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Given By 
U. S. SUFT. OF DOCUMENTS 



3^ 



THE DEPARTMENT OF STATE 



BULLETIN 



OCTOBER 4, 1941 
Vol. V, No. 119 — Publication 1645 



C 



ontents 



Europe Paee 

Polish-Soviet relations 245 

National Defense 

Regulations governing the international traffic in arms . 246 
Monthly statistics on traffic in arms, ammunition, etc . 248 

General 

Remarks of the Secretary of State on his seventieth 

birthday 250 

Contributions for relief in belligerent countries .... 251 

Cultural Relations 

American Public Health Association Conference ... 251 

The Foreign Service 

Promotions 252 

Personnel changes 252 

Treaty Information 

Health: International Agreement Relating to Statistics 

of Causes of Death 253 

Sovereignty: Act of Habana and the Convention on the 
Provisional Administration of European Colonies and 
Possessions in the Americas 253 

Publications 253 

Regulations 253 




U. S. SUPERINTFNPENT OF DOCUMEN.^ 
OCT 21 194J 



Europe 



POLISH-SOVIET RELATIONS 



fReleased to the press September 30] 

The text of a letter from the Ambassador of 
Poland, Mr. Jan Ciechanowski, to the Secretary 
of State, follows: 

"September 29th, 1941. 
"De^\r Mr. Secretary, 

"I know how interested you are in the devel- 
opment of the efforts of the Polish Government 
relating to the formation of the Polish Army 
units in Soviet Russia, as well as in that of 
Polish-Soviet relations in general on the basis 
of the agreement signed in London on July 30, 
1941, between Poland and the U.S.S.R. by vir- 
tue of which normal relations have been re- 
newed between the two countries. 

"I am very glad to be able to tell you on the 
basis of information I just received from Lon- 
don that the enthusiasm of the Poles in Russia 
actively to resume the fight against Hitlerite 
Germany is so great, that the Polish Army in 
Russia will be virtually an army of volunteers. 
Great numbers of Poles of military age apply 
daily demanding to be enrolled immediately in 
the Polish Forces, thus swelling the ranks of 
units which are being formed from our regular 
soldiers who had been interned in Russia. 

"The Polish Government is confident that it 
will be able to put in the field very shortly an 
army of well over 100,000 men, provided they 
can be supplied with the necessary material and 
equipment from Great Britain and the United 
States. I hear that two divisions are already 
formed and the third is nearing completion. 



"What will interest you especially, I am sure, 
is that the U.S.S.R. has granted to our Armed 
Forces full rights of an independent National 
Polish Army, giving it likewise the right of 
opening its own schools, full cultural freedom 
and freedom of worship for both Christians and 
Jews. We have already got our own Catholic 
military chaplains. 

"Generally speaking, as matters now stand, 
the Soviet Government is loyally fulfilling all 
its engagements. The Polish deportees have 
now obtained their freedom and it is gratifying 
to note that of the estimated number of one 
million and a half of Poles at present in Russia, 
those who are physically able and who are not 
of military age, are anxious to do their share 
in all kinds of war work in factories and on 
farms for the common effort. A special Polish 
Committee has been set up to enable them to 
do so. 

"Perhaps the most heartening fact is that a 
Polish Catholic church is about to be opened in 
Moscow, as well as a synagogue for Polish Jews, 
and that the Polish communities in Russia have 
been allowed by the Soviet Government to in- 
stitute places of worship and have been given 
full freedom in this field. 

"One of the great difficulties is the lack of 
warm garments and warm underwear, footwear, 
as well as of medical supplies among the Poles 
in Russia. Men's clothing is most needed, there 
being a majority of men among the Polish 
deportees. 



245 



246 



DEPARTMENT OF STATE BULLETIN 



"In view of the very kind interest which the 
President has sd graciously shown in all mat- 
ters relating to Poland and the Polish people, 
I should regard it as a great favor if you would 
kindly see your way to convey this information 
to the President. 

"Please accept [etc.] 

J. ClECgHANOWSKi" 

[Released to the press by the White House October 2] 

Because of the varied and conflicting "inter- 
pretations" of the remarks made by the Presi- 
dent in answer to a newspaperman's inquiry 
at the press conference last Tuesday [Sep- 
tember 30], the verbatim transcription of the 
stenographic records of that conference is 
hereby released and permission given for its 
direct quotation. 

This action is taken because of some mis- 
quotations which have appeared. 

Since the Soviet Constitution declares that 
freedom of religion is granted, it is hoped that 
in the light of the report of the Polish Am- 
bassador an entering wedge for the practice 
of complete freedom of religion is definitely on 
its way. 

Question: Mr. President, the State Depart- 
ment got out a letter from the Polish Ambas- 
sador today, showing that the Russians are 
going to allow the Poles to have their own 
churches. 



The President: I have just got it — the 
mimeographed State Department letter — ^but I 
also got it from another source this morning. 

Question: Would you care to make any 
comment on it? 

The President: No. It speaks for itself. 

Question: (interposing) Mr. President — 

The President: (continuing) As I think I 
suggested a week or two ago, some of you 
might find it useful to read Article 124 of the 
Constitution of Russia. 

Question: Wlaat does that say, Mr. Presi- 
dent ? 

The President: Well, I haven't learned it by 
heart sufficiently to quote — I might be off a 
little bit, but anyway : Freedom of conscience — 

Question: (interposing) Would you say — 

The President: (continuing) Freedom of 
religion. Freedom equally to use propaganda 
against religion, which is essentially what is 
the rule in this country; only, we don't put 
it quite the same way. 

For instance, you might go out tomorrow — 
to the corner of Penn.sylvania Avenue, down 
below the Press Club — and stand on a soap- 
box and preach Christianity, and nobody 
would stop you; and then, if it got into your 
head, perhaps the next day preach against 
religion of all kinds, and nobody would stop 
you. 



National Defense 



REGULATIONS GOVERNING THE INTERNATIONAL TRAFFIC IN ARMS 



[Released to the press October 3] 

The regulations governing the international 
traffic in arms, promulgated on November C, 
1939, purs^uant to the authority vested in the 
Secretary of State by the provisions of section 
12 of the joint resolution of Congress approved 
November 4, 1939, were amended by the Secre- 
tary of State on October 2, 1941, in the follow- 
ing i-espects: 



Paragraph (9)^ has been amended to read as 
follows : 

"Persons who are not engaged in the business 
of exporting or importing arms, ammunition, 
or implements of war, but who. either for their 
own personal use or as forwarding agents for 



^ References are to paragraphs as set forth ia the 
pamphlet International Traffic in Arms (7th ed.). 



OCTOBER 4, 1941 



247 



persons who are engaged in this business, or, 
in exceptional circumstances, in other capaci- 
ties, may make or receive occasional shipments 
of such articles, will not be considered as ex- 
porters or importers of arms, ammunition, and 
implements of war within the meaning of sec- 
tion 12 of the joint resolution. Licenses for 
such shipments must, however, be obtained in 
accordance with the provisions of paragraph 
(24) below." 

Paragraph (13) has been amended to read 
as follows: 

"The Secretary of State will issue export 
licenses to all registered applicants who have 
duly filled out an application for license, unless 
the exportation of arms, ammunition, or im- 
plements of war for which a license is applied 
for would be in violation of a law of the United 
States or of a treaty to which the United States 
is a party, provided, however, that export li- 
censes shall not be issued in any case when 
it shall have been determined by the Executive 
Director of the Economic Defense Board, under 
the direction of the President, in accordance 
with the provisions of section 6 of the Act of 
Congress approved July 2, 1940, and Executive 
Order 8900 of September 15, 1941, that the pro- 
posed shipment would be contrary to the inter- 
est of the national defense." 

Paragraph (14) has been amended to read as 
follows : 

"Exjiort and import licenses are not trans- 
ferable and are subject to revocation without 
notice. If not revoked, licenses are valid for 1 
year from the date of issuance, and shipments 
thereunder may be made through any port of 
exit or entry in the United States. The nam- 
ing of the proposed port of exit under para- 
graph (3) of the application for export license 
or the proposed port of entry under paragraph 
(3) of the apjjlication for import license does 
not preclude shipment through another port if 
the arrangements made by the exporter or im- 



porter are altered subsequent to the issuance of 
the license." 

Paragraph (23) has been rescinded. 
Paragraph (27) has been amended to read as 
follows : 

"Arms and ammunition which enter or leave 
the United States on the person of an individual 
or in his baggage, and which are intended ex- 
clusively for the personal use of that individual 
for sporting or scientific purposes or for per- 
sonal protection, will not be considered as im- 
ported or exported within the meaning of sec- 
tion 12 of the joint resolution. The individual 
on whose person or in whose baggage the arms 
or ammunition or both are being carried must, 
however, declai'e the arms or ammunition or 
both to the collector of customs at the port of 
exit or entry and, before exit from the United 
States or entry into the United States is made, 
establish to the satisfaction of the collector that 
the arms or ammunition or both are in fact in- 
tended exclusively for the personal use of the 
individual in question for sporting or scientific 
purposes or for personal protection. No more 
than tliree arms and no more than 500 car- 
tridges shall in any case be carried from or into 
the United States by an individual under the 
provisions of this paragraph without an export 
or import license having been obtained." 

Paragraph (28) has been amended to read as 
follows : 

"Arms, ammunition, and implements of war 
intended for the official use of or consumption 
by an agent or agency of the Government of 
the United States, or which are to be used or 
consumed under the direction of such agent or 
agency of the Government, may be exported or 
imported without license when consigned to an 
agent or agency of the Government in the case 
of imports and when consigned by an agent or 
agency of the Government in the case of 
exports," 



419978—41—2 



248 DEPARTMENT OF STATE BULLETIN 

MONTHLY STATISTICS ON TRAFFIC IN ARMS, AMMUNITION, ETC. 



[Released to the press September 30] 

Note : The figures relating to arms, tlie licenses for the 
export of which were revoked before they weie used, have been 
subtracted from the figures appearing in the cumulative column 
of the table bv'low in regard to arms export licenses issued. 
These latter figures are therefore net figures. They are not 
yet final and definitive since licences may be amended or 
revoked at any time before being used. They are, however, 
accurate as of the date of this press release. 

The statistics of actual exports in these releases are 
believed to be substantially complete. It Is possible, how- 
ever, that some shipments are not included. If this proves 
to be the fact, statistics in regard to such shipments will be 
included in the cumulative figures in later releases. 

Arms-Export Licenses Isstted 

The table printed below indicates by category 
subdivision the value of the arms, ammunition, 
and implements of war licensed for export by 
the Secretary of State during the year 1941 up 
to and including the month of August : 



Category 



I (1)— - 
(2)— - 
(3)— - 
(4)— - 
(5).— 
(6).... 

II 

m (1).— 

(2).... 

rv (1).... 

(2)— - 

V (1).... 
(2).... 
(3)— - 

VI (1).... 
(2).- 

VII (1).... 
(2)— . 

Total 



Export licenses issued 



August 1941 



$1,620, 

5, 105, 

5,484, 

9,807, 

139, 

33,939, 

266, 

5S,391, 

12, 

346, 

386, 

899, 

16,184, 

123, 866, 

45, 

62, 

7,408, 

254, 



967. 36 
160. 34 
082.00 
179. 97 
828.06 
957. 70 
700.00 
930.00 
841.50 
765, 05 
580.79 
901.34 
398. 15 
886. 49 
106.00 
980.00 
177.00 
028.00 



261,212,468.74 



8 months ending 
August 31, 1941 



$29,231, 

39,919, 

43, 949, 

159,271, 

8, 348, 

111,318, 

6, 621, 

529,088, 

256, 

2, 816, 

4,241, 

7,228, 

78, 448, 

256, 156, 

46, 

72, 

33,478, 

5, 726, 



811. 06 
144.33 
303.70 
677. 72 
475. 73 
280.45 
447.92 
106.44 
661.93 
080.39 
859. 74 
914. 12 
681.06 
052. 35 
106.00 
965.60 
273.68 
396. 63 



1,316,218,138.65 



Arms Exported 

The table printed below indicates by category 
subdivision the value of arms, ammunition, and 
implements of war exported during the year 



1941 up to and including the month of August 
under export licenses issued by the Secretary 
of State: 



Category 



I (1) 

(2) 

(3) 

(4) 

(6) 

(6) 

II 

III (1) 

(2) 

IV (I) 

(2) 

V (1) 

(2) 

(3). 

^^ (2) 

VII (1) 

(2) 

Total 



Actual exports 



August 1941 



$307, 

2, 638, 

2,420, 

21,787, 

997, 

6, 366, 

lOG, 

27, 660, 

70, 

402, 

294, 

341, 

1, 870, 

5, 327, 

2, 

3,882, 



115.89 
470. 75 
392.00 
460.11 
530.00 
200.00 
500,00 
448.28 
174.00 
762. 10 
022. 09 
973. 78 
492. 26 
119.00 
031.00 
191.16 
824.00 



75, 355, 726. 42 



8 months ending 
August 31. 1941 



$2, 707, 

16, 792, 

14,731, 

64, 672, 

12,042, 

20, 704, 

1,691, 

215, 783, 

361, 

2, 333, 
2,992, 
8, 604, 

17, 038, 

59,119, 

9, 

15,364, 

3, 853, 



003.04 
222. 51 
199. 20 
363. 62 
034.00 
746.00 
007.00 
478. 32 
621. 24 
291.36 
382.94 
490.06 
701. 32 
063. 76 
801. 76 
341.49 
194.49 



468, 700, 942. 10 



Arms-Import Licenses Issued 

The table printed below indicates b}' category 
subdivision the value of the arms, ammunition, 
and implements of war licensed for import by 
the Secretary of State during the month of 
August 1941 : 



Category 



I (1) 
(2) 
(3) 
(4) 
(5) 

III (2) 

V (1) 
(2) 
(3) 

VII (1) 
(2) 



Value 



$937. 80 

21. 205. 00 

142, 332. 00 

347, 870. 50 

15,031.20 

1, 023. 00 

10, 000. 00 

170.00 

4, 030. 00 

24, 600. 00 

195, 300. 00 



Total 



$762, 499. 50 



OCTOBER 4, 1941 



249 



Categories of Arms, Ammunition, and 
Implements of War 

The categories of arms, ammunition, and im- 
plements of war in the appropriate column of 
the tables printed above are the categories into 
which those articles were divided in the Presi- 
dent's proclamation of May 1, 1937, enumerat- 
ing the articles which would be considered as 
arms, ammunition, and implements of war for 
the purposes of section 5 of the joint resolution 
of May 1, 1937 [see the Bulletin of July 12, 
1941, pages 33-35]. 

Special Statistics in Regard to Arms Exports 
TO Cuba 

In compliance with article II of the conven- 
tion between the United States and Cuba to 
suppress smuggling, signed at Habana March 
11, 1926, which reads in part as follows: 

"The High Contracting Parties agree that 
clearance of shipments of merchandise by 
water, air, or land, from any of the ports of 
either country to a port of entry of the other 
country, shall be denied when such shipment 
comprises articles the importation of which is 
prohibited or restricted in the country to which 
such shipment is destined, unless in this last 
case there has been a compliance with the 
requisites demanded by the laws of both 
countries." 

and in compliance with the laws of Cuba which 
restrict the importation of arms, ammunition, 
and implements of war of all kinds by re- 
quiring an import permit for each shipment, 
export licenses for shipments of arms, ammuni- 
tion, and implements of war to Cuba are re- 
quired for the articles enumerated below in 
addition to the articles enumerated in the 
President's proclamation of May 1, 1937: 

(1) Arms and small arms using ammunition 
of caliber .22 or less, other than those classed as 
toys. 



(2) Spare parts of arms and small arms of all 
kinds and calibers, other than those classed as 
toys, and of guns and machine guns. 

(3) Ammunition for the arms and small 
arms under (1) above. 

(4) Sabers, swords, and military machetes 
with cross-guard hilts. 

(5) Explosives as follows: explosive pow- 
ders of all kinds for all purposes ; nitrocellulose 
having a nitrogen content of 12 percent or less; 
diphenylamine; dynamite of all kinds; nitro- 
glycerine; alkaline nitrates (ammonium, potas- 
sium, and sodium nitrate) ; nitric acid; nitro- 
benzene (essence or oil of mirbane) ; sulphur; 
sulphuric acid; chlorate of potash; and 
acetones. 

(6) Tear gas (c„H=COCH=Cl) and other similar 
non-toxic gases and apparatus designed for the 
storage or projection of such gases. 

The table printed below indicates, in respect 
to licenses authorizing the exportation to Cuba 
of the articles and commodities listed in the pre- 
ceding paragraph, issued by the Secretary of 
State during August 1941, the number of 
licenses and the value of the articles and com- 
modities described in the licenses : 



Number of licenses 


Section 


Value 


Total 


20 


(1) 


$891 76 

186. 00 

4,010.00 

22,608.98 






(2) _- 






(3) 


• $27,696.73 




(5) . 











The table printed below indicates the value 
of the articles and commodities listed above ex- 
ported to Cuba during August 1941 imder 
licenses issued by the Secretary of State : 



Section 


Value 


Total 


(1) _ 


$1,156.00 

35.00 

6,115.00 

13, 392. 00 




(2) 




(3) _._. 


[ $20,698.00 


(5) 









250 



DEPARTMENT OF STATE BULLETIN 



Heltom 

The table printed below gives the essential 
information in regard to the licenses issued 
during the month of August 1941 authorizing 
the exportation of helium gas under the pro- 
visions of the act approved on September 1, 
1937, and the regulations issued pursuant 
thereto : 



Applicant for license 


Purchaser in 
foreign 
country 


Country 
of destina- 
tion 


Quan- 
tity in 
cubic 
feet 


Total 
value 


The Ohio Chemical & 


UngaryCom- 


Argentina 


730 


$67.50 


Manufacturing Co. 


paflla. 








Puritan Compressed 


Establecimien- 


Mexico..-. 


60 


15.60 


Gas Corp. 


tos Mexi- 
canos Col- 
liere, S.A. 








The Ohio Chemical & 


Luts, Ferran- 


Brazil 


SO 


6.60 


Manufacturing Co. 


do e Com- 
panhia. 









General 



REMARKS OF THE SECRETARY OF 
STATE ON HIS SEVENTIETH BIRTH- 
DAY 

[Released to the press October 2] 

The Secretary of State made the following 
remarks at his press conference on October 2, 
1941 in responding to the good wishes of the 
correspondents on the occasion of his seventieth 
birthday : 

"I cannot attempt to express the gratitude 
that I feel for this manifestation of your cour- 
tesy and for your unusual kindness. I have 
been in the Government service, either Federal 
or State, almost continuously for 49 years and I 
have never been associated with a more agree- 
able group than the members of the press who 
have worked with me here in rendering service 
to our country. 



"During that time, vast changes have occurred 
in our country and in the world. There have 
been periods when we have looked forward with 
hope to brighter conditions. There have been 
other periods when all ahead was darkness. I 
have had the satisfaction during my long asso- 
ciation with the Government service to have 
been somewhat within the so-called inner coun- 
cils of the Government most of the time. 

"One of the most important lessons that has 
occurred to me out of this long contact and 
experience has been that statesmen and peoples 
everywhere must recognize the strong responsi- 
bility which liberty imposes on those who 
enjoy it. They must stand for stable govern- 
ment, for the intelligent and unselfish appli- 
cation of tliose ideas and practices which make 
for peace, stability, and social advancement. 
They must have an equally strong determina- 
tion to avoid the pursuit of one-sided, artificial, 
self-defeating ideas and practices in national 
and international affairs. This requires sacri- 
fice. This terrific responsibility is not realized 
today either here or anywhere as it should and 
must be recognized. 

"Today we are living through a dark period. 
It is in times like this that each of us needs 
desperately to hold fast to the faith that is in 
us, a faith in the destiny of free men and the 
supreme worth of Christian morality. With 
that faith, we shall gladly meet the sacrifices 
demanded of us by the harshness of these days. 
With that faith, we cannot lose hope that the 
lesson which so many of us have learned as I 
have learned it, will be learned by all. 

"I am convinced that you liere who have 
shown during our long association such a fine 
spirit of good fellowship and comradeship will 
ever adhere more strongly to that faith which 
is in you, that belief in the destiny of free men 
everywhere. If all could cling to this belief as 
you gentlemen here have done, I believe that 
there would be a wholehearted disposition to 
make the sacrifices that devolve on those who 
love freedom." 



OCTOBER 4, 194 1 



251 



CONTRIBUTIONS FOR RELIEF IN 
BELLIGERENT COUNTRIES 

IReleased to the press Septenibei- 2'J) 

A tabulation of contributions collected and 
disbursed during- the period September 6, 1939 
through August 1941, is shown in the reports 
submitted by persons and organizations regis- 
tered with the Secretary of State for the solici- 
tation and collection of contributions to be used 
for relief in belligerent countries, in conformity 
with the regulations issued pursuant to section 
3(a) of the act of May 1, 1937 as made effective 
by the President's proclamations of September 
5, 8, and 10, 1939, and section 8 of the act of 



November 4, 1939 as made effective by the Presi- 
dent's proclamation of the same date, has been 
released by the Department of State in mimeo- 
graphed form and may be obtained from the 
Department upon request (press release of 
September 29, 1941, 55 pp.). 

This tabulation has reference only to contri- 
butions solicited and collected for relief in bel- 
ligerent countries (France; Germany; Poland; 
the United Kingdom, India, Australia, Canada, 
New Zealand, and the Union of South Africa; 
Norway; Belgium; Luxembourg; the Nether- 
lands; Italy; Greece; Yugoslavia; Hungary; 
and Bulgaria) or for the relief of refugees 
driven out of these countries by tJie present war. 



Cultural Relations 



AINIERICAN PUBLIC HEALTH ASSOCIATION CONFERENCE 



[Keloased to the press by the Office of the Coordinator of 
Inter-American Affairs October 3] 

Public-health directors from the American 
republics have been invited to attend the 
annual conference of the American Public 
Health Association at Atlantic City, N. J., Oct. 
14-17, 1941, as guests of the United States 
Government. 

Heads of the national departments of public 
health or their representatives from all 20 of 
the other American republics have indicated 
they will attend the conference. Their attend- 
ance at the conference was made possible 
through the cooperation of the Department of 
State, the Pan American Sanitary Bureau, and 
the Office of the Coordinator of Inter-Amer- 
ican Affairs. 

At the conclusion of the conference at 
Atlantic City, the visiting health officials will 
be taken, after a visit to Washington, on a 
tour of United States public-health and 
medical institutions by members of the Amer- 
ican Public Health Association and repre- 
sentatives of the Pan American Sanitary 
Bureau. The group will attend the Southern 



Medical Association meeting in St. Louis, Mo., 
November 8, and probably other similar 
meetings. 

The following persons have indicated ac- 
ceptance of the invitation to visit this country : 
Argentina 

Dr. Hugo D'Amato, Secretary of the National 
Department of Healtli 
Bolivia 

Dr. A. Ibanez Benavente, Minister of Public Health 
Brazil 

Dr. J. Barros Barreto, Director General of Public 
Health 
Chile 

Dr. Salvador AUende, Minister of Health and 

Social Welfare 
Dr. Alejandro Flores, Adviser to the Minister of 
Houlth and Social Welfare 
Colo7nhia 

Dr. Roberto Franco, Counselor of the Colombian 

Embassy in Washington 
Dr. J. A. Montoya, Member of the National 
Institute of Health, Bogota 
Costa Rica 

Dr. Mario Lujiin, Secretary of Public Health and 
Social Welfare 



252 



DEPARTMENT OF STATE BULLETIN 



Cuba 

Dr. Domingo Ramos, Minister of National Defense 
Dr. Sergio Garcfa-Marruz, Minister of Public 
Health 
Dominican RepuMio 
Dr. Wenceslao Medrano, Minister of Health and 
Social Welfare 
Ecuador 

Dr. J. A. Montalv5n, Assistant Director of Health 
El Salvador 

Dr. Victor Sutter, National Director of Health 
Guatemala 

Dr. C. Est<5vez, Director General of Public Health 
Haiti 

Dr. Rulx Le6n, former Under Secretary of Public 
Health 
no7iduras 

Dr. P. OrOoiJez Diaz, National Director of Public 
Health 
Mexico 

Dr. Mario Quiiiones, Secretary of the Department 

of Health 
Dr. A. de la Garca Brito, Director of the School 
of Public Health 
Nicaragua 
Dr. L. M. Debayle, National Director of Public 
Health 
Panama 

Dr. Carlos Brin, Ambassador of Panama in the 
United States 
Paraguay 

Dr. Rafll Peila, Director of Public Health 
Peru 

Dr. J. M. Estrella Ruiz, Director of Public Health 
07-uguati 
Dr. J. C. Mussio Fournler, Minister of Public 
Health 
Vencxiiela 

Dr. A. Castillo Plaza, Director of Public Health 



The Foreign Service 



PROMOTIONS 

Nominations for promotion in the Foreign 
Service of the officers listed on images 224 and 
225 of the Bulletin of September 20, 1941, were 
confirmed by the Senate on September 29. 

PERSONNEL CHANGES 

[Released to the press October 4] 

The following changes have occurred in the 
American Foreign Service since September 27, 
1941 : 



Career Oeficers 

Thomas D. Bowman, of Smithville, Mo., who 
has been serving as Consul General at Rome, 
Italy, has been assigned as Consul General at 
Johannesburg, Union of South Africa. 

James E. McKenna, of Boston, Mass., now 
serving in the Department of State, has been 
assigned as Consul at Ciudad Juarez, Mexico. 

Harry E. Carlson, of Joliet, 111., who has 
been serving as Consul at Vienna, Germany, 
has been designated First Secretary of Lega- 
tion and Consul at Helsinki, Finland, and will 
serve in dual capacity. 

Edwin Schoenrich, of Baltimore, Md., Sec- 
ond Secretary of Legation and Consul at 
Asuncion, Paraguay, has been assigned for 
duty in the Department of State. 

Paul C. Hutton, of Goldsboro, N. C, Consul 
at Mexico, D.F., Mexico, has been assigned for 
duty in the Department of State. 

Carmel Offie, of Portage, Pa., who is under 
assignment as Third Secretary of Embassy and 
Vice Consul at Bogota, Colombia, has been 
designated Third Secretary of Embassy near 
the Governments of Poland and Belgium, and 
Third Secretary of Legation near the Govern- 
ments of Norway, Netherlands, Czechoslovakia, 
and Yugoslavia now established in London, 
England. 

Norris S. Haselton, of West Orange, N. J., 
Vice Consul at Calcutta, India, has been desig- 
nated Secretary to the Commissioner of the 
United States of America at New Delhi, India. 

Lampton Berry, of Columbia, Miss., Vice 
Consul at Calcutta, India, has been designated 
Secretary to the Commissioner of the United 
States of America at New Delhi, India. 

Myles Standish, of New York, N. Y., now 
serving in the Department of State, has been 
assigned as Vice Consul at Karachi, India. 

Non-career Officers 

Ralph W. Johns, Jr., of Portland, Oreg., 
has been appointed Vice Consul at Cali, 
Colombia. 

Paul H. Demille, of El Paso, Tex., Vice Con- 
sul at Victoria, Canada, has been appointed 
Vice Consul at Regina, Canada. 



OCTOBER 4, 194 1 



253 



Eugene H. Johnson, of Black River Falls, 
Wis., Vice Consul at Regina, Canada, has been 
appointed Vice Consul at Victoria, Canada. 

John L. Calnan, of Worcester, Mass., who 
has been serving as Vice Consul at Belgrade, 
Yugoslavia, has been appointed Vice Consul 
at Nuevo Laredo, Mexico. 



Treaty Information 



Compiled in the Treaty Division 
HEALTH 

INTERNATIONAL AGBEEMENT RELATING TO 
STATISTICS OF CAUSES OF DEATH 

Egypt 

By a note dated September 25, 1941 the 
Charge d'Affaires of Great Britain at Washing- 
ton informed the Secretary of State that the 
Egyptian Government, in accordance with par- 
agraph 2 of the Protocol of Signature to the 
International Agreement Relating to Statistics 
of Causes of Death signed at London on June 
19, 1934 (Executive Agreement Series 80), has 
notified the British Government of the exten- 
sion of the agreement to the following districts : 

Province 
Qalyubiya 
Daqahliya 
Beheira 
Asyut 

The notification further states that the 
Health Lispectorate at El Kurdi, El Manzala 
District, Daqahliya Province, has been trans- 
ferred to Mit Asim, Dikirnic District in the 
same Province. 



Health 




Inspectoratr 


District 


Biltan 


Tukh 


El Sirw 


Fariskur 


Gabaris 


Ityia el Barud 


Sahel Sellm 


El Badari 



SOVEREIGNTY 

ACT OF HABANA AND THE CONVENTION ON THE PRO- 
VISIONAL ADMINISTRATION OF EUROPEAN COLONIES 
AND POSSESSIONS IN THE AMERICAS 

Colomhia 

The American Ambassador to Colombia re- 
ported in a despatch dated September 12, 1941 
that the Diario Oficial for September 4, 1941 
published Law No. 20 of August 30, 1941 
whereby the Government of Colombia approves 
the Act of Habana and the Convention on the 
Provisional Administration of European Col- 
onies and Possessions in the Americas, signed 
at the Second Meeting of the Ministers of For- 
eign Affairs of the American Republics at 
Habana, July 30, 1940. 



Publications 



Department of State 

Military Aviation Instructors : Agreement Between 
the United States of America and Argentina Renewing 
the Agreement of June 29, 1040— Effected by exchange 
of notes signed May 23 and June 3, 1941 ; effective 
June 29, 1941. Executive Agreement Series 211. Pub- 
lication 1636. 2 pp. 5^. 



Regulations 



Export Control Schedule No. 21 [including, effective 
October 1, 1941, the forms, conversions, and derivatives 
of paper (Proclamation 2506)]. 6 Federal Register 
5006. 



0. S. GOVERNMENT PRrNTING OFFlCEi 19*1 



For sale by the Superintendent of Documents. Washington, D. C. — Price 10 cents ----- Subscription price, $2.75 a year 

PUBLISHED WEEKLY WITH THE APPROVAL OF THE DIRECTOR OF THE BDREAD OF THE BUDGET 



"i^is^. in 30 



THE DEPARTMENT OF STATE 



BULL 



H 



1 rm 



Tin 



OCTOBER 11, 1941 
Vol. V, No. 120— Publication 1650 



C< 



ontents 




National Defense Page 
Arming of American-Flag Ships Engaged in Foreign 
Commerce: Message of the President to the Con- 
gress 257 

Mounting Need for Defense: Address by Assistant 

Secretary of State Berle 260 

Sinking of the S. S. I. C. White off the coast of Brazil . . 264 

Commercial Policy 

National Foreign Trade Convention: 

Message of the President 265 

Address by the Under Secretary of State 266 

Address by Raymond H. Geist 271 

Europe 

Assistance to the Soviet Union: Letter from the Presi- 
dent of the United States to the President of the 
Soviet of People's Commissars of the U. S. S. R . . . 276 

The Far East 

Repatriation of Americans in Japan 276 

American Republics 

Visit to the United States of Argentine Deputies . . . 276 

International Conferences, Commissions, Etc. 

Eighth Pan American Child Congress 277 

Fifth Congress of the Postal Union of the Americas and 

Spain 278 

[over] 



my 6 194J 







on ^G/ZiS— CONTINUED 



The Department Page 
Changes in organization of the Department: 

Board of Economic Operations . 278 

Special Assistant to the Under Secretary of State. . 279 

Division of Commercial Policy and Agreements . . 279 

Division of Exports and Defense Aid 279 

Division of Defense Materials 280 

Division of Studies and Statistics 280 

Division of World Trade Intelligence 280 

Foreign Funds and Financial Division 280 

Division of Controls abolished 281 

Special Assistant to the Secretary of State and Chief 

of the Special Division 281 

Caribbean OfiSce 281 

Liaison duties of Division of Current Information . . 282 

Office of the Geographer 282 

Appointment of officers 282 

The Foreign Service 

Foreign Service Auxiliary 283 

Personnel changes 284 

Treaty Information 
Flora and fauna: 

Conventions With Canada and Mexico Regarding 

Migratory Birds 285 

Convention on Nature Protection and WildUfe 

Preservation in the Western Hemisphere 285 

Indian affairs: Convention Providing for the Creation 

of an Inter-American Indian Institute 285 

Legal assistance: Protocol on Uniformity of Powers of 

Attorney Wliich Are To Be Utilized Abroad .... 285 
Mutual guaranties: 

Protocol Between Japan and France Regarding the 

Joint Defense of French Indo-China 286 

Postal: Universal Postal Convention of 1939 287 

Publicatons 287 

Legislation 288 

Regulations 288 



National Defense 



ARMING OF AMERICAN-FLAG SHIPS ENGAGED IN FOREIGN COMMERCE 



MESSAGE OF THE PRESIDENT TO THE CONGRESS 



[Released to the press by the White House October 9] 

The President sent the following message to 
Congress on October 9, 1941 : 

To THE Congress or the United States : 

It is obvious to all of us that world condi- 
tions have changed violently since the first 
American Neutrality Act of 1935. The Neu- 
trality Act of 1939 was passed at a time when 
the true magnitude of the Nazi attempt to 
dominate the world was visualized by few per- 
sons. AVe heard it said, indeed, that this new 
European war was not a real war, and that the 
contending armies would remain behind their 
impregnable fortifications and never really 
fight. In this atmosphere the Neutrality Act 
seemed reasonable. But so did the Maginot 
Line. 

Since then — in these past two tragic years — 
war has spread from continent to continent; 
very many nations have been conquered and 
enslaved; great cities have been laid in ruins; 
millions of luunan beings have been killed, sol- 
diers and sailors and civilians alike. Never 
before has such widespread devastation been 
visited upon God's earth and God's children. 

The pattern of the future — the future as 
Hitler seeks to shape it — is now as clear and 
as ominous as the headlines of today's 
newspapers. 

Through these years of war, we Americans 
have never been neutral in thought. We have 



never been indifferent to the fate of Hitler's 
victims. And, increasingly, we have become 
aware of the peril to ourselves, to our demo- 
cratic traditions and institutions, to our 
country, and to our hemisphere. 

We have known what victory for the aggres- 
sors would mean to us. Therefore, the Amer- 
ican people, through the Congress, have taken 
important and costly steps to give gi-eat aid to 
those nations actively fighting against Nazi- 
Fascist domination. 

We know that we could not defend ourselves 
in Long Island Sound or in San Francisco 
Bay. That would be too late. It is the Amer- 
ican policy to defend ourselves wherever such 
defense becomes necessary under the complex 
conditions of modern warfare. 

Therefore, it has become necessary that tliis 
Government should not be handicapped in car- 
rying out the clearly announced policy of 
the Congress and of the people. We must face 
the truth that the Neutrality Act requires a 
complete reconsideration in the light of known 
facts. 

The revisions which I suggest do not call for 
a declaration of war any more than the Lend- 
Lease Act called for a declaration of war. 
This is a matter of essential defense of Ameri- 
can rights. 

In the Neutrality Act are various crippling 
provisions. The repeal or modification of these 
provisions will not leave the United States any 

257 



420020 — 11- 



258 



DEPARTMENT OF STATE BULLETIN 



less neutral than we are today, but will make it 
possible for us to defend the Americas far more 
successfully, and to give aid far more effectively 
against the tremendous forces now marching 
towards conquest of the world. 

Under the Neutrality Act, we established cer- 
tain areas as zones of combat into which no 
American-flag sliips could proceed. Hitler pro- 
claimed certain far larger areas as zones of 
combat into which any neutral ship, regardless 
of its flag or the nature of its cargo, could pro- 
ceed only at its peril. We know now that Hitler 
recognizes no limitation on any zone of combat 
in any part of the seven seas. He has struck 
at our ships and at the lives of our sailors within 
the waters of the Western Hemisphere. De- 
termined as he is to gain domination of the 
entire world, he considers the entire world his 
own battlefield. 

Ships of the United States and of other 
American republics continue to be sunk, not 
only in the imaginary zone proclaimed by the 
Nazis in the North Atlantic, but also in the zone- 
less South Atlantic. 

I recommend the repeal of section 6 of the 
act of November 4, 1939, which prohibits the 
arming of American-flag ships engaged in 
foreign commerce. 

The practice of arming merchant ships for 
civilian defense is an old one. It has never 
been prohibited by international law. Until 
1937 it had never been prohibited by any statute 
of the United States. Through our whole his- 
tory American merchant vessels have been armed 
whenever it was considered necessary for their 
own defense. 

It is an imperative need now to equip Ameri- 
can merchant vessels with arms. We are faced 
not with the old type of pirates but with the 
modem pirates of the sea who travel beneath 
the surface or on the surface or in the air 
destroying defenseless ships without warning 
and without provision for the safety of the 
passengers and crews. 

Our merchant vessels are sailing the seas on 
missions connected with the defense of the 



United States. It is not just that the crews 
of these vessels should be denied the means of 
defending their lives and their ships. 

Although the arming of merchant vessels does 
not guarantee their safety, it most certainly 
adds to their safety. In the event of an attack 
by a raider they have a chance to keep the 
enemy at a distance until help comes. In the 
case of an attack by air, they have at least a 
chance to shoot down the enemy or keep the 
enemy at such height that it cannot make a sure 
hit. If it is a submarine, the armed merchant 
ship compels the submarine to use a torpedo 
while submerged — and many torpedoes thus 
fired miss their mark. The submarine can no 
longer rise to the surface within a few hundred 
yards and sink the merchant ship by gunfire 
at its leisure. 

Already we take many precautions against 
the danger of mines — and it seems somewhat 
incongruous that we have authority today to 
"degauss" our ships as a protection against 
mines, whereas we have no authority to arm 
them in protection against aircraft or raiders 
or submarines. 

Tlie arming of our ships is a matter of im- 
mediate necessity and extreme urgency. It is 
not more important than some other crippling 
provisions in the present act, but anxiety for 
the safety of our crews and of the almost price- 
less goods that are within the holds of our ships 
leads me to recommend tliat you, with all speed, 
strike the prohibition against arming our sliips 
from the statute books. 

There are other phases of the Neutrality Act 
to the correction of which I hope the Congress 
will give earnest and early attention. One of 
these provisions is of major importance. I be- 
lieve that it is essential to the proper defense of 
our country that we cease giving the definite 
assistance which we are now giving to the ag- 
gressors. For, in effect, we are inviting their 
control of the seas by keeping our ships out of 
the ports of our own friends. 

It is time for this country to stop playing into 
Hitler's hands, and to unshackle our own. 



OCTOBER 11, 1941 



259 



A vast mimber of ships are sliding into the 
water from American shipbuilding ways. We 
are lending them to the enemies of Hitlerism 
and they are carrying food and supplies and 
munitions to belligerent ports in order to with- 
stand Hitler's juggernaut. 

Most of the vital goods authorized by the 
Congress are being delivered. Yet many of 
them are being sunk; and as we approach full 
production requiring the use of more ships now 
being built it will be increasingly necessary to 
deliver American goods under the American 
flag. 

We cannot, and should not, depend on the 
strained resources of the exiled nations of Nor- 
way and Holland to deliver our goods, nor 
should we be forced to masquerade American- 
owned ships behind the flags of our sister repub- 
lics. 

I earnestly trust that the Congress will cari-y 
out the true intent of the Lend-Lease Act by 
making it possible for the United States to help 
to deliver the articles to those who are in a posi- 
tion effectively to use them. In other words, I 
ask for congressional action to implement con- 
gi'essional policy. Let us be consistent. 

I would not go back to the earlier days when 
private traders could gamble with American life 
and property in the hope of personal gain, and 
thereby embroil this country in so)ne incident 
in which the American public had no direct in- 
terest. But today, under the controls exercised 
by the Government, no ship and no cargo can 
leave the United States, save on an errand which 
has first been approved by governmental author- 
ity. And the test of that approval is whether 
the exportation will promote the defense of the 
United States. 

I cannot impress too strongly upon the Con- 
gress the seriousness of tlie military situation 
that confronts all of the nations that are com- 
bating Hitler. 

We would be blind to the realities if we did 
not recognize that Hitler is now determined to 



expend all the resources and all the mechanical 
force and manpower at his command to crush 
both Russia and Britain. He knows that he is 
racing against time. He has heard the rum- 
blings of revolt among the enslaved peoples — in- 
cluding the Germans and Italians. He fears 
the mounting force of American aid. He knows 
that the days in which he may achieve total 
victory are numbered. 

Therefore, it is our duty, as never before, to 
extend more and more assistance and ever more 
swiftly to Britain, to Russia, to all peoples and 
individuals fighting slavery. We must do this 
without fear or favor. The ultimate fate of the 
Western Hemisphere lies in the balance. 

I say to you solemnly that if Hitler's present 
military plans are brought to successful fulfil- 
ment, we Americans shall be forced to fight in 
defense of our own homes and our own freedom 
in a war as costly and as devastating as that 
which now rages on the Russian front. 

Hitler has offered a challenge which we as 
Americans cannot and will not tolerate. 

We will not let Hitler prescribe the waters 
of the world on which our ships may travel. 
The American flag is not going to be driven 
from the seas either by his submarines, his air- 
planes, or his threats. 

We cannot permit the affirmative defense of 
f)ur rights to be annulled and diluted by sec- 
tions of the Neutrality Act which have no 
realism in the light of unscrupulous ambition of 
madmen. 

We Americans have determined our course. 

We intend to maintain the security and the 
integrity and the honor of our country. 

We intend to maintain the policy of protect- 
ing the freedom of the seas against domination 
by any foreign power which has become crazed 
with a desire to control the world. We shall do 
so with all our strength and all our heart and 
all our mind. 

Feankun D Roosevelt 

The White House, 
October 9, 19^1. 



260 



DEPARTMENT OF STATE BULLETIN 

MOUNTING NEED FOR DEFENSE 
ADDRESS BY ASSISTANT SECRETARY OF STATE BERLE ' 



[Released to tlie press October C] 

Mr. Prfsident, Dean Da\7d, Gentlebien : 

As a former teacher of the Harvard Business 
School it is a joyous experience tonight to find 
that the men who were youths of promise 15 
years ago are today shouldering with success 
the heavy responsibilities of the present time. 

Fifteen years ago a lot of us were youngsters 
together — some as teachers, others as students — 
in the little house which was named in honor of 
that great veteran, Carter Glass. These young- 
sters — students and teachers alike — kept trying 
to think forward, to see beyond the era of crazy 
finance which began in 1922 and which smashed 
so disastrously in 1929. Some, with brave eyes, 
insisted that a thorougli change in outlook was 
essential to American business, that America's 
economic life was not as well organized as it 
should be, and that stock-exchange quotations 
were no index of the economic welfare of the 
United States. 

Also, at that time, there was a very small 
group of men in the Business School who turned 
their minds to a subject then very unpopular. 
This was the role of business in American de- 
fense. Certain of the gioup, fresh from studies 
in Europe, foresaw the coming of a world catas- 
trophe. A professor at the Harvard Business 
School came back after surveying the plans 
made by a number of gieat American businesses 
to take part in defense work, as we looked at it 
through the eyes of 1927. The demonstration 
was intended to be impressive, but he was not 
impressed at all. 

Partly as a result, the War Department in 
1934, under the impetus of my friend Louis 
Johnson, then Assistant Secretary of War, went 
to work to explore anew the whole subject of 
business and defense. New weapons were 



' Delivered to the Harvard Graduate School of Busi- 
ness Administration, at the Harvard Club, New YoiU, 
N. Y., October C, 1041. 



studied. Test orders for the products needed 
were placed so that plants could be prepared 
to manufacture the goods which would be 
needed. It takes more than a set of blue prints 
and speeches to do an elective production job; 
you have to have what the production men call 
the "know-how" as well. Largely due to that 
we were in shape to take up, a year and a half 
ago, the titanic job of equipping this country 
wnth modern arms for itself, and we had at 
least a running start on the work of doubling 
and redoubling that again as the country gradu- 
ally became the world arsenal of democracy. 

My task tonight is to tell you that the job 
of equipping this country and those other na- 
tions who, like ourselves, oppose the Hitler 
scheme of world-domination, is even greater 
than we have yet conceived. 

The Hitler government from 1933 on set to 
work to create a military machine capable of 
defeating not only any nation in Europe but 
any possible combination of nations in the 
entire world. 

Basic in their idea was the accumulation 
of a huge supply of munitions and a plant 
capable of turning out still more munitions, and 
to put that plant and that supply so far ahead 
of any other possible group that no nation or 
combination of nations could catch up. Hitler 
himself was quite frank about it a few days 
ago. 'I know", he said, "that there is now no 
adversary who cannot be forced to yield by 
a valuable mass of munitions." To the German 
capacity in this regard he proposed to add all 
of the plants of Europe so far as he was able, 
to dominate them by force, or finance, or cajol- 
ery. The description he gave on October 3 
of the Russian preparations, whose strength 
surprised him, might better have been applied to 
Germany itself: "It is a single armament fac- 
tory against Europe at the expense of the stand- 
ards of living of the people." 



OCTOBER 11, 1941 



261 



On the business side, Hitler's plan had the 
merit of simplicity. He did not socialize the 
factories. Instead he socialized the manage- 
ment itself. You know how it was done. Some 
men were flattered, some bribed. Others were 
coerced or intimidated by the familiar use of 
the Gestapo. All businessmen were constantly 
spied upon. 

Promises were made which were certainly 
alluring. It was pointed out that the German 
plants would make a sure profit, since the gov- 
ernment would enforce supplies of materials 
and labor and would guarantee a fixed price 
showing a very respectable surplus. This 
sounded at first like a businessman's dream of 
paradise, a place where you knew you could 
get your labor and materials and where a profit- 
able market was guaranteed for your goods. 
Only later did the deadly truth come out : your 
profit was no use to you when you had it ; you 
could not spend it or work with it; you could 
not create anything; you could devote no part 
of it to the constructive work which is the real 
reward of a businessman's task. 

Even worse, it presently developed that this 
was not merely a temporary effort to defend 
Germany but was to be a permanent pattern of 
life. Never was the businessman to get out of 
the vise in which he now was ; never could he 
once more use his talent freely and without re- 
striction. Ultimately he was forced to recog- 
nize that his real masters were the local Gestapo 
headquarters and Nazi politicians who, by the 
way, were acquiring corrupt fortunes on the 
way. 

This quality of corruption is worth a word, 
because the Nazi propagandists habitually ac- 
cuse the democratic countries of being venal. 
Every fragment of information which has 
reached me shows the growing stream of cor- 
ruption which has entered into the Nazi-con- 
trolled life in Germany. The little politicians 
have minor licenses to loot — the loot of Jewish 
victims or other refugees. The great politi- 
cians have their cut in practically every busi- 
ness within the conquered area; these, as well 
as a part of these so-called guaranteed profits 



of German businessmen, roll in to swell the 
huge fortunes of Nazi leaders. Nothing is too 
small to escape attention. Shops in conquered 
Paris have been asked to accept a German part- 
ner and later to hand over their names, their 
reputations, and their future into the hands of 
a military conquei'or. 

Eventually, of course, this crookedness will 
destroy the German machine and everything in 
it. But it behooves us to use every effort lest 
it destroy the world — and ourselves with it — 
before it finally crashes. 

We in the United States have gone through 
a natural series of emotions. This country, 
being rational, has no yearning for war. It 
naturally watched with interest every operation 
which looked as though it might bring lasting 
peace. When in 1939 the last hope of peace 
vanished as the German leaders invaded Poland, 
it had indulged a sneaking hope that the course 
of war might let us out. Finally, the grim mo- 
ment in June 1940, when it was realized that 
the defenses of AVestern Europe had finally 
ceased to exist, convinced this country that it 
was squarely on the firing line. 

It will be recalled that Secretary Hull had 
repeatedly pointed out that the forces in motion 
must necessarily attack our own structure, that 
as far back as the Italian war against Ethiopia 
he had urged the country to take account of 
the ever-growing danger. But it was not until 
Dunkirk and the fall of Paris that the public 
fully realized the peril. Only then did we 
really begin to defend ourselves as we needed 
to be defended. Only then did we realize that 
in modern warfare of long-range aircraft, of 
far-reaching submarines, and of swift trans- 
ports were the outer waters as important to us 
as our own coastlines. It was then that this 
country began to think for the first time as 
European nations have had to think for cen- 
turies — "of our own interests in other peoples' 
countries". At that time we realized that aid 
to Britain was not merely a charitable act to a 
friend but an active necessity if the Atlantic 
was not to swarm with foreign transports, 



.262 



DEPARTMENT OF STATE BTTLLETIN 



guarded by hostile warships and carrying air- 
craft which might at any time be turned against 
us. 

At that time, too, the country learned the 
geographic implications of the Northern At- 
lantic Bridge, the relatively easy air-hop from 
German-conquered Norway to Iceland, from 
Iceland to Greenland, and from Greenland to 
Canada. Unless the outer gates were held, 
here was an easy route for a raiding expedition. 

And we then began to realize also the exist- 
ence of the Southern Atlantic Narrows, the 
short sea line from Dakar to the coast of Brazil. 
Then, also, the country began to take notice of 
other facts to which it had resolutely closed its 
eyes : the ceaseless German intrigues, plots, and 
preparations for the domination of so much of 
S uith America as it could get in its grip ; and 
the incipient organizations of groups for sabo- 
tage and political subversion of the United 
States itself. 

Taken alone, a group of Nazi conspirators in 
Argentina or Brazil or Colombia did not seem 
very formidable. Taken by themselves, a group 
of German-American Bundists and a nest of un- 
dercover spies were a little ridiculous to the 
United States. But if these groups were ever 
hitched up to effective German sea and air forces 
loose in the Atlantic and capable of shoving 
their way into the New World, the situation im- 
mediately changes. We could laugh at the Ger- 
man espionage when it compiled lists of Amer- 
icans to be rewarded or punished by a German 
conqueror as long as the British line held and 
the British-American fleet maintained control 
of the Atlantic and the British Air Force con- 
trolled the German Luftwaffe. But if these de- 
fenses ever failed, then these lists might sud- 
denly become serious. 

At this point a main offensive, aimed at 
American business, was made by direct orders of 
the Nazi Government. The attack was double- 
headed. The air was filled with assurances 
that the Hitler government had not the remotest 
thought of touching the New World. (This was 
not, of course, what the Nazis were saying to 
their own comrades but they took pains to keep 



the propaganda separate.) Wnaat they were 
saying in Eui-ope was that they proposed to use 
the complete economic force of Europe to bring 
into subjection the South American countries. 
They would buy at their own prices and sell at 
their own prices, and then only to American 
governments which were sympathetic. But to 
the United States they said, "We have no de- 
signs on the New World." To us in the State 
Department every day brought fresh informa- 
tion of a new Nazi organization in South Amer- 
ica aimed at this port or that air lane, and re- 
ports in which German agents in South Ameri- 
can capitals claimed to be "gauleiters" as soon as 
Nazi domination was comjilete. Actually, in 
June 1940. a German attempt was made to seize 
military control of Uruguay. Tliis was the so- 
called Fuhrmann Plan, and it was blocked only 
by the promptest action by the Goverimient of 
Uruguay, with the wholehearted support of all 
the American republics. To us, therefore, these 
assurances that tlie New AVorld M'as "safe" mere- 
ly looked like familiar Hitler promises to his 
next victim. AVe were convinced that the prom- 
ises were only designed to lull the victim to sleep 
until the snake was ready to strike. 

At the same time, the other part of the Nazi 
program went forward. It was aimed even more 
directly at businessmen. Agents, plausible and 
often highly placed, appeared in New York, San 
Francisco, and other cities. They explained 
how easy it was to do business with Hitler. They 
ex'ollcd the glories of the German system of 
guaranteed profits. Steadily and insidiously 
they endeavored to work on the emotions and 
hopes of American business. Again, we in the 
State Department thought we recognized the 
process. There had been a man in Paris just 
before the war broke out whose job was the same. 
His name was Abetz, and his co-workers were 
the familiar agents who endeavored to persuade 
French businessmen that there was no real rea- 
son to get into a sweat about German plans of 
domination. They used a word we now know 
very well : the word "collaboration". The Nazi 
macliine was to work quietly and comfortably 
with French business. A little later, when the 



OCTOBER 11, 1941 



263 



full force of the blow was felt by France, the 
"collaboration" idea was put into force. A bril- 
liant Frenchman described it recently as "col- 
laboration of the behind with tlie boot". 

You may be interested in a Nazi decree which 
is law in Germany and which was issued in May 
1940. It provides that anyone anywhere who 
interferes with German plans is guilty of a crime 
and can be pimished whenever German power 
lays hold of him. I have the text of the decree. 
It means, quite literally, that if you or I, as 
Americans, in America, fail to act in the German 
interest we are considered guilty of a "crime" 
in Germany, and if any German power can ever 
lay hold of us. we shall go through the familiar 
Gestapo process which includes imprisonment, 
torture, or death. But that was not told in 
America, and the slow insidious process went on. 

This "business oiTensive" of 1941 failed to 
reach its mark. There were, and still are, 
some who saw only the velvet glove and did 
not see the mailed fist inside it. But step 
by step American business has increasingly 
learned that the way to judge a foreign rep- 
resentative is not to listen to what he says 
but to watch what his masters are doing. I 
believe tliat we are fairly out of the danger 
that this kind of jiropaganda will seriously 
affect us. We cannot, it is true, make up for 
the fact that while this process was going on 
the German industrial espionage took careful 
notes of practically every American plant and 
of practically all significant American proc- 
esses, and even used such business influence 
as it had through patents or finance to limit 
American production of certain important 
materials. But, save in a very few cases, 
American business has shaken off the attempt 
to fascinate us with fool's gold which was 
promised from trading with a conqueror- 
master. 

Now, in 1941, a second attempt is being 
made. Not very long ago we had in the State 
Department the interesting experience of 
learning of some of the instructions sent out 
from Berlin to some of their foreign propa- 
ganda services. The information I believe to 



be reliable. Instructions were given not to 
antagonize the American people but rather to 
try to undermine the faith of the American 
public in its government. Specifically, a howl 
was to be raised that President Roosevelt was 
attempting to become a dictator, that he would 
impose on America the Ivind of dictatorship 
that Hitler had imposed in Germany. Know- 
ing the extreme unpopularity of Hitler's kind 
of government in America, someone had ap- 
parently the brilliant thought of setting the 
propaganda machinery to work at persuading 
gullible Americans that President Roosevelt 
was iibout to travel the same path. There was 
the usual suggestion that this dictatorship 
would be a dictatorship of Jews. 

I think this probably is the greatest mistake 
the Nazi propagandists have made here. You 
readily see why. They are judging America 
by themselves. It is quite in line with the 
degenerate political thinking of the Nazis that 
every situation should be exploited for the 
political benefit of those who might wish to 
seize power. 

Since this Avas the most familiar of Nazi 
tricks in Europe I myself was merely surprised 
that it had not been tried earlier. It is a 
matter of coincidence that somewhat later we 
were favored by two speeches from Mr. Lind- 
bergh. One of them asserted that Mr. Roose- 
velt, assisted by a Jewish clique, was plunging 
us into war, although any sane person could 
see that the war was, in fact, plunging toward 
us. The second speech insinuated that the 
President would call off the congressional elec- 
tions of 1942 and thereby make himself dic- 
tator. Naturally, no evidence was offered of 
this amazing yarn. 

However sincere the motives of Mr. Lind- 
bergh may have been, I think you will agree 
with me that he is following the exact line 
which has been laid down in Berlin for the 
use of Nazi propagandists in the LTnited States. 
This illustrates the danger of betraying one 
of the most precious heritages of a free peo- 
ple — freedom of speech — by irresponsible 
statements. 



420920 — 41- 



264 



DEPARTMENT OF STATE BULLETIN 



So I think the second offensive against pro- 
duction has failed. The underlying faith of 
American business in its government remains 
unimpaired. This Government can, and does, 
make mistakes and plenty of them. But so 
long as American institutions remain, those 
mistakes will be rectified and gradual injustices 
cleared away. 

We now face a crucial phase in the present 
struggle. The British resistance of 1940 gave 
us a full year to prepare. The conflict between 
Germany and Russia in 1941 has given us a 
second year. Just as we moved swiftly to re- 
plenish the resources of Britain, we must move 
with equal swiftness to replenish the resources 
of Russia. We need not be confused by the 
issue of Communism in the United States. We 
are quite capable of taking care of that our- 
selves. Today, whoever resists the movement 
toward world-conquest on land or sea or in the 
air is assisting American defense. We must 
not, and we will not, allow these defenses to 
fail. 

Reduced to business terms, if our own de- 
fense effort is to be successful, we must now 
accept a major part in supplying all fronts 
where the forces of aggression are being coura- 
geously resisted. Much as we have done al- 
ready, it is still not enough. 

Nor can we be frightened or confused by the 
obvious fact that no human being in govern- 
ment, in business, or elsewhere, can foresee the 
final implications of this world struggle. We 
shall have problems to meet after this is over 
as we have had problems to meet before. Tlie 
issue for us is that the solution of our problems 
shall lie in our own hands and not in the hands 
of some world-master. I think none of us here 
expect to reach the millenimn in our lifetime. 
Perhaps it is as well that we do not. 

What we can insure for ourselves and those 
who come after us is the freedom to meet the 
issues of their lives as we have had freedom to 
meet the problems of ours; to give to our gen- 
eration and its successors a firm position from 
which they, in their turn, may work once more 
toward a world built on the conception of 
honor and morality and love. 



SINKING OF THE S.S. "I. C. WHITE" OFF 
THE COAST OF BRAZIL 

[Released to the press October 7] 

Mr. John Farr Simmons, Counselor of the 
Embassy at Rio de Janeiro, Brazil, informed the 
Department by telephone that he had inter- 
viewed survivors of the tanker /. C. White, 
which was torpedoed on September 27 off the 
north coast of Brazil, and had been informed as 
follows : 

'"Tlie Del Norte docked with 17 survivors of 
the tanker /. C, White, including Captain Mello, 
Third Mate Holm, and Chief Engineer Chris- 
tensen. A summai'y of their testimony follows : 

"The /. C. White sailed from Cura(.'ao Septem- 
ber 14 for Capetown. While steering 127° true, 
speed 10.2, navigation lights burning, two spot- 
lights on Panamanian flag at flagstaff, paint- 
ing on sides not illuminated, moonlight night 
but partly cloudy, sea moderate to rough, posi- 
tion at 0210GCT (9: 10 p.m., E.S.T., September 
27). 10°26' S., 27°30'30" W., ship was struck by 
a torpedo, apparently from a submarine, with- 
out warning, on starboard side between nos. 7 
and 8 tanks, the ship buckling at this point. 
The hull plating was opened on both sides; the 
walkway was carried away severing communi- 
cation forward and aft; whole afterhouse set 
afire. Three of four boats and two of three 
rafts were launched. One raft launched was 
not used. Wooden boats aft burned. Rudder 
jammed and throttles stuck — full speed ahead. 
Ship circled, making embarkation difficult; one 
boat holed by striking ship's side. Two of miss- 
ing men lowered boat and slid down falls, but 
as boat had drifted they fell into wake current 
and were not seen. The third lost man, Rankin, 
started forward with two others, turned back 
and was last seen on poop. His companions on 
raft which they launched forward think they 
heard his voice in water as they passed stern but 
could not see or reach him. Majority report 
seeing two low, white lights diagonally placed 
with a dark shape, impossible to identify, about 
one-half mile distant. This disappeared below 
after a short time. 



OCTOBER 11, 1941 



265 



"The boats remained near the ship, which sank 
at 0545GCT. At daylight boats assembled and 
picked up two men from rafts and abandoned 
stove-in boat, dividing survivors in two boats 
with 17 each, one with the captain and one with 
the chief mate; proceeded under sail and later 
outboard motor for Pernambuco. Both boats 
well stocked with provisions and water. The 
captaiji's boat outsailed the other and lost sight 
after the first day. The captain's boat sighted 
another steamship the night of the rescue but 
was too far away to be sighted. Picked up by 



Del Norte at 2018GCT October 4 (3:18 p.m., 
E.S.T.), 10°16' S., 35°20' W. No serious inju- 
ries among survivors on Del Norte. 

"The captain's deposition includes the follow- 
ing: 'My vessel was completely unarmed, hav- 
ing no guns or ammunition of any type on 
board'. 

"The second rescue vessel, the Went Nilus, 
with 17 survivors is due at Rio this afternoon. 

"A further report will follow thereafter." 



Commercial Policy 



NATIONAL FOREIGN TRADE CONVENTION 



MESSAGE OF THE PRESIDENT ' 



[Released to the press October 8] 

In extending my cordial greetings to the 
Twenty-eighth National Foreign Ti'ade Con- 
vention, I wish to take this opportunity to 
congratulate the National Foreign Trade Coun- 
cil on the splendid work it has done, during 
more than a quarter of a century, toward the 
promotion and improvement of the foreign 
commerce of the United States. 

Today, as always, the movement of goods 
across the national frontiers is a vital phase 
of the task of enhancing the material well- 
being of individuals and nations everywhere. 
The very difficulties created by war conditions 
for an orderly functioning of the trade process 
furnish striking evidence of the significance 
of international commerce for the economic 
life of nations. 

Our nation is now engaged upon a gigantic 
undertaking in the field of national defense. 
The rise in the world of ruthless forces of un- 



' Delivered on his behalf by the Honorable Sumner 
Welles, Under Secretary of State, at New York, N. Y., 
October 7, 1941. 



bridled aggression and the menace which this 
movement of world conquest presents to the 
safety of our country and of our hemisphere, 
have rendered the performance of our present 
vast task a paramount duty for all of us — for 
those of us who are primarily engaged in eco- 
nomic activity at home and for those of us 
who labor in the field of foreign commerce. I 
am sure that in the deliberations of your con- 
vention you will explore, fully and earnestly, 
the ways in which you, as foreign traders, may 
best contribute to the success of our national- 
defense program. 

But in your case, as in the case of all of us, 
thinking and effort cannot stop there. We must 
all be concerned, not alone with overcoming the 
dangers which confront us now, but also with 
making sure that, when those dangers are over, 
we shall all make our best contribution toward 
building a world in which they will not recur. 
In that connection, the character of interna- 
tional-trade relations which will become es- 
tablished in the post-war world will be of the 
utmost importance. 



266 



DEPARTMENT OF STATE BULLETIN 



We must make sure that no effort will be 
spared to place international commerce on a 
basis of fair dealing, equality of treatment, and 
mutual benefit. In no other way can it serve 
the function of promoting, rather than retard- 
ing, peaceful relations among nations and the 
economic well-being of all. 



For the past eight years this country sought 
vigorously to promote this type of interna- 
tional commercial relations. We are deter- 
mined to continue and increase our efforts in 
that direction. In this respect, too, I am certain 
that your deliberations can usefully contribute 
toward finding the ways of attaining this all- 
important objective. 



ADDRESS BY THE UNDER SECRETARY OF STATE i 



[Released to the press October S] 

I deeply appreciate the opportunity tonight 
of being the guest of the National Foreign 
Trade Council, and of being permitted in this 
personal way to express my ever-increasing 
recognition of the public-spirited and invalu- 
able service which lias been rendered the people 
of the Ignited States by the Council during 
these past years. I know of no comparable 
organization which has made a more outstand- 
ing contribution. It has throughout its exist- 
ence, as was right and fitting, jealously main- 
tained its character of complete independence 
as a private body, but it has, nevertheless, never 
failed to cooperate along helpful and comple- 
mentary lines witli the Government in those 
fields of endeavor in which the Council was 
primarily interested. 

I think I can say with full assurance that, 
in the increasing gravitj' of the situation in 
which our country finds itself, the Government 
will have to depend ever more fully upon the 
constructive assistance which the Council can 
so ably render. 

Those in attendance at this Twenty-eighth 
National Foreign Trade Convention are di- 
rectly interested in foreign trade. But every 
citizen of the United States, while perhaps in- 
dividually only indirectly concerned, is never- 
theless vitally affected by our foreign 



' Delivered by Mr. Welles at the world-trade dinner 
of the Twenty-eighth National Foreign Trade Conven- 
tion, New Tork, N. Y., October 7, 1941. 



commei'ce. The prosperity of our country, the 
level of emploj'ment, the best interests of labor 
and of the consumer, and the living standards 
of our people depend to a very great extent 
upon the condition of our foreign trade. 

We are all of us concerned even more deeply 
because the creation of conditions favorable to 
peaceful and profitable trade between nations 
is one of the cornerstones of the enduring peace 
which we so earnestly hope may be constructed 
in the place of the social wreckage and economic 
ruin which will inevitably result from the 
present war. 

A very brilliant English statesman who died 
prematurely a few years ago once said, "It is 
to be specially noticed that there have never- 
theless almost always existed men who sincerely, 
but very foolishly believed, firstly, that no war 
would arise in their own day, and, secondly 
(when that war did arise), that for some rea- 
son or other it would be the last. At this point 
the idealist degenerates into the pacifist ; and it 
is at this point consequently that he becomes a 
danger to the communitj' of which he is a 
citizen." 

I cannot resign myself to that admission of 
human incapacity — I cannot concede the in- 
ability of man to shape his destiny, under divine 
guidance, into something better than the kind 
of world in which we now live — I cannot be- 
lieve that a world society of order, of security, 
and of peace, may not be realized, provided those 
responsible for its planning are willing to make 
the sacrifices required and are able to construct 



OCTOBER 11, 1941 



267 



its foundations upon the rock of right, of jus- 
tice, and of scientific truth, rather than upon 
the sands of selfishness, of compromise, and of 
expediency. 

It is not idealism that is the danger to the 
community. Grave danger does lie in the all- 
too-frequent unwillingness of the idealist to 
grasp the hard facts of national and intei-na- 
tional experience; but it lies equally in my judg- 
ment in the defeatist philosophy of the cynic 
who, because of the failures of the past, cannot 
envision the successes of the futui'e. 

It will help us to keep our perspective if, 
from the vantage point of the present, we fre- 
quently look back over the list of errors of 
omission and of commission of the past. 

Let me make a few brief statements with re- 
gard to recent history, which, I hope you will 
feel, as I do, should be regarded as axiomatic. 

Trade — the exchange of goods — is inherently 
a matter of cooperation, but a glance at the 
past is enough to show that in the policies of 
nations this simple truism has been more often 
ignored than observed. Nations have more 
often than not undertaken economic discrimina- 
tions and raised up trade barriers with complete 
disregard for the damaging effects on the trade 
and livelihood of other peoples, and, ironically 
enough, with similar disregard for the harmful 
resultant effects upon their own export trade. 
They have considered foreign trade a cut-throat 
game in which each participant could only 
profit by taking undue advantage of his neigh- 
bor. Our own policy at times in the past has, 
as we all know, constituted no exception. 

After the last war, at a time when other coun- 
tries were looking to us for help in their stu- 
pendous task of economic and social reconstruc- 
tion, the United States, suddenly become the 
world's greatest creditor nation and incompar- 
ably strong economically, struck heavy blows at 
their war-weakened, debt-burdened, economic 
structures. The shock was heavy, morally as 
well as economically. The harmful effects of 
this policy on the trade, industry, and condi- 
tions of living of people of many other foreign 
countries were immediate. Our high-tariff 



policy reached out to virtually every corner 
of the earth and brought poverty and despair 
to innumerable communities. 

But the effects on American importers, and 
on American industries dependent upon im- 
ports, were likewise immediate. 

Unfortunately, the inevitable effects on our 
export trade were obscured and put off for a 
number of years by lavish foreign lending, both 
public and private. The most important nor- 
mal source of foreign purchasing power for 
American exports — other countries' exports to 
us — was being dried up, but what was really 
happening, as we all know, was that countless 
American investors were in effect paying Ameri- 
can exporters for billions of dollars' worth of 
goods sent abroad. If the deficiency in normal 
foreign jiurchasing power derived from sales in 
this country had not been covered up by such 
vast sums advanced by American investors, we 
might have realized much earlier that our tariff 
policy was striking at the very roots of our 
entire export trade. We might have avoided 
the colossal blunder of 1930 and the less serious, 
but equally misguided action, of further tariff 
increases under the guise of the so-called excise 
taxes in 1932. Many foreign countries, which 
had not recovered from the shock of our tariff 
increases in 1921 and 1922 and were tottering on 
the brink of economic and financial collapse, 
were literally pushed into the abyss by our tariff 
action of 1930. Throughout the world this 
withering blast of trade destruction brought 
disaster and despair to countless people. 

The resultant misery, bewildei'ment, and re- 
sentment, together with other equally pernicious 
cf>ntributing causes, paved the way for the rise 
of those very dictatorships which have plunged 
almost the entire world into war. 

When human beings see ahead of them noth- 
ing but a continuation of the distress of the 
present, they are not apt to analyze dispassion- 
ately the worth of the glittering assurance of 
better times held out to them by a self-styled 
leader whom they would under more normal 
circumstances recognize as the shoddy adven- 
turer which in reality he proves to be. 



268 



DEPARTMENT OF STATE BULLETIN 



We thus helped to set in motion a whirlpool 
of trade-restricting measures and devices, pref- 
erences, and discriminations, -which quickly 
sucked world trade down to such low levels that 
standards of living everywhere were danger- 
ously reduced. Faced with the disappearance 
of markets in the United States for so many of 
their exportable products, foreign countries 
were forced to cut their economic cloth accord- 
ingly. They erected high tariffs and est,ab- 
lished restrictive quotas designed to keep their 
imports of American products within the limits 
of their reduced dollar purchasing power. 
They sought desperately for other markets and 
other sources of supply. In the process they 
entered into all sorts of preferential arrange- 
ments, resorted to primitive barter, and adopted 
narrowly bilateralistic trade-and-payments ar- 
rangements. 

Obviously the totalitarian governments then 
being set up seized avidly on the opportunity 
so afforded to undertake political pressures 
through the exercise of this form of commercial 
policy. 

They substituted coercion for negotiation — 
"persuaded", with a blackjack. The countries 
thus victimized were forced to spend the pro- 
ceeds of their exports in the countries where 
such proceeds were blocked, no matter how infe- 
rior the quairty, how high the price, or even 
what the nature might be of the goods which 
they were thus forced to obtain. They were pre- 
vented by such arrangements from entering into 
beneficial trade agi'eements with countries un- 
willing to sanction discriminations against their 
exports. By no means the least of the victims 
were the exporters of third countries, including 
the United States, who were either shut out of 
foreign markets entirely or else only permitted 
to participate on unequal terms. 

This time our own export trade, unsupported 
by foreign lending on the part of American 
investors and unprotected against countless 
new trade barriers and discriminations, was 
immediately disastrously affected. Belatedly 
we recognized our mistake. We realized that 



something had to be done to save our export 
trade from complete destruction. 

The enactment in 1934 of the Trade Agree- 
ments Act represented a new deal for our for- 
eign trade ; a reorientation of government policy 
on the basis of simple, obvious facts, one of the 
most simple and obvious being that a nation 
cannot continue to sell if it does not buy. I 
do not need to dwell on this phase. You who 
are meeting here have recognized in repeated 
resolutions of endorsement the merits of that 
policy and the simple truths upon which it is 
founded. 

To that policy history will always attach the 
honored name of Coi'dell Hull. But time is 
required for such a reversal of policy to have 
its full effects, and in the meantime another 
shattering world war has again laid the whole 
international economic structure in ruins, and 
has enormously increased the task of recon- 
struction. 

So much for the past. 

For the people of this country the supreme 
objective of the present before which every 
other consideration must now give place is the 
final and complete defeat of Hitlerism. 

^Ve haA'e been forced in self-defense to assure 
ourselves that the ever-growing menace to our 
free institutions and to our national safety 
cannot and shall not prevail. 

For that reason the trade problems of the 
immediate moment have largely become prob- 
lems arising out of our national emergency. 
As such their solution is imperative. You who 
are living daily with these problems before you 
are the last people who need to be told in any 
detail what they are. The function of foreign 
trade under present conditions is largely one of 
supplying the defenders of human liberty with 
the means of their defense, and of obtaining, 
despite the shortage of shipping, the materials 
needed in carrying out our own defense pro- 
gram and in supplying the needs of our con- 
sumers. 

There is likewise the acute problem of the 
essential import needs of our sister republics 



OCTOBER 11, 1941 

of this hemisphere which are largely cut off 
from European sources of supply. Far too 
little emphasis, I regret to say, has as yet been 
placed upon the vital obligation of this country 
to cooperate to a far greater practical extent 
than has as yet been the case in assisting to the 
fullest degree possible our neighbors of the 
Western Hemisphere in the maintenance of 
their own national economies in the ever- 
increasing dislocation to which they are 
subjected. 

There is also need for additional trade 
agreements which will help during the emer- 
gency and which will assist in establishing a 
sound foundation for international trade after 
the war. Your Government intends to go 
forward with this program. 

But the future no less than the present 
presses itself upon our attention. It seems to 
me that there is nothing more urgently de- 
manded than that the people of the United 
States, the governments of the Western Hemi- 
sphere, and the governments of all of the 
nations which have been assailed or menaced 
by the Axis Powers should daily be considering 
and determining upon the policies and prac- 
tices whose future enforcement could render 
the greatest measure of assurance that the 
tragedy which we now see being unfolded 
should not once more be brought to pass. 

I can conceive of no greater misfortune than 
that the people of the United States and their 
Government should refrain from devoting 
themselves to the study of reconstruction until 
the end of the war; than that they should per- 
mit themselves to adopt the passive policy of 
"wait and see". 

The period following the present war will be 
fully as critical for us as is the present crisis. 
Forces of aggression now menace us from with- 
out. But dangers of another nature here and 
elsewhere will threaten us even after the war 
has ended in the victory of Great Britain and 
her allies over the powers that are seeking to 
place the whole of the world under their own 
ignominious form of tyranny. 



269 

There exists the danger, despite the clear 
lessons of the past, that the nations of the world 
will once more be tempted to resort to the same 
misguided policies which have had such dis- 
astrous consequences. And in the economic 
field especially there is danger that special in- 
terests and pressure groups in this countiy and 
elsewhere will once again selfishly and blindly 
seek preferences for themselves and discrimi- 
nations against others. 

The creation of an economic order in the 
post-war world which will give free play to 
individual enterprise, and at tlie same time ren- 
der security to men and women, and provide 
for the progressive improvement of living 
standards, is almost as essential to the preserva- 
tion of free institutions as is the actual winning 
of this war. And the pi-eservation of our lib- 
erties — all-important in itself — is essential to 
the realization of the other great objective of 
mankind — an enduring peace. There can be 
no peace in a Hitler-ridden world. 

In brief, in my judgment, the creation of that 
kind of sound economic order which I have de- 
scribed is essential to the attainment of those 
three great demands of men and women every- 
where — freedom, security and peace. 

The stakes are therefore tremendous in the 
task to which we must earnestly set ourselves. 
All of the talent of such organizations as this 
great organization of yours, of research insti- 
tutions, and of the agencies of government, 
must be brought to bear upon the solution of 
the post-war economic problems. 

These problems are of two kinds : those which 
will present themselves as the immediate after- 
math of the war and those involved in the cre- 
ation of a more permanent economic order. 

In the immediate post-war period the task 
will primarily be one of reconstruction. Food 
and matei'ial of all kinds will be sorely needed. 
Both humanitarian considerations and self-in- 
terest require that we cooperate to these ends 
to the fullest extent of our ability. So long as 
any important part of the world is economically 
sick, we caiuiot be well. 



270 



DEPARTMENT OF STATE BULLETEST 



Plans for meeting these requirements are al- 
ready being considered. In planning commod- 
ity agreements for stabilizing prices of basic 
commodities, such as the wheat agreement now 
under consideration bj' several of the produc- 
ing countries directly concerned, these unusual 
post-war needs must be kept in mind in order 
that adequate supplies may be available to meet 
them. 

Both from the standpoint of immediate post- 
war needs and in the longer-range aspect, we 
must give serious attention to the problems of 
nutrition. Here again humanitarian consid- 
erations and self-interest combine to make this 
subject one of outstanding importance to our 
people. If the dietary needs of the world's 
population could be satisfied to the extent neces- 
sary to meet minimum standards for sustaining 
health, the burdensome surpluses which nor- 
mally trouble producers of many staple prod- 
ucts would disappear. I am glad to be able 
to assure you that this subject is being given 
preferential attention by agencies of this and 
other governments. 

These are some of the problems with which 
we shall be faced immediately after the war. 
But the basic problem in establishing a new 
and better world order is to obtain the appli- 
cation by the nations of the world of sound 
principles of commercial and economic policy. 

The basic principles which, in my judgment, 
should guide the policies of nations in the post- 
war world have recently been enunciated in the 
eight-point joint declaration of the President 
and Mr. Churchill ' at the historic meeting of 
the Atlantic. 

This set of basic principles, appropriately 
called "The Atlantic Charter", deals with com- 
mercial policy in its fourth point which reads, 
"They will endeavor, with due respect for their 
existing obligations, to further the enjoyment 
by all states, great or small, victor or van- 
quished, of access, on equal terms, to the trade 
and to the raw materials of the world which 
are needed for their economic prosperity." 



' Bulletin of August 16, 1941, p. 125. 



This categorical statement of the essentials 
of post-war commercial policy requires no in- 
terpretation. I should, however, like to em- 
phasize its meaning and significance. 

The basic conception is that your Govern- 
ment is determined to move towards the 
creation of conditions under which restrictive 
and unconscionable tariffs, preferences, and 
discriminations are things of the past; under 
which no nation should seek to benefit itself at 
the expense of another; and under which de- 
structive trade warfare shall be replaced by 
cooperation for the welfare of all nations. 

The Atlantic Declai'ation means that every 
nation has a right to expect that its legitimate 
trade will not be diverted and throttled by 
towering tariffs, preferences, discriminations, 
or narrow bilateral practices. Most fortu- 
nately we have already done much to put our 
own commercial policy in order. So long as 
we adhere and persistently implement the prin- 
ciples and policies which made possible the 
enactment of the Trade Agreements Act, the 
United States will not furnish, as it did after 
the last war, an excuse for trade-destroying and 
trade-diverting practices. 

The purpose so simply set forth in tlie At- 
lantic Declaration is to promote the economic 
prosj^erity of all nations "great or small, victor 
or vanquished". Given this purpose and the 
determination to act in accordance with it, the 
means of attaining tliis objective will always 
be found. It is a purpose which does not have 
its origin primarily in altruistic conceptions. 
It is inspired by the realization, so painfully 
forced on us by the experiences of the past and 
of the present, that in the long run no nation 
can prosper by itself or at the expense of others 
and that no nation can live unto itself alone. 

No nation's peace can be assured in the dis- 
ordered world in which we have lived since 
1914. 

It is the task and responsibility of every one 
of us, and like-minded people everywhere, to 
see that our objective is attained. 

We cannot afford to repeat the tragic mis- 
takes of the past. 



OCTOBER 11, 1941 



271 



ADDRESS BY RAYMOND H. GEIST=' 
Assistance or the Department of State in Foreign Trade 



[Released to the press October 8] 

Mr. Chairman : 

In connection with the discussion on govern- 
mental operations affecting foreign trade, which 
is the subject proposed for this meeting, I wish 
to recall that the State Department of the 
United States Government has a very long his- 
tory in this field. Ever since the day when 
consuls were first appointed by President "Wash- 
ington under constitutional authority the De- 
partment of State has been directly and un- 
ceasingly active in promoting and protecting 
our foreign conunerce. In 1790 President 
Washington appointed 6 American Consuls and 
10 Vice Consuls to be stationed at 16 of the 
world's largest seaports. The first act of 
fundamental importance in connection with tlie 
history of our foreign trade was the organiza- 
tion of the Consular Service by an act of 
Congress on April 14, 1792. 

Foreign trade from the beginning of our 
history has formed an integral part of our 
foreign relations. Consequently, the scope of 
experience and understanding of the problems 
involved in international commerce has been 
concentrated in the Department of State for 
over one hundred and fifty years. It is, there- 
fore, reasonable to assume that with this wealth 
of experience and direct contact with the sub- 
ject itself the State Department is in a special 
position today to discharge its obligations to- 
ward the commercial and industrial interests 
of this country which are concerned about the 
preservation of foreign markets for surplus 
products and for sources of raw materials. 
The role of the State Department in promot- 
ing and preserving our share in international 



' Delivered before the Twenty-eighth National For- 
eign Trade Convention, New York, N. Y., October 8, 
1941. Mr. Geist is Chief of the Division of Commer- 
cial Affairs, Department of State. 



commerce is closely bound up with the general 
problem of conducting our foreign relations, 
which during the last decade, on account of 
the destructive forces abroad, have become ex- 
ceedingly complicated and difficult. 

It has only been in great emergencies such 
as the present one that the Government of this 
country has been forced to intervene in the 
operations and the business of international 
commerce. All of us recognize the advantage 
of giving merchants full scope and liberty in 
conducting their affairs, so that the channels 
of commerce remain free and unhampered 
everywhere, and the exchange of goods through- 
out the world is accomplished under conditions 
conducive to all peoples and to all nations. 
The American Government has steadily sub- 
scribed to this principle. 

In the past many countries have interfered 
with international commerce on a protectionist 
basis on the theory that established industries 
and higher standards of living must be shielded 
against competition from other industrial areas 
of the world, where wages were lower and the 
standard of living unequal. Though the protec- 
tionist policy pursued by such countries in the 
past has, to a certain extent, affected foreign re- 
lations and determined the character and volume 
of the exchange of goods with other nations, 
these restrictive measures were not sufficiently 
hampering and destructive in themselves to 
bring about the chaotic situation in international 
trade which merchants all over the world are 
now facing. Nations which have raised barriers 
against the importation of certain classes of 
goods at the same time have admitted others; 
in this way there have come about in the past 
partial adjustments between the importing and 
exporting nations of the world. 

In the United S'ates, before the advent of the 
trade-agreements program, the policies guiding 
our international trade have not been directed 



420925—41- 



272 



DEPARTMENT OF STATE BULLETIN 



toward making real friends among otlier nations. 
Our attitude toward the outside world, while 
from the beginning correct and fully in accord- 
ance with the principles of international law, 
has previously over a long period been based 
almost wholly on domestic considerations. 
Tlirough the long development of our history 
when we were rearing the foundations of our in- 
dustrial and economic greatness the American 
business world has remained the bulwark of this 
attitude. It was probably due to the favored 
position we held in the world during a century 
and a half of growth and economic expansion. 
So vast has been this process in the United 
States, during the period of our national growth, 
that in all other spheres of development we have 
hardly kept pace. It is not likely that a nation 
which has accomplished so much industrially 
and economically in the past will be retarded in 
the present or future. The achievements of a 
hundred and fifty years provide the assurance of 
further progress. It is necessary at this par- 
ticular moment in our history to take stock of 
our situation and not lose the vision which our 
ancestors had when they struggled to rear this 
great Nation in the face of odds and difficulties 
probably commensurately greater than ours. 

We may well take this view regarding the fu- 
ture of our foreign trade. Imports and exports 
have been crossing our frontiers since the earli- 
est daj's of the Republic. Our commerce has 
extended to all parts of the earth. Wlien the 
world has again settled down and nations, tired 
out and wearied with the horrors and futility 
of war, decide to live in peace and concord with 
their neighbors, the streams of commerce will 
flow in greater volume and extent than ever. 
Certain transformations will necessarily ai'ise 
in the adjusting process. It is inevitable that 
in an economic sense we shall draw much closer 
to the world's family of nations, and in no way 
will this be more apparent and real than in the 
pursuit of our foreign trade. We shall un- 
doubtedly be called upon to furnish goods and 
raw materials to many countries; but in doing 
so we shall be compelled to take into account 
reciprocal arrangements which assure common 



advantage to all. In other words, our foreign 
relations based on friendship and the policy of 
the good neighbor will foster enlightened trade 
practices beneficial to all. 

The error of the opposite course is abundantly 
clear to anyone who has followed the economic 
history of the totalitarian states during the last 
decade. Relations with other nations have been 
altered, even destroyed, to suit the exigencies of 
extreme economic self-sufficiency, a program 
inaugurated for purposes of conquest which 
eventually led to war. The businessmen of the 
world have seen these arbitrary and destructive 
measures at work ; and there is no doubt in the 
minds of those who are vitally interested in for- 
eign trade that such methods must be banished 
completely from the whole international field. 
This is one of the principal objects in the strug- 
gle against aggression to which this country is 
now lending its gigantic support. 

No department of the Government has been 
more closely associated with the developments 
which have come about on the international 
stage than the Department of State. Through 
the Foreign Service it has been in a position to 
observe closely the conduct of other nations, 
the policies which their governments have fol- 
lowed, and the effects of these policies upon our 
own interests. Probably no agency of the Gov- 
ernment has a more complicated and intricate 
task to perform than the State Department in 
assisting the President in the conduct of our 
foreign relations. However, in a republic such 
as ours the destiny of our nation is determined 
by the people, and in the long run, the ultimate 
course pursued is in accordance with the com- 
mon wish. Though the Department of State 
is the sole agency of the Government through 
which dealings and negotiations with foreign 
governments are conducted, it does not alone 
formulate the policy which the nation follows 
in its foreign affairs. Often sections of the 
country, such as the gi-eat agricultural interests, 
or regional manufacturing interests, have a 
share in determining our trade relations with 
other states. Chambers of commerce, national 
conferences, such as this, and trade associations 



OCTOBER 11, 1941 



273 



have a voice in the Nation's deliberations. Be- 
sides, other departments of tlie Government and, 
finally, the Conjiress of the United States have 
an important part in directing the course of our 
international affairs. 

It has been the good fortune of this country 
in the last decade to have the leadership of the 
Secretary of State in adjusting our trade rela- 
tions on a reciprocal and mutually advantageous 
basis with a large number of nations. This 
program was initiated at a time when not only 
this country, but most of the civilized world, 
was suffering from a severe and unprecedented 
economic crisis. The impetus which Secretary 
Hull's trade-agreements program has given to 
international commerce, and the sound princi- 
ples which it carried into the realm of world 
economy have not only mitigated the impact of 
the war upon trade in general but have indi- 
cated the type of liberal thinking which must 
characterize any successful adjustment of world- 
economic relations in the future. No task in the 
history of our international commercial rela- 
tions has been more beneficial, not only to our 
couiitry but to the nations associated with us 
in this program. In carrying out these agree- 
ments the Department of State has indicated 
to the business world the application of sound 
and just principles in conducting foreign rela- 
tions. On account of the serious international 
situation which has transformed this country 
into a productive arsenal, we are face to face 
with issues which demand the entire coopera- 
tion of the Nation. At no time has leadership 
in the conduct of foreign affairs been more 
vital than now. It is essential that we j^reserve 
that justice and fairness in our dealings with 
other states for which this country has stood 
since the beginning of its history. We must 
keep in mind the dangers threatening friendly 
nations and the privations others are endur- 
ing on behalf of the common defensive policy. 
In no way can we cooperate more fully than by 
making the most effective and wise adjustments 
in the sphere of foreign trade. A highly suc- 
cessful program can only be carried out if the 
business interests lend their full support to the 



system devised and the controls exercised for 
the common good. 

Inasmuch as the major effort of the Nation 
is directed toward expediting vast shipments 
of armaments and other needed materials over- 
seas, the normal channels of commerce are al- 
most completely filled by emergency ship- 
ments. Export-and-import trade has become 
subject to controls on a scale unprecedented on 
account of the volumes involved. Our normal 
world trade which a short while ago was mov- 
ing freely in most every part of the globe has, 
in a comparatively short space of time, been 
entirely stopped in certain areas or has been 
transformed into emergency defense shipments. 
The impact of this shift upon the established 
commercial interests of this country engaged 
in international commerce needs no comment. 
The effective cooperation which these enter- 
prises have given in the general cause of na- 
tional defense constitutes a brilliant chapter in 
the history of our foreign trade. The sacri- 
fices which these adjustments involved have 
been on a vast scale unprecedented in our 
commercial history. 

At the same time it must be the common ob- 
ject not only of the Government, which is 
carrying out the general defense scheme, but 
of the commercial interests of the country 
to preserve intact as completely as possible 
the regular export-and-import trade, which is 
an integral part of the industrial life of this 
Nation. It would appear paramount in facing 
this problem to make the adjustment in a way 
which would safeguard trade connections and 
markets, though the movement of goods is on 
a reduced scale as compared with normal times. 
We have to regard in this connection the wel- 
fare of the nations which have been our best 
customers and from whom over a long period 
of years we have obtained supplies and goods 
necessary to our economy. There is danger 
that, on account of the general curtailment of 
production except for defense needs in various 
lines, manufacturers, who in the past have 
done an appreciable volume of export business, 
will consider that for the time being business 



274 



DEPARTMENT OF STATE BULLETrN 



can be well confined to the domestic field and 
the export market cut off. This practice would 
not be in accord with the realities of the inter- 
national situation. This country is not only 
the arsenal of the democracies resisting aggres- 
sion, but the sole source of goods which certain 
friendly nations require and in some cases the 
only market for their raw materials and 
products. 

The Goveriunent is aware of this situation 
and understands that overseas areas dependent 
upon this country for essential commodities, 
foodstuffs, or manufactured materials must re- 
ceive adequate consideration. To this end the 
Foreign Service of the Department of State is 
being expanded in certain countries, particu- 
larly in the other American republics, to report 
on these factors so that the Government will 
be in a position to facilitate the flow of goods 
where these are essential. 

It is a well-known fact that virtually every 
manufacturer can find a ready market for his 
products in the United States. In contemplat- 
ing the maintenance of his export business he 
envisages the difficulties and formalities in- 
volved in obtaining export licenses, securing 
priorities on materials, receiving payments 
from abroad in dollars, and, finally, obtaining 
shipping accommodations. But considering 
the millions that American industry has in- 
vested in developing export trade during the 
last 20 years, it is clear that sacrificing our 
overseas markets and abandoning our position 
built up with so much labor and expense for 
the domestic markets at this time would be ex- 
tremely short-sighted and unrealistic. It is 
essential that both business and government 
cooperate to see that our overseas trade is ade- 
quately maintained. Since priorities for all mil- 
itary and defensive needs are paramount, the 
export trade can only benefit at the expense of 
the American consuming public, which should 
be willing to do with less goods that our neigh- 
bors might have their minimum needs supplied. 

In the administration of the Foreign Service 
the Department has recognized the necessity of 



keeping our office adequately staffed to meet 
the increased demands arising out of the pres- 
ent international situation. In the countries 
of South and Central America, United States 
business firms, in line with the general policy 
of placing the representation of American 
houses in reliable hands, have discontinued 
their dealings with a large number of pro- Axis 
factors and have called upon the Foreign Serv- 
ice and the Bureau of Foreign and Domestic 
Commerce to assist in providing new com- 
mercial contacts. This program has been 
further activated by the publication of the 
Proclaimed List of Certain Blocked Nationals, 
the significance of which in the general plan of 
hemispheric defense may be appraised in the 
light of the basic objective of the President's 
proclamation. This objective is to eliminate 
or greatly restrict all phases of influence and 
activity of individuals or firms who are Imown 
to be inimical to the United States and to the 
purposes of hemispheric defense. The im- 
mediate objective of the steps which this Gov- 
ernment has taken with respect to firms and 
individuals on the Proclaimed List is to prevent 
such factors from deriving any benefit from 
commercial relations of any nature with the 
United States or with persons subject to its 
jurisdiction. 

The more extensive activity of the Govern- 
ment in dealing with problems arising out of 
the present international situation has called for 
an increased number of Foreign Service officers 
and assistants in the other American republics. 
Not only in this part of the world, but through- 
out the areas where our commercial and diplo- 
matic activities continue, the Foreign Service 
has had to cope with new problems and render 
increased service on behalf of a number of 
governmental departments and agencies; so 
that in general the responsibilities and tasks 
crowding in on our missions and consular offices 
have actually resulted in a shortage of person- 
nel, which has not been relieved by transfers 
from Axis areas. During the period from Sep- 
tember 3, 1939 to the end of July 1941, 35 



OCTOBER 11, 1941 



275 



consular establishments were opened in all parts 
of the world and one legation, that at Canberra, 
Australia. During the same period 11 consular 
establishments were closed in countries not 
under Axis domination. In Axis countries in 
Europe the United States Government has 
closed 44 consulates, 9 legations and 1 embassy. 
The net results during the period under refer- 
ence are that we have decreased the number of 
consular establishments in the Foreign Service 
by 30, the number of legations by 8, and embas- 
sies by 1. There has been a necessary change in 
the character of commercial and economic re- 
porting from the field. Methods have been 
speedily revised to meet the stress of the present 
emergency ; and in general, matters of immedi- 
ate importance have been crowded to the fore. 
However, the facilities which have always been 
available to American firms engaged in export- 
and-import trade are being maintained at a 
high level of efficiency; so that the services 
which our missions and consulates have been 
performing for American interests shall suffer 
no impairment during this critical period. The 
Government recognizes the necessity, as pointed 
out by the United States Chamber of Commerce 
in its recent review of problems confronting 
foreign trade, of keeping our overseas posts 
manned with the ablest personnel, especially 
with men experienced in international trade. 

The officers in the Foreign Service from the 
ambassadors and ministers down through the 
senior ranks are distinguished for their special- 
ized skill and long experience. They constitute 
a group of experts schooled in the numerous 
problems of international relations, and among 
these not the least, that of foreign trade. Be- 
sides, the Foreign Service has been strengthened 
on the professional side by the inclusion two 
years ago of the commercial and agi'icultural 
attaches, whose services on behalf of the Gov- 
ernment and business interests of the United 
States have continued to be outstanding in value 
and importance. The timeliness and wisdom 
of the President's reorganization plan, whereby 
the Foreign Services of the Departments of 
Commerce and Agriculture have been taken over 



by the Department of State, have been demon- 
strated in the present emergency, when duplica- 
tion of effort and division of authority would 
have hampered and slowed down the urgent 
tasks which are now being carried out in our 
missions and consular establislmients. The 
commercial and agricultural attaches as officers 
of the Department of State are performing val- 
uable service and engaging, as the occasion re- 
quires, in important negotiations in keeping 
with their full diplomatic status. Above all, 
they are primarily charged, as they have always 
been, with questions affecting our international 
trade. They continue directly to be at the serv- 
ice of the American businessman who is en- 
deavoring to develop new markets for American 
l^roducts or seeking imports from abroad. The 
actual demands of American business firms 
upon the services rendered by our missions and 
consulates may be curtailed or changed on ac- 
count of the unusual conditions under which 
foreign trade is now carried on, but this assur- 
ance can be given : Our offices are fully prepared 
to discharge their responsibilities. 

This is preeminently a time of leadership by 
the Government. The people of this country 
have a right to expect, in this great historic 
crisis, when the very destiny of our Nation is 
at stake, that leadership by those in authority 
will be unerring and accurate. It is likewise 
in the realm of foreign trade that we desire 
ultimately to reach stability and assure the 
triumph of practices and principles which will 
bring about common prosperity throughout the 
world. Though the struggle to reach that goal 
will be severe, there can be no doubt or hesita- 
tion about our attaining it. We stand upon the 
threshold of an era when the foreign trade of 
this country will be indissolubly linked to the 
trade and commerce of other nations to a wider 
and more universal extent than in the past. 
Tlie veritable trade-prosperity sphere which the 
whole world longs for will be established on 
the liberal and enlightened principles of justice, 
which by our might, our resolution, and stead- 
fastness of purpose will have its true beginning 
here in the West. 



276 



DEPARTMENT OF STATE BULLETIN 



Europe 



The Far East 



ASSISTANCE TO THE SOVIET UNION 

LETTER FROM THE PRESIDENT OF THE UNITED 
STATES TO THE PRESIDENT OF THE SOVIET OF 
PEOPLE'S COMMISSARS OF THE U.S.S.R. 

[Released to the press by the White House October 8] 

Careful comparison of the language of the 
German announcement made in Berlin on Oc- 
tober 8, 1941, by DNB, official German news 
agency/ and that actually contained in the 
President's letter of introduction of Mr. Harri- 
man to Mr. Stalin, is invited. When such a 
comparison is made, the propaganda objectives 
of the Nazi action become very clear. 

The President's letter reads as follows : 

"Mt Dear Mr. Stalin : 

"This note will be presented to you by my 
friend Averell Harriman, whom I have asked 
to be head of our delegation to Moscow. 

"Mr. Harriman is well aware of the strategic 
importance of your front and will, I know, do 
everything that he can to bring the negotiations 
in Moscow to a successful conclusion. 

"Harry Hopkins has told me in great detail 
of his encouraging and satisfactory visits with 
you. I can't tell you how thrilled all of us 
are because of the gallant defense of the Soviet 
armies. 

"I am confident that ways will be foimd to 
provide the material and supplies necessary to 
fight Hitler on all fronts, including your own. 

"I want particularly to take this occasion to 
express my great confidence that your armies 
will ultimately prevail over Hitler and to assure 
you of our great determination to be of every 
possible material assistance. 
"Yours very sincerely, 

Franklin D Koosevelt" 



REPATRIATION OF AMERICANS IN 
JAPAN 

[Released to the press October 11] 

The Japanese Embassy has informed the De- 
partment of State that the Japanese Govern- 
ment plans to send three Japanese ships, requi- 
sitioned by the Japanese Ministry of Commu- 
nications, to visit the United States for the 
purpose of bringing passengers, including 
Americans, from Japan to the United States 
and of repatriating Japanese now in the United 
States who wish to return to Japan. It is 
understood that these ships will carry no com- 
mercial cargo. 

The Japanese Embassy has been informed 
that there is no objection to the tliree ships 
calling at American ports for the purposes in- 
dicated in accordance with the schedule com- 
municated bj' the Japanese Embassy, as fol- 
lows : one vessel leaving Yokohama October 15, 
due at San Francisco October 30; one vessel 
leaving Yokohama October 20, due at Seattle 
November 1 ; one vessel leaving Yokohama Oc- 
tober 22, due at Honolulu November 1. 



American Republics 



' Text of German announcement printed in American 
newspapers. 



VISIT TO THE UNITED STATES OF 
ARGENTINE DEPUTIES 

[Released to the press October 7] 

On the invitation of the Honorable Sam 
Kayburn, Speaker of the House of Representa- 
tives, tlie President of the Chamber of Deputies 
of the Argentine Republic, Seiior Don Jose Luis 
Cantilo, and nine other Deputies, accompanied 
by their wives and children, will arrive on board 



OCTOBER 11, 194 1 



277 



the steamship Brazil, New York Harbor, on 
October 20 for a visit of three weeks. The 
Honoi-iible Sol Bloom, Chairman of the For- 
eign Affairs Committee of the House of Rep- 
resentatives, is in charge of the arrangements 
for the visit, and the Department of State is 
working in concert with him regarding the 
plans therefor. 

The Deputies will proceed directly to Wash- 
ington, where they will remain for four days 
and be received by high officials of the Ameri- 
can Government. Among the functions 
planned for the visit are an evening reception 
at the Pan American Union, given by the 
Speaker of the House, a reception at the Ar- 
gentine Embassy, given by the Ambassador and 
Senora Espil, and a cocktail party given by the 
Coordinator of Inter-American Affairs and 
Mrs. Nelson Rockefeller. As guests of the De- 
partment of State, they will attend the Phila- 
delphia Orchestra concert at Constitution Hall 
on October 21. A program of luncheons, din- 
ners, and sightseeing, including visits to Mount 
Vernon, Arlington, the National Gallery, the 
Capitol, the Supreme Court, the Library of 
Congress, the Federal Bureau of Investigation, 
and other points of interest, has been planned. 

Following the visit in Washington, the Depu- 
ties have been invited to visit Williamsburg, 
Virginia, as the guests of the Williamsburg 
Corporation. They will spend a week in New 
York before sailing on November 8, and prior to 
this final week will visit industrial and educa- 
tional centers in the Midwest and East. The 
Deputies have expressed an interest in seeing the 
work being done in our national-defense indus- 
tries and have been invited to Detroit and Buf- 
falo to visit factories at these points. 

The names of the Deputies follow : 

Sefior Don Jos^ Luis Cantilo 

SeSor Don Armando G. Antille 

Seuor Don Ju.au I. Cooke 

Senor Don Nicanor Costa M^ndez 

Senor Don Rafil Damonte Taborda 

Sonor Don Alejandro Gancedo 

Sefior Don Americo Ghioldi 

Seiior Don Adolfo Lanus 

Senor Don Fernando de Prat Gay 

Sefior Don Juan Smi6n PadrOs 



Seiior Don Americo Peretti, official of the 
Chamber of Deputies, is secretary of the 
delegation. 



International Conferences, 
Commissions, Etc. 



EIGHTH PAN AMERICAN CHILD 
CONGRESS 

[Released to the press October 11] 

The Organizing Committee of the Eighth Pan 
American Child Congress, which was appointed 
by the Secretary of State to develop plans for 
the Congress, has held its second meeting and 
has approved a suggestion that the Congress be 
held from May 2 to May 9, 1942 instead of March 
28 to April 4, 1942 as previously announced.^ 

Child Health Day will be celebrated May 1, 
inaugurating Child Health Week. The Depart- 
ments of State and Labor and the Organizing 
Committee feel that the newly selected dates for 
the Congress are particularly appropriate for 
a continental meeting devoted to interests of 
children. The officials of the American Inter- 
national Institute for the Protection of Child- 
hood in Montevideo have agi-eed to this change 
of dates. 

Reports received at the time of the recent 
meeting of the Organizing Committee indicate 
that replies to the invitation extended to the 
other American republics to participate in the 
Congress already have been received from Bra- 
zil, Colombia, Cuba, El Salvador, Guate- 
mala, Haiti, Mexico, Panama, Paraguay, and 
Venezuela. 

Miss Katharine F. Lenroot, Chief of the 
Children's Bureau, Department of Labor, and 
United States member of the International 
Council of the American International Insti- 
tute for the Protection of Childhood of Monte- 
video, is Chairman of the Organizing 
Committee of the Congress. 



'See Bulletin of May 3, 1941, p. 533, and May 24, 
1941, p. 639. 



278 



DEPARTMENT OF STATE BULLETIN 



The other members are : 

William G. Carr, Pli.D., Associate Secretary, Na- 
tional Education Association, Washington, D.C. 

Henry F. Helmholz, M.D., Professor of Pediatrics, 
Mayo Foundation of the University of Minnesota, 
Rochester, Minn. 

Warren Kelchner, Ph.D., Chief, Division of In- 
ternational Conferences, Department of State, 
Washington, DC. 

The Reverend Bryan J. McEntegart, President, 
National Conference of Catholic Charities, New 
York, N.Y. 

Mrs. Elisabeth Shirley Enochs, Oflice of the Chief, 
Children's Bureau, Department of Labor, Wash- 
ington, D.C, Secretarti of the Committee. 



FIFTH CONGRESS OF THE POSTAL 
UNION OF THE AMERICAS AND 
SPAIN 

The Fifth Congress of the Postal Union of 
the Americas and Spain, which was to have 
convened at Rio de Janeiro, Brazil, on Ssp- 
tember 1. 1941 (see the Bulletin of July 26, 
1941), has been postponed at the instance of 
the Government of Brazil. New dates for 
holding the Congress have not yet been 
announced. 



The Department 



CHANGES IN ORGANIZATION OF THE DEPARTMENT 
BOARD OF ECONOMIC OPERATIONS 



Depabtmental Order 973, October 7, 1941 

There is hereby created in the Department of 
State a Board of Economic Operations, the mem- 
bers of which shall be Assistant Secretaries of 
State Acheson and Berle, the Adviser on In- 
ternational Economic Affairs, Dr. Herbert Feis, 
the Special Assistant to the Secretary of State, 
Dr. Leo Pasvolsky, and the Chiefs, or in their 
absence, the Acting Chiefs of the following di- 
visions: Commercial Policy and Agreements, 
Exports and Defense Aid, Defense Materials, 
Studies and Statistics, World Trade Intel- 
ligence, and Foreign Funds and Financial 
Division. 

Assistant Secretary of State Acheson shall be 
Chairman of the Board and Assistant Secretary 
of State Berle and the Adviser on International 
Economic Affairs shall be Vice Chairmen. Tlie 
latter, in addition to his present duties, shall be 
Adviser to the Board; the Executive Secretary 
and the constituent Divisions of the Board shall 
keep him informed and shall appropriately seek 
his advice. 



It shall be the duty of the Board, in order 
most effectively to carry out the Department's 
functions in connection with the economic de- 
fense of the United States, under the supervision 
of Assistant Secretary of State Acheson, to assist 
in formulating policies and to coordinate the ac- 
tivities of the various Divisions of which the 
Board is composed. 

Mr. Emilio G. Collado is hereby designated as 
Executive Secretary of the Board and Mr. Jack 
C. Corbett is designated as Assistant Executive 
Secretary. In their respective capacities these 
officers shall prepare agenda for meetings of the 
Board and shall maintain minutes of such meet- 
ings. Under the direction of the Chairman and 
in behalf of the Board, they shall assist in cor- 
relating the policies and activities of the Divi- 
sions represented in the Board and in assuring 
effective liaison with other interested depart- 
ments and agencies of the Government, and may 
sign communications. Communications for the 
signature or consideration of the Chairman or 
Vice Chairmen of the Board shall pass through 
the secretariat. 



OCTOBER 11, 1941 



279 



The symbol of the Board of Economic OjDera- 
tions shall be EO. 

The provisions of this Order shall be effective 
as of October 8, 1941, and shall supersede the 
provisions of any existing Order in conflict 
therewith. 

SPECIAL ASSISTANT TO THE UNDER SECRE- 
TARY OF STATE 

Departmental Order 974, October 7, 1941 

In addition to his duties as Executive Secre- 
tary of the Board of Economic Operations, Mr. 
Emilio G. Collado is hereby designated a Spe- 
cial Assistant to the Under Secretary of State 
and will perform such duties as may be assigned 
him in that capacity, effective immediately. 

DIVISION OF COMMERCIAL POLICY AND 
AGREEMENTS 

Departmental Order 975, October 7, 1941 

Henceforth the Division of Commercial Trea- 
ties and Agreements shall be known as the Divi- 
sion of Commercial Policy and Agreements, 
which is hereby established to have general 
charge of the formulation, negotiation and ad- 
ministration of all commercial treaties and 
agreements having to do with the international 
commercial relations of the United States, as 
well as matters of tariff, general trade and other 
questions relating to the international commer- 
cial policy of the United States. 

The new Division, under the general super- 
vision of Assistant Secretary of State Acheson, 
shall operate as a component part of the Board 
of Economic Operations and shall have gen- 
eral responsibility for the Department's corre- 
spondence and contacts with the American ex- 
port-import interests, with our representatives 
abroad, and with representatives of foreign gov- 
ernments in this country in regard to the nego- 
tiation, interpretation and enforcement of the 
terms of commercial treaties and agreements 
and problems relating to American foreign 
commerce. 

Mr. Harry C. Hawkins is designated Chief 
of the Division of Commercial Policy and 



Agreements and Mr. William C. Fowler, Mr. 
John C. Ross and Mr. Robert M. Carr are desig- 
nated Assistant Chiefs. The symbol of this 
Division shall be TA. 

The provisions of this Order shall be effective 
on October 8, 1941, and shall supersede the pro- 
visions of any existing Order in conflict there- 
with. 

DIVISION OF EXPORTS AND DEFENSE AID 
Departmental Order 976, October 7, 1941 

There is hereby created a Division of Exports 
and Defense Aid, which shall operate as a com- 
ponent part of the Board of Economic Opera- 
tions of the Department under the general 
supervision of Assistant Secretary of State 
Acheson. This Division shall have responsibil- 
ity for all matters of foreign policy involved in 
the administration of the Act of July 2, .1940, 
(the Export Control Act), the Act of March 
11, 1941, (the Lend-Lease Act), the Acts of 
June 28, 1940 and May 31, 1941, (in so far as 
priorities or allocations for export are con- 
cerned), and for the administration of Sec. 12 
of the Act of November 4, 1939, (the Neutrality 
Act), the Act of September 1, 1937, (the 
Helium Act), and the Act of February 15, 1936, 
(the Tin Plate Scrap Act). The Division of 
Exports and Defense Aid shall have responsi- 
bility in matters under its control for dealing 
with tlie Department's correspondence and con- 
tacts with our representatives abroad and with 
representatives of foreign governments in this 
country, and through the Board of Economic 
Operations will collaborate with the geographi- 
cal and other Divisions concerning the formu- 
lation and coordination of policy, and shall 
establish and maintain effective liaison with 
other Departments and agencies of the Govern- 
ment, concerned with the administration of the 
above-mentioned Acts. 

Mr. Charles Bunn, Special Assistant to the 
Under Secretary of State, in addition to such 
other duties as may be assigned to him, is desig- 
nated Acting Chief of the Division of Exports 
and Defense Aid and Mr. Charles Yost is desig- 



280 

nated Assistant Chief of the new Division, effec- 
tive October 8, 1941. Tlie symbol of the Division 
of Exports and Defense Aid shall be DE. 

The provisions of tliis Order shall supersede 
the provisions of any existing Order in conflict 
therewith. 

DIVISION OF DEFENSE MATERIALS 

Departmental Order 977, October 7, 1941 

In addition to such other duties as may be 
assigned to him as Special Assistant to the Sec- 
retary, Mr. Thomas K. Finletter is designated 
as Acting Chief of the Division of Defense Ma- 
terials, which is hereby established effective 
October 8, 1941. This Division shall be a com- 
ponent part of the Board of Economic Opera- 
tions and operate under the general supervision 
of Assistant Secretary of State Acheson. Mr. 
Finletter shall have responsibility in the formu- 
lation and execution of policies in the field of 
defense materials, in collaboration with the in- 
terested Divisions and Offices of the Depart- 
ment. Together with the Adviser on Interna- 
tional Economic Affairs, he shall establish and 
maintain effective liaison with other interested 
departments and agencies of the Govermnent 
concerned with these matters. The symbol of 
this Division shall be DM. 

DIVISION OF STUDIES AND STATISTICS 

Departmental Order 978, October 7, 1941 

There is hereby established, as a component 
part of the Board of Economic Operations to 
operate under the joint supervision of Assistant 
Secretaries of State Berle and Acheson, a Divi- 
sion of Studies and Statistics, which shall have 
responsibility, in collaboration with the inter- 
ested Divisions and Offices of the Department, 
for the preparation of current studies, analj'- 
ses and statistical data needed in connection 
with matters arising before the Board of Eco- 
nomic Operations or as may be required by any 
of the Divisions of which it is composed in con- 



DEPARTMENT OF STATE BULLETIN 

nection with policy considerations and national 
defense activities. Nothing in this Order shall 
be construed as modifying Departmental Order 
No. 917-A of February 3, 1941. 

In addition to such other duties and respon- 
sibilities as may be assigned to him as Special 
Assistant to the Secretary, Mr. Lynn Echninster 
shall assume responsibility as Acting Chief of 
the Division of Studies and Statistics effective 
October 8, 1941. The symbol of this Division 
shall be ST. 

The provisions of this Order shall supersede 
the provisions of any existing Order in conflict 
therewith. 

DIVISION OF WORLD TRADE INTELLIGENCE 

Departmental Order 979, October 7, 1941 

Departmental Order 956, which established 
in the Department of State a Division of World 
Trade Intelligence, is hereby amended to pro- 
vide that this Division operate as a component 
part of the Board of Economic Oj)erations 
under the general supervision of Assistant 
Secretary of State Acheson. 

The provisions of this Order shall be effec- 
tive as of October 8, 1941 and shall supersede 
the provisions of any existing Order in conflict 
therewith. 

FOREIGN FUNDS AND FINANCIAL DIVISION 

Departmental Order 980, October 7, 1941 

There is hereby created a Foreign Funds and 
Financial Division which shall serve as a com- 
ponent part of the Board of Economic Opera- 
tions under the general supervision of Assist- 
ant Secretary of State Berle. 

Mr. Frederick Livesey is designated Assistant 
and Acting Chief of the Foreign Funds and 
Financial Division. Mr. Adrian Fisher is des- 
ignated Assistant Chief in charge of foreign 
funds control. 

This Division shall have responsibility in all 
matters of foreign policy in foreign funds con- 
trol and other financial matters, as well as re- 



OCTOBER 



281 



sponsibility for establishing and maintaining 
effective liaison with other interested depart- 
ments and agencies of the Government con- 
cerned with these matters. 

When problems of foreign funds control or 
other fiscal operational problems directly affect 
the fields of connnerce or defense the Division 
shall report to Assistant Secretary of State 
Acheson. 

The symbol of the Division shall be FF. 

The provisions of this Order shall supersede 
the provisions of any existing Order in conflict 
therewith and become effective October 8, 1941. 

DIVISION OF CONTROLS ABOLISHED 
Departmental Order 981, October 7, 19-tl 

The Eed, White and Blue License Unit of 
the former Division of Controls, which is 
hereby abolished, is transferred to the newly 
created Division of Exports and Defense Aid. 
That portion of the Registration Unit of the 
Division of Controls concerned with registra- 
tion of agents of alien principals is transferred 
to the Division of Foreign Activity Correla- 
tion, and that portion of the Registration Unit 
concerned with funds for relief is transferred 
to the Special Division. The Statistical Unit 
of the Division of Controls is transferred to the 
Division of Studies and Statistics. 

The Division of Personnel Supervision and 
Management will take the necessary action to 
effect the transfer and classification of affected 
personnel and their equipment. 

The provisions of this Order shall be effective 
on October 8, 1941, and shall supersede the pro- 
visions of any existing Order in conflict there- 
with. 

SPECIAL ASSISTANT TO THE SECRETARY OF 
STATE AND CHIEF OF THE SPECIAL 
DIVISION 

Departmental Order 982, October 7, 1941 

Mr. Joseph C. Green has been appointed a 
Special Assistant to the Secretary of State and, 
in addition to such duties as may be assigned 
to him by the Secretary of State, he is desig- 



nated as Chief of the Special Division effective 
October 8, 1941. 

The provisions of this Order shall supersede 
the provisions of any existing Order in conflict 
therewith. 

CARIBBEAN OFFICE 

Departmental Order 984, October 9, 1941 

For the purpose of encouraging and strength- 
ening social and economic cooperation between 
the United States of America and its posses- 
sions and bases in the area known geograph- 
ically or politically as the Caribbean, and other 
countries, colonies and possessions in this area, 
it is hereby ordered that there shall be estab- 
lished in the Department of State a Caribbean 
Office. 

The Office will be subordinate to the Division 
of the American Republics and the Division of 
European Affairs with respect to all matters 
in which those Divisions are primarily respon- 
sible. With I'egard to such matters as are not 
of primary concern to those Divisions and which 
relate to the interplay between the countries, 
colonies and possessions in the Caribbean area 
of social and economic conditions, the Office 
will have original jurisdiction but its activities 
will be subject to the review of the two afore- 
mentioned geographical divisions. It will as- 
sist in the preparation and interpretation of 
treaties and agreements in this field. It will 
supervise the formulation of regulations and 
l^rocedure necessary for the fulfillment of such 
treaties and agreements. It will draft or re- 
view correspondence with foreign governments, 
American diplomatic and consular offices and 
all other correspondence pertaining to these ac- 
tivities. It will collaborate with other depart- 
ments and agencies, particularly those having 
jurisdiction in the fields of labor, agriculture, 
housing, health, education, finance, trade rela- 
tions and tariffs. It will cooperate with other 
economic, educational and labor agencies and 
foreign missions in Washington. 

The Caribbean Office will function under the 
general supervision of U. 

The symbol designation of the Office shall 
beCB. 



282 



DEPARTMENT OF STATE BULLETIN 



Mr. Coert du Bois, Foreign Service Officer, 
Class I, has been appointed Chief of the Carib- 
bean Office. 

The Division of Personnel Supervision and 
Management will provide the necessary clerical 
assistance and equipment for the new Offiji', 
within the limits of appropriated funds. 

The provisions of this Order shall be effective 
on October 9, 1941 and shall supersede the pro- 
visions of any existing Order in conflict 
therewith. 

LIAISON DUTIES OF DIVISION OF CURRENT 
INFORMATION 

Departmental Order 985, October 9, 1941 

In addition to its present duties, the Division 
of Current Information is hereby charged with 
the establishment and maintenance of effective 
liaison with all agencies of the Government 
concerned with the collection and dissemina- 
tion of information in which the Department 
of State has an interest. It will enlist the 
collaboration of all interested divisions of the 
Department and in particular the geographical 
divisions and the Division of Cultural Rela- 
tions. These latter divisions shall each desig- 
nate a representative to assume full-time duties 
with the Division of Current Information. 

Mr. Robert T. Pell is hereby designated Act- 
ing Assistant Chief to assist Mr. Michael J. 
McDermott, Chief of the Division of Current 
Information, in this new field of authority. 

This Order shall be effective on October 10, 
1941. 



OFFICE OF THE GEOGRAPHER 
Departmental Order 972, October 7, 1941 

As a result of the growth of its activities, 
particular!}^ in the field of geographic research 
and mapping necessary in the proper appraisal 
of problems in the field of international rela- 
tions, the Office of the Geographer is hereby 
established as an independent office and shall 
function under the supervision of the Assistant 
Secretai-y and Budget Officer. The office desig- 
nation shall continue to be Ge. 

The provisions of this Order supersede and 
cancel the provisions of any existing Order in 
conflict therewith. 

APPOINTMENT OF OFFICERS 
Departmental Order 969, September 23, 1941 

Mr. Leo D. Sturgeon, a Foreign Service Of- 
ficer of Class IV, has been designated an Assist- 
ant to Assistant Secretary of State, Mr. Long, ef- 
fective as of September 15, 1941. He will act 
as consultant on matters relating to international 
fisheries. 

Departmental Order 971. October 1, 1941 

Mr. Robert Lacy Smyth, a Foreign Service 
Officer of Class IV, is hereby designated an As- 
sistant Chief of the Division of Far Eastern 
Affairs, effective as of September 26, 1941. 

Departmental Order 983, October 9, 1941 

Mr. William L. Schurz is hereby designated 
an Acting Assistant Chief of the Division of 
Cultural Relations, effective on this date. 



The Foreign Service 



FOREIGN SERVICE AUXILIARY 



Appointments totaling approximately 60 offi- 
cers and 100 clerks have been made to positions 
in a branch of the Foreign Service referred to 
as the Foreign Service Auxiliary, which has 
been established to fill the need for additional 
help in American missions and consular estab- 
lislmients, principally in the other American 
republics. This need arises both from a very 
considerable expansion of the regular activities 
of the Foreign Service and from the imposition 
upon it of certain additional duties of an emer- 
gency nature for which the Service is not nor- 
mally sufficiently staffed. Appointees will be 
under the direction and supervision of the offi- 
cer in charge of the American Foreign Service 
post at which they are stationed. 

Appointments are of a temporally nature, for 
the period of the emergency only, funds being 
available from the President's emergency ap- 
propriation only up to and including June 30, 
1942. Should the emergency which occasions 
the present action be prolonged beyond that 
date, it may be necessary to continue the serv- 
ices of these special assistants accoi'dingly. 

Part of this auxiliary personnel performs re- 
sponsible and technical work in the field of eco- 
nomics, particularly economic problems growing 
out of wartime conditions, involving investiga- 
tion of and reporting on such matters as the 
following: Movements of vessels and cargoes; 
problems relating to export control in the United 
States and the essential economic needs of the 
foreign country concerned; information relating 
to the determination of priorities; problems 
connected with the proclaimed list of certain 
blocked nationals; availability of strategic raw 
materials and terms and conditions for procur- 



ing them; development projects financed by the 
Export-Import Bank; and in general all prob- 
lems of an economic character having direct 
bearing on the current emergency. A limited 
number of economic analysts ha\e been ap- 
pointed exclusively for agricultural reporting. 

Another group of officers is primarily re- 
sponsible for the development and maintenance 
of friendly relations with cultural leaders in 
the country in which they are stationed. They 
are concerned with such matters as the exchano-e 
of professors and students; the distribution 
and exhibition of motion-picture films ; arrange- 
ments for visits of officials or distinguished 
citizens between the United States and the for- 
eign country in which the officer is stationed; 
the cultural activities of the Coordinator of 
Inter-American Affairs; and liaison with local 
cultural and scientific institutions. They are 
expected to report on all of these matters and 
to submit recommendations regarding ways and 
means for improving the program of cultural 
relations. 

Included in the number of 60 officers is a 
group of non-career vice consuls, composed of 
younger men, whose duties are of a general 
nature. 

The duties of any one of the officers will 
not necessarily be restricted to any one of the 
above descriptions; as they progress in experi- 
ence and become more adapted to the work 
of the offices to which they are assigned, it is 
to be expected that they may be called upon 
to perform duties of other character for which 
they are qualified. 

In all cases, members of the Foreign Service 
Auxiliary will be granted allowances for rent, 

283 



284 



DEPARTMENT OF STATE BULLETIN 



light, and heat on the same scale as members 
of the regular Foreign Service. The expenses 
of the transportation of themselves, tlieir fam- 
ilies, and tlieir effects to and from their posts 
is aiitliorized in accordance with the provisions 
of the Travel Regulations. 

PERSONNEL CHANGES 

The nomination of Arthur Bliss Lane to be 
Envoy Extraordinary and Plenipotentiary of 
the United States of America to Costa Rica 
was confirmed by the Senate on October 9, 
1941. Mr. Lane was formerly Minister to 
Yugoslavia. 

[Ueleasecl to the press October 11] 

The following changes have occurred in the 
American Foreign Service since October 4, 
1941: 

Cabeer Officers 

Thomas M. Wilson, of INIemphis, Tenn., Con- 
sul General at Calcutta, India, has been desig- 
nated Commissioner of the United States of 
America at New Djihi, India. 

Lester L. Schnare, of Macon, Ga., who has 
been serving as Consul at Milan, Italy, has 
been assigned as Consul at Rangoon. Burma. 

The assignment of Dayle C. McDonough, of 
Kansas City, Mo., as Consul General at Keijo, 
Chosen, has been canceled. In lieu thereof, Mr. 
McDonougli has been designated First Secre- 
tary of Embassy and Consul General at San- 
tiago, Chile, and will serve in dual capacity. 

Fayette J. Flexer, of Joliet, 111., First Secre- 
tary of Embassy and Consul at Santiago, Chile, 
has been assigned as Consul at Dal^ar, French 
West Africa. 

Burton Y. Berry, of Fowler, Ind., who has 
been serving as Second Secretary of Legation 
and Consul at Athens, Greece, has been desig- 



nated Second Secretary of Embassy at Rome, 
Italy. 

The assignment of Archer Woodford, of 
Paris, Ky., as Consul at Calcutta, India, has 
been canceled. In lieu thereof, Mr. Woodford 
has been assigned as Consul at Bombay, India. 

Knowlton V. Hicks, of New York, N. Y., 
Consul at Halifax, Nova Scotia, Canada, has 
been assigned for duty in the Department of 
State. 

Elizabeth Humes, of Memphis, Tenn., For- 
eign Service Officer at Copenhagen, Denmark, 
has been designated Second Secretary of Le- 
gation at Copenhagen, Denmark. 

Roswell C. Beverstock, of Los Angeles, Calif., 
Vice Consul at Belfast, Northern Ireland, has 
been assigned as Vice Consul at Caracas, 
Venezuela. 

The assignment of Sherburne Dillingham, of 
Millburn, New Jersey, as Vice Consul at Ha- 
bana, Cuba, has been canceled. In lieu thereof, 
Mr. Dillingham lias been designated Third 
Secretary of Embassy at Caracas, Venezuela. 

Non-Career Officers 

Alexander Heard, of Washington, D. C., has 
been appointed Vice Consul at Quito, Ecuador. 

Robert B. Harley, of Lansdowne, Pa., has 
been appointed Vice Consul at Pernambuco, 
Brazil. 

Glenn R. McCarty, Jr., of Des Moines, 
Iowa, has been appointed Vice Consul at 
Bogota, Colombia. 

Alfred W. Wells, of Brewster, N. Y., has 
been appointed Vice Consul at Buenos Aires, 
Argentina. 

Pliilip G. Cottell, of Louisville, Ky., has been 
appointed Vice Consul at Guayaquil, Ecuador. 

Herman Moss, of New York, N. Y., who has 
been serving as Vice Consul at Genoa, Italy, 
has been appointed as Clerk at Rome, Italy. 



Treaty Information 



Compiled in the Treaty Division 



FLORA AND FAUNA 

CONVENTIONS WITH CANADA AND MEXICO 
REGAnOING MIGRATORY BIRDS 

On October 1, 1941 the President, under tlie 
authority granted in the Migratory Bird Treaty 
Act of July 3, 1918, approved and proclaimed 
the regulation submitted to him by the Secre- 
tary of the Interior designating as closed area 
certain lands and waters in Harney County, 
Oregon. 

The proclamation, which concerns tlie migra- 
tory birds included in the Convention for the 
Protection of Migratory Birds Between tlie 
United States and Great Britain, signed in re- 
spect of Canada on August 16, 1916 (Treaty 
Series 628), and in the Convention for the Pro- 
tection of Migratory Birds and Game Mammals 
Between the United States and Mexico, signed 
February 7, 1936 (Treaty Series 912), is printed 
in the Federal Register for October 4, 1941, 
page 5053. 

CONVENTION ON NATURE PROTECTION AND WILDLIFE 
PRESERVATION IN THE WESTERN HEMISPHERE 

Cuba 

The Director General of the Pan American 
Union transmitted to the Secretary of State 
with a letter dated September 30, 1941 cer- 
tified copies of the list of species furnished to 
the Pan American Union by the Government 
of Cuba for inclusion in the Annex to the Con- 
vention on Nature Protection and Wildlife 
Preservation in the Western Hemisphere, which 
was opened for signature at the Pan American 
Union on October 12, 1940. 

The convention has been signed by the United 
States of America, Argentina, Bolivia, Brazil, 
Chile, Colombia, Costa Rica, Cuba, Dominican 
Republic, Ecuador, El Salvador, Guatemala, 
Haiti, Mexico, Nicaragua, Peru, Uruguay, and 
Venezuela. Two countries have deposited in- 



struments of ratification of the convention, the 
United States of America and Guatemala. 
The convention will enter into force three 
months after the deposit of not less than five 
ratifications with the Pan American Union. 

INDIAN AFFAIRS 

CONVENTION PROVIDING FOR THE CREATION OF AN 
INTER-AMEmCAN INDIAN INSTITUTE 

Paraguay 

By a note dated August 18, 1941 the Mexican 
Ambassador at Washington informed tlie Sec- 
retai'y of State that the notice of the adherence 
by Paraguay to the Convention Providing for 
the Creation of an Inter-American Indian In- 
stitute, opened for signature at Mexico City on 
November 1, 1940, was received by the Mexican 
Government on June 17, 1941. 

The convention has been ratified by tlie United 
S.ates of America, El Salvador, Honduras, and 
Mexico, and has been adhered to by Nicaragua, 
Panama, and Paraguay. 

LEGAL ASSISTANCE 

PROTOCOL ON UNIFORMITY OF POWERS OF ATTORNEY 
WHICH ARE TO BE UTILIZED ABROAD 

United States 

On October 3, 1941 the Secretary of State 
signed ad referendum on behalf of the United 
States the Protocol on Uniformity of Powers 
of Attorney which was opened for signature at 
tlie Pan American Union on February 17, 1940. 

The protocol has for its purpose the simpli- 
fication and uniformity of powers of attorney 
which are granted in one American republic 
for utilization in another member country of 
the Pan American Union. The protocol does 
not change the laws of the contracting states so 
far as they regulate powers of attorney executed 
and utilized in a country itself but merely 

2S5 



286 



DEPARTMENT OF STATE BtTLLETrN 



affects those powers of attorney which are pre- 
pared in one republic for use in another. It is 
stipulated that the powers of attorney granted 
in any of the member countries of the Pan 
American Union which are executed in con- 
formity with the rules of the protocol shall be 
given "full faith and credit"' in the other coun- 
tries. Special rules of legalization are not, 
however, dispensed with. 

The United States is the eighth country to 
sign the protocol, the other signatories being 
Bolivia ad referendum, Brazil, Colombia ad 
referendum, El Salvador wd. referendum, Nica- 
ragua ad referendum, Panama ad referendum, 
and Venezuela. 

The protocol exemplifies one of the methods 
by which the Pan American movement o^Derates 
to remove obstacles to trade, commerce, and 
interchange between the American republics 
which result from the existence of different 
legal systems. The protocol grew out of a 
resolution approved in 1933 at Montevideo by 
the Seventh International Conference of 
American States. 

Article XII of the protocol provides that it 
shall become operative in respect of each high 
contracting party on the date of signature by 
such party. Any state desiring to sign the pro- 
tocol ad referendum may do so, in which case 
it shall not take effect with respect to such state 
until after the deposit of the instrument of 
ratification in conformity with its constitutional 
procedure. 

The text of the protocol is printed in the 
Bulletin of March 9, 1940, page 287. 

MUTUAL GUARANTIES 

PROTOCOL BETWEEN JAPAN AND FRANCE REGARDING 
THE JOINT DEFENSE OF FRENCH INDO-CHINA 

There is printed below a translation, as pre- 
pared by the American Embassy at Tokyo, of 
the Franco-Japanese protocol signed at Vichy, 
France, on July 29, 1941, regarding the joint 
defense of French Indo-China : 



Protocol Between Japan and France Regarding the 
Joint Defense of French Indo-China 

The Imperial Japanese Government and the 
French Government, 

Taking into consideration the present 
international situation; 

Recognizing in consequence that should the 
security of French Indo-China be menaced, 
Japan would have reason to consider the gen- 
eral tranquillity in East Asia and its own 
securit}' endangered. 

Renewing on this occasion the engagements 
undertaken, on the part of Japan to respect the 
rights and interests of France in East Asia, 
in particular, the territorial integrity of 
French Indo-China, and the sovereign rights 
of France in all parts of the Union of Indo- 
China, and on the part of France to conclude 
in regard to Indo-China no agreement or 
understanding with a third power which en- 
visages political, economic, or military coopera- 
tion of a character directly or indirectly 
opposed to Japan ; 

Have agreed upon the following dispositions : 

1. The two Governments promise to cooper- 
ate in military matters for the defense of 
French Indo-China. 

2. The measures to be taken for the purposes 
of the aforesaid cooperation shall constitute the 
object of special arrangements. 

3. The foregoing dispositions shall remain in 
effect only so long as the circumstances moti- 
vating their adoption continue to exist. 

In witness thereof the undersigned, duly au- 
thorized by their respective Governments, have 
signed tlie present protocol, which enters into 
effect from this day, and have affixed their seals 
thereto. 

Executed in duplicate, in the Japanese and 
French languages, at Vichy, July 29 of the 16th 
year of Showa, corresponding to July 29, 1941. 

SOTOMATSU KatO [sEAl] 

F. Darlan [seal] ' 



OCTOBER 11, 1941 



287 



POSTAL 

UNIVERSAL POSTAL CONVENTION OF 1939 

By a note dated October 3, 1941 the Swiss 
Minister at Washington informed the Secretary 
of State that the Legation of Slovakia at Bern 
informed the Government of the Swiss Confed- 
eration by a communication dated August 5, 
1941 of the adherence of Slovakia to the Uni- 
versal Postal Convention signed at Buenos Aires 
on May 23, 1939 and to the following arrange- 
ments signed on the same date: 

Arrangement Concerning Insured Letters and 

Boxes 
Arrangement Concerning Parcel Post 
Arrangement Concerning Money Orders 
Arrangement Concerning Postal Cheeks 
Arrangement Concerning Collection Orders 
Arrangement Concerning Subscriptions to News- 
papers and Periodicals 

The Minister enclosed with the above-men- 
tioned note a copy of the notification (No. 
1071/41) from the Slovak Legation, which 
reads in translation as follows : 

"The Legation of the Slovak Republic has the 
honor to advise the Federal Political Depart- 
ment of the following, requesting it to be good 
enough to take the necessary steps. 

"Since June 17, 1939, the Slovak Republic has 
adhered to the Universal Postal Convention, but 
as it was not represented at the Congress oi 
Buenos Aires, its adherence to the convention 
should have been notified to the Government of 
the Argentine Republic before July 1, 1940, 
which it was impossible to do in time. 

"According to article 2 of the agreement of 
Buenos Aires, notification must be given, in such 
case, to the Swiss Federal Government, and the 
said Government shall undertake to advise the 
other Governments which adhere to the con- 
vention. 

"By order of the Slovak Government, the 
Legation of the Slovak Republic has the honor 
to transmit to the Federal Political Department 
the document pertaining to the adherence, with 
the request that it be good enough to make 
known its contents to the other governments 
concerned and to advise this Legation of the 
said notification. 



"The Legation of the Slovak Republic hastens 
to thank the Federal Political Department and 
avails itself of this opportunity to renew to it 
the assurances of its high consideration." 



Publications 



Department of State 

Collection and Application of the Customs Revenues 
of the Dominican Republic: Convention Betveeen the 
United States of America and the Dominican Republic 
Modifying the Convention of December 27, 1924, and 
exchanges of notes — Convention signed at Washington 
September 24, 1940; proclaimed by the President 
March 17, 1941. Treaty Series 965. 29 pp. 100. 

Other Government Agencies 

The St. Lawrence Survey, Part III : Potential Traffic 
on the St. Lawrence Seaway. (Department of Com- 
merce.) X, 342 pp., tables. 400. 

International Reference Service, Vol. 1. (Depart- 
ment of Commerce : Bureau of Foreign and Domestic 
Commerce.) Paper, 50 single copy ; $6 a year. 

41. Income and excess profits taxes in Australia. 

13 pp. 

42. Preparing shipments to Canada. 33 pp. 

43. Economic conditions in Paraguay in 1940. 5 pp. 

44. Economic conditions in Nicaragua in 1940. 

6 pp. 

Inter-American Maritime Conference, Washington, 
D. C, Nov. 25-Dec. 2, 1940 : Report of delegates of the 
United States. (Maritime Commission.) xiv, 479 pp., 
illus., 2 pi. Free. 

Brazil. [Foreign trade of Brazil for 1939 and 1&40]. 
(Pan American Union.) [Foreign trade series no. 188.] 
cover title, 16 pp., illus. Paper, 50. 

Guatemala. [Foreign trade of Guatemala for 1938 
and 1939]. (Pan American Union.) [Foreign trade 
series no. 190.] cover title, 11 pp., illus. Paper, 50. 

Nicaragua. [Foreign trade of Nicaragua for 1938 
and 1939]. (Pan American Union.) [Foreign trade 
series no. 189.] cover title, 15 pp., illus. Paper, 50. 

United States Imports From Asia, 193S-40 : compila- 
tion of United States import statistics for all com- 
modities imported principally from Asia, arranged 
according to relative importance of geographic regions 
of Asia as sources of supply. (Tariff Commission.) 
iv, 90 pp., 2 pi. [Processed.] Free. 

Latin America as a Source of Strategic and Other 
Essential Materials : report on strategic and other es- 
sential materials, and their production and trade, with 



288 



DEPARTMENT OF STATE BULLETIN 



specinl reference to Latin American countries and to 
the United S::ates, under general provisions of Sec. 332, 
title 3, pt. 2, tariff act of 1930. lOil. (Tariff Com- 
mission.) [Report 144, 2d series.] Ix, 397 pp., illus., 
1 pi. Paper, 50(f. 



Legislation 



Amending the Nationality Act of 1940 [to preserve 
the nationality of a naturalized wife, husliand, or child 
under 21 years of age residing abroad with husband 
or wife a native-born national of the United States]. 
(H. Kept. 1240, 77th Cong., 1st sess., on IL R. 5554.) 
[Incorporates letter from the Acting Secretary of State 
dated July 30, 1941 in support of legislation, with 
suggested amendment.] 3 pp. 

Defense of the Philippine Islands. (S. Rept. 700, 
77th Cong., 1st sess., on S. 1929.) 4 pp. 

Second Supplemental National Defense Appropria- 
tion Bill for 1042, Including Defense Aid (Lcnd-Lcase) 
Appropriations : 

Hearings Before the Subcommittee of the Com- 
mittee on Appropriations, Uouse of Representa- 
tives, 77th Coug., 1st sess., September 23, 1941 [in- 



cludes statements by Dean Aeheson, Assistant Sec- 
retary of State, and Laurence Duggan, Adviser on 
Political Relations, Department of State, pp. 360- 
379]. ii, 461 pp. 

H. Rept. 1230, 77th Cong., 1st sess., on H. R. 5788. 
25 pp. 
Arming of American-Flag Ships Engaged in Foreign 
Commerce : Message From the President of the United 
States Transmitting a Recommendation for the Repeal 
of Section G of the Act of November 4, 1939, Which 
Prohibits the Arming of American Flag Ships Engaged 
in Foreign Commerce. (H. Doc, 404, 77th Cong., 1st 
sess.) 4 pp. 



Regulations 



International Traffic in Arms : Amendment to the 
regulations of November 6, 1939. October 2, 1941. 
(Department of State.) 6 Fidernl Register 50>5. 

Transactions in Foreign Exchange: Regulations gov- 
erning general licenses under Executive Order S383, 
April 10, 1910, as amended, and regulations issued 
lursuant thereto. October 9, 1941. (Treasury De- 
partment.) Federal Register 51S0-5181. 



U. %. t^O^ZHUUZn" PRi*<TiNC OFFICE; 1941 



For sale by the Superintendent of Documents, Washington. D. C. — I'rico 10 cents Subscription piice, $2.73 a year 

PUBLISHED WEEKLY WITH lUE AFPSOVAL OF THE DIIIECIOB OF TBG BDBEAU OF THE BDOCET 



^^S3, 1 n 30 



THE DEPARTMENT OF STATE 

BULLETIN 



OCTOBER 18, 1941 
Vol. V, No. 121— Publication 1651 







ontents 




National Defense ?»£„ 

Arming of American-flag ships engaged in foreign com- 
merce: Statement by the Secretary of State. . . 291 

American Republics 

Statement by the Secretary of State regarding recent 

events in Panama 293 

Visit to the United States of Vice President of Peru. . 295 
Visit to the United States of Ai'gentine Deputies . . . 295 
Aviation training for citizens of other American 

republics 296 

Europe 

Removal of American Embassy staff from Moscow . . 296 
Assistance to the Soviet Union 296 

General 

Nationality Act of 1940 296 

Commercial Policy 

Trade agreement with Argentina: 

Signing of the agreement 297 

Message from the President of the United States . . 300 
Statement by the Vice President of Argentina . . . 300 
Statement by the Secretary of State of the United 

States 300 

Messages exchanged by the Secretary of State of the 
United States and the Minister of Foreign Affairs 

and Worship of Argentina 301 

Publication of text and analysis of agreement . . . 301 

International Wheat Meeting 302 

(ovek] 



I'i^V ij4^ 



fh 7lf e? liS-CONTINUED 



Treaty Information Page 
Flora and fauna: Conventions with Canada and Mexico 

regarding jMigrator_y Birds 302 

Finance: Taxation Convention With Great Britain . . 302 
Indian affairs: Convention Providing for an Inter- 
American Institute 303 

Commerce: Trade agreement with Argentina 303 

Sovereignty: Convention and tlie Act of Habana Con- 
cerning tiie Provisional Administration of Euro- 
pean Colonies and Possessions in the Americas . . 303 

The Foreign Service 

Personnel changes 303 

Regulations 304 

Publications 304 

Legislation 304 



National Defense 



ARMING OF AMERICAN-FLAG SHIPS ENGAGED IN FOREIGN COMMERCE 
STATEMENT BY THE SECRETARY OF STATE > 



[Released to the press October 13] 

The purpose of this bill is to repeal section 6 
of the Neutrality Act of 1939 prohibiting the 
arming of our merchant vessels engaged in for- 
eign commerce. The provisions of this section 
had their origin in section 10 of the act of 1937, 
which had made it unlawful for American ves- 
sels engaged in commerce with a "belligerent" 
state to be armed. The act of 1939 broadened 
that provision by making it unlawful for an 
American vessel engaged in commerce "with any 
foreign state" to be armed. This makes it 
impossible for American merchant vessels to 
defend themselves on the high seas against 
danger from lawless forces seeking world- 
domination. 

The neutrality acts did not remotely contem- 
plate limiting the steps to be taken by this 
country in self-defense, especially were there to 
develop situations of serious and immediate 
danger to the United States and to this hemi- 
sphere. There was never any thought or inten- 
tion to abandon to the slightest extent the full 
right of our necessary self-defense. 

At the time when these acts were passed many 
people believed that reliance could be placed 
on established rules of warfare. One of those 
rules was and is that merchant vessels, while 
subject to the belligerent right of visit and 
search, should not be sunk except under certain 
specified conditions and limitations. We re- 
membered then, as we do now, what had hap- 
pened during the ruthless submarine warfare of 
the AVorld War. We attached importance, how- 



' Delhered before the Committee on Foreign Affairs 
of the House of Representatives during hearings on H.J. 
Res. 237. 

422105 — 41 1 



ever, to the fact that during the years that fol- 
lowed the World AVar an effort was made to 
reduce to binding conventional foi'm certain 
rules theretofore understood to be binding on 
belligerents. In the London Naval Treaty of 
1930, provisions were incorporated in part IV 
stating that the following were accepted as es- 
tablished rules of international law : 

" (1) In their action with regard to merchant 
ships, submarines must conform to the rules of 
International Law to which surface vessels are 
subject. 

"(2) In particular, except in the case of per- 
sistent refusal to stop on being duly summoned, 
or of active resistance to visit or search, a war- 
ship, whether surface vessel or submarine, may 
not sink or render incapable of navigation a 
merchant vessel without having first j^laced pas- 
sengers, crew and ship's papers in a place of 
safety. For this purpose the ship's boats are not 
regarded as a place of safety unless the safety 
of the passengers and crew is assured, in the 
existing sea and weather conditions, by the 
proximity of land, or the presence of another 
vessel which is in a position to take them on 
board." 

The action taken was the outgrowth of steps 
initiated at the Conference on the Limitation 
of Armament held in Washington in 1921-22. 
In 1936 the above-quoted rules were incorpo- 
rated in a protocol concluded at London, which 
was signed or adhered to by 47 nations, includ- 
ing the United States, Great Britain, France, 
Germany, and Italy. 

Despite this solemn commitment of the pow- 
ers as to the rules which should govern sub- 
marines, the German Government is today, and 

291 



292 

has been throughout the course of the present 
war, sinking defenseless merchant vessels, in- 
cluding vessels of the United States and of other 
American republics, either without warning or 
without allowing the passengers and crews a 
reasonable chance for their lives. We are, there- 
fore, confronted with a situation where a 
gigantic military machine has been thrown 
against peaceful peoples on land and on sea in 
a manner unprecedented in the annals of his- 
tory. Submarines, armed raiders, and high- 
powered bombing planes are inflicting death 
and destruction in a manner which would put 
to shame the most ruthless pirates of earlier 
days. 

The provisions of section 6 of the Neutrality 
Act are not called for under international law. 
They were adopted by our own choice. They 
now serve no useful purpose. On the contrary, 
they are a handicap. They render our mer- 
chant vessels defenseless and make them easier 
prey for twentieth-century pirates. 

It is our right to arm our vessels for purposes 
of defense. That cannot be questioned. We 
have, since the beginning of our independent 
existence, exercised this right of arming our 
merchant vessels whenever, for the purpose of 
protection, we have needed to do so. For ex- 
ample, in 1798 when depredations on our com- 
merce were being committed by vessels sailing 
under authority of the French Republic, the 
Congress, after the expulsion of the French Con- 
suls from the United States, passed, upon rec- 
ommendation of President Adams, an act per- 
mitting the arming of our merchant vessels for 
the purpose of defense against capture as well 
as to "subdue and capture" any armed vessel 
of France. The courts of France then held that 
the arming of American vessels for these pur- 
poses did not render such vessels liable to con- 
demmition when captured by French men-of- 
war. 

In addition to what I have just said it is well 
known that since section 6 of the Neutrality Act 
was adopted entirely new conditions have de- 
veloped. Section 6 must, therefore, be recon- 
sidered in the light of these new conditions and 
in the light of later legislation and executive 



DEPARTMENT OF STATE BULLETIN 

responsibilities thereimder. The new condi- 
tions have been produced by the Hitler move- 
ment of world invasion. Hitler is endeavoring 
to conquer the European and African and other 
Continents, and he therefore is desperately seek- 
ing to control the high seas. To this end he 
lias projected his forces far out uito the Atlan- 
tic with a policy of submarine lawlessness and 
terror. This broad movement of conquest, 
world-wide in its objectives, places squarely be- 
fore the United States the urgent and most im- 
portant question of self-defense. We cannot 
turn and walk away from the steadily spread- 
ing danger. Both the Congress and the Execu- 
tive have recognized this change in the situa- 
tion. The Congress has enacted and the Ex- 
ecutive is carrying out a policy of aiding Great 
Britain and other nations whose resistance to 
aggression stands as the one great barrier be- 
tween the aggressors and the hemisphere whose 
security is our security. 

The theory of the neutrality legislation was 
that by acting within the limitations which it 
prescribed we could keep away from danger. 
But danger has come to us — has been thrust 
upon us — and our problem now is not that of 
avoiding it but of defending ourselves against 
a hostile movement seriously threatening us and 
the entire Western Hemisphere. 

The blunt truth is that the world is steadily 
being dragged downward and backward by the 
mightiest movement of conquest ever attempted 
in all history. Armed and militant predatory 
forces are marching across continents and in- 
vading the seas, leaving desolation in their wake. 
With them rides a policy of frightfulness, pil- 
lage, murder, and calculated cruelty which fills 
all civilized mankind with horror and indigna- 
tion. Institutions devoted to the safeguarding 
and promotion of human rights and welfare 
built up through the ages are being destroyed 
by methods like those used by barbarian in- 
vaders 16 centuries ago. 

To many people, especially in a peace-loving 
country like ours, this attempt at world-con- 
quest, now proceeding on an ever-expanding 
s-cale, appears so unusual and unprecedented 
that they do not at all perceive the danger to 



OCTOBER 18, 1941 

this country that this movement portends. This 
failure to realize and comprehend the vastness 
of the plan and the savagery of its unlimited 
objectives has been, and still is, the greatest sin- 
gle source of peril to those free peoples vfho are 
yet unconquered and who still possess and enjoy 
their priceless institutions. If the 16 nations 
that already have been overrun and enslaved 
could break their enforced silence and speak to 
us, they would cry out with a single voice, "Do 
not delay your defense until it is too late." 

The Hitler government is engaged in a pro- 
gressive and widening assault carried out 
through unrestricted attacks by submarines, sur- 
face raiders, and aircraft at widely separated 
points. The intent of these attacks is to in- 
timidate this country into weakening or aban- 
doning the legitimate defenses of the hemi- 
sphere by retreating from the seas. In defiance 
of the laws of the sea and the recognized rights 
of all nations, the Hitler government has pre- 
sumed to declare on paper that great areas of 
the ocean are to be closed and that no ships may 
enter those areas for any purpose except at peril 
of being sunk. This pronouncement of indis- 
criminate sinking makes no distinction between 
armed and unarmed vessels, nor does the actual 
practice of the German Government make any 
such distinction. Since vessels are thus sunk 
whether armed or unarmed, it is manifest that 
a greater degree of safety would be had by 



293 

arming them. Moreover, Germany carries her 
policy of f rightfulness, especially in the Atlan- 
tic, far outside of these paper areas. 

We are confronted with a paramount prob- 
lem, and we must be guided by a controlling 
principle. The problem is to set up as swiftly 
as possible the most effective means of self-de- 
fense. The principle is that the first duty of an 
independent nation is to safeguard its own 
security. 

In the light of these considerations, further 
revision of our neutrality legislation is now im- 
peratively required. Now, as in earlier times, 
necessary measures on land and sea for the de- 
fense of the United States and of the other inde- 
pendent nations of this hemisphere must be 
taken, in accordance with the wise, settled, and 
traditional policy of our Eepublic. 

We are today face to face with a great emer- 
gency. We should not sit with our hands tied 
by these provisions of law. 

If Hitler should succeed in his supreme pur- 
pose to conquer Great Britain and thus secure 
control of the high seas, we would suddenly find 
the danger at our own door. 

Provisions of the Neutrality Act must not 
prevent our full defense. Any that stand in the 
way should be promptly repealed. I support 
the pending proposal to repeal section 6. My 
own judgment is that section 2 also should be 
repealed or modified. 



American Republics 



STATEMENT BY THE SECRETARY OF STATE REGARDING RECENT EVENTS 

IN PANAMA 



[Released to the press October 16] 

My attention has been called to an article 
which appeared in one of the local newspapers 
this morning ^ regarding recent events in the Re- 
public of Panama. I am profoundly shocked 
by the glaring inaccuracies and wilful misrep- 



' Under the heading "Probes Sought of U.S. Part in 
Coup That Ousted Arias". 



resentationS set forth in that article. Without 
any attempt to verify the facts or even to con- 
sult with the competent officials of this Gov- 
ernment, the writer of this article presumes to 
place in question the good faith of the United 
States Government. It is deplorable that un- 
true statements of this character should appear 
in print, particularly when they are of a char- 
acter to undermine our national reputation and 



294 



DEPARTMENT OF STATE BULLETIN 



give aid and comfort to forces inimical to the 
United States. The matters touched upon in 
this case are so important and affect so vitally 
the faith and integrity of the United States, 
that I do not feel that I can properly let them 
pass unnoticed. 

I refer, of course, to the attempt which is being 
made to make political capital out of the recent 
events in Panama. Lest any individual be mis- 
led by such unfair tactics, I state clearly and 
categorically for the record that the United 
States Government has had no connection, direct 
or indirect, with the recent governmental 
changes in the Republic of Panama. This state- 
ment is borne out by the official telegraphic 
reports from our Embassy at Panama during 
recent days, a summary of which I shall lay 
before you freely and frankly. 

On October 7 a brief message was received 
from Ambassador Wilson indicating that he 
had received information from reliable sources 
for the first time indicating disaffection among 
Panamanian officials and the possibility of a 
movement against the Government. On the 
same day later information was received to the 
effect that a passenger by the name of A. Madrid 
taking the Pan American plane for Habana that 
morning was in fact President Arnulfo Arias. 
The Ambassador commented that this infor- 
mation did not necessarily bear any relation 
to the rumor reported earlier in the day, and 
that the President may merely have wished to 
make a brief visit to Cuba for personal reasons. 

The same evening the Department informed 
our Embassy at Habana of President Arias' 
trip, stating that it might be merely a brief vaca- 
tion trip, although there had been some reports 
of political unrest in Panama. 

On October 9 Ambassador Wilson reported 
that he had received a call at 8 : 30 a.m. that day 
from high officials of the Panamanian Govern- 
ment, who informed him that because of the 
Government of Panama's being without a head 
and because of popular demand for a change, 
the leaders of the Government had decided to 
take over the power in order to maintain public 
order. They inquired as to how this movement 
would be regarded in the United States. The 



Ambassador called the attention of these offi- 
cials to the well-known policy of the United 
States to refrain from interfering in the in- 
ternal affairs of other countries, emphasizing 
that our desire was to cooperate loyally with all 
the American republics on a basis of complete 
equality and respect for each other's rights. 
The Ambassador went so far as to state that he 
would not depart an inch from this basic policy, 
irrespective of what apparent inducements of 
gain or advantage might be offered the United 
States. 

Further developments in the appointment of 
new officials were reported by the Ambassador 
later that day, October 9. 

That same night Ambassador Wilson referred 
to the pertinent constitutional provisions, spe- 
cifically article III of the Panamanian Consti- 
tution of January 2, 1941. He reported the 
position taken by the Panamanian officials to the 
effect that the President, having left the country 
without permission of the National Assembly 
and without permission of the Supreme Court 
during the present recess of the National As- 
sembly, had effectively separated himself from 
the exercise of his functions; and that, accord- 
ingly, under article 114 of the Constitution, the 
power fell to the Second Designate, Mr. Jaen 
Guardia. 

Mr. Jaen Guardia, having been sworn in as 
President and having appointed his Cabinet, 
resigned his post, and the Cabinet thereupon 
elected one of its members, Ricardo Adolfo de 
la Guardia, to exercise the pi'esidency, in ac- 
cordance with the procedure established in arti- 
cle 116 of the Constitution. 

Inasmuch as the procedure followed appeared 
at all stages to be in conformity with Pana- 
manian constitutional requirements, our Em- 
bassy and the Department felt that the only 
proper position to take was that of merely con- 
tinuing normal relations with the Government 
of Panama. Any other action would have lent 
itself to undesirable interpretations of inter- 
ference with internal political affairs. 

From the foregoing summary of events it will 
be quite apparent to any fair and unbiased ob- 
server that the United States Government has 



OCTOBER 18, 1941 



295 



in no way deviated from its basic and funda- 
mental policy of non-interference in the internal 
political affairs of the other American republics. 
One can only speculate on the motives of unin- 
formed people who deliberately choose to ex- 
press a different interpretation. 

In this connection I believe it of interest to 
quote an excerpt from a report appearing in the 
Berlin Deutsches Nachrechten Buro of October 
10 following the recent events in Panama : 

"It is clear and beyond doubt that the United 
States used a temporary absence of the Presi- 
dent of Panama, who was inconvenient to it, to 
stage a putsch in this small Central American 
Republic." 

VISIT TO THE UNITED STATES OF VICE 
PRESIDENT OF PERU 

[Released to the press October 16] 

Seiior Eafael Larco Herrera, First Vice Pres- 
ident of Peru, arrived in Los Angeles on Octo- 
ber 13 from ]\Iexico City on a visit to the United 
States. He was met at Glendale Airport, Los 
Angeles, by Mayor Bowron of Los Angeles; a 
representative of the Governor of California; 
Mr. Max de la Fuente, Peruvian Consul in Los 
Angeles; and Capt. Albert P. Ebright, United 
States Army, who will accompany Senor Larco 
during his tour of the United States. 

The Vice President is visiting the United 
States in order to obtain first-hand information 
regarding the policies and program of the 
United States with respect to the present inter- 
national situation. 

Accompanied by Captain Ebright and Mr. 
de la Fuente, he inspected airplane plants in 
San Diego and Los Angeles on October 14 and 
15. Subsequently he will visit San Francisco, 
Rochester (Minn.), Chicago, Detroit, Montreal, 
New York, Washington, and Miami, leaving 
Miami by air on November 2 for Buenos Aires 
and Santiago, and thence to Lima. 

In addition to his post as Vice President, 
Senor Larco is a member of the Advisory Com- 
mittee on Foreign Relations. He is also Presi- 
dent of the Board of Directors of the daily La 
Cronica, a staunch and consistent supporter of 



the democratic cause and outstanding in impor- 
tance in Peru. Senor Larco is a student of 
archaeology and a liberal patron of Peruvian 
arts. He has received the grade of Chevalier of 
the Legion of Honor of France. 

Three sons of the Vice President were edu- 
cated at Cornell University. 

VISIT TO THE UNITED STATES OF 
ARGENTINE DEPUTIES 

[Released to the press October 17] 

On the invitation of the Speaker of the United 
States House of Representatives, the Honorable 
Sam Rayburn, a group from the Chamber of 
Deputies of the Argentine Republic accom- 
panied by members of their families will visit 
the United States for about three weeks, arriv- 
ing on board the S.S. Brazil in New York Har- 
bor on October 20. A reception committee has 
been appointed by the Speaker of the House to 
greet the Deputies in New York and will ac- 
company them to Washington, where they will 
be met in the President's reception room by the 
Speaker; the Chairman of the Foreign Affairs 
Committee of the House, the Honorable Sol 
Bloom, and other American officials ; and mem- 
bers of the Argentine Embassy. 

Representative Laurence F. Arnold, a mem- 
ber of the Foreign Affairs Committee, will head 
the reception committee in New York and will 
be accompanied by Mrs. Arnold. Ambassador 
Espil of Argentina; Senor Conrado Traverso, 
Consul General of Argentina at New York ; the 
Sergeant at Arms of the House of Representa- 
tives, Mr. Kenneth Romney; Mr. John J. 
Clisham, Secretary of the New York Pan Amer- 
ican Society; and Mr. Stanley Woodward, of 
the Department of State, Washington, will be 
other members of the committee. The Argen- 
tine Deputies are accompanied by William 
Barnes, Third Secretary of the American Em- 
bassy in Buenos Aires, as Liaison Officer. Mr. 
Barnes and Mr. Cornelius Bodine, Jr., an as- 
sistant in the Protocol Division of the Depart- 
ment of State, have been assigned to the delega- 
tion throughout the visit, which will end when 
the Deputies sail on the S.S. Uruguay from 
New York, November 8. 



296 



DEPAETMENT OF STATE BULLETIN 



AVIATION TRAINING FOR CITIZENS 
OF OTHER AMERICAN REPUBLICS 

A plan for increased cooperation with the 
other American republics which will bring 
young men from those countries to be trained in 
the United States as pilots and aviation tech- 
nicians will be put into operation early in 1942, 
under the sponsorship of the Interdepartmental 
Committee on Technical Aviation Training for 
Citizens of the Latin American Republics. 

The program, which calls for the training of 
around 500 pilots, aeronautical administrative 
engineers, instructor mechanics, and airplane- 
service mechanics, will offer courses varying in 
length from six months to two years and will 
be under the supervision of the Army Air Corps 
and the Civil Aeronautics Administration. 

Applicants are to be apportioned among the 
20 other American republics, taking into consid- 
eration the need of each for trained personnel, 
and selection boards will be set up in each coun- 
try to consider applicants and award scholar- 
ships on a competitive basis. 

Members of the Interdepartmental Conunit- 
tee are as follows: Thomas Burke, Chief, Divi- 
sion of International Communications, Depart- 
ment of State; William Barclay Harding, Vice 
President, Defense Supplies Corporation, rep- 
resenting the Coordinator of Inter-American 
Affairs; Maj. Eugene E. Gillespie, Air Corps, 
War Department, also representing Navy De- 
partment; G. Grant Mason, Member, Civil 
Aeronautics Board; and Brig. Gen. Donald H. 
Connolly, Administrator of Civil Aeronautics. 



Europe 



REMOVAL OF AMERICAN EMBASSY 
STAFF FROM MOSCOW 

[Released to the press October 17] 

The Department of State has received in- 
formation that Ambassador Steinhardt, with 
other members of the Diplomatic Corps, has 



left Moscow for a point eastward from the Capi- 
tal at the request of the Soviet Government. He 
is accompanied by members of the Embassy 
staff with the exception of the following who 
are remaining in Moscow for the time being: 

Second Secretary Thompson 

Third Secretary Reinhardt 

Clerks Waddell, Morgan, and Leino 

The military and naval attaches accompanied 
the Ambassador. On the same train were high 
officials of the People's Commissariat for For- 
eign Affairs, members of the American Supply 
Mission, two rejaresentatives of the American 
Red Cross, and the following American corre- 
spondents: Messrs. Carroll, Cassidy, McElvoy, 
Magidoff, Moats, Shapiro, Sulzberger, Steel, 
Reynolds, and Handler. 

ASSISTANCE TO THE SOVIET UNION 

[Released to the press by the White House October 13] 

The President announced on October 13 that 
within the few days prior to that date large 
amounts of supplies had been sent to Russia. 
He further stated that all of the munitions, in- 
cluding tanks, airplanes, and trucks, promised 
at the Moscow conference for delivery in Oc- 
tober, will be sent to Russia before the end of 
the month. These supplies are leaving United 
States ports constantly. 

The staffs of the Array and the Maritime 
Commission have worked over the past week- 
end rushing supplies to the seaboard, and every- 
thing possible is being done to send material to 
Russia to help the brave defense which continues 
to be made. 



General 



NATIONALITY ACT OF 1940 

An alien spouse of a citizen of the United 
States who is abroad in the employment of the 
Government of the United States is required to 
prove as a condition precedent to naturalization 
that he or she legally entered the United States 



OCTOBER 18, 1941 



297 



for permanent residence under the immigration 
laws, according to an opinion of the Attorney 
General of May 26, WiU 

Section 312 of the Nationality Act of 1940, 
which is one of the 17 sections of the act dealing 
with the naturalization of special classes of 
aliens, expressly exempts aliens of the class men- 
tioned above from two requirements — necessity 
of declaration of intention, and prior residence, 
or proof thereof, within the United States or 
within the jurisdiction of the naturalization 
court. 

The Attorney General says that it is his belief 



that if Congress had intended to extend addi- 
tional exemptions it would have done so by ex- 
l^ress language. He continues : "Of significance, 
also, is the fact that alien spouses of citizens 
other than those mentioned in section 312 are 
not exempted from the requirement here in ques- 
tion. The other exemptions in section 312 being 
expressly granted, it is my opinion that the im- 
plied gi'ant to spouses of one class of citizens of 
an exemption not granted to those of other 
classes should not be read into the section unless 
the purpose to grant it appears by clear implica- 
tion. I find no such implication." 



Commercial Policy 



TRADE AGREEMENT WITH ARGENTINA 

SIGNING OF THE AGREEMENT 



[Released to the press October 14] 

A reciprocal trade agreement between the 
United States and Argentina was signed Octo- 
ber 14, 1941 at Buenos Aires by Norman Ar- 
mour, Ambassador Extraordinary and Plenipo- 
tentiary of the United States of America to the 
Argentine Kepublic, and His Excellency Senor 
Dr. Don Enrique Kuiz-Guiiiazii, Minister of 
Foreign Affairs and Worship of the Argentine 
Nation. 

This agreement, which is designed to improve 
trade relations between the two countries dur- 
ing the present emergency and after the war, 
represents a significant forward step in the car- 
rying out of the broad program of cooperation 
between the democracies of the Western Hemi- 
sphere. 

As a result of the agreement, American ex- 
porters of many products will benefit from the 
duty reductions, and assurances against duty 
increases, specifically provided for in schedule 
I and a related note. Furthermore, exchange 
will be made available, at least in limited 
amounts in accordance with Argentina's ex- 



' 40 Op. Att. Gen., No. 29. 
422105 — 41 2 



change availabilities, for every product listed in 
schedule I of the agreement as well as many 
products not listed in that schedule. 

American exporters to Argentina will bene- 
fit generally from important assurances con- 
tained in the general provisions of the agree- 
ment. Prominent among these is the general 
assurance against discriminatory tariff, ex- 
change, or quota treatment; in other words, 
the general assurance of unconditional most- 
favored-nation treatment. The only special 
exceptions to this assurance are dealt with in 
two exchanges of notes, one of which provides 
in substance that during the present emergency 
and so long as the proceeds of Argentine ex- 
ports to the United Kingdom are blocked by 
that country, the Government of the United 
States will not invoke the most-favored-nation 
provisions of the agreement in respect of Ar- 
gentine exchange or quota treatment of imports 
from the sterling area ; and the other of which 
relates to Argentina's special trade relations 
with contiguous countries and Peru. 

To the extent that the agreement facilitates 
an increase in Argentine exports to the United 
States, Argentina's purchasing power for many 



298 



DEPARTMENT OF STATE BULLETIN 



products needed from the United States, in- 
cluding some things not now obtainable from 
Europe, will be increased. Such increased pur- 
chasing power will benefit American exporters, 
and at the same time increased supplies from 
Argentina will benefit American consumers and 
American industries dependent upon in^ported 
materials. Nevertheless, if, as a result of the 
concession granted, imports of a particular 
product should enter in such quantities and 
under such conditions as to threaten serious in- 
jury to domestic producers, appropriate action 
could be taken to remedy the situation. 

This agreement, the twelfth to be concluded 
with another American republic, will go into 
effect provisionally on November 15, 1941 and 
will enter into full force 30 days after exchange 
of the instrument of ratification of the Argen- 
tine Government and the proclamation of the 
agreement by the President of the United States. 
Subject to certain special provisions, it will re- 
main in force until November 15, 1944 and may 
continue in force indefinitely thereafter. 

The tariff concessions obtained include bene- 
fits for United States exports in the form of re- 
ductions in, or bindings against increase of, 
Argentine customs duties on a list of 127 tariff 
items covering products which in 1940 accounted 
for about 30 percent of total United States 
exports to Argentina, or 32 out of 106 million 
dollars. Among these concessions are those ben- 
efiting American exports to Argentina of fresh 
apples, pears, grapes, raisins, prunes, tobacco, 
motor vehicles and parts, automatic refrigera- 
tors, certain items of electrical machinery and 
apparatus, agricultural and industrial machin- 
ery, office appliances, and forest products. 

In return, Argentina is granted reductions in 
duties or assurances of the continuance of exist- 
ing tariff treatment on a list of 84 tariff items 
covering products which in 1938 and 1939 ac- 
counted for about 93 percent of total United 
States imports from Argentina and in 1940 ac- 
counted for about 75 percent of such imports. 
The principal concessions include tariff reduc- 
tions on flaxseed, canned corned beef, coarse 



wools, quebracho extract, casein, tallow, oleo oil 
and oleo stearin, cattle hides, Italian-type 
cheeses, and binding on the free list of a con- 
siderable number of products, including furs 
and skins and various animal by-products. 

In part because of existing abnormal condi- 
tions affecting international trade, the agree- 
ment contains certain special provisions not pre- 
viously included in trade agreements negotiated 
under the authority of the Trade Agreements 
Act. Among these are the following : 

(1) Provision for consultation regarding all 
matters affecting the operation of the agreement 
through the medium of a mixed commission con- 
sisting of representatives of each Government; 

(2) A separate schedule of concessions 
(schedule III) granted by the United States to 
Argentina on a list of products (principally 
wines and liqueurs, Italian-type cheeses, maca- 
roni and similar products, and sunflower oil) 
in respect of which previous principal sources 
of supply are curtailed because of the war and 
which accordingly are made subject to modifi- 
cation or termination by the United States on 
six months' notice at any time after the termi- 
nation of hostilities between the United King- 
dom and Germany; and 

(3) Provision that a specified proportion of 
the full tariff reductions granted by Argentina 
to the United States (schedule I) shall not be- 
come effective until Argentine customs revenue 
from imports again equals, in a calendar year, 
at least 270 million paper pesos, which amount 
approximates the annual average customs reve- 
nue in the 10-year period 1931-40 and is about 
40 million pesos higher than the receipts in 1940. 

The United States and Argentina are impor- 
tant markets for each other's products, and the 
concessions made by the two countries in the 
agreement cover a substantial proportion of that 
trade. The volume and value of the trade have 
fluctuated widely, largely with changes in 
tariffs and other trade restrictions and, since 
many products imported from Argentina are 
raw materials used by United States industries, 
with the level of industrial activity in the 
United States. 



OCTOBER 18, 1941 



299 



A high level of trade between the two coun- 
tries was reached in the 1920's, with 1929 the 
peak year. The value declined abruptly after 
the enactment of our Tariff Act of 1930 and 
during the depression of the early 1930's. It re- 
covered somewhat, with industrial recovery in 
the United States, from a low point in 1932 to 
almost pre-depression levels in 1937, but suffered 
another check in 1938 with the industrial reces- 
sion in this country. Since 1938 the value of the 
trade has risen each year, in 1940 and 1941 partly 
because of the effects of the European war. 

The ainiual average combined value of United 
States exports to Argentina and imports from 
that country during the five-year period 1925-29 
was 265 million dollars, with a high of 328 mil- 
lion dollars in 1929. In the period 1930-34 the 
annual average was only 96 million dollars, and 
a low of 47 million was reached in 1932. During 
the next five years, 1935-39, the annual average 
was 146 million dollars, and in 1940 the figure 
was 190 million dollars. In the first six months 
of 1941 total trade between the two countries 
amounted to more than 119 million dollars. 

United States exports to Argentina 

United States exports to Argentina have fluc- 
tuated somewhat less widely than have imports 
from that country, yet they have ranged from a 
value of 31.1 million dollars in 1932 to a high of 
210.3 million in 1929. In the past decade they 
have not reached the levels attained in 1925-29, 
when they averaged 169 million dollars a year. 
In 1930-34 the annual average was 58.7 million 
dollars, and in 1935-39 it moved upward to 71.6 
million. In 1940 United States exports to 
Argentina were valued at 107 million dollars, 
and in the first six months of 1941, 37 million 
dollars. 

Viiited States imports from Argentina 

Imports into the United States from Argen- 
tina have ranged in value from a low of 15.8 
million dollars in 1932 to a high of 138.9 million 
in 1937, when imports of Argentine agricultural 
products to replace in part the crops destroyed 
by drought in the United States were unusually 
large. The annual average value of United 



States imports in 1925-29 was 96.5 million dol- 
lars. This average declined to 37.4 million dol- 
lars in 1930-34 and rose to 74.6 million in 
1935-39. The value of United States imports 
from Argentina was 83.3 million dollars in 1940 
and 82.4 million dollars in the first six months 
of 1941. 

General excess of exports over imports in trade 
ivith Argentina 

Except in three years of the period 1925-40, 
the value of United States exports to Argentina 
has exceeded the value of imports from that 
country. The three exceptional years were 1935, 
1936, and 1937, when the United States imported 
unusually large quantities of agricultural prod- 
ucts because of the droughts in this country. In 
the period 1925-29 the annual average export 
balance of the United States in its trade with 
Argentina was 72.5 million dollars. In the five 
years 1930-84 the balance declined to an annual 
average of 21.3 million dollars as the total trade 
volume reached low levels. In 1935-39, very 
largely because of the three exceptional years of 
import balances, there was an average annual 
import balance of 2.9 million dollars. 

In 1940 the value of United States exports to 
Argentina exceeded the value of imports from 
that country by 23.6 million dollars, but for the 
first six months of 1941 the United States had 
an import balance of 45 million dollars. 

United States share of Argentine exports and 
imports 
In 1929 and 1930 the United States supplied a 
greater share of imports into Argentina than did 
any other country, the United Kingdom being 
second. But from 1931 through 1939 (he United 
States took second place and the United King- 
dom first. In 1940 this country again exceeded 
all other countries as a source of imports into 
Argentina. Tliroughout the period 1929-40 the 
United Kingdom and other European countries 
took the major part of the exports of Argentina. 
However, the United States ranked second in 
six of these years. In the first six months of 
1941, the United States took first place as a 
market for Argentine products. 



300 



DEPARTMENT OF STATE BXJLLETIN 



MESSAGE FROM THE PRESIDENT OF THE UNITED STATES 



[Released to the press October 14] 

The text of a message from the President of 
the United States of America to His Excellency 
Dr. Ramon Castillo, Vice President of the Ar- 
gentine Nation in the exercise of the Executive 
power, transmitted by the Honorable Norman 
Armour, American Ambassador to Argentina, 
on the occasion of the signing of the trade agree- 
ment, follows: 

"I am very happy on this day of sigiiature of 
a trade agreement between the United States 
and Argentina to send to Your Excellency and 
to the Argentine people my heartfelt greetings. 

"The representatives of our two nations who 
have cooperated in the negotiation of this agree- 
ment are to be congratulated on this achieve- 
ment in the cause of liberal principles of inter- 



national trade conducted on the basis of fair 
dealing, equality of treatment, and mutual bene- 
fit. It is an outstanding contribution to the 
economic welfare of our two countries and to 
the reconstruction of peaceful and profitable 
trade in the Americas and throughout the world. 

"In the years to come we shall look back upon 
the trade agreement signed today as a monu- 
ment to the ways of peace, standing in sharp 
and proud relief upon a desolate plain of war 
and destruction. 

"United as we are under divine guidance in 
the defense of our precious heritage in this 
hemisphere, we have today forged a new link 
in the chain of friendship, peace, and good- 
neighborliness which happily binds our two 
nations together." 



STATEMENT HY THE VICE PRESIDENT OF ARGENTINA 



The following statement was made by His 
Excellency Dr. Ramon Castillo, Vice President 
of the Argentine Nation in the exercise of the 
Executive power, regarding the trade agi"ee- 
ment signed October 14: 

[Translation] 

"The commercial treaty which we have signed 
today with the United States fulfils a long-held 
desire on the part of both nations and opens 
the doors to a close economic understanding be- 
tween them. Not all of our problems and needs 
have been resolved but the interest and good 
will which have prevailed on both sides during 
these negotiations and the solid base which cer- 



tainly is represented in the agreement that has 
been reached permit us to view with increasing 
interest and justified optimism the possibilities 
of a market potentially capable of solving all 
the problems of our production. 

"This agreement is one step further toward 
the work of natural collaboration which two 
countries such as ours of such similar political 
principles and constitutional forms are called to 
perform. On this common basis all understand- 
ings are easy and necessary. 

"I consider this agreement to be an effective 
demonstration of the best pan-Americanism. It 
is an act of good economic policy and of good 
continental policy." 



STATEMENT BY THE SECRETARY OF STATE OF THE UNITED STATES 



[Released to the press October 14] 

The statement of the Secretary of State made 
upon the occasion of the signing of the trade 
agreement follows: 



"The trade agreement signed today by repre- 
sentatives of the United States and Argentina 
is, I believe, a highly significant achievement in 
the field of our foreign relations, a field which 



OCTOBER 18, 1941 



301 



we have all finally come to realize touches close- 
ly the welfare and the security of all our people. 
Like other agreements concluded under the au- 
thority of the Trade Agreements Act, the pur- 
pose of this agreement is to promote the 
prosperity of both participants by promoting 
their trade with each other. 

"But under present conditions the agreement 
has a special significance and importance. This 
concrete evidence of the desire of each country 
to help the other in the economic field will 
inevitably promote cooperation between them in 



other respects. Close cooperation between 
Argentina and the United States is especially 
important at a time when the very existence of 
the nations of this hemisphere may depend upon 
presenting a united front to the forces of 
aggression. 

"The agreement has been carefully drawn, 
and I am entirely confident that In its practical 
operation the agreement will fulfil its purpose 
and prove its value to the people of both 
countries." 



MESSAGES EXCHANGED BY THE SECRETARY OF STATE OF THE UNITED STATES AND THE 
MINISTER OF FOREIGN AFFAIRS AND WORSHIP OF ARGENTINA 



[Released to the press October 15] 

The following message was sent to the Sec- 
retary of State by Seiior Dr. Don Enrique Ruiz- 
Guinazii, Minister of Foreign Affairs and Wor- 
ship of Argentina, on the occasion of the sign- 
ing of the trade agreement : 

"The trade agreement which we have signed 
today with Ambassador Armour, between our 
two countries, is the happy realization of a pol- 
icy of good understanding, particularly pleas- 
ing to this Government. The results achieved 
with such a cordial spirit of collaboration and 
common good will assure for this agreement 
the most gratifying prospects for the develop- 
ment of trade and for the ever cordial relations 
between Argentina and the United States." 

The following message was sent to the Min- 
ister of Foreign Affairs and Worship of Argen- 



tina by the Secretary of State upon the occasion 
of the signing of the agreement : 

"On the occasion of the signing of the trade 
agreement between Argentina and the United 
States of America, it gives me great pleasure to 
convey to Your Excellency my heartiest con- 
gratulations. This act, I feel sure, will prove 
to be of great and permanent value to both 
countries. 

"I feel that it should be a source of gratifica- 
tion to us both to feel that in these critical days 
through which the world is passing, Argentina 
and the United States have demonstrated that, 
through mutual good will and cooperation, they 
have been able to find a common ground of un- 
derstanding in working out their economic 
problems." 



PUBLICATION OF TEXT AND ANALYSIS OF AGREEMENT 



An analysis of the general provisions and re- 
ciprocal benefits under the trade agreement be- 
tween the United States of America and Argen- 
tina, signed at Buenos Aires October 14, 1941 



will be issued as a Supplement to this issue 
of the Bulletin. 

The text of the agreement, accompanying 
schedules, and related notes will be printed in 



was released to the press October 14, 1941, and the Executive Agreement Series. 



302 



DEPARTMENT OF STATE BULLETIN 

INTERNATIONAL WHEAT MEETING 



[Released to the press October 14] 

Representatives of the Governments of Ar- 
gentina, Australia, Canada, the United King- 
dom, and the United States reconvened on 
October 14, 1941, in Washington at the Depart- 
ment of Agriculture to resume discussions of 
world wheat problems, following the recess of 
the previous meeting on August 3, 1941.^ A list 
of those who will participate in the further dis- 
cussions follows: 

Argentina 

Mr. Anselmo M. Viacava, Commercial Counselor, Ar- 
gentine Embassy, Washington 
Australia 

Mr. Edwin McCarthy, Assistant Secretary of Com- 
merce 
Canada 

Mr. George H. Mclvor, Chief Commissioner, Cana- 
dian Wheat Board 
Mr. R. V. Biddulph, European Commissioner, Cana- 
dian Wheat Board 
Mr. Charles Wilson, Chief, Agricultural Branch, 
Dominion Bureau of Statistics 



Mr. A. M. Shaw, Director of Marketing Services, 
Dominion Department of Agriculture 

Mr. J. E. Coyne, Financial Attach^, Canadian Lega- 
tion, Washington 
United Kingdom 

Sir Arthur Salter, Chief British Representative 

Mr. H. P. Carlill, International Wheat Advisory Com- 
mittee 

Mr. R. R. Enfield, Ministry of Agriculture and Fish- 
eries 

Mr. E. M. H. Lloyd, Ministry of Food 

Mr. R. A. Furness, Trade Adviser 
United States 

Mr. Paul H. Appleby, Under Secretary of Agriculture 

Mr. Leslie A. Wheeler, Director, Office of Foreign 
Agricultural Relations, Department of Agriculture 

Mr. R. M. Evans, Administrator, Agricultural Adjust- 
ment Administration, Department of Agriculture 

Mr. Harry C. Hawkins, Chief, Division of Commercial 
Policy and Agreements, Department of State 

Mr. Robert M. Carr, Assistant Chief, Division of Com- 
mercial Policy and Agreements, Department of 
State 
International Wheat Advisory Committee 

Mr. Andrew Cairns, Secretary 



Treaty Information 



Compiled in the Treaty Division 



FLORA AND FAUNA 

Conventions With Canada and Mexico Ke- 
GARDiNG Migratory Birds 

On October 16, 1941 the President approved 
and proclaimed amendments submitted to him 
by the Secretary of the Interior regarding regu- 
lations relating to migratory birds included in 
the Convention for the Protection of Migratory 
Birds signed between the United States and 
Great Britain in respect of Canada, on August 
16, 1916 (Treaty Series 628), and in the Con- 
vention for the Protection of Migratory Birds 
and Game Mammals between the United States 



' Bulletin of July 12, 1941, p. 23, and August 9, 1941, 
p. 116. 



and Mexico, signed February 7, 1936 (Treaty 
Series 912). The amendments of the regula- 
tions as contained in the proclamation are 
printed in the Federal Register for October 18, 
1941, page 5303. 

FINANCE 
Taxation Convention With Great Britain 

On October 17, 1941 the British Ambassador 
at Washington and the Secretary of State of 
the United States signed a convention relating 
to taxation of official property of the two gov- 
ernments acquired for defense purposes. The 
convention will enter into force on tho day fol- 
lowing the exchange of the instruments of rati- 
fication. 



OCTOBER 18, 1941 

INDIAN AFFAIRS 

Convention Providing for an Inter-American 
Indian Institute 

El Salvador 

By a note dated August 19, 1941 the Mexican 
Ambassador at Washington informed the Sec- 
retary of State that the instrument of ratifica- 
tion by El Salvador of the Convention Provid- 
ing for an Inter-American Indian Institute, 
opened for signature at Mexico City on Novem- 
ber 1, 1940, was deposited with the Mexican For- 
eign Office on July 30, 1911. 

COMMERCE 

Trade Agreement With Argentina 

An announcement regarding the signing of 
a trade agreement between Argentina and the 
United States on October 14, 1941 appears in 
this Bulletin under the heading "Commercial 
Policy". 

SOVEREIGNTY 

Convention and the Act of Habana Concern- 
ing the Provisional Administration of 
European Colonies and Possessions in the 
Americas 

Argentina 

The Director General of the Pan American 
Union transmitted to the Secretary of State 
with a letter dated October 10, 1941 certified 
copies of the proces-verbal of deposit of the 
instruments of ratification by Argentina of the 
Convention on the Provisional Administration 
of European Colonies and Possessions in the 
Americas and the Act of Habana Concerning 
the Provisional Administration of European 
Colonies and Possessions in the Americas, 
signed at the Second Meeting of the Ministers 
of Foreign Affairs of the American Republics, 
held at Habana July 21-30, 1940. 

The instruments of ratification dated August 
22, 1941 contain the reservations made by the 
Argentine Delegation when signing the conven- 



303 

tion and act, which read in translation as 
follows : 

"The Delegate of the Argentine Republic in 
signing this Act places on record that it does not 
refer to or include the Malvinas Islands, because 
the latter do not constitute a colony or posses- 
sion of any European nation, since they are a 
part of the Argentine territory and are included 
within its dominion and sovereignty, as was 
stated at the Panama meeting, which statement 
he considers reiterated hereby in its entirety, 
and also with reference to other southern Ar- 
gentine regions as he has stated in the delibera- 
tions of this Commission. He likewise states 
that the signing of this Act and Resolution does 
not affect and leaves intact his Government's 
powers established in the constitutional norms 
which obtain in Argentina, with respect to the 
procedure apiDlicable in order that this Act and 
Resolution may acquire validity, force and 
effectiveness." 



The countries which have deposited ratifica- 
tions of the convention are the United States of 
America, Argentina, Brazil, Costa Rica, Do- 
minican Republic, Guatemala, Haiti, Panama, 
and Peru. The convention will enter into force 
when two-thirds of the American republics have 
deposited their respective instruments of 
ratification. 



The Foreign Service 



PERSONNEL CHANGES 

[Released to the press October 18] 

The following changes have occurred in the 
American Foreign Service since October 11, 
1941: 

Career Officers 

Hiram A. Boucher, of Minneapolis, Minn., 
now serving in the Department of State, has 
been assigned as Consul at Auckland, New Zea- 
land. 



304 



DEPARTMENT OF STATE BULLETIN 



William H. Beach, of Concord Wliarf, Va., 
formerlj' Consul at Antwerp, Belgium, has been 
assigned as Consul at Johannesburg, Transvaal, 
Union of South Africa. 

Joseph G. Groeninger, of Baltimore, Md., 
Consul at Auckland, New Zealand, has been as- 
signed as Consul at Bradford, England. 

M. Williams Blake, of Columbus, Ohio, Vice 
Consul at Basel, Switzerland, has been assigned 
as Vice Consul at Kangoon, Burma. 

The assignment of William L. Krieg, of New- 
ark, Ohio, as Vice Consul at Dakar, French West 
Africa, has been canceled. In lieu thereof, Mr. 
Krieg has been assigned as Vice Consul at Lagos, 
Nigeria, West Africa. 

Non-career Ofticers 

Albert George, of New York, N. Y., has been 
appointed Vice Consul at Marseille, France. 

Terry B. Sanders, Jr., of Edinburg, Tex., Vice 
Consul at Riohacha, Colombia, has been ap- 
pointed Vice Consul at Puerto de la Cruz, 
Venezuela. 

Lewis E. Leonard, of Corpus Christi, Tex., 
Vice Consul at Puerto de la Cruz, Venezuela, 
has been appointed Vice Consul at Eiohacha, 
Colombia. 

David K. Newman, of St. Louis, Mo., Vice 
Consul at Leopoldville, Belgian Congo, has been 
appointed Vice Consul at Cairo, Egypt. 



Commerce : Bureau of Marine Inspection and Naviga- 
tion.) [Order No. 158.] 6 Federal Register 5297. 



Regulations 



Export Control Scliedule No. 22 [determining, effec- 
tive October 29, 1941, additional forms, conversions, and 
derivatives of arnica (Proclamation 2506) ; wood (item 
3, Proclamation 2503) ; silli (item u, paragraph 2, 
Proclamation 2413) ; iron and steel (Proclamation 
2449) ; and machinery (Proclamation 2475) ; and delet- 
ing, effective October 13, 1941, gold manufactures from 
the forms, conversions, and derivatives subject to ex- 
port-liceu.se requirement]. October 13, 1941. (Eco- 
nomic Defense Board. ) 6 Federal Rer/ister 5216. 

Load Lines : Foreign Voyages During the National 
Emergency. October 15, 1941. (U.S. Department of 



Publications 



Department of State 

Naval Mission : Supplementary Agreement Between 
the United States of America and Colombia Modifying 
the Agreement of November 23, 1938 — Signed August 
30, 1941; effective August 30, 1941. Executive Agree- 
ment Series 218. Publication 1643. 2 pp. 50. 

Diplomatic Ust, October 1941. Publication 1644. il, 
104 pp. Subscription, $1 a year ; single copy, 100. 



Legislation 



An Act To amend the Alien Registration Act, 1940, 
by making it a criminal offense to reproduce alien 
registration receipt cards. [S. 1512.1 Approved, Octo- 
ber 13, 1941. (Public Law 268, 77th Cong., 1st sess.) 

Ip. 

An Act To amend the Nationality Act of 1940 to pre- 
serve the nationality of citizens residing abroad. [H.R. 
5511.] Approved, October 16, 1941. (Public Law 275, 
77th Cong., 1st sess.) 1 p. 

Ai'ming American Merchant Vessels: 

Hearings Before the Committee on Foreign Af- 
fairs, Ilouse of Representatives, 77th Cong., 1st 
sess., on U. J. Res. 237, a Joint Resolution to Repeal 
Section 6 of the Neutrality Act of 1939, and for 
Other Purposes. October 13 and 14, 1941. [State- 
ment of Secretary Hull, pp. 1-5.] Iv. 84 pp. 

H. Rept. 1267, 77th Cong., 1st sess., on H.J. Res. 
237. 11 pp. 
Supplemental Estimate of Appropriation for Foreign 
War Relief: Communication From the President of 
the United States Transmitting Supplemental Esti- 
mate of Appropriation for Foreign War Relief, Fiscal 
Year 1942, Amounting to $50,000,000. ( S. Doc. 117, 77th 
Cong., 1st sess.) 2 pp. 

Amending the Nationality Act of 1940 To Preserve the 
Nationality of Citizens Residing Abroad [by extending 
the time within which American citizens and presump- 
tive citizens living abroad must return to the United 
States in order to preserve their rights and citizen- 
ship]. (S. Rept. 705, 77th Cong., 1st sess., on H.R. 
5511.) 2 pp. 



U S. 6UVERKHEHT PRINTING OFFICE: 1941 



For sale by the Superintendent of Documents. Washington, D. C. — Price, 10 cents - - - - Subscription price, ^2.75 a year 

POBLISHKD WEEKLY WITH THE .IPPBOVAL OF THE DIBECTOB OF THD BDBEAU OF THB BDDQBI 



10' 



THE DEPARTMENT OF STATE 

BULLETIN 



Page 



OCTOBER 18, 1941, SUPPLEMENT 
Vol. V, No. 121a— Publication 1656 



Trade Agreement With Argentina' 

Contents 

Analysis of general provisions and reciprocal benefits : 

I. Summary of concessions obtained by the United 

States 

II. Summary of concessions granted by the United 
States 

III. Summary of general provisions 

IV. Analysis of individual concessions obtained on 
exports of United States pi'oducts 

V. Analysis of individual concessions of imports into 

the United States 

VI. General provisions and exchanges of notes .... 

Table A. Itemized list of tariff concessions obtained 
from Argentina (schedule I) 

Table B. Itemized list of tariff concessions made to 
Argentina (schedule II) 

Table C. Itemized list of tariff concessions made to 
Argentina (schedule III) 



4 

5 



10 
25 

29 

34 

42 




DEC 4 1941 



This information has been prepared by representatives of the Department 
of State, the Department of Agriculture, the Department of Commerce, the 
Department of the Treasury, and the Tariff Commission. These Govern- 
ment agencies, under the Reciprocal-Trade-Agreements Program, cooperate 
in the formulation, negotiation, and conclusion of all trade agreements 
entered into by the United States under the provisions of the Trade Agree- 
ments Act of 1034, as extended by joint resolutions of Congress of March 1, 
10.37 and April 12, 1940. 



Trade Agreement With Argentina 

ANALYSIS OF GENERAL PROVISIONS AND RECIPROCAL BENEFITS 



{Released to the press October 14] 

The reciprocal trade agreement between the 
United States and the Argentine Republic, 
signed at Buenos Aires on October 14, 1941, is 
designed to improve trade relations between the 
two countries. The reciprocal concessions 
cover a large portion of the trade between them. 
They include reductions by each country of its 
tariffs on specified products of the other coun- 
try; bindings of certain tariff rates against in- 
crease; and bindings of specified commodities 
on the free lists. The general provisions of the 
agreement provide, among other things, im- 
portant assurances against discriminatory tar- 
iff, quota, or exchange treatment of imports 
from either country into the other. 

The concessions are listed iu schedules I, II, 
and III of the agreement. Schedule I includes 
concessions made by Argentina on imports 
from the United States. Schedules II and III 
include concessions made by the United States 
on imports from Argentina. The concessions 
enumerated in schedule III apply to commodi- 
ties of which the United States ordinarily ob- 
tains its chief supplies from countries other 
than Argentina, which countries, because of the 
war, are not now available as sources of sup- 
plies in normal quantities. Concessions listed 
in schedule III may be withdrawn by the 
United States at any time following the cessa- 
tion of hostilities between the Governments of 
the United Kingdom and Germany, on six 
months' written notice. 

I. Summary of Concessions Obtained by the 
United States 

The tariff advantages obtained from Argen- 
tina under the present agreement benefit a long 



list of American industrial and agricultural 
products. Concessions affect 127 Argentine 
tariff items. In the case of 39 tariff items, 
duties were reduced, and under 88 items, pres- 
ent rates were bound against increase for the 
life of the agreement. 

United States exports to Argentina in 1940 
of products entering under the tariff items sub- 
ject to concessions were valued at $32,106,000, 
or 30.2 percent of total United States exports 
to Argentina in that year. Of this total, $19,- 
354,000 represents trade in products which will 
benefit from duty reductions, and $12,752,000, 
exports of products on which duties have been 
bound. These totals account respectively for 
18.2 percent and 12.0 percent of 1940 exports. 

The duty reductions are of three types: (1) 
those which become effective in their entirety on 
the effective date of the agreement; (2) those 
which become effective in two stages, part imme- 
diately and part when the second-concession 
stage comes into force; and (3) those which do 
not become effective until the second-concession 
stage becomes operative. In the case of these 
last-mentioned reductions, present duty rates are 
bound pending the effective date of stage II. 
All bindings become effective when the agree- 
ment comes into force. 

Stage I concessions become effective when the 
agreement becomes effective, and stage II con- 
cessions become effective promptly after Argen- 
tine customs receipts from import duties exceed 
270 million paper pesos in any calendar year. 
The 39 duty reductions obtained include 12 
which become effective when the agreement en- 
ters into force. 5 which do not accrue to exports 
until the second stage becomes effective, and 22 
which are partly effective immediately and ef- 

3 



DEPARTMENT OF STATE BULLETIN: OCTOBER 18, 1941, SUPPLEMENT 



fective in their entirety when stage II becomes 
operative. United States exports to Argentina 
in 1940 affected by these three classes of duty 
reductions were vahied at $8,345,000, $5,223,000, 
and $5,786,000, respectively. 

While 127 tariff items are considered to have 
been subject to concessions, many of these cover 
groups of products, so that the number of indi- 
vidual products benefiting from the agreement 
is in reality much larger. In a few instances 
sub-items have been counted as tariff items, 
since some concessions are not uniform in their 
effect on all products covered by a tariff item. 

Since Argentine trade figures are compiled on 
the basis of official valuations, it has been neces- 
sary to make use of United States export figures 
to indicate the value of individual concessions 
and the extent of the benefits which will accrue 
to the United States through the schedule as a 
whole. United States statistical classifications 
do not coincide with Argentine tariff classifica- 
tions, and, as a result, the United States export 
figures used in the text and tables of this analy- 
sis do not indicate exactly the movement of 
products affected by the concessions. In a few 
instances, estimates based on a combination of 
the best available United States and Argentine 
statistics have been utilized. 

II. SuMMART or Concessions Granted by the 
UNriED States 

Commodities affected by the concessions 
which the United States grants on imports 
from Argentina made up 92.8 percent of total 
United States imports from Argentina in 1938, 
92.4 percent in 1939, and 76.4 percent in 1940. 
The proportion declined in 1940, largely because 
in that year the United States purchased from 
Argentina unusually large quantities of wool of 
the finer grades, on which no concession is 
made in the agreement. 

Duties reduced 

In the agreement, United States duties are 
reduced on commodities which made up 69.6 
percent of total United States imports from 



Argentina in 1938, 63.6 percent in 1939, and 43.5 
percent in 1940. 

The principal commodities, in trade value, 
upon which duties have been reduced under 
schedule II are flaxseed; certain prepared or 
preserved meats, principally canned corned 
beef; casein; bovine hides and skins; certain 
coarse wools; and quebracho extract. Other 
duty reductions under schedule II are made on 
neatsfoot oil and neatsfoot stock; onyx; osier 
or willow for basket-makers' use; tallow; oleo 
oil and oleo stearin ; meat extracts; jellies, jams, 
marmalades, and fruit butters of quince ; canary 
seed; corned-beef hash; broomcorn; dog food; 
footwear known as alpargatas; and certain man- 
ufactures of reptile leather. The duties on 
asjjaragus, grapes, plums, prunes, and prunelles 
are reduced during seasons when domestic mar- 
ketings of these products are light. 

Duties have been reduced under schedule III 
on the following products : Italian-type cheeses; 
certain medicinal preparations of animal origin ; 
beryllium oxide and carbonate; sunflower 
oil; anchovies; macaroni, vermicelli, and 
noodles; prepared or preserved tomatoes; fur 
skins of goats, kids, and hares, dressed but not 
dyed; and miscellaneous pieces of goat or kid 
skins, and of hare, lamb, and sheep furs (ex- 
cept caracul and Persian lamb) if not dyed. 

Duties hound 

Existing duties on the following products are 
bound under schedule II: Glycerin, crude and 
refined; mate; unmanufactured mica valued at 
not over 15 cents per pound ; ground or pulver- 
ized mica; pears; and alfalfa seed. 

Existing duties bound at present rates under 
schedule III apply to brandy ; cordials, liqueurs, 
kirschwasser, and ratafia; bitters containing 
spirits; champagne and all other sparkling 
wines; still wines produced from grapes (not 
including vermuth) containing 14 percent or 
less of alcohol, in containers holding each one 
gallon or less; vermuth, in containers holding 
each one gallon or less; and dressed fur skins, 
not dyed, of lamb and sheep (except caracul and 
Persian lamb) . 



TRADE AGREEMENT WITH ARGENTINA: ANALYSIS 



Free list 

Commodities boimd on the free list include, 
under schedule II, carpet wools; crude mate; 
dried blood; crude bones, steamed or ground; 
bone dust, bone meal, and bone ash; animal car- 
bon suitable only for fertilizer ; quebracho wood ; 
several kinds of undressed furs; tankage for 
fertilizer; horse and cattle hair, unmanufac- 
tured; hoofs and horns, unmanufactured; cer- 
tain sausage casings; horse, colt, ass, and mule 
skins; carpincho skins; sheep and lamb skins; 
and goat and kid skins. Under schedule III, the 
following products are bound on the free list: 
Argols, tartar, and wine lees, crude or partly 
refined, containing less than 90 percent of potas- 
sium bitartrate ; and calcium tartrate. 

III. SuMMART or General Provisions 

The general provisions of the agreement pro- 
vide for the carrying into effect of the tariff 
concessions listed in the schedules annexed to 
the agreement and define the territory to which 
the agreement shall apply. They also contain 
most-favored-nation provisions assuring that 
any tariff concession on any product accorded 
by either country to any third country will be 
extended immediately and without compensa- 
tion to the other party to the agreement, ex- 
ceptions being made regarding special trade 
advantages accorded by the United States to 
Cuba, and, in an exchange of notes accompany- 
ing the agreement, regarding special tariff ad- 
vantages accorded by Argentina to contiguous 
countries by means of trade agreements em- 
bodying tariff reductions or exemptions. 

Moreover, the agreement contains provisions 
extending the principle of non-discriminatory 
treatment generally to measures relating to ex- 
change control and import restrictions, which, 
since 1933, have characterized Argentine com- 
mercial policy. These measures have involved 
serious difficulties for American exporters to 
Argentina, and the provisions of the agreement 
contain valuable assurances relating thereto. 

The exchange provisions of the agreement, 
contained in article IV, provide in general that 



henceforth imports into Argentina of any ar- 
ticle of American origin shall be accorded, in 
regard to restrictions or delays on payments, 
rates of exchange, and related charges, treat- 
ment no less favorable than that accorded im- 
ports of the like article from any third country. 
Likewise, article III, relating to quantitative 
import restrictions, contains assurances of non- 
discriminatory treatment in the application by 
Argentina to imports of American origin of 
import quotas, prohibitions, and other forms 
of restrictions on imports by providing that 
the share of the United States in any allocated 
quota shall be based upon the proportion of the 
total imports of the product subject to quota 
supplied by the United States in a previous 
representative period. However, because of 
Argentina's shortage of free foreign exchange, 
arising principally from the loss of its mar- 
kets in continental Europe and the blocking of 
the exchange created by its exports to the 
"sterling area" since the outbreak of hostili- 
ties in 1939, two exchanges of notes in connec- 
tion with the agreement except temporarily 
from the exchange and quota provisions of the 
agreement special exchange or quota facilities 
which Argentina may accord to contiguous 
countries and Peru or to the "sterling area" 
covered by the existing payments arrangement 
in effect between Argentina and the United 
Kingdom. 

Under new exchange regulations, effective 
since July 1, 1941, the exchange treatment ac- 
corded many imports of United States origin 
has already been substantially improved. 

In addition to the general assurances of non- 
discriminatory exchange treatment provided 
for in the agreement, the Argentine Govern- 
ment has given assurances that it will allot 
exchange, at least in limited amounts in accord- 
ance with Argentina's exchange availabilities, 
for every article on which a tariff concession has 
been obtained in schedule I of the agreement. 

The agreement also contains a provision not 
previously included in trade agreements con- 
cluded by the United States whereby consulta- 



6 



DEPARTMENT OF STATE BULLETIN: OCTOBER 18, 1941, SUPPLEMENT 



tioii between the two Governments I'egarding 
all matters affecting the operation of the agree- 
ment is provided through the medium of a 
mixed commission consisting of representatives 
of each Government. 

IV. Analysis of Individual Concessions 
Obtained on Exports of United States 
Products 

foodstuffs and tobacco 

Argentina's production of basic foodstuffs 
limits its demand for imported foods to certain 
specialties, seasonal fruits, and a few secondary 
foods of which domestic production is inade- 
quate. Normally, there are considerable pur- 
chases of European canned fish, cheese, tomato 
preparations, and olive oil; Brazilian rice and 
tropical fruits; Chilean fruits and nuts; and 
miscellaneous preserves, pickles, olives, sauces, 
confectionery, spirits, liqueurs and wines, 
largely from Spain, France, Italy, and Portu- 
gal. The United States supplied about 
$647,000 worth of foodstuffs in 1940, and about 
a third of this trade will benefit from conces- 
sions obtained in the present agreement. The 
remaining two thirds consists of many varied 
products, exports of which are individually 
small. 

Fruits 

The most important products in the United 
States foodstuffs trade are fresh and dried 
fruits, and in the present agreement the conces- 
sions on these are of particular interest in view 
of Argentina's growing production of temperate 
climate fruits. The duties on fresh apples, 
pears, and grapes are reduced on a seasonal 
basis by 50 percent, effective immediately. 
These seasonal reductions will be effective dur- 
ing the periods when American fresh fruit nor- 
mally enjoys its best market in Argentina and 
Argentine fruit is off the market. The duty on 
prunes is lowered by 30 percent and that on 
raisins by 35 percent — both reductions to go into 
effect immediately. Favorable rates on dried 



peaches, apples, pears, and cherries and walnuts 
are bound against increase. 

Argentine figures for 1939 indicate that in 
that year the share of the United States in the 
import trade in some of the more important 
fruits was as follows : Apples and pears, 88 per- 
cent ; prunes, 92 percent ; and raisins, 26 percent. 

Canned fish 

United States exporters of canned sahnon and 
mackerel will benefit immediately from a 40- 
percent duty reduction, and sardines have been 
granted an immediate reduction of 30 percent. 
The sardine concession is limited to packs of es- 
pecial interest to American canners, i. e., in 
tomato sauce, mustard, and cottonseed oil. In 
the past, sales of American types of canned fish 
in the Argentine market have not been large, 
chiefly because the duties levied on them have 
confined their consumption to the luxury trade. 

Tobacco amd cigarettes 

Favorable tariff treatment on leaf tobacco and 
cigarettes is bound against increase. These two 
products represented $653,000 of United States 
trade in 1940, and the growing Argentine pref- 
erence for light -tobacco cigarettes may lend in- 
creasing importance to these assurances against 
higher import duties. In 1939, 42 percent of 
cigarette imports and 12 percent of the tobacco 
entering under Argentine tariff item 346 origi- 
nated in the United States. Brazil was the chief 
supplier under this tobacco item, but its dark 
leaf is not directly competitive with the light 
cigarette leaf purchased in the United States. 

AUTOMOBILES, PARTS, AND ACCESSORIES 

Substantial benefits have been obtained for 
the American automobile industry, and Argen- 
tina represents one of the principal export out- 
lets for its products. In 1940, United States 
exports to Argentina of automobiles, parts, and 
accessories were valued at over 16 million dollars. 

Passenger cars 

Duties are reduced on the lighter, less expen- 
sive passenger vehicles. Although these rednc- 



TRADE AGREEMENT WITH ARGENTINA : ANALYSIS 



tioiis are not large, they simplify the rate struc- 
ture, become effective immediately, and apply to 
complete, semi-assembled, or unassembled cars. 
In the case of medium- weight, inexpensive units, 
the reductions are somewhat deeper, while duties 
on the larger and more expensive cars are bound 
against increase. United States exports of pas- 
senger cars to Argentina totaled $6,203,000 in 
1940. In 1939, nearly 85 percent of the imported 
passenger vehicles came from the United States. 

7'rucks and busses 

The duties on truck, delivery-car, and bus 
chassis are also reduced, the specific duties being 
cut by 25 ijercent, and the 10-percent surtax 
being bound against increase. These reduc- 
tions will become effective when stage II 
becomes effective, and in the meantime present 
duties are bound. The concessions apply to 
complete, semi-assembled, and unassembled 
chassis. Shipments of truck and bus chassis 
were valued at $3,714,000 in 1940. The ad 
valorem equivalents of the existing duties are 
considerably below those on passenger cars, and 
the exchange treatment of trucks has been im- 
proved recently. In 1939, the United States 
supplied about 80 percent of truck-chassis 
imports. 

The notes to the automobile items are of par- 
ticular importance since they bind the present 
system of making semi-assembled and unassem- 
bled units dutiable at rates respectively 15 per- 
cent and 30 percent below the full duties and 
assure the maintenance of present favorable 
methods of establishing valuation for duty pur- 
poses. 

Automobile parts for assembly 

United States exports of automobile parts for 
assembly to Argentina were valued at $3,206,000 
in 1940. This total includes parts for both pas- 
senger cars and trucks and represents the trade 
receiving benefits, depending on its nature, un- 
der the passenger-car or truck concessions men- 
tioned above, through the binding of provisions 
that units shipped knocked down are dutiable 
under the respective tariff items but at specified 



discounts. This also applies in the case of our 
trade in automobile engines for assembly, which 
amounted to $643,000 in 1940. 

Automobile replacement parts 

Argentina is also an important market for 
replacement parts and accessories and in 1940 
bought these jiroducts from the United States 
to a value of $2,304,000. These parts enter un- 
der five main tariff items, which provide re- 
spectively for parts for bodies, chassis, ignition 
systems, engines, and steering and transmis- 
sion assemblies. 

The duties on all five items, less certain spe- 
cific parts, were reduced by 30 percent in the 
present agreement. Reductions of 10 percent 
will become effective immediately and the full 
reductions when stage II becomes operative. On 
the specified parts excepted from the general 
lowering of rates, the maintenance of present 
tariff treatment is assured. It is estimated that 
the parts on which duties were bound represent 
about 20 percent of our parts business, and 
many of these are dutiable at moderate rates. 
About 87 percent of Argentina's imports of these 
replacement parts in 1939 originated in the 
United States. 

The duties on asbestos brake lining, including 
moulded lining, with or without wire, dutiable 
under separate tariff items, are reduced by 50 
percent, with one half of the reduction to be 
effective at once. 

ELECTRICAL EQUIPMENT AND APPARATUS 

Radio apparatus 

United States exports of radio apparatus to 
Argentina totaled $1,385,000 in 1940. The rapid 
development of the Argentine set-manufactur- 
ing industry has resulted in increased demand 
for parts and tubes and a decline in the im- 
ports of complete receivers. Sets of several 
American makes are assembled locally by branch 
factories wholly or partly owned by United 
States firms. The duties on small sets are bound 
against increase, and in the case of sets with 
eight or more tubes, including phonograph com- 



8 



DEPARTMENT OF STATE BULLETIN: OCTOBER 18, 1941, SUPPLEMENT 



binations, the duty is reduced by about 29 per- 
cent, with a 10-percent reduction becoming 
effective immediately. 

Duties on radio parts of brass, porcelain, 
composition, and iron or steel, metal loudspeak- 
ers, and ordinary radio-receiving tubes are 
bound against increase. The duty on more 
powerful tubes is reduced by 50 percent, with 
a 25-percent reduction to become effective im- 
mediately. In 1939, the United States supplied 
21 percent of the sets imported, 52 percent of 
the parts, and about 60 percent of the tubes. 
Possibly the most important concession in the 
radio group is definite clarification of what 
tubes are dutiable as ordinary tubes at the com- 
paratively favorable rate provided for the lat- 
ter. A note included in the agreement specifies 
that ordinary tubes are those with a usable out- 
put of five watts or less, thus definitely classify- 
ing under tariff item 2258 most tube types u.sed 
in standard receivers. 

Automatic refrigerators 

Argentina has been an excellent market for 
American refrigerators, but the development of 
local assembling and manufacturing plants has 
brought a change in demand, and in recent years 
United States exports have consisted chiefly of 
sealed mechanisms and refrigerator parts. 
Shipments of sealed units, parts, and complete 
boxes to Argentina totaled $1,086,000 in 1940. 
In 1939, the United States supplied 99 percent 
of sealed-mechanism and parts imports and 39 
percent of the complete boxes. The duty on 
parts is reduced by about 36 percent, with a 
reduction of about 17 percent becoming effective 
immediately, and maintenance of the present 
duty and favorable method of establishing valu- 
ation for duty purposes on complete mecha- 
nisms is assured. Existing duties on complete 
automatic refrigerators and compressors are 
bound against increase. 

Other electrical equipment 

The duty on portable electric and pneumatic 
tools is reduced by 50 percent, with half of the 
concession becoming effective immediately. 



Electric motors of % horsepower or less receive 
the benefit of a duty binding. Our 1940 trade 
in these tools and motors approximated $200,- 
000. Composition containers and containers of 
other materials (except glass and pottery) for 
storage batteries will be dutiable at 25 percent 
below the present level when stage II becomes 
operative and in the meantime will enjoy a 
121^-percent reduction. The reduction ob- 
tained for fluorescent bulbs and fittings for ceil- 
ing, wall, table, desk, bed, and floor lamps will 
lower the duty on these comparatively new 
items in our export trade by 20 percent when 
stage II becomes operative. In the meantime, 
present duties are bound. The existing mod- 
erate duty on battery-charging devices of the 
wind-driven generator type is bound against 
increase. United States exports to Argentina 
of wind-driven charging devices have been 
increasing rapidly, reaching $195,000 in 1940. 



MACHINERY AND APPLIANCES 

AgriculturoU machinery 

Argentina's large-scale agriculture has af- 
forded a basis for an extensive trade in Amer- 
ican farm machines and implements. Argentina 
is normally the second largest market for 
American agricultural machinery and in 1940 
bought United States exports valued at $4,188,- 
000. In 1939, the United States share of Argen- 
tina's imports of the different machines varied 
from 57 percent to 94 percent, with American 
products dominating particularly in the larger, 
more complicated machine and tractor classes. 
The present moderate duties are bound against 
increase, and exporters of nearly all types of 
agricultural machinery, including plows and 
shares, harrows, tractors of all types, wind- 
mills, sowers, reapers, binders, harvesters, shell- 
ers, buskers, and threshing machines, will bene- 
fit by this protective assurance. 

Industrial machinery 

The advances of recent years in Argentine in- 
dustrialization have been encouraged by gen- 



TRADE AGREEMENT WITH ARGENTINA : ANALYSIS 



9 



erally moderate import duties on factory ma- 
chinery. The maintenance of present favorable 
tariff treatment is assured for United States ex- 
ports of pumps and oil burners. The duty on 
certain miscellaneous light machinery and parts 
(weighing less than 100 kilos net), not specifi- 
cally provided for in the Argentine tariff, is re- 
duced by about 36 percent, with an immediate 
reduction approximating 18 percent. On other 
small machines and machine tools entering un- 
der this same tariff item (1799), present rates 
are bound against increase. In tliis latter cate- 
gory are hand-drill presses, buffer or emery- 
wheel mounts, grindstone-wheel and tool-sharp- 
ener mounts, small milling machines, tin 
crimpers and cutters, metal shears and punch- 
ers, hand-operated metal saw momits, stamping 
presses, automatic saw sharpeners, motor drills, 
vises, electric meat choppers, coffee grinders, 
lense gauges, grinders, drills, and polishers, and 
certain machines for the gi'aphic arts and shoe- 
manufacturing industries. It is estimated that 
machinery from the United States affected by 
these concessions is about equally divided be- 
tween that benefiting from reductions and that 
receiving bindings. 

Office appliances 

Moderate duties on office appliances repre- 
senting $1,104,000 of United States exports in 
1940 are bound against increase. Appliances 
obtaining the benefit of these concessions are 
typewriters and parts and adding, calculating, 
and accounting machines and cash registers, 
with or without electric motors. The United 
States supplied 49 percent of Argentina's type- 
writer imports in 1939 and 69 percent of the 
other appliances mentioned. Dictaphones, 
which have not been specified in the Argentine 
tariff, will be classified with these other above- 
mentioned appliances under Argentine tariff 
item 1831 upon ratification of the agreement by 
the Argentine Congress and will, as a result, 
benefit from a duty reduction. 



FOREST PRODUCTS 

Lumber 

Douglas fir, spruce, and southern pine un- 
planed lumber are accorded 37-percent duty re- 
ductions, with 15-percent reductions becoming 
effective immediately. The duty on unplaned 
oak lumber is reduced by about 24 percent, with 
an immediate reduction of 9 percent, and the 
present rate on unplaned lumber of white or 
ponderosa pine is bound against increase. 
United States exports to Argentina of oak and 
pine lumber were valued at $1,755,000 in 
1940. In 1939, the United States supplied 55 
percent of the oak lumber imports, 41 percent of 
the spruce and fir, and 99 percent of the south- 
ern and white \ni\&. 

Plywood and casks 

Duties on plywood of spruce and Douglas 
fir of all thicknesses, and on casks or tuns of 
wood, assembled or not, are bound against 
increase. 

Composition hoards 

Construction, insulating, and wallboard are 
subject to 50-percent duty reductions, with im- 
mediate reductions of 21 percent. The duty 
on Kraft liner board is reduced by 50 percent, 
to take effect immediately. 

Paper products 

The duty on sanitary paper is reduced by 
about 24 percent, effective when stage II be- 
comes operative, and present rates on blotting 
and oiled copy paper are bound against in- 
crease. 

Naval stores 

The duty on turpentine is reduced by about 
24 percent, with an immediate reduction of 12 
percent. Light rosin is subject to a reduction 
of about 47 percent, with an immediate reduc- 
tion of one third. A one-third reduction on 
dark rosin, with an immediate reduction of 
about 17 percent, brings this product into line 
with light rosin. United States exports of tur- 
pentine and rosin to Argentina were valued at 



424407 — 41- 



10 



DEPARTMENT OF STATE BULLETIN: OCTOBER 18, 1941, SUPPLEMENT 



$319,000 in 1940. In 1939, the United States 
supjilied 88 percent of Argentina's turpentine 
imports, 49 percent of the light rosin, and 99 
percent of the dark. 

CHEMICALS, PAINTS, AND EEL.VTED PRODUCTS 

The duty reduction on sulphur accorded to 
Chile in an Argentine-Chilean commercial 
agreement (33 percent below the general rate) 
is hound against increase, and assurances have 
been obtained that sulphur of 97-percent pu- 
rity or higher would be classified under tariflF 
item 4350, thereby improving the competitive 
position of the tyj^e of sulphur in which Amer- 
ican exporters are chiefly interested. The 
existing moderate rate of duty on boiler-scale 
removers was also bound. Existing rates of 
duty on enamels and varnishes are bound 
against increase. The United States supplied 
62 percent and 33 percent, respectively, of Ar- 
gentina's enamel and varnish imports in 1939. 

MOTION -PICTURE FILM 

The duty on motion-picture positives is 
bound at its present level, but the rate on nega- 
tives is reduced by one third in stage II. The 
duty on raw film is reduced by one third, effec- 
tive immediately. United States exports of all 
three kinds of film totaled $420,000 in 1940. 
In 1939, the United States supplied 90 percent 
of all motion-picture film imported into Argen- 
tina. 

MISCELLANEOUS PRODUCTS 

Present duties are bound on numerous other 
United States export products, including foun- 
tain pens, ordinary chewing gum, razor blades, 
refractory blocks, ordinary wrenches, roofing 
felts, and photographic film and dry plates. 
The duty on white cement is reduced by 50 
percent, with half the reduction taking effect 
immediately. The duty on rubber hose is re- 
duced by 20 percent, effective immediately. 
The reduction of 40 percent on vulcanized fiber 
will become effective in two stages, one half im- 
mediately and the other half in stage II. Con- 
tinuation of the present favorable method of 
classifying earthenware or glazed pottery bath- 



tubs, lavatories, urinals, and other sanitary 
ware for bathrooms, is assured. 

V. Analysis of Individual Concessions on 
Imports Into the United States 

a. schedule ii 

Casein O)' lactarene and mixtures of which casein 
or lactarene is the component material- of 
chief value, 7wt specially provided for {par. 

19') 

The duty on casein or lactarene under the 
Tariff Act of 1930 was 51/2 cents per pound. 
Under the act of 1922 the duty was 2i^ cents 
per pound. Under the trade agi-eement with 
Argentina the duty is reduced to 2% cents per 
pound. The ad valorem equivalent of the 51^- 
cent rate has ranged in recent years from about 
80 percent to about 110 jiercent. On the basis 
of imports in 1939 the reduced rate of 2% cents 
per pound would have been equal to about 49 
percent ad valorem. 

The volume of United States production of 
casein is determined largely by tlie market situ- 
ations of fluid milk and of the principal manu- 
factured dairy products — creamery butter, 
cheese, and condensed and evaporated milk — as 
well as by the price of casein. Wlien the market 
for creamery butter is more profitable than the 
markets for cheese or for evaporated or con- 
densed milk, the output of skim milk increases. 
Even then, however, the skim milk may be used 
for feeding livestock or in producing dried and 
condensed skim milk, rather than in producing 
casein. In 1939, for example, dried casein rep- 
resented only 16 percent of the skim milk 
utilized in manufactured dairy products pro- 
duced in the United States. Normally, the 
principal use of skim milk is in feeding live- 
stock. 

In the period 1931-40 imports ranged from 
411.000 pounds in 1938 to 24,500,000 pounds in 
1940, with an annual average of 8 million for 
the period. Tliese imports accounted for less 
than one percent of consumption in 1938 and for 
about 33 percent in 1940. 



' Refers to paragraph uumber of Tariff Act of 1930. 



TRADE AGREEMENT WITH ARGENTINA : ANALYSIS 



11 



Except in 1936 Argentina has been by far 
the principal supplier of casein imports into 
the United States. 

In the period 1929^0 the average price per 
pound of 20-30 mesh domestic casein (f. o. b. 
plant in 5-ton lots) decreased from 15.4 cents 
in 1929 to 6.2 cents in 1932, and then increased 
to 16.5 cents in 1936, the peak year of the pe- 
riod. Prices declined to 10.2 cents in 1938 and 
then increased to 13.2 cents in 1939 and 12.8 
cents in 1940. Prices increased from 13.5 cents 
in January 1941 to about 28.5 cents on Septem- 
ber 29, 1941. 

Mate^ advanced in value or condition {par. 35) 
Under both the act of 1922 and that of 1930, 
the duty on yerba mate, advanced in value or 
condition, was 10 percent ad valorem ; it was re- 
duced to 5 percent under the agreement with 
Brazil, effective January 1, 1936, and is bound 
at that rate in the agreement with Argentina. 
Crude mate (par. 1602), which was bound on 
the free list in the agreement with Brazil, is 
bound free in the agreement with Argentina. 

Mat^, or Paraguayan tea, consists of the 
dried leaves and shoots of a tropical evergreen 
tree native to Brazil, Argentina, and Paraguay. 
Ground or powdered, it is used in central and 
southern South America as a beverage similar 
to tea and is consumed in the United States 
principally as a beverage. It is not produced 
in the United States. 

Practically all United States imports of mate 
in recent years have been of the ground or 
powdered product. Imports were 422,000 
pounds in 1935, 87,000 pounds in 1937. 111,000 
pounds in 1938, and 83,000 pounds in 1940. 
Argentina ranked first as a supplier in 1935 
and 1938 and second in 1939 and 1940. 

Quebracho extract {par. 38) and wood {par. 
1670) 

The duty on quebracho extract under the act 
of 1930 was 15 percent ad valorem. Under the 
agreement with Argentina it is reduced to 7i/2 
percent ad valorem. 

Quebracho extract is one of the most impor- 
tant and widely used vegetable tanning mate- 



rials. It is obtained from the wood of the 
quebracho tree, which is found in significant 
numbers only in northern Argentina and in 
Paraguay. Normally 90 percent of the do- 
mestic consumption is supplied by imported 
extract, and the remainder, in quantity very 
small compared to imports, is produced in this 
country from imported wood which is free of 
duty under the act of 1930. The duty-free 
status of quebracho wood is bound in the agree- 
ment with Argentina. 

In 1939, domestic manufacture of the extract 
amounted to 15.5 million pounds, as compared 
with imports of 153 million pounds. In 1940 
domestic production of extract was 4.9 million 
pounds and imports 111.1 million pounds. Im- 
ports come almost entirely from Argentina and 
Paraguay. 

Glycenn, crude and repned {par. 4^) 

The duty on crude glycerin from countries 
other than Cuba was 1 cent per pound under 
the act of 1930 and was reduced to % o cent per 
pound under the trade agreement with France, 
effective June 15, 1936. The duty on imports 
from Cuba was reduced from %o cent to %o 
cent per pound in the Cuban agreement, effec- 
tive September 3, 1934. The ad valorem equiv- 
alent of the duty on crude glycerin from coun- 
tries other than Cuba was 10 percent in 1939. 
The present general rate is bound in the agree- 
ment with Argentina. 

The duty on refined glycerin under the act of 
1930 was 2 cents per pound and was reduced to 
1% cents per pound in the agi-eement with the 
Netherlands, effective February 1, 1936. It was 
automatically reduced to 1%5 cents per pound 
by the reduction in the duty on crude glycerin 
in the agreement with France. The duty of 1%5 
cents per pound is bound in the agreement with 
Argentina. The ad valorem equivalent of the 
duty on refined glycerin was 17 percent in 1939. 
Crude glycerin is a by-product of the soap and 
fatty-acids industries, and its production there- 
fore depends largely upon the production of 
those commodities. The value of the glycerin 
recovered is estunated to be less than 10 percent 



12 



DEPARTMENT OP STATE BULLETIN: OCTOBER 18, 1941, SUPPLEMENT 



of tlie value of the total products of the soap and 
fatty-acid industries. 

In the 6-year period 1935-40, United States 
production of crude glycerin ranged between 
141 million pounds in 1935 and 184 million 
pounds in 1939; the annual average for the 
period was 160 million pounds. Production of 
refined glycerin in that period ranged from a 
low of 116 million pounds in 1940 to a high of 
152 million pounds in 1939. The annual average 
for the period was 134 million pounds. 

In 1935-40, imports of crude glycerin varied 
from 8.2 million pounds in 1935 to 13.4 million 
pounds in 1937, and averaged about 11 million 
pounds per year. Imports of refined glycerin 
in the same period ranged between 69,000 pounds 
in 1935 and 7,500,000 pounds in 1937, averaging 
about 2,400,000 pounds. Entries of refined 
glycerin amounted to 330,000 pounds in 1939 and 
298,000 pounds in 1940. Exports of glycerin, 
reported as "alcohols: gljcerin", consist chiefly 
of refined glycerin and, since 1937, have exceeded 
imports. 

Argentina is now one of the principal sources 
of imports of both crude and refined glycerin. 
Cuba and the Philippines are also important. 
Formerly, France, the Soviet Union, and Can- 
ada were the principal suppliers of the crude 
product, and the Netherlands and France the 
princii^al suppliers of refined glycerin. 

N eats foot oil and animal oils known as neats- 
foot stock {par. 52) 

Under the acts of 1922 and 1930 neatsfoot 
oil was dutiable at 20 percent ad valorem. Ef- 
fective August 21, 1936, an import excise tax 
of 3 cents per pound in addition to the duty 
was imposed. Under the agreement with Ar- 
gentina, the duty is reduced to 10 percent ad 
valorem and the excise tax to ll^ cents per 
pound. 

Production of neatsfoot stock and oil in the 
United States averaged about 6.2 million 
pounds a year in the period 1935-36 as com- 
pared with 5 million pounds in 1939 and 4 
million pounds in 1940. Imports of neatsfoot 
oil are not reported separately. 



Mica, unmanufactured, valued at not above 15 
cents per pound {par. 208 {a)) 

Under the act of 1930 unmanufactured mica 
valued at not over 15 cents per pound was 
dutiable at 4 cents per pound. This duty is 
bound against increase in the agreement with 
Argentina. The ad valorem equivalent of the 
duty was 34 percent in 1939. 

United States production of this type of mica 
increased from about 436,000 pounds in 1935 to 
853,000 pounds in 1937, and then decreased to 
433,000 pounds in 1939. Imports increased 
from 147,000 pounds in 1935 to 324,000 in 1937, 
declined to 111,000 pounds in 1938 and rose to 
382,000 pounds in 1940. Exports are very 
small. 

Argentina and Brazil have ranked first since 
1937 as suppliers of United States imports of 
this type of mica. Previously British India 
and Canada were the chief sources. 

Mica, ground or pulverized {par. 20S ( A ) ) 

Under the act of 1930, mica, ground or pul- 
verized, was dutiable at 20 percent ad valorem. 
The duty was reduced to 15 percent ad valorem 
in the second agreement with Canada, effective 
January 1, 1939. The reduced rate is bound 
against increase in the agi-eement with Argen- 
tina. 

United States production (sales) of ground 
mica increased from 51.2 million pounds in 1936 
to 61.8 million pounds in 1939 and amounted to 
56 million pounds in 1940. Imports decreased 
from 133,000 pounds in 1936 to 82,000 pounds in 
1937, as compared with 319,000 pounds in 1939 
and 239,000 pounds in 1940. Exports amounted 
to about 3 million pounds a year in the period 
1937-39 and to 1.4 million pounds in 1940. Ap- 
proximately 95 percent of the ground mica used 
in the world is made in the United States. 

Onyx, in block, rough, or squared only {par. 
2M (a)) 
The duty of 65 cents per cubic foot under the 
act of 1930 is reduced to 32i/^ cents per cubic 
foot in the agreement with Argentina. The ad 
valorem equivalent of the duty was 11.2 percent 
in 1939. The reduced duty would have been 



TRADE AGREEMENT WITH ARGENTINA : ANALYSIS 



13 



equal, on the basis of imports in 1939, to 5.6 
percent ad valorem. Argentina and Mexico are 
the sources of this material. In 1940 imports 
were valued at $115,390 of which $57,180 worth 
came from Argentina. 

Osier or willow, including chip of and split 

willow, prepared for hasket-makers'' use 

{par. 409) 

Willow (or osier) for basket-makers' use was 

dutiable at 35 percent ad valorem under the act 

of 1930. The duty is reduced to I7i^ percent 

under the agreement with Argentina. Domestic 

production probably is smaller than imports 

which, in 1939 and 1940, were valued at $5,513 

and $3,589, respectively. Argentina is by far 

the chief supplier of these imports. 

Tallow, oleo oil, and oleo stearin {par. 701) 

Imports of tallow, oleo oil, and oleo stearin 
are not only dutiable under the act of 1930 but 
since 1936 have also been subject to an import 
tax under the Internal Revenue Code. Conces- 
sions in both the tariff rate and the import-tax 
rate are made in the agreement and may be 
summarized as follows: 

[In cents per pound] 





Previous to trade agree- 
ment 


Under trade agreement 


Commodity 


Tariff 
duty 


Import 
tax 


Com- 
bined 
duty 
and tax 


Tariff 
duty 


Import 
tax 


Com- 
bined 
duty 
and tax 


Tallow: 
Edible 


H 
H 
1 
1 


3 
3 
3 
3 


3» 
3H 
4 


H 


m 


m 

2 


Inedible.-- 

Oleo oil 


Oleo stearin 


2 



The ad valorem equivalent of the combined 
duty and import tax on inedible tallow was 61 
percent in 1938, 120 percent in 1939, and 111 per- 
cent in 1940. On the basis of the 1939 impoi'ts 
the ad valorem equivalent of the agreement 
rates would have been 60 percent. Practically 
all imports of tallow in the past three years have 
been of the inedible type. 

The ad valorem equivalent of the combined 
duty and tax on oleo stearin was 107 percent in 



1938 and 75 percent in 1939. Imports of oleo 
products have been chiefly of oleo stearin. 

Tallow is made from hard animal fats ob- 
tained chiefly from cattle and in smaller quan- 
tities from calves and sheep. Inedible tallow is 
made chiefly from fats removed in uninspected 
slaughtering plants and from scraps and trim- 
mings collected from retail meat shops. It is 
used chiefly in the manufacture of soap. The 
highest grade of edible tallow is oleo stock from 
which oleo oil and oleo stearin are made. Oleo 
stock and oleo oil are used chiefly in the manu- 
facture of margarine. Oleo stearin is used 
chiefly for blending with cottonseed oil and 
other soft oils in the manufacture of lard sub- 
stitutes. 

Tallow. Imports of tallow into the United 
States are very small in comparison with domes- 
tic production, consumption, and exports. Since 
1929 imports have been exceeded by United 
States exports except in the years when the 1934 
and 1936 droughts drastically reduced domestic 
production of tallow, lard, and greases. 

During the five years 1930-34 production of 
tallow in United States factories averaged an- 
nually about 575 million pounds, of which about 
60 million pounds was edible tallow. Domestic 
production decreased from 667 million pounds 
in 1934 to 466 million in 1935. In 1940 it had 
risen to 790 million pounds, of which 79 million 
pounds was of the edible tallow. 

Imports for consumption of dutiable tallow 
in 1927-29 averaged about 14,600,000 pounds a 
year. In 1930-33 the annual average was 674,000 
pounds. Imports increased to 43 million pounds 
in 1934 and to 246 million in 1935. These in- 
creases were due not only to the effects of the 
drought but also to the imposition by the United 
States of import taxes on certain other compet- 
ing oils, particularly palm and whale oils. Im- 
ports declined in 1936 to 79 million pounds, of 
which 76 million entered before the import tax 
became effective in August and in 1937 to less 
than 15 million. In 1938, 1939, and 1940 imports 
averaged less than 2 million pounds with prac- 
tically no imports of edible tallow. 



14 



DEPARTMENT OF STATE BULLETIN: OCTOBER 18, 1941, SUPPLEMENT 



Argentina was the principal source of imports 
of tallow into the United States in 1935-37 and 
has been one of the important suppliers since 
that time. Canada supplied most of the small 
imports of 1938 and ranked first in 1940. In 
1939 Australia was the principal supplier. 

Oleo oil and oleo stearin. About two thirds 
of the United States production of oleo prod- 
ucts usually is oleo oil. Imports of these prod- 
ucts ordinarily are small in comparison with 
domestic production. 

In the period 1931-35 United States produc- 
tion averaged about 122 million pounds per year. 
Imports during that period ranged from 590,000 
pounds in 1932 to 11 million pounds in 1935. 
In 1936 domestic production was 147 million 
pounds — the highest in any year since 1930 — 
and imports amounted to 5,400,000 pounds. In 
1937 domestic production declined, largely be- 
cause of the effects of the 1934 and 1936 
droughts, but recovered in 1938 to reach an av- 
erage of about 127 million pounds for the two 
years. Imports in 1937 were 3,700,000 pounds 
but dropped in 1938 to 400,000 pounds. In 1939 
domestic production of oleo products amounted 
to 114 million pounds and in 1940 to 105 million 
pounds. Imports of oleo stearin since 1937 
have been negligible, and there have been no 
imports of oleo oil. The United States is on an 
export basis for oleo products, although ex- 
ports, which amounted to 80 million pounds in 
1929, dropped to 1.4 million in 1940. 

Argentina has been much the most important 
supplier of imports of oleo stearin in recent 
years (except in 1933), and of imports of oleo 
oil when such imports have been substantial. 

Extract of meat, indiiding fluid {par. 705) 

Under the Tariff Act of 1930, meat extract 
was dutiable at 15 cents per pound. This rate 
was bound in the agreement with the United 
Kingdom, effective January 1, 1939. Under the 
agreement with Argentina, the duty is reduced 
to 7I/2 cents per pound. In the 6-year period 
1935—40 the ad valorem equivalent of the duty 
on meat extract ranged from 33 percent in 1936 
to 39 percent in 1939. Domestically produced 
meat extracts are more highly processed and 



higher priced than the imported product. Total 
imports of meat extracts into the United States 
amounted to 1,213,000 pounds in 1939 and to 
582,000 pounds in 1940. Argentina and 
Uruguay are the principal suppliers. 

Meats, prepared or preserved, not specially 
provided for {except meat pastes other 
than liver pastes packed in airtight con- 
tainers xoeighing tcith their contents not 
more than 3 ounces each) {par. 706) 
Under the Tariff Act of 1930, meats in this 
category (chiefly canned corned beef and 
pickled or cured beef and veal) were dutiable at 
G cents per pound but not less than 20 percent 
ad valorem. Under the act of 1922 such im- 
ports were dutiable at 20 percent ad valorem. 
In the agreement with Argentina this duty is 
reduced to 3 cents per pound but not less than 
20 percent ad valorem. The ad valorem equiv- 
alent of the duty on canned beef was 56 percent 
ni 1938 and 60 percent in 1939. The ad valorem 
equivalent of the duty on pickled or cured beef 
and veal was 79 percent in 1938 and 84 percent 
in 1939. 

Domestic production of beef and veal com- 
pared with imports. In 1929, before the duty 
of 6 cents per pound was imposed, imports of 
all beef and veal, of which canned beef usually 
constitutes some 98 percent, equaled about 3.8 
percent of domestic production. In 1932 this 
percentage had declined to 1 percent. In the 
five years 1935-39 it averaged 2.7 percent and 
in 1940 was about 2 percent. Imports of the 
beef and veal to which the concession applies 
amounted to about 3.1 percent of United States 
production of beef and veal in 1929 and to about 
0.9 percent in 1932 (imports of canned beef 
converted to a dressed-weight basis). Such 
imports averaged annually about 2.6 percent of 
domestic beef and veal production during the 
years 1935-39 and equaled about 1.9 percent 
in 1940. 

Canned beef. Canned corned beef is the prin- 
cipal commodity included in the concession. 
United States production of canned beef in re- 
cent years has been relatively small and has 
consisted largely of beef .specialties other than 



TRADE AGREEMENT WITH ARGENTINA : ANALYSIS 



15 



corned beef. Nearly all the corned beef that 
has been canned in the United States has been 
produced for Government contracts. Much of 
the domestic beef of the type formerly canned 
has been used in the manufacture of sausage, 
a more profitable outlet. The civilian demand 
for canned corned beef has been filled by the 
imported product. 

Imports of canned beef into the United States 
amounted to 21 million pounds in 1926 and in- 
creased to about 80 million pounds in 1929, in 
which year a period of low cattle production 
in the United States culminated. Such im- 
ports fell sharply for a time thereafter. From 
19.5 million pounds in 1931 they increased to 
88 million pounds in each of the years 1936 and 
1937. Entries amounted to 78.6 million pounds 
in 1938. to 85.9 million in 1939, and to 61.3 mil- 
lion in 1940. Since 1937 Argentina has been 
the leading source of imports of canned beef 
into the United States. 

Beef and veal, pickled or cured. Pickled or 
cured beef and veal provide relatively cheap 
meat especially adapted for use as ship stores 
and in situations where refrigeration facilities 
are inadequate. Domestic production of such 
meat, chiefly beef, is from the types and grades 
generally used for sausage. 

Imports of pickled or cured beef and veal are 
very small as compared with domestic produc- 
tion and are smaller than United States exports. 
United States production in 1935 was 63 million 
pounds, exports were 5.7 million pounds, and im- 
jwrts 1.5 million pounds. In 1937 domestic 
production was 71.4 million pounds, exports 5.5 
million, and imports 1.8 million. In 1939 do- 
mestic production Mas 67.3 million pounds, ex- 
ports 7.4 million, and imports 2.2 million. 

Canned meats, not elsewhere specified, and 
prepared or preserved meats, not specially pro- 
vided for. Imports reported under this classi- 
fication consist almost entirely of meat special- 
ties and have been relatively unimportant, 
amounting to 169,000 pounds in 1939 and to 62,- 
000 pounds in 1940. Products in this group that 
have been imported from Argentina are canned 
lamb, Oxford-type sausages, smoked lamb, and 



edible animal livers, tongues, hearts, sweet- 
breads, tripe, and brains. United States exports 
of products in this classification are greatly in 
excess of imports and consist chiefly of high- 
priced specialties. 

Grapes {including hothouse grapes) in hulk, 
crates, harrels, or other packages {par. 74^) 

Under the Tariff Act of 1930 all grapes were 
dutiable at 25 cents per cubic foot. The duty 
on hothouse grapes was bound against increase 
in the agreement with Belgium, effective May 1, 
1935. Under the agreement with Argentina the 
duty on grapes (including hothouse grapes) 
imported for consumption between February 15 
and June 30, inclusive, in any year, is reduced 
to 121/^ cents per cubic foot. The ad valorem 
equivalent of the duty was 18 percent in 1939. 

About one half of the gi-apes grown in the 
United States are used for wine, about one third 
for raisins, and the rest as table grapes. Prac- 
tically all imports of fresh grapes are for table 
use. 

Imports have little effect on the domestic mar- 
ket for table gi-apes, since they enter the United 
States during the season when domestic fresh 
table grapes are not moving heavily into the 
market. The duty reduction provided for in the 
agreement M-ith Argentina is not in effect during 
the season for marketing domestic fresh grapes 
for table use. 

The United States is on an export basis for 
fresh grapes, but both exports and imports are 
small as compared with domestic production. 
In the three-year period 1938-40 United States 
production of fresh grapes averaged 5,204 mil- 
lion pounds per year, of which an annual aver- 
age of 905 million pounds were marketed for 
table use. Exports in that period averaged 67 
million pounds per year and imports 13 million 
pounds. In 1940 domestic production was 5,154 
million pounds, 959 million pounds were mar- 
keted for table use, exports were 61 million 
pounds, and imports 12 million pounds. 

Argentina is by far the most important sup- 
plier of United States imports of fresh grapes. 
Other suppliers in the otf-season are Chile and 
South Africa. The only other significant im- 



16 



DEPARTMENT OF STATE BULLETIN: OCTOBER IS, 1941, SUPPLEMENT 



ports have been hothouse grapes from Belgium, 
generally selling at much higher prices than 
domestic grapes. 

Plimis, prunes, and prunelhs, green or ripe, not 
in brine {par. 7Jf8) 

Under the Tariff Act of 1930 plums, prunes, 
and prunelles were dutiable at % cent per 
pound. Under the agreement with Argentina 
the duty is reduced to 14 cent per pound on 
imports entering the United States from Feb- 
ruary 1 to May 31, inclusive, in any year. The 
ad valorem equivalent of the duty on these 
fruits was 13 percent in 1939. 

Domestic fresh plums and prunes are not held 
over in cold storage. Plums are consumed 
either fresh or canned. Prunes are produced 
principally for drying but are also consumed 
either fresh or canned. Domestic production 
of plums and prunes (including small quanti- 
ties left unharvested because of market condi- 
tions) amounted to about 758,700 tons in 1938 
and 757,500 tons in 1939. California plums 
marketed fresh and northwestern prunes mar- 
keted fresh and for canning totaled about 126,- 
800 tons in 1938 and 157,400 tons in 1939. Im- 
ports of fresh plums and prunes were 276 tons 
in 1938, 515 tons in 1939, and 552 tons in 1940. 
The United States is on an expoi-t basis with re- 
gard to these fruits, for which Canada is the 
principal foreign market. Total exports from 
the United States amounted to 8.000 tons in 
1938, to 7,000 tons in 1939, and to 5,000 tons 
in 1940. 

Argentina is the principal source of imports 
into the United States of both fresh plums and 
fresh prunes. 

Pears, green, ripe, or in irine {par. 7^0) 

Under the act of 1930 pears are dutiable 
at I/O cent per pound, and this duty is bound in 
the agreement against increase. The ad valorem 
equivalent of the duty in 1939 was 16 percent. 
United States production of pears increased 
from 20 million bushels in 1925 to about 32 mil- 
lion bushels a year in the period 1938^0. Har- 
vested production of fall and winter pears in- 
creased from 4.1 million bushels in 1935 to 6.2 
million bushels in 1938, amounted to 5.4 million 



in 1939 and to 5.6 million in 1940. Imports in- 
creased from 3,400 bushels in 1935 to 80,000 
bushels in 1939 and 240,000 bushels in 1940. In 
the period 1935-38 United States exports of 
pears ranged between 2.5 million bushels and 3.5 
million bushels. In 1939 the figure was 1.9 mil- 
lion bushels and in 1940, 533,000 bushels, as a 
result of the principal foreign markets for 
American pears having been closed as a result 
of the war. 

The bulk of the pears imported from Argen- 
tina arrive in the United States in February 
and March, consisting chiefly of the Williams 
(Bartlett) variety which, in the United States, 
is in season from August through October. In 
an exchange of notes in connection with the 
present agreement, the two Governments have 
agreed that the subject of limitation of exports 
of Argentine pears to the United States will be 
taken up in the near future through the mixed 
commission provided for in the agreement. 

Recognizing the seasonal difference in the pro- 
duction and marketing of pears in the United 
States and in Argentina, the Argentine Govern- 
ment has seasonally reduced its tariff on pears 
by 50 percent. United States exports of pears 
to Argentina amounted to 4,000,000 pounds in 
1929 and declined to 59,000 pounds in 1939 and 
131,000 pounds in 1940. 

Jellies, jams, marmalades, and fruit butters: 
Quince {par. 761) 
Under the act of 1930 all jellies, jams, mar- 
malades, and fruit butters were dutiable at 35 
percent ad valorem. In the agreement with the 
United Kingdom, effective January 1, 1939, the 
duty was reduced to 20 percent ad valorem. 
Under the trade agreement with Cuba, effective 
September 3, 1934, the preferential duty on im- 
ports of these products from that country was 
reduced from 28 to 14 percent ad valorem. Un- 
der the agreement with Argentina, the duty on 
jellies, jams, marmalades, and fruit butters 
made from quince is reduced to 17V^ percent. 

Flaxseed {par. 762) 

Under the Tariff Act of 1913, flaxseed was 
dutiable at 20 cents per bushel; under the act 



TRADE AGREEMENT WITH ARGENTINA : ANALYSIS 



17 



of 1921, at 30 cents; under the act of 1922, at 
40 cents; under Presidential proclamation 
of June 13, 1929, at 56 cents; and under the 
Tariff Act of 1930, at 65 cents. Under the act 
of 1930 the ad valorem equivalent was 57 per- 
cent in 1939 and 54 percent in 1940. 

Under the trade agreement with Argentina 
the rate is reduced to 321/2 cents per bushel for 
the duration of the existing abnormal situation 
in the flaxseed trade. Thirty days after the 
President shall have proclaimed that the ab- 
normal trade situation has terminated, the rate 
of duty shall be 50 cents per bushel. 

Flaxseed is used almost exclusively for man- 
ufacturing linseed oil, which is a necessary in- 
gredient in paints, varnishes, floor coverings, 
and similar products. Building and indus- 
trial operations involving the consumption of 
linseed oil are at high levels, and linseed-oil 
requirements are augmented by the defense 
need for certain military articles. An addi- 
tional factor in the demand is the increasing 
shortage of tung oil, perilla oil, and synthetic 
resins, for which linseed oil may be substituted 
in some uses. 

United States flaxseed requirements for the 
year which began July 1, 1941 are estimated at 
record levels, and domestic flaxseed production 
has never been equal to the requirements of the 
United States. 

United States production of flaxseed has in- 
creased since 1936, when it reached a record low 
point of 5,273,000 bushels at the end of a de- 
cline caused by unfavorable weather and disease 
conditions. Since 1936 weather and other grow- 
ing conditions have been favorable, and the re- 
lation between prices of flaxseed and of wheat 
have been favorable to the former. Under these 
and other influences flaxseed acreage increased 
and production rose to 31,217,000 bushels in 
1940 and to an estimated 31,900,000 bushels in 
1941. 

Imports of flaxseed declined from 24,296,000 
bushels in the year beginning July 1, 1926 to 
6,213,000 busliels in the year beginning July 1, 
1932. They rose again to 26,120,000 bushels in 



1936-37 and declined to 13,212,000 bushels in 
1939-40 and 11,198,000 bushels in 1940-41. 

Because of the shortage of shipping and the 
abnormally high cost of transportation, general 
imports of flaxseed into the United States from 
Argentina in the first six months of 1941 were 
slightly smaller than the imports in the same 
months in 1940. 

The annual average price of flaxseed (Min- 
neapolis no. 1) was $1.73 a bushel in the crop 
year 1935-36 and $1.65 per bushel in the crop 
year 1939-40. On September 29, 1941 it was 
$2.03 per bushel. 

Argentina is the principal supplier of flaxseed 
imports into the United States, having been the 
source of 91 percent of such imports during the 
past five crop years. 

Alfalfa seed {par. 763) 

Under the Tariff Act of 1930 the duty on 
alfalfa seed was 8 cents per pound. The duty 
was reduced to 4 cents per pound in the first 
agreement with Canada, effective January 1, 
1936, and was bound at that rate in the second 
agreement with Canada, effective January 1, 
1939. The reduced rate of duty is bound at 4 
cents in the agreement with Argentina. The ad 
valorem equivalent of the duty was 25 percent 
in 1939. 

Domestic production of alfalfa seed averages 
about 60 million pounds (1 million bushels) an- 
nually. Total imports of alfalfa seed and im- 
ports from Argentina amounted to 3,600,000 
pounds and 601,000 pounds, respectively, in 
1938; to 3,200,000 pounds and 802,000 pounds, 
respectively, in 1939 ; and 2,600,000 pounds and 
420,000 pounds, respectively, in 1940. 

Canary seed {par. 764) 

The duty on canary seed under the act of 
1930 was one cent per pound. It was reduced 
to 34 cent under the trade agreement with Tur- 
key, effective May 5, 1939, and is further reduced 
to l^ cent per pound in the agreement with 
Argentina. The ad valorem equivalent in 1939 
was 25 percent. 

Canary seed has been produced in some locali- 
ties in the United States but domestic produc- 



424407 — 41- 



18 



DEPARTMENT OF STATE BtTLLETIN: OCTOBER 18, 1941, SUPPLEMENT 



tion has always been small compared to imports. 
Imports enter almost entirely from Argentina, 
Turkey, and Morocco. Argentina has usually 
supplied approximately one half of the total 
imports. 

Asparagus in its natural state {par. 77]f) 

The rate of duty on imports of asparagus in 
its natural state was 50 percent ad valorem 
under the act of 1930 and is reduced, under the 
agreement with Argentina, to 25 percent ad 
valorem on shipments entering the United 
States from November 16 in any year to the 
following February 15, inclusive. Under the 
Tariff Act of 1922 the duty was 25 percent ad 
valorem throughout the year. 

The average annual production of asparagus 
for all purposes in the United States in 1939 
and 1940 amounted to 278 million pounds, 
valued at over 14 million dollars. Thirty-five 
percent of the total crop was canned. Average 
annual production of asparagus to be marketed 
in the fresh state amounted to 176 million 
pounds, valued at over 10 million dollars. The 
domestic marketing season begins in February 
and ends in June. 

Imports of fresh asparagus from Argentina, 
the principal source, have averaged about 45,000 
pounds a year in the period 1936-40 and enter at 
a time when there is little or no domestic 
production. 

Comed-heef hash {par. 775) 

Under the act of 1930 corned-beef hash was 
dutiable at 35 percent ad valorem. This rate 
is reduced to 20 percent ad valorem in the 
agreement with Argentina. Although data on 
United States production are not available, it is 
known that such production is large in com- 
parison with imports. Imports of corned-beef 
hash from Argentina were valued at $29,000 in 
1940, and Argentina was the principal supplier. 

Broomcom {par. 779) 

Under the Tariff Act of 1922, broomcom en- 
tered the country free of duty. Under the act 
of 1930 the duty was $20 per ton of 2,000 pounds. 
Imports must be disinfected, and this process 



adds from $8 to $10 per ton to the cost of im- 
ported broomcorn. Under the agreement with 
Argentina the rate is reduced to $10 per ton. 
The ad valorem equivalent of the duty was 34 
percent in 1939. 

During the period 1935-40 annual average 
production of broomcorn in the United States 
was about 42.250 tons, as compared with average 
imports of 700 tons and average exports of 2,002 
tons. Imports have entered principally in years 
when the domestic crop was short and prices 
relatively high. Argentina was the principal 
source of imports in 1935, 1936, and 1937 and the 
sole source of entries in 1939 and 1940. 

Wools not finer than 40^s {par. 1101 (a)) ; and 
wools not specially provided for and not 
finer than U's {par. 1102 {a) ) 

Under the Tariff Act of 1930 (par. 1101 (a)) 
wools not finer than 40's and not imported under 
bond for the manufacture of carpeting and cer- 
tain other specified articles were dutiable at the 
following rates per pound of clean content: 
Washed or in the grease, 24 cents; on the skin, 
22 cents; sorted or matchings if not scoured, 
25 cents; and scoured, 27 cents. Under the 
agreement with Argentina each of these rates is 
reduced by 11 cents. The great bulk of the 
wools entering under this classification are en- 
tered in the grease. The ad valorem equivalent 
of the duty was 88 percent in 1939. The reduced 
duties would have been equivalent to 48 percent 
ad valorem on the basis of the 1939 imports. 
The act of 1930 provides that duties on wools 
not finer than 40's that are imported under bond 
for the manufacture of carpeting and certain 
other articles are to be refunded. This pro- 
viso is bound against change in the agreement. 

Under the act of 1930 (par. 1102 (a)) wools 
not specially provided for and not finer than 
44's, i. e. 40's/44's, were dutiable at the follow- 
ing rates per pound of clean content : Washed 
or in the grease, 29 cents; on the skin, 27 cents; 
sorted or matchings if not scoured, 30 cents ; and 
scoured, 32 cents. Under the agreement with 
Argentina each of these rates is reduced 12 cents. 
The great bulk of the wools entering under this 
classification are also entered in the grease. 



TRADE AGREEMENT WITH ARGENTINA : ANALYSIS 



19 



Wools covered by paragraph 1101 (a) in- 
clude all true carpet types and other types not 
finer than 40's. Certain wools not of the true 
carpet type, but not finer than 40's, are some- 
times blended with carpet wools in the manu- 
facture of carpets, but are used chiefly in the 
manufacture of tweeds or sports clothing, 
lower-priced overcoatings, blankets, and felts. 
The wools covered by paragraph 1102 (a) are 
apparel (clothing and combing) wools finer 
than 40's but not finer than 44's. These wools 
are of higher grade than the non-carpet types 
provided for under paragraph 1101 (a) and are 
used for the same general purposes except that 
they are not well adapted for the manufacture 
of carpets. 

United States production of the finer types 
of wool, which makes up more than 99 percent 
of the domestic clip, is generally considerably 
less than this country's requirements for do- 
mestic consumption and is far below the usual 
level of domestic consumption when carpet 
wools are included. In the period 1930-39 
United States mill consumption of all wool av- 
eraged about 665 million pounds (grease basis) 
per year, while domestic production of shorn 
wool averaged about 366.5 million pounds per 
year during the same period. In 1940 domestic 
production was 387.8 million pounds and mill 
consumption 778.3 million pounds. Domestic 

[1,000 pounds- 



production in 1941, estimated at 399.3 million 
pounds, is less than half the record mill con- 
sumption of 900 million pounds which is ex- 
pected to occur this year. 

The only production of true carpet wools in 
the United States is about 100,000 pounds a year, 
shorn from flocks owned by Indians in the south- 
west. Imports of such wool supply practically 
the entire United States demand and have aver- 
aged nearly 96 million pounds a year during 
the past six years, 1935-40. Domestic produc- 
tion of wools other than carpet wools, but not 
finer than 40's, is also relatively small, the esti- 
mated annual average being about 2 million 
pounds as compared with average imports of 
over 16 million pounds a year during the period 
1935-40. United States annual average produc- 
tion of 40's/44's is estimated at about 4 million 
pounds, while imports of these types have aver- 
aged 4.7 million pounds in the six years 1935^0. 

Tlius, less than one percent of United States 
wool production is of the types affected by the 
concession in the agreement with Argentina, 
and domestic production of those types has 
been decreasing for a number of years. 

The bulk of the wools of the types included 
in the agreement are imported for use in the 
manufacture of carpets. Entries of wools of 
the types on which the concession applies, for 
the years 1935-40, have been as follows : 

-clean content] 





1935 


1936 


1937 


193S 


1939 


1940 


Dutiable wools: 

Not finer than 40's. . _ . 


11,549 
3,821 


23, 635 
6,960 


19, 786 
7, 0C6 


9,656 
1,799 


16,911 
4,685 


15 584 


40's/44's - . . 


3, 894 






Total dutiable 


15, 370 
110, 101 


30, 595 
96, 613 


26, 852 
121, 263 


11,455 
48, 726 


21, 596 
102,714 


19, 478 


Duty-free wools (not finer than 40's for use In 
manufacture of carpets) 


95 657 






Grand total . 


125, 471 


127, 208 


148, 115 


60, 181 


129, 310 


115, 135 







Since 1935, Argentina has ranked first as sup- 
plier of wools not finer than 40's, both carpet 
and other types. In a number of years prior 
to 1936, and again in 1940, Argentina was the 
principal supplier of the 40's/44's wools. Uru- 



guay was the principal supplier of these wools 
in 1936 and New Zealand from 1937 through 
1939. Argentina has been an important sup- 
plier in other recent years when it was not the 
chief source. 



20 DEPARTMENT OF STATE BULLETIN: OCTOBER 18, 1941, SUPPLEMENT 

Hides and skins of cattle of the bovine species riod, annual average imports of bovine hides 



{except hides and skins of the India water 
buffalo imported to be used in the manufac- 
ture of rawhide articles), rate or uncured, 
or dried, salted, or pickled {par. 1530 (a) ) 

Frona 1909 to 1930 United States imports of 
hides and skins of all kinds were free of duty. 
Under the act of 1930, hides and skins of cattle 
of the bovine species (excepting hides and skins 
of the India water buffalo imported to be used 
in the manufacture of rawhide articles) were 
dutiable at 10 percent ad valorem. Under the 
agreement with Argentina, the rate on the dutia- 
ble bovine hides and skins is reduced to a 5 
percent ad valorem. 

Bovine hides produced in the United States 
are of two main types or grades — packer hides 
of the better quality and country hides, which 
are of a poorer quality. Much of the domestic 
production is of the poorer quality, whereas 
the better grade predominates in imports. De- 
mand of tanners in this country is for the bet- 
ter grades, and the domestic supply of these 
grades is supplemented; by imports. At the 
same time, many of the domestic hides of the 
poorer quality find no domestic market and are 
exported from the United States. Thus this 
country normally both imports and exports 
cattle hides. 

Slaughter of cattle and calves in the United 
States and the corresponding production of 
hides are regulated largely by tiie market de- 
mand for beef and veal and not by the demand 
for hides. Hence, changes in the demand-and- 
supply condition for hides are frequently re- 
flected in sharp changes in the volume of 
imports, and the ratio of imports to domestic 
production varies. Quantity of domestic pro- 
duction, being governed principally by the mar- 
ket for meat, is very little affected by the volume 
of hide imports. Volume of imports, on the 
other hand, is very strongly influenced by the 
quantity of domestic production. 

From 1935 through 1910, average annual pro- 
duction of bovine hides of all kinds in the 
United States amounted to 28.3 million hides, 
of which 12.3 million were calf and kip skins 
and the rest cattle hides. During the same pe- 



amounted to 6 million hides (pieces), of which 
3 million were calf and kip skins. Argentina 
is the principal source of imports of cattle hides 
and an important supijlier of calf and kip skins. 
Annual United States exports of domestic cattle 
liides amounted to about one million hides, of 
\\hich about 50 percent were calf and kip skins. 

Footwear known as alpargatas, the uppers of 
which are composed wholly or in chief 
value of cotto-n or other vegetable fiber, and 
with soles composed wholly or in chief value 
of vegetable fiber other than cotton {par. 
1530 (e) ) 

Under the act of 1930 alpargatas were duti- 
able at 35 percent ad valorem. This duty is 
reduced to IJi/o percent ad valorem in the agree- 
ment with Argentina. 

Alpargatas are a form of sandal with hemp 
soles, commonly worn in certain European and 
Latin American countries. They are worn in 
the United States on bathing beaches and as 
bedroom or lounging shoes. 

Bags, baskets, belts, satchels, cardcases, pocket- 
hooks, jewel boxes, portfolios, and other 
boxes and cases, not jewelry, wholly or in 
chief value of reptile leather, and manufac- 
tures of reptile leather or of which reptile 
leather is the component material of chief 
value, not specially provided for; any of 
the foregoing permanently fitted and fur- 
nished with traveling, bottle, drinking, 
dining or luncheon, sewing, manicure, or 
similar sets {par. 1531) 
Under the Tariff Act of 1930 leather manu- 
factures included under paragraph 1531 were 
dutiable at 35 percent ad valorem if not fitted 
with the sets specified and at 50 percent ad 
valorem if so fitted. Under the agreement with 
the United Kingdom, effective January 1, 1939, 
duties on certain of the leather manufactures 
included under that paragraph were reduced by 
varying percentages. 

Under the agreement with Argentina the duty 
on all manufactures of reptile leather included 
under paragraph 1531, other than those fitted 
with the sets referred to, is reduced to 17^2 



TRADE AGREEMENT WITH ARGENTINA : ANALYSIS 

percent ad valorem and the duty on such manu- 
factures when so fitted is reduced to 25 percent 
ad valorem. 

Dog food, manufactured, unfit for human con- 
sumption, not specially provided for {par. 
1558) 

The Tariff Act of 1930 made no separate pro- 
vision for dog food. Imports of the various 
types of this commodity are classified under 
three groups: (1) Canned dog food containing 
a substantial quantity of cereals and unfit for 
human consumption, under paragraph 730; (2) 
dog biscuits under paragraph 733; and (3) 
canned and frozen dog food containing little 
or no cereals, under paragi-aph 1558. Under 
the Tariff Act of 1930 the types of dog food in- 
cluded under paragraph 1558 were dutiable at 
the rate of 20 percent ad valorem. In the agree- 
ment with Argentina this rate is reduced to 10 
percent ad valorem. 

Domestic production of dog food was first 
reported by the Bureau of Census in 1935, when 
it had a total value of about 20 million dollars. 
In 1937 the domestic production was about 
541 million pounds valued at 27.7 million dollars 
and in 1939 about 726 million pounds valued at 
33.2 million dollars. 

Free list 

The agreement with Argentina binds on the 
free list imports of certain commodities that 
are either not produced at all in the United 
States or not produced in quantities suflBcient 
to supply domestic demand. Wliile certain 
wools not finer than 40's, imported in bond for 
use in the manufacture of carpets and certain 
other specified articles, are not on the free list, 
the Tariff Act of 1930 provides for the refund 
or remission of the duties paid on them, and this 
proviso is bound in the agreement with Argen- 
tina. Imports of such wools constitute the larg- 
est single item covered by the agreement which 
is duty-free or on which the duty is refunded. 
Such imports were valued, in 1940, at $31,- 
089,000. 

Following is a list of the products, bound 
on the free list, imports of which in 1940 were 
valued at more than $400,000 : 

424407 — 41 4 



21 

Value of im- 
Article ports in I9i0 

Goat and kid skins .$15,887,000 

Sheep and lamb skins 9, 486, 000 

Sheep, lamb, and goat casings 7, 077, 000 

Fox furs 4, 800, 000 

Lamb and sheep furs (except caracul and 

Persian lamb) 3, 340, 000 

Unmanufactured horse and cattle hair 2,505,000 

Tankage (not for fertilizer) 1,809,000 

Crude bones, bone dust, bone meal, etc 1, 481, 000 

Hare furs 1,463,000 

Sausage casings other than sheep, lamb, 

and goat 854,000 

Horse, colt, ass, and mule hides and raw 

skins 1, 121,000 

Wildcat furs 453,000 

Dried blood 429, 000 

Imports of the following commodities, im- 
ports of which in 1940 were valued at less than 
$400,000 each, are also bound on the free list : 
Crude mate, tankage for fertilizer, quebracho 
wood, unmanufactured hoofs and horns, carpin- 
cho skins, and the following undressed furs — 
guanaquito, nutria, otter, seal, and ocelot. 

The following articles, bound on the free list 
in the agreement with Argentina, have also been 
bound on the free list in other agreements : Mate, 
crude, in the agreement with Brazil effective 
January 1, 1936; otter furs, in the second Ca- 
nadian agreement, effective January 1, 1939; 
fox (other than silver or black) and lamb furs, 
in the agreement with the United Kingdom, ef- 
fective January 1, 1939; hare furs, in the agree- 
ment with Turkey, effective May 5, 1939 ; tank- 
age (for fertilizer), in the United Kingdom 
agreement; horse and cattle body hair, in the 
second Canadian agreement; and sheep, lamb, 
and goat casings, in the Turkish agreement. 

B. SCHEDtTLE III 

Note : The following articles, listed in sched- 
ule III of the agreement with Argentina, are 
articles of which countries other than Argentina 
normally have been the chief suppliers of im- 
ports into the United States. Because of the 
effects of the war in Europe, supplies from these 
countries are now reduced or diminished. Con- 
cessions on any article enumerated and described 
in schedule III of the agreement with Argentina 
may be withdrawn by the United States at any 



22 



DEPARTMENT OF STATE BULLETIN: OCTOBER 18, 1941, SUPPLEMENT 



time after the termination of hostilities between 
the Governments of the United Kingdom and of 
Germany, on six months' written notice. 

All medicinal preparations of animal origin, 
not specially provided for {par. 6) 

Medicinal preparations of animal origin were 
dutiable under the act of 1930 at 25 percent ad 
valorem. This duty is reduced to I21/2 percent 
ad valorem in the agreement with Argentina. 

Among the products to which the concession 
applies are the following : Corpus lutewm-, urine 
concentrates, urine concentrate solutions, ox 
gall, bile compounds, gland extracts, and similar 
preparations. 

United States production of such prepara- 
tions (glandular products only) was valued at 
12.2 million dollars in 1935, at 15.2 million dol- 
lars in 1937, and at 18.2 million dollars in 1939. 
The principal producers in this country are the 
large meat packers and several of the larger 
medicinal houses. 

Before 1940 United States imports of medici- 
nal preparations of animal origin, principally 
glandular products, came chiefly from Switzer- 
land, Germany, Belgium, and the Netherlands. 
As a result of the European war, imports 
dropped sharply from 1939 to 1940. 

Berylliuin: Oxide or carhonate, not specially 
provided for {par. 5) 

Beryllium oxide and carbonate were dutiable 
under the act of 1930 at 25 percent ad valorem. 
In the agreement with Argentina, the duty is 
reduced to 12i/^ percent ad valorem. 

Domestic production of beryllium oxide and 
carbonate is largely from imported beryllium 
ore, of which Argentina is the principal sup- 
plier. Imports of beryllium oxide and carbon- 
ate have not been separately reported but are 
known to have been small. 

Oils, vegetable: Sunflower {par. 53) 

Sunflower oil was dutiable under the Tariff 
Act of 1930 at 20 percent ad valorem and in 
1936 was made subject to an import tax of 4iA 
cents per pound under section 2491 of the In- 
ternal Revenue Code. Under the agreement 
with Argentina the duty is reduced to 10 per- 



cent ad valorem and the import tax is reduced 
to 214 cents per pound. 

Little or no sunflower oil is produced in this 
country. Imports of sunflower oil anaounted 
to 37.1 million pounds in 1935 and 24.7 million 
jDOunds in 1936. They have been negligible 
since 1936. 

Eomano, Pecorino, Reggiatio, Parmesano, Pro- 
voloni, Sbrim, amd Goya cheeses in original 
loaves {par. 710) 

Under the act of 1930, cheeses of all types were 
dutiable at 7 cents per pound but not less than 
35 percent ad valorem. The agreement with 
Argentina reduces the duties on the Italian types 
of cheese specified to 5 cents per pound but not 
less than 25 percent ad valorem. The ad 
valorem equivalent of the duty on Italian-type 
cheeses was 36 percent in 1939. The reduced 
rate would have been equivalent to 26 percent ad 
valorem on the basis of the imports in 1939. The 
duties on practically all other types of cheese, 
except a few relatively unimportant ones, have 
been reduced in other trade agreements. 

United States production of Italian-type 
cheeses increased from 3.5 million pounds in 
1931 to 10.6 million pounds in 1935, 13.5 million 
pounds in 1937, and 20.5 million pounds in 1939. 
Comparable data on imports are available only 
for years since 1936. Total imports of Italian- 
type cheeses decreased from 23.8 million pounds 
in 1937 to 23.4 million pounds in 1939 and 17.6 
million pounds in 1940. 

Italy has been by far the principal source, 
supplying 22.4 million pounds in 1937 as com- 
pared to 11.6 million pounds in 1940. Imports 
from Argentina increased from 1.2 million 
pounds in 1937 to 5.7 million pounds in 1940. 

Fi^h, prepared or preserved in any manner, 
xohen packed in oil or in oil amd other sub- 
stances : Anchovies {par. 718 {a)) •,arulftsh, 
prepared or preserved in any nmnner when 
packed in airtight containers weighing with 
their contents not more than 15 poimds each 
{except fish packed in oil or in oil and other 
substances) -.Anchovies {par. 718 {b)) 
Prepared or preserved anchovies packed in 

oil or in oil and other substances were dutiable 



TRADE AGREEMENT WITH ARGENTINA : ANALYSIS 



23 



at 30 percent ad valorem under the act of 1930. 
The duty on anchovies packed in oil valued at 
not over 9 cents per pound was increased to 44 
percent ad valorem by Presidential proclama- 
tion effective January 13, 1934. Under the 
agreement with Argentina, the duty on these 
anchovies is reduced to 22 percent ad valorem 
and the duty on anchovies packed in oil, valued 
at over 9 cents per pound is reduced to 15 per- 
cent ad valorem. 

The duty on anchovies (not in oil) packed in 
airtight containers weighing with their contents 
not more than 15 pounds each is reduced under 
the agreement from 25 percent ad valorem under 
the act of 1930 to I214 percent ad valorem. 

The species of anchovies caught off the Cali- 
fornia coast do not yield a cured product com- 
parable M'ith the European and are used as bait 
and for fish meal and oil. 

Imports of anchovies in recent years have 
consisted almost entirely of anchovies packed 
in oil, valued at over 9 cents per pound (par. 
718 (a)), and anchovies (not in oil) packed in 
airtight containers, weighing with their con- 
tents not over 15 pounds each (par. 718 (b)). 
Imports of the former amounted to about 2.4 
million pounds in each of the years 1935 and 
1936, decreased to 2.1 million pounds in 1938, 
and then increased to 3 million pounds in 1940. 
Imports of this type of anchovies from Argen- 
tina have heretofore been small, amounting to 
about 15,000 pounds in 1940. Before the out- 
break of the war in Europe, anchovies packed 
in oil came almost entirely from Italy ; Portugal 
replaced Italy as the chief supplier in 1940 and 
in the first six months of 1941. 

Imports of anchovies (not in oil) in airtight 
containers weighing with their contents not over 
15 pounds each amounted to 3 million pounds 
in 1935, to 1.5 million pounds in each of the 
years 1936 and 1937, and to 2 million pounds in 
each of the years 1938, 1939, and 1940. Ship- 
ments from Argentina amounted to 23,000 
pounds in 1937, to 27,000 pounds in 1938, to 
203,000 pounds in 1939, and to 379,000 pounds 
in 1940. 



Macaroni, verrmcelli, noodles, and similar ali- 
mentary pastes {par. 725) 

Under the act of 1930 macaroni, vermicelli, 
noodles, and similar alimentary pastes were duti- 
able at 3 cents per pound if they contained eggs 
or egg products and at 2 cents per pound if they 
contained no eggs or egg products. Under the 
agreement with Argentina, these duties are re- 
duced to 2 cents and ly^ cents per poimd, respec- 
tively. The ad valorem equivalent of the duty 
on such products containing eggs was 21 percent 
in 1939. The reduced duty would have been 
equal to 14 percent ad valorem on the basis of 
1939 imports. The ad valorem equivalent of the 
duty on the products not containing eggs was 21 
percent in 1939. The reduced duty would have 
been equal to 16 percent on the basis of 1939 
imports. 

United States production of macaroni, ver- 
micelli, noodles, and similar products has been 
very large compared to imports. 

Tomatoes, prepared or preserved in any tnarmer 
{par. 772) 

Under the act of 1930 the duty on tomatoes, 
prepared or preserved in any manner, was 50 
percent ad valorem. This duty is reduced under 
the agreement with Argentina to 25 percent ad 
valorem. 

United States production of prepared or pre- 
served (canned) tomatoes is many times that 
of all the rest of the world combined. 

Brandy {par. 802) 

The duty on brandy was reduced from $5 per 
proof gallon under the act of 1930 to $2.50 per 
proof gallon in the agreement with France, ef- 
fective June 15, 1936. The rate as reduced under 
the French agreement is bound in the agreement 
with Argentina. 

In recent years, about three fourths of the bev- 
erage brandy consumed in the United States has 
been produced in this country. Domestic pro- 
duction increased from 1.8 million proof gallons 
in the fiscal year 1934-35 to 2.5 million in 
1935-36, and amovmted to 1.9 million proof gal- 
lons in the fiscal year 1936-37, as compared with 
10.2 million in 1938-39 and 2 million in 1939-40. 



24 



DEPARTMENT OF STATE BULLETIN: OCTOBER 18, 1941, SUPPLEMENT 



Imports increased from 443,000 proof gallons in 
the calendar year 1935 to 738,000 in 1937; they 
decreased to 665,000 in 1938 and tlien increased 
to 771,000 in 1940. 

Cordials, liqueurs, kirschwasser, and rata:fla 
(par. 802) 

Tlie duty on cordials, liqueurs, kirschwasser, 
and ratafia was reduced from $5 per proof gal- 
lon under the act of 1930 to $2.50 per proof gal- 
lon in the agreement with France, effective June 
15, 1936. The duty of $2.60 per proof gallon is 
bound in the agreement with Argentina. 

United States production of liqueurs and cor- 
dials amounted to 3.1 million proof gallons in 
the fiscal year 1935-36 and 3.8 million in 1936-37 : 
it decreased to 2.2 million in 1938-39 and 2.4 
million in 1939-40. In the period 1936-40, im- 
ports ranged from 260.000 proof gallons in 1940 
to 299,000 proof gallons in 1939. 

Bitters of all kinds containing spirits {par. 802) 
Bitters containing spirits were dutiable at $5 
per proof gallon under the act of 1930. This 
duty was reduced to $2.50 per proof gallon in 
the agreement with the United Kingdom, ef- 
fective January 1, 1939. The rate under the 
United Kingdom agi-eement is bound in the 
agreement with Argentina. 

United States production is estimated at more 
than 50,000 gallons annually. Imports of bit- 
ters amounted to 8,300 proof gallons in 1937, to 
7,700 proof gallons in 1938, to 10,200 in 1939, 
and to 6,700 in 1940. 

Champagne and all other sparkling wines {par. 
803) 

In the agreement with France the duty on 
champagne and other sparkling wines was re- 
duced from $6 per gallon under the act of 1930 
to $3 per gallon, which duty is bound in the 
agreement with Argentina. 

United States production of champagne and 
other sparkling wines increased from 414,000 
gallons in the fiscal year 1935-36 to 489,000 gal- 
lons in 1937-38 and amounted to 334,000 gallons 
in 1938-39 and 482,000 gallons in 1939-40. Im- 
ports increased from 274,000 gallons in 1935 to 
573,000 gallons in 1937 and then declined to 



478,000 gallons in 1938. Entries in 1939 and 
1940 amounted to 557,000 and 456,000 gallons, 
respectively. 

France has usually supplied more than 95 
percent of United States imports of sparkling 
wines. Before 1940, such imports from Argen- 
tina were insignificant, but in 1940 they 
amounted to slightly over 7,000 gallons. 

StiJl wines produced from grapes {not inchid- 
mg vermuth), containing H. per centum or 
less of absolute alcohol hy volume, in con- 
tainers holding each one gallon or less {par. 
804) 

The duty on still wines under this classifica- 
t ion was $1.25 per gallon under the act of 1930, 
w as reduced to 75 cents per gallon in the trade 
agreement with France, and is bound at that 
rate in the agreement with Argentina. 

United States production of "dry" still wines 
increased from 14.5 million gallons in the fiscal 
year 1935-36 to 34.7 million gallons in 1937-38. 
in 1938-39 and 1939-40, production was much 
smaller, amounting to about 22.6 million gallons 
in each year. 

Imports of still wines (other than vermuth), 
containing less than 14 percent of alcohol and 
in containers holding one gallon or less, 
amounted to 898,000 gallons in 1938, to 1,024,000 
in 1939. and to 777,000 gallons in 1940. France, 
Italy, Spain, the United Kingdom, and Ger- 
many have been the principal suppliers of 
Ignited States wine imports; and in 1940 Fi-ance 
and Italy were the leading suppliers. Imports 
from Argentina decreased from 6,000 gallons in 
1936 to about 1,000 gallons in each year of 
1938-40. 

Vermuth, in containers holding each one gallon 
or less {par. 804) 

The duty on vermuth, in containers holding 
one gallon or less, of $1.25 per gallon under the 
act of 1930 was reduced to 621/^ cents per gal- 
lon in the agreement with France and is bound 
at that rate in the agreement with Argentina. 

United States production of vermuth in- 
creased from an average of 218,000 gallons in 
the two years 1937-38 and 1938-39 to 489,000 
gallons in 1939-40. 



TRADE AGREEMENT WITH ARGENTINA : ANALYSIS 



25 



Imports in 1937 and 1938 were slightly over 
one million gallons a year. In 1939 and 1940, 
imports amounted to 1.4 million gallons a year. 
Prior to 1940, imports of vermuth from Argen- 
tina were very small, but in that year they 
amounted to 86,000 gallons and increased in 
the first six months of 1941 to 168,000 gallons, 
compared with total imports in this period of 
318,000 gallons. 

Dressed furs arid dressed fur shins, not dyed: 
Larnh and sheep {except caracul and' Persian 
lamb), goat and kid, and hare {par. 
1519 {a)) 
Dressed furs and dressed fur skins (except 
silver or black fox), if not dyed, were dutiable 
at 25 percent ad valorem under the act of 1930. 
The duty on fur skins, dressed but not dyed, of 
lamb and sheep (except caracul and Persian 
lamb) was reduced to 15 percent ad valorem 
in the agreement with the United Kingdom, ef- 
fective January 1, 1939. In the agreement with 
Argentina the duty on fur skins, dressed but 
not dyed, of lamb and sheep (except caracul and 
Persian lamb) is bound at 15 percent ad 
valorem, and the duty on dressed, but not dyed, 
goat and kid and hare fur skins is reduced to 
12i/o percent ad valorem. 

Domestic production of these dressed fur 
skins is large in comparison with imports and 
is derived almost entirely from the dressing of 
imported raw fur skins. Imports of dressed, 
but not dyed, lamb and sheep fur skins (except 
caracul and Persian lamb) decreased from 
19,200 skins in 1935 to 5,400 skins in 1938, 8,300 
skins in 1939, and 5,800 skins in 1940. 

Plates, mats, linings, strips, and crosses of 
dressed goat or kid skins, if not dyed {par. 
1519 {a) ) 
Plates, mats, linings, strips, and crosses of 
dressed, but not dyed, goat or kid skins were 
dutiable under the Tariff Act of 1930 at 25 per- 
cent ad valorem. The duty is reduced in the 
agreement with Argentina to 12i/^ percent ad 
valorem. Plates, mats, linings, etc., of dog, 
goat, or kid skins are not produced in the United 
States. 



Plates, mats, linings, strips, and crosses of hare, 

lamb, and sheep furs {except caracul and 

Persian lamb), if not dyed {par. 1519 {b) ) 

Plates, mats, linings, strips, and crosses of 

hare, lamb, and sheep furs (except caracul and 

Persian lamb), if not dyed, were dutiable at 

35 percent ad valorem under the act of 1930. 

In the agreement with Argentina the duty is 

reduced to 17V2 percent ad valorem. These 

articles are not produced in the United States. 

Free list 

Argols, tartar, and wine lees, crude or partly 
refined, containing less than 90 percent of 
potassium bitartrate, and calcium tartrate, 
crude, are bound on the free list in schedule 
III of the agreement with Argentina. Total 
imports of these products in 1940 were valued 
at 2.1 million dollars. 

VI. General Provtsigns and Exchanges gf 

Notes 

The general provisions of the agreement 
embody the basic principle of equality of treat- 
ment essential to the development of interna- 
tional trade upon a sound and non-discrimi- 
natory basis. They define the nature of the 
obligations assumed by each country in making 
tariff concessions to the other, set forth recipro- 
cal assurances of non-discriminatory treatment 
with respect to all forms of trade control, and 
contain provisions relating to various other mat- 
ters affecting the trade between the two coun- 
tries. 

Provisions relating to treatment of trade in 
general 
Article I provides that the United States and 
Argentina shall in general accord to each other 
unconditional most-favored-nation treatment 
with respect to customs duties and related mat- 
ters, including methods of levying duties and 
charges and the application of rules and for- 
malities. This means that each country obli- 
gates itself to extend to the other, immediately 
and without compensation, the lowest rates of 
customs duties which are granted to any other 
country, either by autonomous action or in con- 



26 



DEPARTMENT OF STATE BULLETIN: OCTOBER 18, 1941, SUPPLEMENT 



nection with a commercial agreement with a 
third country. 

Article II of the agreement relates to the 
imposition of internal taxes or charges levied 
in either country on products imported from 
the other and provides that such taxes or 
charges shall not in general be higher than 
those imposed on like articles of domestic or 
other foreign origin. An exception is made in 
the case of taxes imposed by the Argentine Gov- 
ernment on alcohol, alcoholic beverages, beer, 
natural mineral waters, and fabrics containing 
40 percent or more of silk or artificial silk, 
which, if of foreign origin, are taxable at a 
higher rate than are the domestic products. 

Article III applies in general the principle of 
non-discriminatory treatment to import quotas, 
prohibitions, and other forms of restriction on 
imports. Any such restriction is to be based 
upon a pre-determined amount of imports of 
the article, i. e., a global quota. If either 
country establishes such restrictions and if any 
third country is allotted a share of the total 
amount of permitted importations of any ar- 
ticle, the other country shall also be allotted 
a share which shall be based upon the propor- 
tion of the total imports of such article which 
that countr}' supplied in a previous representa- 
tive period. 

Article IV extends in general the principle 
of non-discriminatory treatment to any form of 
exchange control by either country over tiie 
transfer of payments for imports originating 
in the other country. Accordingly, paragrajjhs 
1 and 2 of the article provide that the Govern- 
ment of either country shall accord to any prod- 
uct originating in the other country, in regard 
to restrictions or delays on payments, exchange 
rates, and taxes or charges on exchange trans- 
actions, treatment no less favorable than that 
accorded the like product originating in any 
third country. Paragraph 3 of the article pro- 
vides that the foregoing provisions shall not 
prevent the adoption of any measure deemed 
necessary in time of war or other national 
emergency. 

Article V extends the principle of non-dis- 
criminatory treatment to foreign purchases by 



the Government of either country or by gov- 
ernment monopolies. 

Article VI provides for the prompt publica- 
tion of laws, regulations, and administrative 
and judicial decisions relating to the classifica- 
tion of articles for customs purposes or to rates 
of duty. With certain customary exceptions re- 
lating to anti-dumping duties, health or public- 
safety measures, etc., the article also provides 
that no administrative ruling by either country 
effecting advances in rates of duties or in charges 
applicable under an established and uniform 
practice to imports originating in the other coun- 
try, or imposing any new requirement with re- 
spect to such importations, shall be effective 
retroactively or with respect to articles imported 
prior to the date of publication of notice of 
such ruling in the usual official manner. 

Provisions relating to concessions 

Articles VII and VIII of the agreement relate 
to the tariff concessions granted by each country 
on products of the other and provide that prod- 
ucts inckided in the schedules annexed to the 
agreement shall, upon importation into the other 
country, be exempt from ordinary customs du- 
ties higher than those specified in the schedules 
and from all other charges in connection with 
importation in excess of those imposed on the 
day of signature of the agreement or required to 
be imposed thereafter by laws in force on that 
day. 

However, in paragraph 3 of article VIII, the 
United States reserves the right to withdraw or 
to modify the concessions granted on any article 
contained in schedule III at any time after the 
termination of hostilities between the United 
Kingdom and Germany, on giving six months' 
written notice to the Argentine Government. 
The articles included in schedule III comprise 
in general those formerly obtained principally 
from areas at present lacking access to the United 
States market because of the war in Europe. 

Article IX permits either country, notwith- 
standing the provisions of articles VII and 
VIII, to impose on any product imported from 
the other country an import charge equivalent 
to an internal tax imposed on a similar domestic 



TRADE AGREEMENT WITH ARGENTINA : ANALYSIS 



27 



product or on any article from which the im- 
ported product has been made. 

Article X safeguards importers against ad- 
verse changes in the methods of determining 
dutiable value and of converting currencies in 
connection with products listed in the sched- 
ules which are or may be subject to ad valorem 
rates of duty. 

Article XI contains a general undertaking 
that no quantitative restrictions shall be im- 
posed by either country on importations from 
the other country of any of the products listed 
in the schedules annexed to the agreement, with 
a reservation that this provision does not apply 
to quantitative restrictions imposed by eitlier 
country in conjunction with governmental 
measures which operate to regulate or control 
the production, market supply, or prices of like 
domestic articles, or which tend to increase the 
labor costs of production of such articles, or 
which are necessary to maintain the exchange 
value of the currency of the country. 

Article XII contains a provision for broad 
consultation between the Governments of the 
two countries in regard to all matters affecting 
the operation of the agreement through the me- 
dium of a mixed commission to be established 
under the terms of paragraph 2 of the article. 
Paragraph 1 of the article provides that if the 
Government of either country considers that an 
industry or the commerce of that country is 
prejudiced, or any object of the agreement is 
nullified or impaired as a result of any circum- 
stance or of any measure taken by the other 
Government, the latter Government shall con- 
sider such representations or proposals as may 
be made by the former Government; and if 
agreement is not reached, the Government mak- 
ing the representations or proposals shall be 
free to suspend or terminate the agreement in 
whole or in part on 30 days' written notice. 

Provisions as to application of the agreement 
Article XIII provides that the agreement 
shall apply, on the part of the United States, 
to the continental United States and to the 
territories and possessions included in its cus- 
toms territory, the most important of which 



are Alaska, Hawaii, and Puerto Rico. The 
most-favored-nation provisions of the agree- 
ment will, however, apply also to those posses- 
sions of the United States which have separate 
tariffs, including the Philippines, the Virgin 
Islands of the United States, American Samoa, 
and the island of Guam. 

Article XIV excepts from the application of 
the agreement special advantages granted by 
the Government of either country to adjacent 
countries to facilitate frontier traffic, and ad- 
vantages accorded to any third country as a 
result of a customs union. There is also in- 
cluded the usual exception relating to special 
advantages accorded by the United States and 
its territories and possessions or the Panama 
Canal Zone to one another or to the Republic 
of Cuba. 

Furthermore, in an exchange of notes ac- 
companying the agreement, the Government of 
the United States agrees not to invoke the pro- 
visions of article I of the agreement in respect 
of any tariff preferences which Argentina may 
accord to a contiguous country looking to the 
gradual and ultimate achievement of a customs 
union between Argentina and any such country ; 
provided such tariff preferences conform to the 
formula recommended by the Inter-American 
Financial and Economic Advisory Committee 
on September 18, 1941, pursuant to resolution 
LXXX of the Seventh International Confer- 
ence of American States at Montevideo, ap- 
proved December 24, 1933. This formula 
stipulates: (1) That any such tariff preferences 
shall be made effective through trade agree- 
ments embodying tariff reductions or exemp- 
tions; (2) that the parties to such agreements 
should reserve the right to reduce or eliminate 
the customs duties on like products imported 
from other countries; and (3) that any such 
tariff arrangements should not be an obstacle 
to any broad program of economic reconstruc- 
tion involving the reduction of tariffs and the 
scaling down or elimination of tariff and other 
trade preferences with a view to the fullest 
possible development of international trade on a 
multilateral unconditional most-favored-nation 



28 



DEPARTMENT OF STATE BULLETIN: OCTOBER 18, 1941, SUPPLEMENT 



basis. The note also provides, with reference 
to articles III and IV of the agreement relating 
to quantitative limitations on imports and ex- 
change control, respectively, that any special 
quota or exchange facilities which Argentina 
may accord to contiguous countries and Peru 
shall cease upon the termination of the present 
hostilities between the United Kingdom and 
Gennany, except as may be otherwise agreed 
upon between the two Governments. 

By a second exchange of notes, the Govern- 
ment of the United States agrees not to invoke 
the provisions of the agreement relating to non- 
discriminatory treatment in respect of special 
facilities which Argentina may accord to im- 
ports of articles originating in the so-called 
"sterling area" covered by the existing payments 
arrangement in effect between Argentina and 
the United Kingdom. As indicated in the note 
from the Argentine Government, the reason for 
this exception arises primarily from the present 
European war; more particularly, from the ina- 
bility of Argentina to convert freely into dollars 
the proceeds derived from its exports to the 
"sterling area" under the existing payments ar- 
rangement in effect between Argentina and the 
United Kingdom. Accordingly, the note pro- 
vides that the exception shall terminate as soon 
as it becomes possible for Argentina to convert 
its sterling balances into free currencies. 

Article XV exempts from the provisions of the 
agreement regulations affecting imports or ex- 
ports of gold and silver, measures relating to 



public security, neutrality, sanitary regulations, 
etc. 

Article XVT provides for sympathetic con- 
sideration of representations in regard to cus- 
toms regulations and related matters and the 
application of sanitary regulations. If there 
should be disagreement between the two Gov- 
ernments with respect to sanitary laws or regu- 
lations, a committee of experts including 
representatives of both Governments may be 
established upon request of either Government. 
This committee would then study the matter 
and submit a report to both Governments. 

Article XVII provides that the agreement is 
to come definitively into force 30 days after 
exchange of the Argentine ratification and the 
Pi'esident's proclamation of the agreement. 

Article XVIII provides that the agreement 
shall come into force provisionally on November 
15, 1941, subject to the right of either Govern- 
ment to terminate the provisional application 
of the agreement pursuant to the provisions 
of paragraph 1 of article XII or upon six 
months' notice. 

Article XIX provides that the agreement is 
to remain in force until November 15, 1944, un- 
less terminated earlier in accordance with the 
provisions of article XII or article XVIII. If 
neither Government has given the other notice 
of intention to terminate the agreement on 
November 15, 1944, it will continue in force 
thereafter, subject to termination on six months' 
notice. 



TRADE AGREEMENT WITH ARGENTINA : ANALYSIS 



29 



TABLE A 
Itemized List of Tariff Concessions Obtained From Argentina (Schedule I) 

Duties are net, including base duties and surtaxes calculated on official valuations, or ad valorem, and are 
expressed in Argentine gold pesos or percentage of declared value. The Argentine gold peso equals 2.2727 paper 
pesos and the value of the paper peso varies, in terms of dollars, with the class of exchange available for a specific 
conversion. However, for obtaining an approximate idea of the level of the duties enumerated in this list, it is 
suggested that the Argentine gold peso be considered to equal about 55 cents. Duties specified under stage I 
become effective when agreement enters into force; tho.se enumerated under stage II become effective when Argen- 
tine customs revenue from import duties exceeds 270 million paper pesos in any calendar year. 

The kilo'=2.204 pounds; D. V.^declared value; n. a. ■= statistics not available. 





Description of commodity (abbreviated) 


Unit 


Pre-agree- 
ment duty 


Agreement duties and extent of conces.sions 


U. S. exports to 
Argentina 


Argentine 
tariff 
itoni 


Stage I 


Stage II 


(in thousands of 
dollars) 


number 


Duty 


Reduc- 
tion 


Duty 


Reduc- 
tion 


1939 


1940 


79 


Prunes 


Kilo 


0. 1403 


0.099 


30% 


0.099 


30% 


41 


134 


92 


Canned salmon and mackerel 


Kilo - 


0.7202 


0.432 


40% 


0.432 


40% 





1 


98 


Dried pitted peaches, apples, pears, 


Kilo 


0.157 


0.157 


Bound 


0.157 


Bound 


0.4 


1 




and cherries. 


















112 


Apples, fresh (from Oct. 1 to Jan. 31, 
inclusive). 


Gross kilo 


0.063 


0.032 


49% 


0.032 


49% 


119 


41 


113 


Pears, fresh (from Oct. 1 to Dec. 31, 
inclusive). 


Gross kilo 


0.063 


0.032 


49% 


0.032 


49% 


7 


6 


114 


Grapes, fresh (from Sept. 1 to Nov. 30, 

inclusive). 


Gross kilo 


0.042 


0.021 


50% 


0.021 


50% 








126 


Chewing gum, uncoated 


Kilo 


0.336 
0.0416 
0. 1794 
0. 1680 


0.336 
0. 0416 
0.117 
0.118 


Bound 

Bound 

36% 

30% 


0.336 
0. 0416 
0.117 
0.118 


Bound 

Bound 

36% 

30% 


12 
6 
23 
11 


12 


172 


Walnuts Cunshelled) 


Kilo 


9 


187 


Raisins, Corinth or Sultana 

Canned sardines, in tomato or mustard 
sauce, or cottonseed oil. 


KUo 


14 


226 


Kilo 


9 








336 


Cigarettes 


Kilo --.- 


1.794 
0. 4838 
(") 


1.794 
0. 4838 
0. 20 per 


Bound 

Bound 

(') 


1.794 
0. 4838 
0. 20 per 


Bound 
Bound 


16 
235 


12 


346 


Tobacco, leaf or cut 


Kilo.,- -. 


641 


627 


Passenger cars, 1,000 to 1,500 gross kilos 








(value to 1,600 gold pesos). 






kUo-1-10% 




kilo-l-10% 








628 


Passenger cars, 1,000 to 1,500 gross kilos 


D. V 


67% 


67% 


Bound 


57% 


Bound 








(value over 1,600 gold pesos). 


















629 


Passenger cars, 1,500 to 1,900 gross kilos 




(') 


0. 20 per 


(') 


0. 20 per 


(») 


12, 222 


13, 767 




(value to 1,600 gold pesos). 






kUo-l-10% 




kUo-HO% 








630 


Passenger cars, 1,500 to 1,900 gross kilos 


D. V... 


57% 


67% 


Bound 


67% 


Bound 








(value over 1,600 gold pesos). 


















631 


Passenger cars, 1,900 kilos gross weight 


D. V 


67% 


57% 


Bound 


57% 


Bound 








and over. 


















632 


Truck chassis --- 


1 


0.08 per 


0.08 per 


Bound 


0.06 per 


•'25% 


Included with 


634 


Omnibus chassis 


;-- - 


kllo-f 10% 


kilo-1-10% 




kilo-fl0% 




figures on pas- 
















senger cars un- 


















der items 627- 


















631, inclusive 




Note 1. Assures the mainte- 




















nance of present favorable methods 




















ofestablishing the "declared value" 




















for duty purposes for articles enum- 




















erated and described in the items 




















627 to 632, inclusive, and 634. 




















Note 2. Binds the present sys- 




















tem of making semi-assembled and 




















unassembled units dutiable at 15 




















percent and 30 percent, respec- 




















tively, below the full duties. 



















• Pre-agrcement duty: 200 gold pesos-fO.30 per kilo over 1,000 kilos and 10 percent 

* Percent reduction varies with weight of car. 

' Pre-agreement duty: 350 gold pesos-|-0.40 per kilo over 1,600 kilos and 10 percent. 
<* In specific duty, surtax bound. 



30 



DEPARTMENT OF STATE BULLETIN: OCTOBER 18, 1941, SUPPLEMENT 



TABLE A— Continued 
Itemized List of Tariff Concessions Obtained From Argentina (Schedule I) — Continued 











Agreement duties and extent of concessions ] 


U. S. exports to 


















Argentina 


Argentine 




1 






(in thousands of 


tariff 
item 


Description of commodity (abbreviated) 


rnit 


Pre-agree- 
ment duty 


Stage I 1 


Stage II 1 


dollars) 


number 






















Duty 


Reduc- 
tion 


Duty 


Reduc- 
tion 


1939 


1940 


636 


Automobile parts for bodies (except 
those mentioned below). 


KUo - 


0.282 


0.264 


10% 


0.197 


30% 








Automobile parts for bodies: door 
handles with or without locks; cur- 


Kilo 


0.282 


0.282 


Bound 


0.282 


Bound 














tains and sun visors; mirrors; cushion 




















springs of iron or steel; glass for doors. 




















windows, windshields, and exten- 




















sions; door, window, and windshield 




















mouldings; upholstery; and body 




















shell, running boards, doors, seats. 




















turret-type steel top, top, seatbacks, 














2,891 


2,304 




trunks, roof top side wings of canvas 




















for trucks. 


















€37 


Automobile parts for chassis (except 
those mentioned below). 


Kilo 


0.376 


0.338 


10% 


0.263 


30% 


























Automobile parts for chassis: bumpers, 
gasoline tanks, rear axles, spare tire 


Kilo _ 


0.376 


0.376 


Bound 


0.376 


Bound 


























carriers, trunk rack, shock absorbers, 




















steerhig knuckles; and fenders, 




















wheels and parts, Iron and rubber 




















rims for trucks. 


















638 


Automobile parts for ignition systems 


Kilo-... 


1.41 


1.269 


10% 


0.987 


30% 








(except those mentioned below) . 




















Automobile parts (or ignition systems: 
horns, cable terminals, contact keys, 


Kilo 


1.41 


1.41 


Bound 


1.41 


Bound 


























distributor gear, and distributor 




















shaft. 


















639 


Automobile parts for engines (except 


Kilo 


0.705 


0.635 


10% 


0.494 


30% 








those mentioned below). 




















Automobile parts for engines: radiators, 
piston rings or pistons, piston pins. 


Kilo 


0.705 


0. 705 


Bound 


0.705 


Bound 


Included with 
















figures on parts 




piston pin bushings, and fly wheel 














under items 636 




ring gears. 














and 637 


640 


Automobile parts for transmission and 
steering assemblies (except those 
mentioned below). 


KUo 


O..^ 


0.508 


10% 


0.395 


30% 








Automobile parts for transmission and 


Kilo .- . 


0.564 


0.564 


Bound 


0. ."164 


Bound 








steering assemblies: transmission 




















gears for trucks, except helical gears; 




















pins; bushings; brake shoes or hous- 




















ings. 


















1195 


Asbestos brake lining, without wire 


Kilo 


0.3024 


0.227 


25% 


0.151 


60% 






1196 


Asbestos brake lining, with wire 


Kilo 


0.4032 


0.302 


25% 


0.202 


60% 


103 


169 


1207 


Plows, ordinary 


Each 


0.96 


0.96 


Bovmd 


0.96 


Bound 


261 
410 




1208 


Plows, on wheels- 


Each-. 


4.80 
0.108 


4.80 
0.108 


Bound 
Bound 


4.80 
0.108 


Bound 
Bound 


227 


1304 


Pumps with iron or steel cylinders 

Pumps with brass or bronze cylinders,. 

NOTE: The lower duty of 15 per- 


Kilo 




1305 


Kilo 


0.1728 


0. 1728 


Bound 


0.1728 


Bound 


972 






















cent provided for in item 1304 ap- 




















plies only to pumps for wells or ex- 




















traction of water. 


















1378 


Rubber hose with cloth Insertions- 


KUo 


0.6768 


0.541 


20% 


0.641 


20% 


116 


83 


1401 


Casks of wood, assembled or unas- 
sembled. 


Each 


0.24 


0.24 


Bound 


0.24 


Bound 


470 


294 








1405 


Cement (clinker) white 


lOOkUos 


4.032 


3.024 


25% 


2.016 


.w% 


95 


59 



TRADE AGREEMENT WITH ARGENTINA : ANALYSIS 



31 



TABLE A— Continued 
Itemized List op Tariff Concessions Obtained From Argentina (Schedule I) — Continued 











Agreement duties and extent of concessions 


U. 8. exports to 


















Arge 
(in tho 


ntlna 


Argentine 










u sands 


tariS 

item 


Description of commodity (abbreviated) 


Unit 


Pre-agree- 
ment duty 


Stage I 


Stage 11 


of dollars) 


number 






















Duty 


Reduc- 
tion 


Duty 


Reduc- 
tion 


1939 


1940 


Decree of 


(o) Complete mechanisms for auto- 


D. V 


42% 


42% 


Bound 


42% 


Bound 


Included with 
item 1660 


9/22/36 


matic refrigerators (valuation not 




Aj\j\^u\^ 


A^fUUUXA 




to exceed 1.00 gold peso per kilo). 




















(6) Parts and accessories for automatic 


D. V 


42% 


35% 


17% 


27% 


36% 


651 


807 




refrigerators. 








1480 


Compressors, iron or steel 


Kilo 


0. 21 


0. 21 


R Al 1 Tl d 


0. 21 


T^niinH 


135 


216 
184 


1629 


Boiler-scale removers 


Gross kilo 


0.1008 


0. 1008 


Bound 


0. 1008 


Bound 


188 


1593 


Asphalt and asbestos roofing felt 


Orosskilo 


0. 0336 


U. 0336 


Bound 


0.0336 


Bound 


34 


36 


1650 


Automatic refrigerators 


Gross kilo 


0.57 


0. 57 


Round 


0.67 
3. 36 


Boimd 
Bound 

TifinnH 


191 


279 
428 
63 
136 
614 


1698 


Razor blades 


Kilo 


3.36 


3. 36 


RntTnH 


114 
42 


1726 


Wrenches, fixed 


Kilo -. 


Free 


Free 


DULUJU 

Tlr»nTi(i 


Free 


1738 


Oak lumber, unplaned.-- 


Sq. meter 

Sq. meter 


0. 4704 


0. 428 


9% 
15% 


0.358 


XXJUilU 

24% 
37% 


286 
660 


1760 


Spruce and Douglas fir lumber, un- 


0. 1512 


0.129 


0.096 




planed (includes hemlock). 


















1752 


Pitch or tea pine lumber, unplaned 


Sq. meter 


0.1728 


0.147 


16% 


0.109 


37% 


2,343 


1,489 


1754 


White pine lumber, unplaned (includes 
sugar and ponderosa pine and red- 
wood). 


Sq meter 


0.216 


0.216 


Bound 


0.218 


Bound 


173 


88 


1772 


Spruce and Douglas fir plywood (up to 
6 mm. in thickness). 


Gross kilo 


0.042 


042 


Bound 


0.042 


Bound 


n. a. 


n. a. 


1773 


Spruce and Douglas fir plywood (over 
6 and up to 12 mm. in thickness). 


Gross kilo- . 


0. 0378 


0.0378 


Bound 


0. 0378 


Bound 


n. a. 


n. a. 


1774 


Spruce and Douglas fir plywood (over 
12 mm. in thickness). 


Gross kilo 


0. 0336 


0.0336 


Bound 


0. 0336 


Bound 


n. a. 


n. a. 


1799 


Machines and spare parts in general, 
of less than 100 net kilos (except 
those mentioned below). 


Gross kilo 


2016 


0.166 


18% 


0. 130 


36% 


n. a. 


n. a. 




Machines and spare parts in general, 


Gross kilo 


2016 


0. 2016 


Bound 


0. 2010 


Bound 


n. a. 


n. a. 




of less than 100 net kilos: hand-drill 




















presses, bulfer or emery-wheel 




















mounts, grindstone-wheel and tool- 




















sharpener mounts, small milling 




















machines, tin crimpers and cutters. 




















metal shears and punchers, hand- 




















operated metal-saw mounts, stamp- 




















ing presses, automatic saw sharpen- 




















ers, motor drillers, vises, electric meat 




















choppers,coaeegrinders,lense gauges. 




















lense grinders, lense drills, lense pol- 




















ishers, and certain machines for the 




















graphic arts and shoe-manufacturing 




















industries. 


















1821 


Tyiwwriters- 


Each 


12.33 

42% 
4.80 
160.00 
53.76 


12.32 

42% 
4.80 
160.00 
63.76 


Bound 
Bound 


12.32 

42% 
4.80 
160.00 
S3. TO 


Bound 
Bound 


353 
10 


568 


1821-a 


Typewriterparts 


D. V. 


11 


1828 


Sowers on wheels 


Each... 


Bound 
Bound 
Bound 


Bound 
Bound 
Bound 


222 

1,832 

455 


130 


1830 


Tractors, all types 


Each 


1,461 


1831 


Adding, calculating, and accounting 


Each 


535 




machines, cash registers, and dicta- 




















phones. • 


















1833 


Mowing machines, harvesters, reapers. 




















and binders. 
J^helling or husking machines _.- 


D. V 


10% 


10% 


Bound 


10% 


Bound 


3,091 


1,637 


1834 






1835 


Threshing machines. 


















1889 


Windmills 


KUo.. 

Kilo 


O0432 
0.252 


0.0432 
0.252 


Bound 
Bound 


0.0432 
252 


Bound 
Bound 


426 
116 


129 


2005 


Oil burners 


156 



• Dictaphones will be classified under item 1831 on ratification of agreement by -Argentine Congress. 



32 



DEPARTMENT OF STATE BULLETIN: OCTOBER 18, 1941, SUPPLEMENT 



TABLE A— Continued 
Itemized List of Tariff Concessions Obtained From Argentina (Schedule I) — Continued 



Argentine 

tarifl 

item 

number 



Description of commodity (abbreviated) 



Unit 



Pre-agree- 
ment duty 



Agreement duties and extent of concessions 



Stage I 



Duty 



Reduc- 
tion 



Stage II 



Duty 



Reduc- 
tion 



U. 8. exports to 

Argentina 

(in thousands of 

dollars) 



1939 



2010 
2016 
2021 
2110 
2198 
2199 
2200 
2203 
2233 
2236 

2237 

2238 

2258 
2259 



2285 
2292 



2352 
2366 



3S29 

3914 
3914 
3914 
3934 
4275 
4360 
4366 
4769 



4819 

4820 



Harrows.-- 

Plow shares 

Plow parts 

Refractory earth in block 

Radio parts, brass 

Radio parts, porcelain 

Radio parts, composition 

Radio parts, iron 

Loudspealiers.metal 

Radio receivers, amplifiers, or com- 
binations, up to 4 tubes. 
Radio receivers, amplifiers, or com- 
binations, from 5 to 7 tubes. 
Radio receivers, amplifiers, or com- 
binations, 8 or more tubes. 

Ordinary radio tubes- 

Radio-amplifying tubes - 



Note: Under tarifl item 2268 will 
be classified tubes of no more than 5 
watts usable output per tube or 19 
watts for 2 tubes mounted symmet- 
rically and when operated in ac- 
cordance with their respective speci- 
fications. 

Wind-driven electric-power generating 
devices. 

Vulcanized fiber, sheets, rods, and tubes 

Fluorescent-type electric-light hulhs, 
and fittings for ceiling, wall, table, 
desk, bed. and floor lamps. 

Small electric motors, up to H horse- 
power. 

Portable electric and pneumatic tools- . 

Storage-battery cases, com posit ion 

Construction or insulating board, of 
wood, paper, pulp, straw, or other 
vegetable materials, including wall- 
board and fiber board. 

Kraft liner board, unbleached sulphate 
base. 

Oiled copying paper 

Blotting paper 

Sanitary paper 

Fountain pens 

Tm-pentine.- - 

Sulphur in lumps 

Varnishes, nitrocellulose base, etc 

Enamels, cellulose, etc - 



Note: When the products pro- 
vided for in item 4769 are imported 
in containers of more than 50 kilos 
net, they will be accorded a 20-per- 
cent reduction in their valuation or 
duty. 



Light rosin-. 
Dark rosin-. 



Each 

Kilo 


1.28 
0.048 


Kilo 


0.024 


Gross kilo 

Kilo .. - 


0.0045 
1.05 


Kilo ---- 


0.627 


Kilo 


0.714 


Kilo— 

KUo 


0.42 
0.714 


Kilo 


1.26 


Kilo 


2.10 


Kilo 


2.94 


Each 


0.336 


Each 


1.68 



KUo- 



Kilo- 

Gross kilo- 



Each., 



Kilo-. 
Kilo- 
KUo- 



KUo- 



KUo- 

KUo 

KUo 

Dozen 

KUo 

Gross kUo. 

Kilo 

Kilo 



KUo 

Gross kUo.. 



0.80M 
0. 6376 



3.36 

0.84 
0. 168 
0. 04032 



0. 08064 

0.2016 
0.2016 
0.2016 
6.72 
0. 1344 
0.007 
0. 4704 
0. 3696 



0.015 
0.012 



1.28 

0,048 

0.024 

0.0045 

1.05 

0.627 

0.714 

0.42 

0.714 

1.26 

2.10 

2.66 

0.336 
1.26 



0.645 
0. 5376 



3.36 

0.63 
0. 147 
0.032 



0.040 

0.2016 
0. 2016 
0. 2016 
6.72 
0.118 
0.007 
0. 4704 
0. 3696 



0.01 
0.01 



Bound 
Bound 
Bound 
Bound 
Bound 
Bound 
Bound 
Bound 
Bound 
Boiind 

Bound 

10% 

Bound 
26% 



20% 
Bound 



Bound 

25% 
12% 
21% 



60% 

Bound 
Bound 
Bound 
Bound 
12% 
Bound 
Bound 
Bound 



33% 
17% 



1.28 

0.W8 

0.024 

0.0045 

1.05 

0.627 

0.714 

0.42 

0.714 

1.26 

2.10 



0.336 
0.84 



0.168 



0.484 
0.430 



3.36 

0.42 
0. 126 
0.020 



0.040 

0. 2016 
0.2016 
0.154 
6.72 
0.102 
0.007 
0. 4704 
0. 3696 



0,008 
0.008 



Bound 
Bound 
Bound 
Bound 
Bound 
Bound 
Bound 
Bound 
Bound 
Bound 

Bound 

2«% 

Bound 
50% 



40% 
20% 



Bound 

60% 
25% 
60% 



50% 

Bound 

Bound 

24% 

Bound 

24% 
Bound 
Bound 
Bound 



47% 
33% 



184 
371 
124 



316 



17 
n. a. 



60 

64 

/24 

66 



n. a. 
55 
109 
37 
95 
613 
221 
68 (est.) 



74 
259 
155 



195 



29 
n. a. 



110 

90 

/17 

80 



166 

n. a. 
64 
48 
43 
63 
123 
190 
45 (est.) 



266 



' U, S, exports of hard-rubber battery boxes, including composition and part rubber. 



TEADE5 AGREEMENT WITH ARGENTrNA : ANALYSIS 



33 



TABLE A— Continued 
Itemized List of Tariff Concessions Obtained From Argentina (Schedule I) — Continued 





Description of commodity (abbreviated) 


Unit 


Pre-agrec- 
ment duty 


Agreement duties and extent of concessions 


U. S. exports to 
Argentina 


Argentine 
tarifT 


Stage I 


Stage II 


(in thousands of 
dollars) 


number 


Duty 


Reduc- 
tion 


Duty 


Reduc- 
tion 


1939 


1940 


6160 


(a) Motion-picture film, exposed, posi- 
tives. 

(b) Motion-picture film, exposed, nega- 
tives. 

Cc) Motion-picture film, unexposed 

Photographic dry plates (6 x 8 cm) 

(9 X 12 cm) 


Kilo. — 

Kilo ... - 


15.00 

15.00 

2.016 
0. 1344 
0.336 
0.4368 

0. 46024 
0.4704 
0.7728 

1. 0752 
1.512 
1.9488 
2.352 
2.7888 
6.048 
8.736 


15.00 

15.00 

1.344 
0.1344 
0.336 
0. 4368 

0. 45024 
0.4704 
0.7728 

1. 0752 
1.612 
1. 9488 
2.352 
2.7888 
6.048 
8.736 


Bound 

Bound 

33% 
Bound 
Bound 
Bound 
Bound 
Bound 
Bound 
Bound 
Bound 
Bound 
Bound 
Bound 
Bound 
Bound 


15.00 

10.00 

1.344 
0. 1344 
0. 336 
0.4368 
0. 45024 

0. 4704 
0.7728 

1. 0752 

1 512 
1.9488 
2.352 

2 7888 
6.048 
8.736 


Bound 

33% 
33% 

Bound 


265 
1 

70 

214 


280 
0.4 




Kilo .- . 


140 


5255 
6256 


Dozen 

Dozen 
















Dozen 

Dozen 




5259 


— (13 X 18 cm) -._ 






— (16 X 21 cm) - 




5261 


— (18 X 24 cm) 


Dozen 


281 




— (21 X 27 cm) - 






6263 


(24 X 30 em) 


Dozen 






(27x33 cm) 




5'*65 


(30 X 40 cm) - - 


Dozen 




5266 


— (40 X 50 cm) --. 


Dozen 






—(50x60 cm) - 






Note 1. Dry plates of other 
sizes will bo dutiable at the rate 
applicable to the nearest size pro- 
vided in the above items. 








Note 2. Photographic films will 
be dutiable at one half the duty 
applicable to plates of corresponding 
sizes. 




















Earthenware (glazed pottery) bathtubs, 
lavatories, bidets, urinals, and other 
sanitary ware for bathrooms, white 
or colored. 














33 


174 


2619-22, 
incl., 
2643. 
















2C52, 
2669. 
2670. 
2678. 
2702, 
2770, 
2771, 
2S24, 
2825. 
2834^2, 
incl.. 
2849 


Note: The existing classification 
of earthenware in accordance with 
the resolution of the Ministry of 
Finance of August 9, 1938 (R. F. 
no. 146) shall be continued during 
the effective period of the agree- 
ment, of which this schedule is an 
integral part. 

Summary c 
Reductions in duty: 














7,997 
3,914 
7,416 


8,346 


















6,223 


















6,786 


































19,327 
13, 809 


19,354 


















12. 762 


































33, 136 


32,106 





















• Includes estimates based in part on Argentine data in regard to products for which no United States export data are available or for which United 
States export data are not reported separately. 



34 



DEPARTMENT OF STATE BTJLLETIN : OCTOBER 18, 1941, SUPPLEMENT 



TABLE B 
Itemized List of Tariff Concessions Made to Argentina (Schedule II) 

Except as otherwise noted import data do not include imports free of duty under special provisions of the Tarifl Act of 1930, or imports from Cuba 
subject to preferential reductions in duty; n. a. =statistics not available. 





Item 


Rate of duty 


Ad valorem 
equivalent on 

basis of im- 
ports in 1939 


United States imports for consumption 
(in thousands of dollars) 


Para- 
graph 
number 




From Argentina 


From all countries 


In Tariff 

Act of 

1930 


Before agree- 
ment 


Under agree- 
ment 


Before 
agree- 
ment 
(per- 
cent) 


Under 
agree- 
ment 
(per- 
cent) 


1938 


1939 


1940 


1938 


1939 


1940 


19 

38 

62 

232(a) 
409 

701 
(and sec. 


A. Reductions in Ddtt 

Casein or laotarene and mix- 
tures of which casein or lac- 
tarene is the component 
material of chief value, not 
specially provided for. 

Extracts, dyeing or tanning, 
not containing alcohol: Que- 
bracho. 

Neatsfoot oil and animal oils 
known as neatsfoot stock. 

Onyx, in block, rough or 

squared only. 
Osier or willow, including chip 

of and split willow prepared 

for basket-makers' use. 
Tallow: 

Inedible 


SHtiperlb 

15%adval 

20%"ad val. plus 
3(!'per lb. im- 
port tax. 

65<per cu. ft 

36% ad val 

i4i per lb. plus 
3t per lb. im- 
port tax. 

do 


2Htpet\b 

7}i%ad val 

10% ad val. plus 
im per lb. 
Import tax. 

32}«percu. ft.. 

17H%adval...- 

Ht per lb. plus 

IH* per lb. im- 
port tax. 

do 


98 

16 

n. a. 

11.2 
35 

120 


49 

7.6 

n. a. 

6.6 
17.5 

60 


12 

2,004 
n. a. 

66 

7 

3 


763 

4,086 

n. a. 

55 
6 

6 


1,111 

2,894 

n. a. 

57 
4 

18 


28 

2,735 

n. a. 

•100 
7 

•"60 

3 

••53 


886 

6,082 

n. a. 

• 102 
6 

44 
44 


1,243 

3,932 

n. a. 

•115 
4 

43 


2491 (a) 
Internal 
Revenue 

Code) 


Edible 


(') 




Total tallow 










3 


6 


18 


43 


701 


Oleo oil and oleo stearin: 
Oleo oil--- 


10 per lb. plus 
3^ per lb. im- 
port tax. 

.- ..do 


H* per lb. plus 

IJ^jwr lb. im- 
port tax. 

. do 








2491 (c) 
Internal 
Revenue 

Code) 


Oleo stearin 


75 
39 


37 
19 


13 
13 

34 






16 
15 

213 


(») 
(») 

469 


(») 




Total oleo oil and oleo 
stearhi. 
Extract of meat. Including fluid- 


16* per lb. 
(bound In 
agreement 
with United 
Kinpdom ef- 
fective Jan. 1, 
1939). 


7H*perlb 






(») 


705 


81 


52 


237 



See footnotes at end of table. 



TRADE AGREEMENT WITH ARGENTINA : ANALYSIS 



35 



TABLE B— Continued 
Itemized List of Tariff Concessions Made to Argentina (Schedule II)— Continued 









Ad valorem 

equivalent on 

basis of im- 


United States imports for consumption 






Rate of duty 


(in thousands of dollars) 


Para- 
graph 
numDer 










ports in 1939 


From Argentina 


From all countries 


Item 










in Tariff 






















Act of 








Before 


Under 














1930 




Before agree- 
ment 


Under agree- 
ment 


agree- 
ment 
(per- 
cent) 


agree- 
ment 
(per- 
cent) 


1938 


1939 


1940 


1938 


1939 


11940 




A. REDDCTIONa IN DUTY— Cont. 






















708 


Meats, prepared orpreserved, not 
specially provided for (except 
meat pastes otlier than liver 
pastes, packed in airtight 
containers weighing with 
their contents not more than 
3 ounces each): 
























Canned beef, including 


Wperlb. butnot 


30 per lb. but not 


'60 


'30 


3,741 


3,650 


"3,662 


8,399 


8,573 


■•a, 908 




corned beef. 


less than 20% 
ad val. 


lessjhan_20% 
adyal. 




















Beef and veal, pickled or 
cured. 


do 


do 


'84 


'42 


6 


4 


(») 


110 


154 


' 109 


























Canned meats, not else- 


6(i per lb. but 


H per lb. but 


25 


20 


dii 


1 


(') 


■'■'52 


47 


19 




where provided for, and 


not less than 


not less than 




















prepared and preserved 


20% ad val. 


20% ad val. 




















meats, not specially pro- 
























vided for (including liver 
























paste). 
























Total prepared or pre- 










■'■'3,-iS 


3,655 


•'3,662 


■'■'8,570 


8,774 


■'7,036 




served meats. 






















742 


Grapes (including hothouse 
grapes) in bulk, crates.barrels, 
or other packages, if entered 
for consumption during the 
period from Feb. 15 to June 
30, inclusive, in any year.' 


25^ per cu. ft. of 
such bulk or 
the capacity of 
the packages, 
according as 
imported 
(bound as to 
hothouse 
grapes in Bel- 
gian agree- 
ment effective 
May 1, 1935). 


12J/2< per cu. ft. 
of such bulk or 
the capacity of 
the packages, 
according as 
imported. 


18 


9 


396 


456 


373 


512 


522 


491 


748 


Plums, prunes, and prunelles, 
green or ripe, not in brine, if 
entered for consumption dur- 
ing the period from Feb. 1 to 
May 31, inclusive, in any 
year./ 


HlSperlb 


Mfiperlb-. 


13 


e 




20 


13 


25 


40 


46 


781 


Jellies, Jams, marmalades, and 
fruit butters: Quince. 


20% ad val. (re- 
duced from 
35% ad val. in 
agreement 
with United 
Kingdom ef- 
fective Jan. 1, 
1939). » 


17}^% ad val. -„ 


n. a. 


n. a. 


n. a. 


n. a. 


n. a. 


n. a. 


n. a. 


n. a. 



See footnotes at end of table. 



36 



DEPARTMENT OF STATE BULLETIN: OCTOBER 18, 1941, SUPPLEMENT 



TABLE B— Continued 
Itemized List of Tabiff Concessions Made to Akgentina (Scheduij: II) — Continued 



Para- 
graph 
number 
in Tariff 
Act of 
1930 



762 



764 



774 



775 
779 



1101 (a) 



Item 



A. Reductions in Duty — Cont. 
Flaxseed 



Provided, That on and after 
the effective date of this 
agreement, and until the 
thirtieth day following a 
proclamation by the Presi- 
dent of the United States of 
America, after consultation 
with the Argentine Govern- 
ment, that the existing ab- 
normal situation in respect 
of the trade in flaxseed has 
terminated, the rate of duty 
under this item shall be 



Canary seed. 



Asparagus, in its natural state, 
if entered for consumption 
during the period from Nov. 
16 to the following Feb. 15, 
Inclusive.* 

Corned-beef hash ' 

Broomcorn 



Wools: Donskoi, Smyrna, Cor- 
dova, Valparaiso, Ecuadoran, 
Syrian, Aleppo, Georgian, 
Turkestan, Arabian, Bagdad, 
Persian, Sistan, East Indian, 
Thibetan, Chinese, Manchu- 
rian, Mongolian, Egyptian, 
Sudan, Cyprus, Sardinian, 
Pyrenean, Oporto, Iceland, 
Scotch Blackface, Black 
Spanish, Kerry, Haslock, and 
Welsh Mountain: similar 
wools without merino or Eng- 
lish blood: all other wools of 
whatever blood or origin not 
finer than 40's; all the fore- 
going— 
In the grease or washed 



Scoured. 



On the skin.. 



Sorted, or matchings, if not 
scoured. 
See footnotes at end of table. 



Rate of duty 



Before agree- 
ment 



65< per bu. of 56 
lbs. 



Ht per lb. (re- 
duced from 1^ 
per lb, in 
agreement 
with Turkey, 
eflective May 
5, 1939). 

50%ad val 



35% ad val 

$20 per ton of 
2,000 lbs. 



2it per lb. of 

clean content. 
27(i per lb. of 

clean content. 
22t per lb. of 

clean content. 
25< per lb. of 

clean content. 



XJnc'er agree- 
ment 



50< per bu. of 56 
lbs. 



32H< per bu. of 

66 lbs. 
;^ per lb 



25% ad val. 



20% ad val 

$10 per ton of 
2,000 lbs. 



13< per lb. of 

clean content. 
IH per lb. of 

clean content. 
Hi per lb. of 

clean content. 
14^ per lb. of 

clean content. 



Ad valorem 
equivalent on 
basis of im- 
ports in 1939 



Before 
agree- 
ment 
(per- 
cent) 



43 



Under 
agree- 
ment 
(per- 
cent) 



United States imports for consumption 
(in thousands of dollars) 



From Argentina 



1938 



1939 



17, 542 



153 



(>) 



(') 



2,434 



1940 



11,735 



132 



3,808 



From all coimtries 



19, 872 



n. a. 

5 



3,171 



18, 424 



1940 



167 



4,99S 



TRADE AGREEMENT WITH ARGENTINA : ANALYSIS 



37 



TABLE B— Continued 
Itemized List of Tabiff Concessions Made to Akgentina (Schedui^ II) — Continued 







Rateo 


fduty 


Ad valorem 
equivalent on 

basis of im- 
ports in 1939 


United States imports for consumption 
(in thousands of dollars) 


Para- 
graph 
number 


From Argentina 


From all countries 


Item 












In Tariff 
Act of 






Before 


Under 














1930 




Before agree- 
ment 


Under agree- 
ment 


agree- 
ment 
(per- 
cent) 


agree- 
ment 
(per- 
cent) 


193S 


1939 


1940 


1938 


1939 


mo 




A. Reductions IN Duty— Cont. 




















1102 (a) 


Wools, not specially provided 
for, not finer tlian 44's: 
In the grease or washed 

Scoured 


29* per lb. of 

clean content. 

32^ per lb. of 


nt per lb. of 

clean content. 

20* per lb. of 




















On the skin 


clean content. 


clean content. 
I5(S per lb. of 


90 


63 


67 


162 


524 


688 


1,495 


1,509 






clean content. 


clean content. 




















Sorted, or matchings, it not 


30i per lb. of 


m per lb. of 




















scoured. 


clean content. 


clean content. 


















1530(a) 


Hides and skins of cattle of the 
bovine species (except hides 
and skins of the India water 
buffalo imported to be used 
in the manufacture of rawhide 
articles), raw or uncured, or 
dried, salted, or pickled; 
























Cattle hides 


lD%ad val 


6% ad val 


10 


5 


2,443 


7,492 


10, 356 


5,180 


12,113 


16,915 




Pftlfand kip skins 


do 


do 


10 


6 


41 


304 


242 


4,043 


4,613 


2,508 




Buffalo hides, not specially 
provided for. 

Total bovine hides and 


. do 


.. do 


10 


5 








34 


120 


160 






















2,484 


7,796 


10, 597 


9,257 


16, 846 


19, 573 




skins. 
Footwear known as alpargatas, 


35% ad val 


17H%advaI.... 


















1530(e) 


35 


nn 


n. a. 


n. a. 


n. a. 


n. a. 


n. a. 


n. a. 




the uppers of which are com- 
























posed wholly or in chief value 
























of cotton or other vegetable 
























fiber, and with soles com- 
























posed wholly or in chief value 
























of vegetable fiber other than 
























cotton. 






















1531 


Bags, baskets, belts, satchels, 
cardcases, pocketbooks, jewel 
boxes, portfolios, and other 
boxes and cases, not jewelry, 
wholly or in chief value of rep- 
tile leather, and manufactures 
of reptile leather or of which 
reptile leather is the compo- 
nent material of chief value, 
not specially provided for. 


do" 


do 


35 


yiYi 


n. a. 


n. a. 


n. a. 


n. a. 


n. a. 


n. a. 




Any of the foregoing perma- 


50% ad val.-.— 


25% ad val 


50 


25 


n. a. 


n. a. 


n. a. 


n. a. 


n. a. 


n. a. 




nently fitted and furnished 
























with traveling, bottle, drink- 
























ing, dining or luncheon, sew- 
























ing, manicure, or similar sets. 






















1658 


Dog food, manufactm-ed, unfit 
for human consumption, not 
specially provided for. 


20% ad val 


10% ad val 


20 


10 


n. a. 


n. a. 


n. a. 


n. a. 


n. a. 


n. a. 








28,989 


37,220 


35, 072 


45, 653 


57,606 


63,513 

















See footnotes at end of table. 



38 



DEPARTMENT OF STATE BULLETIN: OCTOBER 18, 1941, SUPPLEMENT 

TABLE B— Continued 
iTEMizBa) List of Tabiff Concessions Made to Abgentina (Schedui^ II) — Continued 





Item 


Rate of duty 


Ad valorem 
equivalent on 

basis of im- 
ports in 1939 


United States imports for consumption 
(in thousands of dollars) 


Para- 
graph 
number 




From Argentina 


From all countries 


inTarifl 
Act of 






Before 


Under 












1930 




Before agree- 
ment 


Under agree- 
ment 


agree- 
ment 
(per- 
cent) 


agree- 
ment 
(per- 
cent) 


1938 


1939 


1940 


1938 


1939 


1940 




B. BiNDiNos OP Present DcTT 






















35 


Mat*, natural and uncom- 
pounded, but advanced in 
value or condition by shred- 
ding, grinding, chipping, 
crushing, or any other process 
or treatment whatever be- 
yond that essential to proper 
packing and the prevention of 
decay or deterioration pend- 
ing manufacture, not contain- 
ing alcohol. 


5% ad val. (re- 
duced from 
10% ad val. in 
the Brazilian 
agreement, ef- 
fective Jan. 1, 
1936). 


5% ad val 


5 


5 


6 


3 


2 


8 


7 


6 


42 


Glycerin, crude 


Moi per lb. (re- 


«o(!perlb 


10 


10 


125 


171 


173 


'1,028 


'729 


'615 






duced from H 
























per lb. in 
























French agree- 
























ment, effec- 
























tive June 15, 
























1936).' 




















42 


Glycerin, refined 


IMsfperlb. (re- 


IMst perib 


17 


17 


10 


26 


23 


219 


29 


23 






duced from 
























IH^ per Ih. ef- 
























fective June 
























15, 1936).' 




















208(a) 


Mica, unmanufactured, valued 
at not over 15 cents per pound. 


4^ per lb. 


4*perlb 


34 


34 


2 


10 


15 


13 


28 


47 


208(h) 


Mica, ground or pulverized 


15% ad val. (re- 
duced from 


15% ad val 


15 


15 








3 


5 


4 






















20% ad val. in 
























second Cana- 
























dian agree- 
























ment, effec- 
























tive Jan. 1, 
























1939). 




















749 


Pears, green, ripe, or in brine... 


H«perlb__ 


H* per lb 


16 


16 


68 


130 


303 


73 


130 


305 


763 


Grass seeds and other forage 
crop seeds: .\lfalfa. 

Total bindings of present 


it per lb. (re- 
duced from St 
per lb. in first 
Canadian 
agreement, ef- 
fective Jan. 1, 
1936; bound in 
second Cana- 
dian agree- 
ment, effec- 
tive Jan. 1, 
1939). 


4^ per lb 


26 


26 


62 


77 


38 


659 


509 


407 








273 


417 


554 


2,003 


1,437 


1,407 




duty. 









































See footnotes at end of table. 



TRADE AGREEMENT WITH ARGENTINA: ANALYSIS 

TABLE B— Continued 
Itemized List of Tariff Concessions Made to Akqentina (Scheduij: II) — Continued 



39 



Para- 
graph 
number 
in Tariff 
Act of 
1930 



1101(b) 



1602 



1625 
1627 



1670 



Item 



C. Binding on Free List 

Wools: Donskol, Smyrna, Cor- 
dova, Valparaiso, Ecuadoran, 
Syrian, Aleppo, Georgian, 
Turkestan, Arabian, Bagdad, 
Persian, Sistan, East Indian, 
Thibetan, Chinese, Manchu- 
rian, Mongolian, Egyptian, 
Sudan, Cyprus, Sardinian, 
Pyrenean, Oporto, Iceland, 
Scotch Blackface, Black 
Spanish, Kerry, Haslock, 
and Welsh Mountain; similar 
wools without merino or 
English blood; all other wools 
of whatever blood or origin 
not finer than 40's: 
Any of the foregoing wools 
entered, or withdrawn 
from warehouse, under 
bond and used in the 
manufacture of press 
cloth, camel's hair belt- 
ing, knit or felt boots, 
heavy fulled lumbermen's 
socks, rugs, carpets, or 
any other floor coverings. 
Mats, natural and uncom- 
poimded and in a crude state, 
not advanced in value or con- 
dition by shredding, grinding, 
chipping, crushing, or any 
other process or treatment 
whatever beyond that essen- 
tial to proper packing and the 
prevention of decay or deteri- 
oration pending manufacture, 
not containing alcohol. 
Blood, dried, not specially pro- 
vided for. 
Bones, crude, steamed, or 
ground: bone dust, bone meal, 
and bone ash; and animal 
carbon suitable only for fer- 
tilizing purposes. 
Dyeing or tanning materials: 
Quebracho wood, whether 
crude or advanced in value or 
condition by shredding, 
grinding, chipping, crushing, 
or any similar process, and not 
containing alcohol. 



Rate of duty 



Before agree- 
ment 



Free, subject to 
the provisions 
of paragraph 
1101 of the 
Tariff Act of 
19 3 0, as 
amended. 



Free (bound in 
Brazilian 
agreement, ef- 
fective Jan. 1, 
1936). 



Free- 
Free- 



Free- 



Under agree- 
ment 



Bound free, 
subject to 
the provisions 
of paragraph 
1101 of the 
Tariff Act of 
19 3 0, as 
amended. 



Bound free. 



Bound free- 
Bound free- 



Bound free- 



Ad valorem 
equivalent on 
basis of im- 
ports in 1939 



Before 

agree- 
ment 
(per- 
cent) 



Under 

agree- 
ment 
(per- 
cent) 



United States imports for consumption 
(in thousands of dollars) 



From Argentina 



1938 



3,977 



124 

242 



7,682 



392 
697 



538 



1940 



14,320 



258 
912 



From all countries 



1938 



266 
839 



485 



25,686 



578 
1,495 



538 



1940 



31,089 



429 
1,481 



40 



DEPARTMENT OF STATE BULLETIN: OCTOBER 18, 1941, SUPPLEMENT 



TABLE B— Continued 
Itemized List of Takifp Concessions Made to Argentina (Schedule II) — Continued 





Item 


Rate of duty 


Ad valorem 
equivalent on 

basis of im- 
ports in 1939 


United States imports for consumption 
(in thousands of dollars) 


Para- 
graph 
number 




From Argentina 


From all countries 


in Tariff 
Act of 






Before 


Under 














1930 




Before agree- 
ment 


Under agree- 
ment 


agree- 
ment 
(per- 
cent) 


agree- 
ment 
(per- 
cent) 


1938 


1939 


1940 


1938 


1939 


1940 




C. Binding on Free List— 
























Continued 






















1681 


Furs and fur skins, not specially 
provided for. undressed: 
























Guanaquito _ _. 


Free 


Bound free 






212 


161 


217 


220 


151 


220 














82 

184 

2 

218 


163 

161 

7 

243 


304 

377 

14 

663 


127 
238 
48 
789 


206 

227 

74 

1,494 


398 




Wildcat 


Free 


Bound free . . 






463 




Ocelot 










178 




Hare 


Free (boimd in 


Rniind frpft 






1,463 






Turkish agree- 




















ment,eflective 
























May 6, 1939). 






















Otter... 


Free (bound in 


Rniind free 






S8 


18 


19 


210 


149 


218 






Canadian 
























agreement, ef- 
























fective Jan. 1, 
























1939). 






















Lamb and sheep (except 


Free (bound in 


Bound free 






n. a. 


73 


219 


n. a. 


1,762 


3.340 




caracul and Persian 


United King- 






















lamb). 


dom agree- 
ment, effec- 
tive Jan. 1, 
1939). 






















Seal.... 


Free. 








n. a. 
137 


n. a. 
116 


D. a. 
179 


n. a. 
3,105 


n. a. 
3,313 






Foi (other than silver or 


Free (bound in 


Bound free 






4,800 




blaclcfox). 


United King- 
dom agree- 
ment, effec- 
tive Jan. 1, 






















Total 


1939). 


























893 


932 


1,992 


4,737 


7,376 


11,070 




Tankage of a grade used chiefly 
lor fertilizers, or chiefly as an 


Free (bound in 
United King- 


Bound free 






1685 






62 


199 


128 


290 


442 


375 














ingredient in the manufacture 


dom agreement 






















of fertilizers. 


eflectiveJan. 1. 
1939. 




















1688 


Hair of horse and cattle (in- 
cluding calf), cleaned or un- 
cleaned, drawn or undrawn, 
but unmanufactured, not 
specially provided for: 
























Body hair . 


Free (bojind in 
Canadian 








1 


17 


50 


255 


278 


317 


















agreement, ef- 
























fective Jan. 1, 
























1939). 






















Other: 
























Horse, mane and tail hair. 
























including switches: 
























Raw, unmanufactured.. 
Drawn, unmanufac- 
tured. 


Free. ... 








93 
152 


91 
308 


183 
646 


304 
804 


162 
844 


257 




Free 








1,572 
















Cattle, ox, and calf tail 
hair, including 


Free... 


Bound free 






9 


11 


142 


38 


49 


359 
















switches, unmanu- 
















































Total hair 










255 


427 


1,021 


1.401 


1,323 


2,605 










- 





TRADE AGREEMENT WITH ARGENTINA : ANALYSIS 



41 



TABLE B— Continued 
Itemized List op TAitiFF Concessions Made to Akgentina (Schedule II) — Continued 





Item 


Rate of duty 


Ad valorem 
equivalent on 

basis of im- 
ports in 1939 


United States imports for consumption 
(in thousands of dollars) 


Para- 
graph 
number 




From Argentina 


From all countries 


in TariH 

Act of 

1930 


Before agree- 
ment 


Under agree- 
ment 


Before 
agree- 
ment 
(per- 
cent) 


Under 
agree- 
ment 
(per- 
cent) 


1938 


1939 


1940 


1938 


1939 


1910 


1693 


C. BiNDiNO ON Free List— 
Continued 

Hoofs, unmanufactured . . 


Free 


Bound free 






6 

483 
142 


3 

476 
272 


3 

848 
247 


52 

6, .'525 

594 
4 


6,201 

792 
4 




1694 


Horns, and parts of, including 
horn strips and tips, unmanu- 
factured. 
Sausage casings, weasands, in- 
testines, bladders, tendons, 
and integuments, not special- 
ly provided for; 
Sheep, lamb, and goat sau- 
sage casings. 

Sausage casings, not spe- 
cially provided for (in- 
cluding weasands, blad- 
ders, and intestines). 
Integuments, tendons, and 
intestines, not sausage 
casings. 
Total sausage casings, 
etc. 
Skins of all kinds, raw, and 
hides, not specially provided 
for: 
Horse, colt, ass, and mule: 

Dry and dry salted 

Wet salted 


Free. 








46 


1755 


Free (bound in 
Turkish agree- 
ment, eflec- 
tive May 5, 
1939). 

Free. .. . - 








7,077 
854 




Round free 








Free 


Bound free.. . 






12 




Free 


Bound free 




















625 


748 


1,095 


7,123 


6,997 


7,943 


1765 






18 

7 

n. a. 

1,092 

798 


156 

215 

n. a. 

1,827 

1,011 


173 
280 

n. a. 

2,371 
802 


23 

289 

n. a. 

5,304 

12,040 


172 

1,384 

n. a. 

9.908 

15, 395 


187 




Free. 












Carpincho 


Free 












Rhppp ^nd Iftmh 


Free.- 


"Rnnnd frpi? 






9,486 
16,887 




Goat and kid :. 


Free 










Total skins. 
















1,915 


3,209 


3,626 


17, 656 


26 859 


9A AQA 




Tankage, unflt for human con- 
sumption. 

Total free list 


Free . 


Bound free 








1780 






505 


1,260 


838 


935 


2,535 


1,809 




















9,079 


16. 087 


24, 322 


46, 344 


73.883 


83, 370 




Grand total schedule II . 
















38, 341 


53,724 


59, 948 


94,000 


132, 926 


138, 290 








1 





" Imports from Argentina and Mexico only. "" Includes imports valued at $21,772 entered at customs district of Puerto Rico, exempt from tax. 
' Less than $500. ' Does not include duties on imports into the Virgin Islands of the United States. 
■I Does not include imports into the Virgin Islands of the United States. 

<!'* Includes negligible imports of meat pastes (except liver pastes) prepared or preserved, packed in airtight containers weighing each with con- 
tainer not more than 3 ounces, not separately classified prior to 1939. 

• Statistics represent calendar year, f Statistics are for calendar year and include plums, prunes, and prunelles in brine. 

• The duty on products (except orange marmalade) of Cuba was reduced from 28 to 14 percent ad valorem in the Cuban agreement, effective Sept. 
3, 1934. 

• Asparagus is not reported separately in import statistics. Data are for "fresh vegetables, not elsewhere specified", of which imports from Argen- 
tina are assumed to be asparagus. Data are for calendar year. 

• Not separately reported in Import statistics. Data represent "pastes, balls, puddings, hash, etc.", of which imports from Argentina consist chiefly 
of corned-beef hash. 

' Includes imports from Philippine Islands, entered free under special provisions of the act of 1930, amounting to $104,509 in 1938, $123,410 in 1939, 
and $111,406 in 1940. 

• Duty on product of Cuba reduced to Mo cent per pound in Cuban agreement, effective Sept. 3, 1934. 

' Rate on refined glycerin was reduced from 2 cents to 154 cents per pound in the Netherlands agreement, effective Feb. 1, 1936. By virtue of the 
reduction on crude glycerin in the French agreement, the rate of duty on refined glycerin was further reduced to IJis cents per pound. 
"■ Under the agreement with the United Kingdom, effective Jan. 1, 1939, the duties on some items under this paragraph were reduced. 



42 



DEPARTMENT OF STATE BULLETIN: OCTOBER 18, 1941, SUPPLEMENT 



TABLE C 
Itemized List of Tariff Concessions Made to Argentina (Schedule III) 

[n. a.=statistics not available] 









Ad valorem 
equivalent on 

basis of im- 
ports in 1939 


United States imports for consumption 






Rate of duty 


(in thousands of dollars) 


Para- 
graph 






From Argentina 


From all countries 


number 


Item 










in Tariff 


^ 


















Act of 








Before 


Under 














1930 




Before agree- 
ment 


Under agree- 
ment 


agree- 
ment 
(per- 
cent) 


agree- 
ment 
(per- 
cent) 


1938 


1939 


1940 


1938 


1939 


1940 




A. REDCCTIONa IN DUTT 






















5 


All medicinal preparations o( 
animal origin, n. s. p. t. 


25% ad val 


12H%adval.... 


25 


12H 





•15 


- 12 


371 


•688 


•75 


5 


Beryllium: 
























Oxide or carbonate, not spe- 


do 


do -_- 


25 


12J^ 


n. a. 


n. a. 


n. a. 


n. a. 


n. a. 


n. a. 




cially provided for 






















63 


Oils, vegetable: 
























Sunflower 


20% ad val. plus 


10% ad val. plus 
2Ht per lb. 










(') 


(») 




(») 






mt per lb. 






















import tax. 


import tax. 


















710 


Romano, Pecorino, Reggiano, 
Parmesano, P r o v o 1 o n i, 
Sbrinz, and Goya cheeses in 
their original loaves. 


7i per lb., but 
not less than 
35% ad val. 


H per lb., but 
not less than 
25% ad val. 


36 


26 


"206 


"299 


"785 


"5,397 


"5,635 


"4,105 


718 (a) 


Fish, prepared or preserved in 
any manner, when packed in 
oil or in oil and other sub- 
stances: 
Anchovies: 

Of a value not exceed- 
ing 9 cents per pound, 


44% ad val. (rate 
of duty in- 


22% ad val 








.... 




(») 


























including weight of 


creased from 






















the immediate con- 


30%ad val. by 






















tainer only. 


Presidential 
proclamation 
effective Jan. 
13, 1934). 






















Of a value exceeding 9 


30% ad val 


15% ad val 


30 


15 


(») 




3 


897 


878 


976 




cents per pound in- 
























cluding weight of the 
























immediate container 
























only. 






















718 (b) 


Fish, prepared or preserved in 
any manner, when packed in 
airtight containers weighing 
with their contents not more 
than 15 pounds each (except 
fish packed in oil or in oil and 
other substances) : 
























Anchovies 


25% ad v;il 


12;2%adval.... 


25 


mi 


2 


17 


31 


231 


212 


186 


725 


Macaroni, vermicelli, noodles. 






















and similar ahmentary pastes: 
























Containing eggs or egg prod- 
ucts. 


Zt per lb 


2* per lb 


21 


14 








1 


3 


1 






















Containing no eggs or egg 
products. 

Total macaroni, etc 


2tSperIb 


i;2<perlh 


21 


16 








107 


100 


75 
































108 


103 


76 














: 











See footnotes at end of table. 



TRADE AGREEMENT WITH ARGENTINA : ANALYSIS 

TABLE C— Continued 
Itemized List of Tariff Concessions Made to Argentina (Schedule III) —Continued 



43 







Rate of duty 


Ad valorem 
equivalent on 

basis of im- 
ports in 1939 


United States imports for consumption 
(in thousands of dollars) 


Para- 
graph 






From Argentina 


From all countries 


in Tariff 
Act ot 


Item 






Before 


Under 














1930 




Before agree- 
ment 


Under agree- 
ment 


agree- 
ment 
(per- 
cent) 


agree- 
ment 
(per- 
cent) 


1938 


1939 


1940 


1938 


1939 


1940 




A. Reductions in Duty— Cont. 






















772 


Tomatoes, prepared or pre- 
served in any manner. 


50% ad vaL . . . 


26% ad val . 


60 


25 








2,434 


2,222 


863 






















1519(a) 




25% ad val - 


12J^% ad val . 


25 


12H 








'260 


'78 


•226 


skins, not dyed: Goat and 






















kid, and hare. 






















1519(a) 


Plates, mats, linings, strips, 
and crosses of dressed goat or 


do 


. do 


25 


WA 








"962 


•'845 


M,341 
























kid skins, if not dyed. 






















1519(b) 


Plates, mats, linings, strips, 
and crosses of hare, lamb, and 


35% ad val 


nVi% ad val 


35 


17H 


1 






215 


189 


388 




















sheep furs (except caracul and 
























Persian lamb) if not dyed.- 
Total duty reductions 




























209 


331 


831 


10,876 


10,860 


8.236 




B. Bindings of Present Duty 






































'• 56 


'•56 






(') 


3. 2.30 


3,435 


» 3, 103 






(reduced from 
$5 per pf. gal. 
in French 
agreement, ef- 
fective June 
15, 1936). 




















802 


Cordials, liqueurs, kirschwas- 
ser, and ratafia. 


do... — 


do 


' »50 


'•50 




(') 


1 


1.341 


1.522 


» 1,254 


802 


Bitters of all kinds containing 
spirits. 


$2.60 per pf. gal. 
(reduced from 


do 


'•84 


' • 84 








29 


36 


M5 
























$5 per pf. gal. 
























in the United 
























Kingdom 
























agreement, ef- 
























fective Jan. I, 
























1939). 




















803 


Champagne and all other spar- 
kling wines. 


$3 per gal. (re- 
duced from $6 
per gal. in 
French agree- 


$3 per gal 


'67 


'67 


(') 


1 


25 


2,289 


2.507 


»2,065 






ment, effec- 






















tive June 15, 






















1936). 




















804 


Still wines produced from 
grapes (not including ver- 
muth) containing 14 per 
centum or less of absolute al- 
cohol by volume, in contain- 
ers holding each one gallon or 
less. 


75^ per gal. (re- 
duced from 
$1.25 per gal. 
in French 
agreement, ef- 
fective June 
I.\ 1936). 


75« per gal 


• 38 


• 38 


1 


2 


1 


1,921 


2,161 


1,439 


804 


Vermuth, in containers holding 


62}ii per gal. 


H'iyii per gal 


/45 


'45 






161 


1,897 


1.900 


"2,055 










each one gallon or less. 


(reduced from 
$1.25 per gal. 
in French 
agreement, 
eflective June 
15.1936). 





















See footnotes at end of table. 



44 



DEPARTMENT OF STATE BULLETIN: OCTOBER 18, 1941, SUPPLEMENT 

TABLE C— Continued 
Itemized List of Taeitf Concessions Made to Akgentina (ScHHn>DLE III) — Continued 





Item 


Rate of duty 


Ad valorem 
equivalent on 
basis of im- 
ports in 1939 


United States imports for consumption 
(in thousands of dollars) 


Para- 
graph 




From Argentina 


From all countries 


in Taria 

Act of 

1930 


Before agree- 
ment 


Under agree- 
ment 


Before 
agree- 
ment 
(per- 
cent) 


Under 
agree- 
ment 
(per- 
cent) 


1938 


1939 


1940 


1938 


1939 


1910 


1619 (a) 


B. BiNDDJGS or Present 
Duty— Continued 

Dressed furs and dressed fur 
skins, not dyed: 
Lamb and sheep (except 
caracuJ and Persian 
lamb). 

Total bindings of present 
duty. 

C. Bindings on Free List 

Argols, tartar, and wine lees, 
crude or partly refined, con- 
taining less than 90 per 
centum of potassium bitar- 
trate. 

Calcium tartrate, crude 

Total free list 


15% ad val. (re- 
duced from 
25% ad val. 
in the United 
Kingdom 
agreement, 
effective Jan. 
1, 1939). 


15% ad val 


15 


15 








7 


16 


9 
















1 


3 


188 


10.714 


11,677 


9,940 


1611 






51 
89 


12 
48 


392 
219 


2,472 
217 


1,217 
212 


2,087 


1611 


do 


do 






476 








140 


60 


611 


2,689 


1,429 


2,563 






















350 


394 


1,630 


24,278 


23, 856 


20, 739 




Grand total schedules II and 
III. 


















38,691 


54,118 


61,678 


118,278 


156, 782 


159, 029 



o Does not include imports of corpus luteum, urine concentrates, and uriue concentrate solution, of which imports from Argentina were valued at 
$2,658 in 1940, and from all sources at $6,473 in 1939 and $286,725 in 1940. 
6 Less than $500. 

*''> Includes Imports from Argentina of "other" cheese, 
e Includes dressed dog-fur skins. 
<* Includes plates, mats, etc., of dressed dog-fur skins. 

• Not separately reported in import statistics. Data represent plates, mats, linings, etc., of skins other than dog, goat, kid, and sauirrel. 
/ Does not include duties on imports into the Virgin Islands of the United States. 
" Includes imports dutiable at rate specified in Tariff Act of 1930. 
A Does not include imports into the Virgin Islands of the United States. 



U S. GOVERNMENT PRINTING OFFICE: 1941 



For sale by the Superintendent of Documents, Washington, D. C— Price, 10 cents 



THE DEPARTMENT OF STATE 



BULL 



H 



1 rm 



Tin 



OCTOBER 25, 1941 
Vol. V, No. 122— Publication 1653 



C 



ontents 




National Defense Page 

Arming of American-flag ships engaged in foreign com- 
merce: Statement by the Secretary of State before 

the Senate Foreign Relations Committee 307 

The Role of the Department of State in the Field of 
International Economic Operations: Address by 

Assistant Secretary Acheson 308 

Lend-lease aid 311 

Requisitioning for national defense of certain airplanes 

purchased by Peru 314 

Presentation of letters of credence by the American 

Minister to Iceland 315 

Sinking of the S.S. 5oZc^ Fentore south of Iceland . . . 316 

Europe 

Execution of hostages by the Nazis: Statement by the 

President 317 

Address by Assistant Secretary Long before Italian- 
American societies 317 

Commercial Policy 

Permanent Rehabilitation of World Commerce Through 

Reciprocal-Trade Treaties: Address by Raymond H. 

Geist 319 

Inter-American Coffee Board 324 

The International Cupboard: Address by Wallace 

McClure 325 

[OVER] 



K. ^. SUPFRINTFWnENT OF DOCUME«I« 

NOy 6 194/ 







OTltGJltS—coNTmvET) 

Cultural Relations Page 

Inter-American trade-scholarship program 332 

International Conferences, Commissions, Etc. 

Conference of the International Labor Organization . 333 

The Department 

Appointment of officers 334 

The Foreign Service 

Personnel changes 334 

New consulate at Antigua 335 

Treaty Information 
Sovereignty: 

Convention on the Provisional Administration of 

European Colonies and Possessions in the Americas 335 
Act of Habana Concerning the Provisional Adminis- 
tration of European Colonies and Possessions in 

the Americas 335 

Legal assistance: Protocol on Uniformity of Powers of 

Attorney Which Are To Be Utilized Abroad .... 336 
Flora and fauna: Convention on Nature Protection 
and Wildlife Preservation in the Western Hemi- 
sphere 336 

Fisheries: Convention for the Preservation and Pro- 
tection of Fur Seals 336 

Commerce: Inter-American Coffee Agreement .... 337 

Legislation 337 

Publications 337 

Regulations 337 



National Defense 



ARMING OF AMERICAN-FLAG SHIPS ENGAGED IN FOREIGN COMMERCE 

STATEMENT BY THE SECRETARY OF STATE BEFORE THE SENATE FOREIGN 

RELATIONS COMMITTEE' 



[Released to the press October 21] 

The progress of events, and particularly of 
military and naval operations beyond and on 
the seas, makes it advisable and urgent that the 
Congress grant full authority to take certain 
measures which are plainly essential for the de- 
fense of the United States. It is imperative 
now to exercise what Elihu Root in 1914 called 
"the right of every sovereign state to protect 
itself by preventing a condition of affairs in 
which it will be too late to protect itself". 

Such a condition of affairs now impends. 
Unless it is promptly dealt with, efforts at self- 
defense may come too late. 

The paramount principle of national policy 
is the presei-vation of the safety and security of 
the Nation. The highest right flowing from 
that {principle is the right of self-defense. That 
right must now be invoked. The key to that 
defense under present conditions is to prevent 
Hitler from gaining control of the seas. 

On October 26, 1940, 1 said : 

"Should the would-be conquerors gain con- 
trol of other continents, they would next con- 
centrate on perfecting their control of the seas, 
of the air over the seas, and of the world's 
economy; they might then be able with ships 
and with planes to strike at the communication 
lines, the commerce, and the life of this hemi- 
s^iihere ; and ultimately we might find ourselves 
compelled to fight on our own soil, under our 



' October 21, 1941. 



own skies, in defense of our independence and 
our very lives." 

In the year which has ensued. Hitler and his 
satellites have extended their military occu- 
pation to most of the Continent of Europe. 
They are already seeking control of the sea. 
They have attacked American vessels, contrary 
to all law, in widely separated areas; particu- 
larly they are now trying to sever the sea lanes 
which link the United States to the remaining 
free peojales. Hitler under his policy of in- 
timidation and frightfulness has in effect given 
notice that American lives and American ships, 
no less than the lives and ships of other na- 
tions, will be destroyed if they are found in most 
of the north Atlantic Ocean. In the presence of 
threats and acts by an outlaw nation, there 
arises the right, and there is imposed the duty, 
of prompt and determined defense. Our ships 
and men are legitimately sailing the seas. The 
outlaw who preaches and practices indiscrimi- 
nate, terroristic attack in pursuit of world- 
conquest is estopped to invoke any law if law- 
abiding nations act to defend themselves. 

The conviction that the Atlantic approaches 
to the Western Hemisphere are under attack no 
longer rests on inference. The attack is con- 
tinuous; there is reason to believe that it will 
steadily increase in strength and intensity. 

When the Neutrality Act of 1939 was passed, 
we went far in foregoing the exercise of certain 
rights by our citizens in time of foreign war. 
This was for the purpose of avoiding incidents 

307 



308 



DEPARTMENT OF STATE BULLETIN 



such as those that confronted our Government 
during the first World War as a result of un- 
restricted German-submarine warfare. But 
there was no waiving of our right to take the 
fullest measures needed for self-defense on land 
and sea if the tide of conquest should move in 
our direction. 

The tide has so moved. The course of the 
present war has altered the picture completely. 
Certain provisions of the existing legislation 
under the changed circumstances now handicap 
our necessary work of self-defense and stand 
squarely in the way of our national safety. 

The Congress has recognized the change in 
circumstances and has passed the Lend-Lease 
Act. It thereby determined that the efforts of 
those nations which are actively resisting ag- 
gression are important and necessary to the 
safety of the United States. It approved, as 
a necessary measure of defense, the fullest sup- 
port to nations which are in the front line of 
resistance to a movement of world-conquest 
more ruthless in execution and more hideous in 
effects than any other such movement of all 
time. An indispensable part of our policy must 
be resolute self-defense on the high seas, and 
this calls especially for protection of shipping 
on open sea lanes. 

One of the greatest mistakes that we could 
possibly make would be to base our policy upon 
an assumption that we are secure, when, if the 
assumption should prove erroneous, the fact of 
having so acted would lay us comj^letely open 
to hostile invasion. 

Wlien American ships are being wantonly and 



unlawfully attacked with complete disregard of 
life and property, it is absurd to forego any 
legitimate measures that may be helpful toward 
self-defense. It is especially absurd to continue 
to tie our hands by a provision of law which 
prohibits arming our merchant vessels for their 
own defense. 

I repeat, the highest duty of this Government 
is to safeguard the security of our Nation. The 
basic consideration is that measures and methods 
of defense shall be made effective when and 
where needed. They are now needed especially 
on the high seas and in those areas which must 
be preserved from invasion if the full tide of 
the movement of world-conquest is not to beat 
at our gates. 

It would be little short of criminal negligence 
to proceed on the hope that some happy chance 
or chances will save us from a fate like that 
which has befallen so many other countries in 
the world. We cannot run away from a situa- 
tion which can only be dealt with by the firm 
measures of a people determined and prepared 
to resist. It is worse than futile to read the war 
news from overseas and conclude that each tem- 
porary check to the would-be world-conqueror 
relieves us of the need to provide fully for our 
own national defense. 

I am convinced that in the interest of our 
national security the passage of the pending bill 
to repeal section 6 of the Neutrality Act is both 
urgent and important. Inasmuch as section 2 
is not under consideration I will offer no com- 
ment except to say that in my judgment section 
2 should be repealed or modified. 



THE ROLE OF THE DEPARTMENT OF STATE IN THE FIELD OF 
INTERNATIONAL ECONOMIC OPERATIONS 



ADDRESS BY ASSISTANT SECRETARY ACHESON' 



[Released to the press October 25] 

Today the immediate foreign policy of the 
LTnited States is to meet and defeat the supi-eme 
challenge in history to the existence of free 
peoples anywhere in the world. There has 



never been a time when the purpose of our 
policy could be or has been stated more simply. 



' Delivered before the luncheon session of the Foreign 
Policy Association, New York, N.Y., October 25, 1941. 



OCTOBER 25, 1941 



309 



There has never been a time when the causes 
which inspired it have been more plain. It is 
a response to the stark and ugly fact that we 
cannot survive if Nazism should win, by a 
people who mean to survive — and to survive as 
a free people. It is a recognition that this 
tyranny must be blotted out before men any- 
where can move forward toward the goal of a 
free society, a full and good life for all men. 
It is a recognition that the hope for decency 
and freedom and security in the hearts of men 
and women everywhere depends for its fulfill- 
ment upon the defeat of Nazism. 

So the policy is plain. It has been made 
plain by statement and action. To carry out 
this policy requires action in many fields. I 
shall speak briefly about only one of them — the 
field of international economic operations. 
Here the task is to use every economic instru- 
ment at our disposal to strengthen our own 
resources and to weaken the forces of aggres- 
sion. 

Within the past month the Secretary of State 
has improved and enlarged the organization in 
the State Department to carry on this work. 
The purpose of the changes is to unify direction 
in both plan and action throughout the broad 
range of economic foreign policy. For this 
area of action has assumed more and more im- 
portance in our foreign relations as production, 
commerce, and finance have become the tools of 
defense. 

The very names of some of the new divisions 
which have been created indicate the new eco- 
nomic problems which war has thnist upon the 
Department of State. The Foreign Funds and 
Financial Division is concerned with the for- 
eign-policy aspects of fimd freezing; the Divi- 
sion of World Trade Intelligence, with the 
"blacklist" ; the Division of Defense Materials, 
with the acquisition of strategic materials from 
other countries; the Division of Exports and 
Defense Aid, with the demands from other 
countries upon our productive capacity. Here 
are new problems and instruments for dealing 
with them — the problems and instruments of a 
war-time world. 



Another observation is necessary to state the 
relation of the Department of State to economic- 
defense operations. The administration of 
nearly all of these operations is entrusted, not 
to the State Department, but to one of the other 
agencies of the Government. Freezing control 
is administered by the Treasury; shipping con- 
trol, by the Maritime Coimnission ; export con- 
trol, by the Economic Defense Board ; priority 
and allocation control, by the Office of Produc- 
tion Management and the Supply Priorities and 
Allocations Board; the purchases of strategic 
materials, by the Federal Loan Agency; the 
supplying of the countries resisting aggression, 
by the Division of Defense Aid Reports. 

But in all of these operations the State De- 
partment is directly involved for two reasons. 
First, it is the instrumentality which assists the 
President in the exercise of his constitutional 
prerogative of conducting our relations with 
foreign governments. Second, our Foreign 
Service officers are the antennae of our Govern- 
ment, reaching out into all parts of the world. 
This requires participation by the State Depart- 
ment at two points in international economic 
operations. It must advise with and guide the 
operating agencies upon the foreign-policy as- 
pects of their decisions; and it must, in large 
part, furnish the means of carrying out these 
decisions so far as they require action in foreign 
countries. The purpose of the new organiza- 
tion is to make this participation effective and 
unified. 

The method chosen has been the creation of 
a Board of Economic Operations which consists 
of two of the administrative assistants and two 
of the economic advisory assistants to the Sec- 
retary of State together with the chiefs of the 
six operating divisions. Through the regular 
meetings of the Board and through the work of 
its secretariat, attention is focused upon eco- 
nomic-defense problems facing the Government, 
and plans of operation are evolved to utilize and 
synchronize all the instruments at our com- 
mand. 

In establishing the operating divisions the 
broad plan has been to have within the Depart- 



310 



DEPARTMENT OP STATE BULLETIN 



ment a small counterpart of each of the prin- 
cipal economic administrative agencies of the 
Government, and at the center of them all a 
division of research and statistics. The function 
of this division is, in cooperation with the great 
statistical agencies of the Government, to make 
available to the State Department a continuous 
flow of the economic facts which are essential to 
give realism and practicality to its decisions. 

Each of the operating divisions maintains 
not merely liaison but the closest working rela- 
tions with the administrative department or 
agency with whose work it is primarily con- 
cerned. Often this is achieved by the physical 
location of officers of the Department of State in 
the offices of the administrative agency. For 
it has become plain that questions of foreign 
policy generally are not separable from ques- 
tions of operation. Both are intertwined 
strands of a single problem. And wise advice 
on matters of foreign policy in economic op- 
erations must be rooted in complete understand- 
ing of the day-by-day functioning of the in- 
struments of economic operation. Every ad- 
ministrator knows how often the most important 
decisions of policy are secreted in the interstices 
of the administrative process. 

So the divisions of economic operation in the 
State Department must work side by side with 
the other administrative agencies, learning the 
technical side of operation, knowing the facts, 
following matters through from beginning to 
end. Only in th's way can it effectively point 
out relations to other operations in the foreign 
field, recognize and advise on questions of for- 
eign policy whenever they arise, and often, 
through our Foreign Service, perform essen- 
tial parts of the operation. 

So much for machinery, organization, and 
method. It is obviously impossible in a brief 
address — even if it were desirable — to discuss 
the substance of the great number of current 
operations. It is possible to mention only a 
single objective and the progress which has been 
made. There is, for instance, the immense task 
of mobilizing the resources of this hemisphere 
for the struggle against aggression, and at the 
same time preventing their use by those who 



may have hostile jDurposes. This effort calls 
upon nearly all of the economic divisions of the 
State Department and of the other agencies of 
the Government. 

The first step was cooperative action with the 
other American republics by which they placed 
the export of strategic materials under control 
and by which this Government became the pur- 
chaser directly or through the defense indus- 
tries. But the purchase of products deals with 
only one facet of an economy. The other na- 
tions of the hemisphere must have the imports 
which are essential to maintain them. Most of 
the materials which they need are also vitally 
needed for our own vast armament program and 
are not adequate for all of the demands. Ac- 
cord'ngly, again in cooperation with the other 
American nations, we are engaged in a great 
economic survey to establish the basis for an 
allocation of materials to meet their essential 
needs. But goods cannot move between North 
and South America without shipping, and the 
demands upon the available tonnage are myriad. 
So it is essential that all available shipping be 
utilized, including the foreign ships immobi- 
lized in the harbors of this hemisphere. Here 
once more cooperation with the other American 
nations has been ach'eved in our common inter- 
ests with the result that the immobilized ships 
are steadily returning to service. 

The problem, however, is not restricted solely 
to acquisition of strategic materials and the 
supplying of essential needs. In many coun- 
tries in this hemisphere it is necessary in order 
to maintain their social and economic life to 
provide solutions, even though temporary, for 
the loss of markets for commodities which do 
not figure in the armament program — com- 
modities such as coffee, wheat, cotton, cocoa, 
and others. This work, too, is going forward. 
Commodity agreements are being made to allo- 
cate and stabilize existing markets. Plans are 
being made to carry and make available, when 
aggression shall be halted, the vital stocks of 
raw materials which may furnish the material 
basis for restoring freedom and hope to a dev- 
astated world. 

To protect ourselves and our sister nations 



OCTOBER 25, 1941 

from the use of our monetary system and our 
and their resources to the harm of all of us, 
further action has been taken. Through the 
use of the "Proclaimed List" and the powers 
conferred by freezing and export controls, great 
steps have been taken to prevent business and 
financial transactions which may benefit the 
Axis powers or provide the funds for their 
propaganda and subversive activities. These 
weapons are powerful and can go far toward 
eliminating hostile firms and persons from the 
economic life of this hemisphere. 

But still more is required. There is the task, 
on which we are advanced, of furnishing from 
our defense industries the military equipment 
necessary to enable the other American republics 
to play their part in the defense against attack — 
whatever its form. This, too, must be fitted into 
the demands upon our own production and the 
necessities of our neighbors' economies. 

Here, in the briefest outline, is a single prob- 
lem of the many which confront us. I mention 
it to point out the many fields into which it 
ramifies and the vast coordinated effort, within 
government and between governments, which it 
makes necessary. In this the Department of 
State must play its part. We are doing our best 
to play it as a team and to play it well. 

We know that the economic operations of war 
and defense are not ends in themselves, and 
that the defeat of Nazism is not enough. It is 
an essential but not a final aim. To repel this 
fanatical and violent challenge to every article 
of our democratic faith, to every hope of a de- 
cent and free life in the hearts of free men 
everywhere is a beginning not an end. We must 



311 

go on to marshal our resources of will and 
brains and things to fulfil the promise of our 
democracy and to realize these hopes of plain 
people which the Nazis despise. When our 
factories and farms no longer produce weapons 
and food for armies we must see to it that they 
turn out with the same energy the material 
things to guarantee freedom from want and 
freedom from fear. We must have our free 
labor movement pursuing its ideal of bettering 
the lot of labor. We must have our free 
churches and synagogues reaffirming our faiths 
and the ethics of our civilization. Yes, we must 
even have our critics and radicals and dissenters. 
All these things which we shall preserve, 
Nazism destroys first. For these things are the 
surge of common men staking out new home- 
steads of freedom and decency in a new age. 

But we cannot achieve these ends alone. So 
we must also play our part in the creation of a 
better world order, founded upon liberty and 
opportunity for the common man. The State 
Department, with the other branches of the 
Government, is at work upon measures neces- 
sary for international economic reconstruction. 
This involves tariffs and gold and currencies and 
access to raw materials and to international 
trade. It involves all the thorny problems of 
international economic integration. 

And so the problems which lie befoi-e us are 
not easy ones, but they are not problems beyond 
the resources of a free and powerful people de- 
termined to preserve all that they are and hope 
to be. For those who have a fighting faith in 
democracy and freedom, not as a form of words 
but as a vital living force, the battle has only 
begun. 



LEND-LEASE AID 



The Second Supplemental National Defense 
Appropriation Bill for 1942 ' will add approxi- 
mately $6,000,000,000 to the $7,000,000,000 
already appropriated ^ to carry out the provi- 
sions of the act entitled "An Act Further to 



' Approved by the President October 28, 1941 
(Public Law 28, 77th Cong.). 
' Public Law 23, 77th Cong., 55 Stat. 53. 



promote the defense of the United States, and 
for other purposes", approved March 11, 1941,^ 
the purpose of wh'ch is to extend lend-lease aid 
to countries whose defense is vital to that 
of the United States. 

Practically all of the $7,000,000,000 appropri- 
ated on March 27, 1941 has been allocated for 



' Public Law 11, 77tli Cong., 55 Stat. 31. 



312 



DEPARTMENT OP STATE BtTLLETrN' 



specific materials and services, as set forth in 
the following excerpt from the President's Sec- 
ond Lend-Lease Report to Congress dated Sep- 
tember 11, 1941 : 1 

"Contracts have been placed and ■work has 
started on nearly a billion dollars of bombard- 
ment aircraft. New ways have been started 
and work is in progress for about one-half a 
billion dollars of new merchant shipping. New 
facilities to speed the production of guns, am- 
munition, and other defense articles have been 
started inider contracts totaling about $262,- 
000,000. Over $430,000,000 has been allocated, 
and over $250,000,000 has been obligated, for 
the purchase of milk, eggs, and other agricul- 
tural products. 

"Daily the aid being rendered is growing. 
Through the month of August the total dollar 
value of defense articles transferred and 
defense services rendered, plus expenditures 
for other lend-lease purposes, amounted to 
$486,721,838. 

"Food and steel and machinery and gims and 
planes have been supplied in increasing quan- 
tities. Agricultural commodities worth $110,- 
606,550 have been transferred to the countries 
we are aiding. We have transferred to the 
United Kingdom more than 44 million pounds 
of cheese, more than 54 million pounds of eggs, 
more than 89 million pounds of cured pork, 
more than 110 million pounds of dried beans, 
and more than 114 million pounds of lard. We 
have transferred to them more than 3 million 
barrels of gasoline and oil. We have sent them 
many tanks. Merchant and naval ships and 
other transportation equipment are being trans- 
ferred in growing amounts. 

"A substantial number of cargo ships and 
tankers have been chartered to the use of those 
countries whose defense is vital to our own. 
Our yards are repairing allied merchant ships. 
We are equipping allied ships to protect them 
from mines ; and we are arming them, as much 
as possible, against aircraft, submarines, and 
raiders. 



"We have also, by repairing and outfitting 
their warships, helped the British and allied 
navies keep clear the vital sea lanes upon which 
depends continued resistance to Axis piracy. 
The repair of the battleship Malaya and the 
aircraft carrier Illustrious are outstanding ex- 
amples of this naval assistance. 

"Over the whole range of technical and ma- 
terial assistance required by modern warfare, 
we are, under the lend-lease program, render- 
ing effective help. Important defense informa- 
tion is being supplied to Britain and the other 
nations fighting the Axis powers. Our tech- 
nicians are instructing the Allies in the as- 
sembly operation and maintenance of the tools 
coming from our factories. Across the United 
States and across Africa our plane ferry serv- 
ice is linking the arsenals of America with 
democracy's outposts in the Middle East. On 
our airfields thousands of British pilots are be- 
ing and will continue to be trained and already 
we are preparing a similar program to help 
the Chinese." 

Under lend-lease procedure, lend-lease funds 
are not transferred to, and cannot be expended 
by, any foreign government. A foreign gov- 
ernment desiring lend-lease aid must file a for- 
mal request for specified material with the 
Division of Defense Aid Reports, Office for 
Emergency Management of the Executive Of- 
fice of the President, which was established 
by Executive Order 8751, of May 2, 1941, to 
provide a central channel for the clearance of 
transactions and reports and to coordinate the 
processing of requests for aid under the act. 
These requests are then forwarded by the Divi- 
sion of Defense Aid Reports to the procuring 
agency of the United States Government best 
qualified to make a recommendation as to 
whether a specific item should be supplied.^ 
After the requests are studied by that agency 
to determine whether the item can be supplied 
from stock on hand, diverted from existing con- 



' S. Doc. 112, 77th Cong., 1st sess. For first report, 
see S. Doc. 66, 77th Cong. 1st sess. 



' Such as the Treasury Department, the War Depart- 
ment, the Navy Department, the Department of Agricul- 
ture, or the Maritime Commission. 



OCTOBER 25, 1941 

tracts, or ordered for future delivery, its recom- 
mendation is forwarded to the Division of De- 
fense Aid Kepoits for further processing and 
approval. Purchases are then made and the 
funds expended by the agency concerned. 

The British Empire has received the bulk of 
the aid transferred under the Lend-Lease Act. 
In accordance with the provisions of the act, no 
aid has been given to the British, or to any other 
country, until they have given us written as- 
surances that no transfers of lend-lease ma- 
terial will be made without the President's con- 
sent and that American patent rights in any 
defense articles transferred will be fully pro- 
tected. Agreements have been concluded with 
the British covering these two points, and a 
formal statement has been received from the 
British Government concerning the export and 
distribution of lend-lease material.^ These 
assurances are to be supplemented by a lend- 
lease agreement, the basic principles of which 
have already been formulated and have been 
communicated to London, where they are being 
considered by the British Government. 

At the hearings before the Subcommittee of 
the House Committee on Appropriations on the 
Second Supplemental National Defense Appro- 
priation Bill for 1942, Assistant Secretary of 
State Acheson stated, on September 26, 1941, 
that vital benefits from our aid to the British 
have already been received. "We have secured 
valuable defense information. Our Army and 
Navy observers have had the benefit of lessons 
which have been, and can be, learned only in 
actual combat. And most important — as a re- 
sult of the gallant fight of the British people, 
our security has been protected and we have 
been given time in which to strengthen our 
defenses." 

Lend-lease aid is also being extended to China, 
and progress is being made toward the com- 
pletion of an agreement with China. Cargo 
vessels have been supplied to carry needed goods 
to Rangoon, Burma, the principal remaining 
port of entry into Free China; materials are 
being supplied for the repair and upkeep of 
China's lifeline, the Burma Road; medicine and 



' Bulletin of September 13, 1»41, p. 204. 

423660 — 41 2 



313 

teclmical assistance are being furnished to fight 
the ravages of malaria ; and contracts have been 
concluded to deliver fighter planes to reinforce 
the Chinese Air Force. A military missioii to 
advise and consult with the Chinese authorities 
concerning the use of these defense articles has 
proceeded to China. 

Sharing in the lend-lease program are nations 
under Nazi domination which are represented 
politically by governments in exile and whose 
civilian workers, soldiers, and sailors are operat- 
ing throughout the world in the common cause. 
Lend-lease funds are outfitting Polish troops 
who are training in Canada for overseas action, 
and the Polish merchant marine has received 
needed equipment to carry on. Greek and 
Yugoslav troops who managed to escape to 
British territory are re-forming units and re- 
equipping themselves with new materials. Nor- 
way is represented principally by her merchant 
sailors. Belgium has obtained military and 
other equipment for the use of her troops regu- 
larly stationed in the Belgian Congo, as well as 
for free Belgians who are re-forming their lines. 
Arms and ammunition, aircraft, naval boats and 
tanks, and a wide assortment of commercial 
goods have been shipped to the Netherlands 
Indies, and an agreement has been completed 
with the Netherlands which provides for full 
cash reimbursement. 

In furtherance of the strategic requirements 
for adequate defense of this Nation through 
complete defense of the Western Hemisphere, 
steps are being taken to provide the other 
American republics with the equipment and 
materials vitally needed as insurance against 
aggression. 

Agreements have already been concluded 
with certain of the American republics. A let- 
ter from the President to Senator Arthur H. 
Vandenberg, of Michigan, dated October 4, 1941, 
states the following with regard to these agree- 
ments : 

"In connection with our program of lend-lease 
aid to the other American republics, we have 
concluded agreements with Brazil, the Domini- 
can Republic, Haiti, and Paraguay, and are 
negotiating agreements with the other Ameri- 



314 



DEPARTMENT OF STATE BULLETIN 



can republics. The agreements which have been 
concluded, whether with the other American 
republics or any other country, all contain the 
assurances required by the Lend Lease Act. . . . 
In addition, they jirovide that the country in- 
volved shall pay .some proportion of the cost of 
the defense articles ti'an.sf erred. These propor- 
tions vary in accordance with the varying eco- 



nomic positions of the countries involved. In 
view of the fact that discussions are still pend- 
ing with some of the American republics, I do 
not think that it would be advisable to disclose 
the terms of the agreements which have already 
been concluded." 

In addition to the above, an agreement has 
been concluded with the Republic of Nicaragua. 



REQUISITIONING FOR NATIONAL DEFENSE OF CERTAIN AIRPLANES 

PURCHASED RY PERU 



[Released to the press October 20] 

The following notes from the Secretary of 
State have been addressed to the Peruvian Am- 
bassador at Washington, Senor Don Manuel de 
Freyre y Santander : 

"October 17, 1941. 
"Excellency : 

''With reference to Your Excellency's note of 
October 6, 1941 ' regarding eighteen airplanes, 
Douglas model 8 A-5, jjurchased by the Peru- 
vian Government and in transit through the 
United States to Peru, I have the honor to in- 
form Your Excellency that the AVar Depart- 
ment has found it necessary in the interests of 
national defense to requisition these airplanes. 
Appropriate steps are being taken in this re- 
spect under the authority of the Act of October 
10, 1940 (Public No. 829— 76th Congress) in 
conformity with procedure prescribed by Exec- 
utive Order of the President, dated October 15, 
1940.2 

"It is regretted that the Peruvian Govern- 
ment may have been inconvenienced by the req- 
uisitioning of these airplanes by this Govern- 
ment. I believe Your Excellency and Your Ex- 
cellency's Government will agree, however, that 
in the present critical world situation it is of 
vital interest to all of the American republics 
that such rapid and effective action be taken 
whenever necessary to utilize airplanes and 



other scarce implements of war to defend this 
continent in the ways that may be decided to 
be most advantageous strategically by those now 
engaged in that defense. With the rapidly ex- 
panding airplane production facilities of this 
country it will soon be possible to provide the 
other American republics with such aviation 
equipment as they may need for defense against 
non-American aggression. At this time it 
nevertheless continues to be necessary to exer- 
cise every precaution, and even such mandatory 
powers as those used in the present instance, to 
insure the complete mobility of the available 
mechanized equipment that is so essential for 
the protection of the American republics. I 
assure Your Excellency that the Government of 
the United States will of course continue fully 
to collaborate with Peru and the other Ameri- 
can republics in all matters related to conti- 
nental defense. 

"Accept [etc.] Cordell Hull" 



' Not printed. 

' See the Bulletin of October 19, IfMO, p. 313. 



"October 20, 1941. 
"Excellency : 

"I have the honor to refer to my note of 
October 17, 1941, advising Your Excellency that 
the War Department had with regret found it 
necessary, because of urgent defense needs, to 
requisition certain airplanes which had been 
purchased by the Peruvian Government and 
were in transit through the United States to 
Peru. 

"I am happy to inform Your Excellency that 



OCTOBER 2 5, 194 1 



315 



this Government is taking steps to give the Gov- 
ernment of Peru full and immediate compensa- 
tion, in accordance with the usual and estab- 
lished procedure for such cases. 

"This procedure is established by Executive 
Order of the President dated October 15, 1940. 
providing for the administration of the account 
entitled 'Act to Authorize the President to 
Requisition Certain Articles and Materials for 
the United States, and for Other Purposes'. 
(Act approved October 10, 1940, Pub. 829, 76th 
Cong.) Under its provisions the Administra- 
tor of Export Control shall 'hold or cause to 



be held whatever hearings may be necessai-y to 
determine the fair and just value of such 
property, at which hearings the owner of the 
property, his duly authorized agent or repre- 
sentative, or other person claiming an interest 
therein, may present evidence orally or in writ- 
ing regarding the fair and just value of the 
article or material requisitioned and taken over. 
Upon conclusion of such hearings the Adminis- 
trator of E.\port Control shall report to the 
President his finding and recommendation in 
regard thereto.' * 

"Accept [etc.] Cordell Hull" 



PRESENTATION OF LETTERS OF CREDENCE BY THE AMERICAN 

MINISTER TO ICELAND 



[Released to the press October 20] 

The Department of State on October 20 re- 
ceived a report from the American Minister to 
Iceland, Mr. Lincoln jMacVeagh, concerning his 
audience with His Excellency Sveinn Bjorns- 
son. Regent of Iceland, for the purpose of pre- 
senting his credentials as Minister of the United 
States to Iceland. The audience was held at 
11 o'clock on the forenoon of September 30, 
1941, at the Palace of the Althing. 

The text of the ceremonial address by Mr. 
MacVeagh upon the occasion of the presenta- 
tion of his letters of credence follows : 

"YoTJE Excellency: 

"In presenting the letters whereby the Presi- 
dent of the United States informs Your Ex- 
cellency of his choice of me to reside near the 
Government of Iceland in the quality of Envoy 
Extraordinary and Minister Plenipotentiary, I 
wish, with Your Excellency's pei'mission, to say 
a few words in personal appreciation of the 
honor thus conferred upon me. 

"I am profoundly sensible of the privilege 
accorded me to initiate the diplomatic repre- 
sentation of my country here, and to labor to 
draw still closer, and to develop in all fruitful 
ways, the understanding which has existed im- 
memorially between our two peoples. 



"That understanding I believe to be based on 
a fundamental unity of outlook, and on a faith 
which we both preserve in a common heritaiic. 
Icelanders and Americans, we are both de- 
scended from men who feared the terrors of 
the sea less than they loathed the rule of the 
ojjpressor, and pushed off in frail ships to seek 
freedom in a newer world. We are both de- 
scended from generations which maintained 
that liberty jealously, and we both love it still, 
more strongly than our lives. 

"In these days, however, when monstrous per- 
versions of the human spirit threaten to engulf 
all vestiges of liberty under tyrannies which 
cast into the shade any of those from which our 
fathers fled, this sympathy and understandmg 
which unites us cannot help but become more 
explicit, more active, more alive. Indeed, the 
sons of the pioneers of the Western Ocean, you, 
our elder brothers, and we, your more numerous 
cadets, are today looking each other in the eyes 
with frank recognition of a common peril, and 
clasping hands in such determination as would 
not have shamed either the Vikings or the Pil- 
grim Fathers. 

"American hearts. Your Excellency, always 
beat faster when they hear the name of Iceland. 



' 5 F.H. 4122. 



316 



DEPARTMENT OF STATE BXTLLETIN 



The thousand-year-old glory of this magnifi- 
cent northern bastion of human idealism thrills 
us like the call of our own martial but demo- 
cratic triunpets. We want our own freedom, 
and we want Iceland free, and I believe you 
reciprocate our sentiments. 

"Thus we face the future together, brothers 
in spirit as of old, but fully conscious now of 
what this means. In the complexities of our 
joint labor for a common cause, which, as I 
have said, is dearer to us than life, there will, 
there must be difficulties to surmount, but there 
can be no suspicion, no mistrust. To assist in 
smoothing the splendid path made possible by 
our basic understanding, and to endeavor to de- 
velop our cooperation, now and in the future, 
into the most perfect collaboration of which 
two free and intelligent peoples are capable, is 
my fair task here, Your Excellency, and that 
of my successors, as I conceive it. To be en- 
trusted with such a mission is surely cause 
enough for any man both to rejoice and pray." 

The reply of His Excellency Sveinn Bjorns- 
son to the ceremonial address of Mr. MacVeagh 
follows : 

"Mr. Minister: 

"In receiving with great pleasure the letters 
of credence from the President of the United 
States which you have presented to me, I thank 
His Excellency the President of the United 
States for the good wishes you on behalf of 
the President have brought me for Iceland and 
for the Regent of Iceland. I take the oppor- 
tunity to express the most cordial wishes for 
the great people of the United States and for 
the noble Head of State. 

"I was very glad to hear your friendly expres- 
sions about my people. I can assui'e you that 
we heartily reciprocate your sentiments wlien 
you said that you want freedom and that you 
want Iceland free. 

"As a confirmation of our common views ex- 
l^ressed by you, I will point out that our Prime 
Minister in his message to the President of the 
United States three months ago emijhasized the 
accordance between the interests of the United 
States and those of Iceland under the present 



state of affairs.' And I think that it will be- 
come still more apparent that such accordance 
compasses various interests. 

"I agree with you, Mr. Minister, that in the 
complexities of our joint labour there must be 
difficulties to surmount. But I feel convinced 
that they will be surmounted ; and I can assure 
you that so far as we ai"e concerned there will 
be no lack of good-will to take our shai-e in the 
cooperation. 

"Our admiration for the people of the United 
States and their great love of and struggle for 
freedom and democracy under the leadership of 
your excellent President, makes closer coopera- 
tion with the United States very welcome to us. 

"Your appointment, Mr. Minister, as the first 
diplomatic representative of your country in 
Iceland, on which I congratulate you heartily, 
is very welcome to us, as being a further step 
to develop and cement the understanding be- 
tween the two peoples. 

"I am very pleased to tell you, at the same 
time, that the Icelandic Government arc pre- 
jaared in every way to facilitate your efforts in 
the performance of your important mission." 

SINKING OF THE S.S. "BOLD VENTURE" 
SOUTH OF ICELAND 

[Released to the press October 21] 

The S.S. Bold Venture (formerly Danish 
Alssund) owned by the United States Maritime 
Commission under Panamanian registry is re- 
ported to have been sunk on October 16, 1941 
at 11 : 40 p.m. ship's time, position 57° north, 
24°30' west. 

The vessel had a gross tonnage of 3,222 and 
deadweight tonnage of 5,377. She was built in 
1920 and was caiTying a cargo of cotton, steel, 
copper, and general. 

The vessel, operated by the Waterman Steam- 
ship Agencj', Mobile, Ala., sailed from New 
York on September 22, carrying a crew of 32: 
5 Danish, 16 Norwegians, 3 British, 5 Cana- 
dians, 2 Swedish, 1 Scotch. 

Seventeen of the crew have been landed at 
Reykjavik. There were no American members 
of the crew. 



■ Bulletin of July 12, 1941, p. 16. 



Europe 



EXECUTION OF HOSTAGES BY THE NAZIS 



STATEMENT BY THE PRESIDENT 



[Released to the press by the White House October 25] 

The practice of executing scores of innocent 
hostages in reprisal for isolated attacks on Ger- 
mans in countries temporarily under the Nazi 
heel revolts a world already inured to suffering 
and brutality. Civilized peoples long ago 
adopted the basic principle that no man should 
be punished for the deed of another. Unable 
to apprehend the persons involved in these at- 
tacks the Nazis characteristically slaughter fifty 
or a hundred innocent persons. Those who 



would "collaborate" with Hitler or try to ap- 
pease him cannot ignore this ghastly warning. 
The Nazis might have learned from the last 
war the impossibility of breaking men's spirit 
by terrorism. Instead they develop their 
leiensraum and "new order" by depths of fright- 
fulness which even they have never approached 
before. These are the acts of desperate men 
who know in their hearts that they cannot win. 
Frightfulness can never bring peace to Europe. 
It only sows the seeds of hatred which will one 
day bring fearful retribution. 



ADDRESS BY ASSISTANT SECRETARY LONG BEFORE 
ITALIAN-AMERICAN SOCIETIES 



[Released to the press October 19] 

In an address delivered to a conference of 
delegates from 125 Italian-American societies 
at Detroit, Mich., on October 19, 1941, the Hon- 
orable Breckinridge Long, Assistant Secretary 
of State, said that he was particularly glad 
to be with them because of his former residence 
in Italy. He had gotten to know the real vir- 
tues and values of the Italian people and he 
liked them. He said that Italy is the cradle of 
civilization and that all of the world's intel- 
lectual and cultural movements had been saved 
in Italy even through the Dark Ages. Italy 
was the guardian of Christianity and of reli- 
gion. Out of it all came literature, pictorial 
and sculptural art, and the laws and customs 
upon which was built the civilization we have 
today, including our family life. The whole 
history of Italy is one long story of the care 
and protection of civilization. Every student 
of history knows the part which Italy has played 
and everyone who has been in Italy or asso- 



ciated with its people realizes that there is still 
in the Italian people the same religious and 
intellectual development and the same love of 
art, culture, and music that has characterized 
her from her earliest history and has made 
her people and products a source of joy and 
enlightenment to the world. 
Mr. Long continued : 

"It is hard to understand how Italy, with 
such a long history in the preservation of civili- 
zation, could now join with a monstrous attack 
upon the very civilization Italy had been pro- 
tecting for 2,000 years and more. It is hard 
to believe the Italian people could cooperate 
with a Nazi government which is trying to de- 
stroy the very structure Italy had nurtured. 

"It is only recently that Italy seems to have 
allied herself with forces that are gnawing at 
the vitals of oiir civilization. Italy was always 
able to live her own life and to direct her own 
destiny as long as she had a buffer state between 
herself and Germany. From earliest times, it 

317 



318 



DEPARTMENT OF STATE BTTLLETrN 



was a cardinal point of Italian foreign policy 
to keep such a buffer state." 

Mr. Long recalled his reading of Juliu.s 
Caesar in which he told of Caesar's experiences 
among the Allobroges who lived in the Valley 
of the Rhone. "They were assaulted", he said, 
"by the Helvetii who lived in the mountain 
country of what is now Imown as Switzerland 
and Austria. Caesar helped the Allobroges and 
defeated the Helvetii. They were required to 
return to their homes in the mountains. When 
they demurred and said that they had de- 
stroyed their crops and had burned their houses, 
he said they must go back and rebuild their 
houses and that the people of the Valley of the 
Rhone would give them grain to carry them over 
the winter and for planting the next spring. 
Caesar said, 'You must return and occupy these 
lands because if you do not, the Gennans will 
occupy them and that will put the Germans in 
immediate contact with the Roman people. The 
Roman people do not want the Germans for 
neighbors.' And so the Helvetii went back to 
the hills and occupied Switzerland and Austria 
as far east as Salzburg, including the region of 
the Brenner Pass. From that day until very 
recently, there has been a buffer state between 
Italy and Germany. Until very recently the 
Italian Government insisted that Austria 
should remain independent . . . but there came 
a day when Hitler suddenly ravaged Austriji 
and occupied the Brenner Pass. Since that day 
a policy which was founded by Julius Caesar 
and has continued ever since was overcome and 
now the Germans are sitting at the Brenner 
Pass. They are right on the doorsteps of the 
Italians. 

"Now it is reported that Italy has called to the 
colors an additional million men. It is stated 
that one third of this million is to be sent to 
France to take the place of German soldiers now 
holding the French people in subjugation ; that 
another third is to be sent to Yugoslavia to re- 
lieve the Germans who try to keep those people 
under military domination; and that the re- 
maining third is to join the German Army on 
the Russian front and fight the battle for 
Germany. 



"The significance of all this should not be 
overlooked. It means that the German Army 
lias suffered such stupendous losses in its cam- 
paigns against Russia that it is compelled to 
call upon Italy to send its soldiers to keep the 
German war-machine going. 

"The vindictive power which has wantonly at- 
tacked almost every country in Europe and 
which has enslaved millions of people has at 
last had inflicted upon it terrific losses. So in 
its battered condition Hitler's armies now plan 
to have Italian soldiers keep the people of 
France subdued. It now plans to have Italian 
soldiers go to Yugoslavia to win that war again. 
It now calls for Italian soldiers to go into the 
bleak winter of Russia and continue the battle 
in snow and ice so that the Germans can go home 
and rest — so that the tired, wounded, and deci- 
mated divisions of the German Army can fall 
back and let the Italians alone bear the brunt 
of this further resentment and hatred of the 
Russians. 

"The resentment and bitterness of the Rus- 
sians toward Germany is a natural consequence 
of the faithless attack by Germany upon its re- 
cent Soviet ally. No doubt the people in Italy 
are wondering whether the call to take their 
soldiers out of Italy and send them to different 
parts of Europe may not mean that they will 
become 'another Russia' once such an attack is 
made easier by the removal of a million Italian 
soldiers from their homeland. They will be 
scattered over Europe where they will be 
brigaded with the Germans and easily over- 
powered if Italy should resist an invasion. 

"The examples of Belgium and Holland, of 
Norway, of Poland, of Riunania — in short the 
recent experiences of Europe as witnessed by the 
world — give plenty of ground for fear by the 
Italian people that if they send their soldiers 
away they bare their breasts to an attack from 
so-called 'friends and allies' whose legions have 
carried out at home, as well as abroad, cam- 
paigns of terror and bloodshed, of rapine and 
slavery, campaigns which have been accom- 
panied by brutality, have been followed by 
misery, and which have horrified all respectable 
peoples. 



OCTOBER 25, 1941 



319 



"In addition to the demand upon Italy is the 
pressure the Germans are exerting on Bulgaria 
(o force her into the war so that the Bulgarian 
Army may be dragged in to help Gei-many's 
exhausted troops. 

"These two moves indicate to what an extent 
the German Army has been crippled, how gi-eat 
is the sufTering of the German people them- 
selves, how heavy has been the cost of the fight 
against Eussia, and to what extremes the Nazis 
are forced in order to carry out plans for 
conquest. 

"These plans aim at Asiatic countries and 
Africa and domination of the seas on the way 



to control the world. Lurking submarines are 
even now in waters of this hemisphere fi-om 
wliicli they must be prohibited. And it is 
against this menace we are prepared to defend 
ourselves and our neighbors. It is those resist- 
ing aggression whom we are aiding. 

"We are taking these steps in defense of our 
institutions, in defense of our culture, in de- 
fense of those personal liberties we hold so 
dear, all of which in Europe have been con- 
temptuously suppressed and trodden under the 
heel of the most dangerous marplot of modern 
times." 



Commercial Policy 



PERMANENT REHABILITATION OF WORLD COMMERCE THROUGH 

RECIPROCAL-TRADE TREATIES 

ADDRESS BY RAYMOND H. GEIST ■ 



(Released to the press October 23] 

Mr. Chairman and Gentlemen: 

It is a great privilege to address i-epresenta- 
tives of the Associated Industries of Massa- 
chusetts, and particularlj' at a time like this 
when the Nation is in the throes of the most 
gigantic industrial-mobilization effort which 
has ever taken place in the history of the world. 
The founders of our liberties and the authors 
of our greatness, mindful tliat our Nation was 
destined to undergo great trials and tribula- 
tions in the long course of history, so estab- 
lished the framework of government and guid- 
ance in the conduct of foreign relations that w(> 
are able to face with confidence the struggles of 
this era and the severe tests to which the coun- 
try is being put. Many of them, reared here 
in New England, contributed of their genius, 
enlightenment, and understanding to build our 



' Delivered before the Associated Industries of Massa- 
chusetts at a luncheon in Boston, Mass., October 23, 
1941. Mr. Geist is Chief of the Division of Commercial 
Afifairs, Department of State. 



Nation on principles of righteousness and jus- 
tice which today constitute the solid founda- 
tions of our national existence, the bulwark of 
our strength, and the guaranty of our uninter- 
rupted progress along the path of civilization. 
Not only those great Americans whose names 
are brilliantly and indelibly recorded in the 
pages of our history have spent their lives with 
hard toil and valiant effort to rear this Nation 
but the countless millions of our ancestors in 
all walks of life, with their blood and sweat, 
have created the America which we know today. 
We are now facing an approaching crisis in 
the world's history, the outcome of which is 
unknown, except that we have the firm con- 
fidence that our country by our determination 
and unswerving strength will stand unshaken 
through whatever perils may come. 

The chaos which has steadily engulfed a large 
part of the civilized world and finally has burst 
forth into a raging and fierce conflict had its 
origins in causes which are too complex to define 
and describe in the compass of a short address. 
When there was still time to deal with situa- 



320 



DEPARTMENT OF STATE BULLETIN 



tions out of which so much hatred, violence, and 
destruction have grown, experience, judgment, 
and resolution were lacking; because the states- 
men of the world, even in an age when men were 
convinced of their own enlightenment and moral 
advancement, had failed to incorporate inter- 
national relations into a world conununity 
founded on principles of law and order and 
united for the advancement and preservation of 
the common good. 

The League of Nations was an attempt to 
unite sovereign states into a new world order; 
but this followed a period when the fear of inter- 
national chaos and the threat of world collapse 
were not as real as they are today. Since the 
age of Grotius the principles of international 
law have been increasingly adopted by most 
nations in their relations with one another. 
But the full application of the principles has 
often been a matter of callous indifference and 
has frequently been subordinated to selfish na- 
tionalistic aims. Now that the whole frame- 
work of law and order is facing annihilation, 
and we know what anarchy means in interna- 
tional affairs, with the return of peace a legal 
code governing the conduct among states must 
be restored and maintained by a world unity 
based on freedom and universal justice. 

History since the rise of western civilization 
has indicated steady progress toward humanis- 
tic ideals. Great landmarks of achievement 
and enlightenment in the political, social, and 
economic fields are increasingly present along 
the path of the centuries; the abolition of feudal 
serfdom, the political victory of the Magna 
Charta, the enthronement of "liberty, equality, 
and fraternity", the rise of democratic free gov- 
ernments, the emancipation of religious thought, 
and the abolition of slavery are only a few of 
the triumphs which civilized men have unremit- 
tingly fought for and won almost wholly within 
the era of what we call modem times. We 
might well be amazed and confounded by the 
attempts of certain great nations, which them- 
selves have steadily contributed in the past to 
the advancement of civilization, to reverse this 
historical process. There is no doubt that the 



history of our times, which is now daily in the 
making, will testify to the truth that men are 
more resolute and mighty in their determina- 
tion to preserve civilization than those who have 
madly dedicated themselves to its destruction. 
With such retrospect and with the conviction 
that the stability of our Nation and institutions 
are unshakeable, we can devote ourselves to the 
huge tasks before us confident of the results. 
If there is one thing that we as a nation have 
proved to the world, and will certainly prove 
again, it is that we are capable and strong 
enough to shape our own destiny. 

No time in our historj' has called for a clearer 
understanding of international issues than the 
present. No man can afford to have nebulous 
ideas of what this conflict is about, because every 
man's interests and well-being are at stake. The 
convulsions which shake the world rumble into 
every home, into every factory and community. 
The repercussions of the shock of battle echo 
around the world, and nations great and small 
are being aroused. Our own great country is 
raising its huge bulk in an attitude of grim 
defense, ready, if need be, to strike the shatter- 
ing blow in the cause of human freedom. The 
sinews of that bulk are the industries of the 
Nation and the great laboring forces whose 
miracle of achievement will be the deciding fac- 
tor in the future history of the world. 

It is primarily in the field of industry and 
economic development that the meaning of the 
present struggle must be sought. After the 
great war which ended in 1918 the political set- 
tlement made in Europe left wide gaps and 
wounds in the economic structure of certain 
nations, which imdoubtedly time would have 
healed and which through the process of inter- 
national economic adjustments and the develop- 
ment of finance and trade on a sound and liberal 
basis would have created a common basis for 
prosperity and international accord. Though 
machinery existed for promoting collaboration 
among nations, the suspicions engendered in the 
gi'eat war promoted a resurgence of vital dis- 
cords within a space of time all too short for 
restoration of international amity. Those 



OCTOBER 25, 1941 



321 



statesmen who were working for the pacification 
of Europe and for an adjustment of the in- 
equalities which existed between former ad- 
versaries failed to afford soon enough the neces- 
sary economic relief to communities of the con- 
quered nations before the destructive elements, 
which now are rampant, installed themselves as 
leaders of the discontented hordes. 

During the decades between the two great 
conflicts, while economic factors played an im- 
portant role in setting in motion the forces 
which eventually broke down international co- 
operation and set up regimes of nationalistic 
self-sufficiency, theories of government, theories 
of international conduct, and theories of 
economic revolution were set in motion with 
such tempo and aggressive ruthlessness that the 
rest of the world, including ourselves, were 
unable to estimate clearly or adequately the 
potential extent of the danger. In the short 
space of a few years, while the totalitarian sys- 
tem of government and economy was applied 
mostly at home, it gradually spread out its 
tentacles through diplomatic commercial nego- 
tiations and the instrmnentality of foreign 
trade. The rest of the world, though suspicious 
and mistrustful of the disturbing forces which 
entered the international commercial field, en- 
deavored to accommodate itself to the demands 
and exigencies of the totalitarian trading factor, 
conducting their negotiations, as far as possible, 
according to international practice and usage. 

Thus the changes which gradually came about 
in the international economic order began to dis- 
locate the streams of commerce and finally with 
the advent of hostilities completed their de- 
struction, so that now those areas which are 
occupied by the military forces of the totali- 
tarian powers have almost no commerce with 
the outside world. In those countries, compris- 
ing most of the Continent of Europe, an eco- 
nomic paralysis has set in. In these regions, 
now under foreign domination, other factors, 
probably more vital and potent than those of 
an economic character, such as the inalienable 
passion to live as free men and to pursue na- 
tional destiny unfettered and unenthralled, pre- 

423660 — 41 3 



vent the return of stable conditions anywhere 
in the world, until such domination has ceased. 
This is the dark prospect all free nations of 
the world are facing. The hope that out of 
this conflict will emerge a better international 
order cannot reasonably be cherished without 
first accomplishment of the emancipation of 
those peoples whose free association and coop- 
eration with the family of nations are inalien- 
able. The world cannot be divided into segre- 
gated spheres, particularly upon the threshold 
of an era when progress in transportation as- 
sures the annihilation of distances. It is essen- 
tial, in view of the tremendous speed with which 
science is creating new conditions for the hu- 
man race, that political and economic adjust- 
ments be made to meet these conditions. 

The advent of scientific and mechanical prog- 
ress is steadily determining the basic conditions 
not only of national life but also of interna- 
tional relations. The closer states are drawn 
together in the community of nations the more 
stable and reliable must be the bonds which 
unite them and the more universal the principles 
which govern their intercourse. At no time in 
the world's history has wide and fundamental 
divergence in concepts of government, of social 
and economic systems been more disastrous to 
human destiny than now. With each decade 
the momentum of progress is gathering force, 
creating universal processes of civilization, and 
spreading the common ideals upon which it is 
based. The forces of enlightenment, facilitated 
in their onward march by modern scientific and 
mechanical aids, have been constantly extended 
into the remotest corners of the earth, giving 
peoples everywhere a sense of kinship and unity 
with the whole civilized world. Now we are 
face to face with an attempt to establish what 
is called a new order, not on the foundations 
of what the world has long approved and cher- 
ished but on principles and systems which have 
no validity according to our understanding or 
no relation to the traditions upon which mod- 
ern society is based. This so-called new order 
is to be set up with or without the consent of 
peoples who have been dominated by force of 



322 



DEPARTMENT OF STATE BULLETIN 



arms. It is to be chiefly a composite political 
unit over which an autocratic authority retains 
the supreme power maintained by the force of 
arms. It is obvious that those who are con- 
templating establishing this regime expect to 
maintain over the economy of all the nations 
affected systems of control which are at variance 
with the principles of free enterprise and world 
trade. There is a vast difference between peace 
and war economy. In the totalitarian system 
this difference is not recognized: after the 
struggle, as during the years immediately be- 
fore, a war economy is to be maintained. The 
limitless servitudes which war places on the 
productive apparatus and the workers of the 
nation are to be perpetuated after the conflict 
is ended. And upon this tottering and unstable 
structure a community of nations is to be reared, 
by which arrangement all wars are to end. No 
theory could be more false. It reveals the great 
hazards which those states are running in sacri- 
ficing so much of the manhood of the nation 
and material wealth in an attempt to establish 
arbitrary control over millions of people on 
principles which from the beginning are doomed 
to failure. 

It may be feasible, as has been recently dem- 
onstrated, to establish and maintain autarchic 
systems of economy within the national bor- 
ders and to subordinate trade with other nations 
in a scheme which serves the general plan of 
attaining self-suiBciency ; but to attempt to cre- 
ate by force a permanent international entity 
on this model is to ignore the fundamental prin- 
ciples which govern human activity and the 
relations between nations. There can be no op- 
portunity, so long as such a regime is main- 
tained, to bring about an adjustment of eco- 
nomic and trade conditions with the rest of the 
world. The aim of peaceful industrial develop- 
ment would be frustrated and defeated by the 
conditions under which industrj- and labor 
would function. A system set up by force could 
only be maintained by force. There are no 
spheres of influence which by right of conquest 
or by the application of force belong to any 
great power or group of powers. To lay vio- 



lent claims to such spheres of influence, to over- 
throw the legal governments of the encompassed 
nations, and to regunent industrial and pro- 
ductive activity by force is to negate and de- 
stroy the necessary processes by which wealth 
can be created and prosperity established. This 
is not only the judgment of history but an ele- 
mental truth easily apparent to all. 

Besides, the force which from within sets up 
and maintains an unsocial and uneconomic 
order of this nature must also defend it from 
without. All those who escape subjection and 
who do not participate on a voluntary basis, 
refusing to accept the dictates of intercourse 
and trade, will find there are no laws to protect 
their rights and no appeal except to the arbi- 
trament of arms. No nation, however great 
and powerful, could escape this choice. This 
we must bear in mind. 

The outcome of international conflicts has 
always been grave. Great battles have changed 
the course of history and altered the destinies 
of nations. But, in the eras of peace that have 
followed, the universal struggle for freedom 
and civilization has gone on. Men have tri- 
umphed even over wais in the common aspira- 
tion to advance humanity and the general cause 
of mankind. The temper of the present strug- 
gle, with its origins in an opposing view of life, 
promises no such aftermath for a wearied and 
torn world if the threatened new order prevails. 

It is clear to what extent the economic and 
financial equilibrium of the world can be gravely 
disturbed by the defection of one or two im- 
portant nations. During the five or six years 
preceding the present conflict, international 
trade in all quarters of the world began to de- 
teriorate under the impact of the policies 
adopted by the totalitarian stat€S. As we all 
know, few of the devices used by the totalitarian 
states failed to have a far-reaching and imme- 
diate effect upon the trade of most coimtries in- 
cluding that of the United States. In the earlier 
stages of the process, when arbitrary measures 
were being invented and extended as rapidly as 
possible, foreign-exchange control reduced the 
volume of American exports. Subsequently, 



OCTOBER 25, 1941 



323 



quantitative regulations, in the form of import 
quotas, reduced to almost nothing the major ex- 
ports from this country, destroying a commerce 
built up through many years of patient labor 
and employment of capital. The situation was 
further aggi'avated by the use of multiple cur- 
rencies, trading monopolies, exclusive trade ar- 
rangements with other states, the bilateral bal- 
ancing of ti'ade, and the consunmiation of barter 
deals. It became clear to those who closely ob- 
served the working of these devices that the 
aims were not economic but political. A de- 
scription of this process was sketched by Mr. 
Welles, the Under Secretary of State, in his 
recent address before the National Foreign 
Trade Council in New York, when he said: 

"Obviously the totalitarian governments then 
being set up seized avidly on the opportunity so 
afforded to undertake political pressures 
through the exercise of this form of commercial 
policy. 

"They substituted coercion for negotiation — 
'persuaded', with a blackjack. The countries 
thus victimized were forced to spend the pro- 
ceeds of their exports in the countries where 
such proceeds were blocked, no matter how in- 
ferior the quality, how high the price, or even 
what the nature might be of the goods which 
they were thus forced to obtain. They were pre- 
vented by such arrangements from entering into 
beneficial trade agreements with countries un- 
willing to sanction discriminations against their 
exports. By no means the least of the victims 
were the exporters of third countries, including 
the United States, who were either shut out of 
foreign markets entirely or else only permitted 
to participate on unequal terms. 

"This time our own export trade, unsupported 
by foreign lending on the part of American in- 
vestors and unprotected against countless new- 
trade barriers and discriminations, was im- 
mediately disastrously affected. Belatedly we 
recognized our mistake. We realized that some- 
thing had to be done to save our export trade 
from complete destruction.'* 

This was the situation before the present 
struggle, when the arbitrary commercial prac- 



tices of one or two nations were sufficiently 
grave to jeopardize the whole structure of inter- 
national commercial intercourse. From these 
facts we may view with gravest apprehension 
the deadly paralysis which would extend over 
the whole world if 15 or 16 countries comprising 
the whole mainland of the Continent of Europe 
were submerged into a single militant economic 
bloc imder the control of the same arbitrary and 
ruthless forces for the purpose of carrying on 
indefinitely a commercial conflict with the rest 
of the nations of the earth. It is primarily this 
threat to our security and to our whole range of 
world commerce which above all other consid- 
erations gives urgency to the maintenance of the 
freedom of the seas. As long as the seas remain 
open to our commerce we shall be a power in the 
world ; and with friendly nations we shall have 
a part in shaping its destiny. 

While the prospects which lie immediately 
ahead are grim and call for the united effort of 
the Nation in a mighty program of defense of 
our own interests and those of our friends, we 
can take courage in the assurance that our goal 
is the re-establislmient of a proper world order. 
In the long-range view of the course of civiliza- 
tion, the conduct of nations, like that of in- 
dividuals, involves a grave responsibility. Of 
that responsibility our own traditions and his- 
tory bear witness. 

In our dealings with other nations, particu- 
larly in the field of foreign trade, the United 
States had adopted a new policy, which was in- 
augtirated with the Trade Agreements Act of 
1934, under the leadership of the Secretary of 
State. The beneficial effects which the recipro- 
cal-trade treaties have brought not only to the 
United States but to all the countries which 
have participated are familiar. At this time, 
when not only the disappearance of most of our 
trade with Europe but the exigencies of a com- 
mon defense effort are affecting the normal flow 
of coramerce, we are continuing to place our 
trade with other countries on tlie "most favored 
nation basis", thereby proclaiming to the world 
our unshakeable confidence in the survival of 
international trade in accordance with prin- 
ciples of justice and fair-dealing. The function 



324 



DEPARTMENT OF STATE BULLETESr 



of foreign trade for the duration of the emer- 
gency is to meet the total demands which the 
present situation makes imperative. We have 
to build up the reserves of those materials and 
commodities which are needed in defense, pro- 
vide those countries resisting aggression with 
necessary equipment and supplies, furnish our 
friends, particularly the nations in this hemi- 
sphere, with needed goods, and carry on, as far 
as that is possible, our normal export and im- 
port trade with other countries. 

It is preeminently in tlie realm of foreign 
trade, indeed, through the complete emancipa- 
tion of international commerce that the nations 
of the world will return, in the succeeding years 
of peace, to political and economic friendly col- 
laboration. The present conflict was preceded 
by a steady deterioration in the world's ex- 
change of goods and services, a sure indication 
of an approaching crisis. The end of the con- 
flict will mark a revival of international trade 
in which this country, with other nations whose 
ideals are identical with ours, is well prepared 
to lead. When the time comes to draw the na- 
tions of the world together in council and re- 
build the structure of international collabora- 
tion and peace, it may be fervently hoped that 
part of the main framework established will be 
that of enlightened systems in the conduct of 
foreign trade. That policy has been pro- 
claimed to the world and for seven years steadily 
advanced by the Secretary of State. It is a 



momentous fact that while the world is under- 
going the most profound upheaval in its history 
and the course of international trade is being 
impeded and disrupted, the United States and 
Argentina have been able, by an act of con- 
structive mutual benefit, to oppose the present 
deteriorating factors and establish the com- 
mercial intercourse between the two countries 
on a sound and equitable basis. The Govern- 
ment's determination to follow this course points 
tlie way to the labors of reconstruction in the 
future. 

The President, on the occasion of the signing 
of the trade agreement between the United 
States and Argentina, sent a message to the 
Vice President of that country, which reads in 
part : 

"The representatives of our two nations who 
have cooperated in the negotiation of this agree- 
ment are to be congratulated on this achieve- 
ment in the cause of liberal principles of inter- 
national trade conducted on the basis of fair 
dealing, equality of treatment, and mutual 
benefit. It is an outstanding contribution to 
the economic welfare of our two countries and 
to the reconstruction of peaceful and ])rofitable 
trade in the Americas and throughout the world. 

"In the years to come we shall look back upon 
the trade agreement signed today as a monu- 
ment to the ways of peace, standing in sharp 
and proud relief upon a desolate plain of war 
and destruction." 



INTER-AMERICAN COFFEE BOARD 



The following statement was released by the 
Inter- American Coffee Board on October 23 : 

"The Inter-American Coffee Board has care- 
fully studied the operation of the Inter-Amer- 
ican Coffee Agreement, and as a result of this 
study has arrived at certain conclusions which, 
it is believed, will contribute materially to the 
successful operation of the Agreement in the 
future. Specifically, the Board expresses the 
unanimous opinion of all the delegates to the 
effect that the future success of the Inter- 
American Coffee Agreement is assured by the 



understanding which has been reached on the 
following points. 

"Certain producing countries have deemed it 
necessary or desirable, as a measure of internal 
administration, to establish or maintain mini- 
mum prices in order to secure for coffee produc- 
ers the full benefits of the Inter- American Coffee 
Agreement. The Board believes that, as a mat- 
ter of policy which will facilitate the smooth 
operation and administration of the Agreement, 
any such minimiun prices which exist or wliich 
may be established in the future should not 



OCTOBER 25, 1941 



325 



be maintained or fixed at levels exceeding the 
market prices for coffee which would exist under 
the normal operation of the quota system in 
the absence of such minimum prices, nor should 
they prevent normal price fluctuations, nor dis- 
turb the normal and usual operation of the coffee 
trade. 

"The Inter-American Coffee Board likewise 
considers that those countries having adequate 
warehousing facilities in their respective ports 
of shipment should maintain in those ports 
stocks of coffee in quantities sufficient to satisfy 
the requirements of the market, in order to fa- 
cilitate the normal and usual operation of the 
coffee trade. 

"In view of the unanimous agreement which 
has been reached on the foregoing points, the 
Inter-American Coffee Board believes that the 
successful operation of the Inter-American Cof- 
fee Agreement is assured, and that there will be 
a normal and regular movement of coffee to the 
United States on terms fair to producers and 
consumers alike." 



The following resolutions of the Inter- Amer- 
ican Coffee Board were released on October 23 : 

"Whereas : 

"For the purposes of the Inter-American Cof- 
fee Agreement it is necessary to adjust the 
quotas for the United States market because 
of the special circumstances now existing ; 



"The Inter-AmeriOan Coffee Board 
"Resolves : 

"1. To adjust the quotas for the United 
States market, effective October 24, 1941, so that 
the quotas for the said market from that date 
shall be 110% of the basic quotas. 

"2. To communicate this resolution to the 
Governments participating in the Inter-Amer- 
ican Coffee Agreement." 



"Whereas : 

"It is necessary to take advantage of all avail- 
able shipping facilities during the current quota 
year in order to avoid the fear of future short- 
age of coffee due to shipping difficulties; 

"The Inter- American Coffee Board 
"Resolves : 

"1. To authorize the participating producing 
countries, once they have exported the total 
amount of their respective quotas for the current 
quota year, to export to the United States before 
next September 30, to be charged to their re- 
spective quotas for the next quota year, an 
amount of coffee not to exceed 15 per cent of 
their respective basic quotas, on condition that 
the coffee so exported be warehoused under the 
supervision of the United States customs au- 
thorities so that it is not entered for consump- 
tion before October 1, 1942. 

"2. To communicate this resolution to the 
Governments of the countries participating in 
the Inter-American Coffee Agreement." 



THE INTERNATIONAL CUPBOARD 
ADDRESS BY WALLACE McCLURE ■ 



[Released to the press October 21] 

"Food", our Secretary of Agriculture tersely 
reiterates, "will win the war and write the 
peace." It would be difficult to find a more ex- 
pressive text than Mr. Wickard's words for a 
talk before the National Home Demonstration 
Council, an organization whose theme is the "op- 
portunities and responsibilities of rural women 
in the world today." It is, moreover, the per- 
fect interpreter of the subject you have assigned 
to me, "The International Cupboard". For un- 
less that piece of world furniture is to be laden 



only with empty cups, it connotes a storage 
place for food, and that presupposes production 



' Delivered under the auspices of the United States 
Liaison Committee of the Associated Country Women 
of the World at the annual meeting of the National 
Home Demonstration Council, Nashville, Tenn., Octo- 
ber 21, 1841. The Council, together with the National 
Master Farm Homemakers Guild, met at Nashville con- 
temporaneously with the United States Liaison Com- 
mittee of the Associated Country Women of the World. 

Dr. McQure is Assistant Chief of the Treaty Division, 
Department of State. 



326 



DEPARTMENT OF STATE BTTLLETIN 



calculated to keep it filled. Always the staff of 
life, food becomes more emphatically vital in 
those emergency periods of revolution, war, 
and the settlements after war, which so fre- 
quently interrupt the supposedly normal status 
of human affairs. In this seemingly most in- 
tense of all such periods, food assumes a role 
of correspondingly magnitudinous importance. 

It is no common privilege for me to discuss 
with you who are experts in the production of 
food some of the implications of that produc- 
tion in current and, more particularly, in near- 
future international policy and world events. 
It is delightful to be your guest for that pur- 
pose. I am reminded in this connection, of a 
dinner meeting of the Academy of Political 
Science which I attended some years ago at the 
Astor House in New York. The owner of 
that famous hostelry had recently come over 
from London and, being present, was asked to 
speak. "While I am your guest". Lord Astor 
remarked by way of introduction, "in a very 
real sense I am also your host." Similarly, as 
one of nearly three million Tennesseans, it is 
my privilege, though coming here directly from 
my work in Washington, to claim on this oc- 
casion the right to play host to all of you who 
have journeyed into Tennessee from other 
states. I deem it an honor to Tennessee and to 
its capital city that you have chosen this place 
for your assembly, and I have no doubt that 
from your deliberations will spring ideas that 
will be of value to the Associated Country 
Women of the World and to the governments 
that are leading us in the current struggle for 
the maintenance of life, liberty, and the pursuit 
of happiness. 

The over-all concern for Americans at the 
present time is that their function of maintain- 
ing the world's arsenal of democracy shall be 
faithfully performed. You who dwell upon 
the farms have shown by your performance 
this year, exceeding any previous year in all 
history, that your shoulder is to the wheel in the 
defense of freedom against aggression. You 
clearly indicate that just as the present has ex- 
ceeded the past, the future will surpass the 
present. 



From the point of view of the farmer in the 
United States, the cupboard has always been 
an international affair. That is because he has 
always made his living by helping to keep it 
filled internationally as well as nationally. The 
first of the wars in which he has been engaged — 
that of revolution and independence — was 
fought in large, perhaps preponderating, part 
for freedom to keep on keeping that cupboard 
filled through the processes of international 
trade. His periods of prosperity have always 
coincided with periods of expanding interna- 
tional trade and have been inextricably inter- 
twined therewith. His periods of adversity 
have, in reverse, followed policies which shut 
the door to trade, notably the policies respon- 
sible for those supreme blunders of American 
economic history, the tariff acts of 1921, 1922, 
and 1930. Such policies, notably those in- 
voked following the last preceding of his coun- 
try's wars 20 and more years ago, have pre- 
vented his sharing in due measure the years of 
relative plenty and assured his feeling in undue 
measure the stress of depression, which is al- 
ways a probable result of trade obstruction. 
They are, indeed, invariably a contributing 
cause of his periods of want. 

Therefore, you who are influential in formu- 
lating the demands which farmers make upon 
their government, will assuredly be ever on the 
alert to see that trade is fostered and that it is 
protected from those who through selfishness or 
ignorance might again invoke measures to 
diminish or destroy it. 

As you know, since the passage of the Trade 
Agreements Act in 1934, the policy of your Gov- 
ernment has been to seek reciprocity with other 
governments for the positive encouragement of 
trade through the elimination of excessive 
tariffs and other barriers and obstacles. This 
policy was admirably carried forward a week 
ago today when Argentina and the United 
States entered into a comprehensive pact which 
is to come provisionally into force on Novem- 
ber 15. Preceded by such agreements with 21 
other countries, including 11 American repub- 



OCTOBEK 26, 1941 



327 



lies, the agreement with Argentina has been 
greeted as of outstanding significance not only 
because of its general character of binding to- 
gether and unifying the economies of two lead- 
ing countries of this hemisphere in the present 
struggle through which they are endeavoring to 
circumvent Nazi aggression, but because it is 
also an instrument designed to assist in the re- 
construction that must follow war and help to 
stabilize the coming peace. It comes as a force- 
ful reminder of a lengthening series of impor- 
tant events that demonstrate inter-American 
solidarity and the will to build up the economic 
defense of the Western World. 

"Close cooperation between Argentina and the 
United States", as Secretary Hull said on the 
occasion of the signing of the trade agreement, 
■'is especially important at a time when the very 
existence of the nations of this hemisphere may 
depend upon presenting a united front to the 
forces of aggression." "In the years to come", 
President Koosevelt added, "we shall look back 
upon the trade agi'eement signed today as a 
monument to the ways of peace, standing in 
sharp and proud relief upon a desolate plain 
of war and destruction." 

II 

Thus the agreement of October 14 with Ar- 
gentina pointedly illustrates the two-fold aspect 
of what must be uppermost in the mind of every 
thinking citizen, from whatever part of the 
globe he comes: the consummation of the war 
and the reconstruction of the world, to both of 
which it makes a contribution. That contribu- 
tion is demonstrably specific and direct from 
the point of view of the common food supply 
to which the people of all nations must look 
cooperatively for life itself as destruction gains 
upon production and barren years loom omi- 
nously throughout the widening areas of 
battle. 

The United States Department of Agricul- 
ture has long been giving the most careful and 
intelligent study to the entire matter. After 
years of surpluses of food which could not be 
profitably sold, the prospect of inability to sup- 
ply the crying needs of those who have com- 



bined their forces against the aggressor presents 
a strange and novel picture. The same scrupu- 
lously painstaking approach which alleviated 
much of the loss attendant upon the former 
maladjustment between supply and demand is 
now brought to bear upon the broadening gulf 
between demand and supply. 

True, in this country, cotton, wheat, and to- 
bacco continue plentiful beyond all calculations 
of need and the call resounds to turn large por- 
tions of their accustomed acreage and energy to 
the increase of meat, poultry, and dairy prod- 
ucts. The American cotton farmer has, indeed, 
as Nashville, one of the gateways to the South, 
is keenly aware, presented us with more than 
10 million bales on hand before beginning to 
harvest this year's crop. My fellow Tennes- 
seans of the neighboring community of Clarks- 
ville know better than almost anyone else how 
ample is the national stockpile of accumulated 
tobacco. Wlieat farmers throughout the widely 
scattered areas of its abundance may take pride 
in the fact that their production is two years 
ahead of schedule. 

Taking courage now, instead of the erstwhile 
alarm, from these manifestations of the national 
agricultural ability to produce abundantly, those 
of you who help to plan for next year's output 
of the farms are giving thoughtful considera- 
tion to the fact that estimates have been prepared 
at Washington indicating very clearly the re- 
quirements of the United States and of the 
peoples who are fighting to preserve democracy 
as the basis of government in the world. They 
expect us to produce more than ever before. 
Meanwhile, safeguards against price decline be- 
cause of plenty have been erected by legislation. 
Just as in the case of the stated basic commod- 
ities, cotton, corn, wheat, tobacco, and rice, you 
are guaranteed that the price will not drop 
below 85% parity, so in the case of those partic- 
ular commodities found to be necessary in larger 
quantities for the use of aU of us who are striv- 
ing to prevent a Nazi conquest of the world, 
similar assurances, over and above the price- 
sustaining demand of war, have been given you 
by your Govermnent against serious damage 
should prices, for whatever reason, at some fu- 



328 

ture time decline. Every sentiment alike of 
national self-preservation, patriotism, and en- 
lightened self-interest accordingly calls to the 
farmers of the United States to heap the inter- 
national cupboard to overflowing in the coming 
year 1942. 

The Secretary of Agriculture has put into 
execution the congressional act of July 1, 1941, 
which provides that, "whenever during the 
existing emergency" he "finds it necessary to en- 
courage the expansion of production of any non- 
basic agricultural commodity", he "shall make 
public announcement" of the fact and shall so 
use available funds, "as to support a price for 
the producers" to the same extent as in the case 
of the basic commodities. Already such public 
notice has been given that expansion is required 
in the production of hogs, eggs, evaporated milk, 
dry skim milk, cheese, and chickens. Others 
may follow. Meanwhile, surpluses of such ne- 
cessities as lard and raisins have disappeared and 
the natural war-time need, expressed in general 
terms as demand for milk, eggs, and meat, 
mounts continuously. 

Ill 

This is not a problem for the United States 
farmer alone but for the farmers of the Amer- 
icas in particular, and in general for all farmers 
who would like to see the world better clothed 
and better nourished despite war and the de- 
structive forces of greed and lust for power. 
Fortunately, well-conceived programs of coop- 
eration within the American neighborhood and 
with those peoples who face the common enemy 
on numerous battlefronts are already in use 
and will multiply. Mention is particularly due 
to the work of the Inter-American Financial 
and Economic Advisory Conmiittee and to the 
measures it has already made effective. As an 
example of definite and realistic will to cooper- 
ate, the trade agreement with Argentina, con- 
sidered in the midst of world chaos, and fol- 
lowing pre-war agreements of similar character 
entered into with a dozen other American coun- 
tries, Brazil, Canada, Colombia, Costa Rica, 
Cuba, Dominican Republic, El Salvador, Guate- 
mala, Haiti, Honduras, Nicaragua, and Vene- 



DEPARTMENT OF STATE BTTLLETIN 

zuela, while others are in process of negotiation, 
stands out with respect to specific provisions as 
well as an expression of Pan American coopera- 
tion. Through it the farmers of the two coun- 
tries and also the other producers can more 
readily cooperate to fulfil the common demand 
for food. For instance, this agreement makes 
it easier to supply the United States needs for 
canned corned beef and to use this nutritious 
food to build up stockpiles that can be pre- 
served wherever located. United States farm- 
ers are not in a position to produce enough of 
it to fulfil even normal needs. Secretary "VVick- 
ard has given the country a graphic picture of 
how vital it is to have an abundance of food al- 
ways on hand in undergi-oimd storage in Eng- 
land against the peril of air raids, that those 
whose homes have been destroyed and those 
who fight the fires and endeavor to rescue the 
victims may be adequately nourished and their 
morale fully sustained. No source of supplies 
to help the co-defenders of democracy should 
be neglected or delayed. 

But it is not to be thought that, in sending 
their canned beef to this country, Argentine 
farmers are being asked to give it away for 
dumping on the North American shores. 
Trade is give and take, not just give and not 
just take. 

True, in those parlous years of the twenties, 
when people thought themselves so prosperous, 
but which historians will find to have been dis- 
tinguished chiefly for their economic errors, a 
good many people in the United States acted 
on the idea that one country can prosper by 
giving away its substance to another country 
without taking anything in return. You know 
the story and regard it as comical or doleful in 
accordance with your way of viewing such phe- 
nomena. Billions of dollars' worth of farm 
products were sent to Europe. The United 
States farmer was, indeed, given the market 
price, such as it was, but the American investor 
loaned the European purchaser the money 
wherewith to pay the American farmer and, 
since the country, deluded as it was by the no- 
tions then prevailing, refused to permit the 
transactions by which alone the investor could 



OCTOBER 2 5, 1941 



329 



collect his due, he was left holding the bag and 
it soon became obvious, especially as concerned 
intergovernmental debts, that billions then 
owing would never be paid, that in effect billions 
of useful goods had been presented by the people 
of this country to the peoples of other countries. 
Of course domestic purchasing power for the 
farmers' goods declined, and in the end the 
farmer paid his share in the country's prodigal- 
ity. In this connection it may be not irrelevant 
to point out, as has a former official of the 
United States Tariff Commission, in a useful 
little book published this year,^ that one advan- 
tage which the Germans maintain in competi- 
tion with the United States for Latin American 
trade grows out of the fact that they have no 
fear of imports. 

No one expects our neighbors in Argentina to 
make us free-will offerings of canned beef. 
They rightly expect to be paid and their govern- 
ment, as a part of the agreement, has sensibly 
made it easier for us to pay them, by reducing 
the Argentine import barriers affecting, to take 
a single instance, several kinds of fruits, which 
are needed there and produced here in quanti- 
ties larger than are needed. So in order to get 
the beef that we need we must be sure to pro- 
duce the apples that are needed in Argentina. 

Of course, the beef can also be paid for with 
manufactured goods, and such contingency is 
provided for in the agreement. In that event, 
more people in this country will have to put 
their time and effort into creating such goods as 
automatic refrigerators for the Argentineans. 
If that is done there will be more demand right 
here at home for products of the farms. Speak- 
ing here in Tennessee about three weeks ago, 
Secretary Wickard, himself an Indiana fanner, 
very neatly remarked: "I never had much 
trouble making a living farming while factories 
were busy. My troubles — and the troubles of 
other farmers too — came when people were walk- 
ing the streets looking for work." ^ 



'Bidwell, Percy W., Economic Defense of Latin 
America (Boston, World Peace Foundation, 1941), p. 46. 

^"The South and Food for Freedom", Congressional 
Record, October 2, 1941, p. A4742. 



IV 

"Looking for work!" Upon this jutting 
rock, where national economic ships of state 
have met such infinitely cruel and destructive 
shipwreck, we of this generation have surely 
erected a lighthouse that shall shine for all time 
to come. It will be needed. We will, with the 
help of favoring nature, supply the economic 
requirements of war, and we have faith that in 
the end our efforts will be rewarded with vic- 
tory. But what of the morrow after war ? We 
know that humanity failed 20 years ago and 
paid for its failure in world depression and re- 
lapse into world war. Are we sure that, even 
yet, we have learned enough to steer a true 
course and avoid the reefs and eddies that 
within the memory of most of us here present 
turned world-war democratic victory into 
world-wide defeat for victor and vanquished 
alike? 

Let us take care and not take chances. We 
believe we know that at the heart of all economic 
failure is the wastage of human resources 
through failure to be sure that everyone's 
energy is productive. Therefore, facing the 
problems of reconstruction, as we must do, even 
though the battle rages with no sign of abate- 
ment, we feel reasonably sure that, if we can 
conquer unemployment, we can conquer want. 
If only we can keep production at the maxi- 
mum, the danger of depression fades away. 
Even the accumulating treasury debts that 
rightly cause concern to all of us in every period 
of war, can assuredly be handled if, through 
maximum production, we insure plenty for all. 
Even the greatest areas of physical destruction 
can in due time be restored if everyone is work- 
ing with a will to make it so. Even the cultural 
setback can in some measure be alleviated if 
there is abundance of material resources for a 
renaissance of learning. 

What can you do about it, you who are gath- 
ered here and who represent the agricultural 
producers of the world? 

The plans of the Department of Agriculture 
emphatically include the creation, with such 
speed as possible, of food stockpiles ready to 



330 



DEPARTMENT OF STATE BULLETIN 



meet the inevitable famine which large portions 
of the world will inevitably find waiting in the 
wake of war. If bereft peoples can promptly 
be supplied with food they can much more prob- 
ably go to work promptly, restoring normal 
economic life and creating better cities, better 
factories, better homes in place of those that 
have been destroyed. As they do so they can 
begin again to create goods that supply wide- 
spread normal needs and as they send such goods 
into the marketplaces they will not only de- 
mand there the goods that others produce but 
will have the means of paying for them. And 
so production will be stimulated by the knowl- 
edge that what is made can be exchanged for 
what is wanted. In these days of specialization 
even more than before, trade is the life-blood of 
the whole economic process. 

It follows that two lines of accomplishment, 
both calculated to prevent unemployment and 
so to circumvent the major factor in depression, 
are thus clearly opened before you: you can 
bend your efforts to the goal of abundant food 
for the whole world and you can use your in- 
fluence with your governments to the end that 
the channels of world trade be kept open. 
"Permit me to greet you in your role of promot- 
ers of international understanding and cooper- 
ation",' Secretary Hull said in welcoming to 
Washington the Associated Country Women of 
the World on the occasion of their third tri- 
ennial conference (1936). You can do nothing 
that will more substantially fulfil that role in 
the years to come than to nourish the post-war 
world and keep the necessaries and good things 
of life moving generously in mutually profitable 
exchange. In other words, your function is 
to see that supplies are not only created but kept 
moving among the national cupboards that in 
the aggregate constitute the cupboard of the 
world. 

V 

At the same triennial conference, Vice 
President Wallace, then Secretary of Agricul- 



ture, opened his address with the following 
statement : 

"Since 1921 nearly every nation in the world 
has been seriously concerned with the situation 
of its farmers. Particularly since 1930, this 
concern has taken the form of direct govern- 
mental aid and intervention. The world-wide 
extent of this aid and intervention is seldom 
appreciated in the United States, nor are its 
consequences upon American tariff and farm 
policy widely imderstood. However, what is 
perhaps more to the point on this occasion is 
the fact that these policies of individual nations 
do not seem to add up to any solution of agri- 
cultural problems which are world-wide in 
scope." * 

As you proceed with your program of keep- 
ing the international cupboard filled and as 
you study the programs of the several govern- 
ments, those of you who are members of the 
United States Liaison Committee of the Asso- 
ciated Count i-y Women of the World will doubt- 
less find occasion to suggest ways of promoting 
international imderstanding and cooperation 
to the end that the efforts of the nations may be 
made to pull together. Since 1936 much prog- 
ress has indeed been made. Not only have we 
created the emergency machinery of coopera- 
tive defense among the peoples fighting against 
Hitler's methods of forcing a new order upon 
the world at the sword's point, but we have 
continued and increased the use of international 
machinery intended to meet the needs of orderly 
development. To take an example. Secretary 
Wallace observed, in the address just quoted: 

"The International Wheat Conference, which 
has held meetings from time to time since June 
of 1933, . . . has focused the attention of agri- 
cultural leaders in many countries on the world- 
wide nature of the wheat problem and on how it 
is that wheat farmers in one country may be 
harmed by governmental action in another. 
Slowly we are lifting our eyes to the world. 
Progress is slow, but we should not be 
pessimistic." " 



' The Associated Country Women of the World: Pro- 
ceedings of the Third Triennial Conference (Washlng- 
toa: Government Printing Office, 1937), p. 206. 



' Ibid., p. 214. 
'Ibid., p. 216, 



331 



Slowly also, but persistently, the Wlieat Con- 
ference, which reconvened again at Washing- 
ton on October 14 after recess since August 3, 
tries to fulfil its mission. Said the Under 
Secretary of State of its work, speaking at the 
world-trade dinner of the Twenty-eighth Na- 
tional Foreign-Trade Convention, October 7: 

"... In planning commodity agreements 
for stabilizing prices of basic commodities, such 
as the wheat agreement now under considera- 
tion by several of the producing countries di- 
rectly concerned, . . . unusual post-war needs 
must be kept in mind in order that adequate 
supplies may be available to meet them." 

In closing his address Mr. Welles pertinently re- 
ferred to "the realization, so painfully forced 
on us by the experiences of the past and of the 
present, that in the long run no nation can 
prosper b}- itself or at the expense of others, and 
that no nation can live unto itself alone." Mrs. 
Roosevelt, in happy and consistent phrase, had 
reminded your triennial conference that "the 
rural women of America, as well as those of 
other nations, are learning that living in this 
modern world must be a cooperative venture." * 

VI 

If the tragic events that are etclied most 
deeply upon the minds and consciences of us who 
had reached maturity in time to remember the 
first World War and the cataclysmic errors in 
which all nations shared when they attempted 
a reconstruction after it (errors in which the 
economic held a large and an unworthy place) 
have taught us anything at all, we surely now 
know that Maginot lines will not achieve safety 
and that isolationism can produce neither pros- 
perity nor peace. But, as Mr. Welles warned 
in his address above-quoted, 

"... In the economic field especially there is 
danger that special interests and pressure gi-oups 
in this country and elsewhere will once again 
selfishly and blindly seek preferences for them- 
selves and discriminations against others." 



'Ibid., p. 211. 



To thwart this evil I suggest that you have 
important safeguarding work to do because you, 
perhajDS better than any other people anywhere, 
know how vital it is to think in terms of the 
M-ider interests that prosper only under a regime 
of equality and reciprocity. You know that the 
pi'evalence of narrow special interests makes 
cooperation impossible and instead starts the 
forces moving that lead to the wastage of re- 
sources, to depression, to war. Many of you 
have seen the carefully wrought plans of dis- 
interested workers for the public welfare come 
to naught through such means. You have wit- 
nessed the frustration of the efforts of the Insti- 
tute of Agi'iculture and of the League of Nations 
through local and national unenlightened self- 
seeking. You will strive to the uttermost to 
withstand such influences in the post-war world 
and in so doing will save those guilty of such 
practices no less than the remainder of mankind. 

Similarly, you will bear ever in mind the ne- 
cessity of non-discrimination in matters of eco- 
nomic welfare as between peoples who may be 
accounted losers and peoples who may be ac- 
counted winners of the war. There is nothing- 
finer (or wiser) in the Charter of the Atlantic 
than the pledge that the parties will endeavor to 
further "the enjoyment by all States, gi-eat or 
small, victor or vanquished, of access, on equal 
terms, to the trade and to the raw materials of 
the world which are needed for their economic 
prosperity." Such policy is in accord with na- 
ture, whose rain falleth equally upon the just 
and the unjust. It may be thought of as voic- 
ing the counsel of perhaps the gi-eatest woman 
lawgiver ever pictured for our admiration : 

"... earthly power doth then show likest 
God's, when mercy seasons justice." 

VII 

You will not forget that conamerce furnishes 
the most reliable of all the avenues of economic 
cooperation, national and international. As 
President Roosevelt recently remarked, "the 
character of international trade relations which 
will become established in the post-war world 
will be of the utmost importance" in determin- 



332 



DEPARTMENT OF STATE BULLETIN 



ing whether we can build a world in which 
present dangers shall not recur. 

The welfare of the United States no less than 
that of its world neighbors will unquestionably 
best be served if, immediately and continuingly, 
the years following the war constitute an era of 
encouraging production through reasonably un- 
fettered trade. There must be no let-down from 
war-time efforts when an armistice is signed. 
Tlie emergency will then be greater, not less, 
than before. Then, even as now but if possible 
even more intensively, it will be true that only 
by production and more production, but always 
well-directed production measured coopera- 
tively to human needs, can we liquidate the 
financial strains of war, circumvent the ever 
grim specter of unemployment, and make cer- 
tain that the international cupboard will never 
be bare. 

You who foster the science of nutrition and 
dietetics, as well as help to direct the most basic 



and essential of all industries, that of the pro- 
duction of food, will remember that you have 
correspondingly fimdamental and vital oppor- 
tunities and responsibilities anent the character 
of the coming peace as well as for the prosecu- 
tion of the current war. Your help can count in 
impressive measure toward avoidance of the un- 
speakable errors of the past, toward assurance 
that the reconstruction after this war shall 
emanate from the brains, not from the passions, 
of mankind. 

Our discourse this evening started with wise 
and hopeful words chosen from the sagacious 
counsel, expressed in meaningful language of 
rare simplicity and force, which Secretary 
Wickard has given us in recent weeks. We may 
well conclude with an admonition from his Sep- 
tember twenty -ninth address at Memphis: 

"This time let's not only win the war, let's win 
the peace too." ^ 



Cultural Relations 



INTER-AMERICAN TRADE-SCHOLARSHIP PROGRAM 



The Coordinator of Inter-American AflFairs 
announced on October 24 the establishment of 
an inter-American trade-scholarship program 
under which qualified young men from the 
other American republics will be brought to the 
United States for vocational training. The 
Department of State is coopei'ating in organiz- 
ing and administering this plan. 

Trainees brought to this country under the 
plan will be assigned to representative United 
States concerns engaged in teclmical, engineer- 
ing, scientific, economic, commercial, industrial, 
or agricultural pursuits. They must be citizens 
of the American republics, at least 18 and not 
over 28 years of age, and should have a technical 
background or special aptitude in the fields they 
intend to study and a working knowledge of 
the English language. Scholarships will be 
awarded on a merit basis, and selection will be 
made with regard to vacancies or opportunities 



for training in jjarticular concerns in the United 
States. 

The initial group of approved candidates will 
be 20 in number, one from each of the other 
American republics, as far as convenient. The 
scholarships will be for periods varying from 
one to two years, depending upon the type of 
training and the field of study. 

Trainees under this program will be placed 
in organizations on an equal basis with United 
States trainees. They will do manual "overall" 
work rather than "white collar" jobs. They 
will apply themselves to the job of learning the 
business to which they are assigned, and they 
will receive compensation under the same ar- 
rangement as United States trainees studying in 
the same plants. An orientation course will 
start the training period to give the selectees a 



' "The South and Food for Freedom", Congressional 
Record, October 2, IMl, p. A4742. 



333 



background in technical English, United States 
methods, and for field trips. 

The purpose of the scholarship is to bring to 
industrial and commercial North America a 
first-hand picture of the opportunities in and 
problems of the 20 other American republics 
and to give future industrialists of those repub- 
lics an intimate insight into North American 
methods, standards, and techniques. 

An important function of the trade scholar- 
ship will be to assist in programs now being 
carried on, or to be started in the future, by 
agencies throughout the Americas. United 
States Government departments, private organ- 
izations, and companies have been training stu- 



dents from the southern republics for a number 
of years. The new Government scholarship 
will be achninistered as a supplement to and in 
cooperation with existing plans. 

The administration of the program will be 
in the hands of an executive administrator and 
a director. Trainee-selection committees are 
being named in each of the 20 other American 
republics for the purpose of selecting panels of 
candidates for consideration. A trainee-place- 
ment committee will operate in close coopera- 
tion with a placement advisory committee in the 
United States and will assign candidates to 
concerns where they will receive the most 
effective training. 



International Conferences, Commissions, Etc. 



CONFERENCE OF THE INTERNATIONAL LABOR ORGANIZATION 



[Released to the press October 2-1] 

A conference of the International Labor Or- 
ganization, of which this Government is a mem- 
ber, will be held in New York, N. Y., from Oc- 
tober 27 to November 5, 1941. 

The President has approved the following 
delegation to represent the United States at the 
meeting : 

Delegates 1or the Ooremment 

The Honorable Frances Perkins, Secretary of Labor, 
Washington, D. C. 

The Honorable Adolf A. Berle, Jr., Assistant Sec- 
retary of State, Washington, D. C. 

Alternate Delepates tor the Government 
Mr. Carter Goodrich, United States Labor Commis- 
sioner at Geneva and Chairman of the Governing 
Body of the International Labor OiEce, Professor 
of Economics, Columbia University, Nev? Tork, 
N. Y. 
Miss Frieda S. Miller, Industrial Commissioner, 
Nevy York State Department of Labor, New York, 
N. Y. 

Advisers to the Oovei-nment Delegates 

The Honorable Daniel W. Tracy, First Assistant Sec- 
retary of Labor, Washington, D. C. 

Mrs. Clara M. Beyer, Assistant Director, Division of 
Labor Standards, Department of Labor, Washing- 
ton, D. C. 



Mr. A. Ford Hinrichs, Acting Commissioner, Bureau 
of Labor Statistics, Department of Labor, Wash- 
ington, D. C. 

Mr. Thomas C. O'Brien, Boston, Mass. 

Mr. Theodore C. Achilles, Foreign Service Officer, 
Department of State, Washington, D. C. 
Delegate for the Employers 

Mr. Henry I. Harriman, Chairman of the Board, New 
England Power Association, Boston, Mass. 
Advisers to the Employers' Delegate 

Mr. Clarence McDavitt, Retired Vice President of 
the New England Telephone and Telegraph Com- 
pany, Newtonville, Mass. 

Mr. Albert W. Hawkes, President, Chamber of Com- 
merce of the United States, Washington, D. C. 
Substitute Advisers to the Employers' Delegate 

Mr. Edward R. Stettinius, Jr., former Chairman of 
United States Steel Corporation, New York, N. Y. 

Mr. Carl Adams, President, Air Reduction Corpora- 
tion, New York, N. Y. 

Mr. Arthur Paul, Dexdale Hosiery Mills, Lansdale, 
Pa. 
Delegate for the Workers 

Mr. Robert J. Watt, American Federation of Labor, 
Washington, D. C. 

Adi>isers to the Workers' Delegate 

Mr. George Meany, Secretary-Treasurer, American 

Federation of Labor, Washington, D. C. 
Mr. Frank Grille, Secretary-Treasurer, United Rubber 

Workers of America, Akron, Ohio 



334 



DEPARTIVIENT OF STATE BULLETIN 



Substitute Advisers to the Workers' Delegate 
Mr. George Harrison, President, Brotherhood of Rail- 
way Clerks, Cincinnati, Ohio 
Miss Dorothy J. Bellanca, Member, General Executive 
Board, Amalgamated Clothing AVorkers of America, 
New York, N. Y. 
Seeretary of the Delegation 
Mr. John S. Gambs, Associate Professor of Public 
Welfare Administration, Louisiana State Univer- 
sity, Baton Rouge, La. 



The Department 



APPOINTMENT OF OFFICERS 

Mr. George H. Winters, a Foreign Service 
officer of class V, has been designated an Assist- 
ant Chief of the Division of the American Re- 
publics, effective October 15, 1941 (Depart- 
mental Order 986). 

Mr. John S. Hooker has been designated an 
Assistant Executive Secretary of the Board of 
Economic Operations, effective October 20, 1941 
(Departmental Order 988). 



The Foreign Service 



PERSONNEL CHANGES 

[Released to the press October 25] 

The following changes have occurred in the 
American Foreign Service since October 17, 
1941: 

Caeeee Officers 

Coert du Bois, of San Francisco, Calif., Con- 
sul General at Habana, Cuba, has been assigned 
for duty in the Department of State. 

Eudolf E. Schoenfeld, of Washington, D. C, 
Counselor of Embassy near the Governments of 
Poland and Belgium and First Secretary of 
Legation near the Governments of Norway and 
the Netherlands now established in London, has, 
in addition, been designated First Secretary of 
Legation near the Government of Yugoslavia 
and near the Provisional Government of 



Czechoslovakia, now established in London. 

George R. Merrell, of St. Louis, Mo., Consul 
General at Calcutta, India, has been assigned, in 
addition to his assignment at Calcutta, as 
Consul General at Kabul, Afghanistan. 

Orsen N. Nielsen, of Beloit, Wis., First Sec- 
retary of Embassy at Berlin, Germany, has been 
assigned for duty in the Department of State. 

C. Porter Kuykendall, of Towanda, Pa., 
formerly Consul at Konigsberg, Germany, has 
been assigned as Consul at Karachi, India. 

George R. Canty, of Boston, Mass., formerly 
Consul at Amsterdam, Netherlands, has been 
designated Assistant Commercial Attache at the 
American Embassy, Buenos Aires, Argentina. 

Vinton Chapin, of Boston, Mass., Second Sec- 
retary of Legation at Dublin, Ireland, has been 
designated Second Secretary of Legation and 
Consul at Port-au-Prince, Haiti, and will serve 
in dual capacity. 

Harry L. Troutman, of Macon, Ga., now serv- 
ing in the Department of State, has been desig- 
nated Second Secretary of Embassy at Ankara, 
Turkey. 

Russell M. Brooks, of Salem, Oreg., Consul at 
Johannesburg, Transvaal, Union of South 
Africa, has been assigned as Consul at Casa- 
blanca, Morocco. 

Franklin C. Gowen, of Philadelphia, Pa., 
Second Secretary of Embassy near the Govern- 
ments of Poland and Belgium and Second Sec- 
retary of Legation near the Governments of 
Norway and the Netherlands, has, in addition, 
been designated Second Secretary of Legation 
near the Government of Yugoslavia and near 
the Provisional Government of Czechoslovakia, 
now established in London. 

W. Quincy Stanton, of Great Falls, Mont., 
Consul at Casablanca, Morocco, has been as- 
signed as Consul at Nairobi, Kenya, East 
Africa. 

William C. Affeld, of Minneapolis, Minn., 
Vice Consul at Caracas, Venezuela, has been 
designated Third Secretary of Legation and 
Vice Consul at San Salvador, El Salvador, and 
will serve in dual capacity. 



OCTOBER 2 5, 1941 



335 



H. Bartlett Wells, of North Plainfield, N.J., 
Vice Consul at Reykjavik, Iceland, has been 
designated Third Secretary of Legation at 
Reykjavik, Iceland, and will serve in dual 
capacity. 

Overton G. Ellis, Jr., of Tacoma, Wash., 
Third Secretary of Legation and Vice Consul 
at San Salvador, El Salvador, has been desig- 
nated Third Secretary of Legation at Guate- 
mala, Guatemala. 

Edward A. Dow, Jr., of Omaha, Nebr., 
formerly Vice Consul at Brussels, Belgium, has 
been designated Third Secretary of Legation 
and Vice Consul at Cairo, Egypt, and will serve 
in dual capacity. 

Robert J. Cavanaugh, of Rock Island, 111., 
Vice Consul at Montreal, Quebec, Canada, has 
been assigned as Vice Consul at Mexico, D.F., 
Mexico. 

Non-career Officers 

Peter K. Constan, of Boston, Mass., formerly 
Vice Consul at Belgrade, Yugoslavia, has been 
appointed Vice Consul at Alexandria, Egypt. 



Dwight Hightower, of Chicago, 111., has been 
appointed Vice Consul at Bogota, Colombia. 

William H. Bruns, of Washington, D.C., 
has been appointed Vice Consul at Panama, 
Panama. 

John F. Frank, of Milwaukee, Wis., has been 
appointed Vice Consul at Cartagena, Colombia. 



The nomination of Herschel V. Johnson to 
be Envoy Extraordinary and Minister Pleni- 
potentiary of the United States of America to 
Sweden was confirmed by the Senate on Oc- 
tober 21, 1941. Mr. Johnson, formei-ly a For- 
eign Service officer of class I, has been serving 
as Minister Counselor of the United States in 
London. 

NEW CONSULATE AT ANTIGUA 

[Released to the press October 22] 

An American Consulate is being established 
immediately at Antigua, Leeward Islands, 
British West Indies. 



Treaty Information 



Compiled in the Treaty Division 



SOVEREIGNTY 

Convention on the PR0^^sI0NAL Administra- 
tion OF European Colonies and Possessions 
in the Americas 

El Salvador 

The Director General of the Pan American 
Union informed the Secretary of State by a 
letter dated July 11, 1941 that the instrument 
of ratification by El Salvador of the Conven- 
tion on the Provisional Administration of 
European Colonies and Possessions in the 
Americas, signed at the Second Meeting of the 
Ministers of Foreign Affairs of the American 
Republics, Habana, July 30, 1940, was deposited 
with the Union on July 9, 1941. 



Act of Habana Concerning the Provisional 
Administration of Etjrofean Colonies and 
Possessions in the Americas 

Venezuela 

By a despatch dated October 8, 1941 the 
American Embassy at Caracas reported that 
the President of Venezuela on September 24, 
1941 ratified the Act of Habana Concerning the 
Provisional Administration of European Col- 
onies and Possessions in the Americas signed 
at the Second Meeting of the Ministei'S of For- 
eign Affairs of the American Republics, held 
at Habana July 21-30, 1940. 



336 



DEPARTMEKT OF STATE BULLETIN 



LEGAL ASSISTANCE 

Protocol on Unitokmity of Powers of Attor- 
ney Which Are To Be Uthjzed Abroad 

VeTiezv^la 

The American Embassy at Caracas reported 
by a despatch dated October 16, 1941 that the 
President of Venezuela had ratified the Protocol 
on Uniformity of Powers of Attorney Wliich 
Are To Be Utilized Abroad which was opened 
for signature at the Pan American Union on 
February 17, 1940. 

FLORA AND FAUNA 

Convention on Nature Protection and Wild- 
life Preservation in the Western Hemi- 
sphere 

Venezitela 

The American Embassy at Caracas reported 
by a despatch dated October 16, 1941 that the 
President of Venezuela had ratified the Con- 
vention on Nature Protection and Wildlife Pre- 
servation in the Western Hemisphere which was 
opened for signature at the Pan American Union 
on October 12, 1940. 

FISHERIES 

Con\t;ntion for the Preservation and Protec- 
tion OF Fur Seals 

[Released to the press October 24] 

As a result of the notice of abrogation dated 
October 23, 1940,^ given by the Government of 
Japan the convention of July 7, 1911 (Treaty 
Series 564), between the United States of Amer- 
ica, Great Britain, Canada, Japan, and the 
Union of Soviet Socialist Republics for the pre- 
servation and protection of fur seals has 
terminated. 

The convention entered into force on Decem- 
ber 15, 1911, and from that date pelagic sealing, 
that is, the killing, capturing, or pursuing in 
any manner whatsoever of fur seals at sea has 
been prohibited by the contracting parties to 
their citizens, subjects, and vessels in the waters 
of the North Pacific Ocean, north of the thirtieth 
parallel and including the Seas of Bering, Kam- 



^ See the Bulletin of November 9, 1940, p. 412. 



chatka, Okhotsk, and Japan. It has been es- 
timated that the seal herds have increased dur- 
ing the period of protection from about 125,000 
in 1911 to approximately 2,300,000 at the present 
time. 

In connection with the Japanese Govern- 
ment's notice of abrogation of the fur-seals con- 
vention, it was indicated to this Government by 
the Japanese Government that both direct and 
indirect damage is alleged to have been inflicted 
on the Japanese fishing industry by the increase 
of fur seals. 

The authorities of the Government of the 
United States are giving consideration to pos- 
sible procedures for preserving the beneficial 
effect of the convention and expect to take such 
steps as may be found practicable to protect the 
interests of the United States in the fur-seal herd 
of the Pribilof Islands. Toward this end, the 
Fish and Wildlife Service of the United States 
Department of the Interior has under prepara- 
tion an ocean survej' and study relative to the 
migi-atory and feeding habits of the fur seals 
of these islands. 

The views of this Government and the posi- 
tion which it maintains in respect to the return to 
pelagic sealing have been brought to the atten- 
tion of the Japanese Government and the other 
governments parties to the convention. It is 
the hope of this Government that pending the 
conclusion of a new agreement a temporary ar- 
rangement for the protection of the rights and 
interests of each of the present parties to the 
convention may be agreed upon. 

The American Ambassador at Tokyo reported, 
by a telegram dated October 23, 1941, that the 
following statement was issued by the Director 
of the Japanese Bureau of Fisheries : 

"The Fur Seals Convention concluded in 1911 
among Japan, United States, Great Britain and 
Russia, comes to an end as of today. In connec- 
tion with the termination of that convention, 
the competent authorities are carefully examin- 
ing the question of canceling or revising law 
number 21 of 1912, prohibiting the hunting of 
fur seals, policy concerning the taking of seals, 
and other relevant matters. Until decision shall 
have been reached with regard to these matters, 



OCTOBER 2 5, 1941 



337 



for internal purposes there will be no change 
and therefore as heretofore Japanese nationals 
will not be permitted to violate the law and other 
measures taken by the government. As already 
stated, no decision has been reached with regard 
to the future cancellation or revision of the law, 
but the competent authorities will absolutely for- 
bid any plan partaking of the character of a 
free enterprise. They wish to make it perfectly 
clear that operations hereafter will be carried 
on strictly in line with national policies." 

The Japanese authorities have indicated in- 
formally that it is not the intention of the Jap- 
anese Government to abandon the possibility 
of the regulation of the taking of fur seals by 
international agreement, and that there is no 
possibility of an enactment before April 1942 
of new Japanese legislation under which Jap- 
anese nationals might engage in pelagic sealing. 

COMMERCE 

Inter- American Coffee Agreement 

Under the heading "Commercial Policy" 
there appears in this Bulletin a statement issued 
by the Inter- American Coffee Board regarding 
the operation of the Inter-American Coffee 
Agreement, signed November 28, 1940 (Treaty 
Series 970). 



Publications 



Legislation 



Second Supplemental National Defense Appropria- 
tion Bill, 1942 — Defense Aid (Lend-Lease) Appropria- 
tions Included. (S. Kept. 721, 77tli Cong., 1st sess., on 
H.R. 5788.) 4 pp. 

Second Supplemental National Defense Appropriation 
Bill for 1942: Hearings Before the Subcommittee of 
the Committee on Appropriations, U. S. Senate, 77th 
Cong., 1st sess., on H.R. 5788, a Bill Making Supple- 
mental Appropriations for the National Defense for the 
Fiscal Tears Ending June 30, 1942, and June 30, 1943, 
and for Other Purposes. Part 1 : Defense Aid — Lend- 
Lease. iv, 166 pp. 

Modification of Neutrality Act of 1939. ( S. Kept. 764, 
77th Cong., 1st sess., on H. J. Res. 237.) 3 pp. 



Department of State 

Report of the Delegation of the United States of 
America to the Eighth International Conference of 
American States, Lima, Peru, December 9-27, 1938. 
Conference Series 50. Publication 1624. vi, 229 pp. 
350 (paper). 

Publications of the Department of State (a list 
cumulative from October 1, 1929). October 1, 1941. 
27 pp. Publication 1&18. Free. 

Advancement of Peace : Treaty Between the United 
States of America and Australia Amending in Their 
Application to Australia Certain Provisions of the 
Treaty for the Advancement of Peace Between the 
United States of America and Great Britain Signed 
September 15, 1914 — Signed at Washington September 
6, 1940 ; proclaimed by the President August 21, 1941. 
Treaty Series 974. 3 pp. 50. 

Advancement of Peace : Treaty Between the United 
States of America and New Zealand Amending in Their 
Application to New Zealand Certain Provisions of the 
Treaty for the Advancement of Peace Between the 
United States of America and Great Britain Signed 
September 15, 1914 — Signed at Washington September 
6, 1940 ; proclaimed by the President August 21, 1941. 
Treaty Series 976. 3 pp. 50. 



Regulations 



Controlling Certain Exports [requiring filing with 
Economic Defense Board of affidavit by exporter setting 
forth specific uses and showing past shipments of 
aconite leaves and roots ; aircraft pilot trainers ; 
atropine ; belladonna ; digitalis seeds ; industrial dia- 
monds ; iron ore ; mercury ; mica ; neatsfoot oil ; radium ; 
and uranium, other than salts and compounds]. 
October 18, 1941. (Economic Defense Board : Adminis- 
trative Order No. 2.) 6 Federal Register 5332. 

Primary Inspection and Detention : Amendment of 
Regulations Governing Use of Resident Aliens' Border- 
Crossing Identification Cards. October 17, 1941. (De- 
partment of Justice : Immigration and Naturalization 
Service, 1st supp. to General Order C-32.) 6 Federal 
Register 5362. 

Arrest and Deportation: Amendment of Regulations 
Governing the Arrest and Deportation of Aliens. 
October 22, 1941. (Department of Justice: Immigra- 



338 DEPARTMENT OF STATE BULLETIN 

tion and Naturalization Service, 1st supp. to General General Licenses Under Executive Order No. 8389, 

Order C-26.) 6 Federal Register 5463. April 10, 1940, as Amended, and Regulations Issued 

Export Control Schedule 23 [including, effective No- Pursuant Thereto [Relating to Transactions in Foreign 

vember 11, 1941, additional forms, conversions, and Exchange, Etc.] : [Amendments to General License 

derivatives of paper and manufactures]. October 24, Nos. 32, 33, and 72]. October 23, 1941. (Treasury 

1941. (Economic Defense Board.) Q Federal Register Department: Monetary Offices.) 6 Federal Register 

5468. 5467. 



d. S. SOVERNMFNT PRINTING OFFICE: 1941 



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PUBLISHED WEEKLY WITH THE APPBOVAL OF THE DIBECTOB OF THE BUEEA0 OF THE BUDGET 



->;. 



■1353,1 l^^o 

THE DEPARTMENT OF STATE 



BULL 



H 



"^ rm 



riN 



NOVEMBER 1, 1941 
Vol. V, No. 123— Publication 1657 



C 



ontents 




National Defense 

Navy and Total Defense Day: Address by the Presi- 
dent 

Office of Lend-Lease Administration 

American Republics 

Resignation of Josephus Daniels as Ambassador to 

Mexico 

Visit to Washington of Venezuelan Economic Mission: 

Statement by the Vice President 

Europe 

The National Reich's Church of Germany: Address by 
Assistant Secretary Berle 

The Near East 

Near Eastern Lecture Series: Message from the Secre- 
tary of State 

Commercial Policy 

Trade agreement with Argentina: 

Proclamation of the agreement 

Generalization of trade-agreement duties 

General 

New visa form 

Contributions for relief in belligerent countries .... 

Cultural Relations 

Advisory committee on art 

The Foreign Service 

Persomiel changes 

Publications 

Legislation 



Page 

341 
344 



345 
346 

347 

350 



351 
351 

352 
353 

353 

353 
354 
354 



1941 



National Defense 



NAVY AND TOTAL DEFENSE DAY 
ADDRESS BY THE PRESIDENT" 



[Released to the press by the White House October 27] 

Five months ago tonight I proclaimed to tlie 
American people the existence of a state of 
unlimited emergency.- 

Since then much has happened. Our Army 
and Navy are temporarily in Iceland in the de- 
fense of the Western Hemisphere. 

Hitler has attacked shipping in areas close 
to the Americas throughout the Atlantic. 

Many American-owned merchant ships have 
been sunk on the high seas. One American de- 
stroyer was attacked on September fourth. 
Another destroyer was attacked and hit on 
October seventeenth. Eleven brave and loyal 
men of our Navy were killed by the Nazis. 

We have wished to avoid shooting. But the 
shooting has started. And history has recorded 
who fired the first shot. In the long run, how- 
ever, all that will matter is who fired the last 
shot. 

America has been attacked. The U.S.S. 
Kearny is not just a Navy ship. She belongs 
to every man, woman, and child in this Nation. 

Illinois, Alabama, California, North Caro- 
lina, Ohio, Louisiana, Texas, Pennsylvania, 
Georgia, Arkansas, New York, Virginia — those 
are the home States of the honored dead and 
wounded of the Kearny. Hitler's torpedo was 
directed at every American, whether he lives on 
our seacoasts or in the iimermost part of the 
Nation, far from the seas and far from the guns 



' Delivered October 27, 1941. 
' Bulletin of May 31, 1941, p. 654. 
424545 — 41 1 



and tanks of the marching hordes of would-be 
conquerors of the world. 

The purpose of Hitler's attack was to frighten 
the American people off the high seas — to force 
us to make a trembling retreat. This is not the 
first time he has mit-judged the American spirit. 
That spirit is now ai'oused. 

If our national policy were to be dominated 
by the fear of shooting, then all of our ships 
and those of our sister republics would have to 
be tied up in home harbors. Our Navy would 
have to remain respectfully — abjectly — behind 
any line which Hitler might decree on any ocean 
as his own dictated version of his own war zone. 

Naturally we reject that absurd and insulting 
suggestion. We reject it because of our own 
self-interest, our own self-respect, and our own 
good faith. Freedom of the seas is now, as it 
has always been, the fundamental policy of this 
Government. 

Hitler has often protested that his plans for 
conquest do not extend across the Atlantic 
Ocean. His submarines and raiders prove other- 
wise. So does the entire design of his new 
world-order. 

For example, I have in my possession a secret 
map made in Germany by Hitler's government — 
by the planners of the new world-order. It is a 
map of South America and a part of Central 
America as Hitler proposes to reorganize it. 
Today in this area there are 14 separate coun- 
tries. The geographical experts of Berlin, how- 
ever, have ruthlessly obliterated all existing 

341 



342 



DEPARTMENT OF STATE BULLETIN 



boundary lines and have divided South America 
into five vassal states, bringing the whole conti- 
nent under their domination. And they have 
also so arranged it that the territory of one of 
these new pupj^et states includes the Republic 
of Panama and our great lifeline — the Panama 
Canal. 

This map makes clear the Nazi design not only 
against South America but against the United 
States itself. 

Your Government has in its possession an- 
other document made in Germany by Hitler's 
govei-nment. It is a detailed plan, whicli, for 
obvious reasons, the Nazis did not wish to pub- 
licize just yet, but which they are ready to impose 
on a dominated world — if Hitler wins. It is a 
plan to abolish all existing religions — Protes- 
tant, Catholic, Mohanmaedan, Hindu, Buddhist, 
and Jewish alike. The property of all churches 
will be seized by the Reich. The cross and all 
other symbols of religion are to be forbidden. 
The clergy are to be forever silenced under 
penalty of the concentration camps, where even 
now so many fearless men are being tortured 
because they placed God above Hitler. 

In the place of the churches of our civilization, 
there is to be set up an International Nazi 
Church — a church which will be served by ora- 
tors sent out by the Nazi government. In the 
place of the Bible, the words of Mein Kampf 
will be imjjosed and enforced as Holy Writ. 
And in place of the cross of Christ will be put 
two symbols — the swastika and the naked sword. 

The God of Blood and Iron will take the place 
of the God of Love and Mercy. 

These gi-im truths which I have told you of 
the present and future plans of Hitlerism will 
of course be hotly denied tomorrow in the con- 
trolled press and radio of the Axis Powers. 
And some Americans will continue to insist that 
Hitler's plans need not worry us — and that we 
should not concern ourselves with anything that 
goes on beyond rifle shot of our own shores. 

The protestations of these American citizens — 
few in number — will, as usual, be paraded with 



applause through the Axis press and radio dur- 
ing the next few days, in an effort to convince 
the world that the majority of Americans are 
opposed to their duly chosen Government, and 
in reality are only waiting to jump on Hitler's 
bandwagon when it comes this way. 

The motive of such Americans is not the 
point at issue. The fact is that Nazi propa- 
ganda continues in desperation to seize upon 
such isolated statements as proof of American 
disunity. 

The Nazis have made up their own list of 
modern American heroes. It is, fortunately, a 
short list. I am glad that it does not contain 
my name. 

All of us Americans, of all opinions, are faced 
with the choice between the kind of world we 
want to live in and the kind of world which 
Hitler and his hordes would impose upon us. 

None of us wants to burrow under the ground 
and live in total darkness like a comfortable 
mole. 

The forward march of Hitlerism can be 
stopped — and it will be stopped. 

Very simply and very bluntly — we are 
pledged to pull our own oar in the destruction 
of Hitlerism. 

And when we have helped to end the curse of 
Hitlerism we shall help to establish a new peace 
which will give to decent people everywhere a 
better chance to live and prosper in security and 
in freedom and in faith. 

Each day that passes we are producing and 
providing more and more arms for the men who 
are fighting on actual battlefronts. That is our 
primary task. 

And it is the Nation's will that these vital 
arms and supplies of all kinds shall neither be 
locked up in American harbors nor sent to the 
bottom of the sea. It is the Nation's will that 
America shall deliver the goods. In open de- 
fiance of that will, our ships have been sunk and 
our sailors have been killed. 

I say that we do not propose to take this lying 
down. 



NOVEMBER 1, 1941 



343 



Our determination not to take it lying down 
has been expressed in the orders to the American 
Navy to shoot on sight. Those orders stand. 

Furthermore, the House of Representatives 
has already voted to amend part of the Neu- 
trality Act of 1939, today outmoded by force of 
violent circumstances. The Senate Committee 
on Foreign Relations has also recommended 
elimination of other hamstringing provisions in 
that act. That is the course of honesty and of 
realism. 

Our American merchant ships must be armed 
to defend tliemselves against the rattlesnakes 
of the sea. 

Our American merchant ships must be free to 
carry our American goods into the harbors of 
our friends. 

Our American merchant ships must be pro- 
tected by our American Navy. 

It can never be doubted that the goods will 
be delivered by this Nation, whose Navy believes 
in the tradition of "Damn the torpedoes; full 
speed ahead !" 

Our national will must speak from every as- 
sembly line in our vast industrial machine. Our 
factories and our shij^yards are constantly ex- 
panding. Our output must be multiplied. 

It cannot be hampered by the selfish obstruc- 
tion of a small but dangerous minority of indus- 
trial managers who hold out for extra profits or 
for "business as usual". It cannot be hampered 
by the selfish obstruction of a small but danger- 
ous minority of labor leaders who are a menace 
to the true cause of labor itself, as well as to the 
Nation as a whole. 

The lines of our essential defense now cover 
all the seas, and to meet the extraordinary de- 
mands of today and tomorrow our Navy grows 
to unprecedented size. Our Navy is ready for 
action. Indeed, units of it in the Atlantic patrol 
are in action. Its officers and men need no 
praise from me. 

Our new Army is steadily developing the 
strength needed to withstand the aggressors. 
Our soldiers of today are worthy of the proudest 
traditions of the United States Army. But 



traditions cannot shoot down dive bombers or 
destroy tanks. That is why we must and shall 
provide, for every one of our soldiers, equip- 
ment and weapons — not merely as good but bet- 
ter than that of any other army on earth. And 
we are doing that right now. 

For this — and all of this — is what we mean 
by total national defense. 

The first objective of that defense is to stop 
Hitler. He can be stopped and can be compelled 
to dig in. And that will be the beginning of his 
downfall, because dictatorship of the Hitler 
type can live only through continuing vic- 
tories — increasing conquests. 

The facts of 1918 are proof that a mighty 
German Army and a tired German people can 
crumble rapidly and go to pieces when they are 
faced with successful resistance. 

Nobody who admires qualities of courage and 
endurance can fail to be stirred by the full- 
fledged resistance of the Russian people. The 
Russians are fighting for their own soil and their 
own homes. Russia needs all kinds of help — 
planes, tanks, guns, medical supplies, and other 
aids — toward the successful defense against the 
invaders. From the United States and from 
Britain she is getting great quantities of those 
essential supplies. But the needs of her huge 
army will continue — and our help and British 
help will have to continue ! 

The other day the Secretary of State of the 
United States was asked by a Senator to justify 
our giving aid to Russia. His reply was : "The 
answer to that depends on how anxious a person 
is to stop and destroy the march of Hitler in 
his conquest of the world. If he were anxious 
enough to defeat Hitler, he would not worry 
about who was helping to defeat him." 

Upon our American production falls the 
colossal task of equipping our own armed forces 
and helping to supply the British, the Russians, 
and the Chinese. In the performance of that 
task we dare not fail. And we will not fail. 

It has not been easy for us Americans to ad- 
just ourselves to the shocking realities of a 
world in which the principles of common hu- 



344 



DEPARTMENT OF STATE BULLETIN 



manity and common decency are being mowed 
down by the firing squads of the Gestapo. We 
have enjoyed many of God's blessings. We 
have lived in a broad and abundant land, and 
by our industry and productivity we have made 
it flourish. 

There are those who say that our great good 
fortune has betrayed us — that we are now no 
match for the regimented masses who have been 
trained in the Spartan ways of ruthless bru- 
tality. They say that we have grown fat and 
flabby and lazy — and that we are doomed. 

But those who say that know nothing of 
America or of American life. 

They do not know that this land is great 
because it is a land of endless challenge. Our 
country was first populated, and it has been 
steadily developed, by men and women in whom 



there burned the spirit of adventure and rest- 
lessness and individual independence which will 
not tolerate oppression. 

Ours has been a story of vigorous challenges 
which have been accepted and overcome — chal- 
lenges of uncharted seas, of wild forests and 
desert plains, of raging floods and withering 
drought, of foreign tyrants and domestic strife, 
of staggering problems — social, economic, and 
physical; and we have come out of them the 
most powerful nation — and the freest — in all of 
history. 

Today in the face of this newest and greatest 
challenge, we Americans have cleared our decks 
and taken our battle stations. We stand ready 
in the defense of our Nation and the faith of 
our fathers to do what God has given us the 
power to see as our full duty. 



OFFICE OF LEND-LEASE ADMINISTRATION 



The President, by Executive order dated 
October 28, 1941 (no. 8926), ^ established the 
Office of Lend-Lease Administration in the 
Office for Emergency Management of the Exec- 
utive Office of the President and simultaneously 
revoked the Executive order of May 2, 1941 
establishing the Division of Defense Aid 
Reports.- 

The new Executive order provides that there 
shall be at the head of the Office an Adminis- 
trator, appointed by the President, who is au- 
thorized and directed "to exercise any power or 
authority conferred upon the President by the 
[Lend-Lease] act and by the Defense Aid Sup- 
plemental Appropriation Act, 1941, and any acts 



' 6 F.R. 5519. 
" 6 F.R. 2301. 



amendatory or supplemental thereto, with re- 
spect to any nation whose defense the President 
shall have found to be vital to the defense of the 
United States : Provided^ That the master agree- 
ment with each nation receiving lend-lease aid, 
setting forth the general terms and conditions 
under which such nation is to receive such aid, 
shall be negotiated by the State Department, 
with the advice of the Economic Defense Board 
and the Office of Lend-Lease Administration." 
The Administrator is directed to make 
"appropriate arrangements with the Economic 
Defense Board for the review and clearance of 
lend-lease transactions which affect the economic 
defense of the United States as defined in Execu- 
tive Order No. 8839 of July 30, 1941." ^ 



'Bulletin of August 2, 1941, p. 97; 6 F.R. 3823. 



American Republics 



RESIGNATION OF JOSEPHUS DANIELS AS AMBASSADOR TO MEXICO 



[Released to the press by the White House October 31] 

The President has received the following letter 
of resignation from Josephus Daniels, Ambas- 
sador to Mexico : 

"Dear Franklin : 

"It is with sincere regret that I am impelled 
by family reasons to tender my resignation as 
your Ambassador to Mexico to which diplomatic 
post you did me the honor to appoint me in 
March 1933. The physicians of my wife advise 
that her health will not justify her continuance 
in the responsible though agi'eeable duties which 
devolve upon the wife of the Ambassador to 
Mexico. And no one knows better than you that 
I cannot carry on without her. 

"It gives us both a sense of the deepest regret 
to sever the delightful relations with friends in 
the Mexican Government, colleagues in the dip- 
lomatic corps of which I am dean, members of 
our Embassy staff and many Mexican and other 
friends with whom our associations have been 
so pleasant that we will ever cherish them. 
During our stay in Mexico we have been the re- 
cipients of the most gracious hospitality. 

"When you did me the honor to nominate me 
to the post I am now relinquishing, I went to 
Mexico animated by a single purpose : to incar- 
nate your policy of the Good Neighbor. My 
constant aim has been to truly interpret the 
friendship of our country to our nearest south- 
ern neighbors. I have visited all parts of the 
republic as a Good Will Ambassador, never ask- 
ing anything for any of my countrymen except 
what our country extends to Mexicans sojourn- 
ing in the United States. I am glad to report to 
you that from the day of assuming the duties I 
have found cordial reciprocation of the senti- 
ment of friendship expressed in your inaugural 
address. 



"In laying down the duties, I need not assure 
you of my appreciation for the opportunity of 
serving our country in this important post. I 
know also that I need not tell you of my happi- 
ness in having been a part of your administra- 
tion which has been distinguished by its devo- 
tion to the common weal, and which has, in con- 
junction with the other twenty Pan-American 
republics, secured continental solidarity. I am 
happy to tell you that the relations between 
Mexico and the United States are on the most 
sincerely friendly basis in their history and that 
both are firmly united to prevent any infiltration 
of alien isms or forces on this hemisphere from 
any quarter. 

"In the gi-eat tasks that lie ahead, I will be 
happy, with voice and pen and in any other way 
that opens, to give any aid in carrying out the 
great policies for which your administration has 
won world approval. 

"Affectionately yours, 

JosEPHXTS Daniels" 

In the letter accepting the Ambassador's res- 
ignation, the President said : 

"Dear Chief: 

"As you know, I have been worried for some 
time about your wife's health and hoping all the 
while that it would justify you both staying on 
in Mexico. 

"Nevertheless, it comes to me as a real shock 
that we have to face the situation and that the 
country will have to do without the services of 
its Ambassador to Mexico, who perhaps, more 
than anyone else, has exemplified the true spirit 
of the good neighbor in the foreign field. 

"That you have succeeded so completely is the 
testimony that in a position which, as we all 

345 



346 



DEPARTMENT OF STATE BULLETIN 



know, was diiRcult when you first assumed it, 
our relations with our southern neighbor have, 
largely because of you, become relations of 
understanding and real friendship. 

"I know that you will miss your colleagues 
and friends in Mexico City and I think you can 
realize my own feelings in not having my old 
Chief as an intimate part of the Administration. 

"However, what must be, must be. I can only 
hope that j'our good wife's health will improve 
in her own home in Raleigh. 

"I think that it is right that you should make 
a short trip to Mexico City in order to take fare- 
well of all your friends there, and to present my 
very warm personal regards to President 
Camacho and to his Secretary of State for 
Foreign Affairs. 

"I hope, therefore, that it will be agreeable 
if I do not accept your resignation until you 
have returned from a short visit to Mexico and 
completed such leave as may be due you. 

''With my affectionate regards to you both, 
I am 

"As ever j'ours, 

Franklin D Eoose\-elt" 



The Minister for Foreign Affairs of Mexico 
gave out the following statement in translation 
to the press concerning the resignation of Amer- 
ican Ambassador Daniels : 

"I have just heard the report of the resigna- 
tion of Mr. Daniels. Upon the departure of 
Mr. Daniels from Mexico, the sincerest senti- 
ments of friendship, respect, and admiration of 
the Mexican people will accompany him. 

"His work in bringing about closer relations 
between our two countries has been of inesti- 
mable value. With truly democratic dignity 
he represented in Mexico the greatest virtues of 
the American people. I am sure that the ex- 
emplary conduct of Mr. Daniels will be contin- 
ued by any successor whom the Goverimient of 
the United States may appoint. 

"From a purely personal point of view both 
my wife and I have a great affection for the 
Ambassador and Mrs. Daniels, and we hope that 
their departure from Mexico may be followed by 
frequent visits to this country where they are 
justly held in warm and friendly regard." 



VISIT TO WASHINGTON OF VENEZUELAN ECONOMIC MISSION 
STATEMENT BY THE VICE PRESIDENT 



[Released to the press October 29] 

Vice President Wallace made the following 
statement on October 29 upon the completion of 
the visit to Washington of the Venezuelan Eco- 
nomic Mission headed by Dr. Herrera Mendoza, 
President of the Banco Central de Venezuela : 

"The Venezuelan Economic Mission, supple- 
menting the valuable cooperation of the Vene- 
zuelan Embassy, has successfully carried its task 
of presenting to officials of this Government a 
detailed exposition of Venezuela's essential im- 
port needs. The Government of the United 
States is keenly appreciative of the necessity of 
maintaining exports of materials essential to 



Venezuela, and will take every step commensu- 
rate with the requirements of the defense pro- 
gram in order to do so. Officials of this Gov- 
ernment have consequently studied with the 
greatest care the statement of needs so ably pre- 
sented b}' Messrs. Herrera Mendoza and Boul- 
ton, and are prepared to accept it in principle as 
the basis for allocation of materials for export 
to Venezuela. 

"The presentation of needs by the Venezuelan 
Economic Mission, the first comprehensive ex- 
position made to this Government, will now be 
presented to the Supply Priorities and Alloca- 
tions Board for action. It is expected that spe- 



NOVEMBER 1, 1941 



347 



cific allocations will be made in the immediate 
future. 

"It is essential that similar studies of require- 
ments be presented by all of the other American 
republics. 

"In the course of their work in the United 
States Messrs. Herrera Mendoza and Boulton 



have evidenced an understanding of the serious 
problems confronting the United States, and on 
returning to Venezuela will be able to explain to 
their Government and people the strain which 
the gigantic defense effort is placing on normal 
productive facilities in this country." 



E 



urope 



THE NATIONAL REICH'S CHURCH OF GERMANY 
ADDRESS BY ASSISTANT SECRETARY BERLE ' 

[Excerpts] 



You are holding a Christian meeting in full 
freedom. You take this for granted as a natural 
right. It is difficult for us in America to realize 
that in a great part of the world a meeting such 
as this would be impossible. 

And yet, most of American history has been 
influenced by the fact that the men and women 
who came here wished to have the right to main- 
tain their religion, and were prepared to defend 
that right to the limit. 

It liajjpens that we now have the plan for 
reorganizing religion which is being discussed in 
Germany by a most influential group in the Nazi 
government. It is sufficiently interesting to 
give in full : 

"The Program of the National Reich's Church 
of Germany 

"First. The National Reich's Church of Ger- 
many categorically claims the exclusive right 
and the exclusive power to control all churches 
within the borders of the Reich; it declares 
these to be national churches of the German 
Reich. 

"Second. The German people must not serve 
the National Reich's Church of Germany. Tlie 



' Delivered at a dinner held in connection with the 
annual meeting of the National Council of the Young 
Men's Christian Association, Columbus, Ohio, October 25, 
1941. 

424545 — 41 2 



National Reich's Church is absolutely and exclu- 
sively in the service of but one doctrine: race 
and nation. 

"Third. The field of activity of the National 
Reich's Church of Germany will expand to the 
limits of Germany's territorial and colonial 
possessions. 

"Fourth. The National Reich's Church of 
Germany does not force any German to seek 
membership therein. The National Reich's 
Church will do everything within its power to 
secure the adherence of every German soul. 
Other churches or similar communities and 
unions, particularly such as are under interna- 
tional control or management, cannot and shall 
not be tolerated in Germany. 

"Fifth. The National Reich's Church of Ger- 
many is determined to exterminate irrevocably 
and by every means the strange and foreign 
Christian faiths imported into Germany in the 
ill-omened year 800. 

"Sixth. The existing churches may not be 
architecturally altered, as they represent the 
property of the German nation, German cul- 
ture and to a certain extent the historical devel- 
opment of the nation. As property of the Ger- 
man nation they are not only to be valued but 
to be preserved. 



348 

"Seventh. The National Reich's Church of 
Germany has no scribes, pastors, chaplains, or 
priests but National Reich orators are to speak 
in them. 

"Eighth. The National Reich's Church of 
Germany services are held only in the evening 
and not in the morning. These services are to 
take place on Saturdays with solemn illumi- 
nation. 

"Ninth. In the National Reich's Church of 
Germany German men and women, German 
youths and girls will acknowledge God and his 
eternal works. 

"Tenth. The National Reich's Church of Ger- 
many irrevocably strives for complete union 
with the state. It must obey the state as one of 
its servants. As such it demands that all landed 
possessions of all churches and religious de- 
nominations be handed over to the state. It for- 
bids that in future churches should secure own- 
ership of even the smallest piece of German soil 
or that such be ever given back to them. Not 
the churches conquer and cultivate land and soil 
but exclusively the German nation, the German 
state. 

"Eleventh. The National Reich's Church of 
Germany orators may never be those who today 
emphasize with all tricks and cunning verbally 
and in writing the necessity of maintaining and 
teaching of Christianity in Germany ; they not 
only lie to tliemselves but also to the German 
nation goaded by their love of the positions they 
liold and the sweet bread they eat. 

"Twelfth. The National Reich's Church of 
Germany orators hold office, govermnent officials 
under Civil Service rules. 

"Thirteenth. The National Reich's Church of 
Germany demands immediate cessation of the 
publishing and dissemination of the Bible in 
Germany as well as the publication of Sunday 
papers, pamphlets, publications and books of 
religious nature. 

"Fourteenth. The National Reich's Church of 
Germany has to take severe measures in order to 
prevent the Bible and other Christian publica- 
tions being imported into Germany. 

"Fifteenth. The National Reich's Church of 
Germany declares that to it, and therefore to the 



DEPARTMENT OF STATE BULLETEST 

German nation, it has been decided Fuehrer's 
Mem Kampf is the greatest of all documents. It 
is conscious that this book contains not only the 
greatest, and that it embodies the purest and 
truest ethics for the present and future life of 
our nation. 

"Sixteenth. The National Reich's Church of 
Germany has made it its sacred duty to use all 
its energy to popularize the coeternal Mein 
Kampf and to let every German live and com- 
plete his life according to this book. 

"Seventeenth. The National Reich's Church 
of Germany demands that further editions of 
this book, whatever form they may take, be in 
content and pagination exactly similar to the 
present popular edition. 

"Eighteenth. The National Reich's Church of 
Germany will clear away from its altars all 
crucifixes, Bibles and pictures of Saints. 

"Nineteenth. On the altars there must be 
nothing but Mein Kampf, to the German na- 
tion and therefore to God the most sacred book, 
and to the left of the altar a sword. 

"Twentieth. The National Reich's Church of 
Germany speakers must, during National 
Reich's Church services, propound this book to 
the congregation to the best of their knowledge 
and ability. 

"Twenty-first. The National Reich's Church 
of Germany does not acknowledge forgiveness 
of sins. It represents the standpoint which it 
\^i]l always proclaim that a sin once committed 
will be ruthlessly punished by the honorable and 
indestructible laws of nature and punishment 
will follow during the sinner's lifetime. 

"Twenty-second. The National Reich's 
Church of Germany repudiates the christening 
of German children, particularly the christening 
with water and the Holy Ghost. 

"Twenty-third. The parents of a child must 
only take the German oath before the altar 
which is worded as follows : 

"The man: 'In the name of God I take this 
Holy oath that I, the father of this child, and 
my wife, are of proven Aryan descent. As a 
father I agree to bring up this child in the Ger- 
man spirit and as a member of the German race.' 



NOVEMBER 1, 1941 



349 



"The woman : 'In the name of God I take this 
Holy oath that I (name) bore my husband a 
child and that my husband is the father of this 
child and that I, its mother, am of proven Aryan 
descent. As a mother I swear to bring up this 
child in the German spirit and as a member of 
the German race.' The German diploma can 
only be issued to newly born children on the 
strength of the German oath. 

"Twenty-fourth. The National Reich's 
Church of Germany abolishes confirmation and 
religious education as well as the communion and 
the religious preparation for the communion. 
The educational institutions are, and remain, 
the family, the schools, the German youth, the 
Hitler youth, and the Union of German girls. 

"Twenty-fifth. In order that school gradua- 
tion of our German youth be given an especially 
solemn character, all National Reich's Churches 
of Germany must put themselves at the disposal 
of German youth, the Hitler youth and the 
Union of German girls, on the day of the state's 
youth, which will be on the Friday before 
Easter. On this day, the leaders of these or- 
ganizations exclusively may speak. 

"Twenty-sixth. The marriage ceremony of 
German men and women will consist of taking 
an oath of faithfulness and placing the right 
hand on the sword. Thei-e will not be any un- 
worthy kneeling in the National Reich's Church 
of Germany ceremonies. 

"Twenty-seventh. The National Reich's 
Church of Germany declares the tenth day be- 
fore Whit Sunday to be the national holiday of 
the German family. 

"Twenty-eighth. The National Reich's Church 
of Germany rejects the customary day of prayer 
and atonement. It demands that this be trans- 
ferred to the holiday commemorating the laying 
of the foundation stone of the National Reich's 
Church. 

"Twenty-ninth. The National Reich's Church 
of Germany will not tolerate the establishment 
of any new clerical religious insignia. 

"Thirtieth. On the day of its foundation the 
Christian cross must be removed from all 
churches, cathedrals and chapels within the 
Reich and its colonies, and it must be super- 



seded by the only unconquerable symbol of 
Germany, the 'Haken Krevz'." 

Sometimes we are asked in Washington why 
plans of this kind should interest the United 
States. It is said that this sort of thing may 
go on in Europe, but that it cannot affect 
America. 

But it so happens that we have long known 
that the Nazi group in Germany planned to 
conquer the entire world. It is not easy for 
Americans to realize that any group of people 
could seriously undertake world-conquest, or 
that by any possibility they could carry it out. 

Yet, the fact is that they have planned it; 
and it is known to everyone who has had any 
contact with German affairs. 

The fact also is that they probably can cari-y 
it out unless there is resolute determination on 
the part of the remaining free nations to stop 
that conquest. 

So far as the Western Hemisphere is con- 
cerned, their plan includes following up the 
seizure of Europe with virtual control of the 
seas or the main sea lanes. This may take time, 
but they have calculated that with European 
resources they will be able to outmatch the 
remaining nations on the sea as they have 
already outmatched the nations of the European 
Continent in land armament. 

Anticipating that they will be able to use the 
seas freely, they have had advance groups work- 
ing in South America for several years. These 
include propagandists, organizers, and spies; a 
day rarely goes by that does not bring some 
fresh proof of this to us in the State Department. 

If it becomes possible for the would-be con- 
querors to back these gi'oups with available 
force, at sea or in the air or both, they would 
become a formidable menace. 

It is likewise believed by that group that the 
United States would cease to be formidable, 
since she would then be cut off economically and 
politically from necessary raw materials, from 
overseas markets, and from any possibility of 
joining with others overseas. 

A few Americans sometimes tell us that there 
is no reason to do anything now because un- 
doubtedly the movement of these Nazi con- 



350 



DEPARTMENT OF STATE BULLETIN 



querors will exhaust itself, either in Europe or 
on the seas. But I think no responsible oiEcer 
of government would care to gamble the safety 
of the United States on mere good fortune. 
Nation after nation on the continent of Europe 
made that same gamble, and, failing to unite 
with other free nations in the common defense, 
they have been enslaved one by one. 



For that reason, I suggest that the right of 
groups like the Y. M. C. A. to continue tlieir 
work is not a right to be taken for granted, but 
a privilege for which our fathers struggled and 
which we, in our time, must be prepared to 
defend. 



The Near East 



NEAR EASTERN LECTURE SERIES 



MESSAGE FROM THE SECRETARY OF STATE • 



[Released to the press October 2S] 

I am happy to extend my best wishes to the 
organizers and subscribers to this series of lec- 
tures on the countries of the Near East. It is 
unnecessai'y to stress that such meetings as this, 
where speakers fully express their opinions, are 
an important element in our democratic process. 

The countries of the Near East used to seem 
very remote from us, but in recent years we have 
come to realize that what happens in Iran and 
Afghanistan, Iraq and Saudi Arabia, Egypt, 
Turkey, and Ethiopia necessarily has its reper- 
cussions in the Western Hemisphere. 

Certain countries under the jurisdiction of the 
Division of Near Eastern Affairs were among 
the first with which we had treaty relations. 
Thus treaties of "Peace and Friendship" were 
concluded prior to 1800 with Morocco, Algiers, 
Tripoli, and Tunis. Indeed, the first Legation 
building which this Government acquired 
abroad was at Tangier, Morocco. This was in 
1821, and it is interesting to note that this 
building, which still serves as oiu- Legation, was 
actjuired not by purchase but by gift from the 
Sultan of Morocco. 

Today, however, you are commencing a series 
of lectures on countries further to the east, in 



^Read on behalf of the Secretary of State by Mr. 
Wallace Murray, Chief, Division of Near Eastern Affairs 
of the Department of State, at the Near Eastern Lecture 
Series program, Washington, October 28, 1941. 



the area which can best be described as the 
Middle East. The first American treaty with a 
country in that area was the treaty of 1830 with 
Turkey. Even before that time, however, we 
had been represented by a consul at Smyrna 
(now Izmir), and Yankee clippers were a fa- 
miliar sight in that port, exchanging the prod- 
ucts of the New World for rugs, tapestries, and 
other articles produced by oriental craftsmen. 
Even before we commenced official relations with 
Turkey, American missionaries had established 
themselves in Turkish territory, particularly 
Syria. Monuments to those early educators are 
found today in imposing institutions, such as 
Kobert College at Istanbul and the American 
University at Beirut. Our educational and phil- 
anthropic institutions spread throughout the 
Ottoman Empire, not only in Syria and within 
the boundaries of present-day Turkey but also 
in Egypt, Palestine, and Iraq. These institu- 
tions also grew up in Iran (with which Govern- 
ment was concluded a treaty in 1856) and in 
India and Burma. 

Uj) until the end of the World War, American 
interests in the Near East were largely educa- 
tional, religious, and philanthropic. Imme- 
diately after the war our philanthropic work 
actually increased, notably because of the activi- 
ties of such organizations as the Near East Re- 
lief. Simultaneously our trade started to grow 
by leaps and bounds. For the manufactured 



NOVEMBER 1, 1941 



351 



goods produced in the United States, we ob- 
tained such products as tobacco from Greece 
and Turkey, long-staple cotton from Egypt, 
dates from Iraq, rugs from Iran, and numerous 
raw materials from India. At the same time 
American capital began to make investments in 
that area. This was particularly true of Ameri- 
can petroleum companies, several of which have 
developed important fields in Iraq, Saudi Ara- 
bia, and the Arab states on the Persian Gulf. 
Nor should we forget the work of American 
archeologists in Egypt, Palestine, Syria, Iraq, 
and Iran. Anyone who has seen the results of 
the labors of these scientists in such places as 
Persepolis, Antioch, and Luxor must be im- 
pressed by this evidence of American learning in 
distant lands. 



Our relations with the countries of the Middle 
East have always been of a friendly character, 
and I am happy to say that this is particularly 
true at the present time. I am certain that once 
an end has been put to the depredations of those 
powers which are bent on world-aggression, our 
relations with our friends and neighbors in the 
Middle East will grow and prosper to our 
mutual advantage. 

I feel sure that through this series of lectures 
you will gain a clearer insight, not only into the 
political and economic situation in the Near and 
Middle East but also an increased respect for 
and understanding of the culture of those an- 
cient peoples who have contributed so much to 
our own civilization. 



Commercial Policy 



TRADE AGREEMENT WITH ARGENTINA 
PROCLAMATION OF THE AGREEMENT 



[Released to the press October 31] 

On October 31, 1941 the President proclaimed 
the trade agreement between the United States 
and Argentina signed at Buenos Aires on Octo- 
ber 14, 1941. 

In accordance with the provisions of article 



XVIII, the provisions of the agi-eement will be 
applied provisionally on and after November 15, 
1941. The agreement will enter definitively into 
force after the exchange of the instrument of 
ratification and the proclamation, as provided in 
article XVII. 



GENERALIZATION OF TRADE-AGREEMENT DUTIES 



[Released to tbe press October 31] 

The President on October 31, 1941 addressed 
a letter to the Secretary of the Treasury con- 
cerning the application of duties and other 
import restrictions proclaimed in connection 
with the trade agreement signed on October 14, 
1941 with the Argentine Republic and other 
trade agi-eements heretofore entered into. A 
copy of the President's letter is printed below. 

As in previous letters of this nature, the pres- 
ent letter directs that the proclaimed duties and 
other import restrictions shall be applied gener- 



ally to products of all foreign countries, with 
appropriate provision for the special treatment 
applicable to Cuba in accordance with our trade 
agreement with that country. The letter like- 
wise continues the directions contained in pre- 
vious letters since 1935 withholding the benefits 
of trade-agreement reductions to products of 
Germany because of the discriminatory treat- 
ment of American commerce by that country. 
The Trade Agreements Act authorizes the 
President to susj^end the application of trade- 
agreement rates of duty to products of any 



352 



DEPARTMEKT OF STATE BUliLETIN 



country because of its discriminatory treatment 
of American commerce or because of other acts 
or policies which tend to defeat the purposes of 
the act. In the administration of this provision 
of the act, the Department follows closely the 
acts and policies of foreign countries, including 
those which under present abnormal circum- 
stances have very little or no trade with the 
United States and therefore derive little or no 
benefit from the generalization to them of the 
reduced rates of duty provided for in our trade 
agreements. 

Although no decision has been made in con- 
nection with the issuance of the present generali- 
zation letter to suspend the application of trade- 
agreement rates of duty to j^roducts of any coun- 
try other than Germany, the Department will 
continue to follow closely all aspects of the 
matter with a view to recommending appro- 
priate action to the President as circumstances 
warrant. 

"The White House, 
''Washington, October 31, 1941. 

"The Honorable Heney Morgenthau, Jr., 

"Secretary of the Treasury. 
"Mt Dear Mr. Secretary : 

"Pursuant to the authority conferred upon 
me by the Act to amend the Tariff Act of 1930, 
approved June 12, 1934 (48 Stat. 943), as ex- 
tended by Joint Resolutions approved March 1, 
1937 (50"Stat. 24), and April 12, 1940 (54 Stat. 
107), I hereby direct that the duties and other 
import restrictions proclaimed in connection 
with the trade agreement signed on October 14, 
1941 with the Argentine Republic, and all other 
duties and all other import restrictions now in 
effect and heretofore proclaimed in connection 
with trade agreements (other than the trade 
agreement with Cuba signed on August 24, 1934, 
as amended) entered into under the authority 
of the said Act, as originally enacted or as ex- 
tended, shall be applied on and after the effec- 
tive date of such duties and other import re- 
strictions, or, as the case may be, shall continue 
to be applied on and from the date of this letter, 
to articles the gi-owth, produce, or manufacture 
of all foreign countries, except as otherwise 
hereinafter provided, whether imported directly 



or indirectly, so long as such duties and other 
import restrictions remain in effect and this 
direction is not modified. 

"Such proclaimed duties and other import re- 
strictions shall be applied to articles the growth, 
jDroduce, or manufacture of Cuba in accordance 
with the provisions of the trade agreement with 
Cuba signed on August 24, 1934, as amended. 

"Because I find as a fact that the treatment of 
American commerce by Germany is discrimina- 
tory, I direct that such proclaimed duties shall 
not be applied to products of Germany. 

"My letters addressed to you on December 30, 
1939, and December 18, 1940, with refei'ence to 
duties heretofore proclaimed in connection with 
the trade agi-eements signed under the authority 
of the Act of June 12, 1934. are hereby super- 
seded. 

"You will please cause this direction to be 
published in an early issue of the weekly 
Treaswy Decisions. 

"Very sincerely yours, 

Franklin D Roosevelt" 



General 



NEW VISA FORM 

[Released to the press October 29] 

The Visa Division, Department of State, has 
announced the adoption of a new form to be 
used in connection with the submission of the 
cases of prospective visa applicants to the De- 
partment of State for preliminary examination. 
This in no way changes the existing procedure 
for the submission of visa applications to either 
American Consulates abroad or to the Depart- 
ment of State in Washington. 

The new Form BC consolidates the previous 
biographical statement regarding the visa ap- 
plicant and the two affidavits of support and 
sponsorship, which previously have been sepa- 
rately submitted. The new consolidated form 
is to be submitted in five copies, of which only 
the original need be notarized. 



NOVEMBER 1, 1941 



353 



The use of a consolidated form is expected to 
facilitate tlie submission of information re- 
quired by the Department in acting in its ad- 
visory capacity. 

The previous forms B, C, and D may continue 
to be used if submitted to the Department in five 
copies. 

CONTRIBUTIONS FOR RELIEF IN 
BELLIGERENT COUNTRIES 

A tabuhition of contributions collected and 
disbursed during the period September 6, 1939 
through September 1941, as shown in the reports 
submitted by persons and organizations regis- 
tered with the Secretary of State for the solici- 
tation and collection of contributions to be used 
for relief in belligerent countries, in conformity 
with the regulations issued pursuant to section 
3 (a) of the act of May 1, 1937 as made eifective 
by the President's proclamations of September 
5, 8, and 10, 1939, and section 8 of the act of 
November 4, 1939 as made effective by the Presi- 
dent's proclamation of the same date, has been 
released by the Department of State in mimeo- 
graphed form and may be obtained from the 
Department upon request (press release of Oc- 
tober 28, 1941, 54 pp.). 

This tabulation has reference only to contribu- 
tions solicited and collected for relief in bellig- 
erent countries (France ; Germany ; Poland ; the 
United Kingdom, India, Australia, Canada, 
New Zealand, and the Union of South Africa; 
Norway; Belgium; Luxembourg; the Nether- 
lands; Italy; Greece; Yugoslavia; Hungary; 
and Bulgaria) or for the relief of refugees 
driven out of these countries by the present war. 



Cultural Relations 



ADVISORY COMMITTEE ON ART 

[Released to the press October 2S] 

The President has approved the appointment 
of an Art Committee to advise the Department 
of State, through the Division of Cultural Rela- 
tions, regarding the stimulation of artistic inter- 
change among the American republics and the 



coordination of activities in this country which 
concern inter-American art. 

This action was taken on October 16, 1941 in 
accordance with the authority contained in sec- 
tion 2 of the act of August 9, 1939 entitled "An 
Act To authorize the President to render closer 
and more effective the relationship between the 
American republics". 

The Committee, which will serve through the 
fiscal year ending June 30, 1942, consists of the 
following members : 

Robert Woods Bliss, President, American Federation of 
Arts, Barr Building, Washington, D. C, honorary 
chairman 

Stephen Carlton Clark, Vice President, Metropolitan 
Museum of Art, 149 Broadway, New Tork, N. Y., 
chairman 

John E. Abbott, Executive Vice President, Museum of 
Modern Art, 11 West Fifty-third Street, New York, 
N. Y. 

George Biddle, Painter and Sculptor, Croton-on-Hudson, 
N. Y. 

Rene d'Harnoncourt, General Manager, Indian Arts and 
Crafts Board, Office of Indian Affairs, Department of 
the Interior, Washington, D. C. 

Grace McCann Morley, Ph.D., Director, San Francisco 
Museum of Art, San Francisco, Calif. 

Daniel Catton Rich, Director of Pine Arts, Art Insti- 
tute of Chicago, Chicago, 111. 

George C. Vaillant, Ph.D., Director, University Mu- 
seum, University of Pennsylvania, Philadelphia, Pa. 

Mitchell A. Wilder, Curator, Taylor Museum, Colorado 
Springs Fine Arts Center, Colorado Springs, Colo. 



The Foreign Service 



PERSONNEL CHANGES 

[Released to the press November 1] 

The following changes have occurred in the 
American Foreign Service since October 24, 
1941: 

Career Ofticers 

O. Gaylord Marsh, of Wenatchee, Wash., Con- 
sul General at Keijo, Chosen, will retire from 
the Foreign Service effective February 1, 1942. 

Winfield H. Scott, of Washington, D. C, for- 
merly Consul at Tenerife, Canary Islands, has 
been assigned as Consul at Singapore, Straits 
Settlements. 



354 



DEPARTMENT OF STATE BULLETIN 



Robert P. Chalker, of Pensacola, Fla., for- 
merly Vice Consul at Berlin, Germany, has been 
designated Third Secretary of Embassy at 
Berlin, Germany. 

M. Gordon Knox, of Baltimore, Md., formerly 
Vice Consul at Berlin, Germany, has been des- 
ignated Third Secretary of Embassy at Berlin, 
Germany. 

Non-career Officers 

William R. Morton, of Brooklyn, N. Y., Vice 
Consul at Quebec, Quebec, Canada, has been 
appointed Vice Consul at Mazatlan, Mexico. 



Publications 



Department of State 

Advancement of Peace: Treaty Between the United 
States of America and Canada Amending in Ttieir 
Application to Canada Certain Provisions of the Treaty 
for the Advancement of Peace Between the United 
States of America and Great Britain Signed September 
15, 1914— Signed at Wasliington September 6, 1940; 
proclaimed by the President August 21, 1941. Treaty 
Series 975. 3 pp. 50. 



Legislation 



Modification of Neutrality Act of 1939: Hearings 
Before the Committee on Foreign Relations, U.S. Senate, 
77th Cong., 1st sess., on H.J. Res. 237, a Joint Resolution 
To Repeal Section 6 of the Neutrality Act of 1939, and 
For Other Purposes. [Statement by Secretary Hull, pp. 
2-29.] October 21, 22, 23, and 24, 1941. iv, 291 pp. 

Second Supplemental National Defense Appropriation 
Bill for 1942 : Hearings Before the Subcommittee of 
the Committee on Appropriations, House of Representa- 
tives, 77th Cong., 1st sess., on the Second Supplemental 
National Defense Appropriation Bill for 1942 (Includ- 
ing Defense Aid — Lend-Ltase Appropriations). Part I: 
Defense Aid — Lend-Lease. ii, 461 pp. 

Second Supplemental National Defense Appropriation 
Act, 1942 : An Act Making Supplemental Appropriations 
for the National Defense for the Fiscal Years Ending 
June 30, 1942, and June 30, 1943, and For Other Pur- 
poses. [H.R. .'788.] Approved, October 28, 1941. [De- 
fense Aid Supplemental Appropriation Act, 1942, for 
lend-lease program, pp. 1-2 ; and Department of State, 
pp. 10-11.] (Public Law 282, 77th Cong.) 12 pp. 

Supplemental Estimate of Appropriation, Department 
of State : Communication From the President of the 
United States Transmitting Supplemental Estimate of 
Appropriation for the Department of State, for the 
Fiscal Year 1942, Amounting to $11,000 [additional for 
special and technical investigations under the Inter- 
national Joint Commission, U.S. and Great Britain, 
1942]. (H. Doc. 41G, 77th Cong., 1st sess.) 2 pp. 



U. S. GOVERNMENT PRINTING OFFICE: 1941 



For sale by the Superintendent of Documents, Washington, D. C. — Price, 10 cents . - - - Subscription price, $2.75 a year 

PUBLISHED WEEKLY WITH THE APPROVAL OF THE DIEECTOB OF THE BUBEAn OF THE BDDGET 



^ t5 



DO/ / * i 



THE DEPARTMENT OF STATE 

BULLETIN 



NOVEMBER 8, 1941 
Vol. V, No. 124— Publication 1662 



C 



ontents 



International Conferences, Commissions, Etc. Paee 
Address of the President to the delegates of the Inter- 
national Labor Organization 357 

National Defense 
Joint Defense Production Committee, United States 

and Canada 360 

Regulations governing international traffic in arms. . . 361 

Europe 

Proposal for Finnish-Soviet peace 362 

Claims against Germany in the case of the Robin Moor. 363 
Lend-lease aid to the Soviet Union: 

The Moscow conference 364 

Exchange of correspondence between the President of 
the United States and officials of the Soviet 

Union 365 

Letter of the President to the Lend-Lease Adminis- 
trator 366 

The Unforgotten Nations: Address by Assistant Secre- 
tary Berle 367 

General 

Contributions for relief in belligerent countries .... 368 

Cultural Relations 

Radio address by Assistant Secretary Shaw ..... 369 



[OTEBl 




U. S, SUPERINTENDENT OF DOCUMENTS 
DEC 4 1941 



G 



ontents-coT^T^m^ED 



The Department 

Board created in Passport Division to review national- Page 

ity cases 371 

Appointment of officers 372 

The Foreign Service 

Personnel changes 372 

Treaty Information 

Telecommunications: North American Regional Broad- 
casting Agreement 373 

Sovereignty: Act of Habana and the Convention on 
the Provisional Administration of European Colonies 
and Possessions in the Americas 373 

Indian affairs: Convention Providing for the Creation 

of an Inter-American Indian Institute 373 

Legislation 375 

Publications 375 



International Conferences, Commissions, Etc. 



ADDRESS OF THE PRESIDENT TO THE DELEGATES OF THE INTERNATIONAL 

LABOR ORGANIZATION^ 



[Released to the press by the White House November 6] 

Miss Perkins, Mr. Goodrich, Mr. Phelan, 
Delegates and Advisors to the Con- 
ference : 

Taking part in a conference of the ILO is 
not a new experience for me. It was exactly 
at this time of the year, in 1919, that the ILO 
had its first conference in Washington. Ap- 
parently someone had fallen down on the job 
of making the necessary physical arrange- 
ments for the conference. Finally someone 
picked on the then Assistant Secretary of 
the Navy to help. I had to find office space 
in the Navy Building, as well as supplies and 
typewriters to get the machinery organized. 

In those days the ILO was still a dream. 
To many it was a wild dream. Who had ever 
heard of governments getting together to raise 
the standards of labor on an international 
plane? Wilder still was the idea that the 
people themselves who were directly affected — 
the workers and the employers of the various 
countries — should have a hand with govern- 
ment in determining these labor standards. 

Now 22 years have passed. The ILO has 
been tried and tested. Through those extrava- 
gant years of the twenties it kept doggedly 
at its task of shortening the hours of labor, 
protecting women and children in agriculture 
and industry, making life more bearable for 
the merchant seamen, and keeping the fac- 



' Delivered in the East Room of the White House 
before the Conference of the International Labor 
Organization and broadcast over a nation-wide hook- 
up, November 6, 1941. 

425918—41 1 



tories and mines of the world safe and fit 
places for human beings to work in. 

Then through the long years of depression 
it sought to bring about a measure of security 
to all workers by the establishment of unem- 
ploj'ment and old-age insurance systems; and 
again to set the wlieels of industry in action 
through the establishment of international 
public works, rational policies of migration of 
workers, and the opening of the channels of 
world-trade. 

Xow for more than two years you have 
weathered the vicissitudes of a world at war. 
Though Hitler's juggernaut lias crowded your 
permanent staff out of its lionie at Geneva, 
here in the New World, thanks in large part 
to the efforts of our friend, John Winant, you 
have been carrying on. And when this world- 
struggle is over, you will be prepared to play 
your own part in formulating those social 
policies upon which the [jermanence of peace 
will so much depend. 

Today, you, the representatives of 33 nations, 
meet here in the AVhite House for the final ses- 
sion of your conference. It is appropriate that 
I recall to you, who are in a full sense a parlia- 
ment for man's justice, some words written in 
this house by a President who gave his life in 
the cause of justice. Nearly 80 years ago, 
Abraham Lincoln said: "The strongest bond 
of human sympathy, outside of the family rela- 
tion, should be one uniting all working peo- 
ple, of all nations, and tongues, and kindreds." 

The essence of our struggle is that men shall 
be free. There can be no real freedom for the 

357 



358 



DEPARTMENT OF STATE BULLETIK 



common man without enlightened social pol- 
icies. In last analysis, they are the stakes for 
which democrac'es are today fighting. 

Your concern is the concern of all demo- 
cratic peoples. To many of your member 
states, adherence to the ILO has meant great 
sacrifice. There is no greater evidence of the 
vitality of the ILO than the loyal presence 
here today of the representatives of the na- 
tions which suffer under the lash of the dicta- 
tor. I welcome those representatives especially. 

I extend the hand of courage to the delegates 
of those labor organizations whose leaders are 
today languishing in concentration camps for 
having dared to stand up for the ideals witli- 
out which no civilization can live. Through 
you. delegates from these despoiled lands, the 
United States sends your people this message: 
"You have not been forgotten; you will not 
be forgotten." 

We in the United States have so far been 
called upon for extremely limited sacrifices, 
but even in this country we are beginning 
to feel the pinch of war. The names may 
be unfamiliar to you, but the workers of 
Manitowoc, Wis., who used to make aluminum 
utensils, have had to sacrifice their jobs that 
we may send planes to Britain and Kussia 
and China. Eubber workers in a hundred 
scattered plants have had to sacrifice their 
opportunities for immediate employment that 
there may be ships to carry planes and tanks 
to Liverpool and Archangel and Rangoon. 
Tens of thousands of automobile workers will 
have to be shifted to other jobs in order that 
the copper which might have been used in 
automobiles may carry its deadly message 
from the mills of the Connecticut Valley to 
Hitler. But with all this, we have not yet 
made any substantial sacrifices in the United 
States. 

We have not, like the heroic people of Brit- 
ain, had to withstand a deluge of death from 
the skies. Nor can we even grasp the full 
extent of the sacrifices that the people of 
China are making in their struggle for free- 
dom from aggression. We have in amazement 
witnessed the Russians oppose the Nazi war 



machine for four long months — at the price 
of uncounted dead and a scorched earth. 

Most heroic of all, however, has been the 
struggle of the common men and women of 
Europe, from Norway to Greece, against a 
brutal force which, however powerful, will be 
forever inadequate to crush the fight for 
freedom. 

As far as we in tlie United States are con- 
cerned, that struggle shall not be in vain. The 
epic stand of Britain, of China, and of Russia 
receives the full support of the free peoples 
of the Americas. The people of this country 
insist upon their right to join in the common 
defense. 

To be sure, there are still some misguided 
among us — thank God they are but a few — 
both industrialists and leaders of labor, who 
place personal advantage above the welfare 
of their Nation. There are still a few who 
place their little victories over one another 
above triumph over Hitler. There are still 
some who place the profits they may make 
from civilian orders above their obligation 
to the national defense. There are still some 
who deliberately delay defense output by using 
their "economic power" to force acceptance of 
their demands, rather than use the established 
machinerj' for the mediation of industrial 
disputes. 

Yes, they are but few. They do not repre- 
sent the great mass of American workers and 
employers. The American people have made 
an unlimited commitment that there shall be 
a free world. Against that conomitment, no 
individual or group .shall prevail. 

The American workman does not have to 
be convinced that the defense of the democ- 
racies is his defense. Some of you, from 
the conquered countries of Europe and from 
China, have told this conference with the elo- 
quence of anguish how all that you have 
struggled for — the social progress that you and 
your fellow men have achieved — is being ob- 
literated by the barbarians. 

I need not tell you that one of the first acts 
of the Fascist and Nazi dictators — at home and 
in conquered countries — was to abolish free 



NOVEMBER 8, 1941 



359 



trade unions and to take away from the common 
people the right of association. Labor alone 
tlid not suffer. Free associations of employers 
were also abolished. Collective bargaining has 
no place in their system; neither has collabora- 
tion of labor, industry, and government. 

Nor need I tell you that the Nazi labor front 
is not a labor union but an instrument to keep 
labor in a state of permanent subjection. Labor 
under the Nazi system has become the slave of 
the militai-y state. 

To replace Nazi workers shipped to the front 
and to meet the gigantic needs of her total war 
effort, Nazi Germany has imported about two 
million foreign civilian laborers. They have 
changed the occupied countries into great slave 
areas for the Nazi rulers. Berlin is the prin- 
cipal slave market of the world. 

The American worker has no illusions about 
the fate that awaits him and his free labor or- 
ganizations if Hitler should win. He knows 
that his own liberty and the very safety of the 
people of the United States cannot be assured 
in a world which is three-fourths slave and 
one-fourth free. He knows that we must fur- 
nish arms to Britain, Eussia, and China and 
that we must do it now — today. 

Our place — the place of the whole Western 
Hemisphere — in the Nazi scheme for world- 
domination has been marked on the Nazi time- 
table. The choice we have to make is this: 
Shall Me make our full sacrifices now, produce 
to the limit, and deliver our products today 
and every day to the battlefronts of the entire 
world? Or shall we remain satisfied with our 
present rate of armament output, postponing 
the day of real sacrifice — as did the French — 
until it is too late? 

The first is the choice of realism — realism in 
terms of three shifts a day; the fullest use of 
every vital machine every minute of every day 
and every night ; realism in terms of staying on 
the job and getting things made, and entrust- 
ing industrial grievances to the established 
machinery of collective bargaining — the ma- 
chinery set up by a free people. 

The second choice is the approach of the 
blind and the deluded who think that perhaps 



we could do business with Hitler. For them 
there is still "plenty of time". To be sure, many 
of these misled individuals honestly believe 
tliat if we should later find that we can't do busi- 
ness with Hitler, we will roll up our sleeves 
later — later — later. And their tombstones 
would bear the legend "Too late". 

In the process of working and fighting for 
victory, however, we must never permit our- 
selves to forget the goal which is beyond victory. 
The defeat of Hitlerism is necessary so that 
there may be fi-eedom ; but this war, like the last 
war, will produce nothing but destruction unless 
we prepare for the future now. We plan now 
for the better world we aim to build. 

If that world is to be one in which peace is to 
prevail, there must be a more abundant life for 
the masses of the people of all countries. In the 
words of the Atlantic Charter, we "desire to 
bring about the fullest collaboration between all 
nations in the economic field with the object of 
securing, for all, improved labor standards, 
economic advancement, and social security". 

There are so many millions of people in this 
world who have never been adequately fed and 
clothed and housed. By undertaking to provide 
a decent standard of living for these millions, 
the free peoples of the world can furnish em- 
ployment to every man and woman who seeks a 
job. 

We are already engaged in surveying the im- 
mediate post-war requirements of a world 
whose economies have been disrupted by war. 

We are planning not to provide temporary 
remedies for the ills of a stricken world ; we are 
planning to achieve permanent cures — to help 
establish a sounder life. 

To attain these goals will be no easy task. 
Yes, their fulfillment will require "the fullest 
cooperation between all nations in the economic 
field". We have learned too well that social 
problems and economic problems are not sep- 
arate water-tight compartments in the interna- 
tional any more than in the national sphere. In 
international, as in national affairs, economic 
policy can no longer be an end in itself. It is 
merely a means for achieving social objectives. 

There must be no place in the post-war world 



360 



DEPARTMENT OF STATE BULLETIN 



for special privilege for either individuals or 
nations. Again in the words of the Atlantic 
Charter: "All states, great or small, victor or 
\anquished" must have "access, on equal terms, 
to the trade and to the raw materials of the 
world which are needed for their economic 
l)rosperity". 

In the planning of such international action 
the ILO with its representation of labor and 
management, its technical knowledge and ex- 



perience, will be an invaluable instrument for 
peace. Your organization will have an essential 
part to play in building up a stable international 
system of social justice for all peoples every- 
where. As part of you, the people of the United 
States are determined to respond fully to the 
opportunity and challenge of this historic re- 
sponsibilit}-, so well exemplified at this historic 
meeting in this historic home of an ancient 
democracy. 



National Defense 



JOINT DEFENSE PRODUCTION COMMITTEE, UNITED STATES AND CANADA 



[Released to the press by the White House November 5] 

Tlie President and the Prime Minister of Can- 
ada have set up a Joint Defense Production 
Committee to coordinate the capacities of the 
two countries for the production of defense 
materiel. This action puts into effect a recom- 
mendation of the Joint Economic Committees of 
Canada and the United States. 

The President and tlie Prime Minister re- 
spectively have appointed the following mem- 
bers of the newly created joint committee: 

United states members 

Milo Perkins, Executive Director, Economic Defense 
Board, Chairman 

3. V. Forrestal, Under Secretary of the Navy 

W. H. Harrison, Director, Production Division, Office 
of Production Management 

R. P. Patterson, Under Secretary of War 

E. R. Stettinius, Jr., Administrator, Office of Lend- 
Lease Administration 

H. L. Vickery, Vice Chairman, United States Mari- 
time Commission 
Canadian members 

G. K. Shells, Deputy Minister, Department of Mu- 
nitions and Supply, Chairman 

J. R. Donald, Director General, Chemicals & Ex- 
plosives Branch, Department of Munitions and 
Supply 

H. J. Carmichael, Director General, Munitions Pro- 
duction Branch, Department of Munitions and 
Supply 



R. P. Bell, Director General, Aircraft Production 
Branch, Department of Munitions and Supply 

H. R. Macllillan. President, War-Tinie Merchant 
Shipping, Ltd. 

Walter Gordon, Department of Finance 

The resolution of the Joint Economic Com- 
mittees, in accordance with which the Joint 
Defense Production Committee has been estab- 
lished, is as follows: 

"Where.vs: (A) At Hyde Park on April 20, 
1041, the Prime Minister of Canada and the 
President of the United States agreed 'as a 
general principle that in mobilizing the re- 
sources of this continent each country should 
provide the other with the defense articles 
which it is best able to produce, and above all, 
produce quickly, and that production programs 
should be coordinated to this end' ; and 

"(B) The two Governments have established 
joint bodies in the field of military strategy 
(the Permanent Joint Board on Defense), in 
the field of primary materials (the Joint Ma- 
terials Coordinating Committee), and in the 
field of general economic relations (the Joint 
Economic Committees) ; but 

"(C) Xo machinery has been established for 
the specific purpose of most effectively coordi- 



NOVEMBER 8, 1941 



361 



nating capacities of the two countries for the 
production of defense nuifh'ieJ ; 
''TiiEKEFORE, The Joint Economic Committees 
"Recommend: (1) That the Governments of 
Canada and of the United States establish a 
joint committee on defense production to sur- 
vey the capacity and potential capacity for the 
production of defense niafvriel in each country 
to the end that in mobilizing the resources 
of the two countries each country should pro- 
vide for the common defense effort the defense 
articles which it is best able to produce, taking 
into consideration the desirability of so ar- 
ranging production for defense purposes as to 
minimize, as far as possible and consistent with 
the maximum defense effort, maladjustments in 
the post-defense period; 

"(2) That the said joint committee be di- 
rected to report from time to time to the Prime 
Minister of Canada and to the President of the 
United States, with such recommendations as 
are found to be necessary to secure the purposes 
set forth above, as well as reports on progress 
made under their recommendations. 



"(3) Tliat the said joint committee be fur- 
nished with sucli studies as have already been 
initiated in this field by the Joint Economic 
Committees and the Joint Materials Coordi- 
nating Committee; that the said joint commit- 
tee be directed currently to furnish to the Joint 
Economic Committees copies of its surveys, 
findings and recommendations and reports, and 
to take appropriate steps to insure a continu- 
ing liaison between its secretariat and membei'S 
and the secretariat and members of the Joint 
Economic Committees; and that the said joint 
committee be invited to consult with the Joint 
Economic Committees through joint meetings 
or otherwise, as occasion may indicate to be 
desirable, particularly with regard to the ob- 
jective of minimizing post-defense economic 
maladjustments. 

"W. A. Mackintosh 

Canadian Chah^man 
"Alvin H. Hansen 
United States Chairman 
"September 19, 1941." 



REGULATIONS GOVERNING INTERNATIONAL TRAFFIC IN ARMS 



The regulations governing the international 
traffic in ar.ms, promulgated on November 6, 
1939, pursuant to the authority vested in the 
Secretary of State by the provisions of section 
12 of the joint resolution of Congress approved 
November 4, 1939, were amended by the Sec- 
retary of State on October 2, 1941 by rescinding 
the part which exempted shipments of arms, 
ammunition, and implements of war in transit 
through the territory of the United States to a 
foreign country from import- and export-licens- 
ing requirements.^ 

Accordingly, the importation and exportation 
of shipments of this character entering and leav- 
ing the United States must be authorized by im- 
port and export licenses of the same types as 



' See the Bulletin of October 4, 1941, p. 246. 



those required for other shipments of arms, am- 
munition, and implements of war. 

The regulations were also amended by elimi- 
nating the special Cuban list of articles and 
materials for which export licenses for ship- 
ments to Cuba were required. 

Applications for license to export shipments 
destined to Cuba should, therefore, be executed 
in precisely the same form as those for license to 
export like commodities to other countries of 
destination. Accordingly, the white form of 
application should now be used in the case of 
those articles and materials only which are de- 
fined as arms, ammunition, and implements of 
war by the President's proclamation of May 1, 
1937. Applications for license to export those 
commodities, other than arms, ammunition, and 
implements of war, the exportation of which is 



362 



DEPARTMENT OF STATE BULLETIN 



prohibited or curtailed under the provisions of 
section 6 of the Export Control Act approved 
July 2, 1940, or of a proclamation issued pur- 
suant thereto, should be submitted to the Office 
of Export Control, 2501 Q Street, Washington, 
D.C., on the yellow form. 

Formal notification from the Cuban Embassy 
in Washington that it is the desire of the Cuban 
Government that the proposed exportation be 
authorized is no longer required. In place of 



this procedure, the Secretary of State will per- 
mit the exportation to Cuba of the arms, ammu- 
nition, and implements of war enumerated in 
the President's proclamation of May 1, 1937 only 
when applications for license to export these 
articles and materials bear the stamp of ap- 
proval of the Cuban Embassy. All applications 
of this character should, therefore, be submitted 
in the first instance by the applicant to the Cuban 
Embassy for transmission to the Secretary of 
State. 



Europe 



PROPOSAL FOR FINNISH-SOVIET PEACE 



[Released to the press November 7] 

The text of a memorandum of conversation 
was prepared by Mr. Sumner Welles, Under 
Secretary of State, on August 18 immediately 
after his conversation with the Minister of 
Finland, Mr. Hjalmar J. Procope. It was in 
this conversation that the Finnish Minister was 
apprised that the Soviet Union was prepared 
to discuss a Finnish-Soviet peace on the basis 
of territorial compensation to Finland. 

The text of the memorandum of conversation 
reads as follows : 

"The Minister of Finland called to see me 
this afternoon at mj' request. 

"I told the Minister that I wished to inform 
him in the utmost confidence that this Govern- 
ment had received information to the effect 
that should the Government of Finland be so 
disposed, the Soviet Government was prepared 
to negotiate a new treaty of peace with Finland 
which would involve the making of territorial 
concessions by the Soviet Union to Finland. 

"I said that I was communicating this infor- 
mation as a transmitting agent and that at the 
moment I was expressing no official opinion 
with regard thereto. I said that I wished to 
make it, however, completely clear that the in- 
formation I was giving the Minister implied in 



no sense whatever any weakening on the part 
of the Soviet Government. I said that, from 
the oflicial statements made to us by the Soviet 
Union and from every other evidence available 
to this Government, the Soviet Government is 
not only resisting magnificently German ag- 
gression against Russia but is likewise prepared 
to figlit indefinitely against Germany, and that 
from our knowledge of the military situation 
there seemed every reason to suppose that Rus- 
sia may do so successfully and for a protracted 
period. I said that this information referred 
solely to Finland and should consequently be 
viewed solely in that light. 

'"The Minister at once raised certain obvious 
questions. First, in view of the experience Fin- 
land liad had with the Soviet Union in 1939, 
what guarantees would Great Britain and the 
United States offer Finland that any peace 
treaty which the Soviet Union might now be 
disponed to negotiate would be maintained? 
Second, what assurance would Finland be given 
that, in the event that Germany was defeated 
and the Soviet Union were to become the pre- 
dominant military power, Russia would respect 
any promises which Great Britain or the United 
States might have made and would not again 
undertake to seize Finland and deprive the Fin- 
nish people of their independence? 



NOVEMBKR 8, 194 1 



363 



"I replied that these questions were ques- 
tions which I was not prepared to discuss. 
I said it seemed to me, first of all, that it 
was necessary to determine what the attitude 
of Finland might be with regard to the pos- 
sibilities which I liad communicated to the 
Minister and that consequently the questions 
which he had raised were questions which 
need only come up for discussion in the event 
that the Government of Finland desired to ex- 
plore these possibilities. 

"I said further that it appeared to me that 
the question was a momentous one for the 
Finnish Government to determine. I added 
that in view of the considerations the Min- 
ister had advanced I wondered what guar- 
antees or assurances Finland thought she would 
have of retaining her own independence and 
autonomy if Germany succeeded in winning 
and were then the overlord of all of Europe. 
I said that in such event Finland could look 
to no one for assistance whereas if Germany 
were defeated she would have many extremely 
powerful friends on her side." 

At the same time the Department of Stat© 
released to the press the pertinent part of a 
memorandum of conversation prepared by the 
Secretary of State, Cordell Hull, immediately 
after his conversation with the Minister of 
Finland, Mr. Hjalmar J. Procope, on October 
3, 1941 : 

"The Minister of Finland called at my re- 
quest. I proceeded at once to say that it 
was unnecessary to go over the pros and cons 



of the situation as the war relates to Finland 
and to the United States, or to the likes and 
dislikes of either Government with respect to 
Stalin and Hitler or their respective coun- 
tries. I said that as heretofore stated by me 
to the Minister, I am glad to see Finland re- 
cover her lost territory. My Government, and 
country and I have been loyal friends of 
Finland and would like very much to see our 
fine relations continue, but even this consid- 
eration was beside the governing question just 
now. That question, which is of the gi-eat- 
est importance to my country without contem- 
plating the slightest injustice to Finland and 
her best interests, relates to the future safety 
of the United States and of all peaceful coun- 
tries in the world; that this Government, pro- 
foundly convinced as it is, that Hitler, prac- 
ticing loathsome barbaric methods, is under- 
taking to conquer the earth; that in these cir- 
cumstances my counti-y is expending and is 
ready to exi)end 15 or 25 or 40 or 75 billions 
of dollars to aid in resisting and suppressing 
Hitler and Hitlerism ; therefore, the one ques- 
tion uppermost in the mind of my Govern- 
ment with respect to Finland is whether Fin- 
land is going to be content to regain her lost 
territoiy and stop there, or whether she will 
undertake to go further, if she has not already 
done so, so that the logical effect of her course 
and action would be to project her on the 
side of Hitler into the general war between 
Germany and Russia and the other countries 
involved." 



CLAIMS AGAINST GERMANY IN THE CASE OF THE "ROBIN MOOR" 



[Released to the press Novpmber 3] 

On June 20, 1941 the State Department sent 
to the German Embassy in Waslungton, for 
the information of the German Government, 
the President's message to the Congress regard- 
ing the sinking of the Robin Moor> 



' Bulletin of .Tune 21, 1041, p. 741. 
425918 — 41 2 



The German Charge d'Affaires replied on 
June 24, 1941 as follows: 

"Washington, D. C, 

''J'tme €4., 194i. 
"Mr. Undersecretary of State : 

"In reply to your note of the 20th of this 
month, I have the honor to advise you that I 



364 



DEPARTMENT OF STATE BULLETIN 



do not find myself in a position to pass on, 
in accordance with your request, the text sent 
to me of a message to Congress from the Pres- 
ident of the United States of America for the 
information of my Government. 
"Accept [etc.] Thomsen" 

On September 19 the Department sent a fur- 
ther note to the German Embassy, the text of 
which is as follows: 

"Septembek 19, 1941. 
"Sib: 

"Reference is made to the Department's com- 
munication of June 20, 1941 with which there 
was transmitted, by direction of the Presi- 
dent of the United States, a copy of a message 
addressed on that date by the President to the 
Congress of the United States in which it was 
stated that the German Government would be 
expected to make full reparation for the losses 
and damages sustained by American nationals 
as a consequence of the unlawful sinking of the 
American vessel Robin Moor by a German sub- 
marine on May 21, 1941 in the south Atlantic 
Ocean. 

"I now have to inform you that after an 
investigation undertaken for the purpose of 
ascertaining the extent of the losses and damages 
sustained, and with a view to effecting a prompt 
liquidation of the matter, the Government of 
the United States is prepared to accept, for 
appropriate distribution by it, the lump sum of 
$2,967,092.00, currency of "the United States, in 



satisfaction and full settlement of all claims of 
the United States and its nationals against the 
German Government for losses and damages 
sustained as a consequence of the sinking, sub- 
ject, however, to the condition that payment of 
that sum by the German Government be effected 
at Washington within ninety days from this 
date. While the sum mentioned includes an 
amount representing the value of property of 
this Government which was on board the vessel, 
no item of punitive damages is included. 
"Accept [etc.] Cordell Hull" 

This last note was acknowledged by the Ger- 
man Embassy on the same day with a statement 
that the contents of the note had been trans- 
mitted to the Gennan Government. 

Later, on September 26, the German Embassy 
sent the following communication to the Depart- 
ment of State : 

"Washington, D. C, 

''September 26, 19p. 
"Mr. Secretary of State : 

"On the 19th day of this month you sent me 
a new note with reference to your communica- 
tion of June 20 of this year concerning the 
American steamer Robin Moor. I have the 
honor to reply to you herewith that the two com- 
munications made are not such as to lead to an 
ai>i)ropriute reply by my Government. In this 
regard I refer to my note of June 25th [June 
24] of this year. 

"Accept [etc.] Thomsen" 



LEND-LEASE AID TO THE SOVIET UNION 
THE MOSCOW CONFERENCE 



At the final meeting on October 1 of the con- 
ference of representatives of the United States 
of America, Great Britain, and the Union of 
Soviet Socialist Eapublics. which opened in 
Moscow on September 29, 1941, to determine 
the defense needs of the Soviet Union.' the 
American representative, Mr. Averell Harri- 
man, made the following address - on his own 



behalf and on behalf of Lord Beaverbrook, the 
representative of Great Britain : 

' Conversations at sea between President Roosevelt 
and Prime Minister Cliurcliill, and a joint message sent 
by them on August 15, 1941 to the President of the 
Soviet of People's Commissars of the Union of Soviet 
Socialist Republics, laid the groundwork for the con- 
ference. See the Bulletin of August 16, 1041, p. 134 : 
August 23, p. 147 : and September 6, p. 180. 

' As translated from the Russian press release. 



NOVEMBER 8, 1941 



365 



"The Moscow conference of the represent- 
atives of the Governments of the Union of Soviet 
Socialist Republics, the United States of Amer- 
ica, and Great Britain has ended. 

"The delegates to the conference were sent 
here in order to examine the question of the 
needs of the Soviet Union, which is fighting 
against the Axis powers, for supplies which 
the United States and Great Britain must 
deliver. 

"The conference, which has taken place imder 
the chairmanship of Mr. ]\Iolotov, the People's 
Commissar for Foreign Affairs, carried on its 
work since Monday without interruption. The 
conference examined the question of the re- 
sources of the Soviet Govermnent in connection 
with the production possibilities of the United 
States and Great Britain. 

"The conference decided to place at the dis- 
posal of the Soviet Government practically 
everything which was requested by the Soviet 
military and civil authorities. The Soviet Gov- 
ernment is supplying Great Britain and the 
United States with large quantities of raw ma- 
terials which are urgently needed by those 
countries. 

"The question of transport possibilities has 
been examined in detail, and plans have been 
worked out for increasing the flow of freight 
in all directions. 



"Mr. Stalin has instructed me and Lord 
Beaverbrook to transmit his thanks to the 
United States and Great Britain for the gen- 
erous deliveries of raw materials, machine tools, 
and armaments with which the Soviet forces will 
be in a position innnediately to strengthen their 
defense and to develop vigorous attacks against 
the invading armies. 

"Lord Beaverbrook and I, on behalf of our 
Governments, confirm the receipt from the 
Soviet Government of large deliveries of Rus- 
sian raw materials, wliich will considerably 
assist armaments production in our countries. 

"We note the cordiality with which the con- 
ference was imbued and which made it possible 
to conclude an agreement in record short time. 
We particularly note the completely sympa- 
thetic cooperation and understanding on the 
part of Mr. Stalin. We express our thanks to 
Mr. Molotov for his excellent management of 
the conference in his capacity as chairman, and 
to all the Soviet representatives for their 
assistance. 

"In completing its work, the conference de- 
clares that it is the determination of the three 
Governments to establish, after the final destruc- 
tion of Nazi tyranny, a peace which will give 
all countries an opportunity to live in security 
on their own territory without knowing either 
fear or want." 



EXCHANGE OF CORRESPONDENCE BETWEEN THE PRESIDENT OF THE UNITED STATES AND 

OFFICIALS OF THE SOVIET UNION 



[Released to the press November 6] 

A paraphrase of the text of a letter addressed 
by the President under date of October 30, 
1941 to Joseph Stalin follows : 

I have examined the record of the Moscow 
Conference and the members of the mission 
have discussed the details with me. All of the 
military equipment and munitions items have 
been approved and I have ordered that as far 
as possible the delivery of raw materials be 
expedited. Deliveries have been directed to 
commence immediately and to be fulfilled in 
the largest possible amounts. In an effort to 



obviate any financial difficulties immediate ar- 
rangements are to be made so that supplies 
up to one billion dollars in value may be ef- 
fected under the Lend-Lease Act. If approved 
by the Government of the U.S.S.R. I propose 
that the indebtedness thus incurred be subject 
to no interest and that the payments by the 
Government of the U.S.S.R. do not commence 
until five years after the war's conclusion and 
be completed over a ten-year period thereafter. 
I hope that special efforts will be arranged 
by your Government to sell us the available 
raw materials and commodities which the 



366 

United States may need urgently under the 
arrangement that the proceeds thereof be cred- 
ited to the Soviet Government's account. 

At this opportunity 1 want to tell you of 
the appreciation of the United States Govern- 
ment for the expeditious handling by you and 
your associates of the Moscow supply confer- 
ence, and to send you assurances that we will 
carry out to the limit all the implications 
thereof. I hope that you will communicate with 
me directly without hesitation if you should 
so wish. 



A paraphrase of the text of a letter ad- 
dressed by Joseph Stalin under date of Novem- 
ber 4, 1941 to the President of the United 
States follows : 

The American Ambassador, Mr. Steinhardt, 
through Mr. Vyshinski, presented to me on 
November 2, 1941 an aide-memoire containing 
the contents of your message, the exact text 
of which I have not yet received. 

First of all I would like to express my sin- 
cere thanks for your appreciative remarks re- 
garding the expeditious manner in which the 
conference was handled. Your assurance that 
the decisions of the conference will be carried 
out to the limit is deeply appreciated by the 
Soviet Government. 

Your decision, Mr. President, to grant to the 
Soviet Union a loan in the amount of one bil- 
lion dollars subject to no interest charges and 
for tlie puri)ose of paying for armaments and 
raw materials for the Soviet Union is accepted 
with sincere gratitude by the Soviet Govern- 
ment as unusually substantial aid in its difficult 
and great struggle against our conmion enemy, 
bloodthirsty Hitlerism. 

I agree completely, on behalf of the Govern- 



DKPARTMENT OF STATE BULLETIN 

ment of the Soviet Union, with the conditions 
which you outlined for this loan to the Soviet 
Union, namely that payments on the loan shall 
begin five years after the end of the war and 
shall be completed during the following ten- 
year period. 

The Government of the U.S.S.R. stands 
ready to expedite in every possible way the 
supplying of available raw materials and goods 
required by the United States. 

I am heartily in accord with your proposal, 
Mr. President, that we establish direct personal 
contact whenever circumstances warrant. 

[Released to the press November 6] 

The text of a telegram sent by the President 
of the United States to His Excellency Michail 
Kalinin, President, All Union Central Execu- 
tive Committee. Kuibyshev (U.S.S.R.), fol- 
lows : 

"The White House, 

''Navember 7, 191,1. 

"l^pon the national anniversai-y of the Union 
of the Soviet Socialist Republics I wish to ex- 
tc7id to you my felicitations and sincere good 
wishes for the well being of the people of your 
country and to tell you how enheartening the 
valiant and determined resistance of the army 
and people of the Soviet Union to the attacks 
of the invader is to the people of the United 
States and to all forces which abhor aggres- 
sion. I am confident that the sacrifices and 
sufferings of those who have the courage to 
struggle against aggression will not have been 
in vain. 

"1 wish to assure you of the desire of the 
Government and people of the United States 
to do everything possible to assist your coun- 
try in this critical hour. 

Franklin D Roosevelt" 



LETTER OF THE PRESIDENT TO THE LEND-LEASE ADMINISTRATOR 



1 Released to the press by the White House November 7] 

The following letter was addressed by the 
President on November 7, 1941 to the Honor- 
able Edward R. Stettinius, Jr., Lend-Lease 
Administrator : 



"On November 7, 1941, I addressed a letter 
to His Excellency President Kalinin in which 
I congratulated him upon the national anni- 
versary of the Union of Soviet Socialist Re- 
publics and expressed the admiration of the 



NOVEMBEB 8, 1941 



367 



people of the United States for the 'valiant and 
determined resistance of the army and people 
of the Soviet Union' and the determination of 
the United States that the 'sacrifices and suf- 
ferinjis of those who have the courage to strug- 
gle against aggression will not have been in 
vain'. 

"In that letter I assured President Kalinin 
'of the desire of the Government and people of 
the United States to do everything possible to 
assist your country in this critical hour.' 

"In accordance witi that pledge and pursu- 
ant to the power conferred upon me by the 



Lend-Lease Act, I have today found that the 
defense of the Union of Soviet Socialist Re- 
publics is vital to the defense of the United 
States. I therefore authorize and direct you 
to take immediate action to transfer defense 
supplies to the Union of Soviet Socialist Re- 
publics under the Lend-Lease Act and to carry 
out the terms of my letter of October 30, 1941 
to Premier Stalin. 

"I should appreciate it if you would work 
out as quickly as possible details of this pro- 
gram with representatives of the Union of 
Soviet Socialist Republics." 



THE UNFORGOTTEN NATIONS 
ADDRESS BY ASSISTANT SECRETARY BERLE ' 



[Released to the press November 8] 

Mr. Ambassador, Mr. Minister : 

I am very sure that I represent the senti- 
ments not only of the Government of the 
United States, but of the American public, in 
welcoming to Washington M. Spaak, the Min- 
ister of Foreign Affairs of the Kingdom of 
Belgium. The people of the United States 
have always had the warmest affection for Bel- 
gium and for its leaders. During the World 
War of 1914, we admired the gallant stand of 
a country which was the first to bear the brunt 
of German invasion and which for four long 
years maintained its nationhood under the heel 
of a ruthless occupation. 

Bj' tragic destiny, many of the men who to- 
day maintain the life of Belgium through a 
new, greater, and a more cruel oppression were 
men who themselves suffered as soldiers, as 
prisoners, or as exiles, during the warfare of 
25 years ago. Let me express my absolute con- 
viction that the nationhood of Belgium is as 
unconquerable today as it was in 1914, that the 



' Delivered in reply to the speeches of M. Spaak, 
Minister of Foreign Affairs of Belgium, and Count 
Robert van der Straten-Ponthoz, Belgian Ambassador 
to Washington, at the Belgian Embassy, Washington, 
and broadcast over the National Broadcasting Co., 
November 7, 1941. 



resurrection of Belgium is as sure, and that her 
ultimate, triumph will be as great. 

As the material of history is being assembled, 
we are increasingly aware of the fact that the 
resistance of Belgium to the Nazi legions in 
the spring of 1940 was heroic to a degree far 
beyond the reports which we then had. Our 
journalists and our observers have borne wit- 
ness to the bravery of the Belgian soldiers who 
died in their tracks in a desperate attempt to 
prevent the tide of mechanized warfare from 
reaching the sea. When the overpowering 
force of a huge military nation crushed her 
small army, the ruler of Belgium preferred to 
be a prisoner rather than to be puppet. 

Though its King is captive, the Belgium of 
today is far more than a hope. Its Government 
is functioning and the work of its Cabinet is 
attested by the presence of M. Spaak. The Bel- 
gian territories in Africa, unconquered, at once 
pooled their resources with those of the free 
nations. Her colonies set to work to provide 
essential war materials. Her men stand guard 
in great stretches of the African coast. They 
are faithful to the Belgian tradition that as long 
as an inch of Belgian territorj^ remains free, 
there will be found on it Belgians who defend 
the existence of the nation in the certainty that 



368 



DEPARTMENT OF STATE BULLETIN 



their country will once more emerge from the 
valley of the shadow. 

Tonight we may take Belgium as an example 
of the unforgotten : The small nations of Europe 
who have faced military conquest, but are un- 
defeated ; who have met every attempt to divide 
thejTQ politically, but who remain unified; who 
have borne slavery, but who have refused to 
become slaves; whose combined spirit makes it 
certain that force and frightfulness will never 
serve to govern Europe and will never be trium- 
phant in the world. 

No detail of the struggle of these peoples goes 
umnarked. No item of cruelty is unrecorded. 
None of the individuals responsible for that 
cruelty will escape facing the consequence of 
what they do. 

Already the Nazi terrorists know this. Even 
today they are being forced to admit to the 
German people that terror has failed in Europe ; 
that the death and torture they have so freely 
dispensed is now endangering the very fabric of 
the Nazi regime. Desperately they are calling 
for its defense — as though any one could have 
allegiance to terror. 

Slowly the fact is becoming plain that the only 
life in the world worth living is a life conceived 
within a family of free and law-abiding nations. 
In this family we know of no slave nations. All 
are entitled to their place. As the tide of con- 
quest is rolled back, as surely it will be, the un- 
forgotten peoples will resume their rightful 
place in a world which once more holds its 
loyalty to justice and not force. 

Unquestionably it is hard for us to have to 
endure this struggle twice in a lifetime. M. 
Spaak was a prisoner during the previous "World 
War, at a time when many Americans, including 
myself, shouldered rifles to prevent militarism 
from dominating the world. A quarter century 
later it has to be done over again. Tliere are 
faint hearts who sometimes ask, "What is the 
use?" 

To those few we can bear witness that no 
struggle conceived in liberty and dedicated to 
the idea that free men working together can 
establish a better basis of life — no such struggle 
was ever in vain. Even beneath the tragedy and 



turmoil of the present warfare there are being 
forged the tools of a greater and more splendid 
civilization. We are learning the cooperation 
which is required in a family of nations. We 
are building the institutions of finance, of trans- 
port, of commerce, which will establish a greater 
opportunity for every individual, high and low ; 
and for the building of a system in which even 
the least of these, our brethren, are not for- 
gotten. 

At the close of the contest there will be count- 
less wounds which must be bound up. But there 
also will be a firm base upon which the next 
generation can go forward in greater brilliance, 
v.ith all of tlie resources which civilization has 
developed, and with the guidance of renewed 
knowledge that men cannot live by terror and 
hatred, but only in cooperation and in love. 

In that certainty, let me close with the words 
of an ancient prayer known throughout Europe 
and often heard in the Belgian cathedrals: 
"Solve vincla reis, profer lumen caecis." (Loose 
the bonds of captives, give light to those whose 
eyes are dim.) 



General 



CONTRIBUTIONS FOR RELIEF IN 
BELLIGERENT COUNTRIES 

[Released to the press November 5] 

The following persons and organizations are 
now registered with the Secretary of State, pur- 
suant to section 8 of the Neutrality Act of 1939, 
for the solicitation and collection of contribu- 
tions to be used in belligerent countries for medi- 
cal aid and assistance or for food and clothing 
to relieve human suffering. The countries to 
which contributions are being sent are given in 
2:)arentheses. For prior registrants, see the De- 
partment's press releases of May 16 and July 28, 
1941.^ 



^Bulletin if May 17, 1941, p. 584: and August 2. 
1941, p. 89. 



NOVEMBER 8, 1941 



369 



499. Mrs. Eveliue Mary Paterson, in care of the 
Honorable I. H. Morse, Warren, N. H, (Great 
Britain and Germany) 

.''.00. National America Denmark Association, 2452 West 
Addison Street, Chicago, 111. (Denmark and Eng- 
land) 

501. The Fields, Inc., 75 Maiden Lane, New York, N. T. 
(Great Britain) 

502. Committee for Emergency Aid to Refugees, Post 
Office Box 268, Station D, New York, N. Y. (Norway, 
France, the United Kingdom, and Germany) 

503. Yugoslav War Relief, 2428-30 Washington Road, 
Kenosha, Wis. (Yugoslavia) 

504. Agudas Israel of America, 673 Broadway, New 
York, N. Y. (All belligerent countries) 

505. Aid to Britain, in care of Mrs. Hubert Martineau, 
Apartment 1702, Pierre Hotel, Sixtieth Street and 
Fifth Avenue, New York, N. Y. (Great Britain and 
Germany) 

506. Lithuanian Charities Institute, Inc., in the U.S.A., 
1844 West Twenty-first Street, Chicago, 111. (Lithu- 
ania, England, Germany, and Italy) 

507. Les Filles de France, 453 FuUerton Parkway, 
Chicago, 111. (France) 

508. Mr. Moses Schonfeld, 55 Leonard Street, New 
York, N. Y. (Great Britain) 

.509. Aid for the Cote-Ba.sque, in care of Mrs. Cooper 
Howell, Bluebell, Montgomery County, Pa. (France) 

510. Danish-American Knitting and Sewing Groups, 
88 Eighty-first Street, New York, N. Y. (All bel- 
ligerent countries) 



.511. State Industrial Kmployes-Aid to Britain Fund, 
7 Winthrop Street, Millers Falls, Mass. (England) 

512. Latvian Relief, Inc., 92 Liberty Street, New York, 
N. Y. (Latvia) 

513. Camp Little Norway Association, 4833 Thirteenth 
Avenue South, Minneapolis, ]\Iinn. (Norway and 
Canada) 

514. British Civil Defense Emergency Fund, 570 Lex- 
ington Avenue, New York, N. Y. (Great Britain) 

515. American Friends of Norway, Inc., 8 West Fortieth 
Street, New York, N. Y. (Canada, England, and 
Norway) 

.">16. Contact Service Co., 122 East Forty-second Street, 
Room .533, New York, N. Y. (Great Britain, Poland, 
France, and Belgium) 

517. Norwegian Seamen's Christmas and Relief, In- 
corporated, Room 1306, 80 Broad Street, New York. 
N. Y. (Canada and the West Indies) 

518. France Forever War Relief Association, 1199 Caro- 
lina Street, Manila, P. I. (United Kingdom) 

519. French War Veterans Association of Illinois, in 
care of Mr. Marcel Garancher, 2306 Grace Street, 
Chicago, 111. (France) 

520. The San Francisco Committee for the Aid of the 
Russian Disabled Veterans of the World War, 2041 
Lyon Street, San Francisco, Calif. (Bulgaria, Yugo- 
slavia, and France) 

521. Scandinavian-American Business Association, Inc., 
4919 Fifth Avenue, Brooklyn, N. Y. (Norway and 
United Kingdom) 



Cultural Relations 



RADIO ADDRESS BY ASSISTANT SECRETARY SHAW ^ 



[Released to the press November 8] 

Cultural relations means simply that you are 
interested in what your neighbor is thinking 
and doing and you hope that he is similarly 
interested in you; you recognize that he has 
something worthwhile to give you and in re- 
turn you would like to make available to him 
the best that your own experience affords; you 
want to pay him a visit and you would be 
glad if he came to see you; you believe that 
this mutual interest, this exchange of experi- 
ences, these visits cannot fail to result in a 



^ Delivered over the blue network of the National 
Broadcasting Co., November 7, 1941. 



better understanding and a wider recog- 
nition that nations, like individuals, are 
interdependent. 

Let us take a look at some of the tangible 
means by which this structure of cultural re- 
lations between the peoples of the Americas 
is being built. Individuals as well as insti- 
tutions all have a pait in it. In one direction 
it is a Boy Scout from Venezuela who brings 
a message of comradeship to the Boy Scouts 
of this country, or it is a distinguished Brazil- 
ian artist who is decorating one of the halls 
of the Library of Congress with his murals; 
in the other direction, it is a boy from New 



370 



DEPARTMENT OF STATE BULLETIN 



York who visits Rio cle Janeiro as the unofficial 
envoy of the youth of his home city, or it is 
one of our most eminent scholars, who ad- 
dresses gatherings in Pei'U in the language of 
the country. Colleges and universities, pri- 
vate organizations, and business firms are co- 
operating with our Government and with the 
Governments of the other American republics 
in, making it possible for Latin American 
students and professors to carry on their work 
in this country and for the students and uni- 
versity teachers of the United States to spend 
time in study and teaching in Latin America. 
Special courses have been provided in the Uni- 
versities of North Carolina, Michigan, Penn- 
sylvania, and Columbia for large groups of 
students from Latin America, and many Amer- 
ican students have attended the special coui-ses 
provided for them in the Universities of Alex- 
ico City and Lima. From the countries to 
the south have come to us newspapermen repre- 
sentative of their press, physicians, writers, 
public administrators, and leaders in other 
fields of their national life. And in return 
there have gone from this country prominent 
scientists, novelists, librarians, and specialists 
in many other fields. Few things have been 
so productive of better reciprocal understand- 
ing as these comings and goings of men and 
women who represent the best there is in both 
cultures. 

Thousands of our outstanding books have 
been made available to the libraries of Latin 
America. Many books describing various as- 
pects of our national life are being translated 
into Spanish or Portuguese by Latin American 
publishers. Books of the Spanish-speaking 
countries and of Brazil are being translated 
into English so that we may become better ac- 
quainted with the thought of Latin America 
as expressed in its literature. An example of 
what may be done by the printed word to 
develop cultural relations between the Amer- 
ican republics is to be found in the Spanish 
edition of the Reader's Digest and the great 
popularity which it has enjoyed wherever 
Spanish is spoken. 



Another field in which there has been a fi'uit- 
ful interchange between ourselves and the 
southern countries is that of music. We are no 
longer strangers to the inspiriting music of 
Latin America, and the Latin Americans have 
become increasingly appreciative of the best in 
our own music. Some of the foremost concert 
artists of Latin America have made highly 
successful tours of the United States, and our 
singers and symphony orchestras have won 
acclaim in Latin America. The Yale Glee Club 
recently made a number of appearances in the 
capitals of South America, in the course of 
which it aroused great enthusiasm for our folk 
music. 

Cultural relations have to do not only with 
the things of the mind and the spirit, the things 
which we have associated with the idea of cul- 
ture in its narrower sense. It also involves 
cooperation in everything that would make life 
in the Americas more worth living for more 
Americans. It means making the experience 
of one country available to the people of other 
countries for utilization in accordance with 
their own judgment as to their needs. 

For instance, the International Health 
Board of the Rockefeller Foundation, the 
United States Public Health Service, and such 
far-flung business enterprises as the United 
Fruit Company have cooperated with the med- 
ical profession and the sanitary engineers of 
Latin America in combating disease. Literally, 
tliousands of lives have been saved and the 
health of millions has been improved through 
the cooperation in which these organizations 
have played a part. On their side, the Latin 
Americans have made original contributions 
of great value in the medical field. In the fight 
against malaria, we owe much to the research 
work of Cuban and Brazilian doctors and 
biologists; and the Brazilians at the world- 
famous Butantan Institute at Sao Paulo have 
pioneered in the development of snake-venom 
antitoxins. 

In the same spirit, we have given technical 
aid to the other American republics in develop- 
ing their economic resources. They have been 
made the beneficiaries of the lessons we have 



NOVEMBER 8, 1941 



371 



learned in agriculture and in the application 
of technology to industry. For instance, geol- 
ogists have done much in assisting to make the 
mineral wealth of Brazil known to its people. 
Dr. Branner, former president of Stanford 
University, one of the ablest of them, added to 
this service to the Brazilian mining industry 
the compilation of a Portuguese-English gram- 
mar, in which a generation of Americans 
studied the language of Brazil. American 
botanists and engineers have helped the sugar 
industry of Latin America to improve the 
({uality of its cane and the mechanical processes 
of its mills. Early this year, the Fish and 
Wildlife Service of the Department of the In- 
terior sent a mission to Peru, composed of 
scientists and practical fishermen, to demon- 
strate to the Peruvians ways of developing 
their deep-sea fisheries and marketing the 
catch. Also, during the past several years the 
Bureau of Public Roads has placed at the dis- 
posal of the Latin American countries its 
knowledge of highway engineering. 

Some of the Latin American countries ante- 
dated us in the development of social legisla- 
tion and have progressed further than we have 
in making provision against the normal haz- 
ards of life. They have led the world in estab- 
lishing the eight-hour day, which has been 
compulsory in LTruguay since 1915, and for 
public works in Chile since 1908. Several of 
the republics have advanced comprehensive 
systems of social insurance, that of Chile being 
more complete than our own social-security pro- 
gram. The Latin Americans and we of the 
United States can profit gi'eatly from each 
other's experience in the whole field of social 
welfare. 

We of the Americas share in common a fun- 
damental belief of the most far-reaching im- 
portance. We believe in the value of the indi- 
vidual human being whatever his race or creed 
or economic status may be, and in the unique 
significance of the contribution which that in- 
dividual human being can and should be able 
to make to the community to which he belongs. 
Because we hold such a belief with respect to 
the individuals who compose the nation, we 



desire the kind of international relations which 
promotes national e.xpression and which offers 
the maximum of free contacts among nations. 
That is the reason for the importance which we 
attach to our program of cultural relations. 



The Department 



BOARD CREATED IN PASSPORT DIVI- 
SION TO REVIEW NATIONALITY 

CASES 

[Released to the press November i] 

The Secretary of State issued the following 
Departmental order (no. 994) on November 4: 

"There is hereby created in the Passport Divi- 
sion, as of November 1, 1941, a Board of Review 
consisting of three persons, two of whom shall 
be senior attorneys having experience in citizen- 
ship and related matters. The third shall be a 
Foreign Service Officer, whenever one is avail- 
able for such assignment; othei'wise, an officer 
similarly qualified in citizenship work. The 
Assistant Chief of the Passport Division is des- 
ignated as adviser to the Board. 

"The Board will review all cases involving 
the loss of nationality under the nationality laws 
of the United States and will conduct, in appro- 
priate instances, formal or informal hearings. 
It will also handle such other matters as may 
be assigned to it by the Chief of the Passport 
Division. 

"The findings of the Board of Review will be 
subject to the approval of the Technical Ad- 
viser and Assistant Chief of the Passport Divi- 
sion, Mr. John J. Scanlan. 

"The Board will provide a forum for hear- 
ings and discussions in order to obviate as far 
as may be practicable hardships and inequities 
in the application of the new Nationality Act 
of 1940 and will make in every case reviewed by 
it a fornial record for the files of the Depart- 
ment with respect to the pertinent facts and laws 
involving the possible loss of nationality or other 
matter assigned to the Board. 



372 



DEPARTMENT OF STATE BULLETIN 



"The Chief of the Passport Division is hereby 
authorized to make such reguhitions as may be 
necessary to carry out the purpose of the estab- 
lishment of the Board of Review." 

The Passport Division expects to have ar- 
rangements completed to put this procedure into 
effect by November 15. 

APPOINTMENT OF OFFICERS 

Mr. Simon G. Hanson has been appointed an 
Assistant Chief of the Division of Studies and 
Statistics, effective October 20, 1941 (Depart- 
mental Order 990). 

Mr. J. Bartlett Richards, a Foreign Service 
officer of class IV. has been designated an Assist- 
ant Chief of the Office of Philippine Affairs, 
effective November 4, 1941 (Departmental Order 
996). 



The Foreign Service 



PERSONNEL CHANGES 

[Released to the press November S] 

The following changes have occurred in the 
American Foreign Service since November 1, 
1941: 

Career Officers 

Leland B. Morris, of Philadelphia, Pa., 
Counselor of Embassy at Berlin, Germany, 
has been assigned for duty in the Department 
of State. 

S. Pinkney Tuck, of New Brighton, N. Y., 
Counselor of Embassy at Buenos Aires, Ar- 
gentina, has been designated Counselor of Em- 
bassy at Vichy, France. 

George L. Brandt, of Washington, D. C, now 
serving in the Department of State, has been 
designated Counselor of Embassy at Berlin, 
Germany. 

H. Freeman Matthews, of Baltimore, Md., 
First Secretary of Embassy at Vichy, France, 
has been designated Counselor of Embassy at 
London, England. 

Edward L. Reed, of AVayne, Pa., now serving 



in the Department of State, has been designated 
Counselor of Embassy at Buenos Aires, Argen- 
tina. 

Gardner Richardson, of Woodstock, Conn., 
Commercial Attache at Istanbul, Turkey, has 
been designated First Secretary of Embassy at 
Berlin, Germany. 

Austin R. Preston, of Buffalo, N. Y., formerly 
Consul at Oslo, Norway, has been assigned 
as Consul at Lourengo Marques, Africa. 

Maurice L. Stafford, of Coronado, Calif., 
Consul at Guadalajara, Mexico, has been as- 
signed as Consul at Mexico, D. F., Mexico. 

Walton C. Ferris, of Milwaukee, Wis., Second 
Secretary' of Embassy and Consul at London, 
England, has been assigned for duty in the 
Department of State. 

Cabot Coville, of Los Angeles, Calif., now 
serving in the Department of State, has been 
assigned to Manila, P. I., to serve in the OflBce 
of the LTnited States High Commissioner to the 
Philippine Islands, under conmiissions as Con- 
sul and Second Secretary in pursuance of the 
provisions of section 8 of the act of August 7, 
1939. 

George M. Abbott, of Cleveland, Ohio, Con- 
sul at Marseille. France, has been assigned as 
Consul at Colombo, Ceylon. 

Sidney A. Belovsky, of Hornell, N. Y., for- 
merly Consul at Bremen, Germany, has been 
assigned as Consul at Windsor, Ontario, 
Canada. 

Harvey Lee Milbourne, of Charles Town, 
W. Va., Consul at AVindsor, Ontario, Canada, 
has been assigned as Consul at Calcutta, India. 

The assignment of Stanley G. Slavens, of 
Austin, Tex., as Consul at Osaka, Japan, has 
been cancelled. 

Donal F. McGonigal. of Troy, N. Y., formerly 
Vice Consul at Amsterdam, Netherlands, has 
been assigned as Vice Consul at Glasgow, Scot- 
land. 

The assignment of William C. Affeld, Jr., of 
Minneapolis, Minn., as Third Secretary of Lega- 
tion and Vice Consul at San Salvador, El Sal- 
vador, has been cancelled. In lieu thereof, Mr. 
Affeld has been designated Third Secretary of 
Legation at Guatemala, Guatemala. 



NOVEMBER 8, 1941 



373 



Leon L. Cowles, of Salt Lake City, Utah, Vice 
Consul at Barcelona, Spain, has been assigned 
as Vice Consul at Vigo, Spain. 

Frederick J. Mann, of Brooklyn, N. Y., Vice 
Consul at Kobe, Japan, has been assigned as 
Vice Consul at Osaka, Japan. 

Non-career Officers 

Wells Stabler, of New York, N. Y., has been 
appointed Vice Consul at Bogota, Colombia. 



Edwin L. Smith, of Hamburg, Ark., has been 
appointed Vice Consul at Moscow, U. S. S. R. 

Robert F. Corrigan, of Alexandria, Va., has 
been appointed Vice Consul at Rio de Janeiro, 
Brazil. 

William P. Shockley, Jr., of Dover, Del., for- 
merly Vice Consul at Dresden, Germany, has 
been appointed Vice Consul at Lisbon, Portugal. 



Treaty Information 



Compiled in the Treaty Division 



TELECOMMUNICATIONS 

North American Regional Broadcasting 

Agreement 

Dominican Republic 

The Department has been advised by a tele- 
gram dated November 5, 1941 from the Di- 
rector of the Inter-American Radio Office at 
Habana that the instrument of ratification by 
the Dominican Republic of the North Ameri- 
can Regional Broadcasting Agreement, signed 
at Habana on December 13, 1937, was deposited 
with the Cuban Government on November 5, 
1941. 



The agreement has been ratified by the 
United States of America, Canada, Cuba, Do- 
minican Republic, Haiti, and Mexico. 

SOVEREIGNTY 

Act of Habana and the Convention on the 
Provisional Administration of European 
Colonies and Possessions in the Americas 

Venezuela 

By a letter dated October 30, 1941 the Di- 
rector Greneral of the Pan American Union in- 



formed the Secretary of State that the instru- 
ments of ratification by Venezuela of the Act of 
Habana and the Convention on the Provisional 
Administration of European Colonies and Pos- 
sessions in the Americas, signed at Habana 
July 30, 1940, were deposited with the Union 
on October 22, 1941. The instruments of rati- 
fication are dated September 24, 1941. 



The countries which have deposited instru- 
ments of ratification of the convention are the 
United States of America, Argentina, Brazil, 
Costa Rica, Dominican Republic, El Salvador, 
Guatemala, Haiti, Panama, Peru, and Vene- 
zuela. The convention will enter into force 
when two thirds of the American republics 
have deposited their respective instruments of 
ratification. 

INDIAN AFFAIRS 

Convention Providing for the Creation of an 
Inter-Amekican Indian Institdte 

Ecuador 

The American Minister to Ecuador reported 
by a despatch dated October 11, 1941 that the 
Ecuadoran Congress on October 8, 1941 ratified 
without modifications the Convention Provid- 



374 



DEPARTMENT OF STATE BULLETIN 



ing for the Creation of an Inter- American In- 
dian Institute, which was opened for signature 
at Mexico City on November 1, 1940. 



Article X of the Convention Providing for 
the Creation of an Inter-American Indian Insti- 
tute provides that each nation subscribing to 
the convention shall organize within its respec- 
tive jurisdiction National Indian Institutes. 
Pursuant to the terms of the convention, which 
was ratified by the United States on June 6, 
1941, the President issued an Executive order 
on November 1, 1941 establishing in the Depart- 
ment of the Interior a National Indian Institute. 
The duties and functions of the Institute are 
described as follows: 

"Section 1. There is hereby established in the 
Department of the Interior a National Indian 
Institute for the United States of America, 
Miiich Institute shall be affiliated with the Inter- 
American Indian Institute. 

"Section 2. The National Indian Institute 
shall : 

"(a) Initiate and promote collaboration in 
the fields of Indian administration and the 
study of the Indian among Federal, State and 
private agencies, learned societies, and scholars 
in the United States, and the Inter-American 
Indian Institute, and through the Institute 
with governmental agencies, learned societies 
and scholars in the other American countries. 

"(b) Collaborate with the Inter-American 
Indian Institute, learned societies, and founda- 
tions in the coordination, development, and 
administration of research projects and studies 
relating to the Indian. 

"(c) Maintain liaison between agencies of 
the United States Government directly or in- 
directly concerned with Indian administration 
or Indian studies in this or other countries for 
the purpose of coordinating cooperation by the 
United States with other American nations in 
regard to Indian matters. 

"(d) Direct the preparation and publica- 
tion of materials dealing with Indian adminis- 
tration in the United States of interest to the 



other American nations, and to publish such 
other materials as may be required in connec- 
tion with authorized activities. 

"(e) Assemble and prepare library material 
and bibliographies dealing with Indian prob- 
lems. 

"(f) Collaborate with the Inter- American 
Indian Institute in planning for the Inter- 
American Conference on Indian Life. 

"(g) Submit an annual report to the Inter- 
American Indian Institute. 

"Section 3. The Institute shall be managed 
by a Director who, with other necessary' em- 
ployees, shall be appointed by the Secretary of 
the Interior, and its functions shall be admin- 
istered in the Bureau of Indian Affairs. The 
Institute shall use insofar as practicable such 
informational, fiscal, personnel, and otlier gen- 
eral business services and facilities as may be 
made available through the Interior Depart- 
ment or other agencies of the Government. 

"Sf-ctiox 4. There is hereby e^tablished a 
Policy Board of the Institute which shall rec- 
ommend policies to be followed by the Institute 
and which shall be composed of: 

"(a) The Commissioner of Indian Affairs. 

"(b) Two or more members, who may bo 
public officers or private citizens, to be ap- 
|)ointed by the Secretary of the Interior, at 
least one of whom shall be an Indian. 

"(c) One representative designated by the 
."Secretary of State. 

"(d) One representative designated by the 
Secretary of Agriculture. 

"(e) One representative designated by the 
Smithsonian Institution. 

"(f) One representative designated by the 
Librarian of Congress. 

"In addition to the foregoing, one represen- 
tative may be designated as a member of the 
Board by each of the following organizations'. 

"The National Kesearch Council. 
"The Social Science .Research Council. 
"The American Council of Learned Societies. 

"Section 5. The Chairman of the Board, 
who shall be designated by the Secretary of the 



NOVEMBER 8, 1941 



375 



Interior, shall call meetings of the Board, and. 
subject to tlie approval of the Board, may es- 
tablish advist)ry committees and may designate, 
as affiliates of the Institute, learned societies 
iind other organizations concerned with the 
study of the Indian and with Indian welfare. 
"Section 6. The members of the Board and 
the advisory committees may be reimbursed 
for necessary traveling expenses and subsist- 
ence, as provided by law." 



Legislation 



An Act To provide for the admission to Saint Eliza- 
beths Hospital of insane persons belonging to the 
Foreign Service of the United States. [H.R. 4498.] 
Approved, October 29, 1941. (Public Law 284, 77th 
Cong. ) 1 p. 



Publications 



Other Go\'eenment Agencies 

Department of Agriculture, Bureau of Agricultural 
Economics : Some General Histories of Latin America 
[with bibliography], by W. D. Rasmussen. 9 pp., 
processed. (Agricultural History Series No. 1.) Free. 

Department of Commerce, Bureau of Foreign and 



Domestic Commerce : International Reference Service, 
Volume I. Subscription, $6 a year ; single copy, 50. 

No. 45: Economic Conditions in Bolivia in 1940. 
4 pp. 

No. 46 : Trade of United States With Cuba in 1940. 
7 pp. 

No. 47: Trade of United Slates With Union of 
South Africa in 1940. 6 pp. 

No. 48: Trade of United States With Philippine 
Islands in 1940. n pp. 

No. 49: Trade of United States With Australia in 
1940. 5 pp. 

No. 50: Trade of United States With Venezuela in 
1940. 5 pp. 

No. 51: Trade of United States With Brazil in 
1940. 5 pp. 

No. 52 : China's Economic Position in 1940. 16 iip. 

No. 53,: Trade of United States With Mexico in 
1940. 6 pp. 

No. 54: Economic Conditions in Costa Rica in 
1940. 2 pp. 

No. 59 : Economic Conditions in El Salvador in 
1940. 3 pp. 

Department of Labor, Bureau of Labor Statistics: 
Labor Conditions in Latin America, iv, 19 pp. 
[Articles reprinted from Monthly Labor Review, Apr.- 
.Tuly 1941.] (Latin American Series No. 9.) Free. 

Tariff Commission : 

United States Imports From Japan and Their Rela- 
tion to Defense Program and to Economy of Country, 
vi, 239 pp., processed. Free. 

Regulation of Imports by Executive Action In 
Countries With Independent Tariff Jurisdiction, With 
Particular Reference to Developments Between the 
Two World Wars, Under Provisions of Sec. 338, Title 
3, Part 2, Tariff Act of 1930. vi, 106 pp. ( Miscellaneous 
Series.) 150. 



0. S. SOVKRNHtnT PRIMTIN8 OFFICCi 1941 



For Bale by the Superintendent of Documents. Washington, D. C. — Price, 10 cents - - . . Subscription price, ?2.75 a year 

PDBLISHKD WEEKLY WITH THE APPBOVAL OF THE DIEECTOB OF THE BnEEAD OF THE BODGET 



n "DOO, / r\ ^^ 



THE DEPARTMENT OF STATE 



BULLETIN 



NOVEMBER 15, 1941 
Vol, V, No. 125— Publication 1665 







ontents 




National Defense Page 

Revision of the Neutrality Act of 1939: 

Letter of the President to the Speaker and the 

Majority Leader of the House 379 

Letter of the Secretary of State to the Speaker and 

the Majority Leader of the House 380 

Control of persons entering and leaving the United 
States: 

Proclamation hy the President 381 

Requirements for the departure of aliens 383 

Requirements for the entry of aliens 384 

Requirements for the departure and entry of Ameri- 
can citizens 384 

Alleged promotion of British commercial interests to 

disadvantage of American interests 385 

The Proclaimed List of Certain Blocked Nationals: 

Issuance of Supplement No. 3 388 

Guatemalan coffee exports 388 

American Republics 

Statement by the Secretary of State regarding speech 

of the President of Brazil 388 

Inter-American Communication and Transportation: 

Radio address by Assistant Secretary Long .... 388 

General 

Memorial services at the tomb of Woodrow Wilson: 

Address by the Under Secretary of State 391 

The Foreign Service 

Personnel changes 393 

Regulations 395 

Publications 395 



U. S. SUPERINTENDENT OF DOCUMENTS 
DEC 4 1941 



National Defense 



REVISION OF THE NEUTRALITY ACT OF 1939 ^ 
LETTER OF THE PRESIDENT TO THE SPEAKER AND THE MAJORITY LEADER OF THE HOUSE 



The text of a letter addressed by the President 
to the Honorable Sam Rayburn, Speaker of the 
House, and the Honorable John W. McCor- 
mack, Majority Leader of the House, follows: 

"My Deah Mr. Speaker and Mr. McCormack: 

"I had had no thought of expressing to the 
House my views of the effect, in foreign coun- 
tries and especially in Germany, of favorable 
or unfavorable action on the Senate amend- 
ments. 

"But in view of your letter, I am replying as 
simply and clearly as I know how. 

"In my message of October 9, 1 definitely rec- 
ommended arming of ships and removing the 
prohibition against sending American-flag 
ships into belligerent ports. Both I regarded 
as of extreme importance — the first I called of 
immediate importance at that time. This did 
not lessen the importance of the second. An- 
other month has gone by, and the second I re- 
gai'd today as of at least equal importance with 
the first. 

"In regard to the repeal of sections 2 and 3 
of the Neutrality Act, I need only call your at- 
tention to three elements. The first concerns 
the continued sinking of American-flag ships 
in many parts of the ocean. The second relates 
to great operational advantages in making con- 
tinuous voyages to any belligerent port in any 
part of the world; thus, in all probability in- 
creasing the total percentage of goods — food- 



' Sections 2, 3, and 6 of the Neutrality Act of 1939 
were repealed by Public Law 294, approved November 
17, 1941. 

427172 — 41 1 



stuffs and munitions — actually delivered to 
those nations fighting Hitlerism. The third is 
the decision by the Congress and the Executive 
that this Nation, for its own present and future 
defense, must strengthen the supply line to all 
of those who are today keeping Hitlerism far 
from the Americas. 

"With all of this in mind, the world is obvi- 
ously watching the course of this legislation. 

"In the British Empire, in China, and in Rus- 
sia — all of whom are fighting a defensive war 
against invasion — the effect of failure of the 
Congress to repeal sections 2 and 3 of the Neu- 
trality Act would be definitely discouraging. 
I am confident that it would not destroy their 
defense or morale, though it would weaken 
their position from the point of view of food 
and munitions. 

"Failure to repeal these sections would, of 
course, cause rejoicing in the Axis nations. 
Failure would bolster aggressive steps and in- 
tentions in Germany, and in the other well- 
known aggressor nations under the leadership 
of Hitler. 

"Judging by all recent experience, we could, 
all of us, look forward to enthusiastic applause 
in those three nations based on the claim that 
the United States is disunited as they have so 
often prophesied. 

"Our own position in the struggle against ag- 
gi-ession would be definitely weakened, not only 
in Europe and in Asia, but also among our sister 
republics in the Americas. Foreign nations, 
friends and enemies, would misinterpret our 
own mind and purpose. 

379 



380 

"I have discussed this letter with the Secre- 
tary of State and he wholeheartedly concurs. 

"May I take this opportunity of mentioning 
that in my judgment failure of the House to 
take favorable action on the Senate amendments 
would also weaken our domestic situation? 
Such failure would weaken our great effort to 
produce all we possibly can and as rapidly as 
we can. Strikes and stoppages of work would 
become less serious in the mind of the public. 

"I am holding a conference tomorrow in the 



DEPARTMENT OF STATE BULLETIN 

hope that certain essential coal mines can re- 
main in continuous operation. This may prove 
successful. 

"But if it is not successful it is obvious that 
this coal must be mined in order to keep the 
essential steel mills at work. The Government 
of the United States has the backing of the over- 
whelming majority of the people of the United 
States, including the workers, 
"Very sincerely yours, 

Franklin D Roosevelt" 



LETTER OF THE SECRETARY OF STATE 

LEADER OF 

[Released to the press November 13] 

The text of a letter addressed by the Secre- 
tary of State to the Honorable Sam Rayburn 
and the Honorable John W. McCormack of the 
House of Representatives follows: 

"November 13, 1911. 
"Mt Dear Mr. Speaker: 
"My Dear Mr. AIcCormack: 

"In response to your request for my views on 
H.J. Res. 237, which provides for the repeal 
of sections 2, 3, and 6 of the Neutrality Act of 
1939, 1 offer the following brief comment apart 
from the points covered in the President's let- 
ter to you of this date. 

"It is my judgment that in the light of exist- 
ing conditions the passage of this bill is abso- 
lutely essential to our national defense. Tliese 
conditions are completely different from those 
existing at the time the Neutrality Act was 
passed; they present an entirely new problem 
of danger and of methods for dealing with it. 

"The Neutrality Act represented an endeavor 
to avoid the limited danger which might arise 
from the entrance of American citizens and 
American ships into areas of hostilities far 
from our own shores. The provisions of that 
Act did not and could not visualize the vast 
danger which has since arisen from a world 
movement of invasion under Hitler's leader- 
ship, and which is now moving steadily in 
the direction of this hemisphere and this 
country. 



TO THE SPEAKER AND THE MAJORITY 
THE HOUSE 

"As a part of this movement of conquest, 
the greatest intermediate objective of Hitler's 
armed forces is to capture Great Britain and 
to gain control of the high seas. To this end. 
Hitler has projected his forces far out into the 
Atlantic with a policy of submarine ruthless- 
ness. By intimidation and terror he would 
drive our ships from the high seas, and ships 
of all nations from most of (he North Atlan- 
tic. Even in the waters of the Western Hemi- 
sphere he has attacked and destroyed our ships, 
as well as ships of other American republics, 
with resulting loss of American lives. 

"The breadth of our self-defense must at all 
times equal the breadth of the dangers which 
threaten us. In the circumstances of today, 
we must be free to arm our merchant ships 
for their own protection; and we must be free, 
in the event of particular and extreme 
emergency, to use these ships for the carriage 
of supi)lies to nations which are resisting the 
world-wide movement of conquest headed in 
our direction. This Government would, of 
course, use caution in carrying out the power 
which it could exercise upon the passage of the 
bill. 

"To maintain our security we must pursue a 
resolute course in a world of danger and be 
prepared to meet that danger. We must take 
measures of defense whenever necessity 
arises. We cannot promote much less preserve 



NOVEMBER 15, 1941 

our safety by a course of inactivity and com- 
placency in the face of a peril which is com- 
ing toward us. Other countries and especially 
countries unfriendly to us will necessarily as- 
sume that this bill has been discussed and dealt 
with on its own merits. I hope this will be 
kept in mind. 

"The paramount duty of this Government is 



381 

to preserve the safety and security of our 
country. I would be neglecting the responsi- 
bility of my office if I did not state the frank 
opinion that there is imperative need for the 
passage of this bill to enable our Government 
effectively to carry out this duty. 
"Sincerely yours, 

CoKDixi Hull" 



CONTROL OF PERSONS ENTERING AND LEAVING THE UNITED STATES 

PROCLAMATION BY THE PRESIDENT 



[Released to the press November 14] 

On November 14 the President issued the 
following proclamation (no. 2523) entitled 
"Control of Persons Entering and Leaving the 
United States" : 

"Whereas the act of Congi-ess approved on 
May 22, 1918 (40 Stat. 559), as amended by 
the act of Congress approved on June 21, 1941 
(Public Law 114, 77th Cong., chap. 210, 1st 
sess., 55 Stat. 252) vests authority in me to 
impose restrictions and prohibitions in addi- 
tion to those otherwise provided by law upon 
the departure of persons from and their entry 
into the United States when the United States 
is at war, or during the existence of the na- 
tional emergency proclaimed by the President 
on May 27, 1941,^ or, as to aliens, whenever 
there exists a state of war between or among 
two or more states, and when I find that the 
Interests of the United States so require; and 

"Whereas the national emergency pro- 
claimed by me on May 27, 1941 is still existing ; 
and 

"Whereas there unhappily exists a state of 
war between or among two or more states and 
open hostilities engage a large part of the 
Eastern Hemisphere; and 

"Whereas the exigencies of the present 
international situation and of the national 
defense require that restrictions and prohibi- 
tions, in addition to those otherwise provided 



' Bulletin of May 31, 1941, p. 654. 



by law, be imposed upon the departure of per- 
sons from and their entry into the United States, 
including the Panama Canal Zone, the Com- 
monwealth of the Philippines, and all terri- 
tory and waters, continental or insular, sub- 
ject to the jurisdiction of the United States: 

"NoAV, therefore, I, Franklin D. Roose\'elt, 
President of the United States of America, 
acting under and by virtue of the authority 
vested in me as set forth above, do hereby find 
and publicly proclaim and declare that the 
interests of the United States require that re- 
strictions and prohibitions, in addition to 
those otherwise provided by law, shall be im- 
posed upon the departure of persons from and 
their entry into the United States, including 
the Panama Canal Zone, the Commonwealth of 
the Philippines, and all territory and waters, 
continental or insular, subject to the jurisdic- 
tion of the United States; and I make the fol- 
lowing rules, regulations, and orders which 
shall remain in force and effect until other- 
wise ordered by me : 

"(1) After the effective date of the rules 
and regulations hereinafter authorized, no citi- 
zen of the United States or person who owes 
allegiance to the United States shall depart 
from or enter, or attempt to depart from or 
enter, the United States, including the Panama 
Canal Zone, the Commonwealth of the Philip- 
pines, and all territory and waters, continental 
or insular, subject to the jurisdiction of the 



382 



DEPARTMENT OF STATE BULLETIN 



United States, unless he bears a valid passport 
issued by the Secretary of State or, under his 
authority, by a diplomatic or consular oflScer of 
the United States, or the United States High 
Commissioner to the Philippine Islands, or the 
chief executive of Hawaii, of Puerto Eico, of 
the Virgin Islands, of American Samoa, or 
of Guam, or unless he comes within the pro- 
visions of such exceptions or fulfils such condi- 
tions as may be prescribed in rules and 
regulations which the Secretary of State is 
hereby authorized to prescribe in execution of 
the rules, regulations, and orders herein pre- 
scribed. Seamen are included in the classes of 
persons to whom this paragraph applies. 

"(2) No alien shall depart from or attempt 
to depart from the United States unless he is in 
possession of a valid permit to depart issued 
by the Secretary of State or by an officer des- 
ignated by the Secretary of State for such 
purpose, or unless he is exempted from obtain- 
ing a permit, in accordance with rules and 
regulations which the Secretary of State, with 
the concurrence of the Attorney General, is 
hereby authorized to prescribe in execution of 
the rules, regulations, and orders herein pre- 
scribed ; nor shall any alien depart from or at- 
temjit to depart from the United States at any 
place other than a port of departure designated 
by the Attorney General or by the Commis- 
sioner of Immigration and Naturalization or 
by an appropriate permit-issuing authority 
designated by the Secretary of State. 

"No alien shall be permitted to depart from 
the United States if it appears to the satisfac- 
tion of the Secretary of State that such depar- 
ture would be prejudicial to the interests of the 
United States as provided in the rules and reg- 
ulations hereinbefore authorized to be pre- 
scribed by the Secretary of State, with the 
concurrence of the Attorney General. 

"(3) After the effective date of the rules and 
regulations hereinafter authorized, no alien 
shall enter or attempt to enter the United 
States unless he is in possession of a valid un- 
expired permit to enter issued by the Secretary 
of State, or by an appropriate officer designated 
by the Secretary of State, or is exempted from 



obtaining a permit to enter in accordance with 
the rules and regulations which the Secretary 
of State, with the concurrence of the Attorney 
General, is hereby authorized to prescribe in 
execution of these rules, regulations, and orders. 

"No alien shall be permitted to enter the 
United States if it appears to the satisfaction 
of the Secretary of State that such entry would 
be prejudicial to the interests of the United 
States as provided in the rules and regulations 
hereinbefore authorized to be prescribed by the 
Secretary of State, with the concurrence of the 
Attorney General. 

"(4) No person shall depart from or enter, or 
attempt to depart from or enter, the United 
States without submitting for inspection, if 
required to do so, all documents, articles, or 
other things which are being removed from or 
brought into the United States upon or in con- 
nection with such person's departure or entry, 
which are hereby made subject to official in- 
spection under rules and regulations which the 
Secretary of State in the cases of citizens, and 
the Secretary of State with the concurrence of 
the Attorney General in the cases of aliens, is 
hereby authorized to prescribe. 

"(5) A permit to enter issued to an alien sea- 
man employed on a vessel arriving at a port in 
the United States from a foreign port shall be 
conditional and shall entitle him to enter only 
in a case of reasonable necessity in which the 
immigration authorities are satisfied that such 
entry would not be contrary to the interests of 
the United States ; but this shall not be deemed 
to supersede the provisions of Executive Order 
8429, dated June 5, 1940 concerning the docu- 
mentation of seamen. 

"(6) The period of validity of a permit to 
enter or a permit to depart, issued to an alien, 
may be terminated by the permit-issuing author- 
ity or by the Secretary of State at any time 
prior to the entry or departure of the alien, 
provided the permit-issuing authority or the 
Secretary of State is satisfied that the entry 
or departure of the alien would be prejudicial 
to the interests of the United States which it 
was the purpose of the above-mentioned acts to 
safeguard. 



NOVEMBER 15, 1941 

"(7) Except as provided herein or by rules 
and regulations prescribed hereunder, the pro- 
visions of this proclamation and the rules and 
regulations issued in pursuance hereof shall be 
in addition to, and shall not be held to repeal, 
modify, suspend, or supersede any proclama- 
tion, rule, regulation, or order heretofore is- 
sued and now in effect under the general 
statutes relating to the immigration of aliens 
into the United States; and compliance with 
the provisions of this proclamation or of any 
rule or regulation which may hereafter be is- 
sued in pursuance of the act of May 22, 1918, 
as amended by the act of June 21, 1941, shall 
not be considered as exempting any individual 
from the duty of complying with the pro- 
visions of any statute, proclamation, rule, reg- 
ulation, or order heretofore issued and now in 
effect. 

"(8) I direct all departments and agencies 
of the Government to cooperate with the Sec- 
retary of State in the execution of his authority 
under this proclamation and any subsequent 
proclamation, rule, regulation, or order pro- 



383 

mulgated in pursuance hereof. They shall 
upon request make available to the Secretary 
of State for that purpose the services of their 
respective officials and agents. I enjoin upon 
all officers of the United States charged with 
the execution of the laws thereof the utmost 
diligence in preventing violations of the act 
of May 22, 1918, as amended by the act of 
June 21, 1941, and in bringing to trial and 
punishment any persons who shall have vio- 
lated any provisions of such acts. 

"(9) Paragraph 6, part I, of Executive 
Order 8766, issued June 3, 1941, is hereby 
superseded by the provisions of this proclama- 
tion and such regulations as may be prescribed 
hereunder. 

"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 14th 
day of November, in the year of our Lord nine- 
teen hundred and forty-one, and of the In^ 
dependence of the United States of America 
the one hundred and sixty-sixth." 



REQUIREMENTS FOR THE DEPARTURE OF ALIENS 



[Released to the press November 14] 

The Secretary of State has prescribed, with 
the concurrence of the Attorney General, regu- 
lations governing the entry and departure of 
aliens in accordance with the proclamation is- 
sued by the President on November 14, 1941, 
under the authority conferred upon the Presi- 
dent by the act of Congress of May 22, 1918, as 
amended by the act of June 21, 1941 (Public 
Law 114, 77th Cong.) 

The regulations will be published in the Fed- 
eral Register, copies of which may be obtained 
from the Superintendent of Documents, Gov- 
ernment Printing Office, Washington, D. C, 
for a nominal fee. 

Under the proclamation and the regulations 
aliens desirous of departing from the United 
States are required to obtain exit permits from 
the Secretary of State, Washington, D. C, un- 



less they fall within one or more of the classes 
which are exempt from the exit-permit require- 
ments as specified in regulations now in course 
of being issued. No fee has been prescribed for 
the issuance of such permits. Blank applica- 
tion forms may be obtained from the Visa Divi- 
sion, Department of State, Washington, D. C. 
Applications should be filed not less than 30 
days before the contemplated date of departure. 
Permits to depart, when issued by the Secretary 
of State, will be sent to departure-control offi- 
cers of the Immigration and Naturalization 
Service at the ports of departure designated in 
the applications. Such permits will be issued 
subject to the condition that the applicant shall 
have complied with all other laws and regula- 
tions of the United States, particularly to laws 
relating to public safety, prior to the date of 
contemplated departure. 



384 



DEPARTMENT OF STATE BULLETIN 



Permits to depart will not be subject to trans- 
fer from one sipplicant to another nor from one 
port of departure to another. Aliens attempt- 
ing to depart without the necessary permits will 
be subject to the penalties of the law, unless 
they fall within a class which is exempt by regu- 
lation from the departure-permit requirements. 



The Governors of Alaska, Hawaii, Puerto 
Rico, the Virgin Islands, the Panama Canal 
Zone, Guam, and American Samoa, and the 
United States High Commissioner to the Philip- 
pine Islands, will administer the law and regu- 
lations in these territories and outlying 
possessions. 



REQUIREMENTS FOR THE ENTRY OF ALIENS 



[Released to the press November 14) 

The regulations governing the entry of 
aliens under the act and the proclamation issued 
thereunder construe and adopt visas and other 
present documentation as permits to enter 
within the meaning of the act, subject to cer- 
tain additional restrictions which have been 
placed upon the issuance of such documents for 
the purpose of protecting the interests of the 
United States. 

Tlie new procedure for the issuance of visas, 
which became effective on July 1, 1941, has been 
laid down in formal regulations, which, with 
certain specified exceptions, provide for the is- 
suance of advisory opinions by the Secretary 
of State to American diplomatic and consular 
officers before visas are issued. Advisory 
opinions are to be formulated through the 
various Interdepartmental Committees which 
are now functioning and sifting the great mass 
of information in possession of Government 
agencies concerning visa applicants. 

Sponsors of visa applicants, attorneys, 
agents, and other intermediaries will be per- 



mitted to appear before an Interdepartmental 
Committee of Review in the Department of 
State and make appropriate statements con- 
cerning their knowledge of, and interest in, 
visa applicants. The written record of cases 
not finally disposed of by the Committees may 
be reviewed by a Board of Appeals composed 
of two members appointed by the President 
from persons outside of the Government. As 
this Board will confine its consideration of 
cases to the record received from the Interde- 
partmental Committees there will be no hear- 
ings by the Board. Cases requiring further 
hearing of interested persons may be returned 
by the Board to the Committee of Review. 

In case the opinion of the Board of Appeals 
is not acceptable to the Secretary of State, or 
if the members of the Appeals Board are unable 
to agree, the Secretary of State will substitute 
his own opinion, which decision shall be trans- 
mitted to the appropriate consular or diplo- 
matic officials as the advisory opinion of the 
Department of State. 



REQUIREMENTS FOR THE DEPARTURE AND ENTRY OF AMERICAN CITIZENS 



[Released to the press November 14] 

Under the regulations which it is contem- 
plated will in the immediate future be pre- 
scribed by the Secretary of State pursuant to 
the proclamation issued by the President under 
authority of the act of May 22, 1918, as 
amended by the act of June 21, 1941, all citi- 
zens of the United States or persons who owe 



allegiance to the United States shall after six 
o'clock in the forenoon of January 15, 1942, be 
required to bear valid passports in order to 
depart from or enter the continental United 
States, the Canal Zone, the Commonwealth of 
the Philippines, and all territories, continental 
or insular, subject to the jurisdiction of the 
United States, except that, effective immedi- 



NOVEMBER 15, 1941 



385 



ately, no such person shall depart from or 
attempt to depart from any such territory for 
any foreign country or territory in the Eastern 
Hemisphere or any foreign country or terri- 
tory in the Western Hemisphere under the 
jurisdiction of Great Britain in which defense 
bases are being constructed by or under con- 
tract with the Government of the United 
States unless he bears a valid passport issued 
by or under authority of the Secretary of State. 
The regulations will also provide that pass- 
ports shall not be required of citizens or per- 
sons who while not citizens owe allegiance to 
the United States when traveling between the 
continental United States and the territories 
of Hawaii, Puerto Rico, and the Virgin Islands, 
or between any such places, between points in 
the continental United States and points in 
Canada and Mexico, and between the conti- 
nental United States and islands adjacent to 



Canada or the United States or the islands of 
the West Indies, except any such island as is 
subject to the jurisdiction of a non-American 
country other than Great Britain. 

The regidations will provide further that 
effective immediately American seamen who 
intend to travel on or over the north Atlantic 
Ocean north of 35 degrees north latitude and 
east of 66 degrees west longitude or on other 
waters adjacent to Europe or adjacent islands 
or in any of the waters now defined by the 
proclamations of the President to be combat 
areas must bear valid passports or be otherwise 
specifically authorized to depart. American 
seamen shall not be required to bear passports 
or other pei'mission for entry into the United 
States prior to February 15, 1942. 

Tlie regulations when issued will be pub- 
lished in the Federal Register. 



ALLEGED PROMOTION OF BRITISH COMMERCIAL INTERESTS TO 
DISADVANTAGE OF AMERICAN INTERESTS 



The following statement has been sent by the 
Department of State to Representative Mal- 
colm C. Tarver in response to his request. 

"Charges are frequently made that some of 
the governments opposing aggression, and par- 
ticularly Great Britain, are taking advantage 
of our American aid in order to promote their 
own commercial interests. The repetition of 
these charges is naturally very helpful to the 
aggressor countries. Since the charges are with- 
out foundation the facts should be known. 

"Consequently at this critical time the fol- 
lowing statements are made in connection with 
(1) the use of the Lend-Lease Act to push 
British exports; (2) the use of British ship- 
ping to further their own private commercial 
interests at the expense of the United States 
and other friendly countries; and (3) the use 
of wartime censorship of the mails to the detri- 
ment of American commercial and other in- 
terests. 

427172—41 2 



«I 

"One of the most insistent charges against 
the British has been that they have taken ad- 
vantage of our generosity, particularly in con- 
nection with the Lend-Lease Act, to push their 
export business into all corners of the globe 
at our expense. They have been accused both 
of reexporting lend-lease good's on a large 
scale and feathering their own nests with the 
proceeds therefrom, and of using lend-lease 
goods at home to displace domestic products 
which they have in turn been enabled to export. 

"P'rom the very beginning of these charges, 
running back to last spring, there was the 
most gross exaggeration with respect to this 
whole matter. So far as concerns the reexpor- 
tation of lend-lease goods, any such reexpor- 
tation would have been in clear violation of 
section 4 of the Lend-Lease Act, which pro- 
vides that 'all contracts or agreements made 
for the disposition of any defense article or 



386 



DEPARTMENT OF STATE BULLETIN 



defense information pursuant to section 3 shall 
contain a clause by which the foreign govern- 
ment undertakes that it will not, without the 
consent of the President, transfer title to or 
possession of such defense article or defense 
information by gift, sale, or otherwise, or per- 
mit its use by anyone not an officer, employee, 
or agent of such foreign government.' 

"No transfer of any such article acquired un- 
der the Lend-Lease Act could legally take place 
without the consent of the President. 

"For some weeks after the Lend-Lease Act 
was passed, there continued to be some ex- 
ports from Britain of domestic products more 
or less similar in character to types of prod- 
ucts which we were lend-leasing to Great 
Britain. There was, for example, some expor- 
tation to South America of iron and steel prod- 
ucts, but only under exceptional circumstances 
where this was clearly necessary for the prose- 
cution of the British war effort and where the 
materials in question could not be obtained from 
the United States. Even so, there was a very 
rapid decline in shipments of such products to 
South America. By the middle of last summer, 
British allocations of steel for export were set at 
less than a quarter of what they were even as 
late as 1940 and constituted only an extremely 
minor fraction of their monthly production of 
approximately 1,000,000 ingot tons. 

"Meanwhile, however, our Government took 
up with the British Government the various 
types of charges which had been made with 
respect to abuse of the letter or spirit of the 
Lend-Lease Act in this regard, and as a result 
of those discussions the British Government 
issued on September 10, 1941, a white paper,^ 
in which it undertook to define in some de- 
tail the principles and practices to which it 
was adhering and would continue to adhere 
in the future as regards exports and distribution 
of lend-lease goods. The British Government 
affirmed that no lend-lease materials sent to it 
had been used for export, and every effort 
would be made in the future to insure that they 
should not be used for export. With respect 
to the export of British goods similar in char- 



'BuUetin of September 13, 1941, p. 204. 



acter to goods received under lend-lease, it 
promised not to apply any materials similar to 
those supplied under lend-lease in such a way 
as to enable British exporters to enter new 
markets or to extend their export trade at the 
expense of United States exportei-s. It stated 
further that, owing to the need to devote all 
available capacity and manpower to war pro- 
duction, the United Kingdom export trade 
would be 'restricted to the irreducible minimum 
necessary to supply or obtain materials essential 
to the war effort." It promised further that 'no 
materials of a type the use of which is being 
restricted in the United States on the grounds 
of short supply and of which we [the British] 
obtain supplies from the United States either by 
payment or on Lend-Lease terms will be used in 
exports', with the exception of certain special 
cases which were enumerated and which our 
Government recognized were within the cate- 
gory of legitimate exceptions. 

"Even before the white paper was issued, 
our own Government was, in consultation with 
the British authorities, closely following up 
every charge of abuse and taking every pos- 
sible precaution to safeguard American inter- 
ests. Since the issuance of the white paper, 
machinery has been set up both in Washington 
and in London for following up in detail all 
of the administrative and policy problems aris- 
ing in coimection with the white paper. Tlie 
fact of the matter is that the British have 
been leaning over backward in their desire 
to avoid doing anything to justify a charge 
that tliey are not complying with the obliga- 
tions which they have assumed. Not a single 
instance has been encountered in which they 
hiive violated their pledge. They are going 
out of their way, in case of doubt with regard 
to any particular export shipment, to ascertain 
whether this Government would regard such 
shipment as in violation of the letter or spirit 
of British pledges. In fact, an orderly process 
has been set up for clearing all such doubtful 
cases in advance. 

"The plain truth of this whole matter is 
that: (1) From the very beginning of this 
agitation the air has been filled with charges 
of this sort or another which careful investiga- 



iSrOVEMBER 15, 1941 



387 



tion has shown, in nearly every case, were 
largely or wholly without foundation ; and (2) 
that the Lend-Lease Act is not being used by 
(irreat Britain today as a vehicle for encourag- 
ing British exports irrespective of defense and 
to the detriment of this country. The fact is 
that our two Governments are in close under- 
standing with iTspect to this matter, and the 
Lend-Lease Act is being utilized by both coun- 
tries for the purpose for which it was intended, 
namely, to defeat the terrible menace of Hit- 
lerism which threatens to engulf us all. 

"II 

"Allegations are made that the British are 
using a large part of their shipping tonnage 
to engage in normal commercial intercourse 
regardless of the prime need for such tonnage 
for war purposes. It is charged that 9,000,000 
tons of British shipping are today being put 
to that sort of use. 

"The facts, however, are these : First, a vei'y 
considerable proportion of this tonnage is today 
being used as supply shipping in the fighting 
services; second, half of the remaining tonnage 
is engaged in carrying war supplies and other 
absolutely essential goods to Great Britain; 
and, third, a substantial but minor portion of 
the total tonnage is engaged in furnishing in- 
dispensable shipping services between the dif- 
ferent parts of the Empire, all of it vital to 
the effective prosecution of the war effort. 

"Naturally the tonnage which is engaged in 
carrying to Great Britain war essentials and 
civilian necessities from the United States and 
other sources of supply is available for carry- 
ing back to these countries on the return trip 
any goods which Great Britain is in a position, 
under war conditions, to export at this time. 
Many of these goods are of types badly needed 
in the United States and other countries to 
which they may be sent. Notwithstanding 
charges that some of these are similar to types 
of goods which we are lend-leasing to Great 
Britain, the fact is that Great Britain has obli- 
gated herself not to engage in that sort of 
export trade at our expense and is not doing 
so today. 



"III. Censoeship 

"At the outbreak of the war the belligerent 
governments on both sides established censor- 
ship of mail and other communications. The 
United States has readily admitted the right 
of a belligerent government, including the Brit- 
ish Government and the German Government, 
under international law, to censor private mails 
originating in or destined to their respective 
territories or which pass through their terri- 
toi'ies for transmission to final destinations. 

"While not denying the British right to censor 
mail passing through British territory, the 
Department has, however, taken up with the 
British Government or with the British Em- 
bassy in Washington any complaints regarding 
delays in the transmission of mails. The Brit- 
ish assure us that they are taking all possible 
steps to expedite the transmission of mails de- 
tained for censorship and that any mails de- 
tained are forwarded by the next boat in the 
case of ordinary mails or by the next plane in 
the case of air mails. With regard to the ques- 
tion of trade information contained in letters 
detained by the censorship authorities, the Brit- 
ish Government has given specific assurances 
that such information is not in any way im- 
properly used or made available to British firms 
or even to other departments of the British 
Government. 

"The State Department keeps in close touch 
with the Post Office Department in all matters 
relating to our own mails and mails in this 
hemisphere. 

"It may be mentioned that the British cen- 
sorship provides us, from time to time, with 
useful information which by courtesy the Brit- 
ish Government passes on to us in the form of 
information believed to be of interest to this 
Government. Information is received from 
far away points, Hong Kong and Singapore 
for example, which is helpful in the administra- 
tion of foreign-funds control of the United 
States. This is merely one illustration of the 
type of information which may be received and 
which may cover a very wide range of subjects 
of interest and value to this Government. 

"This statement is submitted in the interest 
of accuracy." 



388 



DEPARTMENT OF STATE BULLETrN 



THE PROCLAIMED LIST OF CERTAIN 
BLOCKED NATIONALS 

ISSUANCE OF SUPPLEMENT NO. 3 

[Released to the press November 10] 

The Secretary of State of the United States, 
acting in conjunction with the Secretary of the 
Treasury, the Attorney General, the Secretary 
of Commerce, the Executive Director of the 
Economic Defense Board, and the Coordinator 
of Inter-American Affairs, pursuant to the 
President's proclamation of July 17, 1941, on 
November 8 issued SupjDlement 3 to ''The Pro- 
claimed List of Certain Blocked Nationals". 

This supplement contains 519 additions to the 
list and 59 deletions, as well as a number of 
amendments. 



GUATEMALAN COFFEE EXPORTS 

[Released to the press November 10) 

With reference to the publication of the third 
supplement to the Proclaimed List, the Secre- 
tary of State announced that arrangements had 
been worked out with the Guatemalan Govern- 
ment, at the latter's request, in the spirit of the 
friendly relations existing between the two 
countries, whereby limited exports of Guate- 
malan coffee produced on plantations owned by 
persons who have been placed on the Proclaimed 
List will be permitted to enter the United 
States, provided that such exportations are 
made in accordance with the plan of control 
which has been established by the Guatemalan 
Government. Under this arrangement Guate- 
mala has the assurance of filling the quota al- 
lotted to it under the Inter-American Coffee 
Agreement. 



American Republics 



STATEMENT BY THE SECRETARY OF STATE REGARDING SPEECH OF 

THE PRESIDENT OF BRAZIL 



[Released to the press November 12) 

A statement of the Secretary of State at his 
press conference on November 12, 1941, in reply 
to questions concerning the recent speech of 
the President of Brazil follows : 

"I have read the reports of the recent speech 
of President Vargas and the subsequent press 
interview of Dr. Aranha with the deepest 
appreciation. They constitute a further strik- 
ing demonstration of the fact that the govern- 



ments and peoples of all of the American 
republics are fully aware of the dangers to the 
Western Hemisphere inherent in the present 
world-situation. The position taken by the 
Government of Brazil is one more proof that, 
in accordance with its traditional policy, Brazil 
strives always for the advancement of inter- 
American solidarity and for the taking of all 
measures necessary to insure the security and 
the freedom of the New World." 



INTER-AMERICAN COMMUNICATION AND TRANSPORTATION 
RADIO ADDRESS BY ASSISTANT SECRETARY LONG ' 



[Released to the press November 14) 

A week ago my colleague, Mr. Shaw, inaugu- 
rated this series of broadcasts with an address 
on inter-American cultural relations. In his 
closing words he referred to our desire for the 



kind of international relations which promote 
national expression and which offer "the maxi- 
mum of free contacts among nations". He 



' Delivered over the blue network of the National 
Broadcasting Co., November 14, 1941. 



KOVEMBER 15, 1941 



389 



was dealing primarily with the things of the 
mind. 1 wish to follow on this evening with 
an account of some of the mechanical instru- 
mentalities of cooperation whereby we of the 
Americas are exceeding all former maxima in 
promoting contacts among our 21 republics — 
contacts that are overcoming economic crises, 
setting up firm bulwarks of defense against 
aggression from any source whatever, and lay- 
ing new foundations for a larger prosperity to 
follow in the wake of war. My subject com- 
prises inter-American cooperation for facilitat- 
ing the more abundant use of the old avenues 
of ocean commerce as well as those grand 
unifying inventions of our own well-remem- 
bered years, the radio and the airplane. Each 
has its contribution to make to the joint mecha- 
nism. Each is helping us to be better neighbors 
in the sense of mutual helpfulness in solving 
one another's problems. 



In the address opening the first of the Inter- 
national Conferences of American States, of 
which the eighth was held at Lima in 1938, 
Secretary of State James G. Blaine stressed 
the imjjortance of more frequent and more 
rapid means of intercommunication in order to 
develop closer acquaintance among the people 
of the Americas. The radio did not exist in 
1889, and the Conference concerned itself with 
fostering West Coast cable connections. On 
the East Coast the cost was two dollars and 
fifty-nine cents per word to send a telegram 
from the United States to Brazil. Something 
of the measure of improvement that has taken 
place in making possible this form of com- 
munication between North and South America 
may be found in the fact that today the rate 
per word is less than one-sixth what it was half 
a century ago, while the rate for news despatches 
which the press associations transmit is less 
than one twenty-fifth as great, namely, five 
cents per word. That such despatches now go 
in great and ever-increasing volume in both 
directions is to be attributed not only to the 
vast increase in the interest which the peoples 



liave in what their neighbors are doing, but to 
the multiplication of the means whereby mes- 
sages of all kinds are carried to and from all 
quarters of the continents. 

With the development of radio have coine 
conferences for the facilitation and improve- 
ment of its services. The first general Inter- 
American Radio Conference was held at Ha- 
bana in 1937 with the participation of 15 of the 
republics and Canada. Their delegates nego- 
tiated the Inter-American Radio Communica- 
tions Convention which provides for the 
holding of future conferences, regulation of 
broadcasting, and other matters, including the 
establishment of an Inter-American Radio 
(Office, located at Habana and designed to act 
as a clearing-house for the dissemination of 
information regarding the technical and legal 
phases of radio and thus to assist in the gradual 
elevation of engineering standards. The sec- 
ond general conference was held at Santiago 
early in 1940. Meanwhile regional radio con- 
ferences were held in North, Central, and South 
America, the first among the last-named con- 
ferences, held at Buenos Aires in 1934, result- 
ing in the establishment of the South American 
Broadcasting Union with headquarters at 
Montevideo. 

Radiotelegraphy and radiotelephony have 
brought practically instantaneovis communica- 
tion from every part of the hemisphere to every 
other part, and broadcasting has linked, as it 
were in one big network, the means of simul- 
taneously addressing the 250 million people of 
the 21 republics. The cities both north and 
south have been joined together in one big 
telephone system. 

II 

Concurrently, the air mail, streamlined in- 
strumentality of both communication and 
transportation, has brought the cities of the 
Americas within a day or two of each other, 
and enabled individual Americans to make 
comprehensive tours of the remotest portions 
of their continents within periods that a few 
years ago were consumed in a single one-way 



390 



DEPAHTMENT OF STATE BULLETIN 



voyage between Buenos Aires and New York. 
We of North and South America can now 
make "pop calls" on each other without feel- 
ing that we have consumed inordinate propor- 
tions of our time en route. 

Almost simultaneously in the early days of 
this century in both North and South America 
pioneers in aviation were bringing their experi- 
ments to a successful conclusion. To Santos 
Dumont and to the Wright brothers we owe the 
practical demonstration that man can fly — 
that century-old asj^irations could be realized 
through a mechanical wonder given by the 
Americas to the world. It was not until after 
the first World War, however, that inter-Amer- 
ican commercial aviation had its real beginning. 

In the same year, 1920, in which an airline 
was established between the cities of Barran- 
quilla and Girardot in the Eepublic of Colom- 
bia, the first contract for the transportation of 
mail by air from the United States to another 
American republic was awarded by the Gov- 
ernment of the United States. Tlie other re- 
public was Cuba and the contract marked the 
beginning of the present structure of inter- 
American air transportation, just as the line 
in Colombia is of interest in connection with the 
inauguration of what have become the great 
international trunk lines of the present day. 
The present world-situation has made inevita- 
ble an increasing tendency on the part of Amer- 
ican governments to encourage operation of in- 
ternal air-transport services by their own na- 
tionals rather than by outsiders. A number of 
inter-American conferences on aviation have 
been held and have accomplished beneficial 
results. 

Early in 1942 the Government of the United 
States will inaugurate a jDrogram under which 
young men from the other American republics 
will be invited to the United States for train- 
ing as pilots and aviation technicians. It is 
hoped and expected that about 500 pilots, aero- 
nautical administrative engineers, instructor 
mechanics, and airplane-service mechanics will 
thus receive competent training, and that inter- 
American cooperation in aviation will be ad- 
vanced. 



Ill 

For the first time in the history of the 21 
American republics, vessels flying the flags of 
these republics are now carrying the great bulk 
of the commerce between them. This develop- 
ment, though logical and hoped-for over a pe- 
riod of many years, has immediately been 
brought to pass as a result of war conditions. 

The war has indeed profoundly affected ship- 
ping between the Americas. Formerly, a large 
l^art of the water-borne commerce of the re- 
publics was carried in ships by the now bellig- 
erent European nations. At the advent of war 
most of these vessels were lost to this trade ; on 
the one hand, the vessels of the Axis powers took 
refuge in the ports of some of the American re- 
publics, and on the other, the vessels of Great 
Britain and her allies were withdrawn and 
placed in services more vital to the war effort. 

As a result, there arose urgent problems re- 
lating to shortages of shipping space and 
threats of rapidly increasing freight rates. The 
burden of taking up the slack in services caused 
by the disappearance of many of the European- 
flag vessels in Western Hemisphere trade at 
first fell primarily upon the merchant fleet of 
the United States, but the other American re- 
publics have not been lax to assume their 
responsibilities in this crisis. 

For example, it is estimated that 7,800,000 
tons of strategic and critical materials will 
have to be brought into the United States from 
hemisphere sources, excepting Canada, during 
the year ending June 1942. If to these materials 
are added coffee, cacao, sugar, and bananas, 
upon which the economies of many American 
countries are dependent, then it is estimated 
that import requirements from this area into 
the United States will be increased to approxi- 
mately 12,700,000 tons in that period as com- 
pared with 10,400,000 tons for all imports from 
the same area in 1940. 

The governments of the American republics 
realized some time ago the problems which 
would arise under war-time conditions and 
provided for the cooperative machinery neces- 
sary to meet them. Outstanding in this field 
of cooperative effort is the Inter- American 



NOVEMBER 15, 1941 

Financial and Economic Advisory Committee 
composed of experts in economic problems 
from eacli of the 21 republics. This Commit- 
tee sitting in Washington has had presented to 
it many problems of a far-reaching nature, not 
the least of which was that of providing ade- 
quate shipping services in the hemisphere. 



391 

Thus in the field of ocean transportation new 
opportunities for service in the uniting of the 
Americas have developed. In communication 
and transportation, as in cultural relations, 
and along tlie other avenues of human progress, 
the American republics are setting examples 
which all nations will do well to follow. 



General 



MEMORIAL SERVICES AT THE TOMB OF WOODROW WILSON 
ADDRESS BY THE UNDER SECRETARY OF STATE' 



[Released to the press November 11] 

Twenty-three years ago today, Woodrow 
Wilson addressed the Congress of the United 
States in order to inform the representatives 
of the American people of the terms of the 
Armistice which signalized the victorious con- 
clusion of the first World War. 

That day marked, as he then said, the attain- 
ment of a great objective: the opportunity 
for the setting up of "such a peace as will 
satisfy the longing of the whole world for 
disinterested justice, embodied in settlements 
whicli are based upon something much better 
and much more lasting than the selfish com- 
petitive intei'ests of powerful states". 

Less than five years later, shrouded in the 
cerements of apparent defeat, his shattered 
body was placed in the grave beside which we 
now are gathered. 

He was laid to rest amid the apathy of the 
many and amid the sneers of those of his 
opponents who had, througli appeal to igno- 
rance, to passion, and to prejudice, temporarily 
persuaded the people of our country to reject 
Wilson's plea that the influence, the resources, 
and the power of the United States be exercised 
for their own security and for their own advan- 



' Delivered by Mr. Welles at memorial services at 
the tomb of President Wilson in the Washington 
Cathedral, on Armistice Day, November 11, 1941. 



tage, through our participation in an associa- 
tion of the free and self -governed peoples of the 
world. 

And yet, when we reflect upon the course of 
the years that have since intervened, how rarely 
in human history has the vision of a statesman 
been so tragically and so swiftly vindicated. 

Only a score of years have since elapsed, and 
today the United States finds itself in far 
greater peril than it did in 1917. The waves of 
world-conquest are breaking high both in the 
East and in the West. They are threatening, 
more nearly each day that passes, to engulf 
our own shores. 

Beyond the Atlantic a sinister and pitiless 
conqueror has reduced more than half of Eu- 
rope to abject serfdom. It is his boast that his 
system shall prevail even unto the ends of the 
earth. 

In the Far East the same forces of conquest 
under a different guise are menacing tlie safety 
of all nations that border upon the Pacific. 

Were these forces to prevail, what place in 
such a world would there be for the freedoms 
whicli we clierisli and which we are passionately 
determined to maintain? 

Because of these perils we are arming our- 
selves to an extent to which we have never armed 
ourselves before. We are pouring out billions 
upon billions of dollars in expenditures, not 



392 



DEPARTMENT OF STATE BULLETIN 



only in order that we may successfully defend 
ourselves and our sister nations of the Western 
Hemisphere but also, for the same ends, in order 
to make available the weapons of defense to 
Great Britain, to Russia, to China, and to all 
the other nations that have until now so 
bravely fought back the hordes of the invaders. 
And in so doing we are necessarily diverting the 
greater part of our tremendous productive ca- 
pacity into channels of destruction, not those 
of construction, and we are piling up a debt- 
burden which will inevitably affect the manner 
of life and diminish the opportunity for pro- 
gressive advancement of our children and of 
our children's children. 

But far graver than that — for the tides are 
running fast — our people realize that at any 
moment war may be forced upon us, and if it is, 
the lives of all of us will have to be dedicated 
to preserving the freedom of the United States 
and to safeguarding the independence of the 
American people, which are moi-e dear to us 
than life itself. 

The heart-searching question which every 
American citizen must ask himself on this day 
of commemoration is whether the world in 
which we have to live would have come to this 
desperate pass had the United States been will- 
ing in those years which followed 1919 to play 
its full part in striving to bring about a new 
world-order based on justice and on "a stead- 
fast concert for peace". 

Would the burdens and the dangers which 
the American people might have had to 
envisage through that "partnership of demo- 
cratic nations" which Woodrow Wilson then 
urged upon them, have represented even an 
infinitesimal portion of the burdens and the 
dangers with which they are now confronted? 

Solely from the standpoint of the interest of 
the American people themselves, who saw 
straight and who thought straight 20 years 
ago? Was it Woodrow AVilson when he pled 
with his fellow Americans to insure the safety 
and the welfare of their country by utilizing 
the influence and the strength of their great 
Nation in joining with the ether peace-loving 



powers of the earth in preventing the out- 
growth of those conditions which have made 
possible this new world-upheaval? Or was it 
that group of self-styled, "practical, hard- 
headed Americans", who jeered at his idealism, 
who loudly proclaimed that our very system of 
government would be destroyed if we raised 
our voice in the determination of world-affairs, 
and who refused to admit that our security 
could be even remotely jeopardized if the 
whole of the rest of the earth was plunged into 
the chaos of world-anarchy? 

A cycle in human events is about to come to 
its end. 

The American people after full debate, in 
accordance with their democratic institutions, 
have determined upon their policy. They are 
pledged to defend their freedom and their 
ancient rights against every form of aggres- 
sion, and to spare no effort and no sacrifice in 
bringing to pass the final defeat of Hitlerism 
and all that which that evil term implies. 

We have no doubt of the ultimate victory of 
the forces of liberty and of human decency. 
But we cannot know, we cannot yet foresee, how 
long and how hard the road may be which leads 
to that new day when another armistice will be 
signed. 

And what will come to pass thereafter ? 

Three months ago the President of the United 
States and the Prime Minister of the United 
Kingdom signed and made public a new charter 
"on which they base their hopes for a better 
future for the world". 

The principles and the objectives set forth in 
that joint declaration gave new hope and new 
courage to millions of people throughout the 
earth. They saw again more clearly the why 
and the wherefore of this ghastly struggle. 
They saw once more the gleam of hope on the 
horizon — hope for liberty; freedom from fear 
and want ; the satisfaction of their craving for 
security. 

These aspirations of human beings every- 
where cannot again be defrauded. Those high 
objectives set forth in the Charter of the At- 
lantic must be realized. They must be realized, 



NOVEMBER 15, 1941 



393 



quite apart from every other consideration, be- 
cause of the fact that the individual interest of 
every man and woman in the United States will 
be advanced consonantly with the measure in 
which the world where they live is governed 
by right and by justice, and the measure in 
which peace prevails. 

The American people thus have entered the 
Valley of Decision. 

Shall we as the most powerful Nation of 
the earth once more stand aloof from all ef- 
fective and practical forms of international 
concert, wherein our participation could in all 
human probability insure the maintenance of a 
peaceful world in which we can safely live? 

Can we afford again to refrain from lifting 
a finger until gigantic forces of destruction 
threaten all of modern civilization, and the 
raucous voice of a criminal paranoiac, speaking 
as the spokesman for these forces from the cel- 
lar of a Munich beer hall, proclaims as his 
set purpose the destruction of our own security, 
and the annihilation of religious liberty, of 
political liberty, and of economic liberty 
throughout the earth? 

The decision rests solely with the people 
of the United States — the power is theirs to 
determine the kind of world of the future 
in which they would live. Is it conceivable 
that, in enlightened self-interest, they could 
once more spurn that opportunity ? 

When the time for the making of that great 
decision is at hand, I believe that they will 
turn again for light and for inspiration to 
the ideals of that great seer, statesman, patriot, 
and lover of his fellow men — Woodrow Wilson 
— whose memory we here today revere. 

Then, again, they will remember that great 
cause he once held up before their eyes — "A 
universal dominion of right by such a concert 
of free peoples as shall bring peace and safety 
to all nations and make the world itself at last 
free." 



The Foreign Service 



PERSONNEL CHANGES 

On November 13, 1941 the Senate confirmed 
the nomination of Anthony J. Drexel Biddle, 
Jr., of Pennsylvania, Ambassador Extraor- 
dinary and Plenipotentiary of the United 
States of America to Poland, to serve con- 
currently and without additional compensa- 
tion as Envoy Extraordinary and Minister 
Plenipotentiary near the Government of Greece 
now established in London. Mi-. Biddle will 
continue to serve concurrently as Ambassador 
near the Government of Belgium and as Min- 
ister near the Governments of Norway, the 
Netherlands, Yugoslavia, and Czechoslovakia 
now established in London. 

[Released to the press November 15] 

The following changes have occurred in the 
American Foreign Service since November 8, 
1941: 

Austin C. Brady, of Santa Fe, N. Mex., Con- 
sul at Eangoon, Burma, has been assigned as 
Consul General at Rangoon, Burma. 

Lester L. Schnare, of Macon, Ga., Consul at 
Rangoon, Burma, has been assigned as Consul 
General at Rangoon, Burma. 

Angus I. Ward, of Chassell, Mich., Consul at 
Vladivostok, U.S.S.R., has been assigned as 
Consul General at Vladivostok, U.S.S.R. 

Frank A. Schuler, Jr., of North Muskegon, 
Mich., Third Secretary of Embassy at Tokyo, 
Japan, has been assigned as Vice Consul at 
Antigua, Leeward Islands, British West Indies, 
where an American Consulate is to be estab- 
lished. 

Richard W. Byrd, of Norfolk, Va., Vice Con- 
sul at Calcutta, India, has been assigned as 
Vice Consul at Jerusalem, Palestine. 



394 

"W. Horton Schoellkopf, Jr., of Miami, Fla., 
Vice Consul at Hamilton, Bermuda, has been 
assigned to the Department of State for duty 
in the Foreign Service Officers' Training 
School, effective November 3, 1941. 

In view of the unification of the diplomatic 
and consular offices at Mexico, D.F., Mexico, 
effective on November 1, 1941, the following 
changes are announced : 

George P. Shaw, of San Diego, Calif., Con- 
sul at Mexico, D.F., Mexico, has been desig- 
nated First Secretary of Embassy and Consul 
at Mexico, D.F., Mexico, and will serve in dual 
capacity. 

Charles A. Bay, of St. Paul, Minn., Consul 
at Mexico, D.F., Mexico, has been designated 
First Secretary of Embassy and Consul at Mex- 
ico, D.F., Mexico, and will serve in dual capacity. 

Raleigh A. Gibson, of Decatur, 111., First Sec- 
retary of Embassy at Mexico, D.F., Mexico, has 
been designated First Secretary of Embassy and 
Consul at Mexico, D.F., Mexico, and will serve 
in dual capacity. 

Harold D. Finley, of Saratoga Springs, N. Y., 
First Secretary of Embassy at Mexico, D.F., 
Mexico, has been designated First Secretary of 
Embassy and Consul at Mexico, D.F., Mexico, 
and will serve in dual capacity. 

Edward G. Trueblood, of Evanston, 111., 
Second Secretary of Embassy at Mexico, D.F., 
Mexico, has been designated Second Secretary 
of Embassy and Consul at Mexico, D.F., 
Mexico, and will serve in dual capacity. 

Robert G. McGregor, Jr., of New Rochelle, 
N. Y., Second Secretary of Embassy at Mexico, 
D.F., Mexico, has been designated Second 
Secretary of Embassy and Consul at Mexico, 
D.F., Mexico, and will serve in dual capacity. 

Guy W. Ray, of Wilsonville, Ala., Second 
Secretary of Embassy at Mexico, D.F., Mexico, 
has been designated Second Secretary of 
Embassy and Vice Consul at Mexico, D.F., 
Mexico, and will serve in dual capacity. 



DEPARTMENT OF STATE BULLETIN 

John Willard Carrigan, of San Francisco, 
Calif., Third Secretary of Embassy at Mexico, 
D.F., JNIexico, has been designated Third Secre- 
tary of Embassy and Vice Consul at Mexico, 
D.F., Mexico, and will serve in dual capacity. 

William C. Trimble, of Baltimore, Md., 
Third Secretary of Embassy at Mexico, D.F., 
Mexico, has been designated Third Secretary 
of Embassy and Vice Consul at Mexico, D.F., 
Mexico, and will serve in dual capacity. 

Morris N. Hughes, of Champaign, 111., Con- 
sul at Mexico, D.F., Mexico, has been desig- 
nated Second Secretary of Embassy and Consul 
at Mexico, D.F., Mexico, and will serve in dual 
capacity. 

William K. Ailshie, of Coeur d'Alene, Idaho, 
Vice Consul at Mexico, D.F., Mexico, has been 
designated Third Secretary of Embassy and 
Vice Consul ut Mexico, D.F., Mexico, and will 
serve in dual capacity. 

Forrest K. Geerken, of Minneapolis, Minn., 
Vice Consul at Mexico, D.F., INIexico, has been 
designated Third Secretary of Embassy and 
Vice Consul at Mexico, D.F., Mexico, and will 
serve in dual capacity. 

Kenneth A. Byrns, of Greeley, Colo., Vice 
Consul at Mexico, D.F., Mexico, has been 
designated Third Secretary of Embassy and 
Vice Consul at Mexico, D.F., Mexico, and will 
serve in dual capacity. 

J. Jefferson Jones, 3d, of Newbern, Tenn., 
Vice Consul at Mexico, D.F., Mexico, has been 
designated Third Secretary of Embassy and 
Vice Consul at Mexico, D.F., Mexico, and will 
serve in dual capacity. 

Ernest V. Siracusa, of Huntington Beach, 
Calif., Vice Consul at Mexico, D.F., Mexico, 
has been designated Third Secretary of Em- 
bassy and Vice Consul at Mexico, D.F., Mexico, 
and will serve in dual capacity. 

James P. Speer, 2d, of Comanche, Okla., 
Vice Consul at Mexico, D.F., Mexico, has been 
designated Third Secretary of Embassy and 
Vice Consul at Mexico, D.F., Mexico, and will 
serve in dual capacity. 



NOVEMBER 15, 1941 



395 



Regulations 



Arrest and Deportation: Amendment of Regulations 
Governing tlie Arrest and Deportation of Aliens. 
November 10, 1941. [Gen. Order No. C~26, 2d Supp.] 
(Department of Justice, Inunigration and Naturaliza- 
tion Service.) C Federal Rcgiater 5747. 

Type of Money Order Required Under Nationality 
Regulations. November 12, 1941. [General Order No. 
C-28, 4th Supp.] (Department of Justice, Immigra- 
tion and Naturalization Service.) 6 Federal Register 
5S00. 

Proclaimed List of Certain Blocked Nationals. [Ad- 
ministrative Order, Supp. 3, Nov. 7, 1941.] 6 Federal 
Register 5722. 

General Licenses Under Executive Order No. 8389, 
April 10, 1940, as Amended, and Regulations Issued 
Pursuant Thereto, Relating to Transactions in Foreign 
Exchange, Etc. : 

Transactions Incident to Trade Between the United 
States and Any Part of China Other Than Man- 
churia [amendment of General License 58]. Novem- 
ber 12, 1941. (Treasury Department.) 6 Federal 
Register 5802. 

Offices of Certain New York Banks and Certain 
Other Institutions Within China [amendment of 
General License 59] . November 12, 1941. (Treasury 
Department.) 6 Federal Register 5804. 



Offices of Certain Chinese Banks Outside the 
United States and Not Within Any Blocked Country 
Other Than China [amendment of General License 
61]. November 12, 1941. (Treasury Department.) 
6 Federal Register 5804. 

Transactions Incident to Trade Between the 
Philippine Islands and China and Between the 
Philippine Islands and Japan [revocation of General 
License 64]. November 12, 1941. (Treasury Depart- 
ment.) 6 Federal Register 5804. 

Remittances Through Domestic Banks to Persons 
in China [grant of General License 75]. November 
12, 1941. (Treasury Department.) 6 Federal 
Register 5804. 



Publications 



Department of State 

Insert for Treaty Series 830 (superseding insert of 
Mar. 27, 1937) : Treaty for the Limitation and Reduc- 
tion of Naval Armament Between the United States of 
America, the British Empire, France, Italy, and Japan, 
Signed at London, April 22, 1930— Statement by the 
Department of State September 30, 1941 [terminating 
certain parts of the treaty]. 2 pp. 

Trade Agreement With Argentina [Analysis of gen- 
eral provisions and reciprocal benefits]. The Depart- 
ment of State Bulletin, October 18, 1941, Supplement, 
Vol. V, No. 121A. Publication 1656. 44 pp. 10«;. 



U. S. GOVERNMENT PRINTING OFFICE; 1941 



For sale by the Superintendent of Documents, Washington, D. C. — Price, 10 cents ----- Subscription price, ?2.75 a year 

PUBLISHED WEBKLI WITH THE APPBOVAL Or THE OIBECTOB OF THB BUBEAU OF THE BCDQBT 



THE DEPARTMENT OF STATE 

BULLETIN 



NOVEMBER 22, 1941 
Vol. V, No. 126— Publication 1668 







ontents 




American Republics Pag« 
Agreements with Mexico: 

Statement by the Secretary of State 399 

Summary of the agreements 40O 

Exchange of notes 401 

Use of foreign-flag ships immobilized in American 

ports 403 

Ilhiess of the President of Chile 405 

Presentation of letters of credence by the Ambassador 

of Panama 405 

The Near East 

Visit to the United States of the King of Greece . . . 406 
Europe 

Suspension of economic assistance to French North 

Africa ' 407 

National Defense 

The Defense of America: Address by Assistant Secre- 
tary Long 407 

Presentation of letters of credence by the Minister of 

Iceland 409 

Commercial Policy 

Trade-agreement negotiations with Iceland 411 

Commercial Cooperation Between the American 
Republics: Radio Address by Assistant Secretary 
Achcson 417 

The Foreign Service 

Personnel changes 420 



[over] 



U. S. SUPERINTFNDENT OF DOCUMENTS 
DEC 16 1941 







ontents-coNTwvED 



TrEATy'InfORMATION Page 

Mutual assistance: Resolution XV on Reciprocal 
Assistance and Cooperation for the Defense of the 

Nations of the Americas 421 

Claims and finance: Agreements With Mexico .... 421 

Commerce: Trade Agreement With Iceland 421 

Flora and fauna: Convention on Nature Protection and 

Wildlife Preservation in the Western Hemisphere > 421 
Legal assistance: Protocol on Uniformity of Powers of 

Attorney Wliich Are To Be UtOized Abroad . . . 421 
Telecommunications: Inter-American Arrangement 

Concerning Radiocommunications 422 

Legislation 422 

Regulations 422 

Publications 422 



American Republics 



AGREEMENTS WITH MEXICO 
STATEMENT BY THE SECRETARY OF STATE 



[Released to the press November 19] 

The agreements which Mexico and the 
United States have reached today are of out- 
standing importance in the relations between 
the two countries. Not only do they concern 
most of the principal mutual problems which 
have long been pending between the two sister 
republics but they mark a new milestone of 
great importance in the cause of increasingly 
closer collaboration and solidarity between the 
countries of the New World. These agreements 
constitute a further concrete proof of the fact 
that problems existing between nations are 
capable of mutually satisfactory settlement 
when approached in a reciprocal spirit of good 
will, tolerance, and a desire to understand each 
other's points of view. 

These agreements have been reached only 
after months of discussion and negotiation. 
Some of the questions involved, such as those 
coming under the heading of General Claims, 
have defied solution for generations. Others, 
such as those growing out of the expropriation 
of petroleum properties owned by nationals of 
the United States, while of comparatively 
recent origin, have presented very difficult and 
complicated issues. 

The scope of these agreements is evident 
from their mention. They cover an adjust- 
ment of property claims including the so-called 
General Claims and the agrarian claims, an 
agreement covering the expropriation of 
United States petroleum properties; an agree- 
ment in principle to negotiate a reciprocal- 

428188—41 1 



trade agreement; an arrangement between the 
United States Treasury Department and the 
Mexican Government and the Banco de 
Mexico for the stabilization of the Mexican 
peso; an agreement for purchase by the United 
States Treasury Dei^artment of newly mined 
Mexican silver directly from the Mexican Gov- 
ernment; and an agreement between the 
Export-Import Bank and the Mexican Govern- 
ment for the extension of credits to facilitate 
the completion of the Inter-American High- 
way through Mexico. A separate statement 
regarding the broad outlines of the several 
agreements has been made available by the 
Department. 

The agreement covering the petroleum ex- 
propriations desei-ves special mention. The 
petroleum properties were expropriated three 
and one half yeare ago. Since that time nego- 
tiations have been repeatedly undertaken by 
the Mexican Government and the affected 
United States interests. Unfortunately, the 
negotiations involving the largest United States 
interests were fruitless. Although this Gov- 
ernment was not a direct participant in these 
negotiations it did what it could to facilitate 
a solution of the problem through both formal 
and informal representations to the Mexican 
Government. 

In view of the total absence of any negotia- 
tions between the American interests and the 
Mexican Government during the present calen- 
dar year, and because of the importance of ad- 
vancing the petroleum dispute to a prompt 

399 



400 



DEPARTMENT OF STATE BULLETIN 



settlement, this Government undertook to can- 
vass the problem with the Mexican Government 
in the hope that a fair and equitable arrange- 
ment might be reached. 

This Government believes that the arrange- 
ment signed today embodies a practical, effi- 
cient, and equitable procedure for promoting 
a solution of this question. Its central feature 



is provision for the determination of the value 
of the expropriated properties, rights, and in- 
terests. Tlais information obviously is essential 
in connection with any settlement. The Amer- 
ican interests involved will retain full liberty 
of action in determining the course they will 
pursue before, during, and after the valuation 
proceedings. 



SUMMARY OF THE AGREEMENTS 



tReleased to the press November 19] 

The Governments of the United States and 
Mexico, desirous of finding practical solutions 
for a number of problems of mutual interest, 
have been engaged in a series of conversations 
and negotiations over a period of months. The 
Department announces with deep satisfaction 
that, as a result of these discussions, agreement 
has been reached with regard to a number of 
those matters, as follows : 

I. EXPROPRIATION OF PETROLEUM PROPERTIES 

By an exchange of notes on November 19 be- 
tween the Mexican Ambassador and the De- 
partment of State, provision is made for de- 
termining the amount due to the American 
companies and interests whose properties and 
rights have been affected to their detriment 
by acts of the Mexican Govermnent through 
acts of expropriation or otherwise on March 
18, 1938 and subsequent thereto excepting 
those which have already made separate ar- 
rangements with the Mexican Government. 

The two Governments will each appoint 
within the next 30 days an expert whose duty 
it shall be to determine the just compensation 
to be paid the American owners for their prop- 
erties and rights and interests. 

If the American and Mexican experts shall 
agree upon the amount to be paid, they shall 
render their joint report to the two Govern- 
ments within five months. If they shall be 
unable to reach an agreement within that 
time, each shall submit a separate report to 
his Government within a further period of 



30 days. Upon the receipt of such reports, 
the two Governments shall seek through dip- 
lomatic negotiations to determine the amount 
of compensation to be paid. 

The ]\Iexican Government is at this time 
making a cash deposit of $9,000,000 on account 
of the compensation to be paid the affected 
American companies and interests. 

II. CLAIMS 

Tlie two Governments have found a means, 
so long lacking, of adjusting other outstanding 
property claims, including the so-called Gen- 
eral Claims and the agrarian claims. 

Under a claims convention signed on Novem- 
ber 19, 1941, Mexico agrees to pay to the United 
States tlie sum of $40,000,000 in full settlement 
of these property claims. Mexico will make a 
payment of $3,000,000 on account at the time 
of exchange of ratifications of the convention. 
Mexico has already made payments amounting 
to $3,000,000 on account of agi'arian claims aris- 
ing between August 30, 1927 and October 7, 
1940. 

The balance remaining due to the United 
States amounting to $34,000,000, after the 
$3,000,000 payment when ratifications are ex- 
changed, will be liquidated over a period of 
years through the annual payment by Mexico of 
$2,500,000, beginning in 1942. 

in. TRADE AGREEMENT 

The two Governments have decided in prin- 
ciple to negotiate a reciprocal-trade agi-eement. 
Formal announcement of intention to negoti- 



NOVEMBER 2 2, 1941 



401 



ate will be made in due course, in accordance 
with the pertinent provisions of law. 

IV. STABILIZATION OF THE MEXICAN PESO - U. S. 
DOLLAR RATE OE EXCHANGE 

The Treasury Department has entered into an 
agreement for monetary and financial coopera- 
tion with the Mexican Government and the 
Banco de Mexico, which will provide, among 
other things, for the purchase of Mexican pesos 
with United States dollars. The U. S. dollars 
thus acquired by the Mexican authorities will 
greatly assist them in stabilizing the exchange 
value of the peso in terms of the dollar, to the 
mutual benefit and advantage of the two 
countries. 

V. MEXICAN SILVER 

The Treasury Department has also indicated 
its willingness to purchase newly mined Mexi- 
can silver direct from the Mexican Government 
on a basis similar to that under which such pur- 
chases were made prior to 1938. 

VI. FINANCING OF MEXICAN PROJECTS 

The Mexican Government has been engaged 
for a number of years in an important highway- 
construction program. It has financed a large 



part of this construction through the issuance 
of highway bonds which have been consistently 
serviced without any delays or difficulties. In 
order that the Mexican Government may expe- 
dite this highway-construction program, it has 
requested the Export -Import Bank to accept 
certain of these higliway bonds as security for 
credits. The Export-Import Bank has acceded 
to this request and has opened a credit on this 
account. 

It will be recalled that the Mexican highway 
system is a most important part of the Inter- 
American Highway and that construction work 
is well advanced in Mexico and a number of the 
other American republics. 

The Export -Import Bank is disposed to con- 
sider sympathetically other requests for credits 
for developments in Mexico, whether they are 
to be executed by the Mexican Government or 
are private enterprises guaranteed by that Gov- 
ernment, or one of its official agencies. 

VII. OTHER PROBLEMS 

The two Governments are actively continu- 
ing to study all other problems of interest to 
them. 

The text of the exchange of notes follows. 



EXCHANGE OF NOTES 



"November 19, 1941. 
"Excellency : 

"I have the honor to acknowledge the receipt 
of Your Excellency's note of today's date, read- 
ing as follows : 

" 'I have the honor to refer to recent conversa- 
tions I have had with Your Excellency with 
reference to compensating the nationals of the 
United States of America whose properties, 
rights or interests in the petroleum industry in 
the United Mexican States were affected by acts 
of expropriation or otherwise by the Govern- 
ment of Mexico subsequent to March 17, 1938. 

" 'It is my understanding that the following 
has been agreed upon : 



" '1. Each of the Governments will appoint, 
within the thirty days following the date of this 
note, an expert whose duty it shall be to deter- 
mine the just compensation to be paid the na- 
tionals of the United States of America whose 
properties, rights or interests in the petroleum 
industry in the United Mexican States were af- 
fected to their detriment by acts of the Govern- 
ment of Mexico subsequent to March 17, 1938. 
Nevertheless, the provisions of this note do not 
apply to properties, rights or interests which 
may have been included in any arrangement 
with respect to their purchase, transfer or in- 
demnification concluded between their owners 
or possessors and the Government of the United 



402 



DEPARTMENT OF STATE BULLETIN 



Mexican States and, in consequence, the experts 
will exclude from their evaluation proceedings 
and reports said rights, interests and properties. 

" '2. The designated experts will hold their 
first meeting in Mexico City within 15 days fol- 
lowing the appointment last made by either 
Government. The later meetings and other ac- 
tivities of the experts will take place on the dates 
and at the places which the experts themselves 
determine within the periods contemplated by 
this agreement and they shall be held on Mexi- 
can territory. 

" '3. Each Government shall designate such 
assistants as the respective experts may require 
to facilitate their labors. 

" '4. The expenses of salaries, maintenance, 
transportation and other incidental expendi- 
tures of the experts and their assistants, will be 
met by the Government naming them. The 
joint expenses incurred during the proceedings 
of the experts shall be shared equally by the two 
Governments. 

" '5. The experts shall at all times closely 
collaborate and cooperate in their evaluation 
proceedings. They may obtain directly such 
data and evidence as they may consider perti- 
nent to forming their opinion, or receive them 
from the interested persons and institutions 
and from the Governments of Mexico and of 
the United States of America. 

"'6. The experts shall have free access to 
all records in the possession of the Mexican 
Government, as well as to the oil fields, lands, 
installations, offices, buildings and any other 
properties whatsoever involved directly or indi- 
rectly in the evaluation. The United States 
expert, on the request of the Mexican expert, 
will ask the interested persons and institutions 
for pertinent evidence; when such request 
relates to evidence already submitted by such 
persons or institutions their refusal to comply 
with the request will bring into operation the 
applicable provision of paragraph 9. 

" '7. As soon as one expert obtains or learns 
of any pertinent data, report, or evidence, he 
will inform the other. Either expert may 
request from the other the furnishing of any 
data, report or evidence which for any reason 
are available only to the other. 



" '8. Within a period of two months, from 
the date of their first meeting, the experts 
shall obtain and receive all data, reports, and 
evidence; except that a further period of one 
month shall be allowed for the presentation by 
either expert of additional data, reports and 
evidence complementing, clarifying or recti- 
fj'ing the material obtained or received in the 
said period of two months. 

" '9. The experts are required to examine and 
appraise all the proofs obtained directly or 
that may be submitted to them. They shall not 
take into account an}' specific evidence sub- 
mitted ex parte when the person or institution 
submitting it refuses in connection with it to 
furnish pertinent complementary evidence 
requested by the United States expert, in ac- 
cordance with the provisions of paragi-aph 6. 
The experts shall not take into account reasons 
of a technical nature in formulating their 
decisions — be these joint or those submitted in 
disagreement — but will fix adequate indemni- 
ties on the basis of common rules of justice and 
equity and will be guided by the value of the 
properties, rights or interests at the time they 
were affected by acts of the Government of 
Mexico provided that these properties, rights 
or interests had been acquired by nationals of 
the United States of America prior to March 
18, 1938. 

" '10. The experts shall complete their work 
within five months from the date of this note. 
If they are in accord regarding the amount of 
the compensation due to the affected United 
States nationals, they shall submit a joint report 
to the two Governments fixing exactly the 
indenmities upon which they agree. The ex- 
perts shall formulate recommendations as to the 
manner and conditions of payment of the com- 
pensation. 

"'11. The experts shall fix equitable interest 
upon the indemnity compensation they find due ; 
this interest will apply from the date fixed by 
these experts up to the time of payment. 

" '12. Both Governments agree to consider 
unappealable the joint report resulting from the 
agreement of the experts, and, in consequence, 
as definitive, the compensation and interest fixed 
in such report. 



NOVEMBER 22, 1941 



403 



" '13. If, within the period indicated in para- 
graph 10, the experts are unable to reach agree- 
ment regarding the amount of just compensa- 
tion, each one, within an additional period of 
one month, shall submit to his own Government 
a separate report specifying the compensations 
which he considers due. 

" '14. In the event that the two experts fail 
to agree, and upon the expiration of the period 
specified in paragraph 13, the two Governments 
shall, within a period of one month, initiate 
diplomatic negotiations with a view to establish- 
ing the amount of the compensations to be paid. 

" '15. If, within a period of five months from 
the date of initiation of diplomatic negotiations, 
as provided in paragraph 14, the two Govern- 
ments do not agi'ee upon the amount of com- 
pensation to be piiid, the present agreement 
shall be without effect, and there shall be re- 
turned to the United Mexican States, at the re- 
quest of the Government thereof, the amount 
deposited in accordance with the pertinent 
stipulation of the following paragraph. 

" '16. The two Governments shall agree upon 
the manner and conditions of payment of the 
compensation found to be due to the affected 
United States nationals under either of the two 
aforementioned procedures. Such payment 
shall, however, be completed within a period of 
not more than seven years. 



" 'The Government of Mexico will deliver to- 
day, as a deposit, to the Government of the 
United States of America, the sum of $9,000,000 
(nine million dollars). United States cur- 
rency, which sum shall be applied immediately 
on account of the compensation determined to 
be due. 

" '17. The Government of the United States 
will facilitate negotiations between the Govern- 
ment of Mexico and representatives of such oil 
companies as may be interested in an agreement 
for the marketing of exports of Mexican petro- 
leum products. 

" '18. Nothing contained in this note shall be 
regarded as a precedent or be invoked by either 
of the two Governments in the settlement, be- 
tween them, of any future difficulty, conflict, 
controversy or arbitration. The action herein 
provided for is considered as singular and excep- 
tional, appropriate solely to this case, and moti- 
vated by the character of the problem itself.' 

"In reply, I have the honor to confirm the 
understanding we have reached as set forth in 
Your Excellency's note under reference. 

"Accept [etc.] Cordell Hull" 

"His Excellency Senor Dr. Don 
Francisco Castillo Najera, 

^^ Ambassador of Mexico.'''' 



USE OF FOREIGN-FLAG SHIPS IMMOBILIZED IN AMERICAN PORTS 



The Inter-American Financial and Eco- 
nomic Advisory Committee, consisting of rep- 
resentatives of the 21 American republics, at 
a meeting on November 14, 1941 at the Pan 
American Union, adopted a resolution recom- 
mending the formation of a special commis- 
sion to formulate plans for the efficient use of 
all merchant vessels available for service be- 
tween the American republics, including for- 
eign-flag ships immobilized in American ports. 
Countries which have taken over or are in a 
position to take over the foreign-flag ships are 
the United States, Argentina, Brazil, Chile, 



Colombia, Cuba, Ecuador, Mexico, Peru, Uru- 
guay, and Venezuela. The text of the resolu- 
tion follows: 

"Whereas: 



"There was placed in effect on August 28, 
1941 ^ a plan for the effective use in the interest 
of inter-American commerce of the ships to 
which the Resolution of the Inter-American 



^Bulletin of August 30, 1941, p. 165. 



404 



DEPARTMENT OF STATE BTTLLETIN 



Financial and Economic Advisory Committee 
of April 26, 19^1^ refers: 

II 

"The principles in paragraphs 1 and 3 of the 
Inter-American plan to which the same Reso- 
lution refers are the following: 

'"(1) The basic principle of the plan is that 
the vessels now Ij'ing in American ports shall 
be utilized in accordance with the resolution of 
April 26, 1941 in such a manner as to promote 
the defense of the economies of the American 
Republics as well as the peace and security of 
the continent. 

"'(3) In order to attain the maximum effi- 
ciency in the operation of available shipping, 
there must be the closest cooperation among 
the maritime authorities of the ship-operating 
nations of the Western Hemisphere in plan- 
ning the most effective use of all available ves- 
sels. This cooperation must extend to the 
allocation of particular vessels to the several 
trade routes; to efficient scheduling where more 
than one shipping line serves an individual 
port or nation; to the diversion of at least 
minimum shipping facilities to those nations 
not reasonably adequately served and in which 
there lie no or not sufficient inactive vessels 
to alleviate at least partially the situation; 
and to the exchange or interchange among the 
ship-operating nations of vessels of various 
types in order that each may operate the type 
of vessels which it is in a position to handle 
and which are appropriate to the type of com- 
merce to be borne.' 

Ill 

"The Inter-American Financial and Eco- 
nomic Advisory Committee, on August 7, 1941, 
adopted a report of the Special Subcommittee 
on Immobilized Ships, that contains the fol- 
lowing : 

" '6. The Subcommittee has noted that three 
of the Governments — Argentine, Chile and 
Mexico — have raised some questions with regard 



' Bulletin of May 3, 1941, p. 531, 



to paragraph 3 of the plan, which is intended 
to provide for the closest cooperation in the 
utilization of all available vessels in the West- 
ern Hemisphere. Such cooperation will be that 
of sovereign nations, however, and it is intended 
that the Inter-American Financial and Eco- 
nomic Advisory Committee shall have no more 
than an advisory status in the matter.' 

"Resolves : 

"1. To recommend the organization of a 
Commission that will be a dependency of the 
Inter-American Financial and Economic Ad- 
visory Committee, and that will consist of one 
representative of the aforementioned Commit- 
tee, who will act as Chairman of the Commis- 
sion, and also of experts representing the re- 
spective Maritime Authorities, each one to be 
designated by each of the Governments of the 
American Republics that have taken, or are in 
a position to take over, the immobilized ships 
referred to by the inter-American plan ap- 
proved August 28, 1941. The representative 
of the Inter-American Financial and Economic 
Advisoi-y Committee will be chosen by the 
Chairman from among those Delegates to the 
Committee that do not represent any of the 
countries appointing the other members of the 
Commission. 

"2. The Commission will carry out the aims 
contained in paragraphs 1 and 3 of the afore- 
mentioned inter-American plan, and to this 
effect, will meet regularly in its place of resi- 
dence, which will be in the United States of 
America, in order to formulate plans for the 
efficient use of all the merchant vessels avail- 
able for service between the American Repub- 
lics and to recommend to the Maritime Au- 
thorities the allocation of such vessels to par- 
ticular routes or to the carrying of articles of 
a specific nature. The Commission will com- 
.municate its recommendations to the Maritime 
Authorities through the Inter- American Finan- 
cial and Economic Advisory Committee. 

"3. In order to avoid any delay in the func- 
tioning of the Commission, it will be considered 
as constituted as soon as four of its members 
have been designated." 



NOVEMBER 22, 1941 

ILLNESS OF THE PRESIDENT OF CHILE 

[Released to the press November 18] 

The President has sent the following tele- 
gram to His Excellency Dr. Don Pedro Aguirro 
Cerda, President of the Republic of Chile: 

"NOVTEMBER 17, 1941. 

"It vras with very deep regret that I learned 
that ill health had necessitated your laying aside 
temporarily the duties of the Executive. I 
most earnestly hope that the rest which you so 
well deserve will promptly restore you once 
again to good health. With warm personal 

* ^ ■ Franklin D Roosevelt" 

PRESENTATION OF LETTERS OF CRE- 
DENCE BY THE AMBASSADOR OF 
PANAMA 

[Released to the press November 17] 

A translation of the remarks of the newly 
appointed Ambassador of Panama, Senor Don 
Ernesto Jaen Guardia, upon the occasion of the 
presentation of his letters of credence follows: 

"Mr. President: 

"It gives me particular pleasure to have the 
high honor of presenting to you, together with 
the respectful and cordial greetings of the meri- 
torious citizen who today governs the destinies 
of the Republic of Panama, the autograph let- 
ters which accredit me as Ambassador Extraor- 
dinary and Plenipotentiary of my country near 
the Government which your illustrious person 
patriotically guides along the true course of 
real democracy. 

"It is also an honor for me to present to you., 
Mr. President, the letters of recall of my worthy 
predecessor, Dr. Carlos N. Brin, who, by his 
high qualities, was able to win Your Excel- 
lency's esteem. 

"The new leaders of the Government of the 
Republic of Panama will, as respects interna- 
tional policy, frankly and sincerely accept the 
declarations made at the meeting of Foreign 
Ministers held in Panama and ratified in Ha- 
bana in the sense of maintaining continental 
solidarity to the benefit of the democratic spirit 
which represents the bases of its institutions, 

428188 — 41 2 



405 

"The Government of my country, conscious 
of its historic mission, understands that in order 
to defend the fundamental interests and ideals 
of the American Continent it is indispensable 
that there be close cooperation among each and 
all of the American nations, and it will act in a 
manner compatible with its traditional demo- 
cratic spirit within the principles laid down by 
its dignity as a sovereign country. 

"My Government is especially eager to carry 
to a happy settlement the negotiations which 
have been carried on relating to various matters 
of joint interest to our two Governments. In 
the light of the friendly consideration which 
Your Excellency's Government has given to 
certain questions of importance to the Repub- 
lic of Panama, I am confident that, on a plane of 
mutual cooperation and good understanding, an 
agreement will soon be reached satisfactory to 
both countries. 

"In truth, Excellency, your Nation and mine 
can be proud to offer to the world the noblest 
example of international friendship. Together 
our countries succeeded in humbling the Andes 
in order that the two oceans should embrace in 
peace, on the virgin soil of the Isthmus of Pan- 
ama, thus bringing to pass that dream of cen- 
turies : the Panama Canal. Today we struggle 
together, mingling our sweat, our strength, and 
even our blood in works which complement that 
canal, in the defense of which we are both 
vitally interested. 

"Mr. President, my Government knows that 
in this great democracy it has understanding 
and faithful friends who will grant to my 
country the same unshakeable friendship an>l 
the noblest cooperation, in this way maintain- 
ing the bonds of sincere harmony which have 
always existed between our two countries. 

"I wish, Excellency, to take advantage of this 
opportunity which destiny has offered me lo 
say to you that, having lived in this great 
democracy for teTi years, studying in its uni- 
versities and practicing my profession after 
completing my studies, I have an accurate un- 
derstanding of the mentality of this great 
Nation and such mentality, as respt^ ts the inter- 
American policy, is fully identified with the 



406 

policy of the Good Neighbor which you have so 
brilliantly sponsored. 

"In beginning my duties as Ambassador 
Extraordinary and Plenipotentiary of the Re- 
public of Panama, I wish to renew to you, 
Excellency, the most cordial wishes of the Chief 
of the Executive Power of my country and my 
own for the prosperity of the people of the 
United States of America and for Your Ex- 
cellency's personal happiness." 

The President's reply to the remarks of Senor 
Don Ei'nesto Jaen Guardia follows : 

"Mr. Ambassador: 

"In receiving with pleasure the letters from 
the Chief of the Executive Power of the Re- 
public of Panama, accrediting you as Ambas- 
sador Extraordinary and Plenipotentiary of 
Panama near the Government of the United 
States of America, which you have presented to 
me, I wish to thank His Excellency the Chief of 
the Executive Power, through your person, for 
the good wishes which you bring to me on his 
behalf. 

"I accept also the letters of recall of your dis- 
tinguished predecessor, Dr. Carlos N. Erin, 
whose relations wilh the officials of tliis Gov- 
ernment were conducted upon a most friendly 
basis. 

"There is indeed, Mr. Ambassador, as you 
state, a notable reason for the particularly close 
and cordial relationship between the United 
States of America and the Republic of Panama. 
I share with you ihe aspiration of your Govern- 
ment that the most effective cooperation and 
firm friendship shall continue, during these 
troubled times, and afterwards, between our two 
Governments and peoples. 

"The fundamental principles of continental 
solidarity reaffirmed by Your Excellency's Gov- 
ernment, together with those of the United 
States of America and our nineteen sister re- 
publics at the conferences of Foreign Ministers 
held in Panama and Habana, form the un- 
shakeable foundation on which the security of 
our national liberties and sovereignty has been 
built. 



DEPARTMENT OF STATE BULLETIN 

"The several years which you spent in this 
country as a student, and in the profession of 
engineering, undoubtedly gives you not only a 
familiarity with the life and thought of our 
people, but also an appreciation of the peculiar 
significance of the Panama Canal, an engineer- 
ing feat to which the labor and genius of both 
of our peoples contributed. 

"I take pleasure in informing you that the 
Government of the United States and its offi- 
cials are prepared in every way to facilitate 
your efforts in the performance of the important 
mission which has been entrusted to you. 

"I wish to take advantage of this opportunity, 
Mr. Ambassador, to request you to inform the 
distinguished Chief of the Executive Power of 
your country, Seiior Ricardo Adolfo de la 
Guardia, that I send him my warmest personal 
greetings and wishes for his well being, and also 
those of the Government of the United States, 
for the continued prosperity of the people of 
Panama." 



The Near East 



VISIT TO THE UNITED STATES OF THE 
KING OF GREECE 

[Released to the press November 17] 

His Majesty King George II of the Hellenes 
will visit the United States for about three 
weeks the beginning of next month. The King's 
younger brother. Crown Prince Paul, and the 
Prime Minister of Greece, Mr. Emanuel Tsou- 
deros, and a small staff, will accompany the 
King. During his visit His Majesty expects to 
spend a few days in Washington, New York, 
and probably Chicago. During the visit to the 
Capital, the King will spend the night at the 
White House. 

[Released to the press November 21] 

At the request of His Majesty the King of 
Greece, his visit to the United States, which 
was to have taken place early next month, has 
been postponed until a later date. Further 
details, including the date of arrival in the 
United States, will be announced later. 



NOVEMBER 22, 1941 



407 



Europe 



SUSPENSION OF ECONOMIC ASSIST- 
ANCE TO FRENCH NORTH AFRICA 

[Released to the press November 20] 

According to reports reaching the Depart- 
ment the French Government has acquiesced to 
the express demand of Hitler to remove General 



Weygand from his post as Delegate General of 
France in Africa, thus permitting a German 
control over French authority entirely outside 
of the provisions of the Armistice. As a result 
of these reports American policy toward France 
is being reviewed, and all plans for economic 
assistance to French North Africa are sus- 
pended. It remains to be seen to what further 
extent Hitler will attempt to take over by force 
or threat of force the sovereignty and control 
of the French Empire. 



National Defense 



THE DEFENSE OF AMERICA 
ADDRESS BY ASSISTANT SECRETARY LONG' 



[Released to the press November 17] 

The defense of America is the purpose of 
the organization under whose auspices this 
meeting tonight is being held. I am gratified to 
see the cooperation of individual citizens in 
national defense, as manifested in this organiza- 
tion. 

In a dangerous world, with aggressor na- 
tions endeavoring to win control of the seas and 
conquer the earth, the paramount aim of our 
national policy must be self-defense — the pre- 
servation of the security and safety of the 
Nation. 

Hitler's program of world-conquest has as its 
great intermediate objective the capture of 
Great Rritain and the domination of the high 
seas. These high seas lead to this hemisphere 
and to these United States. Having overrun 16 
European countries, he has now extended his 
submarine warfare far into the Atlantic. By 
terrorism and frightfulness he is endeavoring 
to drive our ships from the high seas. Even 
in the waters of the Western Hemisphere his 



' Delivered under tlie auspices of tlie Committee to 
Defend America, at the "Unite for Freedom Rally", 
Washington, November 16, 1&41. 



armed forces have attacked and destroyed our 
shijis, as well as ships of other American re- 
publics, with resulting loss of American lives. 

This progressing menace has made more than 
ever necessary for us a mighty effort in national 
defense. It has brought to our consciousness the 
fact that national defense involves activities 
beyond the borders of the United States in order 
to keep danger from our shores. It has caused 
us to understand that the oceans which lead to 
our shores must not be dominated by a force 
which desires to control this hemisphere as part 
of its program to dominate the world. It has 
made us realize that this hemisphere must be 
safe as a whole if its parts are to continue safe, 
and has convinced us of the necessity for hemi- 
spheric solidarity — for hemispheric defense — 
and for undisputable defense of the waters lead- 
ing to this hemisphere. 

It is encouraging that in this hour of world 
crisis no American would dissent from the 
transcendent need for defending our country. 
When the matter is looked at in its proper 
perspective, between the most extreme points 
of view on this question there is no difference 
in principle, but only in degree. Such dis- 
agreement as exists is at what point and by 



408 

■what specific measures defense must be under- 
taken. It is only a question of when or where 
or how to begin defense — but no question is 
raised of the necessity for defense. 

All American citizens can rest assured that 
their civilian, military, and naval leaders in 
the Government who constantly study the 
question of national defense are taking the 
measures best calculated to guarantee the se- 
curity of our Nation. These leaders have 
mapped out a program of national defense 
and are continuously adjusting it to meet 
changing conditions. 

Oar program of national defense has to be, 
of necessity, many-sided in order to meet any 
possible contingency. We must prepare to 
meet a challenge from whatever direction it 
may originate. Accordingly, we have under- 
taken a tremendous increase in our Army, our 
Navy, and our Air Corps. We have embarked 
upon a mighty program for the production of 
ships and tanks and planes and guns. 

As an essential part of our own defense, we 
have extended material assistance to the na- 
tions which are resisting aggression. When 
France was falling this Government turned 
over to Great Britain large supplies of rifles, 
machine guns, field artillery, ammunition, and 
aircraft out of our surplus stocks of muni- 
tions. These articles arrived in the British 
Isles after the retreat from Dunkirk, when 
the British were in desperate need of military 
equipment. Since that time we have sent great 
quantities of military supplies to Great Brit- 
ain, China, and Russia for their use in resist- 
ing aggression. 

We have concluded an arrangement with 
Great Britain under which we have acquired 
long-time leases of eight strategically located 
naval and air bases, which enable us to create 
a protective girdle of steel along the Atlantic 
seaboard of the American Continent. We are 
engaged in defense consultations with the other 
American republics. We have cooperated with 
Canada in setting up a Permanent Joint Board 
on Defense, which deals with sea-, land-, and 
air-defense problems. We have concluded an 



DEPARTME^fT OF STATE BULLETIN 

agreement which grants to the United States 
in Greenland the right to locate and construct 
airplane landing fields and facilities for the 
defense of the American Continent. We have 
undertaken the protection of Iceland in order 
to prevent the occupation by Germany of this 
strategical outpost which might be used as a 
base for eventual attack upon the United 
States and the other nations of the Western 
Hemisphere. 

Within the past few days the Congress of the 
United States has provided for the repeal of 
parts of the Neutrality Act of 1939. The pur- 
pose of this repeal is to free our Nation from 
self-imposed shackles which have interfered 
with our freedom to take necessary measures of 
self-defense. With these restrictions removed, 
we are fi'ee to arm our merchant vessels for 
their own protection and, in extreme emer- 
gency, to use these ships for carrj'ing supplies 
to nations which are resisting the attempt of 
aggressor nations to dominate the earth. 

In planning our measures of self-defense we 
are constantly faced with the fact that the 
world of today, as compared with the world of 
our forefathers, is very much smaller as a re- 
sult of the development of means of trans- 
portation and communication. A war in any 
part of the world is now of i-eal concern to us 
because sparks from that conflagration might 
easily drift across to our own hemisphere. The 
bombing plane, with its swift flight and deadly 
cargo, looms as a constant menace to this coun- 
try as long as ruthless and desperate aggres- 
sors are marching across the earth in an en- 
deavor to secure world-domination. 

In the days ahead sacrifice in some degree 
will be necessary for all of us. We must real- 
ize that the end in view is the preservation of 
our national existence, of our free institutions, 
of our way of life. It is to insure that the 
torch of liberty, lighted in this country a 
century and a half ago, shall not be extin- 
guished. For that end, no sacrifice is too 
great. However, we can be assured that the 
sacrifice will not be of fundamental rights; 
it will be for the sake of making those rights 
secure. 



NOVEMBER 22, 1941 



409 



I often think that in this country we are too 
prone to take our liberties for granted. We 
forget that they were brought about through 
the struggle and sacrifice of the founders of 
this Nation. We assume as a matter of course 
the perpetual existence of individual freedom, 
freedom of speech, freedom of religion, and 
freedom of the press. With our country sur- 
rounded on both sides by broad oceans, we 
would like to enjoy our leisure and luxury, and 
trust to the future to take care of itself. How- 
ever, we cannot take for granted the continued 
existence of these liberties. We must be ready 
to defend them and to make additional sacri- 
fices to secure their continuance. 

The struggle to preserve our freedom will 
be hard, and it may be long. The forces of 
opposition are well organized and have been 
preparing for years. In the history of this 
country there have been many challenges to 
meet and overcome. We have always met them 
successfully. I do not doubt that we shall 
meet successfully the new and greater chal- 
lenge confronting us today. 

As I stand in this hall, named for our Char- 
ter of Government, I am reminded anew of a 
great cornerstone of that Charter. It is to 
"secure the blessings of liberty to ourselves 
and our posterity". I am confident that in the 
days to come we shall, by a united effort of the 
whole people, preserve the blessings of liberty 
for ourselves and for the future generations 
in America. 

PRESENTATION OF LETTERS OF CRE- 
DENCE BY THE MINISTER OF ICE- 
LAND 

[Released to the press November 21] 

The remarks of the newly appointed Minister 
of Iceland, Mr. Thor Thors, upon the occasion 
of the presentation of his letters of credence 
follows : 

"Mr. President: 

"I have the honor to present to Your Excel- 
lency the letters which accredit me near the 
Government of the United States of America 

428188 — 41 3 



as Envoy Extraordinary and Minister Pleni- 
potentiary of Iceland. 

''The United States of America and Iceland 
are today closer connected and related in fact 
and mind than ever before. One of the many 
tokens thereof is the exchange of diplomatic 
representatives between the two nations for the 
first time. 

"The Icelandic Government and the Icelandic 
Nation are profoundly aware that this event 
marks a decisive step in Iceland's struggle to 
regain the sovereignty and independence of our 
republic of ancient times. 

"I am deeply sensible of the great honor and 
privilege accorded to me to have been appointed 
Iceland's first Minister to the United States and 
it will give me the greatest happiness to en- 
deavor to further and cement the understanding 
and the friendly relations between our two 
peojjles, which have existed since the dawn of 
our history and in recent times have become so 
explicit. 

"Iceland is proud to recall the historic fact 
that it was Leifr Eiriksson, who was born and 
brought up in Iceland, who discovered this 
great mainland and, fii"st of all white men, set 
foot on American soil in the year 1000. Fur- 
thermore, it was the Icelander, Thorfinnur 
Karlsefni who established the first European 
settlement in North America in the years 1003- 
1006. These are facts which bind together the 
history of the United States and the history of 
Iceland. 

"However, there are many other common 
bonds of old and late. 

"The colonization of Iceland is based on the 
fact that, because of the oppression of a king, 
many of the most independent, powerful, and 
prominent chieftains of Norway left their an- 
cestral homes and sailed westwards in their 
Viking ships in search of freedom and inde- 
pendence. It is equally known that large num- 
bers of the American colonists came here from 
foreign shores to escape oppression and to live 
in freedom. Thus the great American Nation 
and our small Nation have a strong common 
heritage — a love of freedom and longing for 
independence. 



410 



DEPARTMENT OF STATE BULLETIN 



"Iceland founded its Parliament in the year 
930 and formed a republic. Thus our two na- 
tions are also united by bond of democracy. 

"Today, in the world's most fateful and 
decisive struggle for freedom and democracy, 
the greatest and most powerful democracy of 
the world and the oldest and smallest amongst 
free and democratic nations stand side by side. 
The tide of history has turned, and today the 
American Vikings set their course towai'd Ice- 
land and there take their watchful stand. 
Today, Iceland's firm rocks rise as outposts of 
the defense of the Americas. We have freely 
lent our territory to the ideals of liberty and 
freedom which mean the very life both to the 
American and Icelandic Nations. 

"In our present close relations there are, 
however, bound to be certain difficult problems, 
but I am confident that through the true spirit 
of cooperation these can and will be solved. 
The Icelandic Nation profoundly shares the 
hopes of the American people that their sons 
who now are the brave sentinels of the North 
may soon safely return to their happy hearths 
and homes after having effectively completed 
their important mission. 

"The Government and the people of Iceland 
look with hope and complete confidence toward 
the United States and their great President. 
We are happy in the assurances of Iceland's 
complete independence and sovereignty which 
Your Excellency has given to my Government 
and deeply appreciate your pledge that, at the 
termination of the present war, the United 
States will advocate before the world full 
recognition of our independence and sov- 
ereignty. 

"We know that freedom means life to every 
true American, and we hope and pray that the 
United States may ever be the fortress of 
liberty and the happy home of free men, and 
that the torch on the Statue of Liberty may 



send its encouraging and liberating beams to 
every corner of the world. 

"Mr. Pi-esident, as I begin my mission near 
the Government of the United States, I wish to 
express my conviction that I shall always meet 
with strong, efficient assistance and the great- 
est good-will for tlie accomplishment of a task 
which is particularly pleasant for me and by 
which I am deeply honored." 

The President's reply to the remarks of Mr. 
Thor Thors follows : 

"Mr. Minister: 

"It is with a profound sense of the historic 
importance of the occasion that I accept from 
your hands the letters by which you are ac- 
credited Iceland's first Envoy Extraordinary 
and Minister Plenipotentiary near the Gov- 
ernment of the United States. I am happy to 
receive you in that capacity. You may be 
assured of my willingness and that of the other 
officials of the Government to cooperate with 
you in the execution of your important mission. 

"You are no stranger to this country, Mr. 
Minister, nor are Iceland and its people 
strangers to us. Their historic tradition of a 
thousand years of freedom and individual lib- 
erty is an inspiration to men the world over and 
a challenge to those evil forces which seek to 
shackle mankind in the bondage of slavery for 
years to come. We are proud that the course of 
history has now so closely associated the people 
of Iceland and the people of the United States 
in the fellowship of free men against whose 
tough determination to maintain their liberties 
the forces of oppression cannot prevail. 

"I should be most grateful if you will convey 
to His Excellency the Regent of Iceland my cor- 
dial wishes for his health and happiness and for 
the happiness and well-being of the people of 
Iceland." 



Commercial Policy 



TRADE-AGREEMENT NEGOTIATIONS WITH ICELAND 



[Released to the press November 17] 

On November 17, the Secretary of State issued 
formal notice of intention to negotiate a trade 
agreement with the Government of Iceland. 

The Committee for Reciprocity Information 
issued simultaneously a notice setting the dates 
for the submission to it of information and 
views in writing and of applications to appear 
at public hearings to be held by the Committee, 
and fixing the time and place for the opening 
of the hearings. 

There is printed below a list of products 
which will come under consideration for the 
possible granting of concessions by the Govern- 
ment of the United States. Representations 
which interested persons may wish to make to 
the Committee for Reciprocity Information 
need not be confined to the articles appearing 
on this list, but may cover any articles of actual 
or potential interest in the import or export 
trade of the United States with Iceland. How- 
ever, only the articles contained in the list 
issued November 17 or in any supplementary 
list issued later will come under consideration 
for the possible granting of concessions by the 
Government of the United States. 

Suggestions with regard to the form and con- 
tent of presentations addressed to the Commit- 
tee for Reciprocity Information are included in 
a statement released by that Committee on De- 
cember 13, 1937. 

A compilation showing the total trade be- 
tween the United States and Iceland during the 
years 1929^0 inclusive, together with the prin- 
cipal products involved in the trade between the 
two countries during the years 1939 and 1940, 
has been prepared by the Department of Com- 
merce and is printed below. 



List of Products on Which the United States 
Will Consider Granting Concessions to 
Iceland 

Note: The rates of duty indicated are those 
now applicable to products of Iceland. Where 
the rate is one which has been reduced pursuant 
to a previous trade agreement by 50 percent 
(the maximum permitted by the Trade Agree- 
ments Act) it is indicated by the symbol mr. 
Where the rate represents a reduction pursuant 
to a previous trade agreement, but less than a 
50-percent reduction, it is indicated by the 
symbol r. Wliere a rate has been bound against 
increase, but has not been reduced in a previous 
trade agreement, it is indicated by the symbol 
b; likewise, items which have been bound free 
of duty are indicated by the symbol b. 

For the purpose of facilitating identification 
of the articles listed, reference is made in the list 
to the paragraph nmnbers of the tariff schedules 
in the Tariff Act of 1930. 

In the event that articles which are at present 
regarded as classifiable under the descriptions 
included in the list are excluded therefrom by 
judicial decision or otherwise prior to the con- 
clusion of the agreement, the list will neverthe- 
less be considered as including such articles. 



United 
States 
Tariff 
Act of 
1930 
Para- 
graph 



717(0). 



Description of article 



Fish, dried and unsalted: 
Cod, haddock, hake, pollock, 

and cusk. 
other --- 



Present rate of 
duty 



2Ht per lb. 
mt per lb. 



Symbol 



411 



412 



DEPARTMENT OF STATE BULLETIN 



United 
States 
Tariff 
Act of 
1930 
Para- 
graph 



n8(a). 



718(b). 



719- 



720(a)... 



Description of article 



Fish (other than tuna), pre- 
pared or preserved in any 
manner, when packed in oU 
or in oil and other sub- 
stances; 
When of a value not exceeding 
9 cents per pound, includ- 
ing the weight of the im- 
mediate container only. 

Other 

Fish (other than salmon), pre- 
pared or preserved in any 
manner, when packed in 
airtight containers weigh- 
ing with their contents not 
more than fifteen pounds 
each (except fish packed in 
oil or in oil and other sub- 
stances) : 
Herring, smoked or kippered 
or in tomato sauce, 
packed in immediate con- 
tainers weighing with 
their contents more than 
one pound each. 

Other --- 

Fish, pickled or salted (except 
flsh packed in oil or in oil 
and other substances and 
except flsh packed in air- 
tight containers weighing 
with their contents not 
more than fifteen pounds 
each); 
(2) Cod, haddock, hake, pol- 
lock, and cusk, neither 
skinned nor boned (ex- 
cept that the vertebral 
column may be removed); 
When containing not more 
than 43 per centum of 
moisture by weight. 
When containing more 
than 43 per centum of 
moisture by weight. 
(4) Herring, whether or not 
boned: 
In bulk or in immediate 
containers weighing 
with their contents 
more than fifteen 
poimds each. 
In immediate containers 
(not airtighjt) weigh- 
ing with their contents 
not more than fifteen 
pounds each. 
Fish, smoked or kippered (ex- 
cept flsh packed in oil or in 
oil and other substances 
and except flsh packed in 
airtight containers weigh- 
ing with their contents not 
more than fifteen pounds 
each): 
(6) Other flsh. 



Present rate of 
duty 



44%adval. 



30% ad val. 



Symbol 



16% ad val. 



26% ad val. 



Hi per lb. 



Hi per lb. 



at -It per lb. 

net weight. 



25% ad val. 



26% ad val. 



MR 



MR 



R 
(in part) 



United 
States 
Tariff 
Act of 
1930 
Para- 
graph 


Description of article 


Present rate of 
duty 


Symbol 


721(d).... 


Caviar and other flsh roe for 
food purposes; 










20^ per lb. 






Any of the foregoing roe, if 


30% ad val. 






boiled and packed In air- 








tight containers, whether 








or not in bouillon or 








sauce. 






1519(a)... 


Dressed furs and dressed fur 
skins, not dyed; 








Lamb and sheep (except cara- 


16% ad val. 


R 




cul and Persian lamb). 






1685. 


Fish scrap and flsh meal of a 
grade used chiefly for fer- 
tilizers, or chiefly as an in- 
gredient in the manu- 
facture of fertilizers. 


Free 


B 


1730(b)... 


Cod oil and cod-!iver oil 


Free 




1780 


Fish scrap and flsh meal, unfit 
for human consumption. 


Free 





Department of State 

trade- agreement negotiations with iceland 

Public Notice 

Pursuant to section 4 of an act of Congress 
approved June 12, 1934, entitled "An Act to 
Amend the Tariff Act of 1930", as extended by 
Public Resolution 61, approved April 12, 1940, 
and to Executive Order 6750, of June 27, 1934, 
I hereby give notice of intention to negotiate 
a trade agreement with the Government of 
Iceland. 

All presentations of information and views in 
writing and applications for supplemental oral 
presentation of views with respect to the nego- 
tiation of such agreement should be submitted 
to the Committee for Reciprocity Information 
in accordance with the amiouncement of this 
date issued by that Committee concerning the 
manner and dates for the submission of briefs 
and applications, and the time set for public 
hearings. 

CORDELL HtTLL 

Secretary of State 

Washington, D. C, 
November 17, 1941. 



NOVEMBER 22, 1941 



413 



Committee for Reciprocity Information 

trade-agreement negotiations with iceland 

Public Notice 

Closing (late for Kubmission of briefs, December 
8, 1941; closing date for application to bo 
heard, December 8, 1941; public hearings 
open, December 15, 1941. 

The Committee for Reciprocity Information 
liereby gives notice that all information and 
views in writing, and all applications for sup- 
plemental oral presentation of views, in regar 1 
to the negotiation of a trade agreement with 
the Government of Iceland, of which notice of 
intention to negotiate has been issued by the 
Secretary of State on this date, shall be sub- 
mitted to the Committee for Reciprocity Infor- 
mation not later than 12 o'clock noon, December 
8, 1941. Such communications should be ad- 
dressed to "The Chairman, Committee for Reci- 
procity Information, Tariff Commission Build- 
ing, Eighth and E Streets NAV., Washington, 
D.C." 

A public hearing will be held beginning at 
10 a. m. on December 16, 1941, before the Com- 
mittee for Reciprocity Information in the hear- 
ing room of the Tariff Commission in tha 
Tariff Commission Building, where supple- 
mental oral statements will be heard. 

Six copies of written statements, either type- 
written or printed, shall be submitted, of which 
one copy shall be sworn to. Appearance at 
hearings before the Committee may be made 
only by those persons who have filed written 
statements and who have within the time pre- 
scribed made written application for a hearing, 
and statements made at such hearings shall be 
under oath. 

By direction of the Committee for Reciproc- 
ity Information this 17th day of November 
1941. 

E. M. WnrrcoMB 
Acting Secretary 

Washington, D.C, 
November 17, 191^1. 



[Released to the press November 10] 

SUPPLEJIENT TO THE LiST OF PRODUCTS ON WhICH 

THE United States Will Consider Grant- 
ing Concessions to Iceland 

Public notice of intention to negotiate a trade 
agreement with the Government of Iceland was 
issued on November 17, 1941. In connection 
with that notice, there was published a list of 
products on which the United States will con- 
sider the granting of concessions to Iceland, and 
it was announced that concessions on products 
not included in the list would not be considered 
unless supplementary announcement were made. 

The Secretary of State announced on Novem- 
ber 19 an additional product on which the 
United States will consider granting concessions 
to Iceland. 

The Committee for Reciprocity Information 
has prescribed that all information and views 
in writing and all applications for supplemental 
oral presentation of views relating to the pro- 
duct included in the following supplement shall 
be submitted to it not later than 12 o'clock noon, 
December 8, 1941. They should be addressed 
to "The Chairman, Committee for Reciprocity 
Information, Tariff Commission Building, 
Eighth and E Streets NW., Washington, D. C." 
Supplemental oral statements with regard to the 
product contained in the following supplement 
will be heard at the public hearing beginning 
at 10 a.m. on December 15, 1941, before the Com- 
mittee for Reciprocity Information, in the hear- 
ing room of the Tariff Commission in the Tariff 
Commission Building. 

Suggestions with regard to the form and con- 
tent of presentations addressed to the Committee 
for Reciprocity Information are included in a 
statement released by that Committee on Decem- 
ber 13, 1937. 

In the event that articles which are at present 
regarded as classifiable under the paragraph of 
the United States Tariff Act of 1930 and the 
section of the Internal Revenue Code specified 
below are excluded therefrom by judicial de- 
cision or otherwise prior to the conclusion of the 
agreement, the supplement will nevertheless be 
considered as including such articles. 



414 



DEPARTMENT OF STATE BULLETIN 



United 
States 
Tariff 
Act of 
1930 
Paragraph 


Description of article 


Present rate of 
duty 






bi per gallon. 









Internal 

Revenue 

Code 

Section 




Present rate of 
import tax 


M91(a)— 




3t per lb. 







The texts of the announcement by the Secre- 
tary of State and the public notice of the Com- 
mittee for Reciprocity Information of the sup- 
plement to the list of products on which the 
United States will consider granting concessions 
to Iceland follow : 

Depaktmei^t of State 

Pursuant to section 4 of an act of Congress 
approved June 12, 1934, entitled "An Act to 
Amend the Tariff Act of 1930", as extended by 
Public Resolution CI, approved April 12, 1940, 
and to Executive Order 6750, of June 27, 1934, 
public notice of intention to negotiate a trade 
agreement with the Government of Iceland was 
issued on November 17, 1941. In connection 
with that notice, there was published a list of 
products on which the United States will con- 
sider the granting of concessions to Iceland, and 
it was announced that concessions on products 
not included in the list would not be considered 
unless supplementai-y announcement were 
made. 

I hereby announce that the product described 
in the attached supplement has been added to 
the list issued on November 17, 1941. 
CoEDELi, Hull 

Secretary of State 

Washington, D.C, 
November 19, 194J. 



Committee for Reciprocitt Information 
trade-agreement negotiations 'with iceland 
Public Notice 
Supplement to the List of Products 
Closing date for submission of briefs, Decem- 
ber 8, 1941 ; closing date for application to be 
heard, December 8, 1911; public hearings 
open, December 15, 1941. 

The Committee for Reciprocity Information 
hereby gives notice that all information and 
views in writing, and all applications for sup- 
plemental oral presentation of views, with 
regard to the supplement to the list of products 
announced by the Secretary of State on this 
date in connection with the negotiation of a 
trade agreement with the Government of Ice- 
land, shall be submitted to the Committee for 
Reciprocity Information not later than 12 
o'clock noon, December 8, 1941. Such com- 
munications siiould be addressed to "The 
Chairman, Committee for Reciprocity In- 
formation, Tariff Commission Building, 
Eighth and E Streets NW., Washington, D.C." 

A public hearing will be held beginning at 
10 a. m. on December 15, 1941, before the Com- 
mittee for Reciprocity Information, in the 
hearing room of the Tariff Commission in the 
Tariff Commission Building, when supple- 
mental oral statements will be heard with re- 
gard to herring oil. 

Six copies of written statements, either type- 
written or printed, shall be submitted, of which 
one copy shall be sworn to. Appearance at 
hearings before the Committee may be made 
only by those persons who have filed written 
statements and who have within the time pre- 
scribed made written application for a hear- 
ing, and statements made at such hearings shall 
be under oath. 

By direction of the Committee for Reci- 
procity Information this 19th day of Novem- 
ber 1941. 

E. M. Whitcomb 
Acting Secretary 

Washington, D. C, 
November 19, 19^1. 



NOVEMBER 22, 1941 



415 



Trade of the United States With Iceland 
(Compiled in the Bureau of Foreign and Domestic Commerce, Department of Commerce) 

UNITED STATES MERCHANDISE TRADE WITH ICELAND, 19 29-4 
(Values in Thousands of Dollars) 



Year 



1929 
1930 
1931 
1932 
1933 
1934 
1935 



Exports to 
Iceland, 
including 
re-exports 



448 
361 
291 
67 
132 
238 
116 



General im- 
ports from 
Iceland 



544 
437 
442 
324 
490 
616 
1,024 



Year 


Exports to 
Iceland, 
including 
re-exports 


General im- 
ports from 
Iceland 


1936 -- 


104 
174 
131 
442 
2,254 


1 108 


1937 . 


1, 030 


1938 


1, 206 


1939 . - - 


1 375 


1940° 


2 673 







» Trade figures for 1940 are preliminary. 



UNITED STATES EXPORTS TO ICELAND Continued. 

(By Principal Commodities) 



Commodity 



Quantity 



1939 



1940 



Value ($1,000) 



1940 



Exports including re-exports, total 

Sole leather, bends, backs, & sides (1,000 lb.) 

Corn (1,000 bu.) 

Rice, milled, including brown rice and rice screenings (1,000 lb.). 

Rye (1,000 bu.) 

Wheat flour, wholly of U.S. wheat (Barrel) 

Other wheat flour (Barrel) 

Miscellaneous grains and preparations 

Coconut oil, edible (1,000 lb.) 

Soybean oil (1,000 lb.) 

Sugar, refined (1,000 lb.) 

Rubber boots (Pair) 

Cigarettes (Million) 

Cotton twine, rope & cordage (1 ,000 lb.) 

Cotton denims (1,000 sq. yd.) 

Bags of jute (1,000 lb.) 

Boards, planks, and scantlings: 

Southern pine, rough (M. bd. ft.) 

Oak (M. bd. ft.) 

Plywood, other than Douglas fir (1,000 sq. ft.) 

Newsprint paper (1,000 lb.) 

Book paper, not coated (1,000 lb.) 

Greaseproof and waterproof paper (1,000 lb.) 

See footnotes at end of table. 



3 
223 

4 

942 

7,487 



829 

112 

1,464 

5,261 

4 

1 

102 



41 
3 

'n.s.s. 
6 



1 



91 

11 

392 

10 

4,488 
19, 107 



1,773 

409 

9,700 

8,220 

3 

77 

61 

152 

589 
201 
312 
126 
213 
103 



442 

4 

2 

8 

4 

4 

22 

11 

59 

8 

55 

12 

10 

15 



(") 
n.s.s. 

(°) 



2,254 
34 
10 
12 
10 
16 
77 
28 
86 
27 
269 
18 

7 
23 

9 
20 

14 
23 
17 
5 
20 
17 



416 



DEPARTMENT OF STATE BULLETIN 
UNITED STATES EXPORTS TO ICELAND Continued. 



Commodity 



Wrapping paper, except Kraft (1,000 lb.) 

Kraft wrapping paper (1,000 lb.) 

Paper board, other than bristol and bristol board (1,000 lb.) 

Paper boxes and cartons, other than heavy fiber shipping containers (1 ,000 lb.). 

Bituminous coal (Ton) 

Lubricating oil, red and pale (Barrel) 

Lubricating oil, cylinder, bright stocks (Barrel) 

Iron bars (1,000 lb.) 

Concrete reinforcement bars (1 ,000 lb.) 

Steel bars, otlier than cold finished or concrete reinforcement, not contain- 
ing alloy (1,000 lb.). 
Iron and steel plates, other than boiler plate, not fabricated, not containing 
alloy (1,000 1b.). 

Steel sheets, black, ungalvanized, not containing alloy (1,000 lb.) 

Tin plate and taggers' tin (1,000 lb.) 

Iron and steel structural shapes, not fabricated (Ton) 

Welded black pipe, steel (1,000 lb.) 

Wire nails (1,000 lb.) 

Nickel-chrome electric resistance wire (1,000 lb.) 

Miscellaneous conveying equipment & parts 

Knee and column type milling machines, power driven (Number) 

Miscellaneous automobile parts for replacement 

Landplanes, powered (Number) 

Coal-tar colors, dyes, stains, and color lakes (1,000 lb.) 

Calcium carbide (1,000 lb.) 

Potassium compounds, not fertilizers (1,000 lb.) 

Exposed motion-picture films, positive, features (1,000 lin. ft.) 

All other exports, including re-exports 



Quantity 



1939 



(-) 



1,312 
508 



2 

1 

48 

288 
206 



51 



21 



1940 



318 
248 
190 
416 
5,803 
2,360 
594 
251 
965 
671 

767 

1,767 
755 
156 
328 
449 
97 



1 

12 
220 
110 
720 



Value ($1,000) 



1939 



" Less than 500. 

> n.s.s.=not shown separately. 



w 



16 
9 



C) 



11 
14 



13 



(•) 
2 
156 



1940 



26 
13 

9 
32 
28 
30 
11 

8 
23 
21 

22 

59 
47 
11 
12 
18 

109 
10 
18 
48 
9 
12 
8 
11 
10 

907 



UNITED STATES IMPORTS FROM ICELAND 
(By Principal Commodities) 



Commodity 



& cusk, dried & unsalted 



Imports for consumption, total 

Fish, other than cod, haddock, hake, pollock, 

(1,000 1b.). 
Miscellaneous fish, in oil or in oil and other substances, valued over 9 

cents per pound (1,000 lb.). 

Fish cakes, balls, & pudding (1,000 lb.) 

Sardines and other herring, not in oil; in airtight containers, weighing, with 

contents, not over 15 lbs. each (1,000 lb.). 



Quantity 



1939 



6 

4 

14 
18 



1940 



325 

36 

151 
96 



Value ($1,000) 



1,376 
C) 



1940 



2,633 
?9 



14 
10 



NOVEMBER 22, 1941 



417 



UNITED STATES IMPORTS FROM ICKLAND Continued. 



Commodity 



Quantity 



Value ($1,000) 



1940 



Herring, pickled or salted (except in oil) , in containers containing each more 
than 10 pounds of herring: 

If known commercially as full herring (1,000 lb.) 

Valued 6(: or more per lb. (1,000 lb.) 

Other herring, except beheaded, eviscerated, or split (1,000 lb.) 

Sheep and lamb skins, pickled, not split, no wool (1,000 lb.) 

Fox furs (other than silver and black), undressed (Number) 

Cod oil (1,000 gal.) 

Cod-liver oil (1,000 gal.) 

Donskoi, Smyrna, and similar wools, without merino or English blood: 

In the grease (1,000 lb., clean cont.) 

Washed (1,000 lb., clean cont.) 

Fish scrap and fish meal, not fertilizer (Ton) 

All other imports for consumption 



2,762 
84 

2,036 

21 

100 

17 

1,701 

12 

25 



5,568 
482 

2,649 
174 

1,203 
35 

1,395 

60 

84 
943 



108 
6 
88 
2 
3 
5 
,094 

4 

8 



53 



276 
40 
125 
32 
14 
26 
1,790 

22 
35 

50 
153 



• Less than SOD. 



COMMERCIAL COOPERATION BETWEEN THE AMERICAN REPUBLICS 
RADIO ADDRESS BY ASSISTANT SECRETARY AGHESON ' 



[Released to the press November 21] 

In this hemisphere today more than a quarter 
of a billion people are working to make from 
the vast resources of our American earth the 
things which shall win this war. The final shap- 
ing of the greater part of these products is done 
in the plants of this country. But behind the 
last stage lies a vast organized activity, involv- 
ing the cooperation and work of 21 nations and 
their peoples and industries from Canada to 
Cape Horn. It is an inspiring chapter in the 
history of free peoples maintaining their 
freedom. 

If we looked at this hemisphere from Mars 
with vision exceeding any telescope, we should 
see innumerable beehives of work in every coun- 
try. We should see, too, from every country a 
stream of products merging together to make 
great torrents moving between the continents 



' Delivered over the blue network of the National 
Broadcasting System November 21, 1941. 



and from each of them to the fighting fronts. 
Moving northward are basic materials for our 
factories — from Chile, copper and nitrates; 
from Bolivia, tin; from Brazil, iron and man- 
ganese ores; from Argentina, hides and wool; 
from Colombia, platinum; from Venezuela, 
petroleum; from Mexico, lead, zinc, copper, 
sisal, and mercury; while from Cuba and the 
other Caribbean republics come sugar and other 
products which are both essential foodstuffs and 
industrial raw materials. In the southward 
stream are the products of our mines and fac- 
tories — railroad equipment, mining and agri- 
cultural machinery, road-building equipment, 
vehicles, coal, finished petroleum products, and 
manufactured articles of all sorts. 

Then from the shores of both continents 
moves the stuff with which the war is fought — 
and will be won — from the southern continent 
food and raw materials, from the northern more 
food and weapons and the tools with which to 
make still more. 



418 

So it would look to the man on Mars, and so 
it is. But behind these streams of goods and the 
effort of millions of workers in the Americas is 
organization and cooperation between their 
governments. 

First of all, the governments of our neighbor 
countries, to mobilize their products and to 
keep them from hostile hands, have by law pro- 
vided systems of export control. These laws 
dam up undesirable outlets, but cannot them- 
selves move the goods. This we must do, and 
are doing, by providing through agencies of this 
Government markets at fair prices, through 
which the products of every country are drawn 
to our mills and factories. Arrangements have 
been entered into between this- Government and 
those of many of our neighbors not only to pur- 
chase their exportable products but to increase 
the production of materials essential to our 
plants. 

Today the exports of the other American 
nations to us are more than twice what they 
were before the war, and amount to a billion 
dollars a year. Where a few years ago there 
were surpluses piling up and unemployment 
threatened, we are now searching for new 
methods of expanding production. The British 
purchases of foodstuffs and our own require- 
ments have found markets for all but a few of 
the products which so short a time past pre- 
sented insuperable problems. And they have 
found markets where these products play a part 
of vital importance in supplying the vast needs 
of our war plants. Without them the program 
could not go forward on the scale which victory 
requires. 

For these goods we pay in money. But money 
is only a means by which the businessmen and 
the workers who produced the goods can buy the 
materials to keep their industries in operation 
and buy the things which they need to live. The 
other American nations are primarily producers 
of raw materials — minerals, oil, foodstuffs, and 
textile fibers. They are purchasers of manu- 
factured and partly manufactured goods. 
These purchases they made abroad. Before the 
war they made nearly two thirds of them out- 



DEPARTMENT OF STATE BULLETIN 

side this hemisphere where they sold their own 
products. Today they must look to us. 

They look to us at a time when the demands 
upon our power to produce far exceed the 
capacity of our plants or the supplies of ma- 
terials at our disposal. The needs of our own 
great military program, of the nations whose 
fight is our fight, of our own and other civilian 
populations who look to us, are staggering. 
But the obligation to share with our neighbor- 
ing countries, who are sharing their products 
with us, is plain. We accept it willingly and 
determinedly. 

Already our exports to Central and South 
American countries have increased 57 percent 
in the first nine months of this year over the 
same period of 1938. But it has become plain 
that only by active cooperation between the 
governments can the job be done. The very 
products which the other American countries 
need most are necessarily subject to the most 
strict control through priority and allocation 
orders in this country. The needs of our 
neighbors can be met only by allocating to them 
a fair portion of our production. To do this 
requires full knowledge of their needs, a 
thorough study of materials which may be sub- 
stituted for those no longer available for com- 
mercial use, and some determination of the 
order of importance of competing needs. 

All this has been going on for many months. 
The closest contact has existed between the 
other governments and our own. The fullest 
help has been given by each to the other. There 
has been a common determination to solve one 
of the .most complicated supply problems ever 
attempted. The authorities concerned are con- 
fident that the way has been found and that 
allocations can and will begin shortly, first with 
the most essential commodities and then with 
the rest. 

The will to act exists. The spade work is 
done. The flow of materials southward will 
be maintained and increased. 

But this Government would not be perform- 
ing its full duty to its own citizens and to its 
neighbor coimtries if it acted only to insure the 
flow of funds and goods to these countries. It 



NOVEMBER 2 2, 1941 



419 



must insure also tliat the use of our resources 
of money and products does not fall into hostile 
hands in our own country or in theirs. This 
is an obligation not only imposed by common 
sense but accepted by agreement. 

At the Habana Conference of the American 
republics held in July 1940, it was agreed that 
each of the governments should adopt all nec- 
essary measures to prevent and suppress any 
activities directed or assisted by foreign gov- 
ernments or foreign nationals which might sub- 
vert the domestic institutions of any of the re- 
jmblics or foment disorder in their internal 
jjolitical life. 

A plain case in point was that some businesses 
in this country and the other republics were 
being carried on with American funds and 
goods so as either to benefit hostile nations 
directly or to finance intrigue and propaganda 
against us and our neighbors. Against this we 
have acted with vigor and determination. By 
the use of emergency fund freezing powers we 
are firmly controlling business and financial 
activities within this country carried on for 
the benefit or under the control of certain for- 
eign interests. In some cases transactions are 
forbidden altogether; in other cases, permitted 
only under the most careful licensing procedure 
and supervision. If any of our own citizens 
act on behalf of these foreign interests they 
subject themselves to the same measures of 
control. 

We have acted in the same way, no more and 
no less firmly, to jirevent United States busi- 
ness and money and goods from being used by 
the same foreign interests to work harm to us 
and to the other republics, through our foreign 
commerce. 

On July 17, 1941 the President authorized, 
imder acts of Congress, the establishment of a 
Proclaimed List of Certain Blocked Nationals. 
This action forbade, without a special license. 
United States firms from having dealings with 
the listed persons, including selling to or buy- 
ing from them or engaging in financial trans- 
actions with them. In other words, it pre- 
vented our resources and commercial facilities 
from being used on behalf of or to benefit for- 



eign interests alien to this hemisphere and hos- 
tile to it. These interests, of course, assei't 
vociferously, through their propaganda, that 
this action in refusing to nourish them with our 
o^^'n commercial resources is an interference 
with the affairs of our neighbors. In fact, it 
is a restraint imposed upon our own citizens 
in fulfillment both of our agreement at Habana 
and of our simple duty to ourselves and our 
friends. 

In its actual operation the list has justified 
its purpose of insuring that trade with us 
should be in all cases beneficial and not harm- 
ful to our neighbors. It has directed trade 
to persons loyal to the various governments. 
Wliere it would be harmful to the economy of 
a neighboring country to stop all business of 
a listed firm with the United States, coopera- 
tive arrangements have been worked out with 
the government concerned by which transac- 
tions are permitted so far as they are brought 
under its control and benefit only our mutual 
interests. 

We have exercised the utmost care to see to 
it that action in including names upon the list, 
as well as deleting names from it, is just and 
based ujdou facts. In the first instance the evi- 
dence is thoroughly tested and reviewed by 
representatives of six departments of this Gov- 
ernment. Full weight is given to the state- 
ments of persons concerned and the views of 
governments which may be interested. Wliere 
mistakes have been made — and no human sys- 
tem can be beyond error — they have been 
promptly corrected. This process will con- 
tinue. This Government is determined that 
the administration of the list shall be fair and 
objective. It is determined also that the pur- 
pose of the list shall not be circumvented by 
subterfuge, and that the resources of this coun- 
try shall not be used to subvert its own or its 
neighbors' institutions or to aid the avowed 
enemies of those institutions. 

To defeat those enemies is the task imme- 
diately before us — to that common task each 
of the nations of America has set its will, its 
resources, and its work. 



420 



DEPARTMENT OF STATE BtlXLETIN 



The Foreign Service 



PERSONNEL CHANGES 

[Released to the press November 22] 

Mr. Walter Thurston, of Phoenix, Ariz., at 
present Counselor of the American Embassy in 
Moscow, U.S.S.R., during the period of his 
incumbency in that office will have the honor- 
ary rank of Minister. 

Mr. Walter Thurston was born near Denver, 
Colo., on December 5, 1894. He was appointed 
clerk in the American Legation at Guatemala, 
Guatemala, on March 26, 1917, and designated 
special agent of the Department of State in 
Guatemala with the honorary rank of Charge 
d'Affaires on December 22, 1917. He was ap- 
pointed American Foreign Service officer on 
May 3, 1918 and served in London, Rio de 
Janeiro, Asuncion, and Madrid. He was des- 
ignated Counselor of the American Embassy 
at Moscow, U.S.S.R., on April 14, 1939. 

[Released to the press November 22] 

The following changes have occurred in the 
American Foreign Service since November 15, 
1941: 

Clarence C. Brooks, of West Hoboken, N. J., 
Second Secretary of Embassy at Santiago^ 
Chile, has been designated First Secretary of 
Embassy at Santiago, Chile. 

Thomas McEnelly, of New York, N. Y., for- 
merly Consul at Palermo. Italy, has been as- 
signed as Consul at Barcelona, Spain. 

Edmund B. Montgomery, of Quincy, 111., 
Consul at San Luis Potosi, Mexico, has been 
designated First Secretary of Legation and 
Consul at Asuncion, Paraguay, and will servo 
in dual capacity. 

James T. Scott, of Eatonton, Ga., Consul at 
Beirut, Lebanon, has been assigned as Consul at 
Bombay, India. 



Everett F. Drumright, of Drumright, Okla., 
Second Secretary of Embassy at Nanking, 
China, has been assigned as Consul at Shang- 
hai, Kiangsu. China. 

Albert W. Scott, of Kansas City, Mo., Consul 
at Jerusalem, Palestine, has been designated 
Second Secretary of Legation and Consul at 
Cairo, Egypt, and will serve in dual capacity. 

Willard Galbraith, of Los Angeles, Calif., 
Consul at Batavia, Java, Netherlands Indies, 
has been assigned as Consul at Barcelona, 
Spain. 

Paul S. Guinn, of Catawissa, Pa., Second 
Secretary of Embassy at Berlin, Germany, has 
been assigned as Consul at Batavia, Java, Neth- 
erlands Indies. 

Carlton Hurst, of Washington, D. C, Second 
Secretary of Embassy at Berlin, Germany, has 
been assigned as Consul at Georgetown, British 
Guiana. 

Easton T. Kelsey, of Ann Arbor, Mich., for- 
merly Vice Consul at Oslo, Norway, has been 
assigned as Vice Consul at Toronto, Ontario, 
Canada. 

The assignment of Overton G. Ellis, Jr., of 
Tacoma. Wash., as Third Secretary of Legation 
at Guatemala, Guatemala, has been canceled. 

Alvin T. Rowe, Jr., of Fredericksburg, Va., 
Vice Consul at Shanghai, Kiangsu, China, has 
been designated Third Secretary of Legation 
and Vice Consul at Managua, Nicaragua, and 
will serve in dual capacity. 

Theodore S. Orme, of Houston, Tex., has 
been appointed Vice Consul at Ciudad Trujillo, 
Dominican Republic. 

AVorthington E. Hagerman, of Carmel, Ind., 
formerly Vice Consul at Bordeaux, France, has 
been appointed Vice Consul at Lisbon, Portugal. 

Kenneth W. Vittetoe, of Sumner, Wash., has 
been appointed Vice Consul at La Ceiba, Hon- 
duras. 

Charles H. Stephan, of Staten Island, N. Y., 
Vice Consul at Kobe, Japan, has been appointed 
Vice Consul at St. John's, Newfoundland. 



Treaty Information 



Compiled in the Treaty Diuision 



MUTUAL ASSISTANCE 

EESOLtrnoN XV on Eeciprocal Assistance and 
Cooperation for the Defense of the Na- 
tions OF the Americas 
Venezuela 

By a letter dated November 7, 1941 the Direc- 
toi- General of the Pan American Union in- 
formed the Secretary of State that on October 
28, 1941 the Ambassador of Venezuehi in Wash- 
ington deposited with the Union the instrument 
of ratification by the Government of Venezuela 
of Resolution XV on Reciprocal Assistance and 
Cooperation for the Defense of the Nations of 
the Americas, approved by the Second Meeting 
of the Ministers of Foreign Affairs of the Amer- 
ican Republics, held at Habana, July 21-30, 
1940. 

The Resolution as contained in the Final Act 
of the Habana Meeting appeared in the Bulletin 
of August 24, 1940, page 136. 

CLAIMS AND FINANCE 

Agreements With Mexico 

A statement regarding the outlines of the sev- 
eral agreements covering claims and financial 
problems reached on November 19 between the 
Mexican Government and the United States, 
together with a statement by the Secretary of 
State and the text of the notes exchanged be- 
tween the Secretary of State and the Mexican 
Ambassador at Washington, appears in this 
Bulletin under the heading "American Repub- 
lics". 

COMMERCE 

Trade Agreement With Iceland 

An announcement regarding the intention to 
negotiate a trade agreement with the Govern- 
ment of Iceland and a list of products on which 
the United States will consider granting con- 



cessions to Iceland appear in this Bulletin un- 
der the heading "Commercial Policy". 

FLORA AND FAUNA 

Convention on Nature Protection and Wild- 
life Preser\'Ation in the Western 
Hemisphere 

Venezuela 

The Director General of the Pan American 
Union informed the Secretary of State by a 
letter dated November 17, 1941 that the instru- 
ment of ratification by Venezuela of the Con- 
vention on Nature Protection and Wildlife 
Preservation in the Western Hemisphere, which 
was opened for signature at the Pan American 
Union on October 12, 1940, was deposited with 
the Union on November 3, 1941. The instru- 
ment of ratification is dated October 9, 1941. 



The convention, which will enter into force 
three months after the deposit of not less than 
five ratifications, has been ratified by the United 
States of America, Guatemala, and Venezuela. 

LEGAL ASSISTANCE 

Protocol on Uniformity of Powers of Attor- 
ney Which Are To Be Utilized Abroad 

Venezuela 

By a letter dated November 17, 1941 the Di- 
rector General of the Pan American Union in- 
formed the Secretary of State that the instru- 
ment of ratification by Venezuela of the 
Protocol on Uniformity of Powers of Attorney 
Which Are To Be Utilized Abroad, which was 
opened for signature at the Pan American 
Union on February 17, 1940, was deposited 
with the Union on November 3. 1941. 

The instrument of ratification, which is 
dated October 9, 1941, contains the modifica- 

421 



422 



DEPARTMENT OF STATE BULLETIN 



tion of the first clause of article 1 made by the 
Plenipotentiary of Venezuela at the time of 
signature, which reads in translation as 
follows : 

"1. If the power of attorney is executed by 
or on behalf of a natural person, the attesting 
official (notary, registrar, clerk of court, judge 
or any other official upon whom the law of the 
resi^ective country confers such function) shall 
certify that he knows the person executing the 
instrument and that he has the legal capacity 
to execute it, according to the documents he has 
produced." 

TELECOMMUNICATIONS 

Intek-American Arrangement Concerning 
Kadiocommunications 

Dominican Republic 

The American Ambassador to Cuba reported 
by a despatch dated November 8, 1941 that the 
instrument of ratification by the Dominican 
Republic of the Inter-American Arrangement 
Concerning Radiocommunications, signed at 
Habana December 13, 1937, was deposited with 
the Cuban Government on November 5, 1941. 



The arrangement has been ratified by the 
United States of America, Brazil, Canada, 
Chile, Dominican Republic, Haiti, Mexico, 
Panama, and Peru. 



Legislation 



Joint Resolution To repeal sections 2, 3, and 6 of 
the Neutrality Act of 1939, and for other purposes. 
[H.J.Res. 237.] Approved, November 17, 1941. (Pub- 
lic Law 294, 77th Cong.) 1 p. 



Amending Paragraph 1798 of the Tariff Act of 1930, 
as Amended [by permitting free entry of articles im- 
ported by returning residents from certain countries 
on the basis of the frequency of use of the exemption 
rather than the length of visit abroad]. (H. Kept. 
1416, 77th Cong., 1st sess., on H.R. 1632.) 3 pp. 

Amending the Sugar Act of 1937, as Amended. 
(H. Rept. 1430, 77th Cong., 1st sess., on H.R. 5988.) 
8 pp. 

River and Harbor Bill [Section 2 authorizes the St. 
Lawrence seaway and power project, pursuant to the 
agreement with Canada March 19, 1941, pp. 105-111]. 
(H. Rept. 1431, 77th Cong., 1st sess., on H.R. 5993.) 
159 pp. 



Regulations 



Control of Persons Entering and Leaving the United 
States Pursuant to the Act of May 22, 1918, as 
Amended : 

Aliens Leaving. (Department of State and De- 
partment of Justice.) 6 Federal Register 5927 and 
5911. 

Aliens Entering. (Department of State and De- 
partment of Justice.) 6 Federal Register 5929 and 
5914. 



Publications 



. Department of State 

Detail of Military Officer To Serve as Director of 
the Military Academy of the National Guard of Nica- 
ragua : Agreement Between the United States of Amer- 
ica and Nicaragua— Signed May 22, 1941; effective May 
22, 1941. Executive Agreement Series 217. Publica- 
tion 1654. 10 pp. 5(S. 

Diplomatic List, November 1941. Publication 1659. 
li, 105 pp. Subscription, $1 a year ; single copy, 100. 

Foreign Service List, October 1, 1941. Publication 
1661. iv, 107 pp. Subscription, 50^ a year; single 
copy, 150. 



U. S. GOVERNMENT PRINTING OFFICE: 1941 



For sale by the Superintendent of Documents. Washington, D. C. — Price 10 cents Subscription price, $2.75 a year 

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THE DEPARTMENT OF STATE 



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H 



■^ nn 



J 



TIN 

NOVEMBER 29, 1941 
Vol. V, No. 127— Publication 1669 



C 



ontents 



National Defense Page 

Protection of bauxite mines in Surinam 425 

Ai-ming of American merchant vessels 425 

General 

Inter- American Jewish Conference: Address by the 

Under Secretary of State 426 

Departure from and entry into the United States of 

American citizens 431 

Contributions for relief m belHgerent countries .... 434 

Europe 

Finnish cooperation with the Hitler forces 434 

American Republics 

Unity of Free Nations in the Western Hemisphere: 

Address by Assistant Secretary Berle 435 

Death of the President of Chile: 

Statement by the President of the United States . . 438 

Statement by the Secretary of State 438 

Inter- American Development Commission: Panama- 
nian, Nicaragua!!, Guatemalan, Costa Rican, Hon- 
duran, and Salvadoran Coimcils 439 

The Near East 

Question of recognition of Syrian and Lllbanese inde- 
pendence 440 

The Far East 

American Consulate at Saigon, French Indochina, 

wrecked by bomb . .• 440 

[OVER] 








U. S. SUPERINTENDENT OF DOCUMENTS 

DEC 16 1941 

b^ientS-CONTINUED 



The Department Page 

Financial Division 441 

Foreign Funds Control Division 441 

Appointment of officers 442 

The Foreign Service 

Personnel changes 442 

Publications 

Foreign Relations of the United States, 1926 442 

Treaty Information 

Flora and fauna: Convention on Nature Protection and 

Wildlife Preservation in the Western Hemisphere . 444 

Sovereignty: Convention on the Provisional Adminis- 
tration of European Colonies and Possessions in 
the Americas 444 

Legislation 444 

Regulations 445 

Announcement: Anniversary of the Bill 

OF Rights 445 

Chart: Organization or the Department 446 



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National Defense 



PROTECTION OF BAUXITE MINES IN SURINAM 



IBeleased to the press by tbe White House November 24] 

The bauxite mines in Surinam furnish up- 
wards of 60 percent of the requirements of the 
United States aluminum industry, which is vital 
to the defense of the United States, the Western 
Hemisphere, and the nations actively resisting 
aggression. 

It is therefore necessary that the safety of 
these mines should be as completely assured as 
present conditions demand. 

In normal circumstances the Government of 
the Netherlands would, for the purpose of 
strengthening further the defenses of Surinam, 
draw on the armed forces of the Netherlands 
Indies. In view, however, of the present situa- 
tion in the southwestern Pacific, it is thought 
inadvisable to follow that course. 

For this reason the Governments of the Neth- 
erlands and of the United States of America 
have entered into consultation. As a result, the 
latter has agreed to send a contingent of the 
United States Army to Surinam to cooperate 
with the Netherlands forces in assuring the pro- 
tection of the bauxite mines in that territory. 



This contingent will, of course, be withdrawn 
as soon as the present danger to the mines is 
removed and at the latest at the conclusion of 
hostilities. 

Simultaneously the Government of the Neth- 
erlands has invited the Government of the 
United States of Brazil to participate in this 
defense measure. It is understood that Brazil 
will contribute to the common aim by exercising 
an especial measure of military vigilance in the 
frontier zone adjacent to Surinam and by send- 
ing a mission to Paramaribo to exchange infor- 
mation and concert all other steps on the basis 
indicated to assure maximum efficiency of the 
safety measures thus being jointly undertaken 
by the Brazilian, United States, and Netherlands 
forces. 

The Government of Brazil has indicated its 
whole-hearted approval of the emergency 
measures. 

At the same time, the Government of the 
United States has notified the Governments 
of the American republics of the foregoing 
arrangements, which have been reached in the 
interests of all. 



ARMING OF AMERICAN MERCHANT VESSELS 



[Released to tbe press by tbe White House November 28] 

American merchant vessels sailing on routes 
between United States ports and ports of Spain, 
Portugal, and their adjacent island possessions 
will not be armed. 

American merchant vessels sailing in the in- 
ter-American trade between ports of the United 

429173 — 41 1 



States and ports in Central and South America 
will not be armed. 

American merchant vessels sailing on routes 
in the Pacific Ocean will not be armed under 
existing circumstances. 

Public announcement will be made of any 
change of policy affecting any of these routes. 

425 



General 



INTER-AMERICAN JEWISH CONFERENCE 
ADDRESS BY THE UNDER SECRETARY OF STATE ' 



[Released to the press November 23) 

We are meeting here today under conditions 
of complete freedom. We are all of us citizens 
of nations which from the day of their birth 
have consecrated as their national ideal the plac- 
ing of human rights above all other rights. 
Those of you who are residents of other repub- 
lics of the Americas are residents of countries 
which, like the United States, have guaranteed 
to all those within their borders that supreme 
natural right of man, the right to worship God 
as his conscience may dictate. 

Here in this New World of ours, we not only 
cherish at their full value the liberties which we 
have inherited from our forefathers, but we are 
prepared, and willing, to make any sacrifice 
which may become necessary in these grave 
hours, to maintain them and to preserve them 
ever intact. 

But across the seas the shadows steadily 
lengthen over the Old World. One by one, the 
lights of human freedom, of human tolerance, of 
human kindness have been extinguished. Only 
in England do these lights burn with a brighter 
glow than perhaps ever before. 

All of us meeting liei'e in this great gathering 
are thinking about the fate and future of our 
fellow human beings beyond the Atlantic — men 
and women and children in dire peril and in 
deep distress. This congress has been sum- 
moned, in fact, in order to undertake a further 
constructive effort to solve one of the basic and 
one of the most harrowing problems of this 
tragic epoch — the prol:)lem of the refugee. 

It is a heart-rending task for some of us who 



' Delivered by Mr. Welles at the opening session of the 
Conference, Baltimore, Md., November 23, 15>41 and 
broadcast over the Columbia Broadcasting System. 

426 



hold responsible offices in our Government to 
read the reports we receive. They tell of re- 
newed persecutions, of thousands of frightened 
human beings, many of them old and sick, others 
mere children, pounding over the rails to "wait- 
ing camps" on the bleakest borders of Europe; 
of brutal attacks on believers in many faiths — 
Catholic, Protestant, and Jew; of torture and 
mutilation, starvation and death. Still other 
reports tell of the destruction of churches and 
synagogues; of camps and prisons where men, 
women, and children are caged like wild beasts 
with no proper feeding or medical care, and 
where the unmarked grave is the only release. 

And then there are the reports which speak of 
individuals and groups, old and young, wander- 
ing over the earth's surface seeking shelter in 
leaky ships at sea, looking for a hospitable port ; 
or cast off in surroundings where conditions 
make it impossible for them to undertake the 
construction of a new life. 

Those of us who have faith in democracy and 
confidence in the inherent humanity of our 
western civilization, cannot, and I am sure will 
not, rest until an equitable and a practicable 
solution of this problem, which challenges us so 
fundamentally, is found. 

The j)roblem is not new. It has been with us 
on an ever-increasing scale since that accursed 
thing termed Hitlerism came into being eight 
and a half years ago. It has been with us 
through the subsequent years, written in terms 
of open persecutions, of concentration camps 
and broken homes, of lines of pitiful people 
swelling into thousands, then tens of thousands, 
then hundreds of thousands, of whom a few 
have been enabled to flee abroad, wherever a 
hospitable door was open or just not closed. 

It has been with us in the torture chambers of 
the German Gestapo, in those many regions 



NOVEMBER 29, 1941" 



427 



where thousands of people have been torn from 
their lionies and have been herded in the dead of 
night at the bayonet's point to be transported 
like cattle to some unknown scene; in the de- 
portation trains of Hungary and Rumania; in 
the refugee camps of France ; and in the prisons 
of Spain. It spells a chapter of unmitigated 
horror which our children's children may not 
hope to forget. 

Obviously those governments, notably the 
American Governments, which stand in this 
sickened world for the rights and freedoms of 
mankind could not, Pilate-like, wash their 
hands and turn away. I am proud to say that 
the President of the United States, speaking in 
the name of the spirit of humanity of the Amer- 
ican people, was the first responsible statesman 
of the world to urge renewed and more effective 
international cooperation in the solution of this 
problem, and to offer the full participation of 
his Government in such effort. 

The Governments of the American republics 
at once responded. 

The consequent medium through which the 
Governments of the New World, the British 
and Dominion Governments, and several sym- 
pathetic governments of Europe worked, was 
the Intergovernmental Committee on Refugees 
called into being by President Roosevelt in the 
spring of 1938. 

Wlien Austria was overrun by the German 
hordes in the winter of that year, thousands of 
terror-stricken people battled to find refuge in 
countries adjoining Germany or across the seas. 
Behind them were hundreds of thousands who 
were preparing for flight. The facilities of the 
countries of temporary refuge and of the coun- 
tries of final settlement were taxed alike. Some- 
thing had to be done — and done at once. 

It was in this atmosphere that on March 23, 
1938 President Roosevelt inquired of the gov- 
ernments of refuge and settlement M-hetlier 
they would be willing to join with the Govern- 
ment of the United States in setting up an In- 
tergovernmental Committee which would seek 
to introduce order into the forced migi-ation of 
political and religious refugees from central 
Europe. 



On July 6 the representatives of 33 govern- 
ments met at Evian in that former France which 
was then still, in its glorious tradition, a 
standard-bearer of the rights of man. 

Mi-. Myron C. Taylor, who represented the 
President, sounded the keynote when he said 
to the delegates that while they were meeting 
"men and women ox every creed and economic 
condition, of every profession and of every 
trade, were being uprooted from their homes 
. . . and turned adrift without thought or care 
as to what will become of them or where they will 
go." In the name of his own Government, Mr. 
Taylor continued that the ijroblem was "no 
longer of purely private concern"; it was a 
problem "for governmental action". 

The representatives of the other governments 
responded generously, and the meeting at fivian 
set up the Intergovernmental Committee which 
was to have its headquarters in London, and a 
negotiating body, headed by a director to be 
named by the President of the United States, 
which would seek with the German Government 
to "improve the conditions of exodus and to re- 
place them by conditions of orderly emigra- 
tion"; and with the governments of refuge and 
settlement "opportunities for permanent settle- 
ment". Mr. George Rublee, who was named 
Director, took up his duties in London in Sep- 
tember and in a spirit of sincere devotioji and 
self-sacrifice set out on his twofold task. 

The effort to control mass migration at the 
source, by the introduction of methods of or- 
derly exodus, was making some progress when 
Eurojae was overtaken by the cataclysm of war. 

The second aspect of the problem, that is, the 
.settlement of as many as possible of the un- 
fortunate people who had been forced abroad, 
was actively explored under Mr. Rublee's di- 
rection and, after February 1939, down to the 
outbreak of war, under the direction of his 
successor. Sir Herbert Emerson. 

The situation of the countries of refuge had 
to be examined in the first place; and in the 
second, the situation of the countries of final 
settlement. As the autumn and then the winter 
months passed, the pressure on the countries of 
refuge became so great through the illegal cross- 



428 



DEPARTMENT OF STATE BULLETIN 



ing of frontiers by refugees — many times in 
groups of one thousand or more at the gun's 
point — that the local authorities began to de- 
spair, and conditions became unmanageable. 
Obviously the countries of refuge could no 
longer be counted upon for effective assistance 
in the solution of the refugee problem except as 
the most temporary of waiting stations. 

The brunt of the problem, then, had to be 
borne by the countries of settlement, and Mr. 
Rublee, and after him Sir Herbert Emerson, 
engaged in protracted and detailed conversations 
with the representatives of the principal settle- 
ment countries, including the American repub- 
lics and the French, the British, and Dutch 
Empires. 

The secretariat of the Committee in fact pro- 
ceeded in its discussions on the premise that 
infiltration into organized places throughout the 
world, including gi'eat receiving areas such as 
the United States and Palestine, rather than 
group settlement in completely undeveloped 
areas, was the more practical solution of the 
problem of settling large numbers of people. It 
was thoroughly understood, however, that no 
opportunity presented by any of the participat- 
ing governments for group settlement should be 
overlooked. 

Such opportunities were in fact presented by 
the Dominican Government, by the British Gov- 
ernment in Kenya, British Guiana, Nyasaland, 
Northern Rhodesia, and Tanganyika, and by 
the Government of the Commonwealth of the 
Philippines on the Island of Mindanao. Com- 
missioners of inquiry were then appointed, and, 
upon the invitation of the respective govern- 
ments, actually visited and reported on settle- 
ment opportunities in the Dominican Republic, 
British Guiana, Northern Rhodesia, and the 
Philippines. 

In this connection I should be remiss did I not 
mention the remarkable contribution of the 
President's Advisory Committee on Refugees 
which is headed by Mr. James G. McDonald, 
the former High Commissioner of the League of 
Nations for Refugees, and of which Rabbi Wise 
is a distinguished member. The Committee, 
which was set up by the President simultane- 



ously with the organization of the Intergovern- 
mental Committee specifically to advise him on 
all matters relating to the resettlement of refu- 
gees, not only has worked indefatigably since 
1938 in crystallizing refugee policy, but has 
organized the commissions of inquiry which 
have visited the various potential areas of settle- 
ment. Thanks to the surveys so made a very 
accurate appraisal is available when the moment 
arrives for the undertaking of such settlement 
projects. I am sure you will be in complete 
agreement with me when I express deep appre- 
ciation to Rabbi Wise, as a member of the Presi- 
dent's Committee, for its magnificent work. 

Wlien the war broke out the Intergovern- 
mental Committee had the following to its 
credit : Individual immigration had been stimu- 
lated in many parts of the world ; possibilities 
of group settlement had been explored in four 
areas; a mass of material relating to the refugee 
problem had been assembled and correlated and 
the results carefully blueprinted for the benefit 
of the participating governments. I might add 
that Mr. Myron Taylor, in conjunction with a 
group of generous-minded men in New York 
and London, had set up the Coordinating Foun- 
dation, and had enlisted, as Executive Director, 
the services of M. van Zeeland, former Prime 
Minister of Belgium, with the specific task of 
cooperating with the Intergovernmental Com- 
mittee and with private individuals and organi- 
zations in investigating and furthering the plans 
for migration. In short, notable progress had 
been made by the Committee during the first 
year of its existence, and in August 1939 an 
orderly solution of the refugee problem was in 
sight. 

A month later Hitler plunged Europe into 
war. 

However, before the outbreak of war Presi- 
dent Roosevelt had invited the steering council 
of the Intergovernmental Committee, that is the 
chairmen of the delegations of the United States 
of America, the Argentine Republic, Brazil, 
France, Great Britain, and the Netherlands, to- 
gether with the Director, to meet with him in 
Washington. On October 17 the President re- 
ceived the officers of the Committee at the White 



NOVEMBER 2 9, 1941 

House and laid down in a statement to them 
the views of the United States as to the bases 
of intergovernmental action in behalf of refu- 
gees during the period of the war. 
These views were as follows : 

With regard to the short-range problem: 
The current work should not be abandoned, it 
should be re-directed ; individuals and families 
in countries of refuge should be placed in per- 
manent domicils. 

With regard to the long-range program : 
When the war ends there may be not one million, 
but ten million or more, men, women, and chil- 
dren, belonging to many races and religions, 
living in many countries, and possibly on sev- 
eral continents, who will enter into the prob- 
lem of the human refugee. The governments 
on the Intergovernmental Committee should 
start a serious and expanding effort to sui-vey 
and study scientifically and in detailed fashion 
the geographic and economic problem of re- 
settling several million people in new areas of 
the earth's surface. 

The officers of the Intergovernmental Com- 
mittee concurred with the President's recom- 
mendations, and, in addition, gave their specific 
approval to the plan for a group settlement in 
the Dominican Republic. 

This plan went back to the origins of the In- 
tergovernmental Committee in 1938. When 
President Roosevelt invited 32 governments to 
join with the Government of the United States 
in a discussion of the refugee problem, the first 
government to accept was the Government of the 
Dominican Republic^ which was also the first to 
name a delegate. 

At the fivian Conference the Dominican Gov- 
ernment was the only government to make a 
specific proposal for the reception of refugees 
and to follow the proposal at the ensuing meet- 
ing of the Intergovernmental Committee in 
London with a detailed plan of settlement. It 
was, finally, the first government to enter into 
concrete discussions with the Committee in 
London and in Washington. 

There followed the report of the commission 
of inquiry, and shortly thereafter a group of 
public-spirited American citizens, headed by 



429 

Mr. James N. Rosenberg and Dr. Joseph A. 
Rosen, of New York, and later Mr. Leon Falk, 
of Pittsburgji, came forward, and with courage 
and foresight undertook the vast responsibility 
of organizing and financing a settlement at 
Sosua in the Dominican Republic. 

In January, Mr. Rosenberg, supported by rep- 
resentatives of the Intergovernmental Com- 
mittee, the President's Advisory Committee, and 
the Coordinating Foundation, visited the Do- 
minican Republic and received a tract of nearly 
27,000 acres where refugees might be settled on 
the basis of an agreement signed on January 30, 
1940 by representatives of the Dominican Gov- 
ernment and the Dominican Republic Settle- 
ment Association. 

This last January, one year later, on the invi- 
tation of the Dominican Government, the Inter- 
governmental Committee met once more, this 
time at the Capital of the Republic. The object 
of this meeting was to talk, not about what might 
or should be done, but about what had been done. 
The delegates of 15 countries were able to visit 
the colony at Sosua and see with their own eyes 
what can be accomplished in the way of group 
settlement when there are combined a friendly 
and foresighted government, scientific manage- 
ment, and rich human material. The delegates 
of the governments were able to record that in a 
year Mr. Rosenberg and his associates had con- 
clusively demonstrated that refugees from Eu- 
rope can be resettled in a sub-tropical climate 
and can prosper and thrive. 

In the year and one half of its active work the 
Dominican Republic Settlement Association has 
selected in Europe and established at Sosua — 
which, it must be clearly understood, is being 
operated as an experiment of vital importance 
in determining the practical possibility of re- 
settlement in the Western Hemisphere — approx- 
imately 1,000 settlers. It has built dormitories, 
kitchens, laundries, a school, an infirmary, a 
woodworking shop, a milking barn, and a cheese 
factory. It has nearly 1,000 head of livestock, 
well over a thousand acres under cultivation, a 
coconut tract for the production of copra, tracts 
of grasses for the production of essential oils, 
plantations of castor beans — in short, food crops 



430 



DEPARTMENT OF STATE BULLETIN 



for the settlers and crops for marketing as well. 
Most interesting of all, it is now building home- 
steads in large numbers where the settlers who 
liave completed their agricultural training can 
locate on their own lands. Families are moving 
in — and assurances have been received that an 
additional 50,000 acres are available for self-re- 
specting men and women who are proud and 
thankful to be on their feet once more — no longer 
refugees. 

The experiment made possible through the 
generosity of tlie Dominican Government has 
shown in short what joint government and pri- 
vate effort can achieve in carrying tlie helpless 
victims of the new barbarism through the transi- 
tion period in which they are bereft of the pro- 
tection of all government and of all law, to a 
condition once again of self-maintenance in an 
ordered society. 

The laboratory set up in the Dominican Re- 
public points the way for similar joint efforts 
in other areas, between other private organiza- 
tions and other governments. 

As the experts of the Intergovernmental Com- 
mittee stated in their report to the Chairman in 
1939: Group settlement rests on three pillars — 
(1) Governments which possess suitable terri- 
tory and have the generosity to open it to refu- 
gees; (2) available resources for the financing 
of a settlement — a very expensive undertaking; 
and (3) human material in the Old World which 
can be adjusted to settlement in the new. When 
these three conditions are fulfilled — and we can 
be truly grateful that they have been so happily 
fulfilled in the Dominican Republic — there can 
be, we know now, successful resettlement. And 
successful resettlement means for the receiving 
country, as the story of the United States has so 
clearly told, and the Dominican Republic has so 
clearly recognized, new talents, fresh v'lgor, and 
economic benefits. It is encouraging to be able 
to record that in this time of world anarchy, 
despite the difficulties of communication and the 
hardships of travel, Mr. Rosenberg and his asso- 
ciates have contributed so materially in fact and 
by example to the solution of the short-range 



problem mentioned by the President in his state- 
ment to the Intergovernmental Committee. 

The solution of the greater problem of mass 
resettlement cannot be undertaken, however, 
until the war is over and until the world has 
seen the final and utter defeat of those responsi- 
ble for this cruel tragedy which shames our 
modern world. 

But 3'ou and I know that even were that day 
to come tomorrow — and would to God that it 
might be so — ^the economic and social prostra- 
tion of Central Europe and of the occupied 
countries will be such that immediate measures 
must be taken by international concert to re- 
lieve distress on a scale never before conceived. 
Under these conditions, even when the victory 
has been won, hundreds of thousands of families 
will wish, or will be obliged, to seek new homes. 

That is why I so greatly welcome the efforts 
being made by this congress. The work you 
accomplish here in devising new plans, or in 
supplementing the plans of which I have 
spoken, will be invaluable. You represent those 
gi'oups most deeply concerned in every section 
of our New World. Some of you can speak with 
final authority concerning public opinion in the 
sister republics from which you come. 

And when those of you who come from our 
neighbor republics I'eturn to your homes I trust 
you will say that the Government of the United 
States — as the President has made it clear — will 
participate in every practicable manner in con- 
tributing, together with the other governments 
members of the Intergovernmental Committee, 
toward the successful realization of that great 
human enterprise of making it possible for the 
refugees to find a safe haven upon which your 
hearts are set. 

I believe that throughout the length and 
breadth of the Western Hemisphere men and 
women realize increasingly that by the assist- 
ance they give to its accomplishment they 
strengthen and fortify those great foundations 
of liberty, tolerance, and humanity upon which 
is constructed the civilization of our New 
World. 



NOVEMBER 2 9, 1941 

DEPARTURE FROM AND ENTRY INTO THE UNITED STATES OF 

AMERICAN CITIZENS 



431 



[Released to the press November 27] 

Oil November 25, 1941, the Secretary of State 
issued Departmental Order 1003, the text of 
which follows : 

"Rules and Regulations Relating to the 
supermsion and conteol over the depar- 
TURE OF Citizens of the United States, or 
Persons Who Owe Allegiance to the 
United States, From and Entry Into the 
United States or the Outlying Possessions 
Thereof, Issued in Pursuance of Section I 
OF THE Proclamation of the President of 
the United States Promulgated on Novem- 
ber 14, 1941, Under Authority of the Act 
OF Congress Approved May 22, 1918, as 
Amended by the Act of Congress Approved 
June 21, 1941 

"I, Cordell Hull, Secretary of State of the 
United States of America, by virtue of and 
pursuant to the authority vested in me by § 1 
of Proclamation 2523 of the President of the 
United States, issued on November 14, 1941 
(6 F.R. 5821), under authority of the act of 
Congress approved May 22, 1918 (40 Stat. 569), 
as amended by the act of Congress approved 
June 21, 1941 (Public Law 114, 77th Cong.), 
hereby prescribe the following rules and regu- 
lations, making exceptions and conditions to 
the requirement of the proclamation of the 
President that no citizen of the United States 
or person who owes allegiance to the United 
States shall depart from or enter, or attempt to 
depart fi'om or enter, the United States, includ- 
ing the Canal Zone, the Commonwealth of the 
Philippines, and all territories, continental or 
insular, subject to the jurisdiction of the United 
States, unless he bears a valid passport issued 
by the Secretary of State or under his author- 
ity by a diplomatic or consular officer of the 
United States, or by the United States High 
Commissioner to the Philippine Islands, or by 
the Chief Executive of Hawaii, Puerto Rico, 
the Virgin Islands, American Samoa, or Guam : 

429173 — 11 2 



"Title 22 — Foreign Relations 

"Chapter I — Department of State 

"Subchapter A — The Department 

"Part 58 — Control of Persons Entering and 
Leaving the United States Pursuant to 
the Act of May 22, 1918, as Amended 

^^American Citizens and Nationals 

"Sec. 

58.1 Limitations upon travel prior to January 

15, 1942. 

58.2 Limitations upon travel after January 15, 

1942. 

58.3 Exceptions to regulations in §§ 58.1-58.2. 

58.4 Seamen. 

58.5 Persons considered as bearing passports. 
f)8.6 Restrictions upon travel on vessels of bel- 
ligerent states. 

58.7 Prevention of departure or entry prejudi- 

cial to the interests of the United States. 

58.8 Attempt of a citizen or national to enter 

without a valid passport. 

58.9 Optional use of a valid passport. 

58.10 Discretional exercise of authority in pass- 

port matters. 

58.11 Definition of the term 'continental 

United States'. 

"§ 58.1 Limit atio'tis upon travel prior to Jan- 
uary 15, 1942. No citizen of the United States 
or person who owes allegiance to the United 
States shall, prior to 6 o'clock in the forenoon of 
January 15, 1942, be required to bear a valid 
passport in order to depart from or enter into 
the continental United States, the Canal Zone, 
the Commonwealth of the Philippines, and all 
territories, continental or insular, subject to the 
jurisdiction of the United States, except that, 
eifective immediately, no such person shall de- 
part from or attempt to depart from any such 
territory for any foreign country or territory 
in the Eastern Hemisphere, or any foreign coun- 
try or territory in the Western Hemisphere un- 



432 

der the jurisdiction of Great Britain in which 
the United States maintains defense bases or in 
which such bases are being constructed by or 
under contract with the Government of the 
United States, unless he bears a valid passpoi't 
for such travel issued by or under authority of 
the Secretary of State or is otherwise authorized 
by the Secretary of State to depart from any 
territory subject to the jurisdiction of the United 
States for any foreign territory mentioned in 
this section. 

"§ 58.2 Limitations upon travel after January 
15, 191,2. After 6 o'clock in the forenoon of 
January 15, 1942, no citizen of the United States 
or person M'ho owes allegiance to the United 
States shall depart from or enter into or attempt 
to depart from or enter into the continental 
United States, the Canal Zone, the Common- 
wealth of the Philippines, and all territories, 
continental or insular, subject to the jurisdiction 
of the United States, unless he bears a valid 
passport which has been issued by or under 
authority of the Secretary of State and which, 
in the case of a person entering or attempting 
to enter any such territory, has been verified 
by an American diplomatic or consular officer 
either in the foreign country from which he 
started his journey, or in the foreign country 
in which lie was last present if such country is 
not the one from which he started his journey, 
or unless he comes within one of the exceptions 
prescribed in §§ 58.3-58.4. No fee shall be 
collected by a diplomatic or consular officer of 
the United States for or in connection with such 
verification. 

"§ 58.3 Exceptions to regulations in §§ 58.1- 
58.2. No valid passport shall be required of a 
citizen of the United States or a person who 
owes allegiance to the United States : 

"(a) When travelling between the continen- 
tal United States and the Territory of Hawaii, 
Puerto Kico, and the Virgin Islands, or between 
any such places ; or 

"(b) When travelling between points in the 
continental United States and points in Canada : 
provided that this exception shall not be appli- 
cable to any such person when travelling to or 



DEPARTMENT OF STATE BULLETIN 

arriving from a place outside the continental 
United States via Canada for which a valid 
passport is required under these rules and regu- 
lations; or 

"(c) When travelling between points in the 
continental United States and points in Mexico : 
provided that this exception shall not be appli- 
cable to any such person when travelling to or 
arriving from a place outside the continental 
United States via Mexico for which a valid pass- 
port is required under these rules and regula- 
tions; or 

"(d) When travelling between the continental 
United States or Puerto Rico or the Virgin 
Islands and islands adjacent to Canada or the 
United States or the islands of the West Indies, 
including the Bahamas, except any such island 
as is subject to the jurisdiction of a non-Amer- 
ican country other than Great Britain and any 
such island subject to the jurisdiction of Great 
Britain in which the United States maintains a 
defense base or in which such a base is being 
constructed by or under contract with the Gov- 
ernment of the United States: provided that 
this exception shall not be applicable to any 
such person going from the continental United 
States or Puerto Rico or the Virgin Islands to 
any foreign territory other than Canada or 
Mexico via any of the islands mentioned in this 
section or returning to the United States or 
Puerto Rico or the Virgin Islands via any such 
islands from foreign territory other than Can- 
ada or Mexico ; or 

"(e) When departing from or entering into 
the United States as an officer or member of the 
enlisted personnel of the United States Army 
or the United States Navy on a vessel operated 
by the United States Army or the United States 
Navy ; or 

"(f) Wlien travelling as a member of the 
armed forces of the United States or a civil 
employee of the War or Navy Departments be- 
tween the continental United States, the Canal 
Zone, the Commonwealth of the Philippines, and 
all territories, continental or insular, subject to 
the jurisdiction of the United States, and any 
foreign country or territory for which a valid 



NOVEMBER 2 9, 1941 



433 



passport is required under these rules and reg- 
ulations: provided tluit he is in possession of 
a document of identification issued for such pur- 
poses by tlie War or Navy Departments. 

"(g) When specifically authorized by the Sec- 
retary of State, tlirough the appropriate official 
channels, to depart from or enter into the con- 
tinental United States, the Canal Zone, the Com- 
monwealth of the Philippines, and all terri- 
tories, continental or insular, subject to the juris- 
diction of the United States. 

"§ 58.4 Seamen, (a) Seamen who are citizens 
of the United States or who, although not citi- 
zens, are nationals owing allegiance to the 
United States are included within the provi- 
sions of these rules and regulations, except that 
a seaman when travelling as such is exempted 
from the necessity of complying with that por- 
tion of § 58.2 of these rules and regulations which 
relates to the verification of a passport by an 
American diplomatic or consular officer before 
entering or attempting to enter any territory of 
the United States mentioned in that section for 
which a valid passport is required. 

"(b) Prior to 6 o'clock in the forenoon of 
February 15, 1942, no seaman shall be required 
to bear a passport in order to enter any terri- 
tory of the United States mentioned in § 58.2 of 
these rules and regulations. 

"(c) The term 'seaman' shall, for the pui'pose 
of these rules and regulations, include, in addi- 
tion to the persons ordinarily described by that 
term, all owners, masters, officers, and members 
of crews and other persons employed or engaged 
on vessels in any capacity. 

'■§ 58.5 Persons considered as bearing pass- 
po/'fs. Every citizen of the United States, or 
person who owes allegiance to the United States, 
who is included in a valid passport issued by or 
under authority of the Secretary of State shall 
for the purpose of these rules and regulations 
be considered as bearing a separate valid pass- 
port if such passport is presented to the ap- 
propriate official at the time he departs from or 
enters into or attempts to depart from or enter 
into any territory of the United States men- 
tioned in § 58.2 of these rules and regulations. 



"§ 58.6 Restrictions upon travel on vessels of 
belligerent states. Nothing in these rules and 
regulations shall be construed to authorize the 
travel of a citizen of the United States, or a 
person who owes allegiance to the United States, 
on any vessel of any state named in any procla- 
mation issued by the President under authority 
of § 1 (a) of the joint resolution of Congress 
approved November 4, 1939, on or over the 
North Atlantic Ocean north of 35° north lati- 
tude and east of 66° west longitude, or on or 
over other waters adjacent to Europe, or over 
the continent of Europe or adjacent islands, 
unless, when required under the authority of 
such joint resolution, he first obtains the specific 
authorization for such travel from the Depart- 
ment of State or an American diplomatic or 
consular officer abroad. 

"§ 58.7 Prevention of departure or entry 
prejudicial to the interests of the United States. 
Nothing in these rules and regulations shall be 
construed as prohibiting the Secretary of State 
or his representative from preventing tempo- 
rarily the departure from or entry into the 
United States, including the Canal Zone, the 
Commonwealth of the Philippines, and all terri- 
tories, continental or insular, subject to the 
jurisdiction of the United States, of a citizen of 
the United States or a person who owes alle- 
giance to the United States if the Secretary of 
State or his representative considers such de- 
parture or entry prejudicial to the interests of 
the United States, notwithstanding the fact that 
such person may bear a valid j^assport or be 
destined for or arriving from a place outside 
any such territory of the United States for 
which a valid passport is not required under 
these rules and regulations. 

"§ 58.8 Attempt of a citizen or national to 
enter without a valid passport. If any person 
who alleges that he is a citizen of the United 
States or a person who owes allegiance to the 
United States attempts to enter any territory 
of the United States contary to the i^rovisions 
of these rules and regulations, the appropriate 
officer of the United States at the port at which 
the attempt is made to enter such terriorty, if 



434 



DEPARTMENT OF STATE BULLETIN 



satisfied that such person is a citizen of the 
United States or a person who owes allegiance 
to the United States, shall detain such person 
and immediately report the facts in the case to 
the Secretary of State and await his instruc- 
tions. 

"§ 58.9 Optional use of a valid passport. 
Nothing in these rules and regulations shall be 
construed to prevent the use of a valid passport 
by any citizen of the United States, or a person 
who owes allegiance to the United States, in a 
case in which a passport is not required by these 
rules and regulations. 

"§ 58.10 Discr&tional exercise of authority in 
passport matters. Nothing in these rules and 
regulations shall be construed to prevent the 
Secretary of State from exercising the discre- 
tion resting in him to refuse to issue a passport, 
to restrict its use to certain countries, to with- 
di'aw or cancel a passport already issued, or to 
withdraw a passport for the purpose of restrict- 
ing its validity or use in certain countries. 

"§ 58.11 Definition of the term ''continental 
United States''. The term 'continental United 
States', as used in these rules and regulations, 
includes the territory of the several states of the 
United States and Alaska." 



CONTRIBUTIONS FOR RELIEF IN 
BELLIGERENT COUNTRIES 

A tabulation of contributions collected and 
disbursed during the period September 6, 1939 
through October 1941, as shown in the reports 
submitted by persons and organizations regis- 
tered with the Secretary of State for the solici- 
tation and collection of contributions to be used 
for I'elief in belligerent countries, in conformity 
with the regulations issued pursuant to section 
3 (a) of the act of May 1, 1937 as made effective 
by the President's proclamations of September 
5, 8, and 10, 1939, and section 8 of the act of 
November 4, 1939 as made effective by the Presi- 
dent's proclamation of the same date, has been 
released by the Department of State in mimeo- 
graphed form and may be obtained from the 
Department upon request (press release of 
November 29, 1941, 55 pages). 

This tabulation has reference only to contri- 
butions solicited and collected for relief in bel- 
ligerent countries (France; Germany; Poland; 
the United Kingdom, India, Australia, Canada, 
New Zealand, and the Union of South Africa; 
Norway; Belgium; Luxembourg; the Nether- 
lands ; Italy ; Greece ; Yugoslavia ; Hungary ; 
and Bulgaria) or for the relief of refugees 
driven out of these countries by the present war. 



Europe 



FINNISH COOPERATION WITH THE HITLER FORCES 



[Released to the press November 28] 

In response to inquiries as to developments in 
the Finnish situation, the Secretary of State 
stated on November 28 that the P''innish note 
had been given careful consideration but that it 
had thrown no light upon the question upper- 
most in the mind of this Government, that is, 
how far and to what extent the Finnish military 
policy is one of combined operations of the Ger- 
mans and Finns vitally to injure Great Britain 
and her associates and to threaten the northern 



supply lines over which Russia is now receiving 
supplies and assistance from Great Britain and 
the United States to aid Russia in resisting the 
Hitler forces of invasion and conquest, and to 
what extent that Finnish policy is a menace to 
all America's aims for self-defense. The re- 
cent journey of the Finnish Foreign Minister 
to Berlin to join with Hitler's puppet govern- 
ments over Europe in signing the "Anti-Comin- 
tern Pact", used b}' Hitler solely as an instru- 
ment to wage a war of conquest and domination 



NOVEMBER 2 9, 1941 

against free peoples, is highly sigtiificant and 
cannot be camouflaged or explained away by 
l)ropaganda attacks on nations engaged in de- 
fending themselves. 

The Secretary went on to say that the Depart- 
ment was giving careful attention to all the 
reports and information which miglit furnish a 
definite answer to this question. The concern 
of this Government, which has been emphasized 
by the studies made by the War Department and 



435 

the statement of the Secretary of War on No- 
vember 25, as to Finnish policy in this regard, 
has been made abundantly clear to the Finnish 
Government, the Secretary said. 

The Secretary concluded by saying that every 
act of the Finnish Government since the de- 
livery of its note has confirmed our apprehen- 
sions that it is fully cooperating with the Hitler 
forces. 



American Republics 



UNITY OF FREE NATIONS IN THE WESTERN HEMISPHERE 
ADDRESS BY ASSISTANT SECRETARY BERLE' 



[Released to the press November 29] 

Some millions of Americans have been in the 
habit of following the news and the events in 
South America and Central America every week 
at this time. You have had the benefit of the 
excellent reporting of my good friend, Edward 
Tomlinson, who not only knows South America 
well but has attended many of the great Ameri- 
can conferences at which the history of this 
hemisphere has been made. 

In the Americas we are not given to huge 
boasts about creating a "new order" or making 
showy demonstrations like those which the Nazis 
put on in Berlin. Instead, the American na- 
tions get the job done, quietly, in friendship and 
in understanding. 

I mention this because last Tuesday there was 
a meeting in Berlin which was supposed to 
demonstrate European unity. Unwilling prime 
ministers were brought there, some under com- 
pulsion. They were surrounded by secret detec- 
tives and by the Gestapo. They were forced to 
give lip service to a continental master though 
all the world knew that their peoples felt noth- 
ing but horror and grief at their degradation. 
Truly, between that order and the cooperative 



' Delivered over the blue network of the National 
Broadcasting Co., November 28, 1941. 



peace of the free Americas there is a tremendous 
contrast. 

The unity of the Western Hemisphere has 
been building for a long time. From the days 
when the other American nations one by one 
achieved their freedom from the Spanish Em- 
pire, unity has been the guiding thought in the 
minds of the greatest American statesmen. I 
do not go over the familiar history : you know 
it well. You remember the dream of Bolfvar 
and his hope that a congress of American na- 
tions might develop. You remember that Presi- 
dent John Quincy Adams supported that 
dream; that later Henry Clay lent the weight 
of his great name to the inter- American plan. 
Some of us have had to follow the many at- 
tempts to bring the dream to reality. You re- 
member that 51 years ago a modest organization 
known as the Pan American Union was estab- 
lished; and that the American nations agreed 
to work together, not to form an empire, but to 
do those things which had to be done if the 
American nations were to be healthy and pros- 
perous. 

Some of us remember the mistakes which the 
United States made in the early part of this cen- 
tury: its intervention in Haiti, in Nicaragua, 
and in the Dominican Kepublic. But even in 



436 



DEPARTMENT OF STATE BULLETIN 



those times the current of opinion in the United 
States disapproved of action by force, corrected 
the mistakes, and insisted on action through the 
slower but surer processes of reason and justice. 

'Wlien President Rooseveh proclaimed the 
good-neighbor policy on his inauguration in 
1933, another era began. The world was begin- 
ning to be disturbed ; Hitler had taken j^ower in 
Germany ; Japan had seized a portion of China ; 
an unhappy Old World was flirting once more 
with the idea of an imperialism intended to 
conquer the world. At that very time the 
American nations were resolved to strengthen 
a greater and more splendid principle, the prin- 
ciple of a cooperative system by which free 
nations, equal and independent, would 
strengthen their ties for common prosperity 
and for common defense. 

The real opposition to Hitler's much adver- 
tised "new order in Europe" was begun by 
Cordell Hull, of Tennessee, and he began it at 
Montevideo. In conjunction with his colleagues 
in the other American republics, he plainly out- 
lined a system of international organization. 
He proposed to abandon the use of force as 
between peace-loving nations. Instead, he pro- 
posed the acceptance of the rule of international 
law. Force was not to be used for the collec- 
tion of debts. The equality of the American 
nations, big and little, powerful or weak, was 
to be recognized. Disputes were to be settled 
under international law by processes of justice. 
Trade was to be encouraged between the Amer- 
ican nations, barriers to trade were to be reduced, 
and the American nations were asked to cooper- 
ate in increasing mutually beneficial conunerce. 

This represented acceptance by the United 
States of principles for which the other Ameri- 
can republics had long contended. On it the 
Western Hemisiahere promptly began to build 
a new structure of solidarity at the very time 
when Europe was beginning to wreck the very 
foundation of civilization. 

There followed in 1936 a great inter- American 
conference — that of Buenos Aires, jointly called 



by President Justo of Argentina and President 
Roosevelt. It was called for the maintenance 
of peace, and it was designed to set up a means 
of common action should the gathering storm 
clouds in Europe break in a tempest of war. At 
that conference, the American nations agreed 
that they would consult together in case of 
threatened war and that they would seek to find 
a common coui'se of action. 

Two years later, at Lima, the conference of 
inter-American nations adopted a common for- 
eign policy. It is set out in a document known 
as the Declaration of Lima — a declaration as 
important, perhaps, as the Monroe Doctrine it- 
self. The 21 American nations agreed that they 
would unite together to protect the hemisphere 
against any attack, direct or indirect, on the New 
World. It was time; for war had been barely 
averted by the Conference of Munich, and al- 
ready it was clear that the German legions would 
shortly be unleashed to spread devastation 
throughout the Old World. Already plots were 
being hatched in South America; propaganda, 
secret police, spies, and Nazi and Fascist organi- 
zations were being set up, not only in South 
America but on the streets of the cities of the 
United States. 

When in September 1939 the European war 
broke out, the American Hemisphere was pre- 
pared to take action. Promptly, a consultation 
was held at Panama; and at that time it was 
agreed that the American nations would sup- 
port each other, both in keeping war away from 
this hemisphere and also in economic measure, 
so that no country should suffer unduly. At 
once there began an experiment in international 
cooperation which, I think, is unmatched in 
history. 

The war made havoc of the usual processes of 
international finance. The United States 
stepped in and was j^repared to supply credits. 
Shipping was badly interrupted ; and shipping, 
which is necessary to all of us, is vital to a num- 
ber of the American republics. A committee on 
shippmg was set up and an endeavor was made 



NOVEMBER 29, 1941 

to see that needed transportation was kept run- 
ning. Markets for many countries were cut off 
by blockades; but, to replace these, the purchase 
of defense materials was so handled, that the 
American nations should not, so far as possible, 
suffer from lost markets. The problems were 
endless and very large; and many of them still 
remain. But, one by one, they are beginning to 
be brought under control. 

I am glad here to pay tribute to the contri- 
bution which the American nations have made 
toward the common defense and toward the 
common struggle against the Nazi plan of 
world-conquest. The contribution may well 
prove decisive. 

When it became necessary to control exports 
lest they be used by forces hostile to the New 
World, the American countries joined in estab- 
lishing such a control. As it became plain that 
the American coasts must be kept free from 
hostile bases, the American nations joined in so 
handling their affairs that foreign raiders, sub- 
marines, and aircraft could not draw supplies 
from the New World. This is why the Ameri- 
can Hemisphere is not cluttered with secret sub- 
marine bases, and why attempts to set up secret 
bases have been nipped in the bud. This is why 
su23plies of vital materials — materials you do not 
think of very often but which are essential for 
war work — have been steered into our common 
defense and have not been permitted to fall into 
hostile hands. I am thinking of such supplies 
as tungsten, wolframite, mercury, as well as the 
better-known metals like coiDper, zinc, manga- 
nese, and iron. 

This was done, not by compulsion, but by the 
free agreement of free peoples. When we estab- 
lished additional defense bases, as we did all the 
way from Greenland to Guiana, they were 
available on a cooperative basis to the American 
republics. 'Wliere the American republics took 
action, they made their measures available to us. 
While Hitler was establishing a rickety slave 
order on the continent of Europe, the American 



437 

nations were proving the solidity of a free 
order in the New World. Before we get 
through, I think it will be clear that free peoples 
everywhere owe a debt to the free nations of the 
New World. 

There has been much talk in the United States 
about "good-will" and "good-will missions". I 
am glad that there has been so much discussion 
of inter-American good-will. But the time has 
passed when we need to talk about it. We can 
take good-will for granted, for it is there. We 
no longer need good-will missions. 'Wliat we do 
need is the endless, quiet work of cooperation on 
common problems — work which sometimes gets 
into the newspapers and oftener not, which goes 
on day and night, and which, I am convinced, 
will make the American family of riations a 
constellation of stars even more brilliant than 
it is today. For the cooperative peace, the inter- 
American system has given more peace and 
more freedom to more people, over a larger area 
and for a longer period of time, than any sys- 
tem of peace in recorded history. 

This would be achievement enough, but it 
offers something still more. The American 
system is now preserving in the New World the 
values of civilization which much, of the Old 
World is destroying. It has shown the way to 
a unity between free nations. It has shown that 
without sacrifice of a jot of proud independence 
great nations can join in a common cause. They 
can do the work of internal improvement. 
They can carry on the peaceful fabric of com- 
merce. They can create the power which is 
needed to repel an enemy. If force is needed, 
they have and can use force. They are a stand- 
ing answer to the defeatists who say that unity 
can come only from conquest. 

On November 25 Berlin attempted to set up 
a fraudulent order based on terror. It went al- 
most unnoticed in the New World; for in tlie 
New World there is already a free order which 
has, in itself, strength of arms and strength of 
will, strength of justice and strength of eco- 
nomics. 



438 



DEPARTMENT OF STATE BULLETIN 

DEATH OF THE PRESIDENT OF CHILE 

STATEMENT BY THE PRESIDENT OF THE UNITED STATES 



[Released to the press by the White House November 25] 

The following statement was made by the 
President to the press conference on November 
25: 

"The first thing I am going to speak about is 
the one I feel most deeply about. 

"I am very sorry to get word from the State 
Department that the President of Chile has 
died. That brings up a disagreeable fact, that 
the Government of the United States has been 
forced to ajiologize to the Government of Chile 
for an article written in Time magazine — a 
disgusting lie which appeared in that magazine. 

"It was of course immediately cabled to Chile. 
It arrived at the time that the President had 
left ofRce in a very ill condition, and we are 
informed by our Ambassador that this article 
was a notable contribution to Nazi propaganda 
against the United States. 



"It is being widely used by the Nazi, Fascist, 
and Falangist press. The United States Am- 
bassador to Chile shares whole-heartedly in the 
general indignation and disgust. He reports 
to the Secretary of State that this is another il- 
lustration of how some American papers and 
writers by such methods are stocking the ar- 
senals of propaganda of the Nazis to be used 
against us. 

"The President of Chile is now dead. I am 
deeply sorry. 

"The episode of the article will not be easily 
forgotten in Chile. 

"I wish to take this opportunity, as Presi- 
dent of the United States, to express the deep 
regret of the administration and the American 
people to the people of Chile; especially to the 
family of the late President." 



STATEMENT BY THE SECRETARY OF STATE 



[Released to the press November 25] 

A statement of the Secretary of State with 
respect to the death of His Excellency Pedro 
Aguirre Cerda, President of the Kepublic of 
Chile: 

"I am deeply grieved to learn of the death of 
the President of Chile, His Excellency Dr. 
Pedro Aguirre Cerda, and I am sure that his 
many friends in the United States sincerely 
share my feeling. President Aguirre's aspira- 
tions to better the welfare of each individual 
of his nation and people, and the program of 
progressive legislation which he forwarded, 
have been greatly admired by the citizens not 
only of Chile but of the other American re- 
publics. I have watched with great interest 
the steady development of these efforts and their 
very tangible results. 

"Dr. Aguirre had a long career in the public 
life of his comitry, which he served unstintingly. 



Before his election as President, he had been 
Deputy in the Chilean Congress, Minister of 
Public Education and Justice, Minister of the 
Interior, and a Member of the Chilean Senate. 
He served as Chilean representative at various 
international conferences, and he left many 
friends in Washington after his services here 
as Financial Counselor of the Chilean Embassy 
from 1918 to 1920. 

"Shortly after the election of Dr. Aguirre as 
President of Chile in 1938, his country suffered 
terrible losses in life and property from earth- 
quake and destruction. The President, backed 
by the full loyalty of his compatriots, energeti- 
cally set about the work of restoration. The 
increasing burden of public life and the Presi- 
dent's own great activities in directing his Gov- 
ernment slowly sapped his energies. I was 
greatly concerned to learn a few weeks ago that 
he had found it necessary to retire from the 



NOVEMBER 29, 1941 



439 



presidency in order to conserve the physical 
strength needed in the endeavor to overcome 
the ilhiess which has now pioved fatal. I re- 
gard his loss as that of a personal friend, an 



upholder of those democratic ideals and the 
principles of right dealing between nations 
which are the fovuidation of the defense of each 
nation in this hemisphere." 



INTER-AMERICAN DEVELOPMENT COMMISSION: PANAMANIAN, NICARAGUAN, 
GUATEMALAN, COSTA RICAN, HONDURAN, AND SALVADORAN COUNCILS 



The organization of six additional National 
Councils of the 21 councils being established 
by the Inter-American Development Commis- 
sion in its program for the stimulation of trade 
among the American republics has been an- 
nounced in the last three months by Nelson A. 
Rockefeller, Coordinator of Inter- American Af- 
fairs and Chairman of the Development Com- 
mission. Similar councils have already been es- 
tablished, composed of outstanding business, 
professional, and technical men, in Brazil, Ar- 
gentina, Uruguay, Paraguay, Chile, Bolivia, 
Peru, Colombia, Ecuador, and Venezuela. 

The six countries which have recently formed 
councils are Panama, Nicaragua, Guatemala, 
Costa Rica, Honduras, and El Salvador, and the 
membership of the council in each case follows : 

Panama 

Don Guillermo A. de Roiix, Banker ; Manager of the 
Caja de Ahorros ; brother of the Foreign Minister ; 
Chairman of the Council 
Don Rodolfo Herbruger, Capitalist ; Head of the 

Cerveeeria Nacional ; director in many concerns 
Don Eduardo de Alba, Manager of the Banco Nacional 
Don Rodolfo F. Chiari, Industrialist ; controls largest 

sugar mill 
Don R. M. Heurtematte, Merchant ; Yale graduate 
Don Julio E. Heurtematte, Undersecretary of Com- 
merce ; Secretary of the Council 

Nicaragua 

Rafael A. Huezo, Manager of the National Bank ; 
Chairman of the Council 

Salvador Guerrero-Montalvan, former Minister of 
Finance ; Vice Chairman of the Council 

.Joaquin Gomez, former Minister of Finance 

Jos^ Benito Ramirez, former Minister of Finance 

Carlos Pasos, Industrialist 

Joaquin Sanchez, Secretary of the Board of Direc- 
tors of the National Bank ; Secretary of the 
Council 

429173 — 11 3 



Guatemala . . . . • , 

Jos6 Linares, Manager of the Central Bank of Guate- 
mala ; Representative In the Legislative Assembly ; 
Chairman of the Council 

Luis Pedro Aguirre, former Minister of Foreign Af- 
fairs ; former Mayor of Guatemala City ; former 
Representative in the Legislative Assembly ; Vice 
Chairman of the Council 

Rafael Tinoco, Representative in the Legislative As- 
sembly 

Gabriel Urruela, former Representative in the Leg- 
islative Assembly 

Luis Schlesinger Carrera, Director of the National 
Radio ; former Minister of Public Education ; Sec- 
retary of the Council 

Costa Rica' 
Manuel F. Jimtoez, former Minister of Finance; 

former Minister of Foreign Affairs; Chairman of 

the Council 
Julio Peiia, Manager of the National Bank of Costa 

Rica ; Vice Chairman of the Council 
Ratil Gurdian, former Minister of Finance; former 

Minister of Foreign Affairs 
J. M. Saenz Witting, President of the Chamber of 

Commerce 
Fernando Alvarado, Coffee-exporter 

Ilonduras 

Ignacio Agurcia, Businessman; Chairman of the 
Council 

Jos6 Augusto Padilla, Engineer; Vice Chairman of 
the Council 

Donate Diaz Medina, Manager of the Bank of Hon- 
duras 

Alfredo 2^peda, Engineer 

Arturo Lopez Rodezno, Engineer ; head of school 
system for industrial development 

Jorge Coello, Minister of Foreign Affairs ; Secretary 
of the Council 

El Salvador 

Luis Alfaro Duran, President of the Banco Central 

de Reserva ; Chairman of the Council 
Enrique Alvarez, Director of the Banco Hipotecario; 

President of the Asociacion de Productores de Caf6 ; 

Vice Chairman of the Council 



440 



DEPARTMENT OF STATE BULLETIN 



El Salvador — Continued. 

Carlos Alvarez, Coffee-grower 

Mario Sol, Agriculturist ; Economic Adviser to the 
President of El Salvador 

Ricardo Sagrera, Jr., former President of the Cham- 
ber of Commerce 

.Tos6 Manuel Mata, Minister of Finance ; Secretary of 
the Council 

The Inter-American Development Commis- 
sion, organized by the Inter- American Financial 
and Economic Advisory Committee, is seeking 
to stimulate the importation of non-competitive 
goods from the other American republics to the 
United States, increase trade among the other 
Americas, and encourage the development of 
industry in Central and South America and the 
Caribbean area, with particular regard to the 
production of consumer goods. 



The Near East 



QUESTION OF RECOGNITION OF SYR- 
IAN AND LEBANESE INDEPENDENCE 

[Released to the press November 291 

Inquiries have been received as to the attitude 
of this Government in view of the proclamation 
issued at Damascus on September 27, 1941 re- 
garding the independence of Syria, and the 
proclamation issued at Beirut on November 26, 
1941 regarding the independence of Lebanon. 

The American Government and people have 
always sympathized with the natural and legiti- 
mate aspirations of the peoples of Syria and 
Lebanon. This Government therefore wel- 
comes any steps toward the realization of these 
aspirations, chief among which is, of course, the 
full enjoyment of sovereign independence. 

The convention between the United States 
and France, signed at Paris on April 4, 1924, and 
the provisions of the mandate for Syria and 
Lebanon included therein, clearly embody the 
idea of Syrian and Lebanese independence. The 
American Government continues to support 
these provisions which it endorsed in 1924 and 
which are a cornerstone of the mandate principle. 



The 1924 convention, which also set forth the 
rights of the United States and its nationals in 
the areas concerned, was formally ratified by 
the American Government in accordance with 
the required constitutional procedure, and must 
be regarded as continuing in effect until new 
instruments of a mutually satisfactory nature 
can be similarly negotiated and ratified. This 
Government is hopeful that, as soon as interna- 
tional conditions permit, such negotiations may 
be undertaken, enabling this Government to ex- 
tend formal recognition to Syria and Lebanon. 



The Far East 



AMERICAN CONSULATE AT SAIGON, 
FRENCH INDOCHINA, WRECKED BY 
BOMB 

[Released to the press November 24] 

The Department has been informed that the 
American Consulate at Saigon, French Indo- 
china, was wrecked by a bomb the night of 
November 23. It was reported that no member 
of the staff of the Consulate was injured. The 
members of the staff of the Consulate are Sid- 
ney H. Browne, Consul ; Kingsley W. Hamilton, 
Vice Consul; and Miss Carolyn C. Jacobs, 
American clerk. 

The home address of Mr. Browne is Short 
Hills, N. J. ; the home address of Mr. Hamilton 
is 920 College Avenue, Wooster, Ohio ; and the 
home address of Miss Jacobs is Richmond, Mo. 

The consular quarters at Saigon were located 
on part of the second floor of the Sufi Building 
at the corner of Rue de Lagrandiere and Rue 
Catinat. 

[Released to the press November 24 J 

The American Consul at Saigon, French In 
dochina, has reported to the Department that a 
dayligh.t inspection of the Consulate shows 
great damage, with inner walls, doors, etc., 
blown down and much furniture damaged. 
The records and archives of the Consulate are 
apparently intact. 



NOVEMBER 2 9, 1941 



441 



The Consul reports that the police are now in 
charge and are investigating. He adds that a 
preliminary survey indicates that the explosion 
was caused by a high-explosive bomb placed on 
the floor just outside of the office entrance. So 
far there is no concrete evidence as to the 
perpetrators. 



The Consul concluded that he was planning 
to establish temporary quarters as soon as pos- 
sible pending repairs to the Consulate and re- 
iterated the fact that there was no member of 
the staff injured. 



The Department 



FINANCIAL DIVISION 



On November 24, 1941 the Secretary of State 
issued Departmental Order 1000, the text of 
which follows : 

"There is hereby created a Financial Division 
which shall serve as a component part of the 
Board of Economic Operations under the gen- 
eral supervision of Assistant Secretary of State 
Berle. 

"Mr. Frederick Livesey is designated Chief 
of the Financial Division. 

"This Division shall have responsibility in all 
matters of foreign policy in financial matters 



other than foreign funds control, as well as re- 
sponsibility for establishing and maintaining 
effective liaison with other interested depart- 
ments and agencies of the Government concerned 
with these matters. 

"The Chief of the Division shall be a mem- 
ber of the Board of Economic Operations. 

"The symbol of the Division shall be FD. 

"The provisions of this Order shall supersede 
the provisions of any existing Order in conflict 
therewith and become effective November 24, 
1941. 

"Departmental Order 980 is hereby revoked." 



FOREIGN FUNDS CONTROL DIVISION 



On November 24, 1941 the Secretary of State 
issued Departmental Order 1001, the text of 
which follows: 

"There is hereby created a Foreign Funds 
Control Division which shall serve as a com- 
ponent part of the Board of Economic Opera- 
tions under the general supervision of Assist- 
ant Secretary of State Acheson. 

"Mr. Donald Hiss is designated Chief of the 
Foreign Funds Control Division and Mr. 
Adrian S. Fisher is designated as Assistant 
Chief. 

"This Division shall have responsibility in all 
matters of foreign policy in foreign funds con- 
trol matters, including the application of the 



Proclamation of the President dated July 17, 
1941 to firms and individuals whose names are 
included in the Proclaimed List of Certain 
Blocked Nationals, as well as responsibility for 
establishing and maintaining effective liaison 
with other interested departments and agen- 
cies of the Government concerned with these 
matters. 

"When the problems of foreign funds control 
or other operational problems of this Division 
have a direct relation to general financial poli- 
cies, this Division shall work in coordination 
with the Financial Division. 

"The Chief of the Division shall be a member 
of the Board of Economic Operations. 



442 



DEPARTMENT OF STATE BTTLLETm 



"The symbol of the Division shall be FF. 

"The provisions of this Order shall super- 
sede the provisions of any existing Order in 
conflict therewith and become effective Novem- 
ber 24, 1941." 

APPOINTMENT OF OFFICERS 

Mr. John B. Ocheltree, a Foreign Service offi- 
cer of class VII, has been designated an Assist- 
ant Chief of the Caribbean Office, effective 
November 18, 1941 (Departmental Order 998). 

Mr. Robert C. Alexander has been designated 
an xissistant Chief of the Visa Division, effec- 
tive November 26, 1941 (Departmental Order 
1004). 



The Foreign Service 



PERSONNEL CHANGES 

[Released to the press November 29] 

The following changes have occurred in the 
American Foreign Service since November 22, 
1941: 

Hugh Millard, of Omaha, Nebr., First Secre- 
tary of Legation and Consul at Sofia, Bulgaria, 



has been designated First Secretary of Lega- 
tion at Copenhagen, Denmark. 

Maurice L. Stafford, of Coronado, Calif., Con- 
sul at Mexico, D.F., Mexico, has been desig- 
nated Second Secretary of Embassy and Consul 
at Mexico, D.F., Mexico, and will serve in dual 
capacity. 

Bertel E. Kuniholm, of Gardner, Mass., Con- 
sul at Reykjavik, Iceland, has been assigned as 
Consul at Tabriz, Iran, where an American Con- 
sulate is to be established. 

Leys A. France, of Shaker Heights, Ohio, 
Consul at Ottawa, Canada, has been assigned as 
Consul at Winnipeg, Canada. 

Robert J. Cavanaugh, of Rock Island, 111., 
Vice Consul at Mexico, D.F., Mexico, has been 
designated Third Secretary of Embassy and 
Vice Consul at Mexico, D.F., Mexico, and will 
serve in dual capacity. 

J. Kittredge Vinson, of Houston, Tex., for- 
merly Vice Consul at Berlin, Germany, has been 
assigned to the Department of State for duty in 
the Foreign Service Officers' Training School, 
effective November 3, 1941. 

Byron B. Snyder, of Los Angeles, Calif., for- 
merly Vice Consul at Genoa, Italy, has been 
assigned to the Department of State for duty 
in the Foreign Service Officers' Training School, 
effective November 3, 1941. 



Publications 



"FOREIGN RELATIONS OF THE UNITED STATES, 1926'^ 



[Released to the press November 24] 

The Department of State released on Novem- 
ber 24 two volumes of the series Foreign Rela- 
tions of the United States containing the offi- 
cial record of its diplomatic activities for the 
year 1926. The papers printed in these volumes, 
by far the larger part hitherto unpublished, 
include not only formal documents exchanged 
between governments but also telegrams, des- 
patches, instructions, and memoranda showing 
the processes by which the Department deter- 
mined and carried out its policies. 



Each volume has more than a thousand pages 
of documents and is complete in itself with a 
separate index and list of j^apers. Volume I 
includes a section designated ''General" dealing 
with subjects of a multilateral nature, followed 
by sections relating to Afghanistan, Argentina, 
Bolivia, Brazil, Canada, and China. Volume II 
comprises the sections on Colombia, Cuba, Do- 
minican Republic, Ecuador, Egypt, Estonia. 
France, Germany, Great Britain, Greece, Gua- 
temala, Haiti, Honduras, Italy, Japan, Latvia, 
Liberia, Mexico, Morocco, Netherlands, Nicara- 



NOVEMBER 29, 1941 



443 



gua, Norway, Panama, Paraguay, Persia, Por- 
tugal, Rumania, Russia, Salvador, Spain, Swit- 
zerland, and Turkey. 

Judging by the number of documents printed, 
the two situations in 1926 calling for most at- 
tention were the conflicting claims to Tacna- 
Arica and the civil war and related issues in 
China. The record of the Tacna-Arica arbitra- 
tion, termination of the plebiscite, and renewal 
of good offices by the United States is given in 
270 pages (I, 260-530). The China section fills 
512 pages (I, 591-1103) and records the civil 
war in the North and the sweep into the Yangtze 
Valley of the Southern forces under Chiang 
Kai-Shek who were ultimately to establish a 
National Government for China. Serious prob- 
lems were involved in the protection of Ameri- 
can life and property. Questions relating to the 
tariflF, taxes, and extraterritorial rights were 
under discussion but largely unsettled. 

Efforts of the American Government to co- 
operate with other powers in the promotion of 
peaceful settlement of international disputes 
and in the limitation of armaments, while care- 
fully refraining from any act which would 
legally associate it with the League of Nations, 
are set forth in documents dealing with a pro- 
posal that the United States adhere, with reser- 
vations, to the protocol of the Permanent Court 
of International Justice (I, 1-39) and partici- 
pation of the United States in the work of the 
Preparatory Commission for the Disarmament 
Conference (I, 40-120). 

Although eight years had passed since the 
World War the Department in 1926 was still 
giving considerable attention to the liquidation 
of problems growing out of that conflict. The 
volumes now released record the discontinuance 
of the office of American Unofficial Observer on 
the Reparation Commission (I, 120-125) ; the 
proposals for disposition of property held by 
the Alien Property Custodian (I, 125-145), in 
which connection the German Ambassador 
denied responsibility of his Government for 
sabotage in the United States during the period 
of American neutrality (I, 126) ; efforts to se- 
cure a debt settlement with France (II, 91-108) ; 
insistence of the United States on rights to 



priority payments for costs of the army of oc- 
cupation in Germany (II, 156-165) ; arbitration 
of the claim of the Standard Oil Company to 
tankers delivered by the German Government 
to the Reparation Commission (II, 166-201); 
claims of American citizens against Great Brit- 
ain arising out of the war (II, 214-308) ; claims 
arising from the destruction during the war of 
American petroleum property in Rumania 
(II, 308-335) ; inconclusive negotiations for the 
final allocation of the Yap-Menado cable (II, 
762-779) ; and efforts to secure ratification of 
the treat}' with Turkey signed at Lausanne Au- 
gust 6, 1923 (II, 974-991). 

Commercial relations held a prominent place 
in the interest of the Department in 1926, ex- 
tensive negotiations being carried on to secure 
unconditional most-favoi'ed-nation treatment 
for American trade. Although only with Sal- 
vador was a commercial treaty signed (II, 912- 
955), executive agreements for most-favored- 
nation treatment were entered into with Haiti 
(II, 401-406), Latvia (II, 488-502), Rumania 
(II, 89S-i;01), and Turkey (II, 992-1000), and 
treaties were proposed to Brazil (I, 569-573), 
Colombia (II, 1-4); Guatemala (II, 393-395), 
Paraguay (II, 871-874), and Switzerland (II, 
967-968). Cuba proposed the revision of its 
commercial convention with the United States 
(II, 10-18). 

Petroleum and rubber were two products en- 
gaging the Department's interest in the year 
under review. Representations were made to 
Bolivia to prevent discrimination against Amer- 
ican oil intei'ests (I, 564—568), negotiations con- 
tinued to secure recognition of the open-door 
l^olicy with respect to oil in Iraq (II, 362-370), 
and the pol'cies of the Mexican Government re- 
garding the exploitation of oil resources gave 
continued concern (11,605-687). The Depart- 
ment showed its consistency with respect to 
monopolies by disapproving a proposed grant of 
oil monopoly by the Canton Government to an 
American concern (1, 1092-1097). A reply was 
received from the Bi-itish Government to rej)- 
resentations of the previous year regarding re- 
strictions on the export of raw rubber (II, 358- 
361), and the Department interested itself in 



444 



DEPARTMENT OF STATE BULLETIN 



the efforts of American rubber manufacturers 
to secure the raw material from Brazil (I, 575- 
577) and Liberia (II, 503-597). 

Foreign Relations of the United States, 1926 
was compiled under the direction of Dr. E. 
Wilder Spaulding, Chief of the Division of Re- 
search and Publication, and Dr. Ernest R. 
Perkins, Chief of the Research Section of that 
Division. 

Copies of these volumes will be available 
shortly and may be obtained from the Superin- 
tendent of Documents, Government Printing 
Office, Washington, D. C. The price of each 
volume is $2. 



During the week of November 24-29, 1941, the 
Department also released: 

Post-War Commercial Policy: Address by Sumner 
Welles, Under Secretary of State, before the National 
Foreign Trade Convention, New York, New York, Oc- 
tober 7, 1941. Commercial Policy Series 71. Publica- 
tion 1660. 10 pp. 5^. 



Treaty Information 



Compiled in the Treaty Division 
FLORA AND FAUNA 

Convention on Nature Protection and Wild- 
life Preservation in the Western Hemi- 
sphere 

Brazil 

The Director General of the Pan American 
Union transmitted to the Secretary of State with 
a letter dated October 23, 1941 a certilied copy of 
the partial list of the species of Brazilian flora 
transmitted to the Union by the Government of 
Brazil for inclusion in the Annex to the Con- 
vention on Nature Protection and Wildlife 
Preservation in the Western Hemisphere, which 
was opened for signature by the governments of 



the American republics and deposited with the 
Pan American Union on October 12, 1940. 

SOVEREIGNTY 

Convention on the Provisional Administra- 
tion OF European Colonies and Possessions 
IN the Americas 

Colombia 

By a letter dated November 18, 1941 the Di- 
rector General of the Pan American Union in- 
formed the Secretary of State that the instru- 
ment of ratification by Colombia of the Con- 
vention on the Provisional Administration of 
European Colonies and Possessions in the Amer- 
icas, signed at Habana on July 30, 1940, was 
deposited with the Union on November 5, 1941. 
The instrument of ratification is dated Septem- 
ber 17, 1941. 



Legislation 



Meeting of Directors of Meteoi-ological Services 
of Western Hemisphere Countries : Hearings Before the 
Committee on Foreign Affairs, House of Representatives, 
77th Cong., 1st sess., on H.J.Res. 191, a Joint Resolution 
To Authorize the President of the United States To 
Invite the Governments of the Countries of the Western 
Hemisphere To Participate in a Meeting of the National 
Directors of the Meteorological Services of Those Coun- 
tries, To Be Held in the United States as Soon as Prac- 
ticable in 19-11 or 1942 ; To Invite Regional Commis- 
sions III and IV of the International Meteorological 
Organization To Meet Concurrently Therewith ; and To 
Authorize an Appropriation for the Expenses of Or- 
ganizing and Holding Such Meetings. June 3, 1941. 
11, 13 pp. 

Stoker John Bailey of H.M.S. "Orion" : Hearings Be- 
fore the Committee on Foreign Affairs, House of Repre- 
sentatives, 77th Cong., 1st sess., on H.R. 5257, a Bill To 
Authorize the Payment of an Indemnity to the British 
Government, For and on Behalf of John Bailey, Former 
Stoker of His Majesty's Ship "Orion", in Full and Final 
Settlement of a Claim Arising as a Consequence of In- 
juries Inflicted by John Ittner, United States Navy, at 
SeatUe, Wash., on July 16, 1939. July 29, 1941. 11, 10 pp. 



NOVEMBER 29, 1941 



445 



Regulations 



Control of Persons Entering and Leaving the United 
States Pursuant to the Act of May 22, 1918, as Amended : 
American Citizens and Nationals. (Department of 
State.) [Departmental Order No. 1003.] 6 Federal 
Register 6069. 



General Licenses Under Executive Order No. 8389, 
April 10, 1940, as Amended, and Regulations Issued 
Pursuant Thereto Relating to Transactions in Foreign 
Exchange, Etc. : Individuals Residing Only in United 
States Since July 17, 1940 ; Certain Partnerships, Asso- 
ciations, Etc. [grant of General License No. 42A]. No- 
vember 27, 1941. (Treasury Department.) 6 Federal 
Register 6104. 



One Hundred and Fiftieth Anniversary of the Bill of Rights 

December 15, 1941 

FREEDOM OF SPEECH 
FREEDOM OF PRESS 
FREEDOM OF RELIGION 
FREEDOM OF ASSEMBLY 
EQUAL JUSTICE TO ALL 

A Noble Heritage akd a Sacred Trust 

The American Bill of Eights was ratified on December 15, 1791. The sesquicentennial anni- 
versary is to ie observed throughout the Nation in accordance with a joint resolution of Congress 
and a proclamation of the President. 






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THE DEPARTMENT OF STATE 



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DECEMBER 6, 1941 
Vol. V, No. 128— Publication 1671 



C 



ontents 




National Defense Pags 
Export licensing and priorities control: Statement of 
the Under Secretary of State at Meeting of Inter- 
American Financial and Economic Advisory Com- 
mittee 449 

Amendment to alien exit regulations 451 

Proclaimed list of certain blocked nationals, sup- 
plement 4 452 

American Republics 

Soil Conservation Mission to Venezuela 452 

International Conferences, Commissions, Etc. 

International Sugar Council 453 

Cultural Relations 

Visitof American newspapermen to Chile 453 

Commercial Policy 

Inter-American Coffee Board 454 

The Department 

Duties assigned to the Special Assistant to the Secretary 

of State, Mr. Edminster 454 

Appointment of officers 455 

Death of passport agent at Chicago 455 

The Foreign Service 

Personnel changes 455 

Treaty Information 

Water power: Exchange of Notes With Canada Pro- 
viding for Additional Diversion for Power Pur- 
poses of the Waters of the Niagara River Above 

the Falls 456 

[over] 



^ontents-coNTiNVED 



Treaty iNroRMATiON-^Continued. Page 
Commerce: 

Inter-American Coffee Agreement 457 

International Sugar Agreement 457 

Legislation 457 

Regulations 457 



ti. S. SUPERINTENDENT u, u....,..,,. 
JAN 28 1942 



National Defense 



EXPORT LICENSING AND PRIORITIES CONTROL 

STATEMENT OF THE UNDER SECRETARY OF STATE AT MEETING OF INTER-AMERICAN 
FINANCIAL AND ECONOMIC ADVISORY COMMITTEE' 



On previous occasions I have discussed with 
you the policy and procedure of the Govern- 
ment of the United States with respect to export 
licensing and priorities controls imposed in the 
interests of the national and continental de- 
fense and in furtherance of the policy of my 
Government of material aid to those countries 
which are resisting the aggression of nations 
bent on world-dominance. The policy of the 
United States remains firm — to make every 
effort consistent with the defense program, to 
maintain a flow to the other American repub- 
lics of materials to satisfy the minimum essen- 
tial import requirements of your countries. 
This policy is being interpreted by all of the 
appropriate agencies of the United States as 
calling for recognition of and provision for the 
essential needs of the other American republics 
equal to the treatment accorded to LTnited States 
civilian needs. 

The Government of the United States is bend- 
ing every effort to fashion administrative mech- 
anism and procedure which will effectively 
translate into action this broad policy. Since I 
last discussed these matters with you, the Presi- 
dent has created the Supply Priorities and 
Allocations Board, whose function it is to allo- 
cate materials and the means of production to 
the several main categories of use. This in- 
cludes the provision of materials to meet the 



' December 5, 1941. Mr. Welles is delegate of the 
United States of America to tlie Inter-American Finan- 
cial and Economic Advisory Committee. 
430654 — 11 



essential needs of the other American nations. 
Moreover, the President has transferred the 
functions of export licensing and control to the 
Economic Defense Board, which is charged with 
the responsibility of presenting to the Supply 
Priorities and Allocations Board the require- 
ments of the other American republics and of 
maintaining a clearance system for priorities 
and allocations applications. In order to carry 
out its own role in these matters, the Department 
of State has recently reorganized its economic- 
defense work. I am therefore able to state con- 
fidently that the agencies of the Government of 
the United States directly concerned with the 
problem of meeting the essential import re- 
quirements of the other American republics are 
rapidly being geared for an efficient handling of 
the necessary details. 

I believe that in general discussion of the 
problem some confusion may have arisen from 
the terminology employed. The export license 
is, properly speaking, a permission to pass mer- 
chandise through the customshouse at the port 
of exit. Before merchandise may actually be 
exported from the United States it must be 
manufactured and purchased. With the rapid 
growth of the programs of national and conti- 
nental defense and aid to Britain and the other 
nations resisting aggression, the industrial or- 
ganization of the United States is becoming 
more and more subject to rigid priorities and 
allocations control. As j'ou are aware from the 
press, every day the Supply Priorities and Allo- 
cations Board and the Office of Production Man- 

449 



450 

agement are curtailing radically various sectors 
of civilian production and consumption within 
the United States. There is no doubt that as 
the defense effort continues such restrictions 
will increase in severity. 

As a result, the emphasis has already shifted 
from the simple export license to the prefer- 
ence rating or the general allocation as the im- 
portant procedural step required in the expor- 
tation of merchandise to the other American 
republics. And with the increasing severity of 
priority control it has become obvious that it is 
not desirable that export licenses be granted 
freely in cases where the priority restriction 
would prevent the actual pui'chase for export 
of the material involved. This has been the 
experience of the Government of the United 
States with many of the general export licenses 
which have been issued. Many of these are for 
iron and steel products and other articles now 
subject to the most rigid control by the Office 
of Production Management. Nevertheless, the 
existence of a general license has given rise to 
an impression that the countries to which such 
licenses have been extended are able to acquire 
the materials in question in unlimited amounts 
and with complete freedom from procedural 
forms and regulations. Wc all know that this 
is not the case. Nevertheless, it is easy to argue 
that some discrimination exists when certain 
countries are issued general licenses and others 
are not, even though it is now clear that the 
issuance of such general licenses to the remain- 
ing countries would not be a step towards facili- 
tating the basic trade wiiich is the real prob- 
lem. Consequently the Government of the 
United States proposes to rescind all such gen- 
eral licenses now outstanding and to issue gen- 
eral licenses to all of the American republics 
for a limited list of goods in which the exist- 
ence of such general licenses is of real value to 
the purchaser. Because of the broad extension 
of priorities control, the list is necessarily 
short. Studies continue of the possibility of 
adding certain additional items in the case of 
which general licenses would be of real im- 
portance. As conditions change in the future 



DEPARTMENT OF STATE BULLETIN 

it may be necessary to withdraw certain of 
these general licenses. In every case the cri- 
terion will be whether or not the general 
licenses are of real significance. 

Turning to the more fundamental problem, 
that of priorities control, the Government of 
the United States has during the last several 
months, through its own agencies and with the 
cooperation of this Committee and of the Gov- 
ernments of the other American republics, been 
carrying out a broad survey of the essential 
needs of the other American republics in order 
that these may be properly considered in rela- 
tion to the requirements of our own program 
and of other friendly nations. The results of 
tliose studies, although still in very preliminary 
form, are now sufficiently advanced so that my 
Government is enabled to work towards specific 
allocation of materials for export to the other 
American republics. 

The Supply Priorities and Allocations Board 
has already made an allocation for the j'ear be- 
ginning December 15, 1941 of 218,600 metric 
tons of tin plate to the 20 other American re- 
publics. The Office of Production Management 
and the Supply Priorities and Allocations 
Board are carefully considering a factual pres- 
entation relating to a number of other impor- 
tant conmiodities, and it is proposed to extend 
the procedure to as many other articles as is 
practicable. 

These allocations do not represent the final 
stage which we hope to attain in procedure but 
do provide a necessary basis for the more effi- 
cient handling of important commodity situa- 
tions. 

My Government sets great store on the devel- 
opment of this new allocations technique. It is 
not merely a passive permission to export; it 
constitutes positive action to insure, so far as is 
possible in the face of the tremendous demands 
of the national- and continental-defense pro- 
gram on the industrial production of the United 
States, the availability for export of those 
amounts of materials most essentially required 
for the maintenance of the economies of the 
other American republics. 



DECEMBER 6, 1941 



451 



AMENDMENT TO ALIEN EXIT REGULATIONS 



[Released to the press November 30] 

The Secretary of State, with the concurrence 
of the Attornej' General, promulgated on No- 
vember 30 an amendment of the regulations' 
for the administration of the provisions of the 
proclamation issued by the President on No- 
vember 14, 1941, under the act of May 22, 1918, 
as amended by the act of June 21, 1941, for the 
control of aliens leaving the United States. 

The amendment provides certain exemptions 
from the exit-visa and exit-permit requirements 
for citizens of the indeioendent countries of the 
Western Hemisphere and for British and 
Netherland subjects who are domiciled or sta- 
tioned in Western Hemisphere countries and 
are departing from American territory in the 
Western Hemisphere for a destination in the 
Western Hemisphere. The amendment has 
been made in accordance with the "good 
neighbor" policy and in the interest of Western 
Hemisphere solidarity, with a view to removing 
unnecessary restrictions upon the travel of per- 
sons engaged in legitimate pursuits of mutual 
interest to the United States and the other 
countries of the Western Hemisphere. 

The amendment also provides that aliens en 
route to the United States with proper docu- 
ments to apply for admission, who pass through 
the outlying territories and possessions of the 
United States before reaching their destina- 
tion, shall be exempt from the exit-permit re- 
quirements when departing from the territories 
and possessions mentioned. These include 
Puerto Eico, the Virgin Islands, the Philippine 
Islands, Hawaii, Guam, American Samoa. 
Wake Island, and Midway Island, but not the 
Panama Canal Zone. 

The amendment further provides that aliens 
employed on vessels engaged in the fishing in- 
dustry shall be exempt from the exit-permit re- 
quirements, provided they comply with the an- 
chorage regulations of the Secretary of the 



Treasury or the Secretary of the Navy. The 
anchorage regulations, which were recently 
amended, are administered by the Coast Guard, 
which has been taken over recently by the Navy 
Department.^ 

Aliens leaving the United States on or after 
December 1, 1941 will be required to have exit 
permits or exit visas, unless they fall within one 
of the classes which are exempt from the exit- 
permit and exit-visa requirements. Exit visas 
will be placed in the passports of aliens who 
have the status of recognized officers of foreign 
governments, the members of the families of 
such officers, and their attendants, servants, and 
employees. Exit visas will be issued by the 
Visa Division of the Department of State at 
Washington. 

Exit permits will be issued in the cases of 
aliens who do not have the status of foreign- 
government officials, members of the families of 
such officials, or attendants, servants, and em- 
ployees of such officials. Exit permits will not 
be delivered to aliens, but will be forwarded to 
the appropriate departure-control officers of the 
Immigration and Naturalization Service at the 
ports of intended departure specified in the 
applications. Applicants for exit permits will 
be notified when their applications have been 
approved. They will be required thereafter to 
appear before departure-control officers at the 
ports of departure, present the notification 
cards received from the Department of State, 
and identify themselves to the satisfaction of 
the departure-control officers, who may then 
permit them to depart under the conditions and 
subject to the limitations stipulated in the exit 
permits received by such officers from the De- 
partment of State. The departure of the aliens 
will be certified on the exit permits by the 
departure-control officers, who will then return 
the permits to the Secretary of State, Washing- 
ton, D.C. 



' 6 F.K. 5927. 
430654 — 41- 



' See 6 F.R. 5221 and 5699. 



452 



DEPARTMENT OF STATE BULLETIN 



No exit permit may be transferred from one 
port of departure to another. As aliens will 
not receive the permits issued in their cases 
such permits will not be transferable from one 
alien to another. Aliens should therefore be- 
ware of persons offering to sell or procure 
permits for use by them. As no fee has been 
prescribed for the issuance of an exit permit 
aliens should likewise beware of persons repre- 
senting that they must pay any sums of money 
for an exit peraiit. Blank applications for 
exit permits may be obtained from the Visa 
Division, Department of State, Washington, 
D.C., or from a number of field offices of 
the Immigration and Naturalization Service 
throughout the country within the next few 
days. 

Aliens passing in transit through the United 
States will be exempt from the exit-visa and 
exit-;iermit requirements, if they present valid 
transit certificates obtained from an American 
diplomatic or consular officer abroad, if they 
pass directly and continuously in transit, and 
if they do not deviate without authority from 
their declared itineraries, copies of which must 
be filed with the immigi'ation authorities at 
ports of entry. 

Exit visas and exit permits will not be issued 
in the cases of aliens whose departure would be 
prejudicial to the interests of the United States 
as provided in the regulations. The exit-visa 
requirements do not suspend or supersede the 
provisions of the internal-revenue laws requir- 
ing certificates of compliance as a condition 
precedent to departure from the United States. 
Exit permits will be issued subject to compli- 
ance of the aliens concerned with all other laws 
of the United States, particularly the laws re- 
lating to the public safety. 

Applications for exit permits should be filed 
at least 30 days before the date of intended de- 
parture, if possible, in order that the personnel 
available for the work involved in issuing exit 
permits may have a fair opportunity to act upon 
such applications before the date of intended 
departure. 



PROCLAIMED LIST OF CERTAIN 

BLOCKED NATIONALS, 

SUPPLEMENT 4 

[Released to the press December 4] 

The Secretary of State of the United States, 
acting in conjunction with the Secretary of the 
Treasury, the Attorney General, the Secretary 
of Commerce, the Executive Director of the Eco- 
nomic Defense Board, and the Cooixlinator of 
Inter- American Affairs, pursuant to the Pi'esi- 
dent's proclamation of July 17, 1941, on De- 
cember 3 issued Supplement 4 to the "Pro- 
claimed List of Certain Blocked Nationals". 

This supplement contains 189 additions to the 
List and 10 deletions, as well as a number of 
amendments. 



American Republics 



SOIL CONSERVATION MISSION TO 
VENEZUELA 

[Released to the press December 5) 

A mission composed of four soil-conservation 
experts, headed by Dr. Hugh H. Bennett, Chief 
of the Soil Conservation Service of the United 
States Department of Agriculture, sailed for 
Venezuela on December 5 to assist the Govern- 
ment of that country in connection with soil 
erosion and related land-use problems. The ex- 
perts are expected to remain in Venezuela for 
five or six months, following which they will 
prepare a comprehensive plan for the conserva- 
tion of the country's soil and water resources. 

The assignment of the mission was effected by 
the President at the request of the Venezuelan 
Government, imder the provisions of the act of 
Congress approved May 3, 1939 (Public No. 63, 
76th Cong.) which authorizes the Chief Execu- 
tive to detail employees of the Federal Govern- 
ment having special scientific or other technical 
or professional qualifications to the American 
republics in agreement with the governments 
concerned. 



DECEMBER 6, 1941 



453 



Di-. Bennett, recognized in the United States 
as the outstanding authority on soil erosion and 
methods for its control, is also an authority on 
the soils and soil problems of a number of other 
American countries. He has conducted exten- 
sive soil-conservation and other land-use studies 
in Mexico, Cuba, Haiti, Guatemala, Honduras, 
El Salvador, Costa Kica, Nicaragua, Panama, 
Colombia, and Ecuador, and is the author of 
two books on soils entitled The Soils of Cuba 
and Soil Conservation. 

Other members of the mission are Dr. Donald 
S. Hubbell, in charge of the Soil Conservation 
Service's research station at Mexican Springs, 
N. Mex. ; William X. Hull, former Assistant 
Chief of the Washington Engineering Division 
of the Soil Conservation Service ; and James E. 
Caudle, survey technician of the Pacific North- 
west Kegional Office at Spokane, Wash. 

Commenting on the mission, Secretai*y of 
Agriculture Claude K. Wickard emphasized 
that it is strictly a working gi-oup assigned to 
help solve problems common to both countries. 
"The detail of the Soil Conservation Mission to 
Venezuela", he said, "is another step forward in 
a broad program of cooperation between the 
United States and the other American repub- 
lics." 



International Conferences, 
Commissions, Etc. 



INTERNATIONAL SUGAR COUNCIL 

[Released to the press December 4] 

The International Sugar Council, which was 
established under the International Sugar 
Agreement signed at London on May 6, 1937, 
and ratified by the President of the United 
States on March 22, 1938, provides that each 
contracting government shall appoint a delega- 
tion to the Council consisting of not more than 
three members. 

The President has now approved the desig- 



nation of Mr. Alan N. Steyne, Second Secre- 
tary, American Embassy, London, as a dele- 
gate to the International Sugar Council in the 
place of Mr. Herschel V. Johnson, who was 
recently appointed American Minister to 
Sweden. The jjresent American delegation is 
constituted as follows : 

For the United Stales of America: 
Alan N. Steyne, Second Secretary, American Em- 
bassy, London 
Loyd V. Steere, Agru'ultnral Attacli^, American 
Embassy, London 
Representing the Commonwealth of the Philippines on 
the American delegation: 
Joaquin M. Elizalde 



Cultural Relations 



VISIT OF AMERICAN NEWSPAPERMEN 
TO CHILE 

[Released to the press December 4] 

The Secretary of State announced on Decem- 
ber 4 that the seven Chilean newspapers whose 
representatives were guests of certain United 
States newsjjapers earlier this year for a period 
of observation of and active participation in 
their work,^ had reciprocated the invitation 
and had asked the respective newspapers in tliis 
country to send representatives to Chile for a 
month as their guests. The newspapers which 
have been invited to send one representative 
each, and the host newspapers in Chile, are : 

Boston Glole, invited by La Union, Valparaiso 
Detroit News, invited by El Imparcial, Santiago 
Los Angeles Timrs, invited by La Nacion, Santiago 
New York Times, invited by El Mercurio, Santiago 
Philadelphia Evening Bulletin, invited by El Mercuric, 

Valparaiso 
Washington Post, invited by La Hora, Santiago 
Washinpfon Evening Star, Invited by El Diario Ilus- 

trado, Santiago 

The acceptance of these invitations has been 
made possible through the cooperation of the 



' See the Bulletin of February 1, 1941, p. 131 ; Febru- 
ary 15, 1941, p. ISO; and April 12, 1941, p. 458. 



454 



DEPARTMENT OF STATE BULLETIN 



Office of the Coordinator of Inter- American 
Affairs. 

The persons selected to represent their news- 
papers will leave for Chile on the S.S. Santa 
Lucia of the Grace Line on December 19, 1941, 
arriving in Valparaiso on January 6, 1942. The 
return trip will begin from Valparaiso on Feb- 
ruary 7, 1942, on the S.S. Santa Clara^ termi- 
nating in New York on February 23. 

It will be recalled that the idea of this inter- 
change of journalists was initiated by the Hon- 
orable Claude G. Bowers, American Ambassa- 
dor to Chile, in order to promote a greater 
knowledge and mutual understanding of each 
other's problems and methods on the part of the 
journalists of Chile and the United States. The 
Secretary of State hopes that this exchange is 
only the beginning of a permanent relationship 
among journalists of the Western Hemisphere. 



The Department 



Commercial Policy 



INTER-AMERICAN COFFEE BOARD 

[Released to the press December 1] 

The Inter-American Coffee Agreement, which 
was signed at Washington on November 28, 
1940, by the United States and 14 of the other 
American republics, is under the administration 
of an Inter- American Coffee Board, which has 
its seat in Washington and which is composed 
of a delegate from each of the contracting gov- 
ernments.' Mr. Paul C. Daniels, Assistant 
Chief of the Division of the American Kepub- 
lics, Department of State, is the delegate of the 
United States on the Board. 

The President has now approved the designa- 
tion of Mr. Robert M. Carr, Assistant Chief of 
the Division of Commercial Policy and Agree- 
ments, Department of State, as alternate dele- 
gate of the United States on the Board. 



' Bulletin of AprU 19, 1941, p. 486; and June 14, 1941, 
p. 720. 



DUTIES ASSIGNED TO THE SPECIAL 
ASSISTANT TO THE SECRETARY OF 
STATE, MR. EDMINSTER 

Departmental Order 1006 assigns to Mr. 
Lynn R. Edminster, Special Assistant to the 
Secretary of State, among other duties, that 
of handling those phases of the Department's 
activities arising out of the Lend-Lease Act 
which relate to the effects of the operation of 
that act upon the foreign commerce of the 
United States. The matters covered by the 
British White Paper of September 10, 1941, 
which sets forth certain principles which will 
l)e observed by the United Kingdom in connec- 
tion with its export policy as affected by the 
Lend-Lease Act, and also in relation to the 
internal distribution of lend-lease products, are 
an illustration of the type of thing to which 
the departmental order refers. The text of 
the order follows : 

"Depaktmental Order lOOd 

"The duties and responsibilities conferred by 
Departmental Order 976 upon the Division of 
Exports and Defense Aid in so far as they 
concern the administration of the Act of Con- 
gress of March 11, 1941 (the Lend-Lease Act) 
are hereby modified as hereinafter provided. 

"As Special Assistant to the Secretary, Mr. 
Lyim R. Edminster shall, in addition to his 
other duties, have responsibility for coordi- 
nating with the activities of the Department 
in the general field of commercial policy such 
matters arising in connection with the admin- 
istration of the Act of Congress of March 11, 
1941, as involve questions of commercial policy, 
such as matters relating to the distribution of 
articles within the country receiving them 
under the Act or the commercial reexport 
thereof and related matters affecting the for- 
eign commerce of the United States arising out 



DECEMBER 6, 1941 



455 



of the operation of th6 Act. He shall collabo- 
rate with the geographical and other divisions, 
particularly the Division of Commercial Policy 
and Agreements, the Division of Exports and 
Defense Aid, and the Adviser on International 
Economic Affairs, in the formulation and co- 
ordination of policy, and shall establish and 
niaintiiin effective liaison with other depart- 
ments and agencies of the Government con- 
cerning the above-mentioned aspect of the 
adiuinistration of the Lend-Lease Act. In the 
execution of the foregoing activities Mr. Ed- 
minster shall act as a component part of the 
Hoard of P]conomic Operations of the Depart- 
ment. 
"The provisions of this Order shall be effec- 



tive as of November 12, 1941. 



CoRDELL Hull" 



"Department of State, 
"■December 2, 194.1:' 



APPOINTMENT OF OFFICERS 

Mr. Granville O. Woodard has been desig- 
nated an Assistant Chief of the Division of Ex- 
ports and Defense Aid, effective December 3, 
1941 (Departmental Order 1007). 

Mr. Francis E. Flaherty has been designated 
an Assistant Chief of the Division of Foreign 
Service Administration, effective December 3, 
1941 (Departmental Order 1008). 

DEATH OF PASSPORT AGENT AT 
CHICAGO 

[Released to the press December 5] 

Mr. Robert Alexander Proctor, the Passport 
Agent of the Department of State at Chicago, 
died in Chicago at 3 o'clock the morning of De- 
cember 5 following a heart attack on December 
3. Mr. Proctor was employed in the Depart- 
ment of State from April 21, 1919 to February 
28, 1923, when he was appointed Passport Agent 
at Chicago. He was an expert on the citizen- 
ship laws of the United States and the laws 
relating to passport matters in the United States 



and in the principal countries of the world to 
which American citizens were wont to travel. 
He has distinguished himself as a Passport 
Agent of the Department of State. His loss 
will be felt not only by all of the employees 
of the Department of State with whom he has 
associated for so many years, but also by the 
traveling public in Chicago and vicinity whom 
he has served so well and efficiently for the 
past 18 years. Mr. Proctor had a number of 
relatives in Washington, one of whom — his 
brother — is the Honorable James M. Proctor, 
Associate Justice of the District Court of the 
United States for the District of Columbia. 

His biography follows: Robert Alexander 
Proctor was born at Washington, D. C, on May 
24, 1881. He attended Business High School 
and the Georgetown University School of Law, 
from which he graduated in 1915. He was a 
member of the bar of the District of Columbia, 
of the State of Illinois, and of the Supreme 
Court of the United States. He served in the 
first District of Columbia Volunteer Infantry 
in 1898; United States Volunteer Infantry from 
1899 to 1901, Philippine service; he was em- 
jiloyed in several Government departments and 
in the National Museum from 1904 to 1917. 
He engaged in the practice of law from 1917 
to 1919 when he entered the service of the 
Department of State, where he has since 
rendered distinguished and meritorious service. 

The Passport Agency of the Department of 
State in Chicago will be closed on Monday, the 
day of the funeral, out of respect to the mem- 
ory of Mr. Proctor. An officer of the Depart- 
ment of State has been designated to represent 
the Department at the funeral services. 



The Foreign Service 



PERSONNEL CHANGES 

On December 4, 1941 the Senate confirmed 
the nomination of George S. Messersmith, of 



456 



DEPARTMENT OF STATE BULLETIN 



Delaware, now Ambassador Extraordinary and 
Plenipotentiary of the United States of Amer- 
ica to Cuba, to be Ambassador to Mexico. 



Treaty Information 



[Released to the press December 6] 

The following changes have occurred in the 
American Foreign Service since November 29, 
1941: 

Edward M. Groth, of New Rochelle, N. Y., 
Consul at Calcutta, India, has been assigned for 
duty in the Department of State. 

Hugh H. Watson, of Montpelier, Vt., Consul 
General at Kingston, Jamaica, has been assigned 
as Consul General at Capetown, Union of South 
Africa. 

James Orr Denby, of Evansville, Ind., Con- 
sul at Capetown, Union of South Africa, has 
been designated First Secretary of Legation at 
Bucharest, Rumania. 

Franklin C. Gowen, of Philadelphia, Pa., 
Second Secretary of Embassy near the Gov- 
ernments of Poland and Belgium, and Second 
Secretary of Legation near the Governments of 
Norway, the Netherlands, Yugoslavia, and 
Czechoslovakia, now established in London, 
England, has been assigned for duty in the 
Department of State. 

John H. Lord, of Plymouth, Mass., formerly 
Consul at Amsterdam, Netherlands, has been as- 
signed as Consul at Kingston, Jamaica. 

Halleck L. Rose, of Omaha, Nebr., Third 
Secretary of Embassy at Berlin, Germany, has 
been designated Second Secretary of Legation 
and Vice Consul at Ciudad Trujillo, Dominican 
Republic, and will serve in dual capacity. 

Foy D. Kohler, of Toledo, Ohio, Third Sec- 
retary of Legation and Vice Consul at Cairo, 
Egypt, has been assigned for duty in the De- 
partment of State. 

Eugene A. Masuret, of Fort Hancock, N. J., 
formerly Vice Consul at Bordeaux, France, is 
retiring from the Foreign Service efPective at 
the close of business on March 31, 1942. 



Compiled in the Treaty Division 
WATER POWER 

Exchange of Notes With Canada PRO\aDiNG 
FOR Additional Diversion for Power Pur- 
poses OF THE Waters of the Niagara River 
Above the Falls 

On November 27, 1941 the Senate gave its ad- 
vice and consent to the ratification of an ar- 
rangement between the Governments of the 
United States of America and Canada to per- 
mit an additional temporary diversion, for 
power purposes, of waters on both sides of the 
Niagara River above the Falls for the duration 
of the emergency, and subject to reconsideration 
by both Governments on October 1, 1942, as set 
forth in notes exchanged at Washington on 
October 27, 1941, subject to the elimination of 
the paragraph reading: 

"The United States Government proposes fur- 
ther that, upon the entrj' into effect of the agree- 
ment for the utilization of the water in the 
Great Lakes - St. Lawrence Basin signed on 
March 19, 1941, the foregoing arrangements will 
be subject to the provisions of article IX of the 
agreement, and that it will be open to the Com- 
mission appointed under the provisions of the 
agreement and carrying out the duties imposed 
upon it to take such action as may be necessary 
and as may come within the scope of the agree- 
ment with regai'd to diversions at Niagara." 

This arrangement supplements the exchange 
of notes of May 20, 1941 (Executive Agreement 
Series 209), amending in its application article 
V of the treaty signed on January 11, 1909 be- 
tween the United States and Great Britain con- 
cerning boundary waters and questions arising 
along the boundary between the United States 
and Canada (Treaty Series 548). The Presi- 
dent approved the arrangement on November 
27, 1941. 



DECEMBER 6, 1941 

COMMERCE 
Intek-Amekican Coitee Agreement 

An announcement regarding the designation 
of an alternate delegate of the United States on 
the Inter-American Coffee Board, set up by the 
Inter-American Coffee Agreement signed at 
Washington on November 28, 1940, appears in 
this Bulletin under the heading "Commercial 
Policy". 

International Sugar Agreement 

An announcement regarding the designation 
of a delegate of the United States on the Inter- 
national Sugar Council, established under the 
International Sugar Agreement signed at Lon- 
don on May 6, 1937, appears in this Bulletin 
under the heading "International Conferences, 
Commissions, Etc." 



Legislation 



Authorizing Sale of Two Merchant Vessels to the Gov- 
ernment of Ireland. (H.Rept. 1454, 77th Cong., 1st 
sess., on H. J.Res. 246. ) 3 pp. 



457 

Further Amending the Naturalization Laws. (H.Rept. 

1459, 77th Cong., 1st sess., on H.R. 2304.) 3 pp. 
Suspending the Export Tax Prescribed by Section 6 of 
the Act of March 24, 1934 (48 Stat. 456), as Amended, 
For a Period of 1 Year Commencing July 1, 1941, and 
For Other Purposes. (H.Rept. 1460, 77th Cong., 1st 
sess., on S.1623. ) 5 pp. 
Clarification of the Dual Nationality of Certain Persons 
and the Taking of an Oath of Allegiance by All Per- 
sons in the Civil and Military Services of the United 
States. (H.Rept. 1469, 77th Cong., 1st sess., on 
H.R. 6109.) 3 pp. 
Third Supplemental National Defense Appropriation 
Bill for 1942 : 
Defense Aid (Lend-Lease) Appropriations In- 
cluded. (H.Rept. 1470, 77th Cong., 1st sess., on 
H.R. 6159.) 55 pp. 
Hearings Before the Subcommittee of the Commit- 
tee on Appropriations, House of Representatives, 
77th Cong., 1st sess. Part I : General Appropria- 
tions [State Department, pp. 259-261], ii, 636 
pp. Part II : Military and Naval Establishments 
and Lend-Lease, ii, 265 pp. 



Regulations 



Control of Persons Entering and Leaving the United 
States Pursuant to the Act of May 22, 1918, as 
Amended : Aliens Leaving. (Department of State 
and Department of Justice.) 6 Federal Register 
6127 and 6124. 



B. i. fiOVERNMENT PRINTING OFFICE: Ift4l 



For sale by the Superintendent o( Documents, Washington, D. C. — Price 10 cents Subscription price, $2.75 a year 

PDBLISHED WEEKLY WITH THE APPEOVAL OP THE DIEECTOU OF THE BUBEAC OF THE BDDGET 



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THE DEPARTMENT OF STATE 



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DECEMBER 13, 1941 
Vol. V, No. 129— Publication 1672 



C 



ontents 




The War Page 

The Japanese attack: 

Statement by the Secretary of State 461 

United States note to Japan November 26 461 

Japanese explanation of troop movements in French 

Indochina 464 

Message from the President to the Emperor of Japan 

December 6 464 

Japanese note to the United States December 7 . . . 466 

Address by Assistant Secretary Long 470 

Declarations of a state of war by the United States: 
Message of the President to the Congress Decem- 
ber 8 474 

Declaration of a state of war with Japan 475 

Message of the President to the Congress Decem- 
ber 11 475 

Declarations of a state of war with Germany and 

Italy 475 

Address by the President to the Nation 476 

Declarations of a state of war by the Axis coimtries: 

German declaration 480 

Italian declaration 482 

Hmigarian declaration 482 

Rumanian declaration 483 

Bulgarian declaration 483 

Solidarity of the American republics: 

Third Meeting of Ministers of Foreign Affairs of the 

American Republics at Rio de Janeiro 483 

Mexican reinforcements in Lower California .... 484 
Declarations of war and severance of relations by the 
American republics with the Axis powers and 
messages of solidarity with the United States . . 485 

[over] 



a 



OMie/liS-CONTINUED 



The War — Continued. Page 

Cooperation of other countries: 

Presentation of letters of credence by the Soviet 

Ambassador 504 

Statement by the Secretary of State on cooperation 

with the Soviet Union 506 

Chinese declarations of a state of war with Germany, 

Italy, and Japan 506 

Polish declaration of a state of war with Japan . . . 507 

Turkish declaration of neutrality 507 

Messages from the Netherlands, China, Greece, 

Great Britain, and the Lebanese Repubhc . . . 507 
Protest of Yugoslav Government against Bvdgarian 

aggressions 510 

Exchange of messages between the President of the 
United States and the President of the Philippine 

Commonwealth 511 

Protection of officials and nationals of countries at war: 
Japanese nationals and official establishments in the 

United States 512 

Press correspondents in the United States, Germany, 

and Italy 513 

Persoimel of American embassies, legations, and 

consular offices in the Far East 513 

Persormel of American embassies in Berlin and 

Rome 517 

Foreign vessels in American ports: 

Danish training ship Danmark 518 

French vessels 519 

Swedish motorship Kungsholm 519 

Policy regarding "free movements" in the United 

States 519 

Proclamations on policy toward alien enemies .... 520 
Continued full operation of the Lend-Lease program . . 520 
Proclaimed list of certain blocked nationals, supple- 
ment 5 520 

[OONTINDED ON PAGE 525] 



The War 






f^W\f ^^^^ 



THE JAPANESE ATTACK 

STATEMENT BY THE SECRETARY OF STATE 



(Released to the press December 7] 

Japan has made a treacherous and utterly un- 
provoked attack upon the United States. 

At the very moment when representatives of 
the Japanese Government were discussing with 
representatives of this Government, at the re- 
quest of the former, principles and courses of 
peace, the armed forces of Japan were prepar- 
ing and assembling at various strategic points 
to launch new attacks and new aggressions upon 
nations and peoples with which Japan was pro- 
fessedly at peace including the United States. 

I am now releasing for the information of 
the American people the statement of principles 
governing the policies of the Government of 
the United States and setting out suggestions 
for a comprehensive peaceful settlement cover- 
ing the entire Pacific area, which I handed to 



the Japanese Ambassador on November 26. 
1941. 

I am likewise releasing the text of a Japanese 
reply thereto which was handed to me by the 
Japanese Ambassador today. Before the Japa- 
nese Ambassador delivered this final statement 
from his Government the treacherous attack 
upon the United States had taken place. 

This Government has stood for all the prin- 
ciples that underlie fair-dealing, peace, law and 
order, and justice between nations and has 
steadfastly striven to promote and maintain 
that state of relations between itself and all 
other nations. 

It is now apparent to the whole world that 
Japan in its recent professions of a desire for 
peace has been infamously false and fraudulent. 



UNITED STATES NOTE TO JAPAN NOVEMBER 26 



[Released to the press December 7] 

The text of the document handed by the Secre- 
tary of State to the Japanese Ambassador on 
November 26, 1941, which consists of two parts, 
one an oral statement and one an outline of a 
proposed basis for agreement between the United 
States and Japan, reads as follows : 

"Oral 

^'■Strictly co-nfdentidl 

"NOA-EMBER 26, 1941. 
"The representatives of the Government of 
the United States and of the Government of 

431703—41 1 



Japan have been carrying on during the past 
several months informal and exploratory con- 
versations for the purpose of arriving at a set- 
tlement if possible of questions relating to the 
entire Pacific area based upon the principles of 
peace, law and order and fair dealing among 
nations. These principles include the principle 
of inviolability of territorial integrity and 
sovereignty of each and all nations; the princi- 
ple of non-interference in the internal aflFairs of 
other countries; the principle of equality, in- 
cluding equality of commercial opportunity and 
treatment; and the principle of reliance upon 
international cooperation and conciliation for 

461 



462 



DEPARTMENT OF STATE BULLETIN 



the prevention and pacific settlement of con- 
troversies and for improvement of international 
conditions by peaceful methods and processes. 

"It is believed that in our discussions some 
progress lias been made in reference to the gen- 
eral principles which constitute the basis of a 
peaceful settlement covering the entire Pacific 
area. Recently the Japanese Ambassador has 
stated that the Japanese Government is desirous 
of continuing the conversations directed toward 
a comprehensive and peaceful settlement in the 
Pacific area; that it would be helpful toward 
creating an atmosphere favorable to the success- 
ful outcome of the conversations if a temporary 
modus Vivendi could be agreed upon to be in 
eflFect while the conversations looking to a peace- 
ful settlement in the Pacific were continuing. 
On November 20 the Japanese Ambassador 
communicated to the Secretary of State pro- 
posals in regard to temporary measures to be 
taken respectively by the Government of Japan 
and by the Government of the United States, 
which measures are understood to have been 
designed to accomplish the purposes above 
indicated. 

"The Government of the United States most 
earnestly desires to contribute to the promotion 
and maintenance of peace and stability in the 
Pacific area, and to afford every opportunity for 
the continuance of discussions with the Japa- 
nese Government directed toward working out 
a broad-gauge program of peace throughout the 
Pacific area. The proposals which were pre- 
sented by the Japanese Ambassador on Novem- 
ber 20 contain some features which, in the opin- 
ion of this Government, conflict with the fiuida- 
mental principles which form a part of the gen- 
eral settlement under consideration and to which 
each Government has declared that it is com- 
mitted. The Government of tiie United States 
believes that the adoption of such proposals 
would not be likely to contribute to the ultimate 
objectives of ensuring peace under law, order 
and justice in the Pacific area, and it suggests 
that f urtb.er effort be made to resolve our diver- 
gences of views in regard to the practical appli- 
cation of the fundamental principles already 
mentioned. 



"With this object in view the Government of 
the United States offers for the consideration of 
the Japanese Government a plan of a broad but 
simple settlement covering the entire Pacific 
area as one practical exemplification of a pro- 
gram which this Govermnent envisages as some- 
thing to be worked out during our further 
conversations. 

"The plan therein suggested represents an ef- 
fort to bridge the gap between our draft of 
June 21, 1941 and the Japanese draft of Septem- 
ber 25 by making a new approach to the essen- 
tial problems underlying a comprehensive 
Pacific settlement. This plan contains provi- 
sions dealing with the practical application of 
the fundamental principles which we have 
agi'eed in our conversations constitute the only 
sound basis for worthwhile international rela- 
tions. We hope that in this way progress to- 
ward reaching a meeting of minds between our 
two Governments may be expedited." 

'■'■Strictly confidential, tentative 
and without commitment 

"November 26, 1941. 

"Outline of Proposed Basis tor Agreement 
Between the United States and Japan 

"Section I 

^'•Draft Mutual Declaration of Policy 

"The Government of the United States and 
the Government of Japan both being solicitous 
for the peace of the Pacific affirm that their 
national policies are directed toward lasting and 
extensive peace throughout the Pacific area, 
that they have no territorial designs in that 
area, that they have no intention of threaten- 
ing other countries or of using military force 
aggressively against any neighboring nation, 
and that, accordingly, in their national policies 
they will actively support and give practical 
application to the following fundamental prin- 
ciples upon which their relations with each 
other and with all other governments are based : 

"(1) The principle of inviolability of terri- 
torial integrity and sovereignty of each 
and all nations. 



DECEMBER 13, 1941 



463 



"(2) The principle of non-interference in 
the internal afiFairs of other countries. 

"(3) The principle of equality, including 
equality of commercial opportunity and 
treatment. 

"(4) The principle of reliance upon interna- 
tional cooperation and conciliation for 
the prevention and pacific settlement of 
controversies and for impi'ovement of 
international conditions by peaceful 
methods and processes. 

"The Government of Japan and the Govern- 
ment of the United States have agreed that 
toward eliminating chronic political instability, 
preventing recurrent economic collapse, and 
providing a basis for peace, they will actively 
support and practically apply the following 
principles in their economic relations with each 
other and with other nations and peoples : 

"(1) The principle of non-discrimination in 
international commercial relations. 

"(2) The principle of international economic 
cooperation and abolition of extreme na- 
tionalism as expressed in excessive trade 
restrictions. 

"(3) The principle of non-discriminatory ac- 
cess by all nations to raw material 
supplies. 

"(4) The principle of full protection of the 
interests of consuming countries and 
populations as regards the operation of 
international commodity agreements. 

"(5) The principle of establishment of such 
institutions and arrangements of inter- 
national finance as may lend aid to the 
essential enterprises and the continuous 
development of all countries and may 
permit payments tlirough processes of 
trade consonant with the welfare of all 
countries. 

"Section II 

"Steps To Be Taken hy the Government of the 
United States and by the Government of 
Japan 

"The Government of the United States and 



the Government of Japan propose to take steps 
as follows : 

"1. The Government of the United States and 
the Government of Japan will endeavor to con- 
clude ii multilateral non-aggression pact among 
the British Empire, China, Japan, the Nether- 
lands, the Soviet Union, Thailand and the 
United States. 

"2. Both Governments will endeavor to con- 
clude among the American, British, Chinese, 
Japanese, the Netherland and Thai Govern- 
ments an agreement whereunder each of the 
Governments would pledge itself to respect the 
territorial integrity of French Indochina and, 
in the event that there should develop a threat 
to the territorial integrity of Indochina, to enter 
into immediate consultation with a view to 
taking such measures as may be deemed neces- 
sary and advisable to meet the threat in ques- 
tion. Such agreement would provide also that 
each of the Governments party to the agree- 
ment would not seek or accept preferential 
treatment in its trade or economic relations with 
Indochina and would use its influence to obtain 
for each of the signatories equality of treat- 
ment in trade and commerce with French Indo- 
china. 

"3. The Government of Japan will withdraw 
all military, naval, air and police forces from 
China and from Indochina. 

"4. The Government of the United States and 
the Government of Japan will not support — 
militarily, politically, economically — any gov- 
ernment or regime in China other than the 
National Government of the Republic of China 
with capital temporarily at Chungking. 

"5. Both Governments will give up all extra- 
territorial rights in China, including rights and 
interests in and with regard to international 
settlements and concessions, and rights under 
the Boxer Protocol of 1901. 

"Both Governments will endeavor to obtain 
the agreement of the British and other gov- 
ernments to give up extraterritorial rights in 
China, including rights in international settle- 
ments and in concessions and under the Boxer 
Protocol of 1901. 



464 



DEPARTMENT OF STATE BULLETIN 



"6. The Government of the United States 
and the Government of Japan will enter into 
negotiations for the conclusion between the 
United States and Japan of a trade agreement, 
based upon reciprocal most-favored-nation 
treatment and reduction of trade barriers by 
both countries, including an undertaking by the 
United States to bind raw silk on the free list. 

"7. The Government of the United States 
and the Government of Japan will, respec- 
tively, remove the freezing restrictions on Jap- 
anese funds in the United States and on Ameri- 
can funds in Japan. 

"8. Both Governments will agree upon a plan 
for the stabilization of the dollar-yen rate, with 



the allocation of funds adequate for this pur- 
pose, half to be supplied by Japan and half 
by the United States. 

"9. Both Governments will agree that no 
agreement which either has concluded with any 
third power or powers shall be interpreted by 
it in such a way as to conflict with the funda- 
mental purpose of this agreement, the estab 
lishment and preservation of peace throughout 
the Pacific area. 

"10. Both Governments will use their influ- 
ence to cause other governments to adhere to 
and to give practical application to the basic 
political and economic principles set forth in 
this agreement." 



JAPANESE EXPLANATION OF TROOP MOVEMENTS IN FRENCH INDOCHINA 



[Released to the press by the White House December 5] 

The President has received the following 
statement from the Secretary of State to whom 
it was presented the forenoon of December 5 by 
the Japanese Ambassador : 

"Reference is made to your inquiry about the 
intention of the Japanese Government with re- 
gard to the reported movements of Japanese 
tioops in French Indo-China. Under instruc- 
tions from Tokyo, I wish to inform you as 
follows : 

"As Chinese troops have recently shown fre- 
quent signs of movements along the northern 



frontier of French Indo-China bordering on 
China, Japanese troops, with the object of 
mainly taking precautionary measures, have 
been reinforced to a certain extent in the 
northern part of French Indo-China. As a 
natural sequence of this step, certain movements 
have been made among the troops stationed 
in the southern part of the said territory. It 
seems that an exaggerated report has been made 
of these movements. It should be added that 
no measure has been taken on the part of the 
Japanese Government that may transgress the 
stipulations of the Protocol of Joint Defense 
between Japan and France." 



MESSAGE FROM THE PRESIDENT TO THE EMPEROR OF JAPAN DECEMRER 6 



[Released to the press by the White House December 7] 

The following message from the President to 
the Emperor of Japan was dispatched Satur- 
day afternoon, December 6, and public an- 
nouncement was made at that time that this 
message to the Emperor had been sent by the 
President : 

"Almost a century ago the President of the 
United States addressed to the Emperor of 



Japan a message extending an offer of friend- 
ship of the people of the United States to the 
people of Japan. That offer was accepted, and 
in the long period of unbroken peace and friend- 
ship which has followed, our respective nations, 
through the virtues of their peoples and the 
wisdom of their rulers have prospered and have 
substantially helped humanity. 

"Only in situations of extraordinary impor- 



DECEMBER 13, 1941 



465 



tance to our two countries need I address to 
Your Majesty messages on matters of state. I 
feel I should now so address you because of the 
deep and far-reaching emergency wliich appears 
to be in formation. 

"Developments are occurring in the Pacific 
area which threaten to deprive each of our 
nations and all humanity of the beneficial in- 
fluence of the long peace between our two 
countries. Those developments contain tragic 
possibilities. 

"The people of the United States, believing 
in peace and in the right of nations to live and 
let live, have eagerly watched the conversations 
between our two Governments during these past 
months. We have hoped for a termination of 
the present conflict between Japan and China. 
We have hoped that a peace of the Pacific could 
be consummated in such a way that nationalities 
of many diverse peoples could exist side by side 
without fear of invasion ; that unbearable bur- 
dens of armaments could be lifted for them all ; 
and that all peoples would resume commerce 
without discrimination against or in favor of 
any nation. 

"I am certain that it will be clear to Your 
Majesty, as it is to me, that in seeking these 
great objectives both Japan and the United 
States should agree to eliminate any form of 
military threat. This seemed essential to the 
attainment of the high objectives. 

"More than a year ago Your Majesty's Gov- 
ernment concluded an agreement with the Vichy 
Government by which five or six thousand Japa- 
nese troops were permitted to enter into North- 
ern French Indo-China for the protection of 
Japanese troops which were operating against 
China further north. And this Spring and 
Summer the Vichy Government permitted fur- 
ther Japanese military forces to enter into 
Southern French Indo-China for the common 
defense of French Indo-China. I think I am 
correct in saying that no attack has been made 
upon Indo-China, nor that any has been con- 
templated. 

"During the past few weeks it has become 
clear to the world that Japanese military, naval 



and air forces have been sent to Southern Indo- 
China in such large numbers as to create a 
reasonable doubt on the part of other nations 
that this continuing concentration in Indo- 
China is not defensive in its character. 

"Because these continuing concentrations in 
Indo-China have reached such large propor- 
tions and because they extend now to the south- 
east and the southwest corners of that Peninsula, 
it is only reasonable that the people of the 
Philippines, of the hundreds of Islands of the 
East Indies, of Malaya and of Thailand itself 
are asking themselves whether these forces of 
Japan are j^reparing or intending to make 
attack in one or more of these many directions. 

"I am sure that Your Majesty will understand 
that the fear of all these peoples is a legitimate 
fear inasmuch as it involves their peace and their 
national existence. I am sure that Your Maj- 
esty will understand why the people of the 
United States in such large numbers look 
askance at the establishment of military, naval 
and air bases manned and equipped so greatly 
as to constitute armed forces capable of meas- 
ures of offense. 

"It is clear that a continuance of such a situa- 
tion is unthinkable. 

"None of the peoples whom I have spoken of 
above can sit either indefinitely or permanently 
on a keg of dynamite. 

"There is absolutely no thought on the part 
of the United States of invading Indo-China if 
every Japanese soldier or sailor were to be with- 
drawn therefrom. 

"I think that we can obtain the same assur- 
ance from the Governments of the East Indies, 
the Governments of Malaya and the Govern- 
ment of Thailand. I would even undertake to 
ask for the same assurance on the part of the 
Government of China. Thus a withdrawal of 
the Japanese forces from Indo-China would 
result in the assurance of peace throughout the 
whole of the South Pacific area. 

"I address myself to Your Majesty at this mo- 
ment in the fervent hope that Your Majesty 
may, as I am doing, give thought in this definite 
emergency to ways of dispelling the dark 



466 



DEPARTMENT OF STATE BULLETIN 



clouds. I am confident that both of us, for the 
sake of the peoples not only of our own great 
countries but for the sake of humanity in neigh- 



boring territories, have a sacred duty to restore 
traditional amity and prevent further death and 
destruction in the world." 



JAPANESE NOTE TO THE UNITED STATES DECEMBER 7 



[Released to the press December 7] 

On November 26 the Secretary of State handed 
to the Japanese representatives a document 
which stated the principles governing the pol- 
icies of the Government of the United States 
toward the situation in the Far East and setting 
out suggestions for a comprehensive peaceful 
settlement covering the entire Pacific area. 

At 1 p. m. December 7 the Japanese Ambas- 
sador asked for an appointment for the Japa- 
nese representatives to see the Secretary of 
State. The appointment was made for 1 : 45 
p.m. The Japanese representatives arrived at 
the office of the Secretary of State at 2 : 05 p.m. 
They were received by the Secretary at 2 : 20 
p.m. The Japanese Ambassador handed to the 
Secretary of State what was understood to be a 
reply to the document handed to him by the 
Secretary of State on November 26. 

Secretary Hull carefully read the statement 
presented by the Japanese representatives and 
immediately turned to the Japanese Ambassador 
and with the greatest indignation said : 

"I must say that in all my conversations with 
you [the Japanese Ambassador] during the last 
nine months I have never uttered one word of 
untruth. This is borne out absolutely by the 
record. In all my 50 years of public service I 
have never seen a document that was more 
crowded with infamous falsehoods and distor- 
tions — infamous falsehoods and distortions on a 
scale so huge that I never imagined until today 
that any Government on this planet was capable 
of uttering them." 

[Released to the press December 7] 

The text of the document handed by the Jap- 
anese Ambassador to the Secretary of State at 
2 : 20 p. m., December 7, 1941, reads as follows : 



"Memorandum 

"/. The Government of Japan, prompted by 
a genuine desire to come to an amicable under- 
standing with the Government of the United 
States in order that the two countries by their 
joint efforts may secure the peace of the Pacific 
Area and thereby contribute toward the reali- 
zation of world peace, has continued negotia- 
tions with the utmost sincerity since April last 
with the Government of the United States re- 
garding the adjustment and advancement of 
Japanese-American relations and the stabiliza- 
tion of the Pacific Area. 

"The Japanese Government has the honor to 
state frankly its views concerning the claims the 
American Government has persistently main- 
tained as well as the measures the United States 
and Great Britain have taken toward Japan 
during these eight months. 

"2. It is the immutable policy of the Japa- 
nese Government to insure the stability of East 
Asia and to promote world peace and thereby to 
enable all nations to find each its proper place 
in the world. 

"Ever since China Affair broke out owing to 
the failure on the part of China to comprehend 
Japan's true intentions, the Japanese Govern- 
ment has striven for the restoration of peace 
and it has consistently exerted its best efforts 
to prevent the extention of war-like disturb- 
ances. It was also to that end that in Sep- 
tember last year Japan concluded the Tripartite 
Pact with Germany and Italy. 

"However, both the United States and Great 
Britain have resorted to every possible measure 
to assist the Chungking regime so as to obstruct 
the establishment of a general peace between 
Japan and China, interfering with Japan's con- 
structive endeavours toward the stabilization 



DECEMBER 13, 194 1 



467 



of East Asia. Exerting pressure on the Nether- 
lands East Indies, or menacing French Indo- 
China, they have attempted to frustrate Japan's 
aspiration to the ideal of common prosperity in 
cooperation with these regions. Furthermore, 
when Japan in accordance with its protocol witli 
France took measures of joint defence of 
French Indo-China, both American and Brit- 
ish Governments, wilfully misinterpreting it 
as a threat to their own possessions, and induc- 
ing the Netherlands Government to follow suit, 
they enforced the assets freezing order, thus 
severing economic relations with Japan. While 
manifesting thus an obviously hostile attitude, 
these countries have strengthened their military 
preparations perfecting an encirclement of 
Japan, and have brought about a situation 
which endangers the very existence of the 
Empire. 

"Nevertheless, to facilitate a speedy settle- 
ment, the Premier of Japan proposed, in Au- 
gust last, to meet the President of the United 
States for a discussion of important problems 
between the two countries covering the entire 
Pacific area. However, the American Govern- 
ment, while accepting in principle the Japanese 
proposal, insisted that the meeting should take 
place after an agreement of view had been 
reached on fundamental and essential questions. 

"<?. Subsequently, on September 25th the 
Japanese Government submitted a proposal 
based on the formula proposed by the American 
Government, taking fully into consideration 
past American claims and also incorporating 
Japanese views. Repeated discussions proved 
of no avail in producing readily an agreement 
of view. The present cabinet, therefore, sub- 
mitted a revised proposal, moderating still fur- 
ther the Japanese claims regarding the prin- 
cipal points of difficulty in the negotiation and 
endeavoured strenuously to reach a settlement. 
But the American Government, adhering stead- 
fastly to its original assertions, failed to dis- 
play in the slightest degree a spirit of concilia- 
tion. The negotiation made no progress. 

"Therefore, the Japanese Government, with 
a view to doing its utmost for averting a crisis 
in Japanese-American relations, submitted on 

431703 — 41 2 



November 20th still another proposal in order 
to arrive at an equitable solution of the more 
essential and urgent questions which, simplify- 
ing its previous proposal, stipulated the fol- 
lowing points: 

"(1) The Governments of Japan and the 
United States undertake not to dispatch 
armed forces into any of the regions, except- 
ing French Indo-China, in the Southeastern 
Asia and the Southern Pacific area. 

"(2) Both Governments shall cooperate with 
the view to securing the acquisition in the 
Netherlands East Indies of those goods and 
commodities of which the two countries are 
in need. 

"(3) Both Governments mutually undertake 
to restore commercial relations to those pre- 
vailing prior to the freezing of assets. 

"The Government of the United States shall sup- 
ply Japan the required quantity of oil. 

"(4) The Government of the United States 
undertakes not to resort to measures and ac- 
tions prejudicial to the endeavours for the 
restoration of general peace between Japan 
and China. 

"(5) The Japanese Government undertakes to 
withdraw troops now stationed in French 
Indo-China upon either the restoration of 
peace between Japan and China or the estab- 
lishment of an equitable peace in the Pacific 
Area ; and it is prepared to remove the Japa- 
nese troops in the southern part of French 
Indo-China to the northern part upon the 
conclusion of the present agreement. 

"As regards Cliina, the Japanese Govern- 
ment, while expressing its readiness to accept the 
offer of the President of the United States to 
act as 'introducer' of peace between Japan and 
China as was previously suggested, asked for 
an undertaking on the part of the United States 
to do nothing prejudicial to the restoration of 
Sino-Japanese peace when the two parties have 
commenced direct negotiations. 

"The American Government not only rejected 
the above-mentioned new proposal, but made 
known its intention to continue its aid to Chiang 
Kai-shek; and in spite of its suggestion men- 



468 



DEPARTMENT OF STATE BULLETIN 



tioned above, withdrew the offer of the Presi- 
dent to act as so-called 'introducer' of peace be- 
tween Japan and China, pleading that time was 
not yet ripe for it. Finally on November 26th, 
in an attitude to impose upon the Japanese Gov- 
ernment those principles it has persistently 
maintained, the American Government made a 
proposal totally ignoring Japanese claims, which 
is a source of profound regi'et to the Japanese 
Government. 

"4. From the beginning of the present nego- 
tiation the Japanese Government has always 
maintained an attitude of fairness and modera- 
tion, and did its best to reach a settlement, for 
which it made all possible concessions often in 
spite of great difficulties. As for the China 
question which constitutes an important subject 
of the negotiation, the Japanese Government 
showed a most conciliatory attitude. As for the 
principle of non-discrimination in international 
commerce, advocated by the American Govern- 
ment, the Japanese Government expressed its 
desire to see the said principle applied through- 
out the world, and declared that along with the 
actual practice of this principle in the world, the 
Japanese Government would endeavour to apply 
the same in the Pacific area including China, 
and made it clear that Japan had no intention 
of excluding from China economic activities of 
third powers pursued on an equitable basis. 
Furthermore, as regards the question of with- 
drawing troops from French Indo-China, the 
Japanese Government even volunteered, as men- 
tioned above, to carry out an immediate evacua- 
tion of troops from Southern French Indo- 
China as a measure of easing the situation. 

"It is presumed that the spirit of conciliation 
exhibited to the utmost degree by the Japanese 
Government in all these matters is fully appre- 
ciated by the American Government. 

"On the other hand, the American Govern- 
ment, always holding fast to theories in disre- 
gard of realities, and refusing to yield an inch 
on its impractical principles, caused undue delay 
in the negotiation. It is difficult to understand 
this attitude of the American Government and 
the Japanese Government desires to call the at- 



tention of the American Government especially 
to the following points : 

"1. The American Government advocates in 
the name of world peace those principles favor- 
able to it and urges upon the Japanese Govern- 
ment the acceptance thereof. The peace of the 
world may be brought about only by discovering 
a mutually acceptable formula through recog- 
nition of the reality of the situation and mutual 
appreciation of one another's position. An at^ 
titude such as ignores realities and imposes one's 
selfish views upon others will scarcely serve the 
purpose of facilitating the consummation of 
negotiations. 

"Of the various principles put forward by 
the American Government as a basis of the 
Japanese-American Agreement, there are some 
which the Japanese Government is ready to 
accept in principle, but in view of the world's 
actual condition it seems only a Utopian ideal 
on the part of the American Government to 
attempt to force their immediate adoption. 

"Again, the proposal to conclude a multi- 
lateral non-aggression pact between Japan, 
United States, Great Britain, China, the Soviet 
Union, the Netherlands and Thailand, which is 
patterned after the old concept of collective 
security, is far removed from the realities of 
East Asia. 

"2. The American proposal contained a stipu- 
lation which states — 'Both Governments will 
agree that no agreement, which either has con- 
cluded with any third power or powers, shall be 
interpreted by it in such a way as to conflict 
with the fundamental purpose of this agree- 
ment, the establishment and pi'eservation of 
peace throughout the Pacific area.' It is pre- 
sumed that the above provision has been pro- 
posed with a view to restrain Japan from ful- 
filling its obligations under the Tripartite Pact 
when the United States participates in the war 
in Europe, and, as such, it cannot be accepted 
by the Japanese Government. 

"The American Government, obsessed with its 
own views and opinions, may be said to be 
scheming for the extension of the war. While 
it seeks, on the one hand, to secure its rear by 



DECEMBER 13, 1941 



469 



stabilizing the Pacific Area, it is engaged, on 
the other hand, in aiding Great Britain and pre- 
paring to attack, in the name of self-defense, 
Germany and Italy, two Powers that are striv- 
ing to establish a new order in Europe. Such a 
policy is totally at variance with the many prin- 
ciples upon which the American Government 
proposes to found the stability of the Pacific 
Area through peaceful means. 

"3. Whereas the American Government, un- 
der the principles it rigidly upholds, objects to 
settle international issues through military 
pressure, it is exercising in conjunction with 
Great Britain and other nations pressure by 
economic power. Recourse to such pressure as a 
means of dealing with international relations 
should be condemned as it is at times more in- 
humane than military pressure. 

"4. It is impossible not to reach the conclu- 
sion that the American Government desires to 
maintain and strengthen, in coalition with Great 
Britain and other Powers, its dominant posi- 
tion it has hitherto occupied not only in China 
but in other areas of East Asia. It is a fact of 
history that the countries of East Asia for the 
past hundred years or more have been compelled 
to observe the status quo under the Anglo- 
American policy of imperialistic exploitation 
and to sacrifice themselves to the prosperity of 
the two nations. The Japanese Government 
cannot tolerate the perpetuation of such a situ- 
ation since it directly runs counter to Japan's 
fundamental policy to enable all nations to 
enjoy each its proper place in the world. 

"The stipulation proposed by the American 
Government relative to French Indo-China is a 
good exemplification of the above-mentioned 
American policy. Thus the six countries, — 
Japan, the United States, Great Britain, the 
Netherlands, China, and Thailand, — excepting 
France, should midertake among themselves to 
respect the territorial integrity and sovereignty 
of French Indo-China and equality of treatment 
in trade and commerce would be tantamount to 
placing that territory under the joint guarantee 
of the Governments of those six countries. 
Apart from the fact that such a proposal totally 



ignores the position of France, it is unaccept- 
able to the Japanese Government in that such 
an arrangement cannot but be considered as an 
extension to French Indo-China of a system 
similar to the Nine Power Treaty structure 
which is the chief factor responsible for the 
present predicament of East Asia. 

"5. All the items demanded of Japan by the 
American Government regarding China such as 
wholesale evacuation of troops or unconditional 
application of the principle of non-discrimina- 
tion in international commerce ignored the 
actual conditions of China, and are calculated 
to destroy Japan's position as the stabilizing 
factor of East Asia. The attitude of the Amer- 
ican Government in demanding Japan not to 
support militarily, politically or economically 
any regime other than the regime at Chung- 
king, disregarding thereby the existence of the 
Nanking Government, shatters the very basis of 
the present negotiation. This demand of the 
American Government falling, as it does, in line 
with its above-mentioned refusal to cease from 
aiding the Chungking regime, demonstrates 
clearly the intention of the American Govern- 
ment to obstruct the restoration of normal rela- 
tions between Japan and China and the return 
of peace to East Asia. 

"5. In brief, the American proposal contains 
certain acceptable items such as those concern- 
ing commerce, including the conclusion of a 
trade agreement, mutual removal of the freezing 
restrictions, and stabilization of yen and dollar 
exchange, or the abolition of extra-territorial 
rights in China. On the other hand, however, 
the proposal in question ignores Japan's sacri- 
fices in the four years of the China Affair, 
menaces the Empire's existence itself and dis- 
parages its honour and prestige. Therefore, 
viewed in its entirety, the Japanese Government 
regrets that it cannot accept the proposal as a 
basis of negotiation. 

"^. The Japanese Government, in its desire 
for an early conclusion of the negotiation, pro- 
posed simultaneously with the conclusion of the 
Japanese-American negotiation, agreements to 
be signed with Great Britain and other inter- 



470 



DEPARTMENT OF STATE BULLETIN 



ested countries. The proposal was accepted by 
the American Government. However, since the 
American Government has made the proposal 
of November 26th as a result of frequent con- 
sultation with Great Britain, Australia, the 
Netherlands and Chungking, and presumably 
by catering to the wishes of the Chungking 
regime in the questions of China, it must be 
concluded that all these countries are at one 
with the United States in ignoring Japan's 
position. 

"7. Obviously it is the intention of the Amer- 
ican Government to conspire with Great Britain 
and other countries to obstruct Japan's efforts 
toward the establishment of peace through the 
creation of a new order in East Asia, and espe- 



cially to preserve Anglo-American rights and 
interests by keeping Japan and China at war. 
This intention has been revealed clearly during 
the course of the present negotiation. Thus, 
the earnest hope of the Japanese Government to 
adjust Japanese-American relations and to pre- 
serve and promote the peace of the Pacific 
through cooperation with the American Gov- 
ernment has finally been lost. 

"The Japanese Government regrets to have to 
notify hereby the American Government that 
in view of the attitude of the American Gov- 
ernment it cannot but consider that it is impos- 
sible to reach an agreement through further 
negotiations. 

"December 7, 1941." 



ADDRESS BY ASSISTANT SECRETARY LONG = 



[Released to the press December 10] 

Secretary Hull has asked me to give to you 
his most cordial greetings and convey to you his 
deep regret that pressure of work has made it 
impossible for him to be with you in person at 
your present annual meeting, as he was at your 
meeting two years ago. 

You may recall that, on that occasion, he 
spoke of the dangers to the safety and security 
of this Nation, which were then emerging. 
Those dangers are now an actuality. Japan has 
made a treacherous and utterly unprovoked 
attack upon the United States. At the very 
time representatives of Japan were discussing 
with representatives of this country, at the re- 
quest of the former, principles for a peaceful 
settlement in the Pacific area, the armed forces 
of Japan were preparing at strategic points to 
launch attacks upon the United States and other 
nations. 

You will recall that it was just 10 years ago, 
in 1931, when Japan opened a dangerous breach 
in the structure of international peace by the 
occupation of Manchuria. That act, which was 



' Delivered at the annual convention of the American 
Farm Bureau Federation, Chicago, 111., December 9, 
1941. 



universally condemned at the time, proved to 
be only the beginning of a series of flagrant vio- 
lations of international commitments — prob- 
ably unparalleled in all history. During the 
year 1937, Japan struck a further and more 
extensive blow at China as Japanese armed 
forces embarked upon large-scale military op- 
erations against that country. Invading forces 
of more than a million men occupied areas 
along the coast and in the central provinces. 
In these regions were set up public regimes 
which instituted systems of controls and mo- 
nopolies discriminatory in favor of the interests 
of Japan. It was clear from the beginning that 
Japan had become actuated by broad and am- 
bitious plans for establishing herself in a dom- 
inant position in the entire area of the Western 
Pacific. Her leaders openly declared the de- 
termination to achieve and maintain that posi- 
tion by force and thus to make themselves 
masters of an area containing almost one half 
of the entire world population. In carrying 
forward their armed aggression, the Japanese 
leaders repudiated and violated all essential 
principles of peaceful and orderly international 
relations. They have indulged in merciless 
armed attack; in terrorism through slaughter 
of noncombatant men, women, and children; 



DECEMBER 13, 1941 



471 



in confiscation of property; and in deceit and 
fraud. 

Notwithstanding the course which Japan has 
followed during recent years, this Government 
made many efforts to persuade the Japanese 
Government that the best interests of that coun- 
try lay in the development of friendly rela- 
tions with the United States and with other 
countries which believe in international law and 
order. However, a year ago Japan tied herself 
to the Axis by signing the Tripartite Pact with 
Germany and Italy. Even then this Govern- 
ment did not give up attempts at a peaceful set- 
tlement for the entire Pacific area. Since April 
of this year informal conversations have been 
carried on between representatives of the United 
States and Japan endeavoring to reacli such a 
settlement. Last month the Japanese Govern- 
ment sent to this country a special representa- 
tive to participate in these discussions. For 
the past three weeks these conversations have 
been carried on in Washington, with the Japa- 
nese throughout professing to have none but 
peaceful intentions in the Pacific. Meanwhile, 
as the world now knows, Japan was preparing 
for a treacherous attack upon the United 
States. That attack has now come. It will be 
met with all the resources of this great Nation. 

This perfidious attack upon the United States 
has instantaneously united the Nation. The 
American people are overwhelmingly convinced 
that the perpetrator of the attack must be 
crushed. 

Wliile dealing with this situation in the 
Pacific, we must not overlook the danger on the 
other side of the world. For Germany, in the 
very heart of Europe, is under the absolute rule 
of ruthless and ambitious men who live for war, 
have prepared for war, and finally forced war 
upon that continent. These men stand today 
convicted out of their own mouths of the most 
heinous crime against humanity — the deliberate 
launching of a destructive war of world- 
conquest. 

Since 1939, Hitler's armies have swept across 
Europe; 16 independent nations have been 
broken on the conqueror's wheel. They find 
themselves bleeding, starving, and enslaved, 



under the most barbarous and tyrannical rule 
seen in the world for a thousand years or more. 
Even those countries which surrendered with- 
out resistance are now under complete Nazi 
domination, their fate only slightly better than 
that of the nations which rose in arms in de- 
fense of their right to live. 

Last year, the would-be conqueror struck at 
the British Isles in an attempt to terrorize Great 
Britain into submission by indiscriminate de- 
struction of its cities and by murder from the 
air of men, women, and children. That assault 
was beaten off by the unparalleled courage and 
fortitude of the British people. Thus frus- 
trated, Hitler smashed his way through the 
Balkan countries, clear to the Mediterranean, 
invaded North Africa, and last summer attacked 
Russia in complete disregard of his own solemn 
promise to maintain peace with that country. 

And all through this period. Hitler has been 
conducting a campaign of terror on the high 
seas. His purpose is painfully clear. It is no 
less than to gain control of the Atlantic as a 
necessary step in the direction of world-con- 
quest. The strategy, too, is clear. Hitler in- 
tends to prevent supplies from reaching the 
British Isles and thus make easier an invasion 
of England. He intends to intimidate us into 
a retreat from the high seas and, therefore, into 
an abandonment of one of our most important 
areas of self-defense, for the oceans which wash 
our shores could become the broad highways to 
reach this hemisphere. Victorious on the 
oceans, he would proceed to blast a way for him- 
self toward the conquest of the Western 
Hemisphere. 

His agents already are definitely at work on 
this side of the Atlantic. Every device of sub- 
version is being used to create in the Western 
Hemisphere conditions similar to those which 
were created in the countries of Europe result- 
ing in national disunity and weakness and even 
in treason and which develop within the borders 
of the intended victims powerful aids to mili- 
tary invasion. 

For years we watched with mounting anxiety 
the rise of danger to the peace of the world. 
That danger inhered in the increasing deterio- 



472 



DEPARTMENT OF STATE BULLETIN 



ration of all international relationships; in the 
growth of violations of treaty obligations; in 
increasing frequency of failures to observe the 
obligations of national honor ; in a furious arm- 
ament race the tempo of which was being set by 
nations bent upon attaining their national aims 
by armed force; in acute economic warfare 
brought into play by the use of every variety of 
obstruction to the operation of healthy world- 
trade. 

Our Government sought in every way to help 
reverse this fatal drift. We proceeded on the 
basic assumption that a major war anywhere in 
the world was bound to have detrimental effects 
on the welfare of every nation, however far 
situated from the area of actual conflict. We 
used our influence wherever possible to induce 
all nations to compose by pacific means what- 
ever differences existed between them. Through 
the trade-agreements program and other eco- 
nomic policies we sought to create conditions 
of international trade in which all nations would 
benefit and which would, therefore, strengthen 
immeasurably the foundations of world-peace. 
Through diplomatic activities we tried to ar- 
range the settlement of disagreements between 
nations by peaceful means. 

Fortunately, enough of us — though, unhap- 
pily, not all of us — recognized the grave inter- 
national dangers in time and have not remained 
supine and complacent in the face of them. As 
a result, our country has not committed the fatal 
error into which so many other countries have 
fallen to their lasting and tragic sorrow. 

Danger has grown and multiplied with every 
week that has gone by. And to every new in- 
crease of danger we have responded with an 
appropriate strengthening of our means of 
self-defense. This has been the story back of 
every defensive step we have taken. 

At the very outset of the war, the Congress 
repealed the embargo against the exportation of 
arms which had been provided for in our so- 
called Neutrality Act. The need for such action 
had been apparent for some time, and efforts 
were ma,de before the war to eliminate the em- 



bargo provision. It was becoming more and 
more apparent that a prohibition on shipments 
of arms served merely to deprive peaceful na- 
tions of access to means of self-defense and was 
thus encouraging aggressive nations bent on 
war. 

Early in 1940, we undertook a series of de- 
fense measures designed to meet danger from 
whatever direction it might come. We began 
to expand our armament program to create ade- 
quate material means of defense. We speeded 
up our naval construction. We instituted a se- 
lective-training sj'stem. By arrangement with 
Great Britain, we secured air and naval bases 
from Newfoundland to South America and be- 
gan constructing a girdle of steel at the Atlantic 
approaches to the Western Hemisphere. At the 
Habana Conference we entered into agreements 
with our sister republics of the Americas for 
common action to combat subversive activities in 
this hemisphere, to coordinate our economic ef- 
forts, and to meet the possible contingency of a 
transfer to undesirable hands of sovereignty 
over European possessions in the Western 
World. 

We entered into arrangements with Canada 
and with some of our southern neighbors for a 
coordination of both economic and defense ef- 
forts. By agreement we effected a precaution- 
ary occupation of Greenland, and later, by an 
arrangement with the Government of Iceland, 
we sent our armed forces to that country as 
well — thus insuring that those two outposts of 
the Western World, vital to our hemispheric de- 
fense, will not fall into Nazi hands. More re- 
cently, by a similar arrangement with the Gov- 
ernment of the Netherlands, we have sent troops 
to Dutch Guiana. 

When it became clear that Great Britain, 
China, and the other countries which are resist- 
ing aggression would not be able to obtain from 
us an adequate volume of materials necessary 
for their military effort without some form of 
financial assistance from us, the Congress passed 
the Lend-Lease legislation. That far-reaching 



DECEMBER 13, 1941 



473 



measure has in effect converted our country into 
an arsenal of liberation from the greatest men- 
ace of world -conquest that has evpr arisen in 
recorded history. 

When some months ago, piratical attacks 
upon American vessels began to multiply over 
widespread areas of the Atlantic, the President 
issued an order to our Navy to deal vigorously 
with the ruthless marauders of the seas. 
Finally, when it became apparent that our 
efforts of self-defense, in the circumstances 
which have now arisen, were being obstructed 
and impaired by the provisions of the Neutral- 
ity Act forbidding the arming of our merchant 
ships and their entry into certain designated 
zones, the Congress repealed these hampering 
provisions. 

All these have been consistent and persistent 
efforts to make our means of self-defense ade- 
quate to the danger in the world today. 

No group in this country has more to gain 
directly from world political and economic sta- 
bility, based upon international cooperation and 
good-will, than have American farmers. Un- 
less this Nation has failed to profit by the lessons 
of the past, we will bend every effort toward 
fostering, at the close of this war, a program of 
international cooperation which is fundamen- 
tally sound and in the interest of all nations. 
That, of course, is a matter to which constant 
thought and preparation must be given. 

American farmers can make, and are making, 
a great contribution to the successful outcome 
of the struggle. The goals which have been set 
for increasing our production of foodstuffs to 
meet increasing demands both at home and 
abroad are, of course, matters with which you 
are familiar. We have assumed large obliga- 
tions by way of supplying the great needs of 
the British for foodstuffs. We have also under- 
taken to meet the increasing needs for food- 
stuffs of other nations resisting aggression. 

That this front is not being neglected is evi- 
denced by the fact that, in spite of great ship- 
ping diiEculties, we sent to Great Britain under 



the Lend-Lease Act, between April and October 
of this year, 1,650,000,000 pounds of agricul- 
tural commodities. These included cheese, dried 
milk, evaporated milk, eggs, pork, lard, fruits 
and vegetables, grain and cereal products, fats 
and oils, and other foodstuffs, in addition to 
non-foodstuffs such as cotton, tobacco, and naval 
stores. This is but a beginning. 

Farmers in this country have today an op- 
portunity to render great service to their coun- 
try in time of grave national emergency. They 
are confronted with the difficult task of rapidly 
expanding their output of those kinds of farm 
products which are most needed at this time, 
particularly the concentrated foodstuffs. Their 
task is not an easy one. Difficulties of obtaining 
adequate supplies of labor, of machinery, of 
fertilizers, not to mention other obstacles, 
greatly complicate the task. 

But there is every evidence that the pioneer 
spirit which has been a proud tradition of our 
people is once more playing its part in this 
great crisis. Plans are now going forward for 
increasing supplies of essential foods, not only 
for sustaining the war effort but also to meet 
the immediate post-war needs of the countries 
which have been overrun and devastated by war. 
Meeting the emergency needs of these countries 
during the post-war period is a problem of 
equal importance with that of supplying the 
war-time needs of the countries which are resist- 
ing aggression, for it will help to restore order 
in the world. 

The part which agriculture can play, both in 
the winning of the war and in the winning of 
the peace, is an all-important one. The farm- 
ers of this Nation have never failed to do their 
part, and they will not fail in the great crisis 
through which we are now passing. With the 
unconquerable strength of a united and deter- 
mined people we will see this thing through to 
the end. The great scourges that now so gravely 
menace our fi'eedom and security will be no 
more, and a stronger foundation for the peace 
and security of our people will be built once 
more. 



474 DEPARTMENT OF STATE BULLETIN 

DECLARATIONS OF A STATE OF WAR BY THE UNITED STATES 
MESSAGE OF THE PRESIDENT TO THE CONGRESS DECEMBER 8 



[Released to the press by the White House December S] 

To THE Congress of the United States : 

Yesterday, December 7, 1941 — a date which 
will live in infamy — the United States of Amer- 
ica was suddenly and deliberately attacked by 
naval and air forces of the Empire of Japan. 

The United States was at peace with that 
Nation and, at the solicitation of Japan, was still 
in conversation with its Government and its 
Emperor looking toward the maintenance of 
peace in the Pacific. Indeed, one hour after 
Japanese air squadrons had commenced bomb- 
ing in Oahu, the Japanese Ambassador to the 
United States and his colleague delivered to the 
Secretary of State a formal reply to a recent 
American message. While this reply stated that 
it seemed useless to continue the existing diplo- 
matic negotiations, it contained no threat or 
hint of war or armed attack. 

It will be recorded that the distance of Hawaii 
from Japan makes it obvious that the attack 
was deliberately planned many days or even 
weeks ago. During the intervening time the 
Japanese Government has deliberately sought to 
deceive the United States by false statements 
and expressions of hope for continued peace. 

The attack yesterday on the Hawaiian Islands 
has caused severe damage to American naval and 
military forces. Very many American lives have 
been lost. In addition American ships have been 
reported torpedoed on the high seas between 
San Francisco and Honolulu. 

Yesterday the Japanese Government also 
launched an attack against Malaya. 

Last night Japanese forces attacked Hong 
Kong. 

Last night Japanese forces attacked Guam. 

Last night Japanese forces attacked the Phil- 
ippine Islands. 



Last night the Japanese attacked Wake 
Island. 

Tliis morning the Japanese attacked Midway 
Island. 

Japan has, therefore, undertaken a surprise 
offensive extending throughout the Pacific area. 
The facts of yesterday speak for themselves. 
The people of the United States have already 
formed their opinions and well understand the 
implications to the very life and safety of our 
Nation. 

As Commander-in-Chief of the Army and 
Navy I have directed that all measures be taken 
for our defense. 

Always will we remember the character of the 
onslaught against us. 

No matter how long it may take us to over- 
come this premeditated invasion, the American 
people in their righteous might will win 
through to absolute victory. 

I believe I interpret the will of the Congress 
and of the people when I assert that we will not 
only defend ourselves to the uttermost but will 
make very certain that this form of treachery 
shall never endanger us again. 

Hostilities exist. There is no blinking at 
the fact that our people, our territory, and our 
interests are in grave danger. 

With confidence in our armed forces — with 
the unbounded determination of our people — 
we will gain the inevitable triumph — so help us 
God. 

I ask that the Congress declare that since the 
unprovoked and dastardly attack by Japan on 
Sunday, December seventh, a state of war has 
existed between the United States and the Japa- 
nese Empire. 

Franklin D Roosevelt 

The White House, 
December <S, 191^1. 



DECEMBER 13, 1941 



475 



DECLARATION OF A STATE OF WAR WITH JAPAN 



"Joint Resolution Declaring that a state of war 
exists between the Imperial Government 
of Japan and the Government and the peo- 
ple of the United States and making pro- 
visions to prosecute the same. 
"Whereas the Imperial Government of Japan 
has committed unprovoked acts of war against 
the Government and the people of the United 
States of America : Therefore be it 

'■^Resolved hy the Senate and House of Repre- 
sentatives of the United States of America in 
Congress assembled, That the state of war be- 



tween the United States and the Imperial Gov- 
ernment of Japan which has thus been thrust 
upon the United States is hereby formally de- 
clared; and the President is hereby authorized 
and directed to employ the entire naval and mili- 
tary forces of the United States and the re- 
sources of the Government to carry on war 
against the Imperial Government of Japan ; and, 
to bring the conflict to a successful termination, 
all of the resources of the country are hereby 
pledged by the Congress of the United States. 

"Approved, December 8, 1941, 4:10 p.m., 
E.S.T."i 



MESSAGE OF THE PRESIDENT TO THE CONGRESS DECEMBER 11 



[Released to the press by the White House December 11] 

To THE Congress of the United States : 

On the morning of December eleventh, the 
Government of Germany, pursuing its course of 
world-conquest, declared war against the United 
States. 

The long known and the long expected has 
thus taken place. The forces endeavoring to 
enslave the entire world now are moving towards 
this hemisphere. 

Never before has there been a greater challenge 
to life, liberty, and civilization. 

Delay invites greater danger. Eapid and 
united effort by all of the peoples of the world 



who are determined to remain free will insure 
a world victory of the forces of justice and of 
righteousness over the forces of savagery and of 
barbarism. 

Italy also has declared war against the United 
States. 

I therefore request the Congress to recognize 
a state of war between the United States and 
Germany, and between the United States and 
Italy. 

Franklin D Roosevelt 

The White House, 
December 11, 19^1. 



DECLARATIONS OF A STATE OF WAR WITH GERMANY AND ITALY 



"Joint Resolution Declaring that a state of war 
exists between the Government of Germany 
and the Government and the people of the 
United States and making provision to 
prosecute the same. 

"Whereas the Government of Germany has 
formally declared war against the Government 
and the people of the United States of America : 
Therefore be it 

^'■Resolved hy the Senate and House of Repre- 

431703 — II 3 



sentatives of the United States of America in 
Congress assembled, That the state of war be- 
tween the United States and the Government of 
Germany which has thus been thrust upon the 
United States is hereby formally declared ; and 
the President is hereby authorized and directed 
to employ the entire naval and military forces 
of the United States and the resources of the 
Government to carry on war against the Gov- 



' Public Law 328, 77th Cong. 



476 



DEPARTMEKT OF STATE BXJLLETIN 



eniment of Germany ; and, to bring the conflict 
to a successful termination, all of the resources 
of the country are hereby pledged by the Con- 
gress of the United States. 

"Approved, December 11, 1941, 3 : 05 p.m., 
E.S.T." 1 



"Joint Resolution Declaring that a state of war 
exists between the Goverimient of Italy and 
the Government and the people of the 
United States and making provision to 
prosecute the same. 

"Whereas the Government of Italy has for- 
mally declared war against the Government and 
the people of the United States of America: 
Therefore be it 



^'■Resolved hy the Senate and House of Repre- 
sentatives of the United States of America in 
Congress assembled, That the state of war be- 
tween the United States and the Government of 
Italy which has thus been thrust upon the 
United States is hereby formally declared ; and 
the President is hereby authorized and directed 
to employ the entire naval and military forces 
of the United States and the resources of the 
Government to carry on war against the Gov- 
ernment of Italy; and, to bring the conflict to a 
successful termination, all of the resources of 
the country are hereby pledged by the Congi-ess 
of the United States. 

"Approved, December 11, 1941, 3:06 p.m., 
E.S.T." ^ 



ADDRESS BY THE PRESIDENT TO THE NATION » 



[Released to the press by the White House December 9] 

The sudden criminal attacks perpetrated by 
the Japanese in the Pacific provide the climax 
of a decade of international immorality. 

Powerful and resourceful gangsters have 
banded together to make war upon the whole 
human race. Their challenge has now been 
flung at the United States of America. The 
Japanese have treacherously violated the long- 
standing peace between us. Many American 
soldiers and sailors have been killed by enemy 
action. American ships have been sunk ; Amer- 
ican airplanes have been destroyed. 

The Congress and the people of the United 
States have accepted that challenge. 

Together with other free peoples, we are now 
fighting to maintain our right to live among 
our world neighbors in freedom and m common 
decency, without fear of assault. 

I have prepared the full record of our past 
relations with Japan, and it will be submitted 
to the Congress. It begins with the visit of 
Commodore Perry to Japan 88 years ago. It 



ends with the visit of two Japanese emissaries 
to the Secretary of State last Sunday, an hour 
after Japanese forces had loosed their bombs 
and machine guns against our flag, our forces, 
and our citizens. 

I can say with utmost confidence that no 
Americans today or a thousand years hence 
need feel anything but pride in our patience and 
our efforts through all the years toward achiev- 
ing a peace in the Pacific which would be fair 
and honorable to every nation, large or small. 
And no honest person, today or a thousand years 
hence, will be able to suppress a sense of in- 
dignation and horror at the treachery committed 
by the military dictators of Japan, under the 
very shadow of the flag of peace borne by their 
special envoys in our midst. 

The course that Japan has followed for the 
past 10 years in Asia has paralleled the course 
of Hitler and Mussolini in Europe and Africa. 
Today, it has become far more than a parallel. 
It is collaboration so well calculated that all the 
continents of the world, and all the oceans, are 



' Public Law 331, 77th Cong. 
' Public Law 332, 77th Cong. 



' Broadcast from the White House December 9, 1941. 



DECEMBER 13, 1941 



477 



now considered by the Axis strategists as one 
gigantic battlefield. 

In 1931, Japan invaded Manchukuo— without 
warning. 

In 1935, Italy invaded Ethiopia— without 
warning. 

In 1938, Hitler occupied Austria — without 
warning. 

In 1939, Hitler invaded Czechoslovakia— 
without warning. 

Later in 1939, Hitler invaded Poland — with- 
out warning. 

In 1940, Hitler invaded Norway, Denmark, 
Holland, Belgium, and Luxembourg — without 
warning. 

In 1940, Italy attacked France and later 
Greece — without warning. 

In 1941, the Axis Powers attacked Yugoslavia 
and Greece and they dominated the Balkans — 
without warning. 

In 1941, Hitler invaded Russia — without 
warning. 

And now Japan has attacked Malaya and 
Thailand — and the United States — -without 
warning. 

It is all of one pattern. 

We are now in this war. We are all in it — 
all the way. Every single man, woman, and 
child is a partner in the most tremendous under- 
taking of our American history. We must share 
together the bad news and the good news, the 
defeats and the victories — the changing for- 
tunes of war. 

So far, the news has all been bad. We have 
suffered a serious set-back in Hawaii. Our 
forces in the Philippines, which include the 
brave people of that Commonwealth, are tak- 
ing punishment, but are defending themselves 
vigorously. The reports from Guam and Wake 
and Midway Islands are still confused, but we 
must be prepared for the announcement that all 
these three outposts have been seized. 

The casualty lists of these first few days will 
undoubtedly be large. I deeply feel the anxiety 
of all families of the men in our armed forces 
and the relatives of people in cities which have 
been bombed. I can only give them my solemn 



promise that they will get news just as quickly 
as possible. 

This Government will put its trust in the 
stamina of the American people, and will give 
the facts to the public as soon as two conditions 
have been fulfilled : first, that the information 
has been definitely and officially confirmed ; and, 
second, that the release of the information at the 
time it is received will not prove valuable to the 
enemy directly or indirectly. 

Most earnestly I urge my countrymen to reject 
all rumors. These ugly little hints of complete 
disaster fly thick and fast in wartime. They 
have to be examined and appraised. 

As an example, I can tell you frankly that 
until further surveys are made, I have not 
sufficient information to state the exact damage 
which has been done to our naval vessels at 
Pearl Harbor. Admittedly the damage is seri- 
ous. But no one can say how serious until we 
know how much of this damage can be repaired 
and how quickly the necessary repairs can be 
made. 

I cite as another example a statement made 
on Sunday night that a Japanese carrier had 
been located and sunk off the Canal Zone. And 
when you hear statements that are attributed to 
what they call "an authoritative source", you 
can be reasonably sure that under these war cir- 
cumstances the "authoritative source" was not 
any person in authority. 

Many rumors and reports which we now hear 
originate with enemy sources. For instance, 
today the Japanese are claiming that as a result 
of their one action against Hawaii they have 
gained naval supremacy in the Pacific. This is 
an old trick of propaganda which has been used 
innumerable times by the Nazis. The purposes 
of such fantastic claims are, of course, to spread 
fear and confusion among us, and to goad us 
into revealing military information which our 
enemies are desperately anxious to obtain. 

Our Government will not be caught in this 
obvious trap — and neither will our people. 

It must be i-emembered by each and every one 
of us that our free and rapid communication 
must be greatly restricted in wartime. It is 



478' 



DEPARTMENT OF STATE BULLETIN 



not possible to receive full, speedy, accurate re- 
ports from distant areas of combat. This is 
particularly true where naval operations are 
concerned. For in these days of the marvels of 
radio it is often impossible for the commanders 
of various units to report their activities by 
radio, for the very simple reason that this in- 
formation would become available to the enemy 
and would disclose their position and their plan 
of defense or attack. 

Of necessity there will be delays in officially 
confirming or denying reports of operations, but 
we will not hide facts from the country if we 
know the facts and if the enemy will not be 
aided by their disclosure. 

To all newspapers and radio station? — all 
those who reach the eyes and ears of the Amer- 
ican people — I say this : you have a most grave 
responsibility to the Nation now and for the 
duration of this war. 

If you feel that your Government is not dis- 
closing enough of the truth, you have every 
right to say so. But — in the absence of all the 
facts, as revealed by official sources — you have 
no right to deal out unconfirmed reports in such 
a way as to make people believe they are gospel 
truth. 

Every citizen, in every walk of life, shares 
this same responsibility. The lives of our sol- 
diers and sailors — the whole future of this Na- 
tion — depend upon the manner in which each 
and every one of us fulfils his obligation to our 
country. 

Now a word about the recent past — and the 
future. A year and a half has elapsed since 
the fall of France, when the whole world first 
realized the mechanized might which the Axis 
nations had been building for so many years. 
America has used that year and a half to great 
advantage. Knowing that the attack might 
i-each us in all too short a time, we immediately 
began greatly to increase our industrial strength 
and our capacity to meet the demands of modern 
warfare. 

Precious months were gained by sending vast 
quantities of our war material to the nations 
of the world still able to resist Axis aggression. 
Our policy rested on the fundamental truth that 



the defense of any country resisting Hitler or 
Japan was in the long run the defense of our own 
country. That policy has been justified. It 
has given us time, invaluable time, to build our 
American assembly lines of production. 

Assembly lines are now in operation. Others 
are being rushed to completion. A steady 
stream of tanks and planes, of guns and ships, of 
shells and equipment — that is what these 18 
months have given us. 

But it is all only a beginning of what has to 
be done. We must be set to face a long war 
against crafty and powerful bandits. The at- 
tack at Pearl Harbor can be repeated at any one 
of many points in both oceans and along both 
our coast lines and against all the rest of the 
hemispliere. 

It will not only be a long war, it will be a hard 
war. That is the basis on which we now lay all 
our plans. That is the yardstick by which we 
measure what we shall need and demand ; money, 
materials, doubled and quadrupled production — 
ever-increasing. The production must be not 
only for our own Army and Navy and Air 
Forces. It must reinforce the other armies and 
navies and air forces fighting the Nazis and the 
war-lords of Japan throughout the Americas 
and the world. 

I have been working today on the subject of 
production. Your Government has decided on 
two broad policies. 

The first is to speed up all existing production 
by working on a seven-day-week basis in every 
war industry, including the production of essen- 
tial raw materials. 

The second policy, now being put into form, 
is to rush additions to the capacity of produc- 
tion by building more new plants, by adding to 
old plants, and by using the many smaller plants 
for war needs. 

Over the hard road of the past months, we 
have at times met obstacles and difficulties, divi- 
sions and disputes, indifference and callousness. 
That is now all past — and, I am sure, forgotten. 

The fact is that the country now has an or- 
ganization in Washington built around men and 
women who are recognized experts in their own 
fields. I think the country knows that the peo- 



DECEMBER 13, 1941 



479 



pie who are actually responsible in each and 
every one of these many fields are pulling to- 
gether with a teamwork that has never before 
been excelled. 

On the road ahead there lies hard work — 
gruelling work — day and night, every hour and 
every minute. 

I was about to add that ahead there lies sacri- 
fice for all of us. 

But it is not correct to use that word. Tlie 
United States does not consider it a sacrifice 
to do all one can, to give one's best to our Nation, 
when the Nation is fighting for its existence 
and its future life. 

It is not a sacrifice for any man, old or young, 
to be in the Army or the Navy of the United 
States. Rather is it a privilege. 

It is not a sacrifice for the industrialist or the 
wage-earner, the farmer or the shopkeeper, the 
trainman or the doctor, to pay more taxes, to 
buy more bonds, to forego extra profits, to work 
longer or harder at the task for which he is best 
fitted. Rather is it a privilege. 

It is not a sacrifice to do without many things 
to which we are accustomed if the national de- 
fense calls for doing without. 

A review this morning leads me to the con- 
clusion that at present we shall not have to cur- 
tail the normal articles of food. There is 
enough food for all of us and enough left over 
to send to those who are fighting on the same 
side with us. 

There will be a clear and definite shortage of 
metals of many kinds for civilian use, for the 
very good reason that in our increased program 
we shall need for war purposes more than half 
of that portion of the principal metals which 
during the past year have gone into articles for 
civilian use. We shall have to give up many 
things entirely. 

I am sure that the people in every part of the 
Nation are prepared in their individual living 
to win this war. I am sure they will cheerfully 
help to pay a large part of its financial cost 
while it goes on. I am sure they will cheerfully 
give up those material things they are asked to 
give up. 

I am sure that they will retain all those great 



spiritual things without which we cannot win 
through. 

I repeat that the United States can accept no 
result save victory, final and complete. Not 
only must the shame of Japanese treachery 
be wiped out, but the sources of international 
brutality, wherever they exist, must be abso- 
lutely and finally broken. 

In my message to the Congress yesterday I 
said that we "will make very certain that this 
form of treachery shall never endanger us 
again." In order to achieve that certainty, we 
must begin the great task that is before us by 
abandoning once and for all the illusion that we 
can ever again isolate ourselves from the rest of 
humanity. 

In these past few years — and, most violently, 
in the past few days — we have learned a terrible 
lesson. 

It is our obligation to' our dead — it is our 
sacred obligation to their children and our chil- 
dren — that we must never forget what we have 
learned. 

And what we all have learned is this : 

There is no such thing as security for any 
nation — or any individual — in a world ruled by 
the principles of gangsterism. 

There is no such thing as impregnable defense 
against powerful aggressors who sneak up in 
the dark and strike without warning. 

We have learned that our ocean-girt hemi- 
sphere is not immvme from severe attack — that 
we cannot measure our safety in terms of mUes 
on any map. 

We may acknowledge that our enemies have 
performed a brilliant feat of deception, per- 
fectly timed and executed with great skill. It 
was a thoroughly dishonorable deed, but we 
must face the fact that modern warfare as con- 
ducted in the Nazi manner is a dirty business. 
We don't like it — we didn't want to get in it — 
but we are in it, and we're going to fight it with 
everything we've got. 

I do not think any American has any doubt 
of our ability to administer proper punishment 
to the perpetrators of these crimes. 

Your Government knows that for weeks Ger- 
many has been telling Japan that if Japan did 



480 



DEPARTMENT OF STATE BULLETm 



not attack the United States, Japan would not 
share in dividing the spoils with Germany 
when peace came. She was promised by Ger- 
many that if she came in she would receive the 
complete and perpetual control of the whole of 
the Pacific area — and that means not only the 
Far East, not only all of the islands in the 
Pacific, but also a stranglehold on the west coast 
of North, Central, and South America. 

We also know that Germany and Japan are 
conducting their military and naval operations 
in accordance with a joint plan. That plan con- 
siders all peoples and nations which are not 
helping the Axis powers as common enemies of 
each and every one of the Axis powers. 

That is their simple and obvious grand 
strategy. That is why the American people 
must realize that it can be matched only with 
similar grand strategy. We must realize for 
example that Japanese successes against the 
United States in the Pacific are helpful to Ger- 
man operations in Libya ; that any German suc- 
cess against the Caucasus is inevitably an as- 
sistance to Japan in her operations against the 
Dutch East Indies; that a German attack 
against Algiers or Morocco opens the way to a 
German attack against South America. 

On the other side of the picture, we must learn 
to know that guerilla warfare against the Ger- 
mans in Serbia helps us ; that a successful Rus- 
sian offensive against the Germans helps us; 
and that British successes on land or sea in any 
part of the world strengthen our hands. 



Remember always that Germany and Italy, 
regardless of any formal declaration of war, con- 
sider themselves at war with the United States 
at this moment just as much as they consider 
themselves at war with Britain and Russia. 
And Germany puts all the other republics of the 
Americas into the category of enemies. The 
people of the hemisphere can be honored by 
that. 

The true goal we seek is far above and be- 
yond the ugly field of battle. When we resort 
to force, as now we must, we are determined 
that this force shall be directed toward ulti- 
mate good as well as against immediate evil. 
We Americans are not destroyers — we are 
builders. 

We are now in the midst of a war, not for 
conquest, not for vengeance, but for a world in 
which this Nation, and all that this Nation rep- 
resents, will be safe for our children. We ex- 
pect to eliminate the danger from Japan, but 
it would serve us ill if we accomplished that 
and found that the rest of the world was domi- 
nated by Hitler and Mussolini. 

We are going to win the war and we are 
going to win the peace that follows. 

And in the dark hours of this day — and 
through dark days that may be yet to come — 
we will know that the vast majority of the 
members of the human race are on our side. 
Many of them are fighting with us. All of them 
are praying for us. For, in representing our 
cause, we represent theirs as well — our hope 
and their hope for liberty under God. 



DECLARATIONS OF A STATE OF WAR BY THE AXIS COUNTRIES 

GERMAN DECLARATION 



[Released to the press December 11] 

The German Charge d'Affaires, Dr. Hans 
Thomsen, and the First Secretary of the Ger- 
man Embassy, Mr. von Strempel, called at the 
State Department at 8 : 20 a.m. on December 11, 
1941. The Secretary, otherwise engaged, di- 
rected that they be received by the Chief of the 
European Division of the State Department, 



Mr. Ray Atherton. Mr. Atherton received the 
German representatives at 9 : 30 a. m. 

The German representatives handed to Mr. 
Atherton a copy of a note that is being deliv- 
ered this morning, December 11, to the Ameri- 
can Charge d'Affaires in Berlin. Dr. Thomsen 
said that Germany considers herself in a state 
of war with the United States. He asked that 



DECEMBER 13, 1941 



481 



the appropriate measures be taken for the de- 
parture of himself, the members of the German 
Embassy, and staff in this country. He re- 
minded Mr. Atherton that the German Gov- 
ernment had previously expressed its willing- 
ness to grant the same treatment to American 
press correspondents in Germany as that ac- 
corded the American official staff on a reciprocal 
basis and added that he assumed that the de- 
parture of other American citizens from Ger- 
many would be permitted on the same basis of 
German citizens desiring to leave this country. 
He referred to the exchange of civilians that 
had been arranged at the time Great Britain 
and Germany broke off diplomatic relations. 

The German Charge d'Affaires then stated 
that the Swiss Government would take over 
German interests in this country and that Dr. 
Bruggmann had already received appropriate 
instructions from his Government. 

He then handed Mr. Atherton the note from 
the German Government. Mr. Atherton stated 
that in accepting this note from the German 
Charge d'Affaires he was merely formalizing 
the realization that the Government and people 
of this country had faced since the outbreak of 
the war in 1939 of the threat and purposes of 
the German Government and the Nazi regime 
toward this hemisphere and our free American 
civilization. 

Mr. Atherton then said that this Government 
would arrange for the delivery of Dr. Thorn- 
sen's passports and that he assumed that we 
would very shortly be in communication with 
the Swiss Minister. He added that Dr. Thom- 
son must realize, however, that the physical 
difficulties of the situation would demand a 
certain amount of time in working out this 
reciprocal arrangement for the departure of 
the missions of the two countries. The German 
representatives then took their leave. 

[Released to the press December 11] 

The text of the note which the German repre- 
sent atives handed to Mr. Ray Atherton, Chief 
of the European Division of the State Depart- 
ment, at 9 : 30 a. m., December 11, the original of 
which had been delivered the morning of 



December 11 to the American Charge d'Affaires 
in Berlin, follows: 

"Mr. Charge d'Affaires: 

"The Government of the United States hav- 
ing violated in the most flagrant manner and 
in ever increasing measure all rules of neutrality 
in favor of the adversaries of Germany and 
having continually been guilty of the most 
severe provocations toward Germany ever since 
the outbreak of the European war, provoked 
by the British declaration of war against Ger- 
many on September 3, 1939, has finally resorted 
to open military acts of aggression. 

"On September 11, 1941, the President of the 
United States publicly declared that he had 
ordered the American Navy and Air Force to 
shoot on sight at any German war vessel. In 
his speech of October 27, 1941, he once more 
expressly affirmed that this order was in force. 
Acting under this order, vessels of the Ameri- 
can Navy, since early September 1941, have 
systematically attacked German naval forces. 
Thus, American destroyers, as for instance the 
Greer, the Kearney and the Reuben James, have 
opened fire on German sub-marines according 
to plan. The Secretary of the American Navy, 
Mr. Knox, himself confirmed that American 
destroyers attacked German sub-marines. 

"Furthermore, the naval forces of the United 
States, under order of their Government and 
contrary to international law have treated and 
seized German merchant vessels on the high seas 
as enemy ships. 

"The German Government therefore estab- 
lishes the following facts: 

"Although Germany on her part has strictly 
adhered to the rules of international law in her 
relations with the United States during every 
period of the present war, the Government of 
the United States from initial violations of neu- 
trality has finally proceeded to open acts of war 
against Germany. The Government of the 
United States has thereby virtually created a 
state of war. 

"The German Government, consequently, dis- 
continues diplomatic relations with the United 
States of America and declares that under these 



482 



DEPAETMENT OP STATE BULLETIN 



circumstances brought about by President 
Roosevelt Germany too, as from today, con- 
siders herself as being in a state of war with the 
United States of America. 



"Accept, Mr. Charge d'Affaires, the expres- 
sion of my high consideration. 

RiBBENTROP" 

"December 11, 1941." 



ITALIAN DECLARATION 



[Released to the press December 11] 

The Italian Foreign Minister, Count Ciano, 
sent for the American Charge d'Affaires, Mr. 
George Wadsworth, at Rome at 2 : 30 the after- 
noon of December 11, and when Mr. Wadsworth 
arrived at his office Count Ciano informed him 
that as of December 11, 1941 Italy considers 
itself at war with the United States. 

[Released to the press December 11] 

The Italian Ambassador, accompanied by 
Signor Conti, First Secretary of the Embassy, 
called on the morning of December 11 at Mr. 
Dunn's ' office at 10 : 30 to inform the Depart- 
ment that he was without instructions from his 
Government and to inquire as to his status. 
Wlien he was informed that the Italian Govern- 
ment had notified the American Charge d'Af- 
faires in Rome December 11 that Italy con- 
sidered itself at war with the United States the 



Ambassador asked that measures be taken to 
permit the staff of the Embassy to make their 
final arrangements for departure from the 
United States. He added that many Italian 
nationals in this country had requested that they 
be allowed to depart with the Italian diplomatic 
mission. He was informed that all arrange- 
ments for the departure of the Italian mission 
from this country and the treatment of Italian 
nationals would be dealt with strictly on a re- 
ciprocal basis in accordance with the treatment 
given by the Italian Government to the Ameri- 
can diplomatic mission and American nationals 
in Italy. 

The Italian Ambassador was informed that 
we had long expected Germany to carry out its 
threat against this hemisphere and the United 
States and that we fully anticipated that Italy 
would obediently follow along. 



HUNGARIAN DECLARATION 



[Released to the press December 11] 

The Hungarian Prime Minister at 8 p.m. the 
evening of December 11 informed the American 
Minister that in view of the solidarity of Cen- 
tral European states, which he compared with 
the solidarity of the republics of the Western 
Hemisphere, Hungary was obliged to break 
diplomatic relations with the United States. 
He said that this was not with the intention of 
declaring war on this country. 



' Adviser on Political Relations, Department of State. 



The Prime Minister observed that he would 
have to consult with Berlin concerning the 
means, time, and route of departure of the 
diplomatic mission. 

[Released to the press December 13] 

The American Minister in Budapest, Hun- 
gary, has informed the Department that the 
Hungarian Prime Minister informed him at 
5 : 30 p.m., December 13, that Hungary considers 
war to exist between Hungary and the United 
States. 



DECEMBER 13, 1041 



483 



RUMANIAN DECLARATION 



[Released to the press December 14] 

The American Legation in Bucharest. Ku- 
mania, has informed the Department that the 
Secretary General of the Rumanian Foreign 
Office had delivered a note to the Legation dated 
December 12, 1941, a translation of which 
follows : 

"The Royal Rumanian Government has the 
honor to communicate to the Government of 



the United States of America that, in conform- 
ity with the dispositions of the Tripartite Pact 
and respecting the obligations of solidarity con- 
tained in this pact, as a result of the state of 
war which has arisen between the United States 
of America on the one hand, and the German 
Reich, Italy and Japan on the other, Rumania 
herself is in a state of war with the United 
States of America." 



BULGARIAN DECLARATION 



[Released to the press December 13] 

The American Minister in Sofia, Bulgaria, 
informed the Department on December 13, 1941 
that the Bulgarian Government had just de- 
clared to Parliament that in accordance with 



article 3 of the Tripartite Pact Bulgaria is in a 
state of war with England and the United 
States. He added that he was expecting official 
notification from the Foreign Office momen- 
tarily. 



SOLIDARITY OF THE AMERICAN REPUBLICS 

THIRD MEETING OF MINISTERS OF FOREIGN AFFAIRS OF THE AMERICAN 
REPUBLICS AT RIO DE JANEIRO 



[Released to the press December 10] 

On the morning of December 10 the Secretary 
of State proposed to the Governing Board of the 
Pan American Union, through a communication 
addressed to Dr. Leo S. Rowe, Director General 
of th.e Pan American Union, that there be held 
at Rio de Janeiro in the first week of January 
1942 a Third Meeting of the Ministers of For- 
eign AflFairs of the American Republics. This 
request was presented in accordance with Reso- 
lution XV adopted by the Second Meeting of 
the Ministers of Foreign Aflfairs of the Ameri- 
can Republics in Habana, which stated that, in 
case acts of aggression are committed, the Amer- 
ican republics will consult among themselves in 
order to agree upon the measures it may be ad- 
visable to take and pursuant to the procedure for 

431703 — 41 4 



invoking a consultation established by Resolu- 
tion XVII adopted at the same meeting. 

[Released to the press December 10] 

The Government of Chile inquired of this 
Government its views with regard to the desir- 
ability of holding in the immediate future a con- 
sultative meeting of foreign ministers. The 
Chilean Government was informed that the 
United States Government believed that such a 
meeting should be held as soon as possible and 
this Government is of course in full accord with 
the steps taken by the Chilean Government in 
that regard which demonstrate anew the 
identity of views between our two countries. 

The Government of the United States on De- 
cember 9 addressed the following communica- 



484 



DEPARTMEXT OF STATE BULLETm 



tion to the Governments of all the other Ameri- 
can republics: 

"The American Republics, at the Inter-Amer- 
ican Conferences held in Buenos Aires, Lima, 
Panama, and Habana have jointly recognized 
that a threat to the peace, security, or territorial 
integrity of any American Republic is of com- 
mon concern to all. 

"In the Fifteenth Resolution adopted by the 
American Republics at the Consultative Meeting 
held in Habana in July of 1940, and entitled 
'Reciprocal Assistance and Cooperation for the 
Defense of the Nations of the Americas', the 
American Republics declared that 'any attempt 
on the part of a non-American state against the 
integrity or inviolability of the territory, the 
sovereignty, or the political independence of an 
American state shall be considered as an act of 
aggression against the states which signed this 
declaration', and further declared that in case 
such acts of aggression are committed against an 
American state by a non-American nation 'the 
nations signatory to the present declaration will 
consult among themselves in order to agree upon 
the measure it may be advisable to take.' 

"On December 7, 1941, without warning or 
notice, and during the course of negotiations en- 
tered into in good faith by the Government of 
the United States for the purpose of maintain- 
ing peace, territory of the United States was 
treacherously attacked by armed forces of the 
Japanese Empire. 



"The course of events since the outbreak of 
war in Europe in 1939 clearly demonstrates that 
the fate of every free and peace-loving nation of 
the world hinges upon the outcome of the pres- 
ent struggle against the ruthless efforts of cer- 
tain Powers, including the Japanese Empire, to 
dominate the entire earth by the sword. 

"The wave of aggression has now broken upon 
the shores of the New World. 

"In this situation that menaces the peace, the 
security and the future independence of the 
Western Hemisphere, a consultation of the Min- 
isters of Foreign Affairs appears to be of urgent 
desirability. 

"Therefore, in conformity with the procedure 
on consultation api)roved by the Second Meet- 
ing of Foreign Ministers at Habana, the Gov- 
ernment of the United States is informing the 
Governing Board of the Pan American Union 
of its desire to hold a consultative meeting at 
the earliest possible moment. 

"In as much as the procedure agreed upon in 
Habana provides that the Governing Board of 
the Pan American Union shall not only trans- 
mit the request for consultation but, on the 
basis of the answer received, determine the date 
of the meeting, prepare the agenda, and adopt 
all other measures advisable for the preparation 
of tlie meeting, it is hoped that each country 
will appropriately instruct its diplomatic rep- 
resentatives in Washington in the premises." 



MEXICAN REINFORCEMENTS IN LOWER C.\LIFORNIA 



[Released to the press December 9] 

In order to reinforce the defenses of Lower 
California the Mexican Government is sending 
a considerable body of troops to that area. 
These troops will pass in transit over United 
States territory from Nogales, Ariz., to Tia 
Juana, Lower California, via San Diego. It is 
expected that this movement will commence on 
December 10. 

This decision of the Mexican authorities af- 



fords a striking instance of cooperation in hemi- 
spheric defense by the nations of this hemi- 
sphere in the cause of liberty and democracy 
and against the forces of a treacherous ag- 
gressor. The Government of the United States 
welcomes this opportunity of facilitating the 
journey of the troops of the sister republic and 
of extending to tliein every courtesy and 
assistance. 



DECEMBER 13, 1941 



485 



DECLARATIONS OF WAR AND SEVERANCE OF RELATIONS BY THE AMERICAN REPUBLICS WITH 
THE AXIS POWERS AND MESSAGES OF SOLIDARITY WITH THE UNITED STATES 



[Released to the press December 7) 

All the American republics have been in- 
formed by the Government of the United States 
of the treacherous attack by Japan upon the 
United States. Immediately upon receipt of 
word of the attacks on Hawaii and other Ameri- 
can territory wires were dispatched to the 
American diplomatic missions instructing them 
to inform the foreign offices at once. This Gov- 
ernment is receiving very heartening messages of 
support from the other American republics. 

(Released to the press December 9-13] 

The following messages and activities illus- 
trate the solidarity of the American republics 
with the United States in confronting the pres- 
ent situation : 

Argentina 

The Argentine Ambassador informed the 
Secretary of State on December 9 that he had 
been instructed by his Government to state, 
in response to the receipt of an official communi- 
cation from the Government of the United 
States that it is in a state of war with Japan, 
that the Argentine Government is disposed to 
adjust itself to the principles of solidarity con- 
templated by declaration XV of the Second 
Meeting of Ministers of Foreign Affairs at Ha- 
bana. The Ambassador stated that his Govern- 
ment recognized the existence of the situation 
of reciprocal assistance and defense coopera- 
tion for which provision was made in declara- 
tion XV and that Argentina had signed this 
declaration and intended to comply with it in 
friendly spirit. It was further stated by the 
Ambassador that the Argentine Government 
expects to issue a decree in which it will be 
established that the United States shall not be 
considered as a belligerent nation in the present 
conflict. 

Acting President Castillo of Argentina on 
the evening of December 9 sent the following 
message to President Roosevelt: 



"I beg to inform Your Excellency that the 
Argentine Government, in view of the state of 
war which involves the United States and af- 
fects all of America as a whole, has today issued 
a decree whereby it is declared that the Republic 
does not consider the United States of America 
in the position of a belligerent country nor 
consequently subject in this country to the limi- 
tations appropriate to a regime of neutrality. 

"In making known to Your Excellency the 
official position thus assumed by this Govern- 
ment in keeping with the common interests and 
sentiments of America in the face of an un- 
justifiable and lamentable aggression, I take 
particular pleasure in presenting to Your Ex- 
cellency the friendly wishes of the Argentine 
Government and people." 

The following decree was issued on the eve- 
ning of December 9 by the Acting President of 
Argentina : 

"Having considered the communications re- 
ceived from the Embassy of the United States 
of America, from the Embassy of Great Britain 
and from the Embassy of Japan stating that 
there exists a state of war between the said 
powers, and 

"Wliereas : 

"These communications make it necessary to 
determine the position of the Argentine Repub- 
lic in this state of war, as well as the line of 
conduct to be observed in this case without 
precedent since this is the first time that the 
declarations and agreements with respect to 
solidarity, mutual assistance and defensive co- 
operation of the American nations as approved 
in the Conference of Buenos Aires and the 
meetings of Lima, Panama and Habana, will 
be applicable. 

"To this end it is especially fitting to invoke 
Declaration XV of the Meeting of Habana to 
which the Argentine Republic adhered with the 
other American countries, since this case re- 
lates to an extracontinental aggression against 



486 



DEPARTMENT OF STATE BULLETIN 



the sovereignty of one of the American states 
and the violation of its territory. 

"The Vice President of the Argentine Nation 
in exercise of the executive power in a general 
Ministerial resolution decrees: 

"Article 1. The position of the Argentine 
Republic in the present internntionul conflict 
will be governed with respect to the United 
Sates by the Pan American obligations assumed 
with regard to solidarity, mutual assistance 
and defensive cooperation. 

"Article 2. As a consequence of this, the 
Argentine Republic does not consider the 
United States of America in the position of a 
belligerent country in this conflict. 

"Article 3. The provisions of the decree re- 
garding neutrality prescribed by Ministerial 
Resolution of September 4, 1939 are made appli- 
cable to the present state of war and only with 
respect to Great Britain and Japan. 

"Article 4. The Argentine Republic in due 
course and following the procedure provided 
by the above mentioned convention XV of Ha- 
bana will proceed to negotiate the necessary 
complement a ry agreements. 

"Article 5. Let this be communicated, pub- 
lished in the official bulletin and given to the 
National Registry." 

Secretary Hull sent the following message 
to tlie American Ambassador at Buenos Aires 
on December 9 : 

"Please express to the Minister of Foreign 
Affairs the deep appreciation of this Govern- 
ment for his statement that the Government of 
Argentina is disposed to adapt its conduct to 
the situation of reciprocal assistance and de- 
fensive cooperation provided for by declaration 
V) of Habana." 

The following telegram was sent by President 
Roosevelt to President Ortiz of the Argentine 
Republic on December 10, 1941 : 

"I deeply appreciate Your Excellency's 
friendly expression of sympathy in this emer- 
gency, and on behalf of the Govenunent and the 
people of the United States I am grateful for 
Your Excellency's moral support at a time when 
all spiritual and material forces are necessary to 



repel the treacherous Japanese aggression. I 
send you my warmest personal regards and 
remembrances." 

The following telegram was also sent on De- 
cember 10, 1941 by President Roosevelt to Acting 
President Castillo of the Argentine Republic : 

"Your Excellency's friendly and cooi^erative 
message was profoundly appreciated by the Gov- 
ernment of the United States, and I am sure 
that the sincere good wishes of the great nation 
of Argentina will be particvdurly encouraging 
to the American people in this hour when they 
have been subjected to treacherous aggression. 
As Your Excellency so well states, this un- 
provoked attack from a non- American nation 
must affect all of America as a whole. The 
solidarity of the nations of this hemisphere is, 
however, an invincible bulwark for the unstint- 
ing war effort of the United States, and of those 
sister Republics which are now at war. Your 
Excellency may be sure that the Government of 
the United States is deeply grateful for such 
practical cooperative measures already taken by 
Your Excellency's Government in accordance 
with the terms of the existing agreements be- 
tween the American Republics." 

General Justo, ex-President of the Argentine 
Republic, on December 9, 1941 addressed a tele- 
gram to President Roosevelt, a translation of 
which follows: 

"Although not holding public office in this 
moment of peril for democracy and all America 
I believe it my duty to send you my personal 
adherence as a private citizen and to tell you, 
without having the pretension to arrogate to 
myself the representation of Argentine public 
opinion, that the people of my country are 
firmly by the side of the Great Democracy of 
the North and its illustrious President, whom 
may God bless, and may God go with the arms 
which have to defend a cause as noble as that 
of America. 

(ieneral Aoustin P. Justo" 

In reply President Roosevelt on December 10, 
1941 sent the following telegram to General 
Justo : 



DECEMBER 13, 1941 



487 



"December 10, 1941 . 
"I am deeply grateful for your expression of 
personal support in this emergency and for your 
personal statement that you believe the people 
of the Argentine Republic are firmly at the side 
of the people of the United States in their 
struggle for the preservation and victory of de- 
mocracy. I send you my warmest personal 
regards. 

Franklin D Roosevelt" 

Bolivia 

Seiior Anze Matienzo, Bolivian Minister of 
Foreign Affairs, telegraphed the following mes- 
sage to Secretary of State Hull on December 
8, 1941 : 

"I wish to express to your Government our 
frank condemnation for the unjustified Japa- 
nese aggression and give our assurances that, 
with all good faith and resolution, we shall ful- 
fill the international obligations of continental 
solidarity reiterating, at the same time, our 
fidelity to the democratic principles which rule 
in our America." 

The Bolivian Minister of Foreign Affairs in- 
formed the American Minister at La Paz that 
the President and Cabinet of Bolivia had au- 
thorized him to state that the Bolivian Govern- 
ment will give its full cooperation to the United 
States in the present emergency. 

The American Minister at La Paz, Bolivia, 
was on December 9, 1941 directed to inform 
the Bolivian Minister of Foreign Affairs that 
the Government of the United States is pro- 
foundly appreciative of the statement author- 
ized by the President of Bolivia and his Cab- 
inet that Bolivia will extend its cooperation to 
the United States. The Bolivian Minister of 
Foreign Affairs was also informed by the Amer 
ican Minister that the Government of tin. 
United States would be glad to avail itself of 
the generous offer of cooperation made by the 
Bolivian Government in measures taken for the 
defense of the mutual interests of the two coun- 
tries which may be affected by the treacherous 
aggression of Japan. 



On December 10, 1941 the President of Bo- 
livia issued a decree signed by him and his Cab- 
inet stating that the Government of Bolivia 
declares its solidarity with the United States 
and other American countries which have de- 
clared war on Japan and would extend its co- 
operation in accordance with Habana Resolu- 
tion XV. The decree stated that the Bolivian 
Government will not consider belligerent any 
American republic at war in defense of its 
rights. Axis nationals in Bolivia will be sub- 
ject to strict vigilance, and funds of Japanese 
companies and individuals are frozen. 

On December 11, 1941 President Peiiaranda 
of Bolivia sent a telegram to President Roose- 
velt, a translation of which follows : 

"I have the honor to inform Your Excellency 
that my Government, in cabinet meeting, has 
issued the following decree : 

" 'Enrique Pexaranda C, Constitutional 
President of the Republic, 

" 'Considering, that the purposes of coopera- 
tion of the Bolivian Government and people 
with the other nations of the continent are un- 
shakeable; that the traditional bonds which 
unite them with those nations have been trans- 
lated into formal, legal engagements based on 
the policy of relation of the American coun- 
tries ; that respect for the principles of interna- 
tional law as the rule and guarantee of common 
existence of nations is a Bolivian doctrine ; that, 
accordingly, it rejects acts of unjustified ag- 
gression ; 

" 'With the affirmative opinion of the Council 
of Ministers decrees : 

" 'Art. 1. The Government of Bolivia stands 
solidly with the United States and with the 
other American countries which have declared 
war on Japan and will give the cooperation 
provided in resolution XV of Habana. 

" 'Art. 2. The Government of Bolivia will not 
consider as a belligerent any American Republic 
which, in defense of its rights, is in a state 
of war. 

" 'Art. 3. Nationals of the countries of the 
Axis resident in national territory will be sub- 
ject to strict supervision. 



488 



DEPARTMENT OF STATE BULLETIN 



" 'Art. 4. The funds of bank accounts and se- 
curities of Japanese individuals and cori)ora- 
tions are immobilized. 

'"Art. 5. Postal, telegraphic and radiotele- 
graphic control with respect to the interior and 
extiTior of the country is establislied and with 
respect to all means of propaganda which may 
attack the international position of the Repub- 
lic and the democratic regime established. 

"'Art. 6. Mining operations, railroads, air- 
dromes, radiotelegraphic stations, oil wells, fac- 
tories, etc., will be under armed guard. 

" 'The Ministers are charged with the execu- 
tion and fulfillment of the present decree. 
Given in the Palace of Government of the City 
of La Paz, the 10th day of the month of Decem- 
ber, nineteen hundred and forty-one. General 
Enrique Penaranda — Eduardo Anze Ma- 

TIENZO AdoLFO ViLAB — JOAQOTN ESPADA AL- 
BERTO Crespo Gutierrez — Justo Rodas 
EouiNO — Arturo Pinto Escalier — General J. 
Miguel Candia. A true copy, Jose Eduardo 
GuERBA, Chief Clerk of Foreign Affairs.^ 

"In informing Your E.xcellency of this deci- 
sion, it is an honor to express my admiration 
of the historic discourse which you gave yester- 
day, the firmness, moral elevation and juridical 
contents of whicli give dignity to humanity and 
safeguard the conquests of civilization. I offer 
Your Excellency the assurances of my highest 
and most distinguished consideration." 

In response to the above-quoted message, on 
December 11, 1941 President Roosevelt tele- 
graphed the following message to President 
Penaranda: 

"I am deeply grateful for Your Excellency'b 
message informing me of the decree issued by 
the Government of Bolivia extending the strong 
moral support of the Bolivian Government and 
people to the Govorinnent and people of the 
United States in the present conflict and enun- 
ciating certain extremely u.seful measures of 
practical cooppration with the Government of 
the United States. On bi'half of the Govern- 
ment and people of the United States, I express 
profound appreciation to Your Excellency's 



Government and people for this concrete act of 
friendship which is a heartening reaffirmation 
of the strong bonds which unite our two coun- 
tries. 

"I thank Your Excellency for your general 
personal comments, and I send you my own 
greetings with every wish for the increasing 
prosperity of the Bolivian people and Your 
Excellency's own well-being." 

Brazil 

The State Department has received the fol- 
lowing telegram from the President of Brazil to 
President Roosevelt: 

"Rto de Janeiro, 
''December 8, 191,1. 
"Upon taking cognizance of the communica- 
tion of your Excellency's Government regarding 
the aggression suffered from Japan, I assembled 
the members of my cabinet, and I have the honor 
to inform your Excellency that it was unani- 
mously resolved that Brazil declare itself 
'solidary' with the United States in accordance 
with its traditions and obligations to conti- 
nental policy. Greetings. 

Getulio Vargas" 

The following communique was issued by the 
office of President Vargas of Brazil on Decem- 
ber 8: 

"The President of the Republic today called 
a full Cabinet meeting to examine the interna- 
tional situation in view of recent events. It was 
resolved unanimously, to declare solidarity with 
the United States, in line with our continental 
obligations. The Government trusts that the 
Brazilian people, faithful to their political tra- 
ditions, will remain calm and vigilant, avoid- 
ing demonstrations which may disturb the tran- 
quillity necessary for the work and life of the 
country." 

On December 8, 1941 President Roosevelt sent 
the following telegram to President Vargas of 
Brazil : 

"I hasten to acknowledge with my profound 
appreciation and that of the people of the United 



DECEMBER 13, 1941 



489 



States Your Excellency's prompt and heartening 
message of solidarity with the United States in 
the crisis provoked by the treacherous and un- 
provoked attacks of the Japanese against 
United States lives and territory yesterday. 

"Your message is culminating proof of what 
you so eloquently stated a few weeks ago that 
inter-Americanism has moved to the field of 
positive action. I am deeply moved and 
encouraged." 

Chile 

Assurances were received on December 7, 
1941 by tlie United States that all precautions 
would be taken by the Chilean Government to 
protect the production and furnishing of stra- 
tegic materials to the United States and that all 
measures have already been taken to protect 
mines and industries belonging to American 
citizens. 

On December 10, 1941 Vice President Mendez 
of Chile addressed a telegram to President 
Eoosevelt, a translation of which follows : 

"I have the honor to inform Your Excellency 
that, after a unanimous decision by the Council 
of Ministers, I have proceeded to issue a de- 
cree in which it is provided that the Govern- 
ment of Chile will not consider belligerent, for 
the effects of the application of the laws and 
principles which govern neutrality, the Gov- 
ernment of the United States and the Govern- 
ments of the other American nations which 
have declared or may declare themselves to be 
in a state of war in connection with the present 
conflict. In transmitting the foregoing to Your 
Excellency, I am particularly happy to for- 
ward to you the adherence of the Chilean peo- 
ple and Government on the occasion of the 
aggression of which your country has been the 
object. Chile, in accordance with its invariable 
international tradition, is ready to comply with 
the engagements which it has contracted with 
respect to continental defense. Together with 
my wishes for the prosperity of the American 
people and for Your Excellency's personal hap- 
piness, I beg you to accept the assurances of my 
highest and most distinguished consideration." 

On December 11, 1941 President Roosevelt 



sent the following telegram to Vice President 
Mendez : 

"I have the honor to inform Your Excellency 
that the Government and people of the United 
States are grateful for the decision of the 
Chilean Government that it will not treat as 
belligerents those American nations at war with 
Japan. The solidarity of Chile in all that re- 
lates to continental defense and security is most 
heartening and in full accord with the high 
tradition of your great country. Please accept 
my own sincere appreciation of your per- 
sonal message of good wishes, which I heartily 
reciprocate." 

Colombia 

The exact text of a statement handed to the 
American Ambassador in Bogota by the Pres- 
ident of the Republic of Colombia on December 
8, 1941foUows: 

"Official note of the President of the Repub- 
lic — After careful examination of the situation 
created for the Colombian nation by the state of 
war existing since yesterday between the United 
States of North America and Japan and of the 
antecedents and characteristics of this veiy 
grave conflict, the Council of Ministers ap- 
proved unanimously the following conclusions 
presented for its consideration by the President 
of the Republic and by the Minister of Foreign 
Relations: 'The aggression which took place 
yesterday by the armed forces of the Japanese 
Empire against the United States constitutes 
the case clearly foreseen in Resolution Number 
Fifteen approved at the Second Meeting of For- 
eign Ministers at Habana on "reciprocal assist- 
ance and defensive cooperation of the American 
nations" by which it is declared that "every 
attempt of a non-American State against the 
mtegrity or inviolability of territory, against 
the sovereignty or political independence of an 
American State will be considered as an act of 
aggression against the States which sign this 
declaration." ' This declaration signed by the 
Government of Colombia and approved by Law 
No. 20 of 1941 creates for Colombia obligations 
to which the nation will be entirely faithful. 



490 



DEPARTMENT OF STATE BULLETIN 



As a consequence the Government resolves to 
declare broken its diplomatic relations with the 
Empire of Japan and to reaffirm in a solemn 
and categorical manner its adhej-ion to the pol- 
icy of inter-American solidarity and of coop- 
eration of the American Republics in defense of 
the continent as this policy was defined at tho 
Pan American Conference at Lima and the meet- 
ings of Foreign Ministers of Panama and Ha- 
bana. 'Tlie Government has taken and will 
continue taking the necessary means to coo]> 
erate in the defense of the continent and specifi- 
cally to make effective its spontaneous and 
irrevocable resolution to prevent by all possible 
means that tlie security of the Panama Canal 
may be flireatened directly or indirectly from 
Colombian territory or that tliere may be real- 
ized on Colombian soil acts contrary to the rules 
of inter- American solidarity.' " 

The American Ambassador in Bogota, Co- 
lombia, on December 10, 1911 was directed to 
express to President Santos in behalf of Presi- 
dent Roosevelt the great encouragement which 
the Government of the United States derives 
from the action taken by Colombia on Decem- 
ber 9, 1941 in severing its relations with Japan. 
Ambassador Braden was further directed to 
inform President Santos that the declaration 
of the Colombian Cabinet with respect to the 
wanton attack by Japan on the United States 
and the expression of determination of Colom- 
bia to assist by all possible means in the defense 
of the continent, are most heartening. 

Costa Rica 

There follows a translation of a telegram sent 
to President Rfmsevclt by President Guardia 
of Costa Rica on December 7, 1941 : 

"The treacherous attack of tho Japanese 
forces on the Hawaiian Islands and tlie declara- 
tion of war by Japan on your country has 
caused the greatest indignation among the Costa 
Rican people who are loyal to the engagements 
of continental solidarity and to the firm friend- 
ship which unites us with the Government and 
people of the United States. I send you my 



warm and cordial greeting in these moments of 
trial which are beginning for all of America, 
and I declare formally to you that Costa Rica 
will make its own the destiny of the United 
States, and will be with you to the end which 
will be the triumph of right and justice, of 
which Your Excellency is such an outstanding 
exponent." 

President Roosevelt replied to the above mes- 
sage by the following telegram sent on Decem- 
ber 10, 1941 : 

"I wish to convey to your Excellency my most 
sincere thanks for the kind message which you 
were so good as to send me regarding the treach- 
erous Japanese aggression against the United 
States. The assurances of Costa Rican support 
in these moments of trial and the devotion of 
Costa Rica to democracy and to the principle of 
continental solidarity shown by its declaration 
of war against Japan are most heartening. I 
welcome the association of Costa Rica with the 
United States in a struggle to maintain the prin- 
ciples which we both hold sacred. With most 
cordial greetings from your friend." 

In the presence of the American Minister and 
the British Charge d'Affaires, the Costa Rican 
Congress unanimously passed a resolution de- 
claring war on Japan on December 8, 1941. 

On December 8, 1941 the American Minister 
at San Jose was directed to express to the Presi- 
dent and to the Minister of Foreign Relations 
of Costa Rica the deep gratification of the Gov- 
ernment of the United States at the attitude 
assumed by the Costa Rican Government. 

On December 9, 1941 the Minister of Foreign 
Relations of Costa Rica sent the following tele- 
gram to Secretary Hull : 

"I have the honor to advise Your Excellency 
that because of unexpected and extraordinary 
aggression of which your country has been tlie 
object on the part of Japan wliile negotiations 
for peace were going on between the two nations 
and in accordance with the principles of soli- 
darity and defense of this hemisphere declared 
in various agreements [between the] American 
republics the Government of Costa Rica ex- 



DECEMBER 13, 1941 



491 



presses its sympathy to the Government and peo- 
ple of the United States and has today [Dec. 8] 
at eleven o'clock declared the state of war be- 
tween Costa Rica and Japan. On this occasion 
I take pleasure in renewing to Your Excellency 
the assurances of my sentiments of the highest 
and most distinguished consideration." 

On December 10, 1941 the American Minister 
at San Jose was directed to convey the following 
message from Secretary Hull to the Minister of 
Foreign Relations of Costa Rica : 

"I am deeply grateful for your heartening 
message announcing that Costa Rica has de- 
clared war on Japan as result of the Japanese 
aggression against the United States. This 
spontaneous act on the part of Costa Rica is a 
further token of the close friendship which 
unites our peoples and of the adherence of Costa 
Rica to the principle of hemispheric solidarity. 
Please accept the assurance of my highest and 
most distinguished consideration." 

The President of Costa Rica on December 11, 
1941 informed the American Minister at San 
Jose that he had on that day signed a decree 
declaring a state of war between Costa Rica and 
Germany and Italy. President Guardia stated 
further that their passports have been delivered 
to the Italian Minister and to the German 
Charge d'Affaires at San Jose. 

Cuba 

The Cuban Government considered the un- 
provoked attack by Japan on the United States 
as calling for an immediate declaration of war 
on the part of Cuba. The Cuban Minister of 
State informed our Ambassador at Habana that 
the Government of Cuba, because of its tradi- 
tional relations of close amity and cooperation 
with the United States, would proceed with the 
declaration of war even if it were not obligated 
to do so by existing inter- American agreements, 
particularly that of the Habana Conference. 

On December 8, 1941 President Batista of 
Cuba sent a telegram to President Roosevelt, a 
translation of which follows : 



"Before the infamous attack made by the Jap- 
anese armed forces on territory of the United 
States without previous notice and without prov- 
ocation during the time Your Excellency was 
endeavoring to obtain a peaceful solution of ex- 
isting problems, I have the honor to inform you 
of the most absolute solidarity of the people of 
Cuba with the people of the United States, as 
well as the decision of the Cuban people and its 
Government to extend its full cooperation to the 
United States in the present war. We consider 
that this aggression by a non-American state 
against the integrity and inviolability of an 
American state is such a case as is contemplated 
in declaration no. 15 of the Conference of 
Habana, by virtue of which all the nations of 
this continent should likewise consider them- 
selves attacked in the same way and should act 
jointly." 

On December 10, 1941 President Roosevelt re- 
plied to the above-quoted message with the fol- 
lowing telegram to President Batista of Cuba : 

"The Government and people of the United 
States are profoundly grateful to the Govern- 
ment and people of Cuba for their unqualified 
support in this critical hour, and I deeply ap- 
preciate Your Excellency's message expressing 
this solidarity. In view of the existence of the 
situation contemplated in declaration XV of the 
Habana meeting, the Secretary of State of the 
United States has today requested that the gov- 
erning board of the Pan American Union take 
steps to convene a third meeting of Ministers of 
Foreign Affairs of the American republics." 

Secretary Hull sent the following message to 
the Cuban Minister of State on December 9 : 

"The United States Government has noted 
with profound gratification the attitude of Pres- 
ident Batista and the Cuban Government to- 
ward the wanton Japanese aggression against 
the people and territory of the United States. 
No more solemn pledge of Cuba's common cause 
with the United States could be offered than the 
President's intention to ask the Cuban Congress 
for a declaration of war." 



431703 — 41- 



492 



DEPARTMENT OF STATE BtlLLETTN 



On the eveninfj of December 9 Cuba declared 
war on Japan by a unanimous vote of both 
houses of the Cuban Congress. 

On December 10, 1941, Cuban Minister of 
State Cortina sent the following telegram to 
Secretary Hull: 

"I have the honor to inform Your Excellency 
and your Government that yesterday the Re- 
public of Cuba declared war on Japan. I 
reiterate tlie testimony of my highest consid- 
eration." 

In reply to the above-quoted message. Secre- 
tary Hull transmitted the following telegram to 
Minister Cortina: 

'*I have the honor to acknowledge with 
deep gratification on behalf of my Govern- 
ment Your Excellency's message announcing the 
declaration of war by the Republic of Cuba on 
Japan, an action which is heartening and con- 
clusive demonstration of the resolution of Cuba 
to carry to victory the battle against the forces 
of ruthless aggression." 

The American Ambassador at Habana has 
reported that the Cuban Congress passed a 
declaration of war upon Germany and Italy 
during an evening session on December 11, 1941. 

Dominican Republic 

The Secretary of State has received the fol- 
lowing message from the Secretary of State for 
Foreign Relations of the Dominican Republic 
regardijig the declaration of war by that comi- 
try on Japan : 

"I have the honor to communicate to your 
Excellency that the Government of the Domin- 
ican R-'public, faithful to the noble principles 
which inspire its foreign policy, has declared 
war today [December 8] on the Empire of 
Japan, in order that it may be unified with the 
great American people in the defense of the 
sacred ideals of liberty and democracy which 
they so brilliantly support. I greet Your Ex- 
cellency with the highest consideration. 
Arturo Despradf.l 
Secretary of State 
for Foreign Relations" 



On December 8, 1941 the President of the 
Dominican Republic sent a telegram to Presi- 
dent Roosevelt, a translation of which follows : 

"I have the honor to inform Your Excellency 
that the Government of the Dominican Re- 
public, loyally interpreting the unanimous senti- 
ment of the nation, has resolved to express its 
solidarity in this historic moment with the noble 
people of the United States of America. The 
Dominican Government has today declared war 
on tlie Empire of Japan in order to contribute 
with all of its resources to the defense of the 
ideals of liberty and democracy which, for the 
benefit of humanity, are t-o gallantly sujiported 
by Your Excellency and the great American 
nation, and which are the same ideals which 
have underlain the foreign policy of the Domin- 
ican Republic during the last ten years. With 
the expressions of my most distinguished con- 
sideration." 

On December 10, 1941 President Roosevelt 
replied to the above telegram as follows: 

"I am most grateful for Your Excellency's 
message informing me of the positive action of 
the Dominican Republic in declaring war on 
the Imperial Government of Japan as evidence 
of full cooperation in support of the security 
and defense of this hemisphere. This announce- 
ment has brought deep gratification to the 
people of the United States and to their 
Government. 

"I offer Your Excellency and through you to 
the Government and the people of the Domini- 
can Republic the sincere appreciation of the 
Government and the people of the United States 
for the decision of the Dominican Republic to 
conti-ibute with all its resources to the defense 
of the ideals of freedom and democracy and to 
the benefit of humanity. 

"Please accept the assurances of my highest 
consideration and regard." 

The Minister for Foreign Affairs of the Do- 
minican Republic on December 11, 1941 in- 
formed the .\merican Minister at Ciudad Tru- 
jillo that immediately upon the receipt of news 
that the United States had declared a state of 



I 



DECEMBER 13, 1941 

war to exist -with Germany and Italy, the Do- 
minican Government would do likewise. He 
informed the American Minister later in the 
day, upon receiving news that the United 
States had declared war on Germany and Italy, 
that the Dominican Congress would declare a 
state of war to exist between the Dominican 
Republic and Germany and Italy during the 
morning of December 12 at the latest. 

Ecuador 

The Ecuadoran Government gave assurances 
to the American Minister on December 8, 1941 
that Ecuador is prepared to comply with all 
its duties of solidarity in defense of the con- 
tinent in accordance with the dispositions of the 
Pan-American conferences. 

On December 8, 1941 the American Minister 
at Quito, Ecuador, was directed to deliver to 
President Arroyo of Ecuador in behalf of Pres- 
ident Roosevelt a message expressing profound 
gratitude for President Arroyo's statement of 
solidarity with the United States at this time 
when the institutions of the entire Western 
Hemisphere are being attacked and that the 
United States is fully prepared to take any 
measures which may become necessary to pro- 
tect the interests of all the American republics. 

A translation of a telegram sent to President 
Roosevelt on December 9, 1941 by President 
Arroyo del Rio of Ecuador follows: 

"I repeat to Your Excellency the expression 
of sympathy and adherence to the people and 
Government of the United States which I ex- 
pressed to His Excellency Minister Long as 
soon as he was good enough to inform me of 
the aggression suffered by the great country 
over which Your Excellency presides, as well 
as the declarations made by the Ecuadoran 
Chancelry and those which Ambassador Alfaro 
made to the Department of State. Ecuador, 
which feels Pan Americanism deeply and sin- 
cerely, which desires that it be a reality, and 
which has given repeated proofs of respect for 
its word, is firmly determined to do its duty, 
to make effective once again its purposes of 
continental solidarity and to support the de- 



493 

fense of America and the execution of its 
treaties and declarations. I renew to Your 
Excellency the assurances of my distinguished 
consideration." 

On December 11, 1941 President Roosevelt 
sent the following telegram to President Arroyo 
del Rio of Ecuador : 

"I have received your telegram of December 9 
in which you sympathetically express the ad- 
herence of Ecuador to the people and Govern- 
ment of the United States during this difficult 
period in which the institutions and traditions 
of the Western Hemisphere are under attack. 
I am well aware of the many evidences of Ecua- 
dor's determination to abide by its commitments 
in favor of a strengthened solidarity between 
the American republics. It is this community of 
purpose which will prove one of the strongest 
pillars in the defense of our liberties. I renew 
to Your Excellency the assurances of my distin- 
guislied consideration." 

EI Salvador 

The following message was sent by President 
Martinez of El Salvador to President Roosevelt 
on December 8 : 

"The Japanese attack on Hawaii and Manila 
is considered by me contrary to the principle of 
law and treatment which is due a country with 
which Japan was at peace and is absolutely un- 
justified. Tlie unusual case will be studied by 
the National Assembly which is meeting today 
and war will be declared on the aggressor 
nation." 

At 1 p. m. on December 8, 1941 the National 
Legislative Assembly unanimously declared El 
Salvador in a state of war with Japan and au- 
thorized the Executive power to take similar 
measures against any other non-American pow- 
ers which may commit acts of aggression against 
American countries. On December 9, 1941 the 
American Minister in San Salvador was directed 
to convey to the President and Minister of 
Foreign Affairs of El Salvador the deep gratifi- 
cation of President Roosevelt and the Govern- 
ment of the United States at the attitude as- 



494 



DEPARTMENT OF STATE BULLETEN 



sumcd by President Martinez and the Govern- 
ment of El Salvador, as a result of Japan's 
unjustified aggression against the United 
States, and in conformity with the principles of 
continental cooperation and solidarity. 

On December 10, 1941 President Roosevelt 
sent the following telegram to President Mar- 
tinez of El Salvador: 

"Your Excellency's message is a most heart- 
ening token of the friendship which unites our 
peoples and of mutual devotion to the principles 
of law and hemispheric solidarity. The people 
of the United States welcome El Salvador as an 
associate in the struggle against aggression and 
in favor of those principles which we both up- 
hold. With most cordial greetings from your 
friend." 

The American Minister at San Salvador re- 
ported on December 13, 1941 that the Salva- 
doran Legislative Assembly on that day unani- 
mously declared a state of war to exist between 
El Salvador and Germany and Italy. 

The Minister of Foreign Affairs of El Salva- 
dor addressed a telegram to Secretary Hull on 
December 13, 1941, a translation of which 
follows : 

"I have the honor to inform Your Excellency 
that the National Legislative Assembly at the 
request of the Executive power today declared 
the Republic of El Salvador in a state of war 
with Germany and Italy as a new demonstra- 
tion of solidarity with the Government of the 
United States of America. I reiterate to Your 
Excellency my highest consideration." 

Guatemala 

On December 7, 1941 President Ubico of 
Guatemala sent President Roosevelt a telegram 
which reads as follows, in translation : 

"On the occasion of the surprise attack by 
Japan, I confirm to Your Excellency the senti- 
ments of solidarity of the Government and peo- 
ple of Guatemala. Your devoted friend." 



On December 10, 1941 President Roosevelt 
sent the following telegram to President Ubico : 

"I am most grateful for your heartening mes- 
sage of support and for your assurances of the 
solidarity of the government and people of 
Guatemala with the United States in connection 
with Japan's aggression. I am also happy 
through Your Excellency to welcome Guate- 
mala as an associate in the struggle to maintain 
the principles which we uphold in common. 
With most cordial greetings from 3'our friend." 

On December 8, 1941 at a special session of the 
National Assembly, the Republic of Guatemala 
declared war on Japan. 

On December 9, 1941 Minister of Foreign 
Affairs Salazar, of Guatemala, sent a telegram 
to Secretary Hull, a translation of which 
follows : 

"It gives me pleasure to advise Your Excel- 
lency that Legislative Assembly of this Repub- 
lic last night declared a state of war between 
Guatemala and Japan, thus expressing solidar- 
ity of Guatemalan Government and people with 
the United States of America with which in- 
destructible bonds of loyal friendship unite 
Guatemala. I renew to Your Excellency assur- 
ances of high and particular consideration." 

On December 10, 1941 Secretary Hull sent 
the following message to the Guatemalan Minis- 
ter of Foreign Affairs : 

"I profoundly appreciate your heartening 
message informing me that the Guatemalan 
Government had convoked the National Legis- 
lative Assembly on December 8 with a view to 
declaring war on Japan as a result of that na- 
tion's aggression against the United States. I 
have also been most gratified to learn that 
Guatemala subsequently declared war on Japan. 

"The action of Guatemala is a signal token of 
the close friendship which unites our nations 
and of the devotion of Guatemala to the prin- 
ciple of hemispheric defense against extra-con- 
tinental aggression. Please accept the renewed 
assurances of my highest consideration." 



DECEMBER 13, 1941 

The American Charge d'AflFaires at Guate- 
mala City on December 11, 1941 informed the 
Foreign Minister of Guatemala that the Gov- 
ernments of Germany and Italy had notified the 
Government of the United States that a state 
of war exists between their countries and the 
United States. The Foreign Minister replied 
that the National Assembly of Guatemala would 
meet at once to declare Guatemala in a state of 
war with Germany and Italy. At 7 : 45 the eve- 
ning of December 11 the National Assembly 
met and, by a unanimous vote, declared war on 
Germany and Italy. 

The Minister of Foreign Affairs of Guate- 
mala on December 12, 1941 sent a telegram to 
Secretary Hull, a translation of which f oIIoavs : 

"I have the honor to advise Your Excellency 
that yesterday the Legislative Assembly issued 
Decree no. 2564 which declares the existence of 
the state of war between Guatemala and the 
German Reich and the Kingdom of Italy in 
conformity with the policy of American soli- 
darity which inspires the Government of the 
Eepublic and its spirit of loyal friendship and 
cooperation with the United States of America. 
I avail myself of the opportunity to repeat to 
Your Excellency the assurance of my sentiments 
of the highest consideration." 

Haiti 

On December 7, 1941 President Lescot of 
Haiti requested the American Charge d'Affaires 
at Port-au-Prince to convey the following mes- 
sage to President Roosevelt, which reads in 
translation : 

"The Haitian Government and people pro- 
foundly indignant by the cowardly Japanese 
aggression of which American possessions have 
been the victims request you to consider that 
the Republic of Haiti is completely united with 
the United States in this conjuncture. If for 
military needs any part of Haitian territory 
should be necessary for American forces the 
Haitian Government offers once again to the 
Government of the United States its entire 
cooperation and will receive with enthusiasm 



495 

any suggestion or request that it might wish to 
make." 

On December 8, 1941 President Roosevelt 
transmitted the following message to President 
Lescot : 

"I am heartened at this tragic hour to receive 
the generous offer which Your Excellency has 
made on behalf of Haiti. This latest manifesta- 
tion of the unfailing adherence of the Haitian 
state to the principles of hemispheric solidar- 
ity and joint defense is deeply and sincerely 
appreciated." 

President Lescot of the Republic of Haiti 
declared war on Japan on December 8 with the 
unanimous approval of the National Assembly. 

It has been declared that a state of siege exists, 
and people have been warned that any saboteur 
will be tried by court-martial and executed. 

On December 9, 1941 the Minister of Foreign 
Affairs of Haiti presented to the American 
Charge d'Affaires at Port-au-Prince a com- 
munication from which the following is quoted, 
in translation : 

"In view of the unjustifiable aggression of the 
Japanese Government against American posses- 
sions in the Pacific the Republic of Haiti, faith- 
ful to its policy of friendship and complete 
understanding with the United States of 
America and in accord with the Pan-American 
doctrines of continental solidarity, has placed 
itself alongside of the sister republic in de- 
claring war against the Japanese Empire." 
Prince reported that the Republic of Haiti de- 
clared war on Germany and Italy on December 

The American Charge d'Affaires at Port-au- 
12, 1941. 

Honduras 

President Carias of Honduras on December 
7, 1941 sent to President Roosevelt the follow- 
ing message, which reads in translation : 

"I have just at this moment learned, by radio, 
of the Japanese aggression against American 
possessions in the Pacific. In the presence of 
such an extraordinary act I express to Your 



496 



DEPARTMENT OF STATE BULLETIN 



Excellency all the sympathy and solidarity of 
the Honduran people and of the Government 
which I head and formulate ardent wishes for 
the triumph of the United States in this con- 
flict provoked by the totalitarians." 

The text of a telegram received by the Sec- 
retary of State from the American Minister in 
Tegucigalpa, Honduras, on December 8, 1941, 
follows : 

"Honduran Congress declared war on Japan 
at 11 : 25 this morning. 

Erwin" 

On December 9, 1941 the American Minister 
at Tegucigalpa was directed by Secretary Hull 
to express to the Honduran Governnipnt the 
deep gratification of the Government of the 
United States at the striking example of inter- 
American solidarity shown by Honduras in de- 
claring war upon Japan in view of the Japanese 
aggression against the United States. 

The Honduran Minister of Foreign Affairs 
on December 9, 1941 informed the American 
Minister at Tegucigalpa, in behalf of President 
Carias, that the United States Government may 
use any facilities on the Atlantic Coast as well 
as Fonseca Bay and also use these waters for 
naval bases or any other purposes. 

On December 10, 1941 the American Minister 
at Tegucigalpa was directed to convey the fol- 
lowing message from Secretary Hull to the 
Honduran Minister of Foreign Affairs: 

"I have received your heartening message and 
wish to express to you my profound apprecia- 
tion of the action of your Government in de- 
claring war against Japan as a result of the 
Japanese aggression against this country. The 
action of Your Excellency's Government is a 
signal examjile not only of tlie pradioal applica- 
tion of the principle of American solidarity and 
security, but also of the friendship of the 
Honduran people for the United States." 

On December 11, 1941 President Roosevelt 
transmitted the following message to President 
Carias: 

"I am deeply appreciative of your kind mes- 
sage regarding the treacherous Japanese ag- 



gression against American territory. The 
sympathy and solidarity which you express and 
which have been so signally confirmed by Hon- 
duras in its subsequent declaration of war 
against the aggressor have been a most hearten- 
ing token of the friendship of the Honduran 
people at the present historic moment. With 
most cordial good wishes from your friend." 

The American Minister at Tegucigalpa re- 
ported that the Honduran Congress unani- 
mously and by acclamation declared war on 
Germany and Italy at 10:45 a. m. December 
12, 1941. 

Mexico 

The text of a declaration issued by the Mexi- 
can Government to the Mexican press on Decem- 
ber 7 follows : 

"Without a previous declaration of war and 
exactly at the same time as a Special Ambassa- 
dor of Japan was in Washington carrying out 
diplomatic conversations with the high Ameri- 
can authorities of the Department of State, the 
Japanese forces started bombarding Manila and 
the Hawaiian Islands, attacking, in its posses- 
sions, the United States of America, and thus 
obligating themselves, before history, with all 
the responsibility of those events which are com- 
ing and which will, unfortunately, spread that 
conflagration which is afflicting humanity. 

"The Government of Mexico, which, from the 
beginning of the present struggle, defined, with 
full energy, the spirit of positive solidarity 
which joins it to the other governments of the 
Continent, has learned with the deepest emotion 
of these deeds constituting a new violation of 
the fundamental principles of the rights of man- 
kind committed by one of the powers grouped 
together with the totalitarian dictatorships 
against the democracies of the world. With 
that solemnity which is appropriate to the seri- 
ousness of the circumstances, Mexico declares 
that its conduct will inflexibly follow the postu- 
lates of justice and of honor which it has, until 
toda}% maintained without hesitation. In the 
premises, it believes it appropriate to recall that, 
in accordance with the resolutions adopted in 



DECEMBER 13, 1941 



497 



the meeting of Foreign Ministers at Habana, 
in 1940, one of these postulates is the fact that 
any aggression against any nation of this hem- 
isphere will be considered by our country as 
an aggression against our own sovereignty. An- 
other of these postulates was definitely estab- 
lished in the note that our Chancery addressed, 
on July 8 of this year, to the Uruguayan Chan- 
cery advising it of the decision of the Govern- 
ment of Mexico that it would not consider as 
a belligerent any American Republic that, in 
defense of its rights finds itself in a state of 
war with countries of other continents. The 
foregoing principles are solidly rooted in the 
public conscience of Mexico and are the direct 
consequence of the position that we have as- 
sumed in condemning all aggressions and in 
invariably raising our voice against any act 
implying the intention of placing the contin- 
gencies of war ahead of the solutions of justice. 
Our past is the best guarantee of our future. 
Associated with the United States in the com- 
mon defense of democracy and of the destiny 
of America, we will omit no effort, by all possi- 
ble means, to establish our spirit of solidarity 
and of close friendship. In this hour, of the 
greatest importance, the Government is con- 
vinced that the opinion which it expresses is 
that of all Mexicans and it has the absolute cer- 
tainty that, irrespective of the results, the na- 
tion will carry out unanimously a decision which 
is in full accord with the continuity of its tradi- 
tions and with the dignity of our future." 

On December 8 the Minister of Foreign Af- 
fairs of Mexico issued the following declara- 
tion: 

"On repeated occasions the Government of 
Mexico has made public its intention of main- 
taining the unbreakable solidarity which in- 
spires the foreign policy of our country in rela- 
tion to the other nations of this Continent. In 
conformity with this attitude, Mexico — during 
the Meeting of Chancellors celebrated in 
Havana in 1940 — agreed to consider as an act 
of aggression against herself, any attempt of 
any non-American State in violation of the fun- 
damental rights of any of the Republics of this 
Hemisphere. 



"The Government of Mexico, which has in- 
variably stood for absolute respect for volun- 
tarily contracted international obligations, can- 
not but consider — as a natural consequence of 
the cited agreement — that the maintenance of 
diplomatic relations with Japan are incom- 
patible with the act of aggression which that 
country committed against the United States 
of America. 

"In virtue thereof, instructions have been 
given to our Minister in Tokio to the effect that, 
after due notice of the reasons, to the authori- 
ties before whom he is accredited, he proceed 
to close the Legation and the Consulate in 
Yokohama. 

"The above mentioned decision has been 
communicated to the Minister of Japan in this 
capital with the same end in view; the provi- 
sional authorization conceded to the Consular 
Agents of said Empire in the Republic of Mex- 
ico having been cancelled from this date." 

On December 9 the American Embassy in 
Mexico City was instructed to inform the For- 
eign Minister of Mexico as follows : 

"Please inform the Foreign Minister that this 
Government regards this further action by the 
Mexican Government as a most decisive step in 
continental solidarity and therefore in assuring 
the success of our common cause." 

With reference to the declaration issued by 
the Mexican Government, Secretary of State 
Hull sent the following instruction to the Amer- 
ican Embassy in Mexico : 

"Please state to the Foreign Minister that this 
Government is deeply gratified to learn of this 
very strong reaflBrmation of solidarity by the 
Mexican Government, which is most heartening 
in these critical hours." 

The Minister of Foreign Affairs of Mexico 
on December 10, 1941 addressed a telegram to 
Secretary Hull, a translation of which follows : 

"In accordance with the spirit of the resolu- 
tions adopted at the Second Consultative Meet- 
ing held at Habana in July 1940, I have the 
honor to inform Your Excellency that the Gov- 
ernment of Mexico yesterday broke its diplo- 



498 



DEPARTMENT OF STATE BULLETm 



matic and consular relations with Japan, in 
view of tlie aggression committed by the latter 
against the United States of America. I re- 
new to Your Excellency the assurances of my 
highest consideration." 

In response to the above message, Secretary 
Hull on December 11, 1941 transmitted the fol- 
lowing message to the Minister of Foreign 
Affairs of Mexico: 

"I have the honor to acknowledge with the 
most sincere appreciation Your Excellency's 
telegram regarding the action of the Mexican 
Government in breaking diplomatic and con- 
sular relations with Japan as a result of that 
nation's aggression against the United States. 

"I have previously requested our Embassy in 
Mexico City to state to Your Excellency that 
this Government regards this further action of 
the Mexican Government as a most important 
step in continental solidarity and therefore in 
assuring the success of our common cause. I 
welcome this further opportunity to express the 
profound gratification of this Government and 
of our people that the Mexican Government has 
taken such prompt and decisive action in the 
face of the intolerable Japanese aggression. 

"Accept, Excellency, the renewed assurances 
of my highest consideration." 

The American Charge d'Affaires at Mexico 
City reported on December 11, 1941 that the 
Mexican Minister of Foreign Affairs had in- 
formed the German and Italian Ministers of 
the rupture in relations between Mexico and 
their respective governments. In a statement 
issued to the pre.ss immediately thereafter he 
said in part : "The Governments of Germany 
and Italy, prosecuting the policy of aggi-ession 
which for years they have followed against the 
democracies of the world have declared war on 
the United States." The Minister then re- 
ferred to the Me