives there my feelings and expressed
my gi-eat sympathy for them in this hour. We
lost three Americans. Undoubtedly we would
have lost dozens more had we not acted
promptly and decisively in cooperation with
the Belgian paratroopers. As you know, more
than 4,000 Congolese themselves, most of whom
were people with education — more than 4,000
Congolese in recent months have lost their lives
because of these disorders.
I would like to stress to those of you here at
the ranch this morning that the United States
has no political goals to impose upon the Congo.
We have no narrow interest. We have no eco-
' U.N. doc. S/6067.
" Made at a news conference at the LBJ Ranch,
Johnson City, Tex.
DECEMBER 14, 1964
845
nomic gain to be served in the Congo. We seek
to impose no political solution, neither our own
nor that of some other outsider. We have tried
only to meet our obligations to the legitimate
government and to its efforts to achieve unity
and stability and reconciliation in the Congo.
So we hope now that everyone who has had a
part in this 4-year agony of the Congo will bury
past differences and try to work together in a
spirit of compassion, to help reach these goals
of unity and stability and reconciliation. If
this could happen, perhaps the hundreds of in-
nocent lives, Congolese and foreign, that have
been sacrificed will not have been sacrificed in
vain. We were necessarily a party to the deci-
sions, and I assume full responsibility for those
made for our planes to caiTy the paratroopers
in there in this humanitarian venture. We had
to act and act promptly in order to keep hun-
dreds and even thousands of people from being
massacred. And we did act in time.
Tlie paratroop force that we moved in there
will be moved out tonight, and it will be moved
out of the Congo to Ascension Island in the
South Atlantic Ocean.
DEPARTMENT STATEMENT, NOVEMBER 28
The United States Government rejects the
charge that it has intervened militarily in the
Congo. This charge was contained in a com-
munique issued in Nairobi today by the Ad Hoc
Commission on the Congo of the Organization
of African Unity ( OAU) . As has already been
made clear in official statements, the United
States participated in the rescue mission to Stan-
leyville and Paulis for purely humanitarian
reasons and with the authorization of the Gov-
ernment of the Congo.
This mission was undertaken only because the
rebels had left open no other way to save the
lives of innocent civilians of at least 18 national-
ities, many of whom had been held hostage by
the rebels in direct violation of the Geneva Con-
ventions and accepted humanitarian principles.
The evacuation of all those who could be saved
by this air rescue mission has been completed
and, as was announced today, the entire force
is being withdravm from the Congo tonight.
The United States Government has no com-
ment on other matters raised in the communique
which are matters between the OAU and one of
its sovereign members, the Democratic Republic
of the Congo.
U.S. Reaffirms Its Commitment
to tlie Atlantic Community
Statement hy President Johnson ^
The present discussion of the Atlantic al-
liance that we see in the press and by the com-
mentators, in television and radio, is, I think,
partially the result of a neglect of first principles
that are worth some new attention this morning.
The ultimate essentials of the defense of the
Atlantic coimnunity are the firmness and the
mutual trust of the United States and Europe.
The United States position I should make
abimdantly clear. The safety of the United
States depends upon the freedom of Europe,
and the freedom of Europe depends upon the
strength and the will of the United States.
That strength and that will have never been
clearer, have never been more necessary, than
today.
The United States is committed to the in-
creasing strength and the cooperation of the
Atlantic community in every field of action —
economic, commercial, and monetary. There
are no problems wliich we cannot solve together,
and there are very few which any of us can
settle by himself. The United States sees no
safe future for ourselves and none for any other
Atlantic nation in a policy of narrow national
self-interest. One of the great aspirations
within the Atlantic community is the aspira-
tion toward growing unity among the free peo-
ples of Europe. No nation on either side of
the Atlantic has done more to support tlus pur-
pose than the United States. This support
^vill continue.
Since 1945 the United States has borne a spe-
cial responsibility for the nuclear defense of the
free world. The costs and the complexities of
modem nuclear weapons make it mevitable that
' Made at n news conference at the LBJ Ranch,
Johnson City, Tex., on Nov. 28.
846
DEPARTMENT OF STATE BULLETIN
this American responsibility will continue far
into the future. While we cannot divest our-
selves of this awesome obligation, we can and
we will work earnestly with all of our friends
to find new and better ways by which all in-
terested members of the alliance can increase
their own sense of safety by sharing responsi-
bility in the unified defense of the alliance as a
whole. This is the meaning of our present in-
terest in the multilateral forces. This is the
meaning of our continued readiness to discuss
these problems with every interested ally. I be-
lieve that the Atlantic alliance is only at the
beginning of its time of greatest achievement.
Its success has been proved in 15 years of Atlan-
tic peace. Its differences are differences among
peoples who have learned in the torment of war
that the freedom of each requires the freedom
of all. I look forward with confidence to the
resolution of present differences and the reas-
sertion of the unity which is so deeply in the
common interest of us all.
German Foreign Minister
Tall<s With Secretary Rusk
Joint Comtminique
Press release 504 dated Noyember 26
At the invitation of Secretary of State Dean
Rusk, the German Foreign Minister, Dr. Ger-
hard Schroeder, visited Washington November
22 to 26, 1964. In friendly and frank discus-
sions the Secretary of State and the German
Foreign Minister dealt with numerous current
questions of common interest, including the At-
lantic Alliance, European developments, and
East -West relations.
Tlie Secretary of State and the Foreign Min-
ister agreed that the solidarity and strengthen-
ing of the North Atlantic Alliance continue to
be necessary for the preservation of peace and
the safeguarding of the security of the West.
They noted with satisfaction the progress
achieved in the meetings in Paris of the Eight-
Power Working Group for the preparation of
an MLF [multilateral nuclear force] charter.
They expressed the hope that agreement on this
would be reached soon and that as many mem-
ber nations of the Alliance as possible would
participate in the project.
Foreign Minister Schroeder informed the
Secretary of State of the recent initiative of the
German Government to advance the political
unity of Europe and to strengthen the existing
European Communities, which the Secretary of
State noted with satisfaction. The Secretary
of State and the German Foreign Minister con-
sider a successful continuation of these efforts
and effective progress in the economic negotia-
tions of GATT (Kennedy Roimd) as an impor-
tant contribution towards an Atlantic Partner-
ship.
The Ministers reaffirmed the desire of their
Governments to continue efforts to reduce ten-
sions and to improve relations with the Soviet
Union and the East European states.
Tlie Secretary of State restated the determi-
nation of the United States to continue the
policy regarding Germany and Berlin which
it has consistently pursued. He agreed with
the German Foreign Minister that every op-
portunity should be seized in discussions with
the Government of the Soviet Union, in keeping
with the joint responsibility of the Four Pow-
ers, to bring about Soviet cooperation in the
task of restoring German unity. The Secre-
tary of State and the German Foreign Minister
stressed the importance of the Three Power
Declaration of June 26, 1964,^ concerning Grer-
many and Berlin. They agreed that stability
in Europe and durable relaxation of tension re-
quire a just and peaceful solution of the Ger-
man question, on the basis of the right of self-
determination, and with due regard for the
security interests of the powers concerned.
Under Secretary Ball Departs
for Meetings at London and Paris
Departure Statement
Press release 506 dated November 27
I am leaving for Europe this afternoon pri-
marily to participate in the annual ministerial
' For text, see Bulletin of July 13, 1964, p. 44.
DECEMBER 14, 1964
847
meeting of the Organization for Economic Co-
operation and Development, which meets in
Paris December 2 and 3. The OECD is the
central institution through which the principal
industrial nations of the free world are coordi-
nating their economic policies. It will be the
first meeting at which Japan will attend as a
full member.
As chief of the United States delegation I
shall make clear the determination of President
Johnson's administration to cany forward the
broad lines of economic policies that we have
pursued throughout the postwar period. These
policies reflect the high degree of inter-
dependence that today exists among the in-
dustrialized nations. One of the most impor-
tant of them is the liberalization of trade which
we hope to achieve through the Kennedy Eound.
I shall use the occasion of this trip to visit
London on November 30 and December 1 in
order to review with the new British Govern-
ment a wide range of problems, both economic
and political.
I also expect to see the French Foreign Min-
ister and the French Finance Minister when I
am in Paris.
U.S. Gratified at International
Monetary Cooperation
Statement by President Johnson ^
This week we witnessed a remarkable demon-
stration of the strength of international mone-
tary cooperation. Eleven nations, including
the United States, and the Bank for Interna-
tional Settlements arranged with the United
Kingdom to provide credit facilities totaling $3
billion to defend the pound sterling against
speculative pressure. We are gratified (liat
these arrangements were worked out so speedily
and with such widespread international partici-
pation. This action should give the United
Kingdom the breathing space needed to carry
out an effective program for improving its
balance-of- payments position.^
Of course, none of us was pleased that the
Federal Reser\'e was obligated to raise our dis-
count rate as a precautionary move in response
to international developments. However, as
Chairman Martin [Federal Reserve Board
Chairman William McChesney Martin] has
clearly stated, this move is not intended to re-
strict the availability of credit to the domestic
economy and does not lead us to expect any
significant increase in the cost of domestic long-
term credit, either from banks or in the capital
market. We can coimt on monetary policies
that continue to meet the credit needs of a non-
inflationary expansion.
This expansion is about to enter its 46th con-
secutive month, an unprecedented record of
peacetime prosperity. Although strikes in the
automobile industry dampened our economic
performance in October and early November,
there is encouraging evidence that the miderly-
ing economic forces remain sti'ong:
Housing starts showed a welcome 9-percent
rise in October.
New orders received by manufacturers con-
tinued to exceed shipments, indicating further
strength in manufacturing production in the
coming months.
Outside of durable goods manufacturing,
which showed the efl'ects of (he strike, noiifai-m
payroll employment scored a good gain of
180,000 persons in October.
Excluding sales by auto dealei-s, retail sales
were 614 percent above last year for the -4 weeks
ended November 21.
Now that the auto strikes are behind us, this
imderlying strength should again become fully
apparent. The coming holiday season will liiid
our economy setting new records for produc-
tion, employment, incomes, and sales.
' Made at a news conference at the LB.T Rnncli,
Johnson City, Tex., on Nov. 28 (White House press re-
lease (Austin, Tex.)).
' For statements released on Oct. 2G by the Depart-
ment of State and the Treasury, see 15l-lletin of Nov.
16, 1964, p. 714.
848
DEP.Mn'MKNT VV STATE BULLETIN
The Trade Union Movement and Social Progress
in the Western Hemisphere
Address hy Secretary Rusk '
It is indeed a pleasure for me to be here today
to speak to the eighth graduating class of the
American Institute for Free Labor Develop-
ment. I congratulate each of you, its members,
not only for completing successfully this course
but for having earned a position of leadership
in the free trade union movement of your
country.
I am glad also to have this opportunity to
compliment the American labor movement and
American management for setting up this con-
structive and far-reaching program. And it is
of course appropriate that the president of the
American Institute for Free Labor Develop-
ment should be the president of the most com-
prehensive labor organization in the United
States, the AFD-CIO — liimself a great, reso-
lute fighter for freedom, democracy, and social
justice, George Meany.
This Washington center opened in Jime
1962. I imderstand that since then it has
trained— including this class — more than 270
labor leaders. And I am told that by the end
of this year the local Latin American institutes
will have trained more than 6,500 leaders.
Last year President Kennedy said,=
It is not coincidence that wherever political de-
mocracy flourishes in the modern world there is also
' Made before the graduating class of the American
Institute for Free Labor Development, Washington,
D.C., on Nov. 23 (press release 497; as-delivered text).
- For text of a message from President Kennedy to
the Inter-American Conference of Ministers of Labor
on the Alliance for Progress, which met at Bogota,
Colombia, May 6-11, 1963, see Bulletin of June 3,
1963, p. 884.
a strong, active, responsible, free trade-union move-
ment.
This, I think, defines the essence of the Amer-
ican Institute's purpose in strengthening demo-
cratic trade unions in Latin America : to dem-
onstrate that social and economic progress can
best be achieved in a democratic society and
that free trade unions have a vital contribution
to make to that progress. We know this to be
true from the experience of the United States
and of other parts of the free world.
Labor and management in the United States
have long recognized that their common respon-
sibilities and interests go far beyond wages,
hours, and working conditions, as important as
those things are. They also know that they are
partners in responsible cooperation with gov-
ernment in helping to build a better society for
all its members.
A growing and free economy is essential to
social progress. Only that kind of economy can
produce the jobs needed for a growing popula-
tion, the wages needed to sustain a growing
standard of living, the income needed to finance
better education, health, housing, and other as-
pects of social progress.
Also, as the world has learned from watching
the efforts of several types of totalitarian gov-
ernments in recent decades, it is not enough to
be concerned alone with living standards or
social problems generally. These must be re-
lated to humanistic and democratic systems
and to peaceful and nonaggressive foreign poli-
cies. Lack of adequate attention to these latter
aspects has already within our lifetime led to
attempts to eliminate entire races and to wage
aggressive wars toward world domination.
DECEMBER 14, 196 4
849
Trade unions in the United States are among
the strongest advocates of a free economic and
social system, because that system has been
enormously successful in acliieving economic
growth through increasing production while as-
suring that the laboring man has a full oppor-
tunity to increase his standard of living by
sharing fairly in the fruits of higher produc-
tivity.
To these objectives the trade union movement
has long dedicated itself in the United States.
Today, through the American Institute of Free
Labor Development, it has dedicated itself to
these same objectives on a broader scale by offer-
ing its talents and its funds and experience to
advance the Alliance for Progress.
Your institute is to be congratulated not only
for its excellent work in training Latin Ameri-
can labor leaders but also for launching exten-
sive programs in workers' housing, credit facili-
ties. Food for Peace activities, and other
constructive efforts in cooperation with trade
unions in Latin America.
Democracy takes a host of related institutions
to function effectively. These include not only
government, education, and industry but demo-
cratic institutions in such fields of activity as
cooperatives, credit unions, self-help housing,
agricultural extension services, transport, such
social organizations as the Boy Scouts and the
Campfire Girls, League of Women Voters, and
businessmen's associations, health and vacation
clubs — in fact any democratic organization in
any walk of life which a group may consider im-
portant. For such voluntary associations vast-
ly strengthen the democratic framework of a
nation.
The support which the American labor move-
ment is giving to the American Institute for
Free Labor Development is only one example
of its enormously helpful role in the worldwide
struggle between freedom and tyranny. This
struggle remains the underlying crisis of our
time. It will not end until freedom prevails
throughout the world. As Secretary of State,
I am particularly conscious of, and grateful for,
the stalwart backing which the AFL-CIO has
given to our foreign policies and the instruments
necessary to make tliem effective — ranging from
powerful military forces necessary to prevent or
to repel aggression, through our foreign aid
programs, our efforts to negotiate agreements to
reduce the dangers of war, and our unceasing
endeavors to strengthen the institutions of inter-
national cooperation, among the most important
of which are the Organization of American
States and the United Nations.
Economic Inefficiency of Communism
In the contest between communism and free-
dom it has become increasingly plain that com-
munism is not only politically and culturally
repressive but economically inefficient. We used
to hear about rapid rates of growth in the So-
viet Union and some other Communist states.
But what do the figures show? From 1950 to
1963 the Soviet Union increased its gross na-
tional product by approximately $148 billion
and the other Communist states of Eastern Eu-
rope increased theirs by approximately $48 bil-
lion— a total of $196 billion. In the same period
Western Europe and Canada increased their
gross national product by ajiproximately $200
billion and the United States alone increased its
GNP by $210 billion. The total GNP of the
North Atlantic community is approximately $1
trillion — more than 2^/^ times that of the Soviet
Union and other European Cormnunist coim-
tries combined.
In the same period Japan alone increased its
GNP by approximately the same amount as
Communist China, with seven or more times
Japan's population. And many other free
Asian nations made notable economic advances.
Thus the gap in production — and in living
standards — between the Commimist societies
and the efficient industrial and agricultural
countries of the free world has grown wider.
It is these efficient and well-rounded free na-
tions which have achieved not only tlie highest
levels of well-being, most widelj' distributed,
but the more rapid rises in living standards.
The economic failures and shortcomings of
communism have become increasingly evident
to leaders and peoples of the Communist states
themselves. That is why Communist leaders
in the Soviet Union and other Euroj^ean Com-
munist nations are talking more and more about
incentives, and larger private plots for farmers,
and even about profits.
850
DEPAUTMENT OF STATE BULLETIN
The Alliance for Progress
In the Western Hemisphere we have com-
pleted the third year of a great cooperative eco-
nomic and social undertaking, the Alliance for
Progress.
The Alliance for Progress has given the peo-
ple of Latin America a new hope that the bet-
ter life which they desire can and will come.
It has offered an alternative to the status quo,
on the one hand, and violent cliange, on the
other. It has provided means to achieve eco-
nomic progress and social justice through the
peaceful transformation of societies. It is a
democratic revolution.
While the alliance is a commitment by gov-
ernments of tliis hemisphere for at least a dec-
ade of sustained effort, and it can be assessed
only in that relatively long perspective, some
trends already are evident.
Through it, in the Americas we have
strengthened the hand of democratic leadership
and are helping to build better societies. And
because of it the forces of commimism have
been put on the defensive in this hemisphere.
In all of its tests of strength in the Western
Hemisphere — whether by terrorism, infiltra-
tion, example, or democratic processes — com-
mimism is losing. It is not the wave of the
future. Freedom is that wave.
Let me direct your attention to some of the
gains registered since the signing of the Charter
of Punta del Este ' little more than 3 years ago.
Nine nations have prepared national plans
for development, and every member is working
on such plans. Prior to the alliance, only three
nations were working on development plans,
which are necessary to establish priorities for
the expenditure of scarce human skills and
money.
Twelve nations have approved and intro-
duced agrarian reform legislation, as against
only four prior to 1961. Such basic procedures
as land titling for liomesteaders and surveys of
land ownership are being established.
Fifteen nations have inaugurated or im-
proved self-help housing programs. United
States assistance, under the alliance, has
helped build more than a quarter of a million
homes, some of them through the 74 savings and
loan associations which have been established or
through the funds provided to 13 housing banks
or loan departments.
Every coimti-y has improved its tax admin-
istration system — so much in some coimtries
that tax revenues have been raised by as much
as 30 percent. Nine countries have passed tax-
reform legislation.
Eight countries have created specialized of-
fices of planning for education.
Eleven nations have established, or increased
the resources of, their development banks or
funds which provide new sources of capital for
the small businessman.
Admittedly, progress during the early stages
has been uneven and, in some countries, slow.
But 1964 has been an encouraging year. The
economic indices for Latin American produc-
tion and trade, as well as the terms of trade,
have improved. Governments and peoples of
several countries which had been in financial
and economic difficulty took vigorous remedial
measures. And the machinery of the alliance
was improved.
CIAP Report on Latin American Development
I have in mind particularly the formation
of the Inter- American Committee on the Alli-
ance for Progress, called CIAP after its initials
in Spanish. Chaired by the distinguished Co-
lombian, Dr. [Carlos] Sanz de Santamaria, and
composed of seven Latin Americans and one
North American, CIAP signifies that the pri-
mary responsibility for conducting the alliance
must lie with the nations and peoples of Latin
America. It also recognizes the strong im-
pulses in Latin America to break out of the
traditional national approaches to develop-
ment— an impulse already working toward
increased economic unity. Like the strength-
ened national institutions and programs of the
members of the alliance, CIAP is a guarantor
of further progress.
CIAP has just completed its first review of
the development efforts of each of the countries
of Latin America.* Its report surveys the in-
ternal efforts and resources as well as the ex-
' For text, see ifeiW., Sept. 11, 1961, p. 463.
* For a statement made by Pre.si<lent Johnson on
Nov. 13 regarding the report, see ibid., Dec. 7, 1964,
p. 804.
DECEMBER 14, 1964
851
temal economic assistance needed for develop-
ment. It also calls attention to a series of
major problems requiring special attention.
Its views will be given serious consideration by
the United States. Among them are the needs
to make greater efforts to modernize rural life,
to attack and prevent inflation, to strengthen
country development planning, to accelerate
the preparation and execution of development
projects, to generate an expanded level of for-
eign trade, and to prepare more adequate plans
for investment in education, health, and hous-
ing.
Of particular interest is the view of CIAP
that present efforts to expand the role of the
private sector should be enlarged. I note with
interest its observation that :
The historic theoretical debate on socialism versus
capitalism is giving way to an objective and functional
judgment in each Latin American country, based on
its own experiences, institutions and laws, as to how
and where the balance should be struck between the
public and private sectors.
A similar trend got miderway in Western
Europe a number of years ago. And, more re-
cently, it has appeared in many of the Asian
and African countries, whose leaders were in-
itially wedded to theory but have learned from
experience. It is a wholesome trend — indeed,
one that is essential to rapid economic advance.
We believe that each nation has the right to
find its own way in the world, by its own free
choice, and in conformance with its own his-
tory, tradition, and culture. At the same time
we believe, on the basis of the proven experience
of many nations, that competitive, private en-
terprise— with such governmental controls as
national experience indicates are essential —
produces an unrivaled combination of material
progress and private freedom.
In addition to the issues to which CIAP has
called our attention, there are still problems of
Commimist subversion and terrorism. And the
democratic peoples of the Western Hemisphere
will never bo content imtil their friends, the
Cuban people, recover their freedom, resume
their proper place in the councils of the hemi-
sphere, and become active partners in the Al-
liance for Progress.
I think we are justified in facing the future
with confidence. Everywhere in Latin America
one can perceive a growing phalanx of men and
women — many of them young and only now as-
suming responsibility — determined to bring to
their peoples the benefits of modem science and
teclinology, and to do so in ways which are loyal
to their own traditions and to their own aspira-
tions.
And I am sure that the United States will
not slacken its interest or its support of the
goals set forth in the Alliance for Progress. We
are determined to do our part to make this
hemisphere a family of friends and neighbors
vmited in the protection of their traditions and
their independence and in their common com-
mitment to achieve a better life for all of our
peoplas.
On the occasion of the graduation of another
class of the American Institute for Free Labor
Development, in July [July 2] of this year,
President Johnson wrote in a letter to George
Meany :
I encourage the graduates of this . . . class to re-
turn to their homelands and join with other free and
responsible labor groups to achieve the goal of the
AlUance for Progress : to demonstrate to the entire
world that man's unsatisfied aspiration for economic
progress and social justice can be achieved by free
men working within a framework of democratic in-
stitutions.
Labor, under responsible and forward looking lead-
ership, has a great role to play in achieving our dream
of a great society throughout the Americas.
You as individuals and as leaders of the
democratic trade movement have a rare oppor-
tunity for sennce to your fellow citizens in the
hemisphere, a large responsibility for helping
to modernize j'our societies, and an imniense
challenge to show once again the strength of
free societies in attaining economic growth and
social justice.
This is an enviable task whicli you liave l>e-
gun, for you will be working on the frontiers of
j'our countries' efforts to build the better so-
cieties promised by the Alliance for Progress.
You are privileged to take places of leadership
in these efforts. To help channel man's dis-
content with injustice and his aspirations for a
better life into constructive and responsii)le
achievement is a noble task, for wliich your
dedication and skills will be put to good tise.
I wish you every success.
852
DEPARTMENT OF STATE BULLETIN
The Industry Role in Trade Negotiations
hy William M. Roth
Deputy Special Representative for Trade Negotiations '
As you know, the Kennedy Round of trade
negotiations passed a major milestone on Mon-
day [November 16] last week. On that day in
Geneva the major trading nations of the world
exchanged their lists of industrial exceptions — •
items which they wish to witliliold from all or
part of the 50-percent linear cut which is the
overall objective of the negotiations. At the
same time Canada, wliich because of her special
industrial structure is not taking part in the
linear cut, offered a package of tariff conces-
sions which it deemed equivalent to what the
other nations were offenng.
We would not have come this far without a
great deal of support and cooperation from
industiy. I doubt, in the first place, whether
the Trade Expansion Act of 1962, which made
these current negotiations possible, could have
been enacted without the support of much of
industry. This is not to say, of course, that
there was no opposition ; some of you here, out
of your own strong convictions, may have op-
posed the act, and some may still be skeptical.
Nevertheless, as a businessman, I must say that
I think with pride of the part that many or-
ganizations representing the business commu-
nity have played in promoting the bipartisan
policy of trade liberalization which is embodied
in this act.
Certainly we could not have prepared our
exceptions list without the active cooperation
of industry. This work began with simultane-
ous public hearings before the Tariff Commis-
sion and the Trade Liformation Committee, an
rnteragency committee chaired by a represen-
'Address made before the Mamifacturing Chemists'
Association at New Yori£, N.Y., on Nov. 24.
tative of our office. During the 4 months of
these hearings, hundreds of brief.s were sub-
mitted and hmidreds of witnesses made per-
sonal appearances — most of them, of course,
representing industrial interests. I should like
to express at this time my great appreciation
for the thought and effort which many indus-
trias, including the chemical industry, devoted
to the preparation of their briefs and their
testimony.
All of this information was digested and an-
alyzed by the Government agencies concerned.
It was supplemented by special studies, .some of
them very extensive indeed, conducted by our
office or by other Government agencies. Thus,
when the process of fonnulating the U.S. excep-
tions list began within Government, it was
against a background of factual information
that was both wide and deep.
This process began with the Trade Staff Com-
mittee, an interagency committee chaired by a
representative of our office. Seven departments
were represented in this comtnittee by senior
members of their staffs — Commerce, State,
Agriculture, Labor, Interior, Defense, and the
Treasury— plus a nonvoting representative of
the Tariff Commission. The recommendations
of the Trade Staff Committee went forward to
the Trade Executive Committee, again chaired
by a representative of our office and including
representatives, at the assistant secretary level,
from the seven departments I have already men-
tioned. The findings of this committee were
furtlier reviewed by Governor Herter [Chris-
tian A. Herter, Special Representative for
Trade Negotiations] and went forward to the
Trade Expansion Act Advisory Committee, a
853
Cabinet committee representing the same seven
departments and chaired by Governor Herter.
Then the exceptions list was submitted to the
President, who has the ultimate responsibility
under the Trade Expansion Act, and received
his approval.
Thus the process of preparing our exceptions
list involved literally hundreds of experienced
officials, in all the departments of Government
concerned with trade and at all levels, right to
the top. It was done carefully, thoroughly, in-
deed meticulously — and was repeatedly re-
viewed. With the vital interests of all segments
of our economy involved, as they are in these
negotiations, we did everything humanly pos-
sible to insure that the decisions were fair and
solidly based upon all the facts obtainable. It
has been an enormous task, and on many, many
evenings the lights have burned late in our cor-
ridor of the Executive Office Building.
Give-and-Take Bargaining Process
The exceptions list which we submitted in
Geneva is, of course, strictly confidential, and
we are trying our best to keep it so. I can, how-
ever, make two observations about it. First, it
was prepared in accordance with the letter and
spirit of unanimous resolutions at GATT min-
isterial meetings in 1963 and 1964, in which we
took part, that the list be held to "a bare mini-
mum." Second, I need hardly remind you that
these initial lists are merely tentative opening
gambits in a process of give-and-take bargain-
ing which may and probably will go on for
some months.
Late Wednesday evening a State Department
courier arrived here with the lists of the other
countries which took part in the November 16
exchange of lists. These lists are now being
carefully analyzed within the Government in
preparation for the next stage in the negotia-
tions— the stage called "confrontation and jus-
tification."
This is a process which takes place in a num-
ber of international forums nowadays. There is
no question of anything being voted up or down.
Wliat happens is that each nation involved sub-
mits its position to critical examination by the
other nations involved. For example, nation a
may have a certain product on its exceptions
list. If nation & feels that this is unfair, it has
the opportunity at this time to complain about
it, that is, to "confront" nation a. It may cite
facts and figures, for example, to prove that the
industry in nation a which makes this product
is thriving and could easily cope with increased
competition resulting from lower tariff. In
turn, nation 6 has a responsibility to "justify"
placing this product on the exceptions list, with
evidence tending to show that its producers are
actually in poor shape and substantial loss in
employment would result from lower tariffs.
We expect this process of "confrontation and
justification" to get underway in Geneva soon
and to continue into January. And we hope
that substantive negotiations on both industry
and agriculture can begin early in 1965.
Nontariff Barriers
We have also given a great de-al of attention
to nontariff barriers — both to those of other
nations which may affect our expoi-ters and to
nontariff barriers which other nations may
charge against us. As a result of meetings in
Geneva this past summer, six working groups
have been set up to study nontariff barriers of
various kinds and, if possible, to negotiate con-
cerning them. The groups set up so far are
concerned with standards of customs valua-
tion, government procurement policies, ad-
ministrative and teclinical regulations, taxes,
quantitative restrictions, and antidiuiiping
regulations. Other groups will be set up if
necessary.
As you know, a great many nontariff' bar-
riers, particularly quantitative restrictions im-
posed for balance-of-payments reasons, have
been done away with in recent years. The non-
tariff barriers that remain are mostly hard-core
in character, with deep political, economic, or
fiscal roots. Nevertheless, we look forward to
serious negotiations in this field, but we will
consider concessions ourselves only in return for
reciprocal concessions by our negotiating
partners.
It is no secret — it has been widely published
ill the press — that the European Economic
Community is making a particularly vigorous
attack upon the "American selling price" sys-
tem of customs valuation. Despite what you
854
DEPARTSIKNT OF STATE BtlLLETIX
may read, we ourselves have not yet deteiTained
our policy in tliis regard. We know that, in
ajiy event, we must bo fully prepared with the
facts and figures. Making ample use of com-
puters, we are deeply involved in studies of this
subject which, we believe, will yield more liard
facts about the actual impact of ASP than any-
one lias ever gathered before.
It is no secret, likewise, tliat our "Buy
American" laws and regulations have been
under heavy criticism. Hei-e we are following
a cards-on-the-table policy. We are saying to
some of our tradmg partners: "At least you
know what our government procurement pro-
cedures are — they are set down in black and
white. For our part, we should like to know
how it happens that your government never
buys American products nor awards a contract
to an American bidder."
It is evident — and I have not discussed agri-
culture and the trading interests of the less
developed countries, wliich also are essential
aspects of the negotiations — that we have a full
■agenda for the coming months. It is clear that
we will continue to need, in abundant measure,
the help and cooperation of the major economic
groups in America. Indeed, the Trade Expan-
sion Act specifically requires us to seek infor-
mation and advice from representatives of
industry, agriculture, and labor. To fulfill the
letter and spirit of this legal requirement, two
major steps have been taken.
First, the President has appointed, upon
Governor Herter's recommendation, a Public
Advisory Committee on Trade Negotiations,
consisting of 45 prominent citizens — leaders in
industry, agriculture, labor, the professions, and
consumer affairs.^ The members of this Com-
mittee sei-ve as individuals rather than as repre-
sentatives of their special fields of interest.
They have met a number of times so far. On
each occasion they have received an up-to-date
briefing on the progress of the negotiations and
have been consulted on the most important
pending policy questions. We have benefited
vei-y much from these give-and-take discus-
sions, and I hope that the members of the Com-
mittee feel that they have as well.
Second, a roster of teclinical specialists drawn
from industry, ivgriculture, labor, and consumer
organizations has been established.^ Their
chief function will be to provide our negotia-
tors with factual information (economic, tech-
nological, marketing, et cetera) that is relevant
to the negotiations.
When we need specialized information in any
given field to supplement or update the large
amount of infoimation already gathered by our
office through the public hearings and from
other Goverimient agencies, we shall ask the
technical specialists concerned to provide it.
I should like at this time to acknowledge the
invaluable assistance we have already received
from a niunber of the technical specialists desig-
nated by the various associations representing
the chemical industry.
Mr. Chairman, I thank you for inviting me
to visit and talk with this well-informed audi-
ence and look forward with interest to the con-
tributions of my fellow panelists and to the
questions and discussion.
United States and Italy Begin
Civil Air Transport Consultations
Press release 501 dated November 25
Delegations representing the United States
and Italy began consultations at Washington
on November 25 on several questions concerning
civil air transport relations between the two
coimtries. Among these questions are the air
routes to be operated by Italian and United
States airlines and interpretation of the air
transport services agreement between the two
coimtries. The present consultations are a con-
tinuation of those held at Rome in March of
this year on the same subject.'
The Italian delegation is headed by Gen.
Felice Santini, Director General of Civil Avia-
tion, and that of the United States by Allen K.
Ferguson, Coordinator for International Avia-
tion, Department of State. The U.S. delega-
tion will include G. Joseph Minetti, Member of
the Civil Aeronautics Board.
' For background, see Bulletin of Mar. 23, 1964,
p. 457, and Aug. 31, 1964, p. 313.
^ For background, see iftirf., Oct. 12, ]964. p. 517.
^ For text of a joint communique released at Rome
on Mar. 23, see Btilletin of Apr. 20, 1964, p. 628.
DECEMBER 14, 1964
855
Sir Winston Cliurchili Observes
His 90th Birtiiday
EXCHANGE OF MESSAGES
White House press release dated November 30
President Johnson to Sir Winston
I know I speak for all Americans, your fel-
low citizens, in extending warmest congratula-
tions and affectionate best wishes on your 90th
birthday. As you celebrate this milestone in
a full and eventful life we remember with grati-
tude, and future generations will continue to do
so, your magnificent eloquence, your unfailing
courage and your great service to the cause of
freedom and human dignity.
Lyndon B. Johnson
Sir Winston to President Johnson
I am most grateful to you, Mr. President, for
your heartwarming message. As an honorary
citizen of the United States, I send my com-
patriots my thanks and my true good wishes.
Winston S. Chdechill
PROCLAMATION 3630 >
Sib Winston Churchill Day
Whereas Sir Winston Churchill will <*lebrate on
November 30, 19C4 his 90th birthday ; and
Whereas, in testimony of the American people's deep
respect and affection for him, this great national leader
and world statesman was, on April 9, 1963, proclaimed
an honorary citizen of the United States ; ' and
Whereas, by his courage, vision and leadership, his
place in the history of freedom is permanently en-
shrined ; and
Whereas, in his own lifetime he has come to embody
a statesmanship that serves all men's desires for liberty
and human dignity ; and
Whereas, this significant milestone — in the life of
this great man — is deserving of special recognition :
Now, THEREFonK, I, Lyndon 15. Johuscm, I'resident of
the United Slates of America, do hereby proclaim Mon-
day, Xovemlier ;«), l!m4 Sir Winston tlliiirchill Day.
I invite the people of the United States to mark this
event and celebrate the occasion by arranging and par-
ticipating in appropriate ceremonies worthy of this
day.
In witness whereof, I have herewith set my hand
and caused the Seal of the United States of America
to be affixed.
Done at the City of Washington this thirtieth day
of November, in the year of our liOrd nineteen
[seal] hundred and sixty-four, and of the Independ-
ence of the United States of America the one
hundred and eighty-ninth.
IumJUJi^/uma^* —
By the President :
W. Avebell Harriman,
Acting Secretary of State.
U.S. and Cambodia To Begin Talks
on Resolving Differences
Department Statement ^
Two days ago, on November 25, the United
States Government proposed to the Eoyal Cam-
bodian Government that the U.S.-Cambodian
talks which had been originally proposed by the
United States on November 16 commence on
December 7. As you know, New Delhi has been
agreed upon as the site for the discussions.
Yesterday the Cambodian Government accepted
the proposed date and confirmed that the Cam-
bodian Chief of State has designated his Privy
Counselor, Mr. Son Sann, as chief Cambodian
representative at tlie talks. He will be assisted
by the Cambodian Ambassador to India, Mr.
Nong Kimny. President Johnson has desig-
nated Ambassador Pliilip W. Bonsai as his
representative at the talks.^ Mr. Bonsai is for-
mer Director of tlie Office of Southeast Asian
Affairs and attended the 195-i Geneva confor-
ence on Indochina. The Ambassador joined
the Foreign Service in 1938. He has served as
' 29 Fed. Reg. 1.'-.941.
' Hulletin of May «, 1903, p. 715.
'■ Read to news correspondents on Nov. 27 by Robert
J. McCloskey, Director of the Office of News.
'The Department aimounced on Nov. 28 that .Em-
bassador Riinsal will be a.ssisted by Henry I^. T. Korcii.
U.S. .Vnibassador to the Republic of Congo (Brazza-
ville), who will be temixirarily detailed to New Delhi
for this purpose. Ambassador Kciren served for 2 years
as Dire*>tor of the Office of Soulheast .\sinn .VITnirs in
the Department of State before assuming his jiresent
post earlier this year.
856
DEP.VKTMENT OF STATE BULLETIN
Ambassador to Colombia, Bolivia, Cuba, and
Morocco. For the past several montlis he has
been serving us a consultant to the Policy Plan-
ning Council in the Department.
No agenda has been fixed or announced. Our
position on these talks is that they should be
aimed at existing differences, that is, resolving
those differences between Cambodia and the
United States, but each side should be free to
introduce any subject relevant to this purjiose.
We would not consider it appropriate to nego-
tiate on matters involving the interests of third
countries without their participation.
Congressional Documents
Relating to Foreign Policy
88th Congress, 2d Session
Regulating the Location of Chanceries in the Distriet
of Columbia. Conference report to accompany S. 646.
H. Kept. 1924. October 1, 1964. 4 pp.
Foreign Assistance Act of 1964. Conference report
to accompany H.R. 113S0. H. Kept. 1925. Octo-
ber 1, 1964. 18 pp.
Activity of the Committee on Interstate and Foreign
Commerce. H. Rept. 1927. October 2, 1961. 33 pp.
Miscellaneous Panama Canal Legislation. Hearings
before the Subcommittee on Panama Canal of the
House Committee on Merchant Marine and Fisheries.
January 16, 1964. 35 pp.
The Foreign Assistance Program. Annual Report to
the Congress for Fiscal Year 1963. H. Doc. 357.
October 3, 1964. 91 pp.
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
President Names Cabinet Committee
for International Cooperation Year
White House press release (Austin, Tex.) dated November 24
President Johnson has named a Cabinet Com-
mittee [for International Cooperation Year]
representing 19 executive departments and agen-
cies to plan and coordinate United States Gov-
ernment participation in International Coop-
eration Year, 1965.
Tlie President proclaimed 1965 as Interna-
tional Cooperation Year in the United States at
a IMiite House ceremony on October 2.^ At
that time he described the quest for peace
through cooperation between nations as "the
assignment of the century."
In accordance with the President's instruction
that the new ICY Committee should be imder
the chairmanship of the Department of State,
Secretary Eusk has designated Harlan Cleve-
land, Assistant Secretary of State for Interna-
tional Organization Affairs, as chairman.
The Committee will organize a concentrated
agency-by-agency study of U.S. participation in
international cooperative activities. Recom-
mendations for new areas of cooperation and
for strengthening or expanding existing inter-
national machinery will be put before a White
House conference on international cooperation
late in 1965. The Committee also will suggest
ways to increase public imderstanding of the
scope and effectiveness of U.S. activities in the
international field.
The Cabinet Committee will work in close co-
operation with the United Nations Association
of the United States of America, which has
agreed at U.S. Government request to coordi-
nate ICY programs of nongovernmental orga-
nizations formally affiliated with the United
Nations as well as those of otlier national orga-
nizations wishing to take part in the observance
of International Cooperation Year.
The United States program is part of a world-
wide observance of International Cooperation
Year, 1965, called for by a resolution of the
United Nations General Assembly in 1963.-
' Bulletin of Oct. 19, 1964, p. 555.
' U.N. doc. A/RES/1907 (XVIII).
DECEMBER 14, 1964
857
Members of the Cabinet Committee in addi-
tion to the chairman are: Mrs. Dorothy H.
Jacobson, Assistant Secretary of Agriculture
for International Affairs; Hollis B. Chenery,
Assistant Administrator for Programs, Agency
for International Development; John G. Pal-
frey, Commissioner, Atomic Energy Commis-
sion ; Thomas G. Wyman, Assistant Secretary
of Commerce for Domestic and International
Business ; Jolm T. McNaughton, Assistant Sec-
retary of Defense for International Security
Affairs; Raymond B. Maloy, Assistant Admin-
istrator for International Aviation Affairs,
Federal Aviation Agency; Lee Loevinger,
Commissioner, Federal Commimications Com-
mission; James M. Quigley, Assistant Secre-
tary of Health, Education, and Welfare ; Henry
P. Caulfield, Jr., Director, Resources Program
Staff, Interior Department ; Norbert A. Schlei,
Assistant Attorney General; George L-P
Weaver, Assistant Secretary of Labor for In-
ternational Labor Affairs ; A. W. Frutkin, As-
sistant Administrator for International Pro-
grams, National Aeronautics and Space
Administration; Arthur Roe, Office of Inter-
national Scientific Activities, National Science
Foundation; Warren W. Wiggins, Associate
Director, Peace Corps; William J. Hartigan,
Assistant Postmaster General; Merlyn N.
Trued, Acting Assistant Secretary of the Treas-
ury; Thomas C. Sorensen, Deputy Director,
U.S. Information Agency; and Francis T. P.
Plimpton, Deputy U.S. Representative to the
United Nations.
United States Delegations
to International Conferences
Inter-American Economic and Social Council
The Department of State announced on No-
vember 23 (press release 496) that Assistant
Secretary Tliomas C. Mann would head the U.S.
delegation to the third annual meeting of the
Inter-American Economic and Social Council
at the ministerial level in Lima, Peru, Decem-
ber 5-14. Assistant Secretary Mann is U.S.
Coordinator of the Alliance for Progress, as
well as U.S. Representative to the Inter-
American Economic and Social Council. The
Lima meeting is to review developments under
the Alliance for Progress.
The ministerial-level meeting was preceded
by a November 30-December 5 meeting at the
expert level. Deputy U.S. Coordinator Wil-
liam D. Rogers served as chairman of the U.S.
delegation to the meeting of experts and, with
Milton Barall, acted as an alternate U.S. repre-
sentative in the ministerial sessions.
Other members of the U.S. delegation to the
ministerial-level meeting were :
Congressional Advisers
Eugene J. McCarthy, United States Senate
F. Bradford Morse, U.S. House of Representatives
Armistead I. Selden, Jr., U.S. House of Representatives
Special Advisers
Ellsworth Bunker, U.S. Representative on the Council
of the Organization of American States
J. Wesley Jones, Ambassador of the United States to
Peru
Tom Killefer, U.S. Executive Director, Inter-American
Development Bank
Harold F. Linder, President and Chairman, Export-
Import Bank of Washington
Anthony M. Solomon, Deputy Assistant Secretary of
State for Inter-American Affairs
Advisers
Henry J. Costanzo, Director, OflSce of Latin America,
Department of the Treasury
Claude Courand, Director, American Republics Divi-
sion, Department of Commerce
John C. Elac, Department of State
Lawrence B. Elsbernd, Department of State
Philip Glaessner, Director, Office of Capital Develop-
ment, Agency for International Development
Sidney Sehmukler, American Embassy, Lima
Irving G. Tragen, Director, Office of Institutional De-
velopment, Agency for International Development
William V. Tumage, Department of State
Serban Vallimarescu, Department of State
Sidney Weintraub, Department of State
Simon N. Wilson, Department of State
Secretary of Delegation
Francis Cunningham, Director, Office of International
Conferences, Department of State
Special Assistants
Darrell D. Carter, U.S. Information Agency
Pat M. Holt, Senate Committee on Foreign Relations
William T. Pryce, Department of State
Besides Deputy Coordinator Rogers, the U.S.
delegation at the expert-level meeting also in-
858
DEPARTMENT OF STATE BULLETIN
eluded Messrs. Barall, Costanzo, Courand, Elac,
Elsbemd, Glaessner, Schmukler, Tragen, Turn-
age, Weintraub, and Wilson, with Mr. Cunning-
ham serving as secretary of delegation and Mr.
Holt as special assistant.
Inter-American Committee on the Alliance for
Progress
The Department of State announced on No-
vember 27 (press release 505) that W. W.
Eostow, U.S. member of the Inter-American
Committee on the Alliance for Progress, would
participate in sessions of the Committee,
held at Lima, Peru, November 30-December 14.
The meeting of the Inter- American Committee
ran concurrently with the third annual meeting
of the Inter-American Economic and Social
Council at the expert and ministerial levels.
CIAP, as the Inter-American Committee is
known from its initials in Spanish, is a special
permanent cormnittee of lA-ECOSOC and is
headed by Carlos Sanz de Santamaria of
Colombia. lA-ECOSOC will receive and act
upon a report prepared by CIAP on the basis
of coimtry-by-country reviews of development
plans and programs under the Alliance for
Progress.^
Bruno Luzzatto, director of the Office of
CIAP Affairs in the Department of State, will
serve Mr. Rostow as an adviser.
Current U.N. Documents:
A Selected Bibliography
Mimeographed or processed documents {such as those
listed below) may be consulted at depository libraries
in the United States. V.y. printed publications may
be purchased from, the Sales Section of the United
Nations, United Nations Plaza, N.Y.
General Assembly
Committee on the Peaceful Uses of Outer Space. In-
formation furnished by the representative of the
United States concerning objects launched into orbit
or beyond: A/AC.105/INF.75, September 9, 1964, 2
pp.; A/AC.105/INF.77, September 9, 1964, 2 pp.;
A/AC.105/INF.78, September 14, 1964. 8 pp. In-
formation furnished by the representative of the
U.S.S.R. : A/AC.105/INF.76, September 9, 1964, 3
pp.
' For a statement made by President Johnson on Oct.
27, see Bctlletin of Nov. 16, 1964, p. 705.
Request for the Inclusion of an Item In the Provisional
Agenda of the Nineteenth Session. Consideration of
Steps To Be Taken for Progressive Development in
the Field of Private International Law With a Par-
ticular View To Promoting International Trade.
Note verbale dated September 8 to the Secretary-
General from the representative of Hungary. A/
5728. September 9, 1964. 3 pp.
Security Council
Admission of New Members :
Letter dated September 29 from the Prime Minister of
Malta applying for membership. S/6004. October 8,
1964. 2 pp.
Telegram of October 26 from the President of the
Republic of Zambia applying for membership.
S/6025. October 26, 1964. 2 pp.
Cambodia-Viet-Nam :
Letter dated September 9 from the Minister for For-
eign Affairs of the Republic of Viet-Nam concerning
an engagement between Government troops and the
Viet Cong in which the latter retreated to Cambodian
terrritory under cover of fire from Cambodian forces.
S/5969. September 15, 1964. 1 p.
Letter of September 16 from the Representative of
Cambodia concerning violation of Cambodian air-
space by aircraft of Republic of Viet-Nam. S/5976.
September 17, 1964. 1 p.
Letter of September 19 from the Minister for Foreign
Affairs of Cambodia reiterating previous charges in-
volving the responsibility of the Republic of Viet-
Nam for an attack attributed by the latter to the
Viet Cong. S/5983. September 24, 1964. 2 pp.
Letter dated September 24 from the Minister for For-
eign Affairs of the Republic of Viet-Nam denying
Cambodian charges that it had sprayed toxic powder
on the territory of Cambodia. S/5993. Septem-
ber 29, 1964. 1 p.
Letter dated September 29 from the Representative of
Cambodia transmitting the report of the Inter-
national Commission for Supervision and Control in
Cambodia concerning incidents in Cambodia-Viet-
Nam border area. S/5996. October 6, 1964. 33 pp.
Letter dated October 1 from the Permanent Observer
of the Republic of Viet-Nam submitting evidence of
interference in internal affairs of Viet-Nam by Cam-
bodian Government. S/5995. October 2, 1964. 5
pp.
Letter dated October 13 from the Deputy Representa-
tive of Cambodia denying charges of interference in
the internal affairs of the Republic of Viet-Nam.
S/6011. October 13, 1964. 4 pp.
Letter dated October 15 from the Representative of
Cambodia charging that aircraft of the Republic of
Viet-Nam carried out an attack within Cambodian
territory. S/6015. October 16, 1964. 1 p.
Letter dated October 26 from the Representative of
Cambodia transmitting the text of a communique
protesting firing by Vietnamese military units Into
Cambodian territory. S/6026. October 27, 1964.
Ip.
Letter dated October 26 from the Representative of
Cambodia transmitting the text of a Government
statement concerning attacks by U.S. and Republic
of Viet-Nam aircraft and appealing for recognition
of seriousness of situation. S/6027. October 27,
1964. 2 pp.
DECEMBER 14, 1964
859
Cable dated October 28 transmitting the text of a proc-
lamation demanding cessation of U.S. and Republic
of Viet-Nam "aggression" and warning of future
Cambodian action. S/6030. October 29, 1964. 3 pp.
Letter of October 29 from the Representative of Cam-
bodia concerning retaliatory action by Cambodian
military aircraft. S/6031. October 29, 1964. 1 p.
Letter dated November 3 from the Minister for Foreign
Aifairs of Viet-Nam transmitting text of a Govern-
ment communique concerning the circumstances of a
border incident which occurred at the village of
Aniong-Chrey. S/6041. November 12, 1964. 2 pp.
and map.
Cyprus :
Report by the Secretary-General on the United Nations
operation in Cyprus from September 10 to 15.
S/5950/Add. 2. September 1.5, 1964. 6 pp.
Note by the Secretary-General giving a detailed ac-
count of the initial stages of the fighting in Tylliria
in early August. S/5992. September 29, 1964.
3 pp.
Note by the Secretary-General concerning the reopen-
ing of the Kyrenia Road and the rotation of the
Turkish national contingent. S/6021. October 21,
1964. 1 p.
Letter dated September 10 from the Representative of
Turkey concerning the economic blockade imposed
on Turkish community by Greek Cypriots. S/5958.
September 11, 1964. 3 pp.
Letter dated September 15 from the Representative of
Cyprus transmitting the text of a note verbale de-
livered to the Turkish Embassy concerning the viola-
tion of the territorial waters of Cyprus. S/5972.
September 15, 1964. 1 p.
Letter dated September 15 from the Representative of
Turkey concerning the situation in Cyprus and par-
ticularly in the Kokkina area. S/5974. Septem-
ber 16, 1964. 3 pp.
Letter dated September 17 from the Representative of
Turkey transmitting the text of a telegram from
the Vice President of Cyprus replying to charges
made by the President of Cyprus. S/5977. Sep-
tember 18. 1964. 6 pp.
Letter dated September 22 from the Representative of
Turkey transmitting the text of a telegram from the
Vice President of Cyprus expressing his appreciation
of United Nations efforts. S/5982. September 23,
1964. 2 pp.
Letter dated September 25 from the Representative of
Turkey transmitting the text of a telegram from the
Vice President of Cyprus calling attention to the
continuation of economic restrictions on the Turkish
community in Cyprus. S/5985. September 25, 1964.
3 pp.
Letter dated September 25 from the Representative of
Sweden transmitting the text of a Government com-
munique expressing regret at failure of members of
Swedish UNFICYP contingent to observe strict im-
partiality. S/5989. September 26, 1964. 1 p.
Letter dated October 5 from the Representative of
Turkey transmitting a copy of a letter sent by the
Vice President of Cyprus to the President of Cyprus
concerning judicial matters. S/5999. October 6,
1904. 3 pp.
Letter dated October 15 from the Representative of
Turkey transmitting the text of a telegram from the
Vice President of Cyprus concerning a speech made
by General Grivas and expressing concern for safety
of Turkish commimity. S/6013. October 15, 1964.
3 pp.
Greece-Turkey :
Letters dated September 25, September 28, October 20,
and October 26, 1964, from the Representative of
Greece concerning violations of Greek airspace by
Turkish military aircraft. S/5988, S/5990, S/6019,
and S/6024. 1 p. each.
Letter dated October 2 from the Charg6 d' Affaires a.L
of Greece concerning measures taken by Turkish
Government in islands of Imvros and Tenedos with
the aim of abolishing the minority educational sys-
tem provided for in the Treaty of Lausanne. S/5997.
October 5, 1964. 1 p.
Guinea-Portugal :
Letter dated October 7 from the Representative of the
Republic of Guinea with regard to violations of
Guinean airspace by military aircraft of Portuguese
colonial forces. S/6000. October 7, 1964. 1 p.
Letter dated October 16 from the ChargS d'Affaires a.i.
of Portugal rejecting Guinea's charges and listing
instances of violation of airspace of the Portuguese
Province of Guinea by aircraft coming from the Re-
public of Guinea. S/6016/Rev. L October 21, 1964.
4 pp.
Indonesia-Malaysia :
Letter dated October 31 from the Representative of
Malaysia concerning further acts of aggression com-
mitted by Indonesia against Malaysia. S/6C34. Octo-
ber 31, 1964. 4 pp.
Letter dated November 3 from the Representative of
Malaysia concerning defensive measures taken by
Malaysia in answer to Indonesian military activities.
S/6035. November 5, 1964. 4 pp.
Letter dated November 10 from the Representative of
Malaysia concerning a further series of incidents in-
volving incursions into Malaysian territory by In-
donesian armed personnel. S/6042. November 10,
1964. 2 pp.
Letter dated November 19 from the Representative of
Malaysia giving particulars of three incidents involv-
ing Indonesian incursions into Malaysia. S/6054.
November 19, 1964. 2 pp.
Israel-Syria :
Letter dated November 14 from the Representative of
Israel concerning an incident which took place in
the Dan sector of the Israel-Syria border. S/6045.
November 14, 1964. 5 pp.
Letter dated November 15 from the Representative of
Israel referring to above incident and requesting a
meeting of the Security Council to consider Israeli
complaints. 8/6046. November 16, 1964. 1 p.
8G0
DEPARTMENT OP STATE BULLETIN
TREATY INFORMATION
Ratifications ExcFianged With
Belgium for Extradition Convention
Press release SOO dated November 25
On November 25 Secretary Rusk and the Am-
bassador of Belgium, Baron Louis Scheyven,
exchanged at Washington instruments of rati-
fication of the supplementary extradition con-
vention signed at Brussels November 14, 1963.
The supplementary convention amends the ex-
tradition treaty of 1901 ^ and the supplementary
convention of 1935 ^ between the two countries
by adding to the list of extraditable offenses
the crimes of perjury, abduction or detention
of women for immoral purposes, bribery, expo-
sure or abandonment of children, and offenses
against the narcotics laws.
The supplementary convention becomes an
integral part of the extradition agreements al-
ready in force between the two countries and
enters into force 1 month after the exchange of
ratifications.
Current Actions
MULTILATERAL
North Atlantic Treaty — Atomic Information
Agreement between the parties to the North Atlantic
Treaty for cooperation regarding atomic informa-
tion. Done at Paris June 18, 1964.'
'Notification received that they are icillinff to Be
bound by terms of the agreement: Greece, Iceland,
November 20, 1964.
Rice
Amended constitution of the International Rice Com-
mission. Approved at the 11th session of the Con-
ference of the Food and Agriculture Organization,
Rome, November 23, 1961. Entered into force No-
vember 23, 1961. TIAS 5204.
Acceptance deposited: Guatemala, October 23, 1964.
• 32 Stat. 1894.
' 49 Stat. 3276.
' Not in force.
BILATERAL
Belgium
Supplementary convention to the extradition conven-
tion of October 26, 1901, as supplemented (32 Stat.
1894; 49 Stat. 3276). Signed at Brussels Novem-
ber 14, 1963.
Ratifications exchanged: November 25, 1964.
Enters into force: December 25, 1964.
Brazil
Treaty of extradition. Signed at Rio de Janeiro Janu-
ary 13, 1961. Enters into force December 17, 1964.
Proclaimed by the President: November 20, 1964.
Additional protocol to the treaty of extradition of
January 13, 1961. Signed at Rio de Janeiro June 18,
1962. Enters into force December 17, 1964.
Proclaimed by the President: November 20, 1964.
Chile
Agreement amending the agricultural commodities
agreement of August 7, 1962, as amended (TIAS
5195, 5252, 5304, 5616). Effected by exchange of
notes at Santiago November 17, 1964. Entered into
force November 17, 1964.
Greece
Agreement amending the agricultural commodities
agreement of October 30, 1963, as amended (TIAS
5462, 5625). Effected by exchange of notes at
Athens November 16, 1964. Entered into force No-
vember 16, 1964.
Agricultural commodities agreement under title IV of
the Agricultural Trade Development and Assistance
Act of 1954, as amended (68 Stat. 454; U.S.C. 1731-
1736), with exchange of notes. Signed at Athens
November 17, 1964. Entered into force November
17, 1964.
Japan
Agreement regarding the king crab fishery in the east-
em Bering Sea, with appendix. Effected by ex-
change of notes at Washington November 25, 1964.
Entered into force November 25, 1964.
Sweden
Agreement approving the procedures for reciprocal
filing of classified patent applications in the United
States and Sweden. Effected by exchange of notes
at Washington October 20 and November 17, 1964.
Entered into force November 17, 1964.
Union of Soviet Socialist Republics
Agreement on cooperation in the field of desalination,
including the use of atomic energy. Signed at Mos-
cow November 18, 1964. Entered into force Novem-
ber 18, 19&4.
DECEMBER 14, 1964
861
PUBLICATIONS
Recent Releases
For sale iv "»« Superintendent of Documents, U.S.
Qovemment Printing Office, Washington, D.O., 20402.
Address requests direct to the Superintendent of Docu-
ments, except in the case of free publications, which
may be obtained from the Office of Media Services,
Department of State, Washington, D.O., 20520.
Safeguarding of Classified Information. Agreement
with Italy. Exchange of notes— Signed at Washing-
ton August 4, 1964. Entered Into force August 4, 1964.
TIAS 5629. 8 pp. 100.
Exchange of Official Publications. Agreement with
Norway, amending agreement of March 15, 1948. Ex-
change of notes — Signed at Oslo August 10 and 11, 1964.
Entered into force September 1, 1964. TIAS 5630.
2 pp. 50.
Roosevelt Campobello International Park. Agreement
with Canada — Signed at Washington January 22, 1964.
Entered Into force August 14, 1964. TIAS 5631. 4
pp. 50.
Agricultural Commodities. Agreement with Indonesia,
omending agreement of February 19, 1962, as amended.
Exchange of notes — Signed at Djakarta August 13, 1964.
Entered Into force August 13, 1964. TIAS 5632. 8
pp. 50.
Check List of Department of State
Press Releases: November 23-29
Press releases may be obtained from the OflBce
of News, Department of State, Washington, D.C.,
20520.
Subject
U.S. delegation to lA-BCOSOC
(rewrite).
Busk : American Institute for Free
Labor Development.
U.S. participation in international
conferences.
Rescue operation in the Congo.
Exchange of ratifications of sup-
plementary extradition conven-
tion with Belgium.
Civil air transport consultations
with Italy.
Dungan sworn in as Ambassador
to Chile (biographic details).
Rusk-Takeuchi : king crab fishing
agreement.
Rusk-Schroeder : Joint communi-
que.
Rostow to attend CIAP meeting at
Lima (rewrite).
Ball : departure for OECD meeting
at Paris.
•Not printed.
tHeld for a later Issue of the Buixetin.
No.
Date
496
11/23
497
U/23
•498
11/23
499
500
11/24
11/25
501
11/25
•502
11/25
t503
11/25
504
11/26
505
11/27
506
11/27
862
DEPARTMENT OF STATE BULLETIK
INDEX December U,196^ Vol. LI, No. 1329
American Republics
Inter-American Committee on the Alliance for
Progress (delegation) 859
Inter-American Economic and Social Council
(delegation) 858
The Trade Union Movement and Social Progress
in the Western Hemisphere (Rusk) .... 849
Aviation. United States and Italy Begin Civil
Air Transport Consultations 855
Belgium
Ratifications Exchanged With Belgium for Ex-
tradition Convention 861
United States Cooperates With Belgium in Res-
cue of Hostages From the Congo 838
Cambodia. U.S. and Cambodia To Begin Talks
on Resolving Differences 856
Congo (Leopoldville). United States Cooperates
With Belgium in Rescue of Hostages From
the Congo 838
Congress. Congressional Documents Relating
to Foreign Policy 857
Economic Affairs
The Industry Role in Trade Negotiations
(Roth) 853
Under Secretary Ball Departs for Meetings at
London and Paris 847
U.S. Gratified at International Monetary Coop-
eration (Johnson) 848
Europe. U.S. ReafiBrms Its Commitment to the
Atlantic Community (Johnson) 846
Foreign Aid
Inter-American Committee on the Alliance for
Progress (delegation) 859
Inter-American Economic and Social Council
(delegation) 858
The Trade Union Movement and Social Progress
in the Western Hemisphere (Rusk) .... 849
France. Under Secretary Ball Departs for Meet-
ings at London and Paris 847
Germany. German Foreign Minister Talks With
Secretary Rusk (joint communique) .... 847
International Organizations and Conferences
Inter-American Committee on the Alliance for
Progress (delegation) 859
Inter-American Economic and Social Council
(delegation) 858
Under Secretary Ball Departs for Meetings at
London and Paris 847
Italy. United States and Italy Begin Civil Air
Transport Consultations 855
Labor. The Trade Union Movement and Social
Progress in the Western Hemisphere (Rusk) . 849
Presidential Documents
United States Cooperates With Belgium in Res-
cue of Hostages From the Congo 838
U.S. Gratified at International Monetary Coop-
eration 848
U.S. Reafiirms Its Commitment to the Atlantic
Community . 846
Sir Winston Churchill Observes His 90th Birth-
day 856
Publications. Recent Releases 862
Treaty Information
Current Actions 861
Ratifications Exchanged With Belgium for Ex-
tradition Convention 861
United States and Italy Begin Civil Air Trans-
port Consultations 855
United Kingdom
Under Secretary Ball Departs for Meetings at
London and Paris 847
U.S. Gratified at International Monetary Coop-
eration (Johnson) 848
Sir Winston Churchill Observes His 90th Birth-
day (Churchill, Johnson, proclamation) . . . 856
United Nations
Current U.N. Documents 859
President Names Cabinet Committee for Inter-
national Cooperation Year 857
United States Cooperates With Belgivmi in Res-
cue of Hostages From the Congo 838
Name Index
Ball, George W 838, 847
Churchill, Winston S 856
Gbenye, Christophe 838
Godley, G. McMurtrie 838
Johnson, President 838,846,848,856
Roth, William M 853
Rusk, Secretary 838,847,849
Schroeder, Gerhard 847
Stevenson, Adlai E 838
Tshombe, Moise 838
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Documents on German Foreign Policy, 1918-1945
Series D, Volume XIII, The War Years, June 23- December 11, 1941 {
The Department of State recently released Documents on German Foreign Policy, 1918-19U
Series D, Volume ZIII, The War Tears, June 23-December 11, 1941, which is the last volume in thi
series covering the period 1937-41. Volume XIII begins on Jmie 23, 1941, immediately following th
German attack on Soviet Bussia, and ends on December 11, when Hitler declared war on the Unite*
States following the Japanese attack at Pearl Harbor.
The 578 documents of this volume are presented in chronological order, but the analytical list o
the papers is arranged by topic so that the reader may easily follow any principal subject. The subject
on which there are the largest number of documents in this volume are: France, Italy, Japan, thi
Middle East, Spain, Sweden, Turkey, the U.S.S.E., the United States, and Yugoslavia.
Copies of the volume (publication 7682) may be obtained from the Superintendent of Documents
U.S. Government Printing Office, Washington, D.C., 20402, for $4 each.
PUBLICATION 7682 i
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ADDRESS
crrr, state
TPIE OFFICIAL WEEKLY KECORD OF UNITED STATES FOREIGN POLICY
^3/3. /A3cJ
THE
DEPARTMENT
OF
STATE
BULLETIN
4- 1
Vol. LI, iYo. 1330
December 21, 1964.
THE ATLANTIC COMMUNITY: COMMON HOPES AND OBJECTIVES
Address iy President Johnson 866
THE DYNAMICS OF PROGRESS IN CENTRAL EUROPE
hy Ambassador Oeorge C. McGhee 870
IMPACT OF INTERNATIONAL TRAVEL ON U.S. BAI.ANCE OF PAYMENTS
Statement by Charles H. Mace 888
DEVELOPMENT FINANCING AND THE ALLIANCE FOR PROGRESS
by Secretary of the Treasury Douglas Dillon, Philip Glaessner,
and Under Secretary of State W. Averell Rarriman 878
For index see inside back cover
The Atlantic Community: Common Hopes and Objectives
Address by President Johnson ^
Most Reverend Apostolic Delegate, Most
Reverend Archbishop O'Boyle, Very Reverend
Fatlier Bunn, Very Reverend Father Campbell,
my distinguished friends: Robert Frost once
said the greatest test of a college student's
chances is when we know the sort of activity
for which he will neglect his studies. And so
I hope that the presence of all of you here
today is a very promising sign.
When it was proposed that a telegraph be
set up between Texas and Maine, Thoreau
commented : We are in a great rush to establish
instant communication between Texas and
Maine. But how do we know that Texas and
Maine have anything to communicate?
I might add that last November Texas and
Maine were in close communication.
This is also a central problem of today's
world. For almost the first time, the inter-
' Made at the 175th anniversary convocation at
Georgetown University, Washington, D.C., on Dec. 3
(White House press release; as-delivered text).
dependence of nations is not a remote goal or
a ringing slogan. It is a fact which we neglect
at our own peril. Communication satellites,
atomic rockets, jet transports have made
distant capitals into close neighbors. One
challenge is to transform this reality into an
instrument for the freedom of man. Today
the cost of failure to commimicate is not silence
or serenity but destruction and disillusion.
Nowhere is this more true than in our rela-
tions with the nations of Western Europe.
Since World War II, we have sought a Europe
growing in intimacy and unity with America.
If we look beyond the clamor of daily reports
and the voluble doubts of skeptics, we can see
that this effort has been the greatest success
story in the history of the West. Because from
desolation has come abundance. From division
has come a degree of unity not acliieved in a
thousand years or more. From weakness and
vulnerability have come stability within and
increased security from without. From the
DEPARTMENT OF STATE BULLETIN VOL. LI, NO. 1330 PUBLICATION 7792 DECEMBER 21, 1964
The Department of State BnUetln. a
weekly pabltcatlon Issued by the Office
of Media Services, Bureau of Public Af-
fairs, provides the public and Interested
agencies of the Government with Infor-
mation on developments In the field of
foreign relations and on the work of the
Department 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 Depart-
ment, as well as special articles on vari-
ous phases of International affairs and
the functions of the Department. Infor-
mation Is Included concerning treaties
and International agreements to which
the United States Is or may become a
party and treaties of general Interna-
tional Interest.
Publications of the Department, United
Nations documents, and legislative mate-
rial In the field of International relations
are listed currently.
The Bulletin is for sale by the Super-
intendent of Documents, U.S. Qovem-
ment Printing Ofllce, Washington, D.C.,
20402. Price : 52 Issues, domestic $10,
foreign $15 ; single copy 30 cents.
Use of funds for printing of this pub-
lication approved by the Director of the
Bureau of the Budget (January 10,
1981).
NOTB : Contents of this publication are
not copyrighted and items contained
herein may be reprinted. Citation of the
Department of State Bulletin as the
source will be appreciated. The Bulletin
is indexed in the Readers' Qnlda to
Periodical Literature.
866
DEPARTMENT OP STATE BULLETIN
1
aslies of holocaust has emerged the second
strongest industrial civilization in the history
of the world.
So this is the triumph of the people of
Europe, and it is a tribute to the generosity of
America. But most of all, it stems from those
men of vision who saw that the interests of
their own people lay in increased unity and in
partnership with the United States of America.
It was perhaps fortunate that the greatest
threat came when the memory of past failures
was still fresh. Out of the common experience
of disaster and the onrush of new danger came
the course that we have charted. So we must
not now let success and prosperity strengthen
the forces of inertia or dull the sense of ur-
gency.
Our very success opens the door to the revival
of the ancient rivalries which have so often torn
the fabric of our society. We are not joined
together by expedience or convenience in pur-
suit of temporary goals. European unity and
Atlantic partnership are based on deeply
shared values and dangers and interests, and
the wise pursuit of the interest of each will
strengthen the connection among all our na-
tions.
Solving Our Problems by Common Consent
The United States has no policy for the peo-
ple of Europe, but we do have a policy toward
the people of Europe. And we do have com-
mon hopes and common objectives shared with
most of the people of Europe. Answers to our
common problems must emerge from the con-
sent of free countries, and that consent, in turn,
will be based on discussion and debate and re-
spect for the ideas and the proposals of all.
But there must be progress. A Chinese prov-
erb says there are many paths up the mountain
but the view from the top is always the same.
"We are always ready to look for a better or
easier path, but we intend to climb to the
summit.
First, we must all seek to assist in increasing
the unjity of Europe as a key to "Western
strength and a barrier to resurgent and erosive
nationalism.
Second, we must all work to multiply in num-
ber and intimacy the ties between North Amer-
ica and Europe. For we shape an Atlantic
civilization with an Atlantic destiny.
Third, we must all make sure that the Fed-
eral Republic of Germany is always treated as
an honorable partner in the affairs of the "West.
Germany has labored to build a stable and a
free society in complete loyalty to European
unity and to Atlantic partnership. And the
people and the leaders of Germany have bound
themselves to peace and reconciliation with
their European neighbors, and especially with
France. They have rejected all separate ad-
ventures, especially, and I think most wisely,
in the field of nuclear weapons. In particular,
our friends and comrades throughout Germany
deserve assurance from their allies that there
shall be no acceptance of the lasting threat to
peace which is the forced division of Germany.
No one seeks to end this grim and dangerous
injustice by force. But there can be no stable
peace in Europe while one part of Germany is
denied the basic right to choose freely its own
destiny and to choose, without threat to any-
one, reunion with the Germans in the Federal
Republic.
Fourth, those of us who are ready to proceed
in common ventures must decide to go forward
together, always with due deliberation, with due
respect for the interests of others, and with an
open door for those who may join later. "We
shall always seek agreement. "We shall never
insist on unanimity. This is the course wliich
has brought fruitful results and almost every
major advance in the 20 years since World
War II.
An Agenda for Future Progress
The Atlantic alliance is not in the midst of
crisis, as some alarm mongers would have you
believe. But it is in the midst of change.
Every important period of progress has been
marked by the same kind of discussion and
debate that is now in progress. The Coal and
Steel Commmiity, the integration of Germany
into NATO, the Common Market itself, raise
some blood pressures among excitable people,
arouse question and concern and warning. And
we were told that such steps might be against
DECEMBER 21, 1964
867
the interests of America. We were told that it
might become harder to deal with the Soviet
Union. We were told that we might encourage
German militarism. We were told that we
might divide Europe or arouse hostilities. To
change patterns of thought or the shape of
institutions is never very easy. Today's dis-
cussion and debate, the flow of ideas and pro-
posals, is proof of coming change and a spur
to continuing action.
The agenda for future progress does not con-
sist of an isolated or a single dramatic step.
It is made up of action— action across the whole
range of common interest, which is the bedrock
of our alliance. We have a common interest
in tlie defense of the West. For 20 years the
atomic might of the United States has been the
decisive guard of freedom. Ours remains the
largest strength and ours a most awesome obli-
gation. But we recognize the reasonable inter-
est and concerns of other allies, those who have
nuclear weapons of their own and those who
do not. We seek ways to bind the alliance
even more strongly together by sharing the
tasks of defense through collective action and
meeting the honorable concerns of all.
This is the meaning of the proposals that
we have made. This is the meaning of the
discussions that we expect, and that we welcome,
with all interested allies. We come to reason,
not to dominate. We do not seek to have our
way but to find a common way. And any new
plans for the handling of weapons so powerful
we think deserve most careful discussion and
deliberation. No solution will be perfect in the
eyes of everyone. But we all know that the
problem is there. It must be solved. And we
will continue to work for its solution.
We have a common interest in a rising stand-
ard of living for humanity. This will require
a continuing effort to lower industrial tariffs
in the Kennedy Round and a joint study of the
political and human problems of agriculture.
We have a common interest in assisting the
freedom and the growth of the developing
world, and none of us will be finally secure in
a world that is divided into hostile camps of
rich and poor, or black and white.
We must also seek progress toward stable
prices and nondiscriminatory trade for our basic
commodities. We have a common interest in
building bridges of trade and ideas, of under-
standing and humanitarian aid to the countries
of Eastern Europe. These countries are in-
creasingly asserting their own independence,
and we will work together to demonstrate that
their prospects for progress lie in greater ties
with the West.
We have a common interest in increasing
political consultation among the nations of the
alliance. This may well require more frequent
meetings among all the ministers or deputy min-
isters of the NATO alliance. It clearly de-
mands that all of us be ready for those patient
and determined efforts to meet each other half-
way, without which no real agreement is ever
possible among strong and honorable states.
Most of all, the Atlantic nations have a com-
mon interest in the peace of the world. In the
past 4 years we have taken several steps toward
lessening the danger of war. The United States
is prepared in full consultation with its allies
to discuss any proposal with the Soviet Union
which might increase the chances of a lasting
peace.
These are some of the areas in which we must
work together. At every turning point for 20
years we have risen above national concerns to
the more spacious vision of European unity
and Atlantic partnership. This, too, must be
such a time.
Moving Ahead With the Times
So let no one mistake a brief calm for the
end of the storm. The world is still full of
peril for those who prize and cherish freedom.
Across the earth from Asia to the heart of
Africa forces are loosed whose direction is un-
certain and whose portent is full with challenge.
All day yesterday the workers and the
thinkers and the doers of your Government
were occupied with the future of Africa. All
day, into the early hours of the morning the
day before, the thinkers and the planners and
the doers, if not the talkere or writers, were
evaluating and searching for a solution to some
of the problems of Asia.
The unknown tide of future change is already
beating about the rock of the West. These
868
DEPARTMENT OF STATE BUI-LETIir
fruitful lands washed by the Atlantic, this half-
billion people unmatched in arms and industry,
this measureless storehouse of wisdom and
genius can be a fortress against any foe, a force
that will enrich the life of an entire planet. It
is not a question of arms or wealth alone. It is a
question of moving ahead with the times, and it
is a question of vision and persistence and the
willingness to surmount the barriers of national
rivalry against which our ancestors have always
collided.
There are so many things, so many more
things, in the world that unite us than that
divide us. And in this hour of trial, now is
the time to come to the aid of your world by
trying to be a force for unity instead of a voice
for division.
Only yesterday, one of the notable men of
this generation called to talk to me, and I had
to postpone his call. I said to my assistant,
"We can wait for him until tomorrow because
he is a force for division."
So if we have the qualities of which I have
spoken, then the first age with the power to
destroy — destroy the world — can be the first,
also, to put an end to that destruction. No one
person, no individual, regardless of his heritage
or his training, can alone lead us to the summit
of the good things that are ahead. But I do
in my own humble way appeal to each of you
to forget the emotionalism that would bring
hate to our hearts and try to remember the
sentiment that would make us all brothers in a
world of great opportunity, in a time of great
need.
Thank you.
Letters of Credence
Nepal
The newly appointed Ambassador of Nepal,
Maj. Gen. Padma Bahadur Khatri, presented
his credentials to President Johnson on Decem-
ber 3. For texts of the Ambassador's remarks
and the President's reply, see Department of
State press release 512 dated December 3.
President Reaffirms Basic
Policy in Viet-Nam
White House Statement
White House press release dated December 1
The President today reviewed the situation
in South Viet-Nam with Ambassador [Maxwell
D.] Taylor, and with the Secretaries of State
[Dean Rusk] and Defense [Robert S. McNa-
mara], the Director of Central Intelligence
[John A. McCone], and the Chairman of the
Joint Chiefs of Staff [Gen. Earle G. Wheeler].
Ambassador Taylor reported that tlie polit-
ical situation in Saigon was still difficult but
that the new government under Prime Minister
[Tran Van] Huong was making a determined
effort to strengthen national unity, to maintain
law and order, and to press forward with the
security program, involving a combination of
political, economic, and military actions to de-
feat the Viet Cong insurgency. The Ambassa-
dor also reported that, although the security
problems have increased over the past few
months in the northern provinces of South
Viet-Nam, with uneven progress elsewhere, the
strength of the armed forces of the government
was being increased by improved recruiting
and conscription and by the nearly 100-percent
increase in the combat strength of the Vietnam-
ese Air Force. Also, the government forces
continue to inflict heavy losses on the Viet Cong.
On the economic front, Ambassador Taylor
noted that agricultural output was continuing
to increase, witli U.S. assistance in fertilizers
and pesticides playing an important role. He
also noted that the prices of goods and the value
of the piaster have remained remarkably stable.
On the other hand, the Ambassador reported
that increased interdiction of the communica-
tion routes by the Viet Cong is interfering to
some extent with commerce within the country,
and the recent typhoons and floods in central
Viet-Nam have destroyed a large percentage of
the crops and livestock in that region. The
Vietnamese Government, with U.S. assistance,
has moved promptly to organize a program
which is bringing relief and rehabilitation to
the stricken areas.
DECEMBER 21, 1964
869
The meeting reviewed the accumulating evi-
dence of continuing and increased North Viet-
namese support of the Viet Cong and of North
Vietnamese forces in, and passing through, the
territory of Laos in violation of the Geneva
accords of 1962.
The President instructed Ambassador Taylor
w consult urgently with the South Vietnamese
Government as to measures that should be
taken to improve the situation in all its aspects.
The President reaffirmed the basic U.S. pol-
icy of providing all jwssible and useful assist-
ance to the South Vietnamese people and
government in their struggle to defeat the ex-
ternally supported insurgency and aggression
being conducted against them. It was noted
that this policy accords with the terms of the
congressional joint resolution of August 10,
1964,^ which remains in full force and effect.
'For text, see Bulletin of Aug. 24, 1964, p. 268;
for a statement made by President Johnson when he
signed the joint resolution, see i6id., Aug. 31, 1964,
p. 302.
The Dynamics of Progress in Central Europe
by George C. McGhee
Ambassador to the Federal Eepuilic of Germany '
One of tiie outstanding men of our century —
not just a great mayor of a great city but one
who, by his spirit and exertions, set an example
for free men everywhere — said with respect to
his labors here in Berlin :
Berlin does not iight for itself alone, but its struggle
and its life have a single aim : To unite Berlin, to
surmount the partition of Germany and to help estab-
lish a peaceful and united Europe.
I consider it a high privilege indeed to have
been asked to speak in a lecture series created
in honor of this man, the late Ernst Renter,
Berlin's first governing mayor. No words of
mine could pay to his memory a juster tribute
than the fact that his own words live on in our
tiioughts. Those I have just quoted from the
writings of Dr. Renter form a fitting opening
for the theme I propose to develop here this eve-
ning. For, as Dr. Renter said, important ac-
tions usually have an effect far beyond the
sphere to which they are immediately applied.
The way we deal willi one issue may well help
' Address made before the Ern.st Reuter Society at
the Free Univprsity i>f Berlin on Nov. 11.
to determine the outcome of other, broader
issues.
Starting from this premise, I would like to
outline to you a concept of how the goal which
Dr. Reuter had in mind may perhaps be real-
ized through the interplay of the forces now at
work in Central Europe — forces which hold
dangers and yet opportunities for us all. I deal
with Central Europe not just because it centers
here in Berlin but because its continued unnat-
ural division — like that of Germany and Ber-
lin—remains as perhaps the one greatest threat
to peace. I shall, perhaps, in the course of my
remarks, ask more questions than I answer. I
shall ask you to seek with me some clarification
of what it miglit be possible to achieve in Cen-
tral Europe and the means — the dynamics — of
how this could come about.
It has been said that anytliing wliich lias been
clearly thought out can be briefly expressed.
That is a maxim to give pause, not only to a
speaker like myself, but to all of us who con-
tribute to Ihe enilless discussion of public policy
within and among the nations of our Western
conuiiunity. Discussion is necessary: We must
870
DEPARTMENT OF STATE BULLETIN
constantly expose our ideas to critical appraisal
in order to be sure that we misinterpret neither
each other nor the march of world events.
However, we must take cai'e to conduct our de-
bate in a fashion which clarifies, rather than
enshrouds, the issues.
By the text of this maxim, it should be possi-
ble to state in a few words the foreign policies
of the United States affecting Central Europe.
These policies have a broad basis of popular
support in my comitry; they have been tried in
the heat of critical moments and by the passage
of time; they are reaffirmed by the new admin-
istration as the expression of aims to which the
United States has held consistently since the
war. Let me state four of them :
— in Berlin, to stay and to maintain the West's
vital interests, against the day when Berlin
again will become the capital of a united Ger-
many ;
—in the problem of German reunification, to
search untiringly for an opportunity for prog-
ress in the conviction that, until this division
in the heart of Europe is healed, there can be
no stability or security in Europe ;
— in Europe, to support steps toward inte-
gration in the West, a trend toward national
diversity and independence in the East, and a
gradual restoration of ties to bring the Eastern
countries back into the Europe to which they
naturally and historically belong;
— in East-West relations, to couple a ready
defense and a powerful deterrent against Com-
munist adventurism with a persistent explora-
tion of possibilities for agreement.
These policies certainly are familiar to you.
Many speeches have been made about each of
them. I have made some myself. Wliat I pro-
pose to discuss tonight, however, is how these
policies can, in concert, be carried out. Cer-
tainly that is a very important question to be
asked about the policies of any coimtry. It is
also, I fear, the kind of inquiry in which our
debates often become murkiest— not only about
America's actions but about the proper course
to be followed by the West as a whole. What
of our policy is doable? Wliat is not doable?
Wliat is myth? What is reality? How do we
go about our task ?
For example, the proposition that it is essen-
tial to keep West Berlin fi-ee — and to maintain
the Western position in Berlin — commands im-
mediate assent. There are some, however, who
ask whether the West's determination to meet
its responsibilities here in Berlin may not be
sapped by the pursuit elsewhere of what they
might categorize as the will-o'-the-wisp of ac-
commodation with the Soviet Union. Few
would contest that, in a world as complex and
dangerous as ours, the actual removal of even
a peripheral cause for dispute between East and
West is, per se, desirable. There are those,
however, who fear that the effect of progress on
the periphery will be to freeze the status quo in
the center with the big issues, such as the divi-
sion of Berlin and Germany, still imsolved.
The Concept of Detente
In weighing the realities, it seems to me that
a persistent source of confusion is a tendency
in the West to talk about something undefined
called detente. The ti-ouble with the word is
that it has been allowed to go into circulation
as international coinage without being given a
precise value. To some, detente connotes a false
sense of euphoria springing from an unduly op-
timistic interpretation of the present situation.
To others, it represents a mere hope that an
imsatisf actory present will give place to a better
future. To others, it signifies an unwarranted
relaxation of vigilance — to still others, the
abandonment of cherished goals.
Detente is suspected by many to be merely
another name for a "papering over" of unre-
solved differences — a "looking aside" to avoid
a full-scale confrontation. It is likened to the
action of a householder who, surprised by a bur-
glar, twitches the covers over his head — thus
wordlessly but clearly extending an invitation
not only to take the silver but to drop by the
kitchen for a snack on the way out. For the
burglar's ner\es, this would indeed constitute
a welcome relaxation of tension — or detente.
The detente does not, however, change either
the fact of the loss of silver or the craven en-
couragement of burglary on the part of the
householder.
As an abstraction, the conception of detente is
as elusive as that of "success." "Success" is a
term properly applied to the happy outcome of
DECEMBER 21, 1964
871
an endeavor. When it is sought for itself,
rather than through the constructive effort re-
quired to achieve it, it vanishes into thin air.
It would be possible to hold an exchange of
views about the concept of a lasting detente if
we all understood it to mean an absence of ten-
sion in relations between the West and the
Soviet bloc reflecting a real removal of the
differences which caused the tension in the first
place. Most of us would quickly agree that
this would be a desirable state of affairs, toward
which we are justified in making every reason-
able effort to move, even if it is nowhere in sight
at present.
Let me illustrate what I have said about
detente as an abstraction by citing the current
situation in Berlin. There is no evidence what-
ever of any alteration in the Soviet objective
of driving the West from its position here. The
determination of the West to remain in Berlin,
on the other hand, is unalterable. What has
changed, as reflected in the current atmosphere
here in Berlin, is that the pressure exerted by the
Soviet Union in pursuit of its unattainable ob-
jective has decreased, in certain measurable
ways, since the time of the Berlin crisis of a
few years ago. While we remain prepared to
resist pressure, we hope that the Soviet leader-
ship will continue to see the wisdom of not forc-
ing us to prove it — by refraining from issuing
ultimata to the Allies or trying to interfere
with Allied rights, including access to Berlin.
Is this situation a detente? That depends on
the meaning one chooses to give the word. If
it connotes the removal of the underlying causes
of tension — rather than its surface manifesta-
tion— certainly there is no detente. To debate
the question further, however, seems to me much
less likely to be profitable than to state the facts
and consider, in their light, what our policy
should be. From such an examination, applied
more widely to the problems of Central Europe,
we may hope to deduce — I will not say laws —
but probabilities to help us choose the policies
best calculated to gain our objectives.
To state one of these probabilities in general
terms, there is, I believe, sufficient evidence that
mutually beneficial exchanges between East and
West can take place, and that at least in certain
instances outstanding issues between the two can
be settled to the mutual advantage. If these
exchanges and solutions of problems constitute,
in the best judgment of the West, a net advan-
tage, there is no reason why they should not be
undertaken as they come — on a purely prag-
matic basis, as transactions in the open market-
place of world affairs.
Relation of Limited Agreements to Central Issues
Two additional questions arise : What is the
relationship between small matters and big, and
what should be their timing? Let us discuss
these questions with respect to the actual posture
of East-West relations today and in particular
in relation to the complex of problems posed
by the present situation in Central Europe.
The understandings thus far reached between
East and West have two things in common.
All — one might cite the U.S.-Soviet consular
convention ^ as an instance — are what I have
called "marketplace agreements." Each side
has perceived an advantage in reaching an ac-
cord. The second quality these agreements
share is that they relate to peripheral rather
than to central matters — to the partial prohibi-
tion of nuclear testing, rather than to the con-
trol of nuclear armaments; to the banning of
weapons of mass destruction from space, rather
than to their elimination from the earth ; to the
installation of a "hot line" to reduce the danger
of war by inadvertence, but not to the elimina-
tion of issues which cause tension between East
and West. These understandings are not negli-
gible ; they touch the fringes of questions so vital
that any progress at all related to them in-
creases the life expectancy of the human race;
but they do not bear directly on the central
problems of our time.
What effect, then, if any, do such under-
standings have upon prospects for tlie solution
of such grave issues as German reunification?
It is important to ask this question. It is
equally important not to leap to exaggerated
conclusions. One such is tlie suspicion some
hold that the seeking of limited agreements in-
volves a tacit understanding not to raise the
big issues. A turning aside from the issues of
' For a statement by President Johnson and the text
of the convention, see Botxetin of June 22, 1964, p. 979.
872
DEPAKTMENT OF STATE BUliLETIN
German reunification, or from any other East-
West issue, certainly lias not been a condition —
either explicit or implied — of any agreement
thus far. Statements by President Johnson
and other high American officials still contain
the same strong assurances. The United States
together with Britain and France emphasized
the importance of the reunification issue in a
tripartite declaration this summer.' I am au-
thorized to tell you tonight that this adminis-
tration will continue to pursue reunification as
a major goal.
A more sophisticated line of argument runs
that peripheral progress is risky because it may
distract attention from the central issues and
lessen the interest of the Allies — perhaps even
of Germans themselves — in pressing for reuni-
fication. Here, it seems to me, those who speak
of the dangers of a detente help to make their
own worries real. From a pragmatic point of
view, it is not really difficult to distinguish be-
tween the kind of agreement that has been made
thus far and the kind wliich must be made to
eliminate the sources of tension. Indeed, as
some smaller questions have been resolved, there
has resulted a natural highlighting of the fact
that the big issues remain before us.
Against the question, "Do not limited agree-
ments harm the prospects for larger ones?"
another question can be set: "Do they not in
fact enhance the prospects? Are the remaining
issues not more clearly defined, and our deter-
mination to tackle them increased, by smaller
successes which encourage us to believe that
negotiation is not always hopeless?" I shall
return to this point later, in a broader context.
For the moment, let us consider it in relation
to the question of timing — of when and where
the big issue of German reunification should be
raised. Recent history is replete with efforts to
solve the German problem : the many Western
proposals made during meetings of the Council
of Foreign Ministers in the period 1947 through
1952, the Eden Plan put forward at the Foreign
Ministers Meeting in Berlin in 1954, the Geneva
proposals of 1955, the Berlin declaration of
1957, the Western peace plan advanced at
Geneva in 1959. In the period of tension over
Berlin which followed the confrontation be-
tween President Kennedy and Chairman
Khrushchev in Vienna in 1961,* there took
place one of the most intensive efforts to solve
outstanding issues that had up to that point
been made.
Positions were determined after difficult ne-
gotiations among the Western allies. Hour
after hour, our negotiators probed for bed-
rock— and found it in an unyielding refusal on
the part of the Soviet Union to change its posi-
tion by one iota. Aside from some clarification
of our respective views and terminology, the
results of the talks were nil. The Soviets
showed once again that they had absolutely no
interest in reunifying Germany except in terms
of a Communist Germany. These conversa-
tions became less intense and frequent about a
year and a half ago. However, in a sense they
continue to this day, in that whenever there
is an opportunity the United States probes to
see whether there is any change in the Soviet
position.
In the light of this record, should the issue
be raised again^and in what light ? These are
important questions of strategy which we must
continually review. There is no reason why
the West should not be prepared at all times
to negotiate — if opportunity offers. Indeed,
we are in continuing consultation on the Ger-
man problem, and we could assemble an up-
to-date negotiating package whenever events
indicated that it would be useful to do so.
It is the Soviet Union which is responsible
for the continued division of Germany. The
West is committed to seek reunification only
through peaceful means. It follows that reuni-
fication will become possible only when the
Soviet Union becomes willing to change its
position — either through a spontaneous change
of heart or through changes in the world situ-
ation which convince the Soviet Union that its
present attitude is untenable or unprofitable.
For a change of heart we can be watchful but
not hopeful. It is our opportunity to influence
the broader European and world situation
which provides the best means of assuring prog-
ress toward German reunification.
' For text, see ibid., July 13, 1964, p. 44.
* Ibid., Jiine 26, 1961, p. 991.
DECEMBER 21, 1964
878
Thus, our examination of the central problem
logically drives us back to the periphery; and
we confront again — but in broader terms — the
question of what relationship other problems
may bear to tlie problems of which Germany
is the focus. Up to now we have considered this
matter only in terms of direct dealings with the
Soviet Union. Now we must widen our vision
to take in the trend of events throughout the
Eurasian landmass.
Impulse Toward Change in Eastern Europe
For the purposes of our discussion here, the
point of particular interest is the impulse to-
ward change which is so evident within the
Communist part of that landmass. There is a
growing assertion by the countries of Eastern
Europe of their own national identities and
interests. Always bearing in mind the central
problem, what should we do about this? Is this
stirring in Eastern Europe irrelevant? Is it
the key to a solution of the problem of Central
Europe as a whole — a solution which must in-
evitably include the reunification of Germany ?
Is it more than an irrelevance but less than a
key? To what extent should we encourage it?
To those weighty questions the first response
must be still another set of question marks. I
promise it will be almost the last. We want
change. Assuming it must come peacefully, do
we expect it to come in one great convulsion —
one massive and comprehensive agreement that
fits all the pieces together in the right way?
Change by cataclysm— by all or nothing — has
rarely been accomplished except in the after-
math of military victory. Unfortunately there
is no evidence that international negotiations on
such a scale could be successfully conducted in
peacetime — except perhaps through the appli-
cation of massive pressures by one negotiating
party upon the other. Such a course is fraught
with the dangers of M'ar. Would it be a wise
course to pursue — particularly in the light of
the steady progress being achieved by safer,
peaceful methods?
Convulsive change by massive pressure has
few responsible proponents. There is, how-
ever, the related thought that one ought to leave
the Communists to "stew in their own juice"
until they are ready to deal with us on our own
terms. Two questions arise here: whether the
peaceful influences we could exert would suffice
to bring them to such a point, and whether in
the absence of adequate pressures such a course
would not be equivalent to perpetuating the
status quo. One would have to consider the
effect on the will of the Western peoples of a
situation in which all hope of satisfying any
aspirations, even partially, would for the fore-
seeable future be denied.
The alternative to a policy of aloofness need
not, of course, be one of indiscriminate assist-
ance to.Conamunist states. We do not consider
it wise, for example, to make available to the
Soviet Union long-term credits which would
free it from the necessity of allocating a greater
part of its resources to consumer goods to
satisfy its people's rising demands. To do so
would, in effect, amount to subsidizing a mili-
tary establishment directed against us. My
own country follows a measured course of re-
sponding to developments in the individual
countries of Eastern Europe to the degree to
which these developments indicate progress
toward national independence and a desire for
better relations with us and with other coim-
tries of the West.
If the alternatives of convulsive change or
stagnation are rejected, there remains the possi-
bility of change in the Central European situa-
tion by gradual increments. The argument
against gradual progress is that it is too slow
or that it may halt short of the desired goal.
The contrary argument is that expectations
grow with progress. One success begets
another. Wliich point of view is valid cannot,
perhaps, be determined in general but must be
decided case by case.
To take the instance of most immediate con-
cern to Berliners, does the pass agreement
strengthen or weaken the wall ? Does the fact
that Western members of Berlin families can
on certain occasions get permits to visit their
relatives in the East make the wall less intolera-
ble and thus lessen determination to bring about
its ultimate fall ? Or does the minimal satisfac-
tion of human needs rather strengthen the con-
sciousness that these needs remain in great part
denied? Certainly, from tlie point of view of
influencing international ojjinion — which the
874
DEPARTMENT OF STATE BULLETIN
Soviets cannot wholly ignore — a photograph of
a blank stretch of concrete is less eloquent tlian
one of West Berliners lining up to obtain for
a few short hours a right that should belong to
all humankind.
More broadly, if we opt for the coui'se of
gradual progress, what assurance have we that
changes in Eastern Europe can, in time, alter
the situation in the center of Europe? A flat
assurance cannot be given. A probability does,
I think, exist.
That probability, it seems to me, is that steps
which lead toward normalization — and I am
not speaking here of dealing with Ulbricht —
will lead toward our goal in Central Europe.
True gains in normalization are not likely to be
lost, since the logic which brought them about
would make it an affront to reason as well as to
justice to turn back upon them. One gain
builds upon and reinforces another in ways
varied and unforeseeable. Actions here induce
pressures for actions elsewhere. Actions move
from the sphere of the particular to the general,
from the personal to the social, from the ad hoc
to the politically significant.
A Magnetic Pull
Let me suggest how this progression applies
to the problems in Central Europe. One ele-
ment in the ferment in Eastern Europe is a
reaching out to the West. It is expressed in
humdrum terms — a desire to increase commerce,
an ambition to attract tourists, a willingness to
exchange trade missions, as j'our countiy has
done with several countries of Eastern Europe.
In essence, however, these are in my view mani-
festations of a more historic movement. Europe
is an entity artificially severed into parts. We
see the stirring of an impulse to bring these
parts together again.
Naturall}^ the stirring is tentative; naturalh',
limits upon it are set by the knowledge that
much depends on the attitude of the Soviet
Union toward any given step. But there is in
motion here a trend whicli the Soviet Union has
had to recognize and which may in the future
profoundly alter the shape of Europe. What is
the meaning of this trend for Central Europe
and for Germany ?
At a minimum it means that every increase
in contacts between the West and the Eastern
European countries further isolates the Ulbricht
regime and increases the pressure exerted
against it by the people of the Soviet Zone to
resume a normal relationship with their fel-
low Germans in the Federal Republic. It is
difficult to deny Germans the right to talk with
Germans when Poles may do so.
At a maximum — and we of the West can do
much to determine whether the trend shall have
maximum effect — the process which has begun
could lead onward to the reunification of Ger-
many within a uniting Europe. Already, to use
an analogy from the physical sciences, the West
exerts upon the East a measurable magnetic
pull. The rising expectations of the East, in
turn, constitute a matter of great interest — an
attraction to the West — which reciprocates th&
pull of the West. It is, I believe, a valid anal-
ogy to see the growing ties between Eastern
and Western countries as lines of magnetic
force, constantly increasing in number and
intensity.
The movement of the Western coimtries
closer to one another — toward the establishment
of a tighter international community in West-
ern Europe and, at the same time, its integra-
tion into a broader Atlantic partnership — con-
tributes to the generation of this magnetic field.
That it could do so was perhaps hard to realize
at the moment when the first steps toward
European integration were taken. Now that it
has had this effect, however, the West should
give increasing weight to it in the formulation
of policy on current problems within Western
Europe and the Atlantic community.
It would indeed be hopeless to expect the
magnetism of mankind's hopes for peace and
progress to be powerful enough to influence the
East if it were insufficient to bring together the
separate national parts of the West. To gen-
erate a field of full intensity, the West must
first make sure its policies are so alined that
they do not cancel themselves out, but reinforce
one another.
Now, the special characteristic of a magnetic
field is that it exists not only at its generating
poles but through all space between. No piece
of responsive mattei* — which in tliis analogy
DECEMBER 21, 1964
875
means no people or nation — can remain unaf-
fected when lines of majrnetic force begin to
pass through it. As the lines increase in num-
ber, and the field in intensity, there is an in-
creasing pull toward a certain alinement.
Germany lies at the center of Europe and
hence within a field of magnetic force which
grows stronger with every new tie joining
Eastern and Western Europe together. As the
parts of Europe orient themselves more and
more toward each other, it will become increas-
ingly difficult — require a progressively greater
Communist effort — to keep the Soviet Zone of
Germany out of its proper alinement. There
will come a day when it will be freed at last to
turn toward West Germany, as surely as the
needle of a compass swings to the magnetic
pole.
The paramount necessity, from the Soviet
point of view, is to have security on Russia's
western borders. This is a legitimate aim.
How well can this need be satisfied by continu-
ing to "hold on" to an increasingly unwilling
satellite in the Soviet Zone of Germany, in the
circumstances I have described? In many re-
spects the Soviet Zone is already a liability
rather than an asset to the Soviet Union. How
useful will it be to maintain in this one place
a neocolonialism which becomes progressively
more anachronistic? Will it be worth incur-
ring a continuing distrust and repugnance
which would prevent the Soviet Union from
successfully pursuing broader aims? In a unit-
ing Europe with which the Soviet Union would
need to be able to live in peace, the value of
the Soviet Zone will steadily drop and the im-
portance of a broader European arrangement
increase.
There is much to be done in the meantime.
The "magnetic theory" of German and Euro-
pean reunification is not a plan to let automatic
forces do our work for us. It is an effort to
express coherently a pattern of forces and
influences upon which our policies can act.
Simultaneously with the encouragement of
hopeful trends in Eastern Europe, there can
and should proceed policy actions in other
fields: a careful maintenance of the Western
position in Berlin; an exploration of the pos-
sibilities for useful talks with the Soviet Union
on the issues which divide East and West,
whether these be central or peripheral; a con-
tinued alertness for an opportunity to come
directly to grips with the German problem as
a whole.
There are no sure roads to our goal. We
shall, however, have the best chance of reach-
ing it in the end if, like Ernst Reuter, we bear
in mind that it is a single destination upon
which many roads converge. If we explore
them all with a view to removing from them
what obstacles we can as we go along, we shall
find ourselves approaching our objective in a
measured and graduated way. As to a detente^
we shall not consciously be pursuing one. If,
in the end, our efforts result in a detente, well
and good. We shall have deserved it.
Radio Free Europe
Remarks hy President Johnson ^
Mr. Greenewalt,'' gentlemen : I want to thank
you for coming to the White House today. In
the last year I have had the pleasure of welcom-
ing many of you on other occasions here.
Some of you have come as valued advisers on
matters of general policy. Others have come
as representatives of the great American busi-
ness community. A few of 5'ou have even come
to help in a political election. But you are all
welcome today, without regard to what you may
have said or thought or done in the months be-
fore November 3. Our business today is the
business of freedom, and that is a subject on
which Americans are always united.
I have been a supporter of Radio Free Europe
since its earliest years. I have watched it grow
and become a major link between the world of
freedom and the brave peoples of Eastern
Europe. Radio Free Europe has helped to
keep alive their longing for freedom. In their
own languages, in voices of their own country-
' Made at a luncheon at the White House on Dec. 2
for officials of Radio Free Europe (White House press
release).
' Crawford II. Oreenewalt, chairman of the board of
the Radio Free Europe Fund.
876
DEPARTMENT OF STATE BULLETIN
men, it tells the truth. It tells what is happen-
ing in Europe and America and Asia and
Africa. It even tells them what is really hap-
pening inside the Communist world.
As President, I am proud that our people,
througli their contributions to RFE, help to
support direct communication with the people
of Eastern Europe.
Radio Free Europe is now more significant
than ever. History is again on the march in
Eastern Europe and on the march toward in-
creased freedom. These people — and some of
their rulers — long for deeper, steadier, and
more natural relations with the West. We
understand this longing, and we intend to re-
spond to it in every way open to us.
We will welcome evidence of genuine willing-
ness on the part of East European governments
to cooperate with the United States Government
in joint endeavors. We will reject no such over-
tures out of hand. We will judge them in terms
of the true interests of our own people and the
people of these countries. We wish to build new
bridges to Eastern Europe — bridges of ideas,
education, culture, trade, technical cooperation,
and mutual understanding for world peace and
prosperity. In this process there is no greater
instrument than truth. And truth is the daily
business of Radio Free Europe.
When the peoples of Eastern Europe are
again able to enjoy radio broadcasting from
their own capitals which tells them as much as
Radio Free Europe does, then Radio Free
Europe will have finislied its job. Until then,
RFE has work ahead of it, day in day out, year
in year out.
I urge you all to continue to support Radio
Free Europe vigorously. I ask you to tell your
friends and associates, your neighbors and col-
leagues, how much I care about Radio Free
Europe, how proud I am of the strong backing
given to it by the American people, above all,
how vital I believe it is that this strong voice
of truth and freedom have the means to keep
up its good work on behalf of the people of
Eastern Europe.
So I thank you again for coming, and now I
would like to turn this meeting over to a man
who has been doing a magnificent job of leader-
ship in this great work, Mr. Crawford Greene-
wait.
President Johnson Commissions
U.S.S. Sam Rayburn
Remarks hy President Johnson
White House press release dated December 2
My fellow Americans: Today we are com-
missioning our 28th nuclear-powered Polaris
submarine. This submarine will be named for a
great American — the late Speaker of the House
of Representatives, Sam Rayburn.
Polaris submarines are named for great
patriots who have rendered distinguished serv-
ice to the cause of freedom. Nothing could be
more appropriate than to honor in this fashion
Sam Rayburn.
In our times, no man pursued that cause with
greater fervor, nor with greater distinction,
than did this great representative of tlie people.
He served in the Congress for nearly half a
century. He held the high office of Speaker
longer than any other American. His acliieve-
ments and his example will endure so long as
this Republic stands.
Mr. Rayburn was a man of peace, but he was
also a man of firmness and courage. He knew
that peace and freedom could be preserved only
if we, as a nation, held steadfast to a course of
firmness and courage. Many of the victories
won on fields far away began in the leadership
of Mr. Rayburn — and others like him — in the
halls of our Congress.
When Mr. Rayburn died in 1961, only two
Polaris submarines had been deployed. Soon
there will be 41, on patrol beneath the seas of
the world, virtually inv-ulnerable to surprise at-
tack by any enemy. Yet the purpose of this
new submarine — like those which came before
and those which will follow — is not war, but
peace. While such power exists, no potential
enemy can hope to profit from an unprovoked,
surprise attack on the United States.
Our Polaris missiles, together with our
strategic bombers and our long-range missiles
ashore, guarantee any adversary that retaliation
for a nuclear attack on this country would be
inevitable and devastating. Because the world
knows this, the chances of war are lessened —
and the chance of lasting peace is greater.
As we put this fine ship into commission, let
U9 reaffirm our dedication to the cause of peace
877
and the pursuit of justice among men aroimd
the world. We of this generation share respon-
sibility not only for our own security but for
the security of the entire free world. In facing
these responsibilities we pursue not our own in-
terests but the interests of all mankind. It was
by this standard that Sam Rayburn served his
country, and it is by this standard that we live
and labor today.
Our great strength exists not to destroy, but
to save — not to put an end to life as we know it,
but to put an end to conflict and war as man has
known it since time began. With God's help,
that is what we shall do.
Development Financing and the Alliance for Progress
The -first Latin American meeting of develop-
ment financing institution's, sponsored l)y the
Inter-American Development Bank, was held
at Washington, D.C., November 30-Decemher 2.
Following are texts of an address made at the
opening session hy Secretary of the Treasury
Douglas Dillon; a statement made hy Philip
Glaessner, Director, Office of Capital Develop-
ment, Bureau for Latin America, Agency for
International Development; and an address
made at tlie closing dinner meeting hy Under
Secretary of State W. Averell Harriman.
ADDRESS BY SECRETARY DILLON, NOVEM-
BER 30
I am extremely pleased to take part in this
inaugural session of the first Latin American
meeting of development financing institutions.
Tlie organizations represented here are in the
very forefront of the Alliance for Progress.
Few others come into closer or more constant
contact with the intense and insistent need for
more rapid development that lies at the heart
of our alliance. And few other organizations
can do more to help meet that need, since no
single factor is more essential to successful eco-
nomic development than investment. For that
reason the meetings which you are now initiat-
ing will not only offer an invaluable opportu-
nity for Ihe exchange of ideas and experience
among specialists in your field but will also
serve as a highly useful and instructive public
forum.
It is difficult, in fact, to overstate the impor-
tance of your efforts to the success of our
Alliance for Progress, for much that we aspire
to achieve will depend upon those efforts.
Because my country has long recognized that
fact, nowhere has its support for development
financing institutions been keener, more wide-
spread, or more diversified than in Latin
America. Even before the formal adoption
of the Alliance for Progress, United States
participation in the Inter-American Develop-
ment Bank demonstrated that support. In
addition to the intensive work of the IDB itself,
the Agency for International Development and
its predecessor agencies have made 49 loans,
totaling $332.4 million, to assist development
financing institutions thoughout Latin America.
These loans have been used to encourage,
develop, and sustain an extraordinarily broad
range of investment. AID loans have been used
to assist all kinds of development banks, both
public and private, as well as other more spe-
cialized institutions in the fields of agriculture,
fishing, mining, industry, and housing. In some
countries, loans for development relending pur-
poses have been made to central banks, in others
to commercial banks — some of them regional
in nature — and, in still others, to national de-
velopment corporations, which typically com-
bine development financing functions with pub-
lic administration functions. In Colombia, for
instance, part of the peso counteri^art of AID
progi-am loans has been used to finance a Private
Investment Fund wliich, under tlie ovei-all su-
878
DEPARTMENT OF STATE BULLETIN
pervision of the Bank of tlie Republic, is ad-
ministered tlixough the commercial banking
system.
Development of Capital Markets in Latin America
The immense diversity so evident in even the
few institutional arrangements that I have cited
underscores both how enormous and how diverse
is the Latin American need for development
financing. Even more significantly, it points
up the growing need for the development of
effective and efficient capital markets through-
out Latin America.
Two of the main reasons for the emergence
of development financing institutions such as
those represented here today are the need for
long-term investment capital and the need to
foster the growth of local capital markets.
These needs, however, since they occur in differ-
ent environments, will tend to be different in
detail — and so, invariably, will the institutions
that arise to serve them. As a result, specializa-
tion is as necessary, healthy, and desirable in
development financing as it is in other fields.
But it can be carried too far. Overly specialized
institutions will probably not be able to contrib-
ute effectively to the development of capital
markets. In certain cases a development financ-
ing institution may even become a substitute
for some of the ordinary functions of a capital
market and thus actually retard the development
of that market.
Far too little attention has, in fact, been given
to the development of capital markets in Latin
America — undoubtedly because of the complex-
ity and difficulty of this endeavor. There are,
however, a number of tilings that development
financing institutions can, and should, do to
encourage the growth of indigenous capital mar-
kets. They can, and should, make their invest-
ments with a considered, even primary, view to-
ward their future value and marketability.
Most development financing institutions can di-
rectly nourish the growth of a local capital mar-
ket by sales from portfolio, by participations,
or by sales of their own shares to the public.
Many can underwrite new issues of securities or
attract direct investor participation in their own
projects.
In all of these ways, and in many others.
development financing institutions can foster
useful connections between savers and investors.
If for some legal or institutional reason a de-
velopment financing institution is unable to help
in securing these connections, then certainly
steps should be taken to remedy the situation.
For the establisliment of such connections is one
of the most important social services develop-
ment financing institutions can provide, as well
as one of their own best assurances of a viable
and worthwhile future.
Thus, encouraging the growth of local capital
markets is one of the most fruitful ways in
which the institutions represented here can
make even greater contributions toward accom-
plishing the enormous economic and social task
that we have set for ourselves imder the Alliance
for Progress.
Recent Progress Under the Alliance
The aim of that alliance, as we do well to
often remind ourselves, is to relieve as rapidly
as possible the lot of millions of people in this
hemisphere who, while they live within sight
or hearing or even touch of a world of great
abundance, remain in bondage to the bleak
heritage of the past. None of us has ever been
deceived about the magnitude — or the impor-
tance— of the task before us. We have always
known that the mistakes of centuries could not
be redeemed in a few years. We have known,
as well, that we must be prepared to meet with
renewed determination and added patience the
setbacks that inevitably occur as the massive,
mounting impatience of long unsatisfied needs
rebels at what often seems — and will oft^n con-
tinue to seem — interminably slow and infini-
tesimally small progress.
We have all heard — and we will undoubtedly
continue to hear — those skeptical voices that
tell us the alliance is faltering or failing be-
cause its goals are not yet achieved. But we
must avoid the corrosive taint of such skepti-
cism, just as we must, with equal vigor, avoid
being so hypnotized by high hopes that we
forget the need for real, tangible progress.
But in these days, above all, we can take
heart. For despite frustrations and failures,
there is hard, unshakable evidence on every side
that the alliance is indeed moving forward.
DECEMBER 21, 1964
879
that we are joining a firm adherence to princi-
ple with a solid grasp of realities, that we are
bringing realistic solutions to the problems of
the day.
Let me review very briefly some of our recent
progress. In my own country, as you know,
President Johnson early this year placed the
Latin American bureau in the State Depart-
ment and the Latin American division of AID
under the single command of Assistant Secre-
tary of State Thomas C. Mann,^ who combines
an extraordinary personal competence and a
prudent respect for political and economic real-
ities with a profound and sympathetic under-
standing of the human needs which the alliance
is designed to serve. This yoking of our AID
activities and our political and economic poli-
cies concerning Latin America under Assistant
Secretary Mann has already yielded important
and concrete results. In the first 6 months of
1964 we made more Alliance for Progress loans
than in all of 1963 — committing all of the funds
made available by the Congress. More signifi-
cant still, the new and improved coordination
in our dealings with Latin America has meant
an improved quality in projects approved and
thus a greater contribution to Latin American
economic and social development than ever
before.
In a move of major importance to the success
of the alliance the Inter-American Committee
on the Alliance for Progress was formed, thus
strengthening the multilateral nature of the al-
liance and creating, for the first time, a perma-
nent forum in which the American Republics
can together examine and discuss in detail the
whole spectrum of their economic problems,
needs, and accomplishments. By including in
its studies and discussions not only govern-
ments but the Inter-American Development
Bank, the World Bank, the International
Monetary Fund, and outside experts, the Com-
mittee exposes the many and difficult problems
throughout our hemisphere to the careful and
searching analyses of the best talent the hemi-
sphere has to offer. CIAP has already earned
the confidence of all our governments. The
' For text of a letter dated Dee. lO, 1003, from Presi-
dent .Tohnson to Ambassador Manu, see Bulletin of
Jan. 0, 1964, p. !).
studies it has underway, and its excellent recent
report ^ on problems and prospects in Latin
America, have given us solid grounds for assur-
ance that CIAP will be a major force for prog-
ress under the alliance.
Evidence of Solid Gains
When we turn to survey the Latin American
countries themselves, we can already see the
kind of concrete results we expect the alliance
to produce increasingly in the future. The
high growth rates in Venezuela, Mexico, Cen-
tral America, and in certain other countries
have been accompanied by a new confidence in
the stability and viability of those countries'
economies — a confidence tangibly expressed in
a rising flow of foreign investments. United
States investors, for example, are now investing
in Latin America at about twice the rate they
did in 1963.
We also see, throughout the hemisphere, a
heartening growth in self-help measures —
measures which, more perhaps than any other
single factor, signal how genuine and lasting is
our progress under the alliance. Since the al-
liance began, all countries have improved their
tax administration capabilities and nine coun-
tries have adopted major tax-reform legislation.
Twelve countries have introduced agrarian re-
form legislation. As a whole, Latin American
education budgets have been increased by close
to 13 percent a year, with 5 million more chil-
dren attending school. Fifteen countries have
established self-help housing programs. Nine
countries have passed legislation for savings
and loan associations, and eight countries have
established new private or public development
banks.
Programs under the alliance have helped
build more than 23,000 classrooms, more than
220,000 houses, some 3,000 miles of roads, and
more than 1,000 water-supply and sewage sys-
tems serving 15 million people. They have
helped create some 900 credit unions, have made
more than 200,000 agricultural credit loans, and,
' For a statement made by President .Tohn.son on
Nov. 13 regarding the report, see ibid., Dec. 7, lOfrt,
p. 804. Copies of the report will be available at a later
date from the office of the Assistant Secretary for Eco-
nomic and Social Affairs of the Organizaticm of Ameri-
can States. Pan American TTnion, AVashington, D.C.
880
DEPARTStENT OF STATE BULLETIN
in this year alone, have helped feed more than
23 million people.
And while there have been — and we must,
realistically, continue to expect — some setbacks,
any overall evaluation of the past 3 years can
only lead to the conclusion that the cause of
political freedom and social progress through-
out the hemisphere has been markedly well
served.
In these and other respects our partnership
under the Alliance for Progress is producing
the kinds of results that can be seen and felt —
the kinds of results that help better the lives
of millions of our people, that nourish in them
new hope and new confidence that the alliance
is indeed capable of high performance as well
as high promise.
This year, therefore — the fourth under the
alliance — we should dedicate ourselves to re-
doubled effort toward our goal of economic,
social, and political progress for all the people
of Latin America, confident in the knowledge
that, while problems will continue to beset us,
■we have made solid gains upon which to build,
confident in the knowledge that, in words
spoken to the ambassadors of the Latin Amer-
ican nations by President Johnson earlier this
year : ^
"We have reached a turning point.
"The foundations have been laid. The time
calls for more action and not just more words.
Li the next year there will be twice as much
action, twice as much accomplished as in any
previous year in this program. I can say that
with confidence, and I can say that our Alliance
for Progress will succeed. The success of our
effort — the efforts of your countries and my
country — will indicate to those who come after
us the vision of those who set us on this path."
STATEMENT BY MR. GLAESSNER, DECEM-
BER 2
The overall program of the Agency for In-
ternational Development of financial assistance
to intermediate credit institutions, both private
and public, around the world is very extensive
indeed. Between September 1951, when one of
' Bulletin of June 1, 1964, p. 854.
aid's predecessor agencies made the first loan
of this type to a development bank in Turkey,
and June 30, 1964, AID or its predecessor agen-
cies had authorized dollar and local currency
loans and grants totaling the equivalent of $1.3
billion to 106 separate institutions located in 48
countries. The reason why AID's program has
been so extensive is that we believe that well-
functioning intermediate credit institutions rep-
resent key instruments in the economic and
social development process. From the opera-
tional point of view of an external financial in-
stitution involved in development financing,
they offer, moreover, a most practical solution to
the difficulties of providing foreign exchange
and local-currency financing in moderate
amounts on medium or long terms to qualified
subborrowers.
The kinds of intermediate credit institutions,
both public and private, to which AID funds
have been loaned cover a broad spectrum. Re-
cipients have been industrial development
banks, housing institutions, agricultural credit
institutions, and banks for cooperatives. Re-
cipients have been privately owned, govern-
ment-owned, or "mixed" institutions. Regard-
less of the ownership of the recipient institution,
however, a major impact on the private sector
has been achieved because all sublending has
been limited to qualified private individuals or
concerns.
With regard to institutions located in Latin
America, AID has provided loans amounting
to $467.7 million or the equivalent in local cur-
rencies. In the last 2 years we have been par-
ticularly active in making dollar credits avail-
able to private industrial development banks.
We have assisted in the financing and in many
cases have served as the catalyst in establishing
such institutions in Bolivia, Costa Rica, El
Salvador, Guatemala, Honduras, and Panama.
We have also assisted government-owned in-
dustrial banks in Brazil, Ecuador, El Salvador,
Nicaragua, and Uruguay. In general, these
credits are to be used to make subloans of 2
to 12 years' duration; in a number of cases we
permit use of AID funds to purchase equity,
and under special circumstances we are willing
to have AID funds used to cover not only the
cost of fixed assets but also part of the working
capital requirements of subborrowers.
881
Needs of Private Development Banks
Our experience in Latin America and other
parts of the world leads us to the conclusion that
the following key ingredients are necessary for
the creation and operation of a successful pri-
vate development bank :
In the first place, new private development
banks have a difficult problem in meeting ex-
penses in their early years of operation. In
order to make them viable it is frequently neces-
sary to work out special arrangements to
handle these expenses. Included among the
devices which have been used by AID, by other
external lending institutions, and by the govern-
ments of the countries concerned are : long-term
dollar loans at little or no interest, local-cur-
rency loans without maintenance of value,
assistance on administrative costs, tax benefits,
high debt-equity ratios, guarantees of dividends
in early years, and so forth.
Once the proper financial arrangements have
been worked out for establishing a private
development bank, the key ingredient for its
successful operation is, of course, skilled man-
agement, which has the ability to make the
bank a financial success while, at the same time,
carrying out its basic developmental function,
which can be summed up in the words "ap-
praisal banking." While we all recognize that
in many respects appraisal banking is nothing
more than a somewhat pedantic way of describ-
ing the art of the investment banker, systematic
appraisal of subprojects for technical, financial,
economic, and organizational viability is a disci-
pline which is doubtless of special benefit to the
subborrowers in countries where many indus-
trial ventures break new ground and involve
special risks.
To assemble a competent management team
and assist it, if needed, by helping it find tech-
nical advisers or enabling it to train its staff,
often proves to be the most difficult and time-
consuming task in the setting up of successful
private development banks. Only thus can
management be certain that it will have at its
disposal staff which plays an active, dynamic
role by seeking out subborrowers, helping them
to put their ideas into loanable project form,
and providing them with the needed technical
as well as managerial assistance to assure suc-
cessful execution of the projects.
In inflationary situations which are so com-
mon in many of the coimtries where AID oper-
ates, development banks face the problem of
the possible erosion of their capital and impair-
ment of their ability to repay foreign loans.
In these cases, opportunities for equity partici-
pation must be found if the bank's resources
are to be protected. Alternatively, readjust-
ment clauses in subloans can be used where this
is legally feasible. Our experience indicates,
nevertheless, that when the rate of price infla-
tion exceeds relatively moderate limits, it is
virtually impossible to develop private develop-
ment banks that stand a reasonable chance of
success in terms of attracting within a few
years private savings at home and abroad on
more conventional terms than the original AID
financing.
Finally, a vital condition for the success of
a private development bank is that it develop
close relations with other financial and techni-
cal institutions, both foreign and domestic.
Ideally, the bank should be able to promote
foreign private capital investment not only in
its own organization but also in other local en-
terprises. To stimulate this the bank must be
willing and able to work with other local finan-
cial institutions such as commercial banks,
insurance companies, et cetera, to exchange
credit information and combine in joint financ-
ing operations. A natural extension of this
would be for the bank to take the lead in estab-
lishing a location for the exchange and con-
version of securities — the beginning of a local
stock exchange.
Thus a successful development bank can
grow into a local clearinghouse of information
on investment opportimities and become a con-
duit for the channeling of foreigii as well as
local investments.
AID'S Experiences In Industrial Lending
Besides assisting in the creation of new pri-
vate industrial development banks, AID's most
interesting experience in Latin America with an
intermediate credit financing mechanism for
medium- and long-term industrial credit is the
Private Investment Fund in Colombia. This
Fund, which was set up by the Bank of the
882
DEPARTMENT OF STATE BULLETIN
Republic with the financial assistance of AID,
operates through the Colombian private com-
mercial banking system and investment houses.
It deserves special study because it makes most
effective use of existing institutions, adapting
their operations in such a way that the broad
knowledge of local conditions and the credit
standing of subborrowers which only the local
connnercial bank can provide is combined with
a degree of "appraisal" banking and the careful
channeling of resources into priority sectors,
especially new or expanded export production.
Using the equivalent of $40 million of the
peso proceeds from AID program loans, the
Private Investment Fund has proved so suc-
cessful that AID recently indicated its willing-
ness to provide the Fund with 10 million in
dollars in order to meet the foreign exchange
requirements of their subborrowers. We are
studying the applicability of the Private In-
vestment Fund financing technique in a number
of other Latin American countries.
I have already referred to AID's activity in
financing four private and two public national
development banks in Central America. Given
the United States" special interest in the success
of the Central American integration movement,
this effort to assist industrial development at
the national level has been complemented by
vigorous efforts to collaborate with the Central
American Bank for Economic Integration since
its very inception. This Bank, you will remem-
ber, was established in May 1961 by agreement
between initially four, and later five, Central
American governments.
AID provided an initial grant of $2 million
to assist in the general startup cost of the Bank.
In June of 1962 we provided a million-dollar
grant to enable the Bank to conduct basic eco-
nomic studies. In August of 1962 we author-
ized a loan of $5 million for relending to
qualified industrial and agricultural subbor-
rowers. In November 1963 we authorized a
$2.5 million loan to assist the Bank in conducting
additional feasibility studies in the Central
American region. In May of 1964 we author-
ized an additional loan of $10 million to be used
for relending to industrial projects. We con-
sider that the contribution of the Central Ameri-
can Bank for Economic Integration to the in-
dustrial development of the Central American
Republics has been very impressive indeed and
further, that this Bank is organized and staffed
to use in a sound and prudent fashion the credits
which both we and the Inter- American Develop-
ment Bank have made available to it.
Many other experiences in industrial lending
through intermediate credit institutions with
which AID has become associated in Latin
America deserve special mention, but time per-
mits only the most cursory mention of COPEG
in the State of Guanabara, which has been un-
usually successful in combining promotion of
new ventures with loan financing and has de-
vised ingenious ways of protecting its capital
in the face of very rapid inflation, and the
Agricultural and Industrial Jjoan Department
of the Banco do Brazil, which has in recent
months done real pioneer work in financing
small and medium industry and is now starting
to use local currency put at its disposal by AID
to finance the special working capital needs of
export industries.
Credit for Housing, Agriculture, and Cooperatives
I would like to touch briefly on the loans we
have made available to housing institutions in
Latin America. As you know, we have under-
taken a substantial program to assist a number
of countries in the establishment of savings and
loan associations in an effort to stimulate
national saving efforts. Our credits have
l>rincipally gone to central housing banks.
The record of savings and loan associations
created, savings accounts opened, and new
houses financed in Chile, Peru, Ecuador, and
the Dominican Republic as a result of wise
utilization of our funds is impressive indeed.
While these AID credits have gone, in the
main, to goverimient institutions, their unpact
at the grassroots level on the private citizen
and his possibilities of saving at a remunerative
rate of interest and securing long-term mort-
gage financing has been very rewarding. The
housing program in Mexico also deserves special
mention, as it involves a major mobilization and
redirection of domestic savings, uses existing
banks and savings institutions, and is assisted
by IDB and AID credits. Note should finally
be taken of the creation in the Central American
883
Bank for Economic Integration of a fund for
secondary mortgage financing for Central
American housing finance institutions on the
basis of an AID credit.
Similarly, AID has made approximately
$100 million available to agricultural credit
institutions in Latin America, which, while
entirely government-owned, nonetheless have
provided credit which would not otherwise be
available to the small farmer. Our programs
of supervised agricultural credit in Colombia,
Venezuela, and Costa Rica have been successful
in providing major impact on the credit-thirsty
agricultural community. In Mexico, where
credit for the small farmer has been virtually
unavailable, we have assisted in working out an
interesting system involving the Nacional
Financiera, the Bank of Mexico's fund for the
guarantee and promotion of agriculture, live-
stock, and poultry farming and the private
banking system. Briefly, the small farmer
applies to his local private bank for a loan to
improve his farm. If the agricultural credit
specialists whose salaries are paid by the fund
and whose services are available to the partici-
pating private banks agree that the farmer's
proposal will increase his productivity, the
commercial bank makes the loan, discounting
the paper with the fund. Thus credit is being
provided the small Mexican farmer through
private channels with the full support of gov-
ernmental credit. A similar system has just
been established in Brazil with AID assistance.
Finally I would like to mention a new form
of lending which AID has inaugiirated this
past year. In 19G4 for the first time we con-
cluded our first loans with two banks for coop-
eratives. In Ecuador we are assisting a bank
which will work with industrial cooperatives;
in Uruguay, a bank which will serve agricul-
tural cooperatives. We believe that support of
the cooperative movement in Latin America
will help to build institutions particularly well
suited for the promotion of economic progress
and community action among groups of the
population that could not be effectively reached
otherwise.
From this brief review of our experience, you
can see that AID's credit program for inter-
mediate credit institutions in Latin America is
large and varied and rapidly expanding. "We
look forward to a continuation and expansion
of this rewarding and creative work in collabo-
ration with our partners in the Alliance for
Progress, the success of which depends so heav-
ily on the mobilization of the resources and
talents of the private sector.
ADDRESS BY UNDER SECRETARY HARRIMAN^
DECEMBER 2
Press release 510 dated December 2
We have passed an important turning point
m the Alliance for Progress, and meetings such
as this one are evidence of that significant fact.
The alliance began as a great vision and a call
to arms, for, as President Jolin F. Kennedy said
on March 13, 1961,*
. . . our unfulfilled task is to demonstrate to the en-
tire world that man's unsatisfied aspiration for eco-
nomic progress and social justice can best lie achieved
by free men working within a framework of democratic
institutions.
The alliance is a means of fulfilling that task,
and its specific goal is defined in tlie Charter of
Punta del Este." In tliat document the Ameri-
can Republics proclaimed their decision to
. . . unite in a common effort to bring our people
accelerated economic progress and broader social
justice within the framework of personal dignity and
political liberty.
But like all great ideas, the alliance could not
hope to achieve its goals without effective ma-
chinery for action and cooperation. It re-
quired not just words but the deeds of men and
governments, of bankers and businessmen, of
labor and farmers. It involves not only the
Latin American nations and the United States
but the other industrialized nations of Europe,
Canada, and Japan as well.
We are therefore gratified at tlie growing
interest and participation of these other indus-
trial nations in the Alliance for Progress, their
public and private support for Latin American
economic and social deveiopniput, and, most re-
cently, their desire to participate more in the
alliance. The Inter-American Development
* Ibid., Apr. 3, 1961, p. 471.
' For text, see ihid., Sept. 11, 19G1, p. 4t>3.
884
DEPARTMENT OF STATE BULLETIN"
Bank already is in negotiation with Canada,
Great Britain, and tlie Netherlands for funds
which will be administered by the Bank. It also
has sold bonds in Italy, Germany, and Great
Britain. The recently demonstrated interest of
France is welcome. Besides that, there is some
interest by European nations in attending the
country reviews which CIAP is conducting. I
want to assure you that the United States sup-
ports and encourages moves for the expansion
of Latin America's trade with other nations of
the free world, just as it seeks to encourage
greater public and private investment in Latin
America by other members of the free-world
community. I hope, too, that the development
banks will make special efforts to expand their
own contacts with potential investors, both do-
mestic and foreign, for all of this will add to the
resources which are needed.
Establishment of CIAP
I knew from my personal experience in Presi-
dent Roosevelt's New Deal here in the United
States and in the Marshall Plan in Europe how
important is the development of effective operat-
ing machinery to convert broad visions into
working programs. So it was with great satis-
faction that I took part last year in the Sao
Paulo meeting of the Inter- American Economic
and Social Council.^ There we established the
Inter-American Committee on the Alliance for
Progress (CIAP, as it is known from its Span-
ish initials). This strong, permanent commit-
tee, working under the leadership of a distin-
guished Latin American chairman, Dr. Carlos
Sanz de Santamaria of Colombia, has given
vigorous new impetus to our common efforts in
the alliance. Doctor Sanz, I can testify, was a
most able and effective chairman of the General
Committee at the Sao Paulo meeting, and it
was in this committee that the bulk of the work
was transacted. CIAP, as you know, is meeting
in Lima this week, jointly with the third re-
view meeting of the Inter- American Economic
and Social Council.'
° For a statement made by Mr. Harriman at S5.o
Paulo on Nov. 13, 1063. see ibid.. Dec. 16, 1963, p. 937.
' For announcements of the U.S. delegations to the
meetings, see ibid., Dec. 14, 1964, p. 858.
Certain fundamental concepts shared by us
and our Latin American colleagues provided
the basis for establishment of CIAP. First, it
was clear to all that, if the alliance were to ful-
fill its high expectations, primary responsibility
had to be assumed by the governments and peo-
ples of Latin America. Only they have the
resources, the knowledge, and the capability of
promoting economic growth within the social
and political framework they desire. President
Jolmson has made it clear that the support of
this country for the alliance has never been
stronger. But the heaviest burden necessarily
rests with the Latin Americans themselves.
Second, in creating CIAP it was recognized
that there had to be some mechanism through
which all the governments and agencies work-
ing to promote development in Latin America
could pool their efforts and concert their pro-
grams. CIAP provides this needed point of
coordination.
Finally, the participants at the Sao Paulo
meeting thought it was time to identify specific
problems that were retarding forward move-
ment and to attack those problems in a practical
way. This would involve an analysis by the
inter- American system as a whole, with a jointly
determined set of standards for measuring per-
formance of individual countries. Such an
analysis would indicate to the institutions and
countries with available resources just where
those resources could be best applied. This
could not be done through the medium of one
annual review meeting. Wliat was needed was
some permanent body which could act aggres-
sively to move the alliance forward at a faster
pace.
It is fair to say that through CIAP we of the
hemisphere have rolled up our sleeves and gone
to work. For example, it was agreed at the
Mexico City meeting of CIAP that steps should
be taken to speed up formulation of national
development plans and projects. Nine coun-
tries in the hemisphere have already completed
such plans, and we hope that in the coming year
the list will be virtually complete. CIAP also
undertook intensive country-by-country reviews
of the status of alliance plans and programs.
It is giving a very substantial part of its atten-
tion to export promotion and to means for
DECEMBER 21, 1964
885
stimulating internal trade between urban cen-
ters and the counti-yside. In all, it has under-
taken some 20 tasks and is movmg ahead on all
of them.
It is working not only witli governments but
with other institutions such as the Inter-
American Development Bank, the International
Monetary Fund, the World Bank, the Nine
Wise Men,* and other experts.
You have heard from others of the steps
Latin American governments have taken to meet
their own internal economic problems — such
moves as tax reform, increased education budg-
ets, agrarian reform, and the like. So I will
not repeat them. But with all that has been
happenmg, in CIAP and in individual coun-
tries, I tliink it is clear why I say that we
have passed a turning point in our alliance. We
have moved from the avenue of ideas to the
highway of action.
Continuing Problems in the Development Process
The fact that progi-ess is being made must
not be allowed to hide the fact that major
problems continue to face most of the countries
in this hemisphere.
One such problem facing a number of Latin
American countries is the familiar, chronic
balance-of-payments deficit. This limits the
capacity of a nation to import the capital goods
it needs for its own development. Experience
has shown that the countries concerned must
diversify and expand their exports if growing
requirements for imports are to be met. Yet
many of the countries concerned continue to
rely on a limited number of exports and operate
under policies that tend to discourage exports.
Another major problem is the question of how
to get the private sector to make its full con-
tribution to economic and social progress.
With some two-thirds of domestic investment in
Latin America coming from the private sector,
it is clear that the goals of the alliance will not
be met if that sector is not making its full
contribution to development. It is likely to
do so only if government policies create a basis
for confidence that contracts will be respected,
' A committee of nine economic experts set up by
the OrRiinization of American States under the Charter
of Punta del Este.
that property rights will be protected, and that
there will be incentives to capital invested in
enterprises that contribute to economic growth.
For their part, local private investors will have
to reinvest their capital, seek profits through
increased volume, and be ready to compete with
imports rather than seek unduly protected
positions.
Related to the need for increasing domestic
private investment is the requirement to attract
investment from abroad. The flow of foreign
private investment into a developing economy —
as demonstrated in our own experience, as
well as that of Canada, Australia, and certain
Latin American countries — accelerates growth
and leads to further domestic private invest-
ment. Yet the private capital of the United
States, of Western Europe, and of other ad-
vanced countries has abundant outlets in the
free world. It has neither the desire nor the
necessity to locate where it is not wanted. Yet
without it, there will necessarily be gaps in
economic development which public funds can-
not fill. Nor is it a question of funds alone but
of the technical knowledge and managerial skills
that are simply not available in public hands.
Development banks play a vital role in the
development process. They can bridge the gap
between governments and the private sector.
They can act to strengthen the private sector h\
mobilizing and effectively using both public and
private savings for investment purposes. You
know from your own experience, and from your
discussions these past few days, how this is
working and the problems you have — the ex-
penses of early operations, the need for skilled
personnel, the erosion of working capital, the
perils of overinvestment in certam fields of
production, the relationship between national
plans and capital markets.
I do want to stress that the demands for eco-
nomic growth are so urgent that the climate for
investment, both foreign and domestic, must
improve. Institutional and psychological bar-
riers must be removed. And j'ou can play a
most important role in this process.
I particularly hope that you, in your posi- i
tions as leaders of your comnuuiities and na- 1
tions — positions which I also am sure will grow
in importance — will give attention to and sup-
port the work which CIAP is doing. It is im-
886
DEPARTMENT OF STATE BULLETIN
portant for you, for your country, and for the
inter- American system.
We have reached a turning point, and we are
moving ahead. We have a real alliance, and we
are making real progress. Much remains to be
done, but the recent past suggests that we can
meet and overcome our most serious problems.
I know that President Johnson was right
when he said 1 year ago : '
"The accomplishments of the years to come
will vindicate our faith in the capacity of free
men to meet the new challenges of our new
day."
Bill of Rights Day,
Human Rights Day
A PROCLAMATION'
Whereas December 10, 1964, is the sixteenth anni-
versary of the adoption by the United Nations of the
Universal Declaration of Human Rights as a common
standard of achievement, and December 15, 1964, is
the one himdred and seventy-third anniversary of the
first ten amendments to the Constitution of the United
States, which are known as the Bill of Rights ; and
Whereas the Universal Declaration proclaims for
the inhabitants of all the world the great rights to
freedom, justice, and etjuality already guaranteed by
our Constitution to the people of the United States ;
and
WHiaiEAS the worth of our Nation is measured
not by the material abundance of our society but by
the freedom which gives it purpose; and
Whereas the strength of our liberty is measured
by the respect each person accords the rights of others
and by the vigor of our government in defending these
rights ; and
Whereas the Civil Rights Act of 1964 has renewed
and enlarged our commitment to honor the principles
of our Constitution, without distinction as to race,
color, or creed :
Now, therefore, I, Lyndon B. Johnson, President
of the United States of America, do hereby proclaim
December 10, 1964, as Human Rights Day and De-
cember 15, 1964, as Bill of Rights Day, and call
upon the people of the United States to observe the
week of December 10-17 as Human Rights Week.
This country has survived and prospered mightily
in the belief that all men are created equal, that all
political power is inherent in the people, and that no
man or group of men should be entitled to exclusive
privilege or preferment over others. We have worked
hard and long, at home and abroad, that every man
may enjoy his right to security of person and of prop-
erty, to freedom of conscience and of press, and to equal
justice under law.
In this week especially, let us give thanks for that
love of liberty which made human justice and human
dignity the foundation stones of our Republic. Let us
be quick to speak when a man is threatened because
he has exercised his rights, and sturdy to resist when
freedom is denied or abridged through ignorance,
prejudice, or abuse of power. Let us be worthy of
the trust placed in our generation for the integrity of
the individual and the full and faithful protection of
his inalienable rights.
In witness whereof, I have hereunto set my band
and caused the Seal of the United States of America to
be afiixed.
Done at the City of Washington this first day of De-
cember in the year of our Lord nineteen
[seal] hundred and sixty-four and of the Independ-
ence of the United States of America the one
hundred and eighty-ninth.
By the President:
Dean Rusk,
Secretary of State.
U.S. and Panama Resume Talks
on Problems Related to Canal
The Department of State announced on
December 2 (press release 509) that the Special
Ambassadors of Panama and the United States,
Ricardo M. Arias and Robert B. Anderson, had
met that day to resume talks on the problems
related to the Panamp, Canal.' Ambassador
Arias, a former President of Panama, is also
that country's newly designated Ambassador
to the United States. Frequent meetings will
be held to deal with all problems which have
arisen between the two countries.
Ambassador Anderson was host at a small
luncheon " at the State Department to greet
members of the new Panamanian delegation,
who were recently designated by President
Robles.
°nid., Dec. 16, 1963, p. 912.
' No. 3631 ; 29 Fed. Reg. 16243.
' For background, see Bulletin of Apr. 27. 1964,
p. 655, and July 13, 1964, p. 54.
" For the guest list, see Department of State press
release 509 dated Dec. 2.
DECEMBER 21, 19G4
887
Impact of International Travel
on U.S. Balance of Payments
Statement hy Charles H. Mace ^
Mr. Chairman, it is a pleasure to appear
before this subcommittee and discuss the im-
pact of international travel on our balance-of-
payments position.
You have asked specifically for information
on the growth of travel abroad by United States
residents and on measures undertaken by the
Department of State for facilitating the ad-
mission of temporary visitors to the United
States.
During recent years there has been a contin-
uous growth in the number of United States
residents who have traveled abroad. In the
Department of State the Passport Office keeps
careful statistics basically for our own adminis-
trative and budgetary purposes ; these also serve
in some measure our travel and transportation
agencies by assisting their forward planning.
The following data on passport issuances and
renewals during the past decade illustrates the
effectiveness of the advertising programs and
the desire of Americans to "see the world."
Pnsnj)ort8
Fiscal year issued and renewed
1955 499,941
1960 828, 512
1964 1,088,958
The figures not only illustrate the consider-
able increases in foreign travel by Americans
but also, since our passports are valid for 3 years
and renewable for an additional 2, that the po-
tential number of annual overseas tourists is in
the 3- to 5-million range.
A few more statistics may be of interest to the
committee: Some 78 percent of the holders of
American passports travel for pleasure, 6 per-
cent on business, 3 percent for educational pur-
poses, 1 percent for religious, health, or scientific
reasons, with the remaining 12 percent being
official travelers.
There are, of course, several reasons for this
'Made before the Subcommittee on Touri.sm of the
House Committee on Banlsing and Currency on Nov. 30
(press release 5()8 dated Dec. 1). Mr. Mace is nepnty
Administrator of the Bureau of Security and Consular
Affairs; he was Acting Administrator when he made
this statement.
continuous growth of foreign travel. Among
them are :
1. Widespread prosperity in tlie United
States, together with lower air fares, makes it
possible for a wide range of the American pub-
lic to travel;
2. Jet speeds which tend to make a 3- or 4-
week vacation in a foreign country practicable;
3. A more pronounced interest in and inquisi-
tiveness about the foreign cultures and societies
on the part of a broader segment of the Ameri-
can people and almost all national publications
carry inducements to Americans to travel to al-
most any place in the world ; travel bureaus or
commissions of other countries do an excellent
job of advertising their attractions; and
4. Many American families avail themselves
of the opportunity to visit countries in which
a son might be stationed in the United States
military service.
While foreign travel by United States resi-
dents adversely affects our balance of payments,
a curb on such travel is not contemplated or
recommended.
In considering the effects of this travel
abroad and its contribution to the economies of
the countries abroad, we must not lose sight of
the U.S. advantages to airplane production, to
the U.S. transportation industry, and to the
thousands of travel agents throughout the U.S.
The administration's answer to the increased
travel of U.S. residents abroad has been to en-
courage foreign travel to the United States.
In his message to Congress on February 6,
1961, concerning the balance of payments,^ the
President stated that —
Foreign travel to the United States constitutes a
large potential market hitherto virtually untapped.
Tlie President added that vigorous steps should
be taken to encourage foreign travel to the
United States, including the establishment of
travel offices abroad, advertising campaigns,
simplification of our visa and entry procedures
for visitors, and efforts to relax foreign restric-
tions on travel to the United States.
A determined effort has been made by the
Department to simplify the visa issuance pro-
' For text of President Kennedy's message, see
Bulletin of Feb. 27, 1961, p. 287.
888
DEPARTMENT OF STATE BULLETIN
cedure within the qualitative and quantitative
limitations of the Immigration and Nationality
Act of 1952, which is the controlling legislation
for visa issuances.
The most significant step we have made has
been the institution in 1962 of what is generally
referred to as a visa-by-mail project. This
permits aliens to apply for a visa by mail or
tlirough travel representatives without a per-
sonal appearance before a consular officer. The
consular officer still has the authority to require
the personal appearance of any applicant whose
application does not establish his clear-cut
eligibility under the law. Prior to this time,
each visitor applicant had to make a personal
appearance before a consular officer to establish
his eligibility for his visa.
This program has been a tremendous success.
It has not served to reduce the security interests
of tlie United States and, of course, has gained
wholehearted acceptance on the part of foreign
applicants and the travel industry. At the
larger issuing consular offices an average of 40
percent of all visitor visas are being issued
without the personal appearance of applicants.
In some cases the average runs as high as 60
percent.
Secondly, all consular posts have been geared
to give immediate service to applicants who con-
tinue to appear at consular offices for a visa.
Tlie average eligible applicant can walk into a
consular office and have his visitor visa within
a few minutes after his arrival.
Tremendous strides have been made also in
recent years in increasing the efficiency and
productivity of the consular offices. A catalog-
ing of these steps here is not indicated, but they
have been directed toward faster, more efficient
and polite service to applicants.
In addition, there has developed a close work-
ing relationship between the United States con-
sular posts and the United States Travel
Service and the U.S. transportation representa-
tives. There are periodic meetings at posts
abroad to discuss problems of mutual interest.
American transportation companies have been
urged to keep display racks in visa waiting
rooms stocked with travel brochures, sailing
and flight schedules, and other promotional ma-
terial and to pro^dde posters for display. They
have been encouraged to print a combined
brochure, with equal space given to each com-
pany servicing a given area, to be mailed to
applicants who receive their visas by mail.
There are two other areas in which the State
Department has tried to remove impediments
against travel to the United States. The Im-
migration and Nationality Act specifies that
visa fees should be reciprocal. We have pur-
sued a program of reciprocally eliminating non-
immigrant visa fees wherever possible. We
have completed such agreements with most of
the countries providing the greatest volume of
tourists.
As evidence that these steps have been paying
dividends, some selected statistics of visa issu-
ances might be of interest to you.
In fiscal year 1964 there were 1,046,627 non-
immigrant visas issued. This represents a 76-
percent increase over fiscal year 1959 and a
23-percent increase over fiscal year 1963. It is
significant to add that a great percentage of the
23-percent increase over last year was crowded
into the second half of the fiscal year. For in-
stance, during the early months of this calendar
year such posts as London, Paris, and Frankfurt
were issuing visitor visas at a rate 60 to 90 per-
cent higher than the corresponding months of
the previous year. It is interesting to note
that this rate of increase is not concentrated in
one geographic area. For instance, the rate of
increase in fiscal year 1964 over fiscal year 1963
breaks down as follows:
Europe 25 percent
Near East 23 percent
Far East 28 percent
Africa 21 percent
Western Hemisphere 19 percent
There is every evidence that this high volume
will continue in future years.
I do not mean to imply that the tremendous
upsurge in visitor visa issuances can be attrib-
uted alone to our activities. There are many
reasons for it. Among those are:
1. The broadening of the base of travelers
from abroad due to continued prosperity and
the availability of jet speeds which make even
a short visit to the United States practicable;
2. The promotion activities of the U.S.
Travel Service, especially insofar as they have
caused U.S. travel interests to arrange special
group and package tours at special rates ;
DECEMBER 21, 1964
889
3. The reduction of airline rates early this
year precipitated a substantial volume of travel
to the United States ;
4. The New York World's Fair was, of
course, an added incentive to visit America in
1964, as it will be in 1965.
I would also like to remind the committee
that, while increased travel to the United States
is a net gain for the United States balance-of-
payments situation, it should be remembered
that all such travel does not come in that cate-
gory. In many instances such visits are fi-
nanced by U.S. relatives. The Department does
not have any firm statistics on this, but experi-
ence has shown that it occurs with sufficient
frequency to cause a statistician to make some
allowance for this factor in computing the net
advantages which flow from increased travel to
the United States. I would consider it mini-
mal in the overall volume of travel to the United
States, but worth mentioning.
There are, of course, substantive cultural and
social gains which accrue to the United States,
both through visits here by foreigners and
visits abroad by U.S. nationals. This is an im-
portant factor which is hard to measure sta-
tistically.
Certain Foreign Passports Valid
Beyond Expiration Date
Certain Foreign Passports ^
Validity
Under the provisions of section 212(a) (26)
of the Immigration and Nationality Act, a non-
immigrant alien who makes application for a
visa or for admission into the United States is
required to be in possession of a passport which
is valid for a minimum period of six months
from the date of expiration of the initial period
of his admission into the United States or his
contemplated initial period of stay authorizing
him to return to the country from which he
came or to proceed to and enter some other
country during such period. By reason of the
foregoing requirement, certain foreign govern-
ments have entered into agreements with the
Government of the United States whereby their
' Public Notice a^S ; 29 Fed. Hcg. 16097.
passports are recognized as valid for the return
of the bearer to the country of the foreign is-
suing authority for a period of six months be-
yond the expiration date specified in the pass-
port. These agreements have the effect of ex-
tending the validity period of the foreign pass-
port an additional six months notwithstanding
the expiration date indicated in the passport.
Notice is hereby given that the Government of
Thailand has recently concluded such an agree-
ment with the Government of the United
States. A list of all foreign governments which
have entered into such agreements follows :
Australia.
Korea.
Austria (Reisepass only).
Laos.
Bahamas (See
Lebanon.
United Kingdom).
Luxembourg.
Belgium.
Malagasy Republic.
Bolivia.
Malaya.
Brazil.
Mexico.
Cambodia.
Monaco.
Canada.
The Netherlands.
Ceylon.
Nigeria.
Chile.
Norv?ay.
Colombia.
Pakistan.
Cuba.
Peru.
Cyprus.
Philippines.
Dominican Republic.
Portugal.
Ecuador.
Spain.
Ethiopia.
Sweden.
Finland.
Switzerland.
France.
Syrian Arab Republic.
Germany (Reisepass and
Thailand.
Kinderausweis).
Togo.
Greece.
Tunisia.
Guatemala.
United Arab Republic.
Guinea.
United Kingdom of Great
Honduras.
Britain and Northern
Iceland.
Ireland (including Jer-
India.
sey and Guernsey and
Ireland.
its Dependencies) and
Israel.
the Bahamas.
Ivory Coast.
Uruguay.
Jamaica.
Venezuela.
In addition, travel documents issued by the
Government of the Trust Territory of the Pa-
cific Islands are considered to be valid for the
return of the bearer to the Trust Territory for
a period of six months beyond the expiration
date specified therein.
This notice supersedes Public Notice 226 of
January 18, 1964 (29 F.R. 1661), Public Notice
228 of February 26, 1964 (29 F.E. 3114) and
Public Notice 236 of August 4, 1964 (29 F.R.
11934).
Dated November 17, 1964.
Abba P. Schwartz,
AdtninistratoT, Bureau of
Security and Coisular Affairs.
890
DEPARTMENT OF STATE BULLETIN
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
U.S. Informs U.N. of Withdrawal
of Congo Rescue Mission
Following is the text of a letter from Adlai
E. Stevenson, U.S. Representative to the United
Nations, to the President of the Security
Council.
U.N. doc. S/6075
December 1, 1964
In my letters of 24 November and 26 Novem-
ber, I informed you that the United States
Government, with the authorization of the Gov-
ernment of the Democratic Republic of the
Congo, had provided air transport to the Bel-
gian Government for a humanitarian mission to
secure the release of civilians, many of them
illegally held as hostages, in and around Stan-
leyville.^ I have the honour to inform you that
this rescue mission, having effected the release
of as many hostages as possible under the cir-
cumstances prevailing, departed from the Congo
on 29 November.
While this mission was able to effect the re-
lease of the majority of the hostages, many per-
sons, who could not be reached, are still being
held by the rebels in violation of international
law and standards of civilized behaviour. My
Government deeply appreciates the efforts
undertaken in the past by the Secretary-Gen-
eral in seeking to obtain hvunanitarian treat-
ment for all civilians in the hands of the rebels
and trusts that the Secretary-General's influ-
ence, as well as that of Members of the United
Nations, will continue to be employed to secure
strict adlierence to the Geneva Conventions for
the Protection of War Victims.
I should appreciate it if you would have this
letter distributed as a document of the Security
Council.
Please accept, etc.
Adlai E. Stevenson
General Assembly To Proceed
Without Voting
On December 1 an, imderstanding was
reached between U.S. Representative Adlai E.
Stevenson, Lord Caradon of the United King-
dom, Nikolai T. Fedorenko of the U.S.S.R.,
Roger Seydoux of France, U.N. Secretary-
General U Thant, and Dr. Carlos Sosa Rodri-
guez of Venezuela, President of the 18th session
of the General Assembly, that '''■issues other thom
those that cam, he disposed of xoithout ohjection^''
would not he raised during general debate in
the 19th session. Following is a statemen t made
by Mr. Steven^son after the agreertient had been
reached.
U.S. delegation press release 4472 dated December 1
Our hope right along has been to get started
on talks about how the United Nations can clean
up its financial situation and arrange about the
management and financing of future peacekeep-
ing operations.^ It now looks as if all parties
are prepared to talk about these important con-
stitutional matters, and we share the general
liope that these consultations can proceed very
rapidly.
It is of course necessary that, while the con-
stitutional discussions are going on, the basic
issues involved should not be prejudiced by
having votes in the General Assembly. The no-
voting agreement that was arrived at today
therefore seems sensible to us.
' For texts of Ambassador Stevenson's letters and
other related documents, see Bulletin of Dec. 14, 1964,
p. 838.
' For text of a U.S. memorandum on the U.N. finan-
cial crisis, see Btji-letin of Xov. 9, 1964, p. 681.
DECEMBER 21, 196 4
891
TREATY INFORMATION
King Crab Fishing Agreement
WitKi Japan Becomes Effective
Secretary Rusk and Japanese Arnbassador
Ryuji Takeuchi exchanged notes at Washington
on November 25 bringing into effect a 2-year
agreement ietiveen the United States and
Japan for fishing of king crab in the eastern
Bering Sea. Following is an exchange of re-
marks betiveen the Secretary and Arnbassador
Takeuchi, together with the text of the U.S.
note.
EXCHANGE OF REMARKS
Press release 503 dated November 25
Remarks by Secretary Rusk
For a month, representatives of Japan and
the United States discussed important issues
affecting the fishermen of both countries arising
from the presence of a Japanese king crab fish-
ery on the continental shelf of tlie United States
in the Bering Sea.^ Wlien President Johnson
signed the Bartlett Act, which makes possible
the enforcement of rights which now exist or
may be established in the resources of the con-
tinental shelf, he assured the Government of
Japan that we would give full consideration
to Japan's long-established king crab fishery in
the east Bering Sea.^
I am deeply gratified that our two Govern-
ments have agreed on an interim 2-year modus
operandi for accommodating our separate in-
terests. Our representatives have faced the
question of conservation of the resource, how
to take account of Japan's historical fishery,
our different legal concepts on the conti-
nental Khclf convention, and the interest of the
' For text of a joint annnunceniPiit made when the
notes were initialed on Nov. 14, see Bulletin of
Dec. 7, 1904. p. S29.
'Ibid., June 15, 1964, p. 930.
United States crab fishing industry in the area
previously fished predominantly by Japan.
The king crab in the east Bering Sea is not
the only issue upon which we have, and can
be expected to have in the future, differing
interests and perspectives. I consider it en-
couraging for the future that by mutual
understanding and rational balancing of our
respective national interests we have reached
an agreement which is equitable and to our
common benefit.
In the light of the difficult nature of their
tasks, I think both Governments can take pride
in the achievement of agreement.
Remarks by Ambassador Takeuchi
It is a great honor and privilege for me to
represent Japan on this occasion of the ex-
changing of notes on the king crab fishery in
the eastern Bering Sea. |
The core of the problem lies in the fact that
the two Governments hold fundamentally
different legal positions with respect to the king
crab resource in this area. However, as a result J
of the long and patient consultation aimed at a '
realistic solution of the problem between two
friendly nations, we have reached agreement in
spite of difficulties.
As the relationship between our two countries
becomes ever closer, we are bound to encounter
many complicated problems. But I believe
that the present agreement very clearly demon-
strates that, however difficult these problems
may be, they can be solved if we engage in frank
and constructive discussions with determination
and mutual understanding in the broader in-
terest of our firm friendship.
I should like to congratulate the representa-
tives of both Governments for their untiring
efforts and zeal, which contributed so much to
bringing about the present agreement.
TEXT OF U.S. NOTE
Department of State,
Washington, Noremher25. 196^..
Excellency: I have the honor to refer to
Your Excellency's note of November 25, 1964,
which reads with Appendix as follows:
892
DEPARTMENT OF STATE BULLETIN
I have the honor to refer to the consultation between
the representatives of the Goverumeut of Japan and
the Government of the United States of America in
regard to the king crab fishery in the eastern Bering
Sea, held in Washington from October 15 to Novem-
ber 14, 1964, and to confirm, on behalf of the Govern-
ment of Japan, the following understandings reached
as the result of this consultation :
1. The Government of Japan holds the view that
king crabs are a high seas fishery resource, and that
nationals and vessels of Japan are entitled to continue
fishing for king crabs in the eastern Bering Sea.
2. The Government of the United States of America
is of the view that the king crab is a natural resource
of the continental shelf over which the coastal state
(in this case the United States of America) has ex-
clusive jurisdiction, control and rights of exploitation.
3. However, the two Governments, having regard to
the historical fact that nationals and vessels of Japan
have over a long period of years exploited the king
crab resource in the eastern Bering Sea, have agreed,
without prejudice to their respective positions as de-
scribed above, as follows :
1) The king crab fishery by nationals and vessels
of Japan in the eastern Bering Sea will continue in
and near the waters which have been fished histori-
cally by Japan, that is, those waters in which mi-
grate the king crab stocks exploited historically by
Japan, provided that, in order to avoid possible over-
fishing of the king crab resource in the eastern Ber-
ing Sea. the Government of Japan ensures that the
annual commercial catch of king crabs by nationals
and vessels of Japan for the years 1965 and 1966
shall be equivalent to 185,000 cases respectively (one
case being equivalent to 48 half-pound cans) .
2) The two Governments shall apply such interim
measures as described in the Appendix to this note
to their respective nationals and vessels fishing for
king crabs in the eastern Bering Sea.
3) The International Commission under the North
Pacific Fishery Convention will be asked by the two
Governments to continue and intensify the study of
the king crab resource in the eastern Bering Sea
and to transmit to the two Governments annually
by November 30 the findings of such study, includ-
ing also, to the extent possible, an estimate of the
maximum sustainable yield of the resource.
4) For the purpose of carrying out faithfully meas-
ures under the provisions of the proviso of sub-
paragraph (1) and the provisions of sub-paragraph
(2) of this paragraph, the two Governments shall
take appropriate and effective measures respectively,
and either Government shall, if requested by the
other Government, provide opportunity for observa-
tion of the conduct of enforcement.
5) Tlie two Governments shall meet before Decem-
ber 31, 1966 to review the operation of these arrange-
ments and the conditions of the king crab fishery of
the eastern Bering Sea, and decide on future ar-
rangements in the light of paragraphs 1 and 2, and
the introductory part of this paragraph, and the
United States President's assurance of May 20, 1964
that full consideration would be given to Japan's
long established fishery.
I have further the honor to propose that this note
and your Excellency's reply confirming the above under-
standings on behalf of your Government shall be re-
garded as constituting an agreement between the two
Governments.
APPENDIX
a) Female king crabs, small king crabs less than
14.5 cms. in maximum carapace width and soft-shelled
king crabs shall not be retained and u.sed. Any such
crabs taken incidentally shall be returned immediately
to the sea with a minimum of injury.
b) King crabs shall not be taken by means of fishing
gear other than pot and tangle net. The stretched
diagonal measure of tangle net mesh shall be no less
than 50 cms.
c) Unless otherwise agreed by the two Governments,
only pots may be used to capture king crabs for com-
mercial purposes in that area lying seaward of the
United States territorial sea and within the following
described boundaries: a line running due west through
Sea Lion Rock light and along 55''28' N. latitude to
165''34' W. longitude, thence southwesterly to an inter-
section of a line passing between Cape Navarin and
Cape Sarichef at 55°16' N. latitude and 166°10' W.
longitude, thence southeasterly along the Cape
Navarin-Sarichef line to Gape Sarichef.
I have the honor to inform Your Excellency
that the above understandings reached by repre-
sentatives of our two Governments are accepta-
ble to the Government of the United States of
America and that Your Excellency's note and
this reply are considered as an agreement be-
tvFeen our two Governments.
Accept, Excellency, the renewed assurances
of my highest consideration.
Dean Kusk
His Excellency
Eytjji Takeuchi,
Ambassador of Japan.
Current Actions
MULTILATERAL
Atomic Energy
Statute of the International Atomic Energy Agency, as
amended. Done at New York October 26, 1956.
Entered into force July 29, 1957. TIAS 3873, 5284.
Acceptance deposited: Kuwait, December 1, 1964.
■DECEMBER 21, 1964
893
Bills of Lading
International convention for the unification of certain
rules relating to bills of lading, with protocol. Done
at Brussels August 25, 1924. Entered Into force
June 2, 1931 ; as to the United States December 29,
1937. 51 Stat. 233.
Adherence deposited: Peru, October 29, 1964.
Nuclear Test Ban
Treaty banning nuclear weapon tests in the atmos-
phere, in outer space and under water. Done at
Moscow August 5, 1963. Entered into force October
10, 1963. TIAS 5433.
Ratifications deposited: El Salvador, December 3,
1964; Federal Republic of Germany, including
Land Berlin, December 1, 1964 ; '■ Iraq, December
1, 1964.
Satellite Communications System
Agreement establishing interim arrangements for a
global commercial communications satellite system.
Done at Washington August 20, 1964. Entered Into
force August 20, 1964. TIAS 5646.
Signature: Israel, November 30, 1964.
Special agreement. Done at Washington August 20,
1964. Entered Into force August 20, 1964. TIAS
5646.
Signature: Ministry of Posts for Israel, November 30,
1964.
Trade
General Agreement on Tariffs and Trade, with annexes
and schedules and protocol of provisional applica-
tion. Concluded at Geneva October 30, 1947.
TIAS 1700.
Admitted as contracting parties {with rights and
obligations dating from independence): Tangan-
yika and Zanzibar, September 24, 1964 ; Malta, No-
vember 9, 1964.
United Nations
Charter of the United Nations and Statute of the
International Court of Justice. Signed at San
Francisco June 26, 1945. Entered into force, Octo-
ber 24, 1945. 59 Stat. 1031.
Admissions to memhership: Malawi, Malta, and
Zambia, December 1, 1964.
1736), with exchange of notes. Signed at Tehran
November 16, 1964. Entered into force November
16, 1964.
Italy
Agreement on the use of Italian ports by the NS
Savannah. Signed at Rome November 23, 1964.
Entered into force November 23, 1964.
United Kingdom
Amendment to the agreement of June 15. 1955, as
amended (TIAS 3321, 3359, 3608, 4078, 5397), for
cooperation concerning civil uses of atomic energy.
Signed at Washington June 29, 1964.
Entered into force: December 4, 1964.
DEPARTMENT AND FOREIGN SERVICE
Recess Appointments
The President on November 24 appointed Ralph An-
thony Dungan to be Ambassador to Chile. (For bio-
graphic details, see Department of State press release
502 dated November 25.)
The President on November 25 made the following
appointments :
Ben Hill Brown, Jr., to be Ambassador to Liberia.
(For biographic details, see White House press release
(Austin, Tex.) dated November 25.)
William H. Sullivan to be Ambassador to Laos. (For
biographic details, see Department of State press re-
lease 511 dated December 3.)
BILATERAL
Ethiopia
Agreement for the exchange of official publications.
Effected by exchange of notes at Addis Ababa No-
vember 25, 1964. Entered into force November 25,
1964.
Guinea
Agreement amending the agricultural commodities
agreement of May 22, 1963, as amended (TIAS 5394,
5487). Effected by exchange of notes at Conakry
July 1 and 11, 1964. Entered into force July 11,
1964.
Agreement amending the agricultural commodities
agreement of June 13, 1964 (TIAS 5G08). lOffectwl
by exchange of notes at Conakry October 7, 19(>4.
Entered into force October 7, 1964.
Iran
Agricultural commodities agreement under title IV of
the Agricultural Trade Development and Assistance
Act of 19.>4, as amended (68 Stat. 454; 7 USC 1731-
' With a statement.
Check List of Department of State
Press Releases: November 30-December 6
Press releases may be obtained from the Office
of News, Department of State, Washington, D.C.,
20.520.
No. Date
Subject
•507 11/30
U.S. participation in international
conferences.
508 12/1
Mace : international travel.
509 12/2
Resumption of talks on Panama
Canal (rewrite).
510 12/2
Harriman : Latin American meet-
ing of development financing in-
stitutions.
•511 12/3
Sullivan sworn in as Ambassador
to Laos (biographic details).
512 12/3
Nepal credentials (rewrite).
♦513 12/4
Program for visit of U.K. Prime
-Minister (revised).
•Not printed.
894
DEPARTMENT OF STATE BULLETIN
INDEX December 21, 1964 Vol. LI, No. 1330
Day,
American Principles. Bill of Rights
Human Rights Day (proclamation) ....
American Republics. Development Financing
and the Alliance for Progress (Dillon, Glaess-
ner, Harriman)
Chile. Dungan appointed Ambassador ....
Congo (Leopoldville). U.S. Informs U.N. of
Withdrawal of Congo Rescue Mission ( Steven-
son)
Congress. Impact of International Travel on
U.S. Balance of Payments (Mace)
Department and Foreign Service. Recess Ap-
pointments (Brown, Dungan, Sullivan) . . .
Economic Affairs
Development Financing and the Alliance for
Progress (Dillon, Glaessner, Harriman) . .
Impact of International Travel on U.S. Balance
of Payments (Mace)
King Crab Fishing Agreement With Japan Be-
comes Effective (Rusk, Takeuchi, U.S. note) .
Europe
The Atlantic Community : Common Hopes and
Objectives (Johnson)
The Dynamics of Progress in Central Europe
(McGhee)
Radio Free Europe (Johnson)
Foreign Aid. Development Financing and the
Alliance for Progress (Dillon, Glaessner,
Harriman)
Germany. The Dynamics of Progress in Central
Europe (McGhee)
Human Rights. Bill of Rights Day, Human
Rights Day (proclamation)
International Information. Radio Free Europe
(Johnson)
Japan. King Crab Fishing Agreement With
Japan Becomes Effective (Rusk, Takeuchi,
U.S. note)
Laos. Sullivan appointed Ambassador
Liberia. Brown appointed Ambassador
Military Affairs. President Johnson
sions U.S.S. Sam Rayhurn ....
Nepal. Letters of Credence (B^iatri)
Co
mmis
887
878
894
891
888
894
878
888
892
866
870
876
878
870
887
876
892
894
894
877
869
Panama. U.S. and Panama Resume Talks on
Problems Related to Canal 887
Passports and Vis£is
Certain Foreign Passports Valid Beyond Ex-
piration Date (public notice) 890
Impact of International Travel on U.S. Balance
of Payments (Mace) 888
Presidential Documents
The Atlantic Community: Common Hopes and
Objectives 866
Bill of Rights Day, Human Rights Day .... 887
President Johnson Commissions U.S.S. Sam
Rayburn 877
Radio Free Europe 876
Treaty Information
Certain Foreign Passports Valid Beyond Ex-
piration Date (public notice) 890
Current Actions 893
King Crab Fishing Agreement With Japan Be-
comes Effective (Rusk, Takeuchi, U.S. note) . 892
U.S.S.R. The Dynamics of Progress in Central
Europe (McGhee) 870
United Nations
Bill of Rights Day, Human Rights Day (proc-
lamation) 887
General Assembly To Proceed Without Voting
(Stevenson) 891
U.S. Informs U.N. of Withdrawal of Congo Res-
cue Mission (Stevenson) 891
Viet-Nam. President Reaffirms Basic PoUcy in
Viet-Nam (White House statement) .... 869
Vame Index
Brown, Ben Hill, Jr .... 894
Dillon, Douglas 878
Dungan, Ralph Anthony 894
Glaessner, Philip 878
Harriman, W. AvereU " . 878
Johnson, President 866, 876, 877, 887
Khatri, Maj. Gen. Padma Bahadur 869
Mace, Charles H 888
McGhee, George C 870
Rusk, Secretary 892
Schwartz, Abba P 890
Stevenson, Adlai E 891
Sullivan, William H 894
Takeuchi, Ryuji . . 892
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OFFICIAL BUSINESS
Documents on German Foreign Policy, 1918-1945
Series D, Volume XIII, The War Years, June 23-December 11, 1941
The Department of State recently released Documents on German Foreign Policy, 1918-19^
Series D, Volume XIIl, The War Years, June 23-December 11, 191(1, which is the last volume in th
series covering the period 1937-41. Volume XIII begins on June 23, 1941, immediately following tl
German attack on Soviet Russia, and ends on December 11, when Hitler declared war on the TJniti
States following the Japanese attack at Pearl Harbor.
The 578 documents of this volume are presented in chronological order, but the analytical list i
the papers is arranged by topic so that the reader may easily follow any principal subject. The subjec
on which there are the largest number of documents in this volume are: France, Italy, Japan, tJ
Middle East, Spain, Sweden, Turkey, the U.S.S.R., the United States, and Yugoslavia.
Copies of the volume (publication 7682) may be obtained from the Superintendent of Document
U.S. Government Printing Office, Washington, D.C, 20402, for $4 each.
PUBLICATION 7682
ORDER FORM
TO:
8UPT. OF DOCUMENTS
GOVT. PRINTING OFFICE
WASHINGTON, D.C. 20402
Enclosed find $
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PUBLICATION 7C82 $4
Please send me copies of Documents on Oerman Foreign Policu, 1918-
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AnnRRSS
CITY. STATE
A ^0
THE OFFICIAL WEEKLY EECOKD OF UNITED STATES FOREIGN POLICY
MM } 5 V
THE
DEPARTMENT
OF
STATE
BULLETIN
Vol LI, No. 1331
December 28, 196^
INTER-AMERICAN ECONOMIC AND SOCIAL COUNCIL
REVIEWS ALLIANCE FOR PROGRESS
Statement 'by Assistant Secretary Mann 898
ECONOMIC DEVELOPMENT IN LIBERIA
hy William C. Trimble 912
THE ROLE OF U.S. FOREIGN ASSISTANCE IN AFRICA
by Edmond G. Hutchinson 915
USIA: BUILDING BRIDGES OF PEACE IN A CHANGING WORLD
by Carl T. Roioan 906
For index see inside hack cover
Inter-American Economic and Social Council
Reviews Alliance for Progress
Statement hy Thomas C. Mann
Assistant Secretary for Inter- American Ajfairs ^
May I express to you, Mr. Chairman, and,
through you, to the Government and people of
Peru, my delegation's sincerest thanks for the
warm and gracious reception we have received
in this beautiful and historic city of Lima. You
have made us feel at home.
We also -wish to express to you, Mr. Chair-
man, our appreciation for the moving tribute
which you paid to John Fitzgerald Kennedy,
who launched our great common venture — ■
which he named the Alliance for Progress — to
improve the spiritual, material, and social life
of all Americans.
President Belaunde reminded us that this is
the time for action. President Jolmson last
' Made before the third annual meeting of the luter-
American Ecouomic and Social Council at Lima, Peru,
on Dec. 8. Mr. Mann was head of the U.S. delegation.
May said that our times require action and ac-
tion today.^
In this order of ideas, I would like to say a
few words about actions — about some of the
things the American nations have accomplished
together under the alliance since the last meet-
ing of the Inter- American Economic and Social
Council 1 year ago.^
This year the Inter- American Committee on
the Alliance for Progress, which we, too. call
CIAP, has not only been constituted under the
able and dedicated leadership of Carlos Sanz
de Santamaria but it has completed the first
cycle of country-by-country studies ever made
= Bulletin of June 1, 1964, p. 854.
' For a statement made by Under Secretary Harri-
man at Sao Paulo, Brazil, on Nov. 13, 1963, see ibid.,
Dec. 16, 1963, p. 937.
DEPARTMENT OF STATE BULLETIN VOL. LI, NO. 1331 PUBLICATION 7797 DECEMBER 28, 1S64
The Department of State Bnlletln. a
weekly publlcHtlon Issued by the Office
of Media Services, Bureau of Public Af-
fairs, provides the public and Interented
agencies of the Government with Infor-
mation on developments in the field of
forelRn relations and on the work of the
Department of State and the Forelpn
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 Depart-
ment, as well as special articles on vari-
ous phases of International affairs and
the functions of the Department Infor-
mation Is Included concerning treaties
and International agreements to which
the United States Is or may become a
party and treaties of general Interna-
tional Interest.
Puhllcatlnns of the Department, Dnited
Nations documents, and legislative mate-
rial In the field of International relations
are listed currently.
The Bulletin Is for sale by the Super-
intendent of Docoments, C.S. Govern-
ment Printing Office, Washington. D.C..
20402. Pbici : S2 Issues, domestic |10,
foreign $15 ; single copy SO cents.
Use of funds for printing of this pub-
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Bureau of the Budget (January 19.
1961).
XOTB : Contents of this publication ar«
not copyrighted and Items contained
herelu may be reprinted. Citation of the
Department of State BuUetIn as the
source will be appreciated. The Bulletin
Is Indexed In the Readers' Guide to
Periodical Literature.
898
DEPARTMENT OF STATE BULLETIN
in our hemisphere. It lias examined national
and regional plans, the steps which have been
taken to put them into effect, and the efforts
which each country is making to carry out its
responsibilities imder the charter of the alliance.
It has recommended specific and concrete
courses of action to countries and international
organizations on how to accelerate progress.
The report which is a result of this extensive
review is before us at this meeting.* All of us
owe to CIAP and its hardworking subcommit-
tees a vote of thanks. The quality of the work
was of course greatly enhanced by the indis-
pensable participation of the Panel of Nine.°
We owe also a debt of gratitude to the repre-
sentatives from the Inter-American Develop-
ment Bank, the World Bank, and the Interna-
tional Monetary Fund who contributed
information and valuable counsel duriiig the
country reviews. The caliber of the men whom
each country sent to discuss its plans and pro-
grams was, moreover, impressive. It is not an
exaggeration to say that this js the first time
that so many able, dedicated people, knowledge-
able about hemisphere affairs, have gathered
around the same table at the same time in a
common multilateral effort to identify specific
obstacles and to find concrete solutions to them.
"Wliat is needed now is better execution, better
performance by all of us in the alliance.
Measures of a self-help nature which are
needed vary of course from country to country.
They include programs to diversify production
and to expand exports. They include the con-
trol of inflation and the elimination of the eco-
nomic and social distortions which inflation
creates. They include the reduction of deficits
which do not contribute to social or economic
progress of the people but which instead drain
off budgetary resources needed to expand in-
dustry and production and to widen the hori-
zons of social well-being. They include ade-
* For a statement by President Johnson regarding
the report, see ibid., Dec. 7, 1964, p. 804. Copies of the
report will be available at a later date from the office
of the Assistant Secretary for Economic and Social
Affairs of the Organization of American States, Pan
American Union, Washington, D.C.
' A committee of nine economic experts set up by the
Organization of American States under the Charter
of Punta del Este.
quate incentives for the sectors of economies
which lag behind. They include agricultural,
tax, and other reforms which contribute to in-
creased production, economic growth, and social
justice. They include the building of institu-
tions for the mobilization and constructive use
of savings so that those who need credit most
may be able to obtain it on reasonable terms.
They include a more equitable distribution of
the national product among all the people both
directly and indirectly in ways which will con-
tribute to the well-being and dignity of man.
If we can continue to work honestly and sin-
cerely for human progress rather than for the
short-term personal or political advantage of
individuals or groups, we shall see an ever-
growing number of countries join those who
have already achieved viable and relatively self-
sustaining economies capable of meeting both
the spiritual and material needs of their peo-
ples. We can then concentrate on building en-
during foundations for the great societies which
all our people seek instead of spending so much
of our energy and resources dealing with crises
created by errors of the past.
Increase in Export Earnings
1964 has also been a good year for Latin
America's export earnings. Preliminai-y ECLA
[U.N. Economic Commission for Latin Amer-
ica] estimates indicate that the value of Latin
America's export earnings will be up about 8
percent over 1963, which in turn showed an
increase of 6 percent over 1962.
Much of this increase in earnings was due to
price increases in basic products exported by
Latin America. Some of the speakers who have
preceded me have expressed concern lest prices
sag in 1965. There are already signs that the
world supply of sugar exceeds demand. But
other exports such as coffee, tin, meat, and cot-
ton continue to be firm, and there is reason to
hope that they will remain so.
However this may be, greater attention needs
to be paid to the diversification and expansion
of exports. Wliile Latin America's export earn-
ings will mcrease by an estimated 8 percent in
1964, the volume of exports will, it aj^pears, in-
crease only by about 1 percent.
Diversification and volume are essential ele-
DECEMBER 28, 1964
899
ments in any program to increase export earn-
ings. One of the achievements of 1964 is that
this facet of the problem is better understood
than before. Our host coxmtry, for example, has
made particularly noteworthy progress in the
export field.
Programs to develop and expand national
markets for national industries are also needed.
Another of the solid gains in 1964 has been tlie
attention which some coxmtries are giving to
the techniques of bringing this about.
Another way of expanding export earnings
is to get on with the job of making the Latin
American regional trading arrangements more
effective. Progress in the Central American
Common Market continues to be made. One of
my colleagues tells me that the exports of his
country to its Central American partners have
increased from about 10 percent of total exports
to about 50 percent in the last several years.
This is a significant acliievement.
By definition, a common market means the
removal, within a region, of barriers to the free
movement of capital, goods, and labor. For
this to be achieved, countries must put aside
narrow economic nationalism. The rewards are
great when this is done, as the prosperity of the
Six in Europe and the growing Five in Central
America demonstrates. Indeed, the economic
growth in the United States is due in no small
measure to the decision in the 18th century of
individual sovereign States to constitute them-
selves into a common market. All of our States
gained by this historic decision. None has re-
gretted it since.
A principal obstacle to more rapid progress
in regional trade is unwillingness on the part of
some to compete even within the region. If
division of markets instead of competition takes
place, if inefficient industries are protected,
then the nation ties its economy to industries
which cannot compete abroad and therefore
cannot earn foreign exchange needed to pay
for imports. The consumer loses because he
is then obliged to buy inferior goods at inflated
prices which reduce his real income. The only
ones who gain are the owners of the industries,
nearly always few in number, who are sub-
sidized by the nation at the expense of the
people.
Much was achieved in the Central American
Common Market in 1964, as our colleague from
El Salvador has told us. But much more could
be achieved throughout the region as a whole if
archaic doctrines about economic nationalism,
protectionism, and monopoly could be set aside
in favor of true competition, achieved on a grad-
ual, step-by-step basis.
Much has been said hei-e about protection-
ism in the United States. I share your disap-
pointment that our Congress did not pass, in
its 1964 session, the implementing legislation
to the Coffee Agreement. But I also remind
you that the Coffee Agreement itself was rati-
fied and that President Johnson has publicly
stated that the enabling legislation wUl be re-
submitted to the next Congress when it convenes
next January.
Today, as yesterday, the United States buys
about 40 percent of Latin America's total ex-
ports. No other country, indeed no other group-
ing of countries, can match that record. In ad-
dition, my country is a principal market for
many of the developing countries in other con-
tinents which are, as some of the speakers have
stressed, associated with Latin America in the
group of 77 [the less developed countries in the
U.N. Conference on Trade and Development].
We continue to follow a policy of liberal
trade. We continue in the Kennedy Round, as
before, to pass on to our friends in this hemi-
sphere, on a nondiscriminating basis and with-
out asking for the customary reciprocity, all of
the trade concessions negotiated within the
GATT [General Agreement on Tariffs and J
Trade].
Not only are exports to the United States
paid for in a convertible currency. Many Latin
American products share with our own pro-
ducers a price considerably higher than the
world price.
We will continue to exercise restraint in the
export of our surplus commodities so as not to
disrupt world prices. We will continue to co-
operate in every reasonable way with reasonable
requests from our partners in the alliance on
particular commodity problems of importance
in their economic growth and social progress.
Already under study in Washington are, for
example, the problems of sugar and oil. The
900
DEPARTMENT OF STATE BULLETIN
ultimate decision on most commodities will, of
course, be made by our Congress, wliicli is freely
elected by our people. Under our Constitution
they cannot be made by votes in international
organizations. But I have no doubt that both
the executive and legislative branches of our
Government will continue in 1965 the same
liberal trade policies we have followed since the
1930's.
Progress in the Private Sector
There were other solid achievements in 1964
toward the political, economic, and social goals
of the alliance. I shall presume on your time
only long enough to mention one more — prog-
ress in the private sector.
I do not wish even for a minute to minimize
the great importance of the public sector in the
process of progress. It is not only important ;
it is indispensable.
But so much has already been said about
the public sector that further words from me
are unnecessary. I only wish to recall that it
is the private sector — principally the domestic
private sector — which makes by far the largest
investment in job-producing, goods-producing,
and tax-producing industries. In this decade
of rising populations, all of us need to double
as quickly as we can the number of jobs or im-
employment will rise. We need rapidly to in-
crease food production, or there will be himger.
The participation of the private sector — and
again I am referring principally to the domestic
private sector — with its capital and its know-
how, and with its imique ability efficiently to
make all the day-to-day decisions required in
every factory and farm in the increasingly com-
plex society in which we live, is clearly essen-
tial to success.
Government policies have a great deal to do
with whether the private sector will play its full
role — whether it will have fear or confidence,
whether it will risk its investment in the hope
of making a long-term gain or take flight to
what it considers safer havens.
Among the many plus signs of 1964 are indi-
cations that both domestic and foreign capital
is investing at a higher rate than before.
In conclusion, I should like to repeat that our
task is to execute, to put into effect, the plans
being developed and improved. We need deeds
even more than words. We need continued
progress of the kind we have seen in 1904, and
we need it at the fastest possible rate.
We will get the job done more quickly if we
reason with each other than if we create un-
necessary divisions, if we work together for the
achievement of the noblest of all goals — the im-
provement of the spiritual, moral, material,
and social sides of the human being.
President Jolmson, like President Kennedy
before him, has a deep conviction that Amer-
ica— all America — has the will, the courage,
and the ability to make the future of this hemi-
sphere as bright and shining as it was in the
dreams of Bolivar and JelTerson, of San Mar-
tin and of Hidalgo.
U.S. Renews Normal Relations
With Bolivia
DepartTnent Statement
Press release 616 dated December 7
The Department of State has instructed our
Ambassador in La Paz, Douglas Henderson, to
acknowledge the note of the Foreign Minister
of Bolivia [Joaquin Zenteno Anaya], dated
November 7, 1964.^ By means of this acknowl-
edgment the United States is renewing nonnal
relations with Bolivia mider the Military Junta
of Government, which is presided over by Gen.
Eeno Barrientos Ortuiio.
The United States Government has ascer-
tained that the Military Junta is in effective
control of the government and the country, and
that it has pledged itself to fulfill Bolivia's
international obligations. Tlie United States
Government has noted the declaration of the
President of the Jimta that elections would be
held soon, looking toward the early restoration
of constitutional government, and that the
Junta has now fixed definite dates for both.
The United States decision was taken after
consultation with other governments of this
hemisphere and elsewhere and following similar
action by a number of them.
' Not printed here.
DECEMBER 28, 1964
901
British Prime Minister
Visits Washington
The Prime Minister of the United Kingdom,
Harold Wilson, visited Washington DeceTtiber
6-9 for talks with President Johnson. Follow-
ing is the exchange of greetings between the
President and the Prime Minister at the time of
Mr. Wilson's arrival on the south lawn of the
White House on Decerriber 7, together with the
text of a joint communique released at the close
of their talks on December 8.
EXCHANGE OF GREETINGS
White House press release dated December 7
President Johnson
Mr. Prime Minister, Mr. Secretary of State,
distinguished guests : Mr. Prime Minister, it is
a pleasure to welcome you here today both to
this coimtry and to this house. For you and
for me as individuals, positions and responsi-
bilities have changed somewhat since last you
were a visitor in this city. But the relations
between our coimtries and the common pur-
poses of our peoples remain imchanged. Your
visit underscores the certainty that there will be
no change.
Under Democratic and Kepublican adminis-
trations in this coimtry, and mider Labor and
Conservative governments in your comatry, the
collaboration between Great Britain and the
United States has meant much of enduring
value to all mankind, not only to our two
peoples but also to our friends and our allies
everywhere in the world.
Today we realize as surely as all other na-
tions must realize that the world has come to a
beginning of a new era of change. It is oppor-
tune that at this formative period, early in each
of our respective administrations, we meet to-
gether to seek the basis of continuing respon-
sible undertakings.
The problems of our nation, the problems of
all nations, are many today. Yet we can and
we do justifiably believe that tliis is a hopeful
time for man — the most hopeful since time
began.
In all of history never has man had so great
a capacity for ending war and assuring peace
and bringing it to the world ; overcoming pov-
erty and laboring to that end ; providing plenty ;
mastering the causes of human misery and en-
joying the fullness of human happiness.
In confidence that our countries and our peo-
ples with our allies have great contributions to
make and great gains to realize, the progress of
the years ahead, we meet now for a series of
working sessions where we can begin together
to explore the complex and the important prob-
lems that are facing us and our allies.
As we welcome you to our countrj^, we wel-
come you and your countrj'men to the continua-
tion of this great work. May our labors help
to strengthen the hope for peace and the cause
of freedom as have the labors of our predeces-
sors on both sides of the Atlantic.
As we stand here this morning in this beau-
tiful sunshine in Washington, I trust that this
is only the first of many meetings that will bring
men who love peace and who hate war together
in the hope that we can make a contribution to
peace and freedom throughout the world.
Prime Minister Wilson
Mr. President, Mr. Secretary of State, and
members of both administrations: First, sir,
may I on behalf of my colleagues and myself
thank you for your warm and hospitable wel-
come to the United States.
We are all of us happy to be back in Wash-
ington. None of us are strangers here. All of
us have many friends, many personal friends of
a quarter of a century, standing here m AVash-
ington and in your administration.
The talks on which we shall be engaged will
be frank and straight to the point as befits talks
between friends and as befits the size and the
scale of the problems that we are facing.
This is a first get-together in what I hope
will be a series of discussions at all levels in our
respective administrations, of discussions with
our NATO allies and more widely, and cover-
ing as the talks now and later proceed a grow-
ing range of topics.
We do not expect this week to solve the prob-
lems which the Western alliance, the free world,
902
DEPARTMENT OF STATE BULLETIN
and the world communities are facing. Rather,
we would hope to set the guidelines for our fu-
ture joint attack on these problems.
There could be no more challenging or excit-
ing time for us to be meeting. We face urgent
problems witliin our own alliance. For 2 years
there have been growing stresses and strains
which we camiot suffer to continue, much less to
grow.
We come here, Mr. President, to express the
firm determination of Her Majesty's Govern-
ment to do all in our power to strengthen our
alliance and to make it more effective. We
shall tlirow our proposals into the common pool
of Western thought, and we shall be prepared
to make our full contributions in hard, real
terms; in particular, in a shrinking world
where traditional categories of thought and ap-
proach, whether in defense or in relations be-
tween peoples, are being daily rendered more
obsolete through the central fact of thermonu-
clear power.
We recognize the need by thought and by
deeds to centralize and collectivize our coimnon
responsibility and concern in matters of nuclear
strength.
But I am sure that in a wider sense our dis-
cussions will transcend even the challenging
situation within the alliance.
We shall be seeking together all possible
means to strengthen the work of the United
Nations on which are centered our common
hopes for the future of mankind ; in particular,
our joint contribution to its authority, to its
peacekeeping role, and to its role in the only
war we seek — the war against poverty and
squalor, illiteracy and disease.
We shall be seeking now the means through
agreed initiatives based on our common inter-
ests whenever the prospect presents itself or
can be created for measures to reduce tensions
between East and West and, in particular, to
move decisively in the world of effective dis-
armament and measures to prevent the spread
of nuclear weapons.
Mr. President, we look forward to friendly
and fruitful talks. We come here not in the
posture of asking anything for ourselves;
rather, in asking what between us we can do
to speed our common purpose.
We in Great Britain know that our influence
in the world depends on what we can contribute
to that common purpose. We have on tap re-
serves of skill and craftsmanship of science
and teclmology, of talent for design and pro-
duction, wliich, when encouraged to put forth
their full power, as they will be encouraged,
will delight our friends and surprise the world.
As partners with the United States in war
and in the task of building a new world out of
the ruins of the war, we come here inspired with
the experience of working with you.
In the changed circumstances of the sixties,
we seek still a closer relationship based on com-
mon pui-poses and common aims, on considera-
tion for the interest of Great Britain's partners
within the Commonwealth and of our allies in
Europe and elsewhere.
The theme of these talks, as I conceive them,
Mr. President, whether for the strength of our
alliance or for our wider approach to the fight
for a constructive peace, is expressed in the one
word "interdependence" — truly as among men,
so among nations, we are all members one of
another, and this, Mr. President, is how we ap-
proach these meetings. This, I believe, is the
way in which the world would have us approach
them, for what is at stake here goes far beyond
the interests of our two coimtries. Wliat is at
stake is the contribution that we can make to
security and to peace for mankind.
JOINT COMMUNIQUE
White House press release dated December 8
The President of the United States and the
Prune Minister of the United Kingdom met in
Washington 7th December to Oth December.
They were assisted by Secretary of State Eusk,
Secretary of Defense McNamara and Under
Secretary of State Ball and by the Foreign Sec-
retai-y, Mr. [Patrick] Gordon Walker and the
Secretary of State for Defence, Mr. [Denis]
Healey.
In the course of a wide ranging exchange of
views, the President and the Prune Minister
reviewed the current international situation in
light of the responsibilities which their coun-
tries carry for maintaining, together with their
DECEMBER 28, 1064
903
allies and friends, peace and stability tlirough-
out the world. They reaffirmed their determi-
nation to support the peace-keeping operations
of the United Nations and to do all in their
power to strengthen the systems of regional al-
liance in Europe, the Middle East and the Far
East to which they both contribute.
They recognized the importance of strength-
ening the unity of the Atlantic Alliance in its
strategic nuclear defense. They discussed exist-
ing proposals for this purpose and an outline of
some new proposals presented by the British
Government. They agreed that the objective in
this field is to cooperate in finding the arrange-
ments which best meet the legitimate interests
of all members of the Alliance, while maintain-
ing existing safeguards on the use of nuclear
weapons, and preventing their further prolifer-
ation. A number of elements of this problem
were considered during this initial exchange of
views as a preliminary to further discussions
among interested members of the Alliance.
They also agreed on the urgency of a world-
wide effort to promote the non-dissemination
and non-acquisition of nuclear weapons, and of
continuing Western initiatives towards arms
control and disarmament. They recognized the
increasing need for initiatives of this kind in
light of the recent detonation of a Chinese nu-
clear device.
The President and the Prime Minister reaf-
firmed their determination to continue to con-
tribute to the maintenance of peace and stability
in the Middle East and the Far East. In this
connection they recognized the particular im-
portance of the military effort which both their
countries are making in support of legitimate
Governments in South East Asia, particularly
in Malaysia and South Vietnam, which seek to
maintam their independence and to resist sub-
version.
They recognized also that a nation's defense
policy must be based on a sound economy. The
President and the Prime Minister, wliile deter-
mined that their countries should continue to
play their full parts in the world-wide peace-
keeping effort, affirmed their conviction tJiat
the burden of defense should be shared more
equitably among the countries of the free world.
They agreed also on the need for improve-
ment in the balance of payments and in the
productivity and competitive position of both
their economies in order to ensure the under-
lying economic strength which is essential for
fulfilling their hea-i'y international responsibil-
ities. In this connection they arranged to ex-
plore in detail the possibilities of closer coop-
eration between their two countries in defense
research and development and in weapons
production.
The President and the Prime Minister reaf-
firmed their belief in the importance of close
allied cooperation in international affairs.
They agreed that this meeting was only the
first stage in their consultation in which the
matters that they had discussed would need to
be examined in greater detail. They looked
forward, too, to continuing discussions at all
levels both within the Alliance and in wider
international negotiations in pursuit of nuclear
and conventional disarmament and all meas-
ures to reduce world tension.
U.S. and Viet-Nam Plan Measures
To Improve Situation in Viet-Nam
Following is the text of a communique issued
at Saigon on Deceinber 11 hy the Government
of Viet-Nam upon the conclusion of talks be-
tween Vietnamese Government officials and
V.S. Amtassador Maxwell D. Taylor, who had
recently returned to Saigon after consultations
in Washington with President Johnson and
other U.S. Government officials.^
The Government of Viet-Nam has just com-
pleted a series of discussions with the United
States mission with regard to measures which j
should be taken to improve the situation in
South Viet-Nam in all its aspects.
The U.S. Government has offered additional
military and economic assistance to improve the i
execution of the Government's programs and to 1
restrain the mounting infiltration of men and
equipment by the Hanoi regime in suppoi't of
the Vict Cong.
* For background, see Bulletin of Dec. 21, 1964,
p. 869.
90-i
DEPARTJIENT OF STATE BULLETIN
The Government of Viet-Nam has accepted
this offer of support, which includes provision
for increased numbers of military, pai-amilitary
and police forces, the strengthening of the air
defense of South Viet-Nam, and further eco-
nomic assistance for a variety of forms of in-
dustrial, urban and rural development.
For its part, the Government of Viet-Nam is
reviewing ways of increasing the scope and ef-
fectiveness of its programs related to the de-
velopment of security and local government in
the rural areas.
Together the Government of Viet-Nam and
the U.S. mission are making joint plans to
achieve greater effectiveness against the infil-
tration threat.
In the course of the discussions, the U.S.
representatives expressed full support for the
duly constituted government of Prime Minister
[Tran Van] Huong.
Secretary Deplores Book Burning
and Damage to U.S. Embassies
Statement hy Secretary Ritsk ^
Recently there have been a number of mob
assaults on American embassies and libraries
overseas. Under international law and practice,
a host state has a special duty to protect the
persons and premises of foreign missions. This
Government takes very seriously its responsi-
bilities toward foreign missions in the United
States. Laws and police protection in the Dis-
trict of Columbia, New York City, and else-
where are designed to preclude any demonstra-
tions against foreign missions from getting out
' Read to news correspondents by Robert J. Mc-
Closkey, Director, Office of News, on Dec. 9 (press re-
lease 518) .
of hand and resulting in violence or serious dis-
order.
When violent attacks occur on our missions
abroad, the U.S. Government promptly files pro-
tests and asks, in accordance with international
practice, apologies and reparations, which fre-
quently are forthcoming not too long after the
events. But this is not a satisfactory substitute
for prevention. The U.S. Government has
noticed the tendency of these violent assaults to
recur in certain coim tries. And it is especially
concerned about violent acts which appear to be
connived at or acquiesced in by the authorities
of the host state, or in which the authorities are
slow in taking action to control mobs of rioters.
Resort to riot and violence against foreign
missions strikes at the heart of the system of
diplomatic intercourse, the established channel
by which one nation communicates with an-
other. And the smashing of libraries and burn-
ing of books impair the sharing of knowledge
and the people-to-people contacts which are so
important to building international under-
standing.
In many countries there are, of course, ele-
ments which wish to alienate the peoples of
those comatries from the American people. As
their presence and tactics and purposes are
known to the governments of those coimtries, it
should be possible for those governments to pre-
vent or to deal promptly with acts of violence
against foreign missions.
These violent acts cannot but affect relation-
ships between nations. Mankind cannot hope
to find solutions to the awesome problems facing
it unless we can communicate across our
differences.
Book burning is a direct affront to knowledge
and a denial of the long, slow progress of man-
kind. Mob violence must not be allowed to
take the place of reasoned exchanges. We be-
lieve this is understood by responsible men
everywhere.
DECEMBER 2S, 1964
905
USIA: Building Bridges of Peace in a Changing World
hy Carl T. Rowan
Director, U.S. Information Agency '
I am delighted to be here and to participate
in your annual meeting. Ordinarily, being sur-
rounded by such a distinguished group of
lawyers and doctors would be somewhat un-
settling, for lawyers and doctors are the two
categories of professionals that everyone ad-
mires at a distance — and hopes he will never
need!
But for one m my business — the business of
dealing with the psychological dimensions of
world affairs — the two professions you repre-
sent are not only admirable but overwhelmingly
necessary if the United States is to succeed in
helping build the kind of world worth having.
For we want a world free of the gi-im shackles
of disease — and a peaceful world under the sane
rule of law.
As Charles Ehyne, chairman of the World
Conference on World Peace Through Law,
noted last year: "What we lawyers want to do
is to substitute courts for carnage, dockets for
rockets, briefs for bombs, warrants for war-
heads, and mandates for missiles. . . ."
We can all say amen to that.
Today is December 8, 1964. As we look back
over the past quarter of a century I would guess
that there are two calendar dates that stand
permanently engraved on our memories. They
are dates for which we have something close to
total recall. They are dates whose mere men-
tion can bring back a flood of detailed recollec-
tion. We can remember exactly where we were
' Address made before a joint meeting of the Cleve-
land Bar Association and the Academy of Medicine at
Cleveland, Ohio, on Dec. 8.
on those dates; what exactly we were doing
when we first heard the unbelievable news of
those two dates ; what exactly ran through our
minds as we tried to adjust to the enormity of
the events of those two dates.
One of those two dates was only a little over
a year ago. It was November 22, 1963.
The other date was exactly 23 years ago
yesterday. It was December 7, 1941.
We can all recall where we were — and what
we were doing — that incredible Sunday morning
23 years ago when the United States was cata-
pulted into what was to become the greatest
conflict of all recorded historj'. For example, I
was listening to Sammy Kaye's "Simday Sere-
nade" when I first heard the news.
Does it seem nearly a quarter of a century ago
that at 7 :55 a.m. Commander Mitsuo Fuchida
and his force of 353 aircraft swept in over the
limpid blue waters of the island of Oahu, its
foam-flecked surf breaking lazily in a thin white
line against the lush green shore, its drowsy
inliabitants only beginning to stir in the early
Sunday morning sunlight — and an unbelievable
2 hours later leaving behind a smoldering in-
ferno of destruction : 2,400 Americans dead ;
1,100 wounded ; 18 ships sunk or severely dam-
aged; 188 planes destroyed on the airfields —
and an entire nation at first shocked, then
frightened, and finally angered at what Presi-
dent Roosevelt called exactly 23 years ago to-
night "a date which will live in infamy"?
That date haft lived in our memory; and we
can all recall tonight how vastly that date
changed our lives.
But perhaps now, as we look back over it all,
906
DEPARTMENT OF STATE BULLETIN
the most compelling conviction that arises in
our minds is that such a day must never davm
again — not for us, not for our adversaries, not
for any nation on this poor restless planet. For
if another such day were ever to dawn — a day
marking for mankind the beginning of world
■war III — it would not be a date which would
live on in infamy. For perhaps nothing what-
ever would live on. Nothing.
That is the fact that man must live with for
whatever remains of his history on this planet.
That is the fact that makes startlingly clear
the context of our times.
That is the fact that defines both the worth —
and the warning — of our pursuit of peace.
A Time of Revolutionary Change
It is a paradox of our daily lives that though
we know more about the world today than man
has ever known, the very avalanche of daily
events can sometimes bury the deeper, more sig-
nificant trends of history.
We must keep up with the headlines. But if
we are to keep our heads wise, we must fill them
with more than mere headlines.
Indeed, if we are to keep our heads at all in an
age of nuclear tension, headlines are hardly the
most helpful prescription. A far better one is
the effort to look beyond the heady — and head-
achy— welter of the headlines and into the
longer term trend of the times.
One thing we know for sure. The second
half of this century is going to be as relentlessly
and radically different from the first half as the
year 1964 is so relentlessly and radically differ-
ent from the year 1914. No 50-year span in the
entire history of man has ever witnessed more
revolutionary changes. Those changes will
continue — and in the end will probably dwarf
any we can now even foresee.
But no country on earth need feel less un-
comfortable with change than our own. For
the United States itself was bom in a rush of
revolutionary change in 1776 — and has been in
a cheerful, headlong race with history ever since.
Change holds no fears for us, for we have
always believed in changing everything — except
our principles. And we have grown great as
a nation precisely because those principles were
DECEMBER 28, 1964
intrinsically sound enough not to require
change — but, at the same time, dynamic and
forward-lookmg enough to promote change in
almost everything else.
Principles we hold to. The status quo we
suspect.
And the American suspicion of the status quo
is a sage and sane suspicion, not a sly and sin-
ister one. For as Americans we merely suspect
that the status quo, no matter how good it may
once have been — or may even be now — can al-
ways be made a little bit better. And maybe
even a whole lot better !
In any case, we Americans are no strangers to
change. And it is well that we are not, for our
openminded attitudes toward change have swept
over the world since 1776 — and it would be iron-
ical indeed if we ended by becoming identified
in the newly emerging world as the worshipers
of the status quo when we were the first nation
of modern times, with our Declaration of Inde-
pendence, to knock that particular idol right
off its unlamented pedestal.
You ladies and gentlemen are doctors and
lawyers. I think you would agree that, looked
at legally and clinically, our Declaration of In-
dependence contained some pretty contagious
propositions.
That contagion of independence has swept
all over Asia and Africa and Latin America
since 1776 ; and while there may still be a few
fanatics left in the world who will tell you that
liberty is a disease, they will at least have to
admit that it is a disease of chronic and epidemic
proportions.
The Myth of Monolithic Uniformity
Not all the world is yet as free as we would
like to see it, but we have no doubts about the
long-term prospects for freedom everywhere.
We think they are good. And we think they
are good because we are convinced that the basic
appetite for freedom is as universal as man him-
self.
We want a world in which that appetite can
be reasonably satisfied. And we intend to help
build such a world.
We are not naive about the dangers of
tyranny, nor are we pessimistic about the pros-
907
pects of liberty. One thing, however, we are
very skeptical about. And that is the myth of
monolitliic uniformity.
Take the case of Eastern Europe. A very few
years ago we heard a lot about the monolithic
imif ormity of those nations. No one — least of
all the Marxist theoreticians themselves — is de-
scribing Eastern Europe in those terms today.
We in the United States have long believed
that the nations of Eastern Europe wanted to
be more themselves — not part of a drab and
dreary monolith. So we welcome the growing
evidence that the countries of Eastern Europe
are looking westward for a broader range of
contacts. We believe that trend is promising
for all concerned ; and for our part, we will ex-
plore any avenue that leads toward a realistic
bridging of the connnmiications gap.
President Jolinson underscored this point last
week when he said : ^
We will welcome evidence of genuine willingness on
the part of East European governments to cooperate
with the United States Government in joint endeavors.
We will reject no such overtures out of hand. We will
judge them in terms of the true interests of our own
people and the people of these countries. We wish to
build new bridges to Eastern Europe — bridges of ideas,
education, culture, trade, technical cooperation, and
mutual understanding for world peace and prosperity.
In this process there is no greater instrument than
truth.
We in USIA are in the business of getting
the truth about the United States understood
abroad, and we are doing that in Eastern Europe
as well as everywhere else.
I have just returned from a trip to that part
of the world, and I can tell you that there is a
great deal of curiosity about America among
the peoples of Eastern Europe. We in USIA
do all that we can to satisfy that curiosity.
On our Voice of America we broadcast to all
the peoples of Eastern Europe — in their own
languages— the truth about the United States.
I am glad to be able to report to you that in
this area only Bulgaria and East Germany still
attempt to jam our broadcasts. We hope they
too will soon realize that bridges of understand-
ing are never one-way thoroughfares. We hope
' For text of remarks made by President Johnson on
Dec. 2 before officials of Radio Free Europe, see
Bulletin of Dec. 21, lOfri, p. 876.
the leaders of these areas will understand that
to run from new ideas, or to close one's mind
and ears to another's viewpoint, is to give sanc-
tuary to the doubts and fears and prejudices
that are the principal ingredients of strife.
Attacks on U.S. Libraries
As I speak of ignorance, fear, prejudice, and
their role in producing conflict, let me digress
for a moment and comment on some recent de-
velopments that disturb me greatly.
Might I say here that when we talk of helping
new nations of the world to become strong, most
people think in teiTus of huge expenditures for
steel mills, fertilizers, hospitals, and the sort.
But you and I know that there is more to na-
tion building than that.
I believe that we at USIA, in our efforts to
spread knowledge, have also contributed might-
ily to the stability and independence of the
many new nations tliat have come upon the
world scene since World War II. In the 347
libraries, reading rooms, and binational cen-
ters that we operate in overseas communities,
thousands of young men and women have bor-
rowed from the ideas of Jefferson, Hamilton,
Lincoln, Roosevelt — yes, and even Kennedy — in
order to formulate their own ideas about how
people govern themselves, or how a nation goes
about establishing peaceful relationships with
the other nations of the world. They have
gained much of the teclmical and other infor-
mation that prepared them to study abroad and
become the doctors, lawyers, agronomists their
countries so desperately need.
It is because of my pride about this aspect of
our activities that I have been beset by anger,
and then pity, as I have read of the senseless
mobs in the United Arab Eepublic, in Indo-
nesia, and other places smashing library build-
ings and destroying books. ^lany times these
last few days I have remembered Milton's
warning :
As good almost kill a man as kill a good book : who
kills a man kills a reasonable creature, God's image;
but he who destroys a good book kills reason itself.
The tragedy, as I see it, is that our strife-
filled world needs nothing more than it needs
reason. And perhaps there is no greater key
to the stability of these new nations, so intoxi-
908
DEPARTMENT OF STATE BULLETIN
cated with youthful independence, than their
learning that blind passion and emotion are
dangerous substitutes for reason.
I regard as pitiable those young hoodlums
who show no respect for learning. I regard it
as unfortunate when governmental authorities
advertise their indiiference to or fail to antici-
pate the danger from elements planning con-
duct of this sort.
It is not that I do not expect the leaders and
peoples of other countries to disagree at times
with policies and actions of the United States.
One of our great goals is to create a world
where the weak may safely disagree with the
strong — and vice versa. But I maintain that
civilized, responsible men can make their feel-
ings known in ways other than book burnings
that serve no ultimate purpose other tlian to con-
demn large numbers of the present generation
to a degree of ignorance that they might have
escaped were they not denied access to the
learning that is stored up in these libraries.
I empliasize that this is no theoretical premise.
The hunger for books in Indonesia has been
enormous. Almost every university in Indo-
nesia continually called upon USIS in that
country to supply books and more books and an
infinite variety of information. Yet on August
14 a mob invaded our library in Jogjakarta, and
it has not been permitted to reopen since then.
And last Friday a mob stoned and sacked our
main library in the capital city of Djakarta.
These despicable raids have been followed not
by expressions of shame and disgust among In-
donesians elsewhere but by the wrecking yester-
day of our library in Surabaya.
But we do not despair in our mission to spread
the truth for we know that, as Franklin Roose-
velt told the American Booksellers Association
in April of 1942 :
We all know that books burn — yet we have a greater
knowledge that books cannot be killed by fire. People
die, but books never die. No man and no force can
abolish memory.
I submit that what we are seeing in Eastern
Europe is evidence that the peoples' undying
memory of days of liberty is asserting itself. I
can only hope that human memory of all the
misery inflicted upon humanity by tyranny and
ignorance down through the ages will assert it-
self anew in some of these areas where half-
educated ruffians are so quick to hurl a brick,
or take to the torch, at the behest of those who
lovo neither learning nor liberty.
Foi'tunately the recent wave of library vio-
lence is not typical of what wo experience in
most of the world, where people young and old
seem to have an insatiable appetite for learn-
ing. We see this not merely at our libraries but
in the reception given to our magazines and our
exhibits. I was in Sofia 2 weeks ago, and I got
a feeling of warm satisfaction when I noted that
in the frosty early morning or the late night
chill, there always — I repeat, always — was a
throng at the windows of the Legation, looking
at the photographs and reading the words that
told so much about life in the United States.
Another way we in USIA get the facts to
some of the peoples of Eastern Europe is
through our monthly magazine America Illus-
trated.
We are proud of that magazine — ^mainly be-
cause of its fantastic popularity in the two coun-
tries where it now circulates, Russia and Poland.
A Polish university professor recently wrote
to us:
We look forward to every new issue eagerly and im-
patiently. Its readers come from all walks of life ;
it is most popular, however, with the younger set, par-
ticularly with students and the intelligentsia. That
is only natural since it Is best understood and serves
its purpose best with the younger generation, and many
of your articles call for educated readers. The pur-
pose of your magazine is wonderful and praiseworthy.
I would like to compliment you on your excellent
job, a job more important and of greater impact than
that of an ambassador. You reach the people with
printed information of utmost importance not only to
a chosen few but to many, many thousands, since the
magazine is passed on from one reader to another. You
have very many admirers here, and every new copy
is awaited with impatience and curiosity. Printed in-
formation backed up by authentic photographs and the
magazine's excellent composition have a psychological
effect on the reader.
And a yoimg musician in Russia recently
wrote:
I have been receiving your magazine since 1956. It
familiarizes us Soviet readers with the way of life, cul-
ture and achievements of the great American people.
I have a great fancy for the magazine, and it interests
me so much that we have become good friends — the
magazine and I — and I can't wait for each new issue
DECEMBER 28, 1964
909
to arrive. ... I am writing to you because I have
neither friends nor anyone I know in the U.S.A. who
could help me. Your magazine is my only "old friend"
in America. I think that you will not reject my re-
quest: I would Uke very much to get a few modern
American jazz records, and, if possible, a couple of
musical magazines with pictures of jazz men, and a
catalog of records. . . .
We did not reject liis request. We feel that
American jazz by itself may not save the worid
for democracy but that either hot or cool jazz is
preferable to cold war.
In any case, America Illustrated is building
its own kind of peace bridges.
U.S. Exhibits in Eastern Europe
Now let me say a bit more about the way we
in USIA build bridges to the peoples of Eastern
Europe through our major exhibits.
Our Graphic Arts-USA exhibit, with visits
to Alma Ata, Moscow, and Yerevan, smashed
all records for attendance at an American ex-
hibit in Eussia. In Moscow alone more than
700,000 visitors saw it. Queues hundreds of
yards long formed in the 20° cold. Even
though the exhibit was located more than a half
a mile from the nearest public transportation
stop, 60,000 viewers toured the exhibit in tlie
first 2 days alone.
Without question, the American abstract art
in the exhibit caused the greatest discussion.
Debates between Russians even broke out on the
floor. Interestingly, visitors sometimes cut
short hecklers with comments such as : "You're
saying the same thing that Izvestia said. Shut
up. We came to hear what the Americans have
to say !"
From the Soviet Union, our Graphic Arts-
USA exliibit moved to Rumania. It recently
finished a 2-week run in the city of Ploesti.
Amazingly, 156,841 visitors enthusiastically el-
bowed their way through the exhibit — an at-
tendance several thousand people more than the
total population of the city !
Typical comments in the Visitors' Book were :
"I am delighted" — "Wonderful exhibit; please
come again." But one visitor wrote: "I liked
everything except the string on the pencil at-
tached to this comment book." The Rumanian-
made string was promptly replaced.
Although most of the visitors were obviously
prepared to like what they saw, their reaction
revealed amazement, enchantment, and sheer
joy, especially the joy of talking to Rumanian-
speaking Americans. The fact is that the
guides in our exhibits are always the most pop-
ular ingredient in the exhibit hall. It is not
merely that panels and paintings are on display.
Attractive young Americans are on display —
real, live, flesh-and-blood incarnations of the
U.S.A., chatting with the visitors in their own
language about every conceivable aspect of life
in America.
Here are some of the questions asked most
frequently at Leningrad tliis summer: How
much do you make a month? How much does
a new car cost? How much does a kilogram
of butter cost? Of sugar? Of bread? Of
meat? How come you have so many unem-
ployed people in America ? How do the unem-
ployed live? Where do they get the money to
live on ? How do you pay for medical service ?
Higher education ? Do you jam Radio Moscow ?
How much does an apartment cost to rent each
month? How long must you wait to buy a
car? A phone? A house? Do you have aU
the produce you need in the stores? Are there
a lot of gangsters in the U.S.A. ? Who killed
President Kennedy? Wliat will you do when
your workers revolt ? Why don't you like Cas-
tro and Cuba ? "Wliy don't you want to disarm ?
Can a worker in America really save enough
money to start his own business ?
These were typical questions asked of guides
at our new exhibit, Communications USA,
which has now been in Leningrad and Kiev and
has just opened in Moscow. The exhibit was
put together by some 30 private firms in the
United States and provides visitors with a broad
look as U.S. achievements in radio, television,
telephony, computer teclinology, and conmiuni-
cation advances for business, industry, space
science, and scientific research.
There are, of course, plenty of technical ques-
tions our guides answer. But you will note that
it is far more than mere teclmicalities that the
Russian visitors ai"e intei-ested in. The real
communications in this exhibit are not the wink-
ing, whirring computers. They are the smiling,
affable, and virtually inexhaustible USIA
guides!
910
dh:paktkent of state bulletin
In case any of you are thinking of volunteer-
ing, you should know that the guides work at
the exhibit 9 hours a day, 6 days a week. And
on their day off they're likely to be invited to
someone's home to answer even more questions !
There can be no reasonable doubt that these
USIA exliibits in Eastern Europe are worth
while. In the last 3 years well over 7 million
people there have visited them — 7 million poten-
tial bridges across the chasms of ignorance and
fear that are the first enemies of peace.
Supplying Leadership for Constructive Change
Let me emphasize that we at USIA are real-
ists. We don't expect communism to disappear
from the planet the day after our exhibits close.
But we know the Communist world is not going
to be changeless either. For the Communist
world is as subject to the relentless realities of
the teclmological and spiritual revolution that
is sweeping over our century as is any other
segment of mankind.
The changes in Commmiist societies may not
necessarily always be for the good of the free
world. They could conceivably be the opposite.
But I think we need neither be overly optimis-
tic, nor miduly pessimistic, about such changes.
What we do need to be is fully realistic.
The overpowering realism is that the world
we live in tonight will change. It will change
whether we will it so or not. The question for
us is whether we choose to be in the vanguard
of that global change — or merely in the back-
wash of it. Do we want to supply the leader-
ship for constructive change in the world ? Or
merely a foot-dragging f ollowership ?
The inner dynamism of our American belief
in freedom is itself the answer to that question.
But make no mistake about it, whatever we
believe about ourselves, some areas of the world
today are in doubt about our commitment to the
future. They are in doubt partially because
distance itself generates doubt. And they are
in doubt partially because Communist distor-
tion has deliberately fostered doubt. And they
are in doubt partially because unsavory aspects
of our own society have sometimes created
doubt.
That is why we must realize that in the end
it is what we do here at home, in our own
society — rather than merely what we say
abroad — that constitutes the central ingredient
of the American image overseas. It is the Great
Society that we build here at home that will
most convince the nations of Asia, Africa, and
Latin America that the U.S. pattern of society
is worthy of respect — and perhaps emulation.
"I have asked all Americans," said President
Johnson just last Friday,^ "to join in creating
the Great Society. The abundance of this great
land must be put to work for the benefit of all
the people — to eliminate poverty, to wipe out
discrimination, to provide education and em-
ployment opportunities, to create great cities, to
conserve the land and open spaces — and serve
all our people all the time."
•'I do not think," the President added, "any
of this is beyond the reach of a purposeful and
resourceful people."
Our success in building this Great Society
here in the United States will be the measure
of our success in projecting to the world a posi-
tive and favorable image of our people.
Oh, the future will not be easy or worry-free.
Decisions that confront a nation such as ours
are rarely painless, for we are so often drawn
into the quarrels of others that our actions fre-
quently displease someone. But our concern
must continue to he not whether our decisions
are pamless or painful, but only whether they
are principled.
What Is America?
In the end our nation will be great only to
the degree that it remains committed to the
bedrock on which all else we build must stand.
For what ultimately is America?
Is America the quiet, cobblestoned charm of a
Nantucket, its white frame houses, tall old elms
and weathered harbor all silent witnesses to the
memory of the Yankee captains who went down
to the sea in wooden ships ?
Or is America the rolling plains of western
Kansas, its harvest so wide that men can only
gather it with the help of great mechanical
' For the as-delivered text of remarks made by Presi-
dent Johnson at an Incentive awards ceremony for
Federal employees on Dec. 4, see White House press
release dated Dec. 4.
DECEMBER 28, 1964
911
leviathans that cut, and thresh, and bale a
boiuity so huge that it will nourish nations half
a globe away?
Or is America the great rocky spine that
hunches its snow-topped shoulders high in the
Continental Divide, standing at once as a
sentinel to the green promise of the Pacific and
as a bulky, balky barrier that tested the
pioneers' spirit and fomid it more unbending
than this barrier's own rocky might?
Wliat is America ?
The evening skyline of Cleveland, belching
fire and sinewy strength from its giant plants
along the Cuyahoga ?
Or a misty morning in San Francisco, its
gnarled hills heavy with the hint of mystery
from the Orient ?
Or an amber sunset in New Orleans, its Creole
courtyards pungent with magnolias, and
through the half-opened door of a waterfront
cafe, the jazzy, jarring bittersweetness of the
blues?
What is America ?
It is any of these things. It is all of these
things, and it is none of these things.
For it is more than you, or I, or any of the 190
million of lis, taken singly, or in the round.
For America is not a thing, or a place, or a
people.
America is an idea — an idea of liberty, of hu-
man dignity, of governments deriving their
powers from the consent of the governed.
The idea might have come to fruition any-
where— in any manner. But in historical fact
the idea that is America happened in 1776, here
on this rangy continent, to this motley collection
of peoples, and in this miscellaneous manner.
And that particular bit of history is far from
ended. A very gi'eat sequel remains yet to be
spun. History has chosen you and me and all
of us to spin out that idea in our century— and
to unite with men of good will anywhere who
share that idea's insistence on liberty and free-
dom.
What is America ?
It is what you and I and all of us choose to
make of it.
Can anyone — anywhere — not call us fortunate
to have that task ?
Japanese Prime Minister
To Visit Washington
White House press release dated December 4
Responding to the suggestion of Prime Min-
ister [Eisaku] Sato that it is important for the
United States and Japan to have compreliensive
discussions of the world situation at the earliest
possible time, President Johnson has invited
the Prime Minister to Washington for this pur-
pose. The visit has been sclieduled for
January 12.
Economic Development in Liberia
iy William C. Trimble
Director, Office of West African Affairs ^
I am particularly happy to be speaking be-
fore the D.C. Friends of Liberia in this year
which marks the 100th anniversary of the ex-
change of diplomatic representatives between
President Lincoln and President Stephen Ben-
son, and an anniversary which, fortuitously,
also coincides with the inauguration of Presi-
dent [William V. S.] Tubman's fourth term.
We Americans have a special feeling of kinship
for Liberia, a feeling that is reflected in the
close ties of friendship and understanding that
have existed between our two countries for well
over a century.
All of us are familiar with the story of tlie
valiant group of Americans who left our own
shores to form a new nation on the shores of
West Africa, the first republic on that vast
continent.
Like our own Founding Fathers, wlio might
well have chosen Liberia's national motto, "The
Love of Liberty Brought Us Here," the found-
ers of Liberia encountered great challenges in
establishing their new country, and also like our
own Foundhig Fathers drew inspiration from
the land they had left. These pioneers brought
' Address made before the D.C. Friends of Liberia
at Howard University, Wasliinston, D.C, on Dec. 11.
At that time Amba.ssador Trimble was Acting Deputy
Assistant Secretary for African Affairs.
912
DEPARTMENT OF STATE BULLETIN
with them a deep aflfection for our own country,
and the special bonds between both nations have
been enhanced over the years. "We all know of
the cultural and educational societies, the mis-
sion groups and the close personal relations
that have kept Liberian-American friendship
alive and meaningful. Many yoimg Liberians
have come to our colleges and universities, and
we take pride in the contributions they have
made to their homeland and the positions of
responsibility they have achieved.
There are so many that to list them would
take up the entire time this evening. However,
I should like to mention two with whom I have
been personally associated : Secretary of Treas-
ury Charles D. Sherman, an alumnus and for-
mer instructor at Howard, and Secretai-y of
State J. Rudolph Grimes, who graduated sec-
ond in his class at Harvard Law School. I only
regret that we cannot also claim the distin-
guished Ambassador of Liberia to the United
States, the Honorable S. Edward Peal, as an
alumnus of one of our institutions of higher
learning.
Many of you have been to Liberia. Even
though a foreigner, I felt myself at home there,
and I am sure that your experience was the
same. Liberians place a high value on friend-
ship and hospitality, have a natural warmth
and sympathy and a sense of humor which we
can readily appreciate for it is so much like
our own.
President Kennedy was keenly aware of the
special relationship between our two countries.
In one of his last acts he wrote in a letter to
President Tubman dated November 21, 1963 : ^
Mr. President, in a world which Is marked by con-
stant crisis and continual change, it is gratifying to
consider the close and cordial relations that have now
existed oflScially between our two governments for
over a century, as well as the special and friendly ties
that have linked us unofficially for an even longer
time.
It is likewise of significance to recall that one
of the first letters which President Johnson ad-
dressed to a foreign head of state on assuming
the Presidency was to President Tubman. In
- Not printed here.
it our President reaffirmed the importance we
attach to our relations with Liberia.
When we think of Liberia, our first thought
is for its leader. President Tubman, that em-
inent statesman whose wisdom and understand-
ing have contributed so importantly not only
to the advancement of his own country but to
all of Africa as well. We are indeed fortunate
that such a man is a friend of our country — a
true friend who can understand our weaknesses
as well as our strengths and who has been our
friend through fair weather and foul.
The period of Liberia's greatest development
in this century has coincided with the adminis-
trations of President Tubman. He was, as you
know, a friend of President Roosevelt, whom he
met in Monrovia in 1943 shortly before his own
election, and he has personally known all of our
Presidents since that time.
Evidences of Growth
An outstanding fact about Liberia today is
her strong surge of economic development.
The rate of economic growth has surpassed that
of most other countries of the world. For ex-
ample :
In the 1950-1960 decade, Liberia's gross
money income more than quadrupled.
Government receipts rose more than eight
times.
Iron ore exports rose from nothing to nearly
3 million long tons per year, and its reserves of
this mineral alone are estimated to be in excess
of 200 million tons.
Mileage of all-weather roads increased four-
fold.
President Tubman's open-door policy for for-
eign investments has attracted significant
amounts of capital from the United States as
well as from many countries of Europe and the
Near East. Our investments in Liberia today
are estimated at more than $300 million, or 20
percent of the total amount of American private
investment in all of Africa. That is to say,
one-fifth of all American private capital in
Africa — a continent of 36 independent na-
tions— is concentrated in Liberia.
As in all developing countries, Liberia has its
problems, and some of these represent real ob-
DECEMBEK 28, 1964
913
stacles to its progress. The important fact,
however, is that they have been recognized as
such by the Government of Liberia and ener-
getic measures are being undertaken to resolve
them. Therefore, despite these obstacles, there
is every reason to expect a continuing expansion
of the Liberian economy under President Tub-
man's Operation Production, the new 5-year
development program.
Operation Production emphasizes the need to
boost the national output to keep Liberia in the
race of the rapidly expanding African economy
and the higlily competitive world market, to
open up new avenues and to create new job op-
portunities which will raise living standards.
U.S. Aid to Liberia
111 support of Liberia's efforts to improve the
welfare of her people, since the end of World
War II our assistance program has been one
of the largest in the world on a per capita basis.
The scope of our aid program is too broad for
any detailed analysis here. But I do want to
mention the Moimt Coffee hydroelectric power
project, now under construction, which will
eventually triple Liberia's electric power. It
will have an initial generating capacity of
30,000 kilowatts and provision for an eventual
total of 90,000 kilowatts. Some 150 miles of
transmission line will carry power into areas
which have no electricity at present. About
$24 million for the project is being lent by the
U.S. Agency for International Development, in
addition to the amounts provided by tlie Libe-
rian Government itself.
One of the most heartening imdertakings in
modern Liberia is in the field of rural area
development. In the Gbamga region, for ex-
ample, where the program was initiated, Li-
berians and Americans have made real progress
toward solving basic human problems of a de-
veloping society. Liberians from the coast and
the hinterland are working together with United
States assistance to modernize living conditions
in what has been an underdeveloped rural area.
Twenty new elementary schools have been con-
structed in this region. Youth associations
have given a new sense of purpose to the young.
The development of paddy rice tecliniques, re-
placing upland rice-growing methods, has re-
sulted in a yield of two or three crops a year
instead of one.
Tliere is a new agricultural experimental sta-
tion and a network of fresh-water fish ponds
to provide more animal protein. A new hos-
pital has been erected. A promising agricul-
tural cooperative program is beginning to take
shape. A modern market has been built, to-
gether with farm-to-market roads.
Time doesn't permit me to discuss the strides
being made in other fields, such as education
(in which our Peace Corps volunteers — some
385 of them, young and old — are playing an
important role), sanitation, public health, and
communications. Suffice it to say real strides
are being made.
Liberia is moving ahead, and the pace will in-
creasingly accelerate. In view of our special
ties with Liberia, this is a source of particular
gratification to us. Liberia is determined to
preserve and strengthen her independence, to
provide a more abundant life for all of her peo-
ple, and to promote internationally the cause of
freedom, understanding, and human rights.
We, the friends of Liberia, fully share these
aspirations. And we likewise share the convic-
tion of the Liberian people that they will be
realized.
914
DEPARTSTENT OF STATE BUIXETIN
The Role of U.S. Foreign Assistance In Africa
hy Edmond C. Huichinson
Assistant Administrator for Africa, Agency for International Development ^
I am verj' happy to be invited to take part
in the dedication of this new Center for African
Studies at Boston University. This new center
is a meaningful manifestation of the ever-
increasing interest in Africa whicli is taking
place today. Only by developing our knowl-
edge of the history, the problems, and the prom-
ise of that vast continent can the United
States intelligently and effectively assist the
newly emerging African nations in their quest
for economic growth and social development.
I also welcome the opportunity to discuss with
you the nature and direction of the U.S. aid
program in Africa.
During the period of European predominance
in Africa, the United States had few official
contacts there. From time to time special rela-
tionships with Liberia were essential, but very
little in the way of meaningful relationships
was established. World War II brought with
it an increase in contacts in a number of coun-
tries, primarily related to Allied military activ-
ities. As the postwar movement for self-deter-
mination accelerated and as more and more
African countries became independent and be-
gan to take their place in world affairs, U.S.
interest and concern began to quicken and then
to grow apace.
U.S. aid policy and activities have paralleled
this mounting U.S. interest and concern and
have been directly related to the nature of those
interests and concerns. Now they have devel-
oped to a point where, as Secretary Rusk said
' Address made at the dedication of the Center for
African Studies, Boston University, Brookllne, Mass.,
on Dec. 8.
in a recent address to the American Negro
Leadership Conference on Africa,^
How the United States can assist them [Africans]
in strengthening their freedom and in gaining a more
abundant life is one of the Important questions on our
national agenda.
U.S. Aid to Africa: The 1950's
A significant part of the early history of
American public assistance to Africa emerged
from the Second World War, which found sev-
eral African states in locations strategic and
beneficial to the Allied war effort. The war
years thus marked the beginnings. For ex-
ample, Liberia's Robertsfield served as a West
African stopover point in ferrying planes and
supplies to the war front. In return for this
cooperation and as a part of the U.S. military
effort, lend-lease funds were provided for the
construction of a deepwater harbor at Monrovia.
Also, military aid funds were used to build
roads into the interior. During the 1940's a
variety of teclmical assistance teams provided
agricultural and public-health aid on an ad hoc
basis. All these culminated in the signing of a
formal assistance program agreement in 1951.
In the same year the U.S. offered to provide
Point 4r help to Ethiopia and Libya and ac-
quired rights to important naval and air facili-
ties in Morocco which were to lead to assistance
to that country when it obtained its freedom. At
this time, too, the United States financed the
production of basic and strategic materials in
Africa, principally in the then dependent terri-
tories of France and the U.K.
' Bulletin of Oct. 12, 1964, p. 498.
DECEKBEB 28, 1964
915
In the immediate postwar period the facts
that sub-Saharan Africa had little economic and
political significance to the United States and
that most decisions concerning so much of the
continent were in the hands of our European
associates meant that African matters had only
a limited place in American foreign policy con-
cerns. As a result, U.S. aid activity was lim-
ited, although some did flow indirectly through
Marshall Plan assistance to the European
metropoles. This remained largely true until
about 1955, when the United States was con-
fronted by the new situation of many African
territories approaching self-government.
As the evidence began to gather that the co-
lonial system was fast running its course.
United States policy shifted to address the bur-
geoning administrative, technical, and educa-
tional needs of the budding independent nations.
It became clear at the same time that the African
peoples were beginning to look to the United
States as a world power, as a nation which had
been generous in support of less developed
countries elsewhere in the world, and as a coun-
try without territorial ambitions. Further, as
the cold war intensified, base considerations be-
came an element in U.S. interests in parts of
Africa.
Between 1955 and 1958, aid programs emerged
in seven new states— Ghana, Kenya, Morocco,
Nigeria, Sudan, Tunisia, and Uganda— and rose
sharply in Libya and Somalia. In this period
the total of American economic assistance rose
from $37 million to $100 million a year, includ-
ing Export-Import Bank loans. A large part of
this assistance was, however, of the nondevelop-
mental type related to maintaining access to
bases and to other strategic-type objectives. As-
sistance directly related to improvement of
skills, and capital investment, amounted to only
$20 million in 1958.
Changes in the 1960's
By 1960 total economic assistance, in-
cluding surplus agricultural commodities pro-
vided under Public Law 480, had reached $207
million. In 19G1 there was a dramatic increase
in assistance, with the total reaching $453 mil-
lion. This high level has been maintained since
that time, with total assistance averaging $440
million a year for the period 1961 tlirough 1964.
There was not only a dramatic increase in
the volume of aid during this period, but there
were also significant changes in the content and
direction of U.S. economic assistance to Africa.
First, there has been a sharp decline in sup-
porting and other special types of assistance
from a peak of about $150 million to an esti-
mated approximately $30 million in 1965. The
decline in this type of assistance has been ac-
companied by an increase in dcvelopmentally
oriented assistance from the previously men-
tioned $20 million in 1958 to an annual average
of over $175 million for the period 1962-65.
In the earlier years of economic assistance to
Africa the major emphasis in teclmical assist-
ance was on the direct transfer of skills through
the provision of advisers and training — a peo-
ple-to-people approach on a very longrun,
low-cost basis.
Experience over the past few years, however,
has led to a basic reorientation in AID's ap-
proach. We have concluded that political and
social conditions, and expectations, in many de-
veloping countries preclude a diffuse, people-to-
people approach. Further, it became clear
from the older programs that basic institutions
and staff to receive teclmical assistance were
lacking and that a variety of services and insti-
tutions would have to be established to absorb
and benefit from external aid. Consequently
U.S. technical assistance to Africa has become
primarily "institution building" in character.
This concept is based on the realization that
assistance cannot be effective without an effi-
cient institutional base. It allows for work
within existing indigenous institutions to im-
prove them, as well as for programs to build
new institutions to utilize AID-supplied tech-
nology and expertise.
AID institution building takes two forms :
1. assistance which links technical assistance
with particular capital projects such as schools,
hospitals, development banks, roads, et cetera,
and
2. assistance which seeks to improve the orga-
nization and management of the governmental
structure or some department within the gov-
916
DEPARTMENT OF STATE BULLETIN
ernment, or which provides for the establish-
ment of a particular institution such as a
university, for example.
Under the first premise, the linking cf tech-
nical assistance with particular capital projects,
AID may provide funds to build a university,
provide teachers to staff it for a number cf years
upon completion of the physical plant, and si-
multaneously train Africans to step into faculty
positions. Thus a 10-year project might pro-
duce a university staffed and run by Africans
and prepared to continue training citizens of the
country on an ongoing basis without further
foreign aid. This kind of project is especially
favored because the linking of teclmical assist-
ance, i.e. people, and capital assistance, such as
buildings, will insure against teclmical assist-
ance being jeopardized from lack of sufficient
facilities and capital projects proving ineffec-
tive because of insufficiently trained staff.
Under the second premise, which seeks to im-
prove government management and operations,
AID may provide, for example, assistance in the
reorganization of a ministry of finance, im-
provement of budgeting and tax procedures, as-
sistance in establishing an agricultural service,
or assistance in improving the techniques of eco-
nomic planning. The objective in all such cases
is to build or improve some ongoing institution
of economic development so that it will, within
a reasonable period, be able to function on its
own without further foreign assistance and
give the recipient coimtry increased capacity
for sustained, self -motivated development.
One of the first products of a change in em-
phasis in aid activities was an enlarged effort in
the fields of education involving extensive
school construction and expansion of teacher
training and university systems. This followed
the reconamendations of a special study by the
National Academy of Sciences, which con-
cluded :
. . . that the future development of sub-Saharan
Africa depends. In the first Instance, upon the rate at
which progress can be made In strengthening educa-
tion at aU levels. . . .
Over $21 million was obligated in fiscal year
1961 for assistance in the field of education, con-
sisting of some 22 projects in 11 countries plus
some regional activities. This special progi-am
focused primarily on establishing indigenous
educational facilities and institutions. How-
ever, it also set about directly to train large
numbers of Africans in recognition of the severe
shortage of skilled persons at all levels. Some
150 young Americans went to teach in East
African secondary schools — a harbinger of the
Peace Corps — and we collaborated with 150
U.S. colleges and universities in a substantial
undergraduate scholarship program, involving
230 Africans in the first year.
Another major innovation was to turn the
focus of U.S. aid, as in other areas of the world,
to supporting basic economic growth through
broader defined development assistance. In the
case of a few selected countries, such as Nigeria
and Tunisia, we pledged significant help to
long-range development programs on the basis
of anticipations and assurances regarding coim-
try performance. The capital aid which these
produced, almost entirely through development
loans, has helped to develop physical facilities
and productive enterprises. These, moreover,
have established the United States' interest in
achieving the national development plans, and
encouraged other free-world donors to collabo-
rate and, more significantly, to liberalize their
financing conditions.
A further significant element in aid policy
has been our attempt to concentrate our efforts
in a relatively few functional areas in which we
have special competence and in geographic areas
of economic and political strength.
Future Trends
It is, of course, a gross understatement to say
that conditions in Africa are continuing to
change rapidly. Increased internal instability
and weak security, further attempts at Commu-
nist penetration, decreased influence and assist-
ance by ex-metropoles, and increased African
pressures to reduce reliance upon them and the
apparent nonacceptability of their assistance m
certain areas are all a part of the current Afri-
can situation. Such conditions have influenced
the course of U.S. aid over the past year and will
continue to do so in the future. Wliile neither
the future course of events in Africa nor their
DECESIBER 28, 1964
917
effect on U.S. aid policy and activities can be
completely foreseen, a few things do seem clear.
Among the policies and actions which seem ap-
propriate to these conditions and which we have
adopted or are undertaking are :
1. The central emphasis on U.S. aid policy
should continue to be on assisting African coun-
tries in making maximum progress along the
path of economic and social growth and develop-
ment.
2. New developments are of common concern
to the United States and other countries, and,
despite a changing European role in Africa,
there should be improved cooperation and co-
ordination among the U.S. and free-world
donors and a continued major input of assist-
ance into Africa by such donors.
3. We must have an increased willingness to
provide, in addition to advisory personnel, op-
erating personnel in our technical assistance pro-
grams in circimistances in which they are
acceptable to the African countries, while these
countries take steps to develop indigenous
trained manpower.
4. Greater developmental support will be pro-
vided to some countries, with AID standing
ready to give assurances of continuing U.S. de-
velopment support tied to country self-help
performance.
5. A willingness to be responsive to requests
and needs for programs of assistance in areas
related to internal stability such as public safety,
mass communications, youth, and labor.
6. An active and positive effort on the part
of AID to increase development lending by
conducting a greater number of and more com-
prehensive feasibility studies, by undertaking
better economic analyses, and by assistance in
accelerating project preparation. A special or-
ganizational xmit is being established within the
AID Africa bureau to undertake such activ-
ities.
From the foregoing it can be seen that U.S.
aid to Africa has grown and developed in a
maimer consistent with African conditions and
needs and U.S. interests and concern. Its
amoimt and direction and content have evolved
as conditions have changed. It is expected that
U.S. aid policies and activities will continue to
change and move with movements in the African
situation and U.S. interests. If, however, we
are to have the best answers to "one of the im-
portant questions on our national agenda," we
will have them only as a result of a mutual ef-
fort with African countries and institutions
such as this which you are dedicating here
today.
Worthwhile results from the aid are almost
certainly going to require changes in motiva-
tions and values and in sociopolitical situations.
We need to know more about methods of com-
mimicating with illiterate and isolated peoples,
the communications patterns existing in partic-
ular situations, the consequences of use of vary-
ing systems of land tenure, cultural traits con-
ducive to economic development, factors which
have ended periods of economic stagnation, the
best places to apply limited capital imports, the
relative strength of different sorts of incen-
tives, the possible role and value of extended
local government, the values and motivations
regarding borrowing and repaying loans, the
impact of the class structure on economic de-
velopment, et cetera. We must seek to obtain
adoption of the attitvides and forms of organiza-
tion that are the most conducive to incre-asing
productivity, savings, and investment and es-
tablishing effective and democratic political in-
stitutions.
For help in all these areas we must turn
more and more to imiversities and other in-
stitutions which have studied and are studying
Africa as such in an organized and systematic
way. I thus take particular pleasure in par-
ticipating in these exercises and wish you every
success in your stimulating and challenging
endeavors.
918
DEPARTMENT OF STATE BULLETIN
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
U.S. Comments on Soviet Statement
in U.N. General Debate
Following is a statement released to the press
on December 7 hy Amhassador Adlai E. Steven-
son, V.S. Representative to the U.N. General
Assembly, regarding the statement made that
day in the general debate by the Soviet Repre-
sentative, Andrei A. Gromyko.
U.S. delegation press release 4475
Evidently the world objectives of the Soviet
Union remain unchanged. Even self-defense
and aid to coiuitries to protect their security and
independence is wrong and illegal if it interferes
with the Soviet aggressive ambition to com-
munize the world.
I hope this harsh, cold-war talk is more prop-
aganda than policy and that the Soviet Union
really does want better relations and progi-ess
toward peace and security.
Malawi, Malta, and Zambia Admitted
to U.N. Membership
Statement by Adlai E. Stevenson
U.S. Representative to the G&neral Assembly ^
Mr. President [Alex Quaison-Sackey, of
Ghana] , may I first express our congratulations
to you, sir, and also congratulate the General
Assembly for choosing such a competent and
respected leader for its president. After years
as your colleague here at the United Nations,
like so many others sitting in this hall I can
testify that the conduct of our deliberations is
in skilled parliamentary hands of a man who
has so often demonstrated his ingenuity, his
resourcefulness, and his fairness.
It is an honor, Mr. President, for the United
States to welcome three new members to the
United Nations.^ We are confident that each
of these countries — Malawi, Zambia, and
Malta — will have much to contribute to the
work of this great organization.
The United Nations has not yet, unhappily,
achieved the goals set forth in its charter. The
path to peace through reconciliation of inter-
national differences is neither an easy nor a
short one. We in the United Nations can offer
to new members, therefore, only the prospect of
hard work in the service of the unrealized hopes
and ideals of the world community.
The United States is particularly pleased to
be associated in our work here with these new
members because we have enjoyed a long his-
tory of friendly relations with these peoples.
In Malawi, American citizens have been
active in educational, religious, and other
affairs for many years. At the same time,
many Malawians have studied and worked in
the United States.
My country has also long enjoyed the friend-
ship of Malta, especially since the Second World
War, in which Malta played such an important
part. The United States has had a consulate
there since the war and has welcomed thousands
of Maltese settlers to these shores.
In Zambia, Government officials and private
citizens of this country have been active for
many years in the fields of education, com-
munications, and rural development. And, of
course, my fellow countrymen are deeply in-
volved in the copper industry, which is of such
magnitude and importance to the economy of
this richly endowed country and, indeed, to the
economy of the world.
Finally, Mr. President, my delegation would
like to call attention, as the Secretary-General
'Made in plenary session on Dee. 2 (U.S. delegation
press release 4473) .
' On Dec. 1 the General Assembly by acclamation
admitted Malawi, Malta, and Zambia to membership
in the United Nations.
DECEMBER 28, 196 4
919
did this morning at the flag-raising ceremony,
to the peaceful transition to independence of
these three new members.
The orderly way in which they have reached
their goal excites our admiration and reflects,
we believe, great credit on them and also on the
former administering authority, the United
Kingdom, which has welcomed, encouraged,
and assisted the process of self-determination
and of independence. We are sure that the role
of these new members in the United Nations
will be constructive. In a time of crisis such
as the United Nations now faces, small and
large nations alike must strive to strengthen our
organization. We welcome Malta, Malawi, and
Zambia, therefore, with the conviction that
their future in the United Nations will always
serve the best interests of the world community
and the purposes for wliich this organization
was established.
U.N. Technical Assistance
Program for 1965-66
Statement iy Franklin H. Williams ^
As United States representative to the Tech-
nical Assistance Committee I wish to express
our gratitude to the executive chairman of the
Technical Assistance Board and his able staff
for the documentation which has so greatly
facilitated our task at tliis session.
My delegation joins in approving the pro-
gram proposed for 1965-1966, subject to the
availability of funds and with the reservation
that we are opposed to projects for Cuba except
those which can be justified on humanitarian
grounds, such as public-health projects.
Mr. Chairman, a few points have occuiTed to
us in the course of our examination of the pro-
gram documents upon which we wish to com-
ment:
1. The increase in Africa's share of the total
program is a continuation of a trend clearly
' Made In the Technical Assistance Committee of the
U.N. Economic and Social Council on Nov. 24 (U.S./
U.N. press release 4470). Mr. Williams is U.S. Repre-
sentative on the Council.
justified by the needs of the newly independent
countries on that great continent. My Govern-
ment is sensitive to the universal African desire
to supplement political independence with eco-
nomic development and wishes to encourage
and support this legitimate aspiration. We are
pleased also that the anticipated increase in the
overall program has made possible an increase
in absolute terms for other areas at the same
time that Africa's share has grown.
2. We are pleased also that the percentage of
country programs to be administered by each
of the participating organizations varies as
among countries. This would appear to reflect
improvements in programing techniques. In
particular, we have reason to believe from the
material before us that country programs are
now better related to changing priorities and
are better coordinated with assistance provided
by bilateral programs. We are certain that the
roles of the resident representatives working
with the government agencies and representa-
tives of the participating organizations have
had an important part in this apparent im-
provement in country programs.
3. We are puzzled by the relatively small
number of requests for OPEX [operational,
administrative, and executive] personnel. In
view of the fact that the report of regular
United Nations technical assistance for 1963
showed some 200 unfilled OPEX posts at the
end of that year, we had hoped that last year's
policy decision to enable EPTA [Expanded
Program of Technical Assistance] to finance
OPEX posts would be reflected in the current
program to a greater extent than the document
before us shows.
4. We also wonder why the proportion of
this program devoted to long-term projects has
decreased. We agree that too large a propor-
tion of available funds should not be committed
to continuing activities since this might have
the consequence of limiting the ability of the
program to be quickly responsive to emerging
and changing needs. Nevertheless, experience
indicates that it takes much longer than wo first
thought to train people to institute new pro-
grams and to do all the other things involved in
meeting the challenge of change. This could
lead us to expect a higher proportion of long-
920
DEPARTMENT OF STATE BULLETIN
term projects in country programs.
5. The proportion of this program devoted to
projects directly concerned with industrial pro-
duction has decreased. Even using a definition
of industry encompassing all projects related to
industry, the total program for this purpose
has not increased over the funds made available
for the current biennium. We wonder whether
the executive chairman and the commissioner
for industrial development have sufficiently ex-
plored methods of making the programs more
responsive to the desires of the developing
countries for greater assistance in speeding
their industrial development.
Finally, Mr. Chairman, my Government
hopes that the teclmical assistance programs of
the United Nations will continue to make an
ever-increasing contribution to the social and
economic development of the developing coim-
tries.
Current U.N. Documents:
A Selected Bibliography
Mimeographed or processed, documents (such as those
listed beloic) may he consulted at depository libraries
in the United States. U.N. printed publications may be
purchased from the Sales Section of the United Na-
tions, United Nations Plaza, N.Y.
Security Council
Arab Summit Conference Decisions ;
Letter dated September 18 from the Representative of
Israel drawing the Security Council's attention to
the decisions taken at the Arab Summit Conference
held at Alexandria regarding the "Palestine Libera-
tion Organization." S/5980. September 18, 1964.
2 pp.
Letter dated October 6 from representatives of 13
Arab states concerning the declaration issued by the
council of the heads of state of the member states of
the Arab League and attaching a copy of the decla-
ration. S/600.3. October 8, 19C4. 8 pp.
Letter dated October 19 from the Representative of
Israel reiterating his Government's views concerning
the Arab declaration. S/6020. October 21, 19&i.
2 pp.
Senegal-Portugal :
Letter dated October 14 from the Charg(5 d'Affaires of
Senegal concerning the violation of Senegalese ter-
ritory by a Portuguese aircraft. S/6012. October
14, 1964. 1 p.
Letter dated October 16 from the Charge d'Affaires
a. I. of Portugal denying the Senegal charge. S/6014.
October 16, 1964. 1 p.
Yemen :
Letter dated September 16 from the Representative of
Yemen concerning acts of provocation by British
planes. S/5978. September 18, 1964. 4 pp.
Letter dated September 18 from the Representative of
the United Kingdom concerning firing from Yemen
into the territory of the Federation of South Arabia.
S/5979. September 18, 1964. 2 pp.
Letter dated October 1 from the Representative of the
United Kingdom concerning further incidents in the
territory of the Federation of South Arabia originat-
ing from Yemen. S/5994. October 1, 1964. 1 p.
Letter dated October 7 from the Representative of the
United Kingdom recapitulating proposals put forth
by his Government toward restoration of peaceful
conditions on Yemen-Federation of South Arabia
border. S/6002. October 8, 1964. 5 pp.
Letter dated October 8 from the Representative of
Yemen concerning violations of Yemeni airspace by
British military aircraft and denying charges of
Yemeni responsibility for border incidents. S/6006.
October 9, 1964. 3 pp.
Letter dated November 14 from the Representative of
the United Kingdom denying charges of British in-
fringement of Yemeni airspace. S/6050. Novem-
ber 16, 1964. 1 p.
General Assembly
Letter dated September 11 from the Acting Represent-
ative of the U.S.S.R. transmitting the text of a
memorandum from the Soviet Ministry of Foreign
Affairs concerning "The question of the financial sit-
uation of the United Nations." A/5729. September
11, 1964. 13 pp.
Report of the Conference of the Eighteen-Xation Com-
mittee on Disarmament for the period from January
21 to September 17. A/5731. September 22, 1964.
102 pp.
Memorandum by the Secretary-General on the progress
achieved in the field of the political rights of women.
A/5735. September 28, 1964. 41 pp.
Report of the Secretary-General on the functioning of
the United Nations Emergency Force since August
31, 1963. A/5736. September 29, 1964. 17 pp.
Report of the Secretary-General on the draft declara-
tion on the promotion among youth of the ideals of
peace, mutual respect, and understanding between
peoples, A/5738, October 5, 1964, 34 pp. ; and a sep-
arate report of the Secretary-General on his study of
the desirability of establishing regional documenta-
tion and study institutions, A/5789, November 17,
1964, 6 pp.
Letter dated October 8 from the Representative of the
United States transmitting a U.S. memorandum con-
cerning "The United Nations financial crisis." A/
5739. October 8, 1964. 32 pp.
Letter dated October 8 from the Representative of
Pakistan concerning his Government's implementa-
tion of the resolution with regard to the policies of
apartheid of the Republic of South Africa. A/5741.
October 9, 1964. 2 pp.
Note by the Secretary-General on actions taken in ac-
cordance with Resolution 1713 (XVI) on the role of
patents in the transfer of technology to underdevel-
oped countries. A/5743. October 15, 1964. 3 pp.
Note by the Secretary-General on progress and opera-
tions of the Special Fund. A/5745. October 21, 1964.
2 pp.
Report of the Special Committee on proposals designed
to establish a process of conciliation within the
United Nations Conference on Trade and Develop-
ment. A/5749. October 27, 1964. 59 pp.
DECEMBER 28, 1964
921
GATT Contracting Parties Draft
Articles on Trade and Development
The following draft articles on trade and de-
velopment loere adopted hy the Contracting
Parties to the General Agreement on Tariffs
and Trade at a special session at Geneva No-
vember 17-26 and were made public on Decem-
ber 1 by Erie Wyndham White, Executive
Secretary of GATT. Formal signing of the
articles, to be incorporated as Part IV of the
General Agreement, is expected to take place at
a ministerial meeting early in 1965.
PART IV
Trade and Development
Article XXXVI
Principles and Objectives
1. The contracting parties,
(a) recalling that the basic objectives of this
Agreement include the raising of stand-
ards of living and the progressive devel-
opment of the economies of all contract-
mg parties, and considering that the
attainment of these objectives is partic-
ularly urgent for less-developed contract-
ing parties ;
(b) consideiing that export earnings of the
less-developed contracting parties can
play a vital part in their economic devel-
opment and that the extent of this con-
tribution depends on the prices paid by
the less-developed contracting parties for
essential imports, the volume of their ex-
ports, and the prices received for these
exports ;
(c) noting, that there is a wide gap between
standards of living in less-developed
countries and in other countries;
(d) recognizing that individual and joint ac-
tion is essential to further the develop-
ment of the economies of less-developed
contracting parties and to brmg about a
rapid advance in the standards of living
in these countries ;
(e) recognizing that international trade as a
means of achieving economic and social
advancement should be governed by such
rules and procedures — and measures in
conformity with sucli rules and proce-
dures— as are consistent with the objec-
tives referred to in this Article ;
(f) noting that the Contracting Parties
may enable less-developed contractmg
parties to use special measures to promote
their trade and development ;
agree as follows.
2. There is need for a rapid and sustained
expansion of the export earnings of the less-
developed contracting parties.
3. There is need for positive efforts designed
to ensure that less-developed contracting parties
secure a share in the growth in international
trade commensurate with the needs of their eco-
nomic development.
4. Given the continued dependence of many
less-developed contracting parties on the ex-
portation of a limited range of primary prod-
ucts, there is need to provide in the largest pos-
sible measure more favourable and acceptable
conditions of access to world markets for these
products, and wherever appropriate to devise
measures designed to stabilize and improve con-
ditions of world markets in these products,
including in particular measures designed to
attain stable, equitable and remunerative prices,
thus permitting an expansion of world trade
and demand and a dynamic and steady gi'owi:h
of the real export earnings of these countries so
as to jDrovide them with expanding resources
for their economic development.
5. The rapid expansion of the economies of
the less-developed contracting parties will be
facilitated by a diversification of the structure
of their economies and the avoidance of an ex-
cessive dependence on the export of primary
products. There is, therefore, need for in-
creased access in the largest possible mejisure
to markets under favourable conditions for
processed and manufactured products current-
ly or potentially of particular export interest
to less-developed contracting parties.
6. Because of the chronic deficiency in the ex-
port proceeds and other foreign exchange earn-
ings of less-developed contracting parties, there
are important inter-relationships between trade
922
department of state bulletin
and financial assistance to development. There
is, therefore, need for close and continuing col-
laboration between the Contracting Parties
and the international lending agencies so that
they can contribute most effectively to alleviat-
ing the burdens these less-developed contracting
parties assume in the interest of their economic
development.
7. There is need for appropriate collabora-
tion between the Contracting Parties, other
intergovernmental bodies and the organs and
agencies of the United Nations system, whose
activities relate to the trade and economic de-
velopment of less-developed countries.
8. The developed contracting parties do not
expect reciprocity for commitments made by
them in trade negotiations to reduce or remove
tariffs and other barriers to the trade of less-
developed contracting parties.
9. The adoption of measures to give effect to
these prmciples and objectives shall be a matter
of conscious and purposeful effort on the part of
the contracting parties both individually and
jointly.
Article XXXVII
Commitments
1. The developed contracting parties shall to
the fullest extent possible — that is, except when
compelling reasons, which may include legal
reasons, make it unpossible — give effect to the
following provisions :
(a) accord high priority to the reduction
and elimination of barriers to products
currently or potentially of particular ex-
port interest to less-developed contract-
ing parties, including customs duties and
other restrictions which differentiate un-
reasonably between such products in their
primarj' and in their processed forms ;
(b) refrain from introducing, or increasing
the incidence of, customs duties or non-
tariff import barriers on products cur-
rently or potentially of particular export
interest to less-developed contracting
parties; and
(c) (i) refrain from imposing new fiscal
measures, and
(ii) in any adjustments of fiscal policy
accord high priority to the reduction
and elimination of fiscal measures,
which would hamper, or which hamper,
significantly the growth of consumption
of primary products, in raw or processed
form, wholly or mainly produced in the
territories of less-developed contracting
parties, and which are applied specifi-
cally to those products.
2. (a) Wlienever it is considered that effect
is not being given to any of the provisions of
sub-paragraphs (a), (b) and (c) of paragraph
1, the matter shall be reported to the Con-
tracting Parties either by the contracting par-
ty not so giving effect to the relevant provisions
or by any other interested contracting party.
(b) (i) The Contracting Parties shall, if
requested so to do by any interested contracting
party, and without prejudice to any bilateral
consultations that may be undertaken, consult
with the contracting party concerned and all
interested contracting parties with respect to
the matter with a view to reaching solutions
satisfactoiy to all contracting parties concerned
in order to further the objectives of Article
XXXVI. In the course of these consultations,
the reasons given in cases where effect was not
being given to the provisions of sub-paragraphs
(a), (b) or (c) of paragraph 1 shall be
examined.
(ii) As the implementation of the provisions
of sub-paragraphs (a), (b) or (c) of paragraph
1 by individual contracting parties may in some
cases be more readily achieved where action is
taken jointly with other developed contracting
parties, such consultation might, where appro-
priate, be directed towards this end.
(iii) The consultations by the Contracting
Parties might also, in appropriate cases, be di-
rected towards agi-eement on joint action de-
signed to further the objectives of this Agree-
ment as envisaged in paragraph 1 of Article
XXV.
3. The developed contracting parties shall :
(a) make every effort, in cases where a gov-
ernment directly or indirectly determines the
resale price of products wholly or mainly pro-
duced in the territories of less-developed
DECEMBER 28, 1964
923
contracting parties, to maintain trade mar-
gins at equitable levels ;
(b) give active consideration to the adoption
of other measures designed to provide greater
scope for the development of imports from
less-developed contracting parties and collab-
orate in appropriate international action to
this end ;
(c) have special regard to the trade interests
of less-developed contracting parties when
considering the application of other measures
permitted under this Agreement to meet par-
ticular problems and explore all possibilities
of constructive remedies before applying such
measures where they would affect essential
interests of those contracting parties.
4. Less-developed contracting parties agree to
take appropriate action in implementation of
the provisions of Part IV for the benefit of the
trade of other less-developed contracting par-
ties, in so far as such action is consistent with
their individual present and future develop-
ment, financial and trade needs taking into ac-
count past trade developments as well as the
trade interests of less-developed contracting
parties as a whole.
5. In the implementation of the commitments
set forth in paragraphs 1 to 4 each contracting
party shall afford to any other interested con-
tracting party or contracting parties full and
prompt opportimity for consultations under the
normal procedures of this Agreement with re-
spect to any matter or difficulty which may
arise.
Article XXXVIII
Joint Action
1. The contracting parties shall collaborate
jointly, within the framework of this Agree-
ment and elsewhere, as appropriate, to further
the objectives set forth in Article XXXVI.
2. In particular, the Contracting Parties
shall :
(a) where appropriate, take action, includ-
ing action through international arrange-
ments, to provide improved and acceptable
conditions of access to world markets for pri-
mary products of particular interest to less-
developed contracting parties and to devise
measures designed to stabilize and improve
conditions of world markets in these products
including measures designed to attain stable,
equitable and remunerative prices for exports
of such products ;
(b) seek appropriate collaboration in mat-
ters of trade and development policy with the
United Nations and its organs and agencies,
including any institutions that may be created
on the basis of recommendations by the
United Nations Conference on Trade and
Development ;
(c) collaborate in analysing the develop-
ment plans and policies of individual less-
developed contracting parties and in examin-
ing trade and aid relationships with a view
to devising concrete measures to promote the
development of export potential and to fa-
cilitate access to export markets for the prod-
ucts of the industries thus developed and, in
this connexion seek appropriate collaboration
with governments and international organiza-
tions, and in particular with organizations
having competence in relation to financial
assistance for economic development, in sys-
tematic studies of trade and aid relationships
in individual less-developed contracting
parties aimed at obtaining a clear analysis of
export potential, market prospects and any
further action that may be required;
(d) keep under continuous review the de-
velopment of world trade with special ref-
erence to the rat« of growth of the trade of
less-developed contracting parties and make
such recommendations to contracting parties
as may, in the circumstances, be deemed ap-
propriate ;
(e) collaborate in seeking feasible methods
to expand trade for the purpose of economic
development, through international harmo-
nization and adjustment of national policies
and regulations, through technical and com-
mercial standards affecting production, trans-
portation and marketing, and through export
promotion by the establishment of facilities
for the increased flow of trade information
and the development of market research ; and
(f ) establish such institutional arrangements
as may be necessary to give effect to the pro-
visions and further the objectives of this Part.
924
DEPARTMENT OF STATE BULLETIN
Notes and Sdpplementabt Pbovisions
Ad PART IV
The words "developed contracting parties" and the
words "less-developed contracting parties" as used in
Part IV are to be understood to refer to developed and
less-developed countries which are parties to the Gen-
eral Agreement on Tariffs and Trade.
Ad Article XXXVI
Ad paragraph 1
This Article is based upon the objectives set forth in
Article I as it will be amended by Section A of para-
graph 1 of the Protocol Amending Part I and Articles
XXIX and XXX when that Protocol enters into force.
Ad paragraph 4
The term "primary products" includes agricultural
products, vide paragraph 2 of the notes ad Article XVI,
Section B.
Ad paragraph 5
A diversification programme would generally include
the intensification of activities for the processing of
primary products and the development of manufactur-
ing industries, taking into account the situation of the
particular contracting party and the world outlook for
production and consumption of different commodities.
Ad paragraph 8
It is understood that the phrase "do not expect
reciprocity" means, in accordance with the objectives
of this Article, that the less-developed contracting
parties should not be expected, in the course of trade
negotiations, to make contributions which are incon-
sistent with their individual development, financial
and trade needs, taking into consideration past trade
developments.
This paragraph would apply in the event of action
under Section A of Article XVIII, Article XXVIII,
Article XXVIII bis (Article XXIX after the amend-
ment set forth in Section A of paragraph 1 of the
Protocol Amending Part I and Articles XXIX and
XXX shall have become effective). Article XXXIII,
or any other procedure under this Agreement.
Ad Article XXXVII
Ad paragraph 1(a)
This paragraph would apply in the event of negotia-
tions for reduction or elimination of tariffs or other
restrictive regulations of commerce under Articles
XXVIII, XXVIII bis (XXIX after the amendment set
forth in Section A of paragraph 1 of the Protocol
Amending Part I and Articles XXIX and XXX shall
have become effective), and Article XXXIII, as well
as in connexion with other action to effect such reduc-
tion or elimination which contracting parties may be
able to undertake.
Ad paragraph 3 (i)
The other measures referred to in this paragraph
might include steps to promote domestic structural
changes, to encourage the consumption of particular
products, or to introduce measures of trade promotion.
TREATY INFORMATION
Current Actions
MULTILATERAL
Atomic Energy
Agreement for the application of safeguards by the
International Atomic Energy Agency to the bilateral
agreement between the United States and Viet-Nam
of April 22, 1959, as amended (TIAS 4251, 5622),
for cooperation concerning civil uses of atomic en-
ergy. Signed at Vienna September 18 and Novem-
ber 25, 1964. Enters into force on the date on which
the Agency accepts the initial inventory.
Signatures: International Atomic Energy Agency,
United States, Viet-Nam.
Agreement for the application of safeguards by the
International Atomic Energy Agency to the bilateral
agreement between the United States and Argentina
of June 22, 1962, as amended (TIAS 5125, 5660), for
cooperation concerning civil uses of atomic energy.
Signed at Vienna December 2, 1964. Enters into
force on the date the Agency accepts the initial
inventory.
Signatures : Argentina, International Atomic Energy
Agency, United States.
Diplomatic Relations
Vienna convention on diplomatic relations;
Optional protocol to Vienna convention on diplomatic
relations concerning compulsory settlement of
disputes.
Done at Vienna April 18, 1961. Entered into force
April 24, 1964.^
Ratification deposited: Federal Republic of Germany
(including Land Berlin), November 11, 1964.
Labor
Instrument for the amendment of the constitution of
the International Labor Organization. Done at
Montreal October 9, 1946. Entered into force April
20, 1948. TIAS 1868.
Acceptance: Zambia, December 2, 1964.
Nuclear Test Ban
Treaty banning nuclear weapon tests in the atmosphere,
in outer space and under water. Done at Moscow
August 5. 1963. Entered into force October 10, 1963.
TIAS 5433.
Ratifications deposited: Italy, December 10, 1964;
Togo, December 7, 1964.
Shipping
Convention on the Intergovernmental Maritime Con-
sultative Organization. Done at Geneva March 6,
1948. Entered into force March 17, 1958. TIAS
4044.
Acceptance deposited: Philippines, November 9, 1964.
Telecommunications
Partial revision of the radio regulations (Geneva 1959),
with annexes and additional protocol. Done at Ge-
' Not in force for the United States.
DECEMBER 28, 1964
925
neva November 8, 1964. Enters into force January
1, 19C5. TIAS 5603.
notifications of approval: China, October 8, 1964;
Iceland. October 7, 1964 ; Ivory Coast, October 9,
1964- Netherlands, October 19, 1964; Sierra Leone,
October 7, 1964; Vatican City State, October 10,
1964.
BILATERAL
Canada
Agreement relating to the winter maintenance of
Haines Road for the 1964-65 season. Effected by
exchange of notes at Ottawa November 27, 1964.
Entered into force November 27, 1964.
Portugal
Agreement on the use of ports by the NS Savannah,
with annex. Effected by exchange of notes at Lisbon
November 12, 1964. Entered into force November 12,
1964.
PUBLICATIONS
Recent Releases
For sale hy the Superintendent of Documents, U.S.
Government Printing Office, Washington, B.C., 201,02.
Address requests direct to the Superintendent of Docu-
ments, except in the case of free publications, which
may be obtained from the Office of Media Services,
Department of State, Washington, D.G., 20520.
ABC's of Foreign Trade: U.S. Trade Policy in Brief.
A basic primer on the subject of foreign trade with
particular emphasis on U.S. policy. Includes charts,
illustrations, and a glossary. Pub. 7713. Commercial
Policy series 199. 38 pp. 20!*.
Foreign Affairs Outline No. 8— Democracy vs. Dicta-
tors in Latin America— How Can We Help? Article
based on an address made by Thomas C. Mann, Assist-
ant Secretary of State for Inter-American Affairs, at
the University of Notre Dame, Notre Dame, Indiana.
Pub. 7729. Inter-American series 90. 6 pp. 5«}.
Background Notes. A new leaflet series on foreign
countries. These leaflets are short, factual summaries
which describe briefly the people, history, government,
economy, and foreign relations of each country. Each
contains a map, a list of principal government officials
and U.S. diplomatic and consular officers, and, in some
cases, a selected bibliography. Those listed belovp are
the first in the series now available at 5^ each.
Cambodia. Pub. 7747. 8 pp.
Pakistan. Pub. 7748. 8 pp.
Philippines. Pub. 7750. 8 pp.
Israel. Pub. 7752. 4 pp.
Malaysia. Pub. 7753. 8 pp.
Ceylon. Pub. 7757. 8 pp.
Iran. Pub. 7760. 4 pp.
Costa Rica. Pub. 7768. 4 pp.
Maritime Matters — Use of United Kingdom Ports and
Territorial Waters by the N.S. Savannah. Agreement
with United Kingdom. Exchange of notes — Signed at
London June 19, 1964. Entered into force June 19,
1064. TIAS 56:^3. 12 pp. lOg.
Weather Stations— Continuation of Cooperative Me-
teorological Program. Agreement with Peru. Ex-
change of notes — Signed at Lima July 7, 1964. En-
tered into force July 7, 1964. Operative January 1,
1963. TIAS 5634. 5 pp. 50.
Relief From Double Taxation on Earnings From Oper-
ation of Ships and Aircraft. Agreement with Mexico.
Exchange of notes — Signed at Washington August 7,
1964. Entered into force August 7, 1964. TIAS 5635.
5 pp. 50.
Guaranty of Private Investments. Agreement with
Mali. Exchange of notes — Dated at Bamako June 4
and 9, 1964. Entered into force June 9, 1964. TIAS
5636. 5 pp. 50.
Double Taxation — Taxes on Income. Protocol with
Japan, modifying and supplementing convention of
April 16, 1964^Signed at Tokyo May 7. 1960. Entered
into force September 2, 1964. TIAS 5637. 16 pp. 150.
Law of the Sea— Convention on the Territorial Sea
and the Contiguous Zone. Convention with Other Gov-
ernments— Done at Geneva April 29, 19.>S. Entered into
force September 10, 1964. TIAS 5639. 70 pp. 2.50
Agrricultural Commodities. Agreement with United
Arab Republic, amending agreement of October 8, 1962,
as amended. Exchange of notes — Signed at Cairo July
20, 1964. Entered into force July 20, 1964. TIAS 5640.
3 pp. 5^.
United States Defense Areas on St. Lucia. Agreement,
with Annex, with United Kingdom, replacing Annex D
of agreement of February 10, 1961, concerning U.S. De-
fense Areas in the West Indies. Exchange of notes —
Signed at London August 20, 1964. Entered into force
August 20, 1964. TIAS 5641. 6 pp., maps. 50(?.
Use of Beane Field in St. Lucia. Agreement with
United Kingdom. Exchange of notes — Signed at I^on-
don August 20. 1964. Entered into force August 20,
1964. TIAS 5642. 4 pp. 50.
Education— Educational Foundation and Financing of
Exchange Programs. Agreement with Australia —
Signed at Canberra August 28, 1964. Entered into
force August 28, 1964. TIAS 5643. 7 pp. 100.
Atomic Energy — Cooperation for Civil Uses. Agree-
ment with France, amending agreement of June 19,
1956, as amended — Signed at Washington June 22, 1964.
Entered into force August 31, 1964. TIAS 5644. 3 pp.
50.
Education — Educational Foundation and Financing of
Exchange Programs. Agreement with Ceylon — Signed
at Colombo August 29, 1964. Entered into force .\ugust
29, 1964. TIAS 5645. 6 pp. 50.
Communications Satellite System (COMSAT). Agree-
ment with Other Governments. And Special Agree-
ment Concluded by Certain Governments and Entities
Designated by Governments. Agreement establishing
interim arrangements for a global commercial satellite
system and special agreement — Done at Washington
Augtist 20, 1964. Entered into force August 20. 1964.
TIAS 5640. 76 pp. 250.
Air Transport Services — Mexico City-Detroit Route.
Agreement with Mexico, complementing route schedule
annexed to agreement of August 15, 1960, as extended.
Exchange of notes — Dated at M(5xlco .Vugiist 14, 1964.
Entered into force August 14, 1!>64. TIAS .5647. 3 pp.
5*!.
926
DEPARTMENT OF STATE BTJLLETIN
INDEX December 28, 1964 Vol. LI, No. 1831
Africa. The Role of U.S. Foreign Assistance In
Africa (Hutchinson) 915
American Republics. Inter-American Economic
and Social Council Reviews Alliance for Prog-
ress (Mann) 898
Bolivia. U.S. Renews Normal Relations With
Bolivia 901
Department and Foreign Service. Secretary
Deplores Book Burning and Damage to U.S.
Embassies 905
Economic Affairs
GATT Contracting Parties Draft Articles on
Trade and Development (test) 922
U.N. Technical Assistance Program for 1965-66
(Franklin H. Williams) 920
Europe. USIA: Building Bridges of Peace in a
Changing World (Rowan) 906
Foreign Aid
Inter-American Eccmomic and Social Council
Reviews Alliance for Progress (Mann) . . . 898
The Role of U.S. Foreign Assistance in Africa
(Hutchinson) 915
U.S. and Viet-Nam Plan Measures To Improve
Situation in Viet-Nam (Vietnamese com-
munique) 904
International Information
Secretary Deplores Book Burning and Damage
to U.S. Embassies 905
USIA : Building Bridges of Peace in a Changing
World (Rowan) 906
International Organizations and Conferences
GAIT Contracting Parties Draft Articles on
Trade and Development (text) 922
Inter-American Economic and Social Council Re-
views Alliance for Progress (Mann) .... 898
Japan. Japanese Prime Minister To Visit Wash-
ington 912
Liberia. Economic Development in Liberia
(Trimble) 912
Malawi. Malawi, Malta, and Zambia Admitted
to U.N. Membership (Stevenson) 919
Malta. Malawi, Malta, and Zambia Admitted to
U.N. Membership (Stevenson) 919
Military Affairs. U.S. and Viet-Nam Plan Meas-
ures To Improve Situation in Viet-Nam (Viet-
namese communique) 904
North Atlantic Treaty Organization. British
Prime Minister Visits Washington (Johnson,
Wilson, joint communique) 902
Presidential Documents. British Prime Minis-
ter Visits Wa.shington 902
Publications. Recent Releases 926
Treaty Information
Current Actions 925
GATT Contracting Parties Draft Articles on
Trade and Development (test) 922
U.S.S.R. U.S. Comments on Soviet Statement in
U.N. General Debate (Stevenson) 919
United Kingdom. British Prime Minister Visits
Washington (Johnson, Wilson, joint com-
munique) 902
United Nations
Current U.N. Documents 921
Malawi, Malta, and Zambia Admitted to U.N.
Membership (Stevenson) 919
U.N. Technical Assistance Program for 1965-66
(Franklin H. Williams) 920
U.S. Comments on Soviet Statement in U.N.
General Debate (Stevenson) 919
Viet-Nam. U.S. and Viet-Nam Plan Measures
To Improve Situation in Viet-Nam (Vietnam-
ese communique) 904
Zambia. Malawi, Malta, and Zambia Admitted
to U.N. Membership (Stevenson) 919
Name Index
Hutchinson, Edmond C 915
Johnson, President 902
Mann, Thomas C 898
Rowan, Carl T gog
Rusk, Secretary 905
Sato, Eisaku 912
Stevenson, Adlai E 919
Trimble, William C 912
Williams, Ftanklin H 92O
Wilson, Harold 902
Check List of Department of State
Press Releases: December 7-13
Press releases may be obtained from the Office
of News, Department of State, Washington, D.C.,
20520.
Subject
U.S. participation in international
conferences.
Resumption of diplomatic relations
with Bolivia.
Amendments to program for visit
of U.K. Prime Minister.
Rusk : message to Segni on resig-
nation.
Rusk : statement on book burning
and damage to U.S. embassies.
Delegation to NATO ministerial
meeting (rewrite).
*Xot printed.
tHeld for a later issue of the Bulletin.
No.
Date
•514
12/7
515
12/7
*516
12/7
•517
12/8
518
12/9
t519
12/11
/
Zi 120 ssm NOisog
3mnbs kiidoo
0 o.iQ gsa
Superintendent of Documents
u.s. government printing office
WASHINGTON. O.C. 2040a
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OFFICIAL BUSINESS
FOREIGN AFFAIRS OUTLINE
1965: International Cooperation Year
On November 21, 1963, the General Assembly of the United Nations named 1965 "International
Cooperation Year." This Foreign Affairs Outline discusses this theme by pointing out that "interna-
tional cooperation is a fact of life ; indeed . . . the most important fact of life in the second half of the
20th century."
Included in this pamplilet is a statement by President Jolinson in which he proposes to dedicate
1965 "to finding new teclmiques for making man's knowledge serve man's welfare. . . . Let it be a
turning point in the struggle — not of man against man, but of man against nature. In the midst of
tension let us begin to chart a course toward the possibilities of conquest which bypass the politics of
the cold war."
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