(navigation image)
Home American Libraries | Canadian Libraries | Universal Library | Community Texts | Project Gutenberg | Children's Library | Biodiversity Heritage Library | Additional Collections
Search: Advanced Search
Anonymous User (login or join us)
Upload
See other formats

Full text of "Department of State bulletin"

Il 


IK 



■', Tf«£^ 




:■■>';■. 


', ' ' 


m 


1 


p 



t 



■Dt: 



iiv^lA^ 



"^ 




.\\\ 



^'Uv\ 



Ont 



0|\^lo 



_;>©—, 



Given By 
U. S. SUPT. OF DOCUMENTS 



3^ 



THE DEPARTMENT OF STATE 




VOL. XIV, NO. 35S 



APRIL 7. 1946 



The Problem of German Political Revival 

Article by LEON W. FULLER page 547 

The American Trade Proposals: Proposals Concerning 
Employment 

Article hy ELLSWORTH H. PLANK and MAURICE J. ERICKSON . page 561 

The American Press Associations 

By ASSISTANT SECRETARY BENTON page 574 

A Report on the International Control of Atomic 

Energy page 553 



VVeNT o^ 



For complete contents 
see inside cover 




"-*TES O^ 



THE DEPARTMENT OF STATE 



BULLETIN 



VoL.XIV-No 353* 




UBI.ICATION 2506 



April 7, 1946 



For Bale by the Superintentlent of Docurnente 

U. S. Government Printing Office 

Washington 25, D. C. 

SuBscniPTioN: 

52 isBuee, §3.50; single copy, 10 cents 

Special offer: 13 weeks for $1.00 
(renewable only on yearly basis) 



The Department of State BULLETIN, 
a weekly publication compiled and 
edited in the Division of Research anil 
Publication, Office of Public Affairs, 
provides the public and interested 
agencies of the Goternnienl icith 
information on developments in the 
field of foreign relations and on the 
work of the Department of State and 
the Foieign Service. The BULLETIN 
includes press releases on foreign 
policy issued by the W hite House and 
the Department, and statements and 
addresses made by the President and 
by the Secretary of State and other 
officers of the Department, as well as 
special articles on various phases of 
in ternational affairs and thefunctions 
of the Department. Information con- 
cerning treaties and international 
agreements to which the United States 
is or may become a parly and treaties 
of general international interest is 
included. 

Publications of the Department, cu- 
mulative lists of which are published 
at the end of each quarter, as well as 
legislative material in thefieldofin ter- 
national relations, are listed currently. 






The Problem of German Political Revival. Page 

Article by Leon W. Fuller 547 

A Report on the International Control of Atomic Energy: 

Foreword by the Secretary of State 553 

The Committee's Letter of Transmittal 553 

Excerpts From the Text of the Report ; 555 

Postponement of Atomic-Bomb Tests 560 

Appointment of Civilian Committee on Atomic-Bomb Tests . 560 
The American Trade Proposals: Proposals Concerning Em- 
ployment. 

Article by Ellsworth H. Plank and Maurice J. Erickson . . 561 

International Organizations and Conferences 

Calendar of Meetings 565 

Activities and Developments 566 

The United Nations 

Meeting of the Security Council. Messages from President 

Truman and the Secretary of State .567 

Discussion of Soviet-Iranian Matters: 

Remarks by Ambassador Gromyko 568 

Remarks by the Secretary of State 570 

Remarks by the Secretary of State During Discussion on 

Motions 571 

Confirmation of John G. Winant ; . . 573 

The Record of the Week 

The American Press Associations: An Opportunity and 

Responsibility. By Assistant Secretary Benton .... 574 
Enforcement Program Against Dealing With Persons and 

Firms on Proclaimed List 579 

*Amendments to U.S.-U.K. Patent Interchange Agreement . 579 
*U.S.-U.K. Agreements on Lend-Leaso, Reciprocal Aid, and 

Surplus War Property 580 

Can Japan Become a Democracy 581 

U.S. Supports Italy's Entrance Into World Fund and Bank . 581 

♦Customs: Brazil-Venezuela 581 

The Greek Elections 582 

*Air Services Agreement Between U. K. and Greece .... 582 

*Air Transport Agreements: 

Agreement Between U.S. and Greece 583 

Agreement Between L^S. and France 583 

*Final Act of the Civil Aviation Conference 584 

The Congress .' 596 

• Treaty information. 



The Problem of German Political Revival 



Article by LEON W. FULLER 



SINCE tile eml of tlie war witli Germany nearly 
a year aj^o, the concern of the Allied govern- 
ments over the political status of the defeated 
nation has steadily increased. Owing to the ir- 
rational and last-ditch resistance of the Nazi 
regime, the war resulted in the total disintegration 
of Germany's political structure and left the vic- 
tors in full possession of a nation without a gov- 
ernment or any vestige of organized political 
life. The Allies were thus confronted with the 
twofold task of destroying the remnants of the 
Nazi-militarist system and of assuring the de- 
velopment of a regime of peaceful and democratic 
character in its place. 

The positive political objective of the United 
States and its major associates for Germany is 
(as stated in JCS 1067 ^ and the Potsdam agree- 
ment of August 2, 19452) ^Q gi^g j]-jg German 
people opportunity for the reconstruction of their 
political life on a peaceful and democratic basis. 
This will involve the complete eradication of the 
Nazi Party, institutions, creed, and influence and 
the gradual reorganization of a decentralized 
political structure grounded on local autonomy 
and responsibility. Representative and elective 
principles are to be introduced into local, regional, 
and State administration. No central government 
is planned for the near future but certain central 
administrative departments governing finance, 
economy, and transport are to be set up under 
the direction of the Control Council. Democratic 
political parties are to be allowed and encouraged 
throughout Germany. 

The reactivation and reformation of the politi- 
cal life of any defeated nation by the victors would 
be a task of immense difficulty; it is all the more 
formidable in dealing with a people of advanced 
cultural development and strong nationalist senti- 
ments. The complete collapse of the Nazi totali- 



tarian state has left a heritage of political bank- 
ruptcy, all the more complete because of the sys- 
tematic liquidation by the Nazis during their 12 
years of power of the progressive political forces 
within Germany. Survivors of this process are 
mainly in the advanced-age groups; many of them 
have little to oiler except a return to the system 
which proved inadequate to stem the Nazi tide. 
Youth and early-middle-age groups have been 
subject to miseducation which has either perverted 
their political concepts or, with the Nazi debacle, 
left them disillusioned and apathetic. Adult Ger- 
mans now have the vivid recollection of the failure 
of three successive regimes of different character — 
imperial, republican, and Nazi — and there is a gen- 
eral disinclination to undertake further political 
ventures. 

German historic development has not been such 
as to foster constructive political habits. There is 
no long tradition of local self-government or in- 
dividualistic self-reliance, as in Britain or Amer- 
ica. Germany has not, in modern times, experi- 
enced a genuine political revolution which might 
have shaken oil the hold of the traditional ruling 
class upon the institutional and ethical pattern of 
the state. The dynastic heritage, although dis- 
credited in 1918, was merely supplanted by the 
equally sinister inheritance of the military caste 
and its Junker and plutocratic associates. There 
has not even been a genuine democratic interlude. 
The Nazi triumph was rather a reaction than a 
revolution and sundered Germany still further 
from the enlightened thought of the West, it in- 
tensified certain anachronisms in German politi- 

Mr. Fuller is a Country Siieclalist in the Division of 
Central European Affairs, Oliice of European Affairs, De- 
partment of State. 

'.Bulletin of Oct. 7, 1945, p. 515. and Oct. 21, 1945, 
p. 596. 
^Bulletin of Aiig. 5, 1945, p. 153. 



547 



548 



DEPARTMENT OF STATE BlLLKTl\ 



cal tliiiikiiij.; : the t'ciiiUili^tic loyalty of the Mii)- 
ject to liis ruler, the sense of duty and iiiii|uestioii- 
iuK obedience, the notion of tribal-national supe- 
riority, and veiu'ration f:)r the state as a supra- 
moral instriMueul of power. 

In the political void of present-day Germany 
there is an innninent daneer of the revival of anti- 
democratic and nationalistic attitudes, partly as 
a natural reaction a<iainst the occupation, but in 
laiye measure due to the alwence of any stroiig lib- 
eral tradition. iMany (iermans instinctively dis- 
claim res])()usibility for the misdeeds of the Nazi 
rejiime. havinii never accepted ur even yrasped the 
truism that a nation generally gets the kind of 
goveinment it deserves. Even "democratic" Ger- 
mans are inclined to seek salvation in new leaders 
and a strong government rather than in the slower 
evolution of demot-ratic proce.sses. It is significant 
that (iermans condenni the war-crimes defend- 
ants at Niirnberg less for their offenses against 
other peoples and against Innnanity than fiu' their 
having letl the (lerman pe<iple to disaster. The 
reopening of the universities has been the occasion 
for nnmei'ous nationalistic denu)nstrations. led by 
the deeply indoctrinated ex-members of the Hitler 
Youth and of the army. Denazification procedures 
give rise to an ever-increasing gioup of 'Me- 
classed" persons who form a disaffected bloc. 
Thei'e are many persons — older officials, intellectu- 
als, business and professicmal groups, churchmen — 
for whom status and prestige have always been 
associated with an authoiitarian regime. They 
do not become ready converts to democracy. Even 
the new parties aiul trade-union organizations 
tenil to follow authoritarian patterns; the leaders 
and the hierarchy of officialdom tend to outweigh 
the autonomous role of the individual member. 

The democratization of Germany is further 
complicated by the zonal divisions, in each of 
which the occu])ying power is virtually sovereign. 
In spite of tripartite agreement at Potsdam on 
basic principles and some measure of four-power 
coordination of political policies for Gernniny. 
there are marked differences in the policies now- 
being pursued in the various zones. A decision 
as to whether a unitary Gennan government will 
be permitted to emeige. or whether a drastic de- 
centralization will be imposed, waits upon an ad- 
justment of the s|)ecial interests of the occupying 
powers in Germany and the course of German po- 
litical i-evi\al within the /.<(nes. .Vs after World 



War I. separatist movements hii\t' appeared in 
some strength, notably in the west and south, lait 
these seem uidikely to conunand any considerable 
popular following, (xerniany, at the j)resent stage, 
seems most likely to develop as a federal union, 
shorn of substantial border ai'eas, without the 
hegemony of Pri\ssia. which has been dissolved into 
its components by the coui'se of events, and with a 
centi'al regime strong enough to achieve only a 
miniuuun coordination of the states along eco- 
nomic lines. 

I'ndeiiying the problem is always the economic 
dilenuua. (iei'many is of necessity on restricted 
rations because of her general economic collapse 
and the prevalent world food shortage. Her 
economic situation is further complicated by Allied 
demilitarization and repai-ations policies which 
call for destruction or removal of s[)ecified in- 
dustrial ('([uipment and limit future production in 
various fields. In atldition. there is the war- 
wiought destruction of industrial establishments 
and of ti-ansport to ctinsider. Political revival 
must occur, then, amid exceedingly trying eco- 
nomic circumstances which may prove unfavor- 
able to the inculcation of democratic ideas and 
may incline (jermans again to seek recoui-se to 
anthoritai'ian govermnent as a ])anacea for 
economic ills. 

American jiolicy has recognized the fact that 
political reconstruction in Germany cannot con- 
sist in the restoration of any earlier regime or of 
preexisting forms or modes of ]5olitical behavior. 
since even the ])artial denuR'racy of the AVeinuir 
republic never struck deep roots in (ierman con- 
.sciousness. As yet few constructive political ideas 
have emerged from the general chaos. Hence, it is 
the aim of this Government to facilitate and en- 
courage the indigenous revival of sound political 
elements within the population in such nnmner as 
to establish the foundations of a free and demo- 
cratic political life, while eradicating those nox- 
ious forces of militarism and reaction which have 
so often in the ]iast nnule Germany a menace to 
the woild. It is considered that this can best be 
done by permitting the (irennans to gain experi 
ence in the conduct of local affairs — local govern- 
ment, trade unions, church organizations, schools, 
the press — and gradually to build upon the ex- 
perience thus gained to assiime authority and 
responsibility at higher levels. 

This ■'orass-roots" approach is considered sound 



.41' HI I. 7, 1946 



549 



Ix'cniise of (ji'iiiKin liick oi experience in self-gOA'- 
ernnu'iit at any level higher than the local com- 
nuniity and hecause it will tend to accustom the 
Geinians to the exercise of authority combined 
with assuin])tion of responsibility by the [)e<)ple 
<lirectly at local functional levels, and thus coun- 
teract the traditional acceptance of authority im- 
posed from above by a hierarchy of leaders and 
officials. It is also in accord with the requirement 
that Gei'inany be decentralized sufficiently to avoid 
any dangerous concentration of jiolitical or eco- 
nomic power in the future. It will })ermit a natu- 
ral de\'elopnient of indigenous political life under 
Allied tutelage but without superinijiosing an alien 
pattern of government unsuited to the (iermans. 
Nor will it dictate the kind of economic system 
wliich nnist emerge. 

In the United States zone, reactivation of politi- 
cal life has progressed by stages. During the early 
months of occupation, security reasons dictated 
rigorous restraints upon freedom of speech and of 
the press, assembly, party, and trade-union ac- 
tivity. These restraints were relaxed in August 
1945, and thenceforth party organization and 
activity on a local basis was authorized. Trade 
unions and shop councils were permitted on the 
basis of free elections. Local German adminis- 
trative agencies {Kreis, Geineinde), purged of 
active Nazis or Nazi sympathizers, were reconsti- 
tuted. As conditions of the occupation became 
more stable, Gernum administration was created 
at the district (Rt'fileningshezirl') and state 
{Liiii(l) levels. All German officials were ap- 
pointed by the Allied Military (iovernnient after 
screening to insure their political reliability. Ger- 
mans exercised, as yet. no popular control, but 
representative individuals were often consulted in 
an advisory capacity. 

By September a German Land administration 
hatl been appointed for Bavaria; subse((uently. 
North Wiirttemberg-Baden was given a Land or- 
ganization, and the foi'uier Lund of Hesse and 
pro\ince of Hesse-Nassau were combined in a new 
Linid of Greater Hesse. There is no central zonal 
administration. Policy aims at Keich dec'entrali- 
zation by centering German control in substantial 
units, identical in whole or in part with former 
German L.dndcv or formed by amalgamation of 
smaller states or provinces. The three new Ldiulcr 
have developed a considerable degree of autonomy 



but in strict subordination to the supeivision and 
direction of military govermnent. 

In October there ^vas created a Council of Min- 
isters president of the three LMnder, meeting 
monthl}' and with a permanent secretariat located 
at Stuttgart. The Council lias been ett'ective in 
coordinating policies especially in economic mat- 
ters. It operates in close conjunction with re- 
gional military-government othcials. The scope of 
its work has steadily enlarged and it has been 
connnended for its work by Generals McNarney 
and Clay. It has lately become at times an agency 
of collaboration between Geruum officials of both 
the United States and British zones. 

Although in Nt)yember parties were authorized 
on a state-wide basis, formal party organizations 
in the T''nited States zone have remained local 
for the most part. Yet here, as in the other zones. 
a fairly definite pattern of i)arty activity has 
!2radually emerged. Disregaiding the jnany 
"splinter" groups, langing from Monarcjiist- 
clerical to Leftist-radical in nature, there may 
be noted four principal parties in the new Ger- 
many. They are : 

/. The Communist Party 

Conmumists, while not niunerous, are aggres- 
sive and closely organized. Particularly in Ber- 
lin and the Soviet zone they exercise influential 
leadership, backed not always covertly by the 
Soviet authorities. They promote a Soviet- 
inspired program of radical socio-economic re- 
form, involving the eradication of the old Junker, 
militarist, and industrial ruling elements, land 
reform in the interest of the snuill peasants, and 
socialization of wide sectors of the economy. 
They emerged from the underground resistance 
and seek to keep alive the "anti-Fascisf tradition 
of solidarity of all democratic and worker groups. 
In the east they tend to dominate the four-party 
bloc; in all areas they now urge fusion with the 
Socialists in a unitied workers' party. Their chief 
strength resides in lu'ban labor and they have won 
control of numy trade unions and shop councils, 
the latter a convenient device for gaining control 
over industrial establishments. Their leaders are 
often youthful and energetic. They seek to foster 
the political education of the masses and view 
themselves as the jiarty of the future. Their ulti- 
mate goal is the conquest of political and economic 
powei' by the masses. 



550 



DEPARTMENT OF STATE BULLETIN 



2. The Socialist Party 

The Socialists, heirs of the former Social Dem- 
ocratic Party, adliere to tlie orthodox pre-Hitler 
pro^-am of gradualism but share the Marxist 
objectives of the Communists. They represent 
the more conservative wing of labor; their lead- 
ers are largely veteran party or trade-union offi- 
cials. They favor collaboration with the Com- 
munists for conunon ends but, at least in the west- 
ern zones, prefer to retain their separate party 
identity ; in the Soviet zone it seems probable that 
fusion with the Communists in a United Socialist 
Party will soon be effected. Socialists generally 
might be induced to accept a merger if effected 
on a nation-wide basis, hoping, because of their 
luimerical superiority, to control a national union 
of the two workers' groups. They advance a pi-o- 
gram of agrarian reform and socialization liut 
are insistent that reform be achieved through 
democratic processes. They are less intransigent 
than the Coiumunists toward bourgeois gi'DUjiS. 
with whom they cooperate closely in western and 
soutliern Germany. 

3. The Christian Democratic (or Social) Union 

The CDU (CSU in Bavaria) embraces largely 
the following of the former Catholic Center and 
Bavarian People's Parties but is seeking a 
broader, non-sectarian basis, with some appeal to 
worker grouj)s. Its chief support is from middle- 
class, clerical, and peasant elements and. to some 
degree, from moderate labor groups. Leadership 
is conservative and stresses German revival on 
the basis of Christian individualism and morality. 
It opposes complete socialization but would ac- 
cept a limited program of state ownership and 
conti'ol of certain sectors of economic life which 
are clearly in the public interest. Business ele- 
ments lend some support, although fearful of so- 
cializing tendencies. In Bavaria the CSU is di- 
vided into a Eight ^^•ing (headed by Schaeffer, 
former Minister President under military gov- 
ernment) and a Left wing under Mueller. In the 
Soviet zone the CDU has had difficulty with the 
Soviet authorities, mainly because of its lack of 
enthusiasm for land reform and other radical 
proposals. 

4. The Liberal Democratic Party 

This is the most conservative group, weak nu- 
merically and in influence, and represents mainly 



the business and propertied classes. It attracts 
the following of the former Democratic and Ger- 
man People's Parties. It seeks to defend property 
and private enterprise against the Leftist groups. 
It favors restoration of a strong state authority 
and a non-partisan professional bureaucracy. 
This group seems to have become to some degree 
a refuge for surviving bourgeois-nationalist 
forces. 

The Potsdam agreement of August 2. 1945 pre- 
scribed the early restoration of local self-govern- 
ment "on democratic principles and in particular 
through elective councils". American authorities 
took the initiative in this matter and scheduled 
local elections in their zone (in communities un- 
der 20,000 population) for January 20 and 27, 
1940. Against the advice of most German politi- 
cal leaders and in the face of wide-spread popular 
apathy, elections were held for town councilors 
in the smaller Gcmeincloi and for mayors in some 
communities. Although party organization, espe- 
ciallv in the rural areas, was very incomplete and 
only on a local basis and no clear-cut partisan is- 
sues were involved, the results do give a clue to 
party preference in the areas concerned. The per- 
centage of qualified voters (active Nazis and their 
sympathizers were excluded) who participated 
was remarkably large, ranging from 83 to 89 per- 
cent in the various districts. The following table 
indicates the percentage distribution of votes 
among the parties excluding invalid ballots: ^ 



state 


Com- 
munist 


Socialist 


CDU 

(or 
CSU) 


Liberal 
Demo- 
crat 


Minor 
parties 
or in- 
depend- 
ents 


Bavaria 


2.5 
2.8 
6 
6. 1 


17.2 
15.7 
30 
44. 3 


. 412 
20 
56 
31.3 


1. 1 

7.5 
5.3 

2. 2 


35 


North Wurtteinberg- 

North Baden 

Greater Hesse 


50 
2.6 
16 



The most striking results of the elections were 
the decisive victory of the CDU in North Baden 
and the large pluralities of the CSU in Bavaria 
and of the Socialists in Greater Hesse. The results 
in North Wiirttemberg fail to give a clear picture 
of i:)arty affiliations because there the electoral law 
permitted "scratching" of lists and hence encour- 

' Althousb North Wiirttemberg - Baden constitutes a 
single Law}, the two districts voted under sliglitly dilTer- 
ent regulations and tlieir votes were tabulated separately. 



APRIL 7, 1946 



551 



aged independent voting. Also, in many commu- 
nities, especially in Bavaria, there were no 
competing lists, the election going by default to 
the single list offered, generally CSU. The results, 
although indicating that Socialists and Christian 
Democrats (or Christian Socialists) loom as the 
two major contenders for power, cannot be judged 
as representative of relative political strength 
throughout the United States zone, as only the 
more conservative rural areas were included in 
this first poll. Plans for future elections during 
1946 in the United States zone are as follows : 

For larger towns and rural counties (Land- 

kreise), April 28. 
For cities {Stadthreise) , May 26. 
For Land constitutional conventions, June 30. 
Popular vote on state constitutions and election 

of Land diets and officials, by November 3. 

It is planned that constitutional conventions, 
chosen by popular election, shall meet in the 
respective Lander to frame permanent constitu- 
tions during the summer. Draft constitutions are 
to be submitted to the occupation authorities for 
approval by September 15. Thus by the end of 
1946 it is anticipated that permanent and repre- 
sentative governments will have been established 
in each state in the United States zone. 

No elections have been held to date in other 
zones, but it seems likely that at least local elec- 
tions will occur in the British and Soviet zones 
sometime this j'ear. 

American policy is to devolve administrative 
responsibility as rapidly as possible upon German 
officials and governmental organs, which progres- 
sively will become more representative of the 
electorate. Military government since January 1, 
1946, has operated independently of the tactical 
command ; since April 1 it has centered in Berlin 
rather tlian at FVankfurt, its earlier zonal head- 
quarters. There is no intent to relax the super- 
visory role of the occupation authorities, and 
German administration will be subject to control 
at all points. 

Present policy is to transfer administration to 
the Germans at as early a stage as is feasible with- 
out waiting until programs of denazification, de- 
militarization, and reeducation ai-e completely 
achieved. This policy is in accord with the ac- 
cepted principle that Germans can learn the art 
of self-government only by practicing it, and that 



a reconstructed German state cannot be created by 
the occujjying powers but must develop from the 
activity of Germans carefully selected for their 
anti-Nazi and democratic convictions and work- 
ing in an atmosphere of increasing freedom and 
direct responsibility to the German people. 

It is an inevitable draw-back of zonal adminis- 
tration that the application even of agreed prin- 
ciples and policies differs somewhat in keeping 
with the divergent interests and purposes of the 
occupying powers. Thus the policies of Britain, 
France, and the Soviet Union have not been iden- 
tical with those pursued by the United States. 

Soviet plans for the political reconstruction of 
Germany have from the first, even before occupa- 
tion of German soil, been systematically directed 
toward the encouragement of those native German 
elements hostile to Nazi-militarism and social re- 
action. A Free Germany Committee was spon- 
sored at Moscow as early as July 1943, and many 
of its members now occupy leading posts in the 
Soviet zone. Democratization, to the Soviets, 
means the destruction of an ti -democratic social 
groups — the military caste, the great land owners 
(Junkers), the reactionary bureaucracy, and the 
proprietors and magnates of that elaborate finan- 
cial-industrial system which iwas the heart of 
German power. Hence, Soviet authorities have 
sponsored sweeping land reforms, which have now 
obliterated the great estates of eastern Germany 
and have assigned small holdings to the peasants. 
Programs to socialize important sectors of indus- 
try are under way, while plants vitally related to 
war production have b'een dismantled. The "big- 
business" control group has been virtually elim- 
inated. There has been a significant effort to build 
up labor into an import-controlling group through 
strong and centrally organized trade unions and 
shop councils, destined to share largely in plant 
management and industrial policy. There is an 
attempt to strengthen the peasant group through 
land reforms and revival of cooperatives. Light 
consumers' industries have been encouraged, prob- 
ably to a considerably greater degree than in other 
zones. Thus basic socio-economic reforms are 
made prerequisite to political reconstruction defin- 
itely oriented to the Left. The Communist Party 
is utilized as a major instrument in effecting these 
changes. Although free and democratic parties 
were authorized first in the Soviet zone (June 10, 
1945), Soviet policy stresses the "bloc" pattern 



552 



DEPARTMENT OF STATE BULLETIN 



latlifi- than paity independence and livaliy. A 
four-party committee coordinates party policies 
and directs a joint reconstruction i^rogram. Lately 
the Soviets have given encouragement to the move- 
ment for merger of the Communist and Socialist 
parties into a united workers" partj' to combat re- 
actionary influences and to guide reconstruction 
along Marxist lines. Soviet policy has from the 
beginning of the occupation entrusted administra- 
tion to anti-Nazi Gerniiins and allowed them a wide 
latitude of action in internal German affairs. It 
has authorized the creation of a number of central 
administrative departments mainly for the co- 
ordination of economic mattei's througliout the 
zone. 

British autliorities liave been more immediately 
concerned with the restoration of economic life 
and the physical basis of an orderly political state. 
They have been slower to encourage political ac- 
tivity and have preferred to set up, so far as pos- 
sible, a non-jiartisan administration. Moderate 
l)olitical elements have been cultivated, and tliere 
has been a disposition to revive the older estab- 
lished parties, particularly the Center and the So- 
cial Democrat (Centrist groups exist alongside 
of the newer CDU organizations). The British 
are less rigid in their policy of denazification tlian 
either the American or Soviet authoiities and 
have encountered Soviet criticism on this score. 
British leaders are inclined to .stress the all-im- 
portance of a sound program of rehabilitation 
which will preclude further German aggression but 
at the same time avert a depressed economic status 
whicli might be a drag on European recovery and 
a potential source of future political intransigence. 

The French are guided almost solely by theii- 
determimition that Germany shall never regain 
the jjower to menace French security. They op- 
j)ose any move toward the reestablishment of a 
central German regime, and insist that the Ruhr 
basin, tlie heart of German war industry, and the 
Rhinelaiid be permanently detached from German 
sovereignty. They have not encouraged autono- 
mous political activity until very recently and 
have sought to foster separatist movements in 
their zone. They have given preference to "safe" 
conservative and Catholic elements in administra- 
tion. The French aim seems to be a weakened 



and decentralized Reicli. with those western dis- 
tricts which France considers of major security 
importance made innocuous through some scheme 
of internationalization or by absorption (particu- 
larly of the Saar and tiie Pfalz) into the French 
economic orbit. The French have consistently re- 
fused to discuss the establishment of central Ger- 
man administrative agencies as provided in the 
Potsdam agreement until the problem of the Ruhr 
and Rhineland areas has been settled. 

In the joint task of reviving German political 
life there are certain dangers to be avoided, cer- 
tain thorny problems to be grappled with, and a 
paramount necessity for broadening tlie area of 
agreed policy. 

Germany today is ruled by four powers once 
closely associated in a wartime alliance, but now 
becoming increasingly conscious of the diversity 
of their respective national viewpoints and inter- 
ests. These are reflected in the zonal administra- 
tion of Germany. Desjnte agreement at the in- 
tergovernmental level and within the Control 
Council on the guiding principles of German pol- 
icy the trend has been toward four different imi- 
lateral apjjlications of these principles. The pos- 
sibility here is apparent : tiiat Germany may split 
apart, that Germans may capitalize Allied differ- 
ences and play off one power against another, that 
the Allies may compete for German favor. In 
short, Germany may. through a policy of Allied 
drift, become an area of inter- Allied friction and 
tension rathei- than a laboratory of four-power 
cooperation. 

There is the danger of the ever-latent Nazi men- 
tality, the almost instinctive expression of a cen- 
tury or more of ultra-nationalist indoctrination. 
The present jiolitical apathy of the Germans, their 
lukewarm conversion to democratic tenets, and 
the flaring up in unexpected places of the most re- 
actionary nationalistic sentiments point to the ur- 
gency of a concerted, long-range approach to the 
problem of German psychological disarmament 
and reorientation. This is a task of the utmost 
delicacy. One danger here is that a brusque or 
short-sighted policy may defeat our own ends and 
stinndate a violent natiomilistic revival born of 
humiliation and desperation. Another is that we 

(Continued III! iin(/r 57.i) 



APRIL 7. 1946 



553 



A Report on the 

International Control of Atomic Energy 



FOREWORD BY THE SECRETARY OF STATE 



This "Report on the International Conti'ol of 
Atomic Energy'" is in the main the work of a 
Board of Consultants to the Department of State. 
The Board carried out its assignment under the 
general direction of a Committee on Atomic 
Energy whicli I set up on January 7, 194G with 
Dean Acheson, Under Secretary of State, as Chair- 
man. A letter of transmittal at the beginning of 
the Report embodies the conunents which Mr. 
Acheson's Committee made on the unanimous 
findings and recommendations of the Board of 
Consultants. 

In thus transmitting to me the detailed report 
of the Board, the Committee emphasizes the 
Board's observation that the, Repoit is not in- 



tended as a final plan but "a place to begin, a foun- 
dation on which to build''. The Committee also 
stiites that it regards the consultants' work as "the 
most constructive analysis of the question of in- 
ternational control we have seen and a definitely 
hopeful approach to a solution of the entire 
pi'oblem''. 

The intensive work wiiich this document reflects 
and the high qualifications of the men who were 
concerned with it make it a paper of unusual im- 
portance and a suitable starting point for the in- 
formed j)ublic discussion which is one of the es- 
sential factors in developing sound policy. The 
document is being made public not as a statement 
of policy but solely as a basis for such discussion. 



THE COMMITTEE'S LETTER OF TRANSMITTAL 



OFFICE OF 

THE UNDER SECRETARY OF STATE 

WASHINGTON 

March J?', l.'l-i'!. 

Dear Mr. Secretary : 

Your committee was appointed on January 7, 
1946, with the following terms of refei-ence: 

"Anticipating favorable action by the United 
Nations Organization on the proposal for the 
establishment of a connnission to consider the 
problems arising as to the control of atomic 
-energy and other weapons of possible mass de- 
struction, the Secretary of State has appointed a 
Committee of five members to study the subject 
of controls and safeguards necessary to protect 
this Government so that the persons hereafter 
selected to represent the United States on the 
Commission can have the benefit of the study." 

HSSH14 — 4fi 2 



At our first meeting on January 14, the Commit- 
tee concluded that the consideration of controls 
and safeguards would be inseparable from a plan 
of which they were a part and that the Commission 
would look to the American representative to put 
forward a jDlan. At that meeting we also agreed 
that it was first essential to have a report prepared 
analyzing and appraising all the relevant facts 
and formulating proposals. In order that the 
work should be useful, it was necessary to desig- 
nate men of recognized attainments and varied 

Prepared for the Secretary of State's Committee on 
Atomic Energy by a board of consuUants : Chester I. Bar- 
nard, J. R. Oppenheimer, Charle.s A. Thomas, Harry A. 
Winue, and David E. Lillenthal (chairman), Washington, 
D.C., March 16, 1946. The complete text of this report 
is printed as Department of State publication 2498, for 
sale by the Superintendent of Documents, U.S. Govern- 
ment Printing Oflice. Washington 2.5, D.C. : price 20 cents. 



554 



DEPARTMENT OF STATE BULLETIN 



biickground, wlio would be prepared to devote the 
major part of their time to the matter. 

On January 23, 1946, we appointed as a Board 
of Consultants for this purpose: 

Mr. David E. Lilienthal, Chairman of the 
Tennessee Valley Authority, who acted as Chair- 
man of the consulting Boai-d, 

Mr. Chester I. Barnard, President of the New 
Jersey Bell Telephone Company, 

Dr. J. Robert Oppenheimer, of the California 
Institute of Technology and the University of 
California, 

Dr. Charles Allen Thomas, Vice President and 
Technical Director, Monsanto Chemical Com- 
pany, and 

Mr. Harry A. Winne, Vice-President in Charge 
of Engineering Policy, General Electric Company. 

The Board of Consultants has spent virtually 
its entire time, since the date of appointment, in 
an intensive study of the problem, and has now 
completed its report, which is transmitted here- 
with. 

A preliminary draft of this report was first pre- 
sented to your Committee ten days ago. Exten- 
sive discussion between the Connnittee and the 
Board led to the development of further consider- 
ations embodied in a subsequent draft. Still fur- 
ther discussion re.sulted in the report now trans- 
mitted. 

We lay the report before you as the Board has 
submitted it to us "not as a final plan, but as a place 
to begin, a foundation on which to build." In our 
opinion it furnishes the most constructive analysis 
of the question of international control we have 
seen and a definitely hopeful approach to a solu- 
tion of the entire problem. We recommend it for 
your consideration as representing the framework 
within which the best prospects for both security 
and development of atomic energy for peaceful 
purposes may be found. 

In particular, we are impressed by the great 
advantages of an international agency with affirm- 
ative powers and functions coupled with powers of 
inspection and supervision in contrast to any 
agency with merely police-like powers attempting 
to cope with national agencies otherwise restrained 
only by a commitment to "outlaw" the use of 
atomic energy for war. In our judgment the lat- 
ter type of organization offers little hoi^e of 



achieving the secui'ity and safeguards we are 
seeking. 

We are impressed also by the asnect of the plan 
which concentrates in the hands of the interna- 
tional agency only the activities which it is essen- 
tial to control because they are dangerous to inter- 
national security, leaving as much freedom as 
possible to national and private research and other 
activity. 

We wish to stress two matters brought out in 
ihe Board's report — matters of importance in con- 
;;idering the report's jjroposals as they affect the 
security of the United States both during thie pe- 
riod of any international discussion of them and 
during the period required to put the plan into 
full effect. 

The first matter concerns the disclosure of in- 
formation not now generally known. The re^Dort 
points out that the plan necessitates the disclosure 
of information but permits of the disclosure of 
such information by progressive stages. In our 
opinion various stages may upon further study be 
suggested. It is enough to point out now that 
there could be at least four general points in this 
progression. Certain information, generally de- 
scribed as that required for an understanding of 
the workability of proposals, would have to be 
made available at the time of the discussions of 
tlie proposals in the United Nations Atomic En- 
ergy Commission, of the report of the Commis- 
sion in the Security Council and General Assem- 
bly of the United Nations, and in the national 
legislatures which would be called upon to act 
upon any recommendations of the United Nations. 
AVe have carefully considered the content of this 
information, and in our discussions with the 
Board have defined it within satisfactory limits. 
We estimate the degree of its importance and the 
effect of its disclosure to be as follows : If made 
known to a nation otherwise equipped by indus- 
trial develoiJment, scientific resources and pos- 
sessing the necessary raw materials to develop 
atomic armament within five years, such disclo- 
sure might shorten that period by as much as a 
year. Whether any nation — we are excluding 
Great Britain and Canada — could achieve such an 
intensive jirogram is a matter of serious doubt. If 
the pi'ogram were spread over a considerably 
longer period, the disclosure referred to would 
not shorten the effort appreciably. 



APRIL 7, 1946 



555 



The next stage of disclosure might occur when 
the proposed international organization was ac- 
tually established by the action of the various gov- 
ernnients upon the report of the United Nations. 
At tliis time the organization would require most 
of the remaining scientific knowledge but would 
not require the so-called technical know-how or 
the knowledge of the construction of the bomb. 

By the time the organization was I'eady to as- 
sume its functions in the field of industrial pro- 
duction it would, of course, require the techno- 
logical information and know-how necessary to 
carry out its task. The information regarding 
the construction of the bomb would not be essen- 
tial to the plan until the last stage when the or- 
ganization was prepared to assume responsibility 
for research in the field of explosives as an ad- 
junct to its regulatory and operational duties. 

The second matter relates to the assunqition or 
transfer of authority over physical things. Here 
also the plan permits of jDrogress by stages begin- 
ning in the field of raw material production, pro- 
gressing to that of industrial production, and go- 
ing on to the control of explosives. 

The development of detailed proposals for such 
scheduling will require further study and much 
technical competence and staff. It will be guided, 
of course, by basic decisions of high policy. One 
of these decisions will be for what period of time 
the United States will continue the manufacture 
of bombs. The plan does not requii-e that the 



United States shall discontinue such manufacture 
either ujDon the proposal of the plan or upon the 
inauguration of the international agency. At 
some stage in the development of the plan this 
is recpiired. But neither the plan nor our trans- 
mittal of it should be construed as meaning that 
this should or should not be done at the outset 
or at any specific time. That decision, whenever 
made, will involve considerations of the highest 
policy affecting our security, and must be made 
by our government undei' its constitutional proc- 
esses and in the light of all the facts of the world 
situation. 

Your Committee, Mr. Secretary, awaits your 
further instructions as to whether you believe it 
has performed the task j^ou assigned to it and may 
now be discharged or whether jou wish it to go 
further in this field under your guidance. 
Respectfully submitted, 

Dean Aciieson 

Chairman 
Vannevar Bush 
James B. Conant 
Leslie R. Gro^'es, 

Major General, U. S. A. 
John J. McCloy 

The Honorable 
James F. Byrnes, 
Secretary of State, 
Washington, D. 0. 



EXCERPTS FROM THE TEXT OF THE REPORT 



Introduction 

The board of consultants met for the first time 
on January 23d, conferring briefly with the Sec- 
retary of State's Committee on Atomic Energy 
respecting the board's assignment to study the 
problem of international control of atomic energy. 
For more than seven weeks since that time we 
devoted virtually our entire time and energies to 
the problem we were directed to study and report 
upon. We visited the plants and installations at 
Oak Ridge, Tennessee, and Los Alamos, New 
Mexico, and spent days consulting with numerous 
scientists, industrial experts, and geologists, au- 
thorities in the technical fields concerned with 
atomic energy. Since February '25th this board 



has met almost continuously, developing and writ- 
ing the following report. Our absorption in this 
task does not, of course, assure the soundness of 
the recommendation which is the product of our 
deliberations. But it is relevant as a measure of 
how important and urgent we feel it to be that 
the Government and the people of the United 
States develop a rational and workable plan, be- 
fore the already launched international atomic 
armament race attains such momentum that it 
cannot be stopped. 

We have concluded our deliberations on this 
most difficult problem, not in a spirit of hopeless- 
ness and despair, but with a measure of confidence. 
It is our conviction that a satisfactory plan can be 



556 



DEPARTMENT OF STATE BULLETIN 



devel()i)i'(l, and that wliat \vi' hcrf lecnminciul can 
form tlie fouiulatioii of such a plan. It is worth 
coiitiastinji the sense of hope and contidenee which 
all of us share today with the feeling which we had 
at the outset. The vast difficulties of the pi-ol)leni 
were oppressive, and we early concluded that the 
most we could do would be to suggest various alter- 
native proposals, indicate their strengths and limi- 
tation, but make no recommendations. But as we 
steei^ed ourselves in the facts and caught a feeling 
of the nature of the jtroblem, we became more hope- 
ful. That hopefulness grew not out of any pre- 
conceived "solution'" but out of a patient and time- 
consuming analysis and miderstanding of the facts 
that throw light on tlie numerous alternatives that 
we exi)lored. Five men of widely differing back- 
grounds and experiences who were far apart at 
the outset found themselves, at the end of a 
month's absorption in this problem not only in 
complete agreement that a plan coidd be devised 
but also in agreement on the essentials of a plan. 
We believe others may have a similar experience 
if a similar ])roress is followed. 

AVe liave described the process whereby we ar- 
rived at our recommendation, to make it clear tliat 
we did not begin with a preconceived plan. There 
is this fuither reason for describing this process. 
Others would have a similar experience if they 
were able to go through a period of close study 
of the alternatives and an absorption in the salient 
and determining facts. Oidy then, i)erhaps, may 
it be jMissible to weigh the wisdom of the judgment 
we have ivached. and the possibilities of building 
upon it. 

The plan of the report itself may be brieily de- 
scribed, as an aid in reading it : 

In Section I. we examined the reasons that have 
led to a commitment for the international control 
of atomic energy and the early proposal for realiz- 
ing this objective by a system of inspection. 

In Section II. the essential characteristics of a 
workable jdan for security iire stated, and the con- 
siderations that favor the development of a plan 
are set out. By the time this discussion is con- 
cluded, the outlines of a workable plan as we see 
it ;ire ap|)areHt. 

In Section 111. tiie essentials of an organization 
that puts .such principles into eifect ate described. 

In Section I\'. we consider the problems of the 
transition period leading from the present to the 
full operation of the plan. 



We have tried to develop a report that will be 
Useful, nof as a ftial plan, hut rt.s- a place to hegin, 
a foundation on which to build. Many questions 
that at later stages should and must be asked we 
have not touched upon at all. We recognize that 
securing the agreement of other nations to such a 
plan will laise ([uestions the precise contours of 
which can hardly he drawn in advance of inter- 
national meetings and negotiation. AVe have not, 
of course, undertaken to discuss, much less to try 
to settle, {jroblems of this character. The newly 
created Atomic Energy Conunission of the United 
Nations, when its deliberations begin, will deal 
with many of these in joint discussion. Indeed, 
this process of joint international di.scussion is it- 
self an integral pait of any program for safe- 
guards and security. 

WAsinxciTox, I). C. 
.Van/i j6. 1946 

Section I: Background of the Problem 

This report is a preliminary study of the inter- 
national control of atomic energy. It has been 
prepared to contrilnite to the clarification of the 
l)osition of the U.S. Representative on the United 
Nations Commission on atomic energy set up by 
resolution of the United Nations General Assem- 
bly to in(iuire into all phases of this question. 

Heir folloir ilixCiis.'iidiix mi the ciitiiiitil dk lit fur iiitir- 
nationul control, cnrlii idcns: nil safcf/iiaids, tlir trchiiiciil 
prohlcm iif ititpcctiiiii. mid hiiiiiiin fiictors nf iiixpcrtion. 

Section II: Principal Considerations in 
Developing a System of Safeguards 

I N T R ( » D r t- T I O N 

At the outset of our inquiry we were })reoccupied 
with some way of making an inspection system 
provide security. This is a preoccupation that 
is apparently common to most people who have 
seriously tried to find some answer to the extraor- 
dinarily difficult problem ]iresented by the atomic 
bomb. But as day aftei- day we proceeded with 
our study of the facts concerning atomic energy, 
and reflected upon their significance, we were in- 
escapably driven to two conclusions: (a) the facts 
preclude any reasonable reliance upon inspection 
as the iH'imary safeguard against violations of 
conventions prohibiting atomic weapons, yet leav- 
ing the exploitation of att)mic energy in national 



APRIL :. 1946 



y57 



hiinds ; ( b) the facts suggest quite clearly a reason- 
able and workable system that may provide secu- 
rity, and even beyond security, foster beneticial 
and hnniiinitarian nses of atomic energy. 

]y/iat Should he the Charactcrit^fi's of tm F.ff( ct'nu 
Si/xff»i of Sf/ffffurrrds: 

It may be lielpful to summarize the character- 
istics that are desirable and indeed essential to an 
effective system of safeguards; in other words, the 
criteria for ntiy adequate plan for security. 

a. .Sucli a phin must reduce to manageable pro- 
portions the problem of enforcement of an inter- 
national policy against atomic warfare. 

h. It must be a plan that provitles unambiguous 
and reliable danger signals if a nation takes steps 
that do or may indicate the beginning of atomic 
warfare. Those danger signals nmst flash early 
enough to leave time adequate to permit other 
nations — alone or in concert — to take appi'opriate 
action. 

r. The plan must be one that if carried out will 
provide security; but such that if it fails or the 
whole international situation collajises. any nation 
such as tJie T'nited States will still be in a rela- 
tively secure position, compared to any other 
nation. 

d. To be genuinely effective for security, the 
plan must be one that is not wholly negative, sup- 
pressive, and police-like. We are not dealing 
simply with a military or .scientific problem but 
with a j)roblem in statecraft an<l the ways of the 
human spirit. Therefore the plan nmst be one 
that will tend to develop the beneficial jiossibijities 
of atomic energy and encourage the growth of 
fundamental knowledge, stirring the consti'uctive 
and imaginative impulses of men rather than 
merely concentrating on the defensive and nega- 
tive. It should, in short, be a plan that looks to 
the jiromise of luan's futiu'e well-being as well as 
to his security. 

e. The jilan must be able to cope witli new dan- 
gers that may appear in the further development 
of this relatively new field. In an organizational 
sense therefore the plan must have flexibility and 
be readily capable of extension or contraction. 

/. The plan must involve international action 
and minimize rivalry between nations in the dan- 
gerous aspects of atomic development. 

The facts we have come to think essential, and 
the elements of our thinking as we moved toward 



the plan we herein reconmiend, are set out in this 
section, in the form of the considerations that are 
relevant to an effective program for security, and 
that have led us to devise what we believe is an 
adequate plan. 

i'luipter 1. "The I'luhliiu Has Drfiiiuhic HouikIiii'kx". 
iliflii.es atomic emi-fiji us the "energy that results from 
rciirraimcmenls in the structure of atomic nuclei of ele- 
iiK-nts". The nature of tlie forces lehich hold such nuclei 
toi/itliei' mill IK count for their stiiliilitii is 

not adequately understood, but enough is known 
about their behavior, not only to make it certain 
tliat the energy of an atomic bomb or an atomic 
power plant comes from the work done by these 
forces when the structure of atomic nuclei is rear- 
ranged, but also to explaiii one major fact of de- 
cisive importance : Only in reactions of very light 
nuclei, and in reactions of the very heaviest, has 
there ever been, to the best of our knowledge, any 
large-scale release of atomic energy. The reasons 
for this can be given in somewhat oversimplified 
form. 

'I'he Coiiiiiiittee coiicliiiiis tliat: 

Because tlie constituent raw materials of atomic 
energy can be limite^l to uranium and thorium, the 
control problem is further narrowed by the geolog- 
ical conditions under which uranium and thorium 
are found, and the fact that at present those 
elements have only a restricted commercial signifi- 
cance. Although they are distributed with relative 
abundance throughout the world, and although 
it is clear that many sources beyond the 
known supplies will be discovered, it is apparently 
the view of the authorities that these elements 
occur in high concentrations only under very spe- 
cial geologic conditions. This would seem to mean 
that the areas which need to be surveyed, to which 
access must be had, and which would ultimately 
ha\'e to be brought under control, are relatively 
limited. 

The other chapters of Section II discuss the adequacy 
iif present scientific knoirledge, constructire applications 
of atomic energy, the elimination of international riralry, 
and "Safe" and "Dangerous" actiritiis. The Committee 
in a sumniarii states that: 

1. If nations or their citizens carry on intrinsi- 
cally dangerous activities it seems to us that the 
chances for safeguarding the future are hopeless. 

2. If an international agency is given respon- 
sibility for the dangerous activities, leaving the 
non-dangerous open to nations and their citizens 



558 



DEPARTMENT OF STATE BULLETIN 



and if the international agency is given and carries 
forward afilnnative development responsibiUty, 
furtliering among other things the beneficial nses 
of atomic energy and enabling itself to compre- 
hend and therefore detect the misuse of atomic 
energy, there is good prospect of security. 

Section III: Security Through International 
Cooperative Development 

INTRODUCTION 

In the preceding sections of this report we have 
outlined the course of our thinking in an endeavor 
to find a solution to the problems thrust upon the 
nations of the world by the development of the 
atomic bomb — the problem of how to obtain secur- 
ity against atomic warfare, and relief from the 
terri])le fear which can do so much to engender the 
very thing feared. 

As a result of our thinking and discussions we 
have concluded that it would be unrealistic to 
place reliance on a simple agreement among 
nations to outlaw the use of atomic weapons in 
war. We have concluded that an attempt to give 
body to such a system of agreements through 
international inspection holds no promise of ade- 
quate security. 

And so we have turned from mere policing and 
inspection by an international authority to a pro- 
gram of affirmative action, of aggressive develop- 
ment by such a body. This plan we believe holds 
hope for the solution of the problem of the atomic 
bomb. We are even sustained by the hope that it 
may contain seeds which will in time grow into 
that cooperation between nations which may bring 
an end to all war. 

The program we propose will undoubtedly 
arouse skepticism when it is first considered. It 
did among us, but thought and discussion have 
converted us. 

It may seem too idealistic. It seems time we 
endeavor to bring some of our expressed ideals 
into being. 

It may seem too radical, too advanced, too much 
beyond human experience. All these terms apply 
with i^eculiar fitness to the atomic bomb. 

In considering the plan, as inevitable doubts 
arise'as to its acceptability, one should ask oneself 
"What are the alternatives?" We have, and we 
find no tolerable answer. 



The following pages contain first a brief sum- 
mary of the plan we recommend, and then an 
exiDansion going into some detail. 

Sum^nary of Proposed Plan — The proposal 
contemplates an international agency conducting 
all intrinsically dangerous operations in the 
nuclear field, with individual nations and their 
citizens free to conduct, under license and a mini- 
nnnn of inspection, all non-dangerous, or safe, 
operations. 

The international agency might take any one 
of several forms, such as a UNO Commission, or 
an international corporation or authoritj^ We 
shall refer to it as Atomic Development Authority. 
It must have authority to own and lease property, 
and to carry on mining, nuinufacturing, research," 
licensing, insjoecting, selling, or any other neces- 
sary operations. 

This chai^ter is not an attempt to write a cor- 
porate charter for such an international agency. 
It is the aim, rather, to show that such a charter 
can be written in workable terms, and that the na- 
ture of the organization and its functions will have 
decisive consequences for world security. AVe are 
satisfied that the differences between national and 
international operations can be exploited to make 
tlie problem of atomic energy manageable. This 
idea, we think, can become as familiar as the fact 
that the differences between individual enterprise 
and corporate enterprise have important conse- 
quences in the conduct of business. 

If we are to do anything constructive in lela- 
tion to atomic energy it must inevitably be novel 
and immensely difficult. We think that the weeks 
we have spent in analysis of the problem have 
made it appear somewhat less difficult and some- 
what less novel. A succession of such processes 
will be necessary, each building on the preceding 
analysis, before even the major ramifications of 
the problem can be understood and the major 
questions partially answered. What is chiefly 
important now is to describe the right course of 
action in tei'ms sufficiently practical and valid to 
show that the further exploration is worthwhile. 

The proposal contemplates an international 
agency with exclusive jurisdiction to conduct all 
intrinsically dangei'ous operations in the field. 
This means all activities relating to raw materials, 
the construction and operation of production 
plants, and the conduct of research in explosives. 



APRIL 7, 1946 



559 



The large field of non-dangerous and relatively 
non-dangerous activities would be left in national 
hands. These would consist of all activities in the 
field of research (except on explosives) and the 
construction and operation of non-dangerous 
power-producing piles. National activities in 
these fields would be subject to moderate controls 
by the international agency, exercised through 
licensing, rules and regulations, collaboration 
on design, and tlie like. The international agency 
would also maintain inspection facilities to assure 
that illicit operations were not occurring, pri- 
marily in the exploitation of raw materials. It 
would be a further function of the Atomic Devel- 
opment Authority continually to reexamine the 
boundary between dangerous and non-dangerous 
activities. For it must he recogiiized that although 
the field is subject to reasonable division, the di- 
viding line is not sharp and may shift from time 
to time in either direction. 

The development agency itself would be truly 
international in character. Its staff would be re- 
cruited on an international basis. Its functions 
would be such as to attract a caliber of person'nel 
comparable to our own activities in raw materials 
during the war and our own primary production 
and experimental work. It would be set up as one 
of the subsidiai-y agencies of the United Nations, 
but it would have to be created by a convention or 
charter establishing its policies, functions, and 
authority in comprehensive terms. 

Whatever the formal organization, its integra- 
tion with national structure would of course be one 
of the major problems. Measures to assure the 
proper degree of accountability to the United Na- 
tions and to individual nations, measures to assure 
that individual nations would have ample oppor- 
tunity to be informed of the agency's activities, 
measures to make the agency responsive to the 
changing needs of nations — all these would have to 
be worked out with extraordinary care and in- 
genuity. But ceitainly our experience with busi- 
ness and government institutions, national and 
international, would afford a wealth of guidance 
in the development of such measures. 

In the actual conduct of its operations the de- 
velopment organization would at all times be gov- 
erned by a dual purpose, the promotion of the 
beneficial use of atomic energy and the mainte- 
nance of security. We believe that much can be 



done in a convention or charter to make these pur- 
poses concrete and explicit, to draw the line be- 
tween the dangerous and the non-dangerous, to 
establish the principles determining the location of 
stockpiles and plants so that a strategic balance 
may be maintained among nations, to establish fair 
and equitable financial policies so that the contri- 
butions of nations to, and their receipt of benefits 
from, the organization will be justly apportioned. 
The most careful and ingenious definitions will 
be required in order to accomplish these purposes. 

In what follows we shall attempt to develop and 
expand the foregoing statement of essentials. 

We can best visualize the Atomic Development 
Autliority in terms of the answer to these concrete 
questions : 

( 1 ) AVhat will be the functions of the agency ; 
what are the things that it will do? 

(2) What kind of organization is necessary to 
carry out these functions? 

(3) How will the organization be related to the 
United Nations and the individual nations that it 
will I'epresent ? 

(■i) What policies will guide the agency in de- 
termining its manifold actions? 

Tlie fwo chapters in this .section are devoted to the 
(1) proprietary and regnhitory functions of Atomic De- 
velopment Authority in tlie field of raw materials, pro- 
duction plant.s, research activities, licensing activities, and 
inspection activities, and (2) organization and policies of 
Atomic Development Authority, in which the Committee 
sets forth the basic considerations for an Atomic Develop- 
ment Authority : 

Tlie fimdamentals governing the Atomic De- 
velopment i^uthority must of course be those which 
have been so well .'^tated in the resolution of Janu- 
ary 18, 1946 setting up the United Nations Atomic 
Energy Commission, that is, the strengthening of 
security and the promotion of the beneficial use of 
atomic energy. In our report we have adopted 
as the first principle in the accomplishment of 
the.se fundamental objectives the proposition tliat 
intrinsically dangerous activities in the field must 
not be left open to national rivalry but must be 
placed in truly international hands. To establish 
the boundaries between international and national 
action, we have grasped the fortunate circiunstance 
that a dividing line can be drawn between danger- 
ous and non-dangerous activities. We have em- 
phasized that not the least in the fortunate cir- 
cumstances that we have observed is the fact that 



560 



DEPARTMENT OF STATE BULLETIN 



the field of non-dangerous activities is so chal- 
lenging that it provides an opportunity to avoitl 
such centi'alization of authority as might make 
the price of security seem too high. In this con- 
nection it is important that a purposeful effort 
should be made to keep as broad and diversified 
as possible the field of activities which is left in 
national and private hands. Every effort must be 
made to avoid centralizing exclusively in the 
Authority any more activities than are essential 
foi' purposes of security. 

Section IV: The Transition for International 
Control 

The CoiiniiUtee suiiiiiKiri^rn tliix scctimi iix faJlitirx: 

In this section we have been discussing the 
problem of transition to international control as 
it affects the security of the United States. 
During this transition the United States" present 
position of monopoly may be lost somewhat more 
rapidly than would be the case without interna- 
tional action. But without such action the 
monopoly would in time disa])pear in any event. 
Should the worst happen and. during the transi- 
tion period, the entire effort collapse, the United 
States will at all times be in a favorable position 
with regard to atomic weapons. This favorable 
position will depend upon material things: less 
and less will it rest wymn keeping nations and 
individuals ignorant. 

When fully in o]n'ratioH the ])lan herein 
proposed can provide a great measure of security 
against surprise attack. It can do much more than 
that. It can create deterrents to the initiation 
of schemes of aggression, and it can establish pat- 
terns of cooperation among nations, the extension 
of which may even contribute to the solution of the 
problem of war itself. When the plan is in full 
operation there will no longer be secrets about 
atomic energy. We believe that this is the firmest 
basis of security; for in the long term there can 
be no international control and no international 
cooperation which does not presuppose an inter- 
national community of knowledge. 

Chester I. Barnard 
J. R. Oppenheimer 
Charles A. Thomas 
Harry A. Winne 
David E. Lilienthal, 
Chairman 



Postponement of Atomic 
Bomb Tests 

The AA'hite House Press Secretary, Charles 
Ross, announced on March 23 at a special news 
conference that President Truman had decided to 
jjostpone the atomic-bomb tests scheduled foi' May 
15 and Julv 1. Mr. Ross issued a statement wliich 
said: 

"The President announced tonight that the 
atomic-bomb tests in the Pacific will be delayed 
about six weeks. The tests calling for the detona- 
tion of two atomic bombs in the Bikini atoll had 
been scheduled for May 15 for the first, an air drop, 
and July 1 for a surface burst. The pronounce- 
ment is prompted by the fact that a large number 
of Congressmen have expressed a desire to witness 
both these tests but owing to the heavy legislative 
schedule would be prevented from doing so if 
the tests were held on the dates originally fixed." 



Appointment of Civilian 
Committee on Atomic- 
Bomb Tests 

President Truman announced on March 25 the 
appointment of five scientists and four members 
of Congress as members of the civilian conunittee 
to evaluate forthcoming bomb tests in the Pacific. 
Members of the group include : Senators Carl 
Hatch and Leverett Saltonstall; Representatives 
Andrew J. May and Walter G. Andrews: Karl T. 
Compton, President of Massachusetts Institute of 
Technology: Bradley Dewey, Rubber Director of 
the AVar Production Board: J. Robert Ojipen- 
heimer. Physics Professor of the University of 
California and one of the early group who con- 
ceived the practical possibilities of the atomic 
bomb; William S. Newel, president, Bath Iron 
AA^orks Cor])., Bath, Maine; and Fred Searles, Jr.. 
New York mining engineer and Special Assistant 
to the Secretary of State. 



APRIL 7, 1946 



561 



The American Trade Proposals: 
Proposals Concerning Employment 

Article by ELLSWORTH H. PLANK and MAURICE J. ERICKSON 



FULL EMPLOYMENT and higher levels of living 
are twin goals of the United Nations post-war 
economic policy. They are proclaimed in the 
Charter o fthe United Nations and they were incor- 
porated in the Atlantic Charter, the mutual-aid 
agreements, the Economic Charter of the Ameri- 
cas, and resolutions of the 1945 International La- 
bor Organization Conference. The pursuit of 
these objectives will have important implications, 
both for domestic and foreign economic policies. 

Domestic Policy Implications 

The acceptance of full employment as a major 
goal of governmental policy clearly involves an 
assimiption of broad responsibilities for economic 
and social advancement. These responsibilities 
in the different economies will devolve in vai-ying 
degree upon the public authorities and private 
economic groups. 

Full employment programs must deal with the 
problem of general unemployment caused by de- 
clines in total expenditure on goods and services, 
and also with localized imemployment brought 
about by the immobility of labor, by rigidities in 
the domestic industrial structure, or by seasonal 
variations in economic activities. 

In order to solve these problems, all aspects of 
domestic policy will have to be examined in the 
light of their effect upon the level and stability 
of employment. In most countries, this criterion 
is not new but may be expected to play a more 
prominent role in policy formulation as full em- 
ployment plans enter the action stage. 

Higlier levels of living presuppose a fuller and 
a more effective utilization of available labor and 
natural resources, as well as a wide distribution of 
the income produced. In the industrialized econo- 
mies the achievement of higher levels of living is 

6SS914— 46 3 



closely linked with the success of full emj)loyment 
plans. Although problems vary greatly between 
nations, programs for economic development, di- 
versification, and expansion of social services are 
likely to receive special emphasis. 

Foreign Economic Policy Implications 

Many countries are substantially dependent for 
the attainment of employment objectives upon ex- 
ternal trade and financial relationships. An im- 
portant group of nations are so deficient in certain 
tyi^es of resources that they must import in order 
to exist as prosperous industrial states. In other 
countries foreign trade constitutes a highly stra- 
tegic, if not a substantial, proportion of total eco- 
nomic activity. The international exchange of 
goods and services permits countries to employ 
tlieir productive resources more efficiently and to 
obtain more advantageously goods which they can- 
not produce or which they can produce only with 
relative ineffectiveness. 

Many nations also lack adequate capital to fi- 
nance reconstruction and economic development 
programs. Continued access to surplus capital 
funds of other countries is required for the solu- 
tion of their basic economic problems, including 
the improvement of employment opjiortunities and 

Mr. Plank is chief of and Mr. Ericlison an offieer in the 
Economics Branch of tlie Division of International Labor, 
Social and Health Affairs, Office of International Trade 
Policy, Department of State. This article is the fourth in 
a series on the American Trade Proposals ; for the other 
articles already printed in the Bulletin, see "Trade Bar- 
riers Iniposeil by Governments" by Margaret Potter, 
BtTLi.ETiN of Mar. 17, 1946; "Restrictive Business Prac- 
tiees" by Robert P. Terrill, Bulletin of Mar. 24, 1946; and 
"Intergovernmental Commodity Arrangements" b.v Wil- 
liam T. Phillips, BuLLBiiN of Mar. 31, 1946. The final 
article on the -American Trade Proposals will appear in 
the next issue. 



562 



DEPARTMENT OF STATE BULLETIN 



the achievement of liigher standards of living for 
their people. Increased capital exchanges will also 
contribute to a high level of economic activity in 
capital-exporting nations and, in the long run, 
to a general expansion of trade and emjiloymeiit. 

International trade, while essential to the at- 
tainment of employment objectives, is a source of 
domestic economic instability. Fluctuations in 
foreign trade liave been an important cause of 
economic dislocation in many countries and they 
may well prove to be a serious obstacle to the suc- 
cess of employment programs. 

Economic depressions, which are the major cause 
of such fluctuations, move easily across national 
boundaries. If the depression originates in a 
major trading nation and is prolonged and severe, 
it will be extremely difficult, if not impossible, for 
the countries with which it trades to maintain em- 
ployment and income. An attempt to do so would 
require extensive readjustment of domestic activi- 
ties to provide jobs for workers displaced as a 
result of declining exports, and imports would 
have to be curtailed to avoid continuing deficits in 
foreign accounts. Heavy increases in govern- 
mental expenditures to finance emergency employ- 
ment projects and to facilitate the necessaiy in- 
ternal readjustments would be inevitable. Re- 
gardless of the measures that may be adopted to 
covmteract external deflationary influences, the 
countries concerned are likely to experience a loss 
in real income and at least a temporary decline in 
levels of emi)loyment. 

An expansion of international trade and invest- 
ment in many countries is essential to the attain- 
ment of employment objectives. The imjjortation 
of goods and capital is the only means by which 
some countries are able to maintain production 
and employment or to improve their levels of 
living. In other nations high levels of trade and 
enlarged outlets for surplus cajtital will provide 
a substantial stimulus to the attainment of full 
employment and improved standards of living. 
It should be recognized, however, that certain na- 
tions may be inclined to forego these benefits and 
limit external trade to their minimum require- 
ments unless there is reasonable assurance that 
sharp and disruptive variations in the volume of 
trade and, therefore, of employment can be 
avoided. 

Finally, assurance is needed that foreign eco- 
nomic policies will not be subject to abruj^t and 



fundamental changes by unilateral action. An 
increase in trade restrictions or the sudden and 
unexi)ected cessation of foreign lei.ding and invest- 
ment by an important country is certain to have 
disruptive influences uj)on the econonues of other 
nations. Continuitj' in international economic 
policies will greatly facilitate the planning of em- 
jjloynient programs in all countries. 

Consequently, tlie success of employment pro- 
grams in the various nations depends, in greater 
or lesser degree, upon attainment of the following 
conditions as respects their external economic re- 
lations: (1) stability of international trade; (2) 
high levels of international trade and investment; 
(3) contiiuiity of economic foreign policies. 

Proposed International Trade and Financial 
Policies in Relation to the Attainment of 
Employment Objectives 

It is evident tliat the above conditions can be 
attained not by domestic action alone; they re- 
quire effective international collaboration. The 
international trade and financial policies sup- 
ported by this Government constitute a broad and 
constructive program for economic cooperation 
among nations. So far as other countries accept 
these ]H)licies, they will affect the plans of indi- 
vidual nations for attaining empk)yment objec- 
tives. Altliough intended to i)romote the same 
broad oljjectives as domestic employment pro- 
grams, it is essential that the relationship of these 
international policies to the achievement of em- 
ployment oljjectives be clearly defined. 

Commercial Policies 

The trade jiroposals ' are ilesigned to contribute 
to an expau.sion of trade and to a more economic 
use of the resources of all countries by reducing or 
removing artificial and discriminatory restrictions 
upon world commerce. The recommendations re- 
lating to international commodity arrangements 
provide for a cooperative attack upon problems 
of serious and persistent imbalance in the supjily 
and demand of particular connnodities, esjiecially 
j)rimary products. The proposals concerning re- 
strictive practices of private industrial organiza- 
tions establish procedures for combating such 
j)ractices; and, by permitting a freer play of com- 
petitive forces, ai'e expected to contribute to an 
expansion of trade and employment. 

'liiLi.P^TiN of Dec. !l, l'.l4."i, p. WVl. 



APRIL 7, 1946 



563 



Certain groups are fearful that domestic full 
employment proorams and the proposed interna- 
tional trade i)olicies may prove incompatible. It 
has been argued that the reduction of trade bar- 
riers will subject individual economies to the pos- 
sibility of greater fluctuations arising from exter- 
nal factors ; thus a nation which has full employ- 
ment as a primary objective might, it is said, be 
ill-advised to cooperate in undtilateral trading 
systems. Similarly, it has been suggested that a 
nation cooperating in the proposed trade program 
might insist uiton i)ermission to take appr()i)riate 
protective measures if a serious depression de- 
A'eloped in other countries. 

External influences may, no doubt, jeopardize 
the economic stability of a nation. From an inter- 
national standpoint the central problem in achiev- 
ing emploj'ment objectives is to prevent or arrest 
external deflationai'y influences upon domestic in- 
come and employment, while maintaining the high 
level of trade reiiuired for full and etfective utili- 
zation of national resources. 

The success of domestic employment programs 
in many countries will depend in large degree upon 
finding an effective solution of this problem. Con- 
sequently there is little point in laboring the issue 
as to whether a reduction of trade barriers — de- 
signed to contribute to the higher levels of trade 
required — might subject particular economies to 
the possibility of greater external fluctuations. 

The problem of eliminating or controlling 
external deflationary influences is essentially one 
of preventing depressions in the major trading 
nations and, if preventive measures fail, de- 
veloping approi^riate corrective techniques. In 
the absence of ett'ective machinery for cooperative 
action, the various countries would attempt to pro- 
tect themselves tlu'ough unilateral action, although 
witli little assurance of success. The obvious alter- 
native is an international agreement which pro- 
vides a cooperative approach to the solution 
of problems of world-wide instability and 
unemployment. 

The projiosed trade policies do not of themselves 
constitute an anti-depression i^rogram. They are 
not specifically designed for this purpose, al- 
though they should have a l)eneficial preventive 
influence. The proposals concerning international 
commodity arrangements, while intended to 
achieve greater stal)ility of prices and markets 
for certain basic commodities, are obviously, 



limited in scope. The proposals for i-eduction of 
trade barriers contain certain exceptions which 
the International Trade Organization might inter- 
pret as permitting individual nations to take cor- 
rective meatures in case a serious depression 
develops. However, if such action were permitted 
by the International Trade Organization, the 
remedy would merely be a reversion to unilateral 
action by the various countries aflected and would 
involve at least a temporary break-down of the 
cooperative trade program. If such action were 
not authorized the result might be the same, since 
domestic pressures are not likely to permit any 
government to sit idly by while serious external 
deflationary influences run their course. 

Financial Policies 

In terms of their relation to the attainment of 
employment objectives, the International Mone- 
tary Fund and the International Bank for Eecon- 
struction and Development are significant develop- 
ments. The Fund is designed to insure stability 
of exchange rates and to facilitate a balance of 
short-run accounts between nation.s. It provides 
for limited reserves of exchange to which all sig- 
natory countries will have access in case of need, 
for a reasonable degree of flexibility in exchange 
rates to meet contingencies. Thus the Fund is 
equipped to cope with one important aspect of the 
problem of stable relationships between nations — 
the stability of international exchange. 

The primary function of the Bank, as its name 
implies, is to help finance reconstruction and devel- 
opment projects in countries requiring such assist- 
ance. It provides an international mechanism 
whereby the surplus capital funds of certain coun- 
tries may be made availalile to other nations when 
conditions are unsuited to private lending. The 
BanJv will lie in a position to make a substantial 
contribution to tlie recovery of war-devastated 
areas and to a fidler and more effective utilization 
of the labor and natural resources of relatively 
undeveloped countries. The loans extended by the 
Bank, however, are likely to be expansionary in 
effect. Although the Bank may extend or guar- 
antee a limited amount of credits for meeting 
short-run stabilization problems, the stabilization 
function is not its chief concern. Furthermore, its 
resources are obviously inadequate to permit ex- 
tensive anti-cyclical operations. 



564 



DEPARTMENT OF STATE BULLETIN 



Conclusions: Role of International Cooperation 
in Attainment of Employment Objectives 

Althcmtrh the policies of internatioiiiil tnide and 
financial cooperation supported by this Govern- 
ment provide a sound foundation for advancing 
the twin objectives of full employment and higher 
standards of living, a further element of coopera- 
tive effort is required. The conclusion is inescap- 
able that the fullest measure of success of both do- 
mestic employment progi-ams and the proposed 
trade and financial policies depends upon the for- 
nndation and acceptance of a cooperative program 
for the prevention and alleviation of serious and 
wide-spread fluctuations in world trade and in- 
vestment. 

The elimination of depression unemployment 
is, as previously indicated, the key to the success 
of full employment programs in the industrialized 
nations. If any major country fails to avoid wide- 
spread unemployment, the endeavors of other na- 
tions to achieve their employment objectives will 
be seriously jeopardized. 

An agreement to act collaboratively in combat- 
ing economic depressions and their consequences 
is an indispensible link in the chain of economic 
cooperation among nations. AVithout assurance 
of a concerted effort to avoid or to mitigate the 
effects of general economic instability, the whole 
framework of international trade and financial 
cooperation will be endangered. The proposed 
trade and financial jiolicies may be accepted 
by a large number of countries on their merits; 
however, there might well be important reserva- 
tions designed to protect the interests of certain 
countries which are particularly vulnerable to ex- 
ternal deflationary influences. The occasion for 
the application of such reservations and the real 
danger to the program of trade and financial co- 
operation will arise when a threat of general de- 
pression ajipears. 

In the absence of a concerted effort to fornndate 
an effective anti-depression program, individual 
nations will undoubtedly take protective measures. 
How quickly and how decisively they act will de- 
pend in part on the government's employment 
policy. If a nation has a full employment pro- 
gram, action may be taken immediately upon the 



appearance of external deflationary influences. 
Lacking such a program, a nation may delay ac- 
tion until unemployment appears and public pres- 
sures force the government to take steps to counter- 
act these influences. In either case the measures 
adopted would probably be designed to prevent a 
continuing deficit in foreign accounts, a deficit 
occasioned by a decline in export income. A re- 
turn to unilateral imposition of quantitative con- 
trols under these conditions would almost 
inevitably bring with it a general revival of eco- 
nomic warfare. If the depression were severe and 
prolonged, the measures taken would be likely to 
be extreme in character and might become firndy 
indiedded in national policy. A nationi which 
sought to maintain full employment despite a pro- 
longed world depression woidd be forced to make 
readjustments in its economy. Labor and capital 
would have to be diverted from export industries 
to new industries capable of supjilying the defi- 
ciences created by reduced imports from abroad. 
Such readjustments would be costly and would 
inevitably involve sacrifices in terms of efficiency. 
Once they were undertaken, they would interpose 
serious difficulties to a relinquishment of protective 
controls when a semblance of world prosperity 
was restored. 

In view of the above considerations tiie proposals 
suggest that the various nations undertake to co- 
operate in the advancement of recognized em- 
ployment objectives, with particular emphasis 
upon the prevention of wide-spread unemployment 
and general economic instability occasioned by 
cyclical depressions. The envisaged areas of co- 
operation include a suggested undertaking that : ^ 

"1. Each of the signatory nations will take action 
designed to achieve and maintain full employment 
witiiin its own jurisdiction, through measures ap- 
l>ropriateto its political and economic institutions. 

"2. No nation will seek to maintain employment 
through measures which are likely to create unem- 
ployment in other countries or which are incom- 
patible with international undertakings designed 
to promote an expanding volume of international 

' See Proposals for EJrpansion of World Trade and Em- 
ploiDiieiit, Dept. of State publication 2411. 

(Continued on page 578) 



International Organizations and Conferences 



Calendar of Meetings 



Council of Foreign Ministers: Meeting of Deputies 

Far Eastern Commission 

PICAO: 

North Atlantic Route Service Conference 
European Route Service Conference 

Fourth Session of the UNRRA Council 

Preliminary Meeting of Conference on Health Organization 

Anglo-American Committee of Inquiry 

I 

AUied-Swiss Negotiations for German External Assets 

Third Conference of American States Members of the International 
Labor Office 

Food and Agriculture, Conference of Ministers (under the auspices of 
Emergency Economic Committee for Europe) 

Fifth Pan American Railway Congress 

The United Nations: 
Security Council 

Military Staff Committee 

Negotiating Committee on League of Nations Assets 
Special Committee on Refugees and Displaced Persons 
Economic and Social Council: Second Session 
General Assembly 



London 


January 18 (continuing in 




session) 


Washingtor 


February 26 (continuing in 




session) 


Dublin 


March 4-27 


Paris 


April 24 


Atlantic City 


March 15-29 


Paris 


March 15 (continuing in ses- 




sion) 


Switzerland 


Left Jerusalem about March 




28 


Washington 


March 18 (continuing in ses- 




sion) 


Mexico, D.F. 


April 1 


London 


April 3 


Montevideo 


April 5 


New York 


March 25 (continuing in ses- 




sion) 


New York 


March 25 (continuing in ses- 




sion) 


Geneva 


April 6 


London 


April 8 


New York 


May 25 


New York 


September 3 



The dates in the calendar are as of Mar. 31. 



565 



566 



DEPARTMENT OF STATE BULLETIN 



Activities and Developments 



The Far Eastern Commission at its leaulai 
weekly' meeting on Mairli 27 considered reports 
by several of its committees and established a new 
Committee on the Disarmament of Japan. This 
Committee will l>e concerned with the disarma- 
ment and dissolution of the Japanese armed forces, 
the disposition of armaments and military equip- 
ment, and the long-range control of armaments 
necessary' for internal police security in Jainm. 

At a special meeting on March 30 called l\v the 
Chairman, General McCoy, after consultation with 
the Connnission's Steering Committee, the Far 
Eastern Commission considered a reply by General 
MacArthur, the Supreme Commander for the 
Allied Powers, to an earlier inquiry by the Com- 
mission as to his views with respect to the date of 
the forthcoming Japanese general election sched- 
uled for April 10, 1946. 

In its inipiiry to the Supreme Commander, the 
Commission had indicated that it considered the 
election an imjiortant matter, that it had made a 
preliminary and tentative study of the subject and 
that it wished the views of the Supreme Com- 
mander in order to give the subject further con- 
sideration. 

The Supreme Connnander's reply gave the Com- 
mission tliQ information it had requested and it 
was to consider this infoi-mation that the Commis- 
sion met today. 

Upon due consideration the Commission agreed 
that any action on its part in connection with the 
date of the forthcoming election on April 10 was 
unnecesary. 

Third Conference of American States Mem- 
bers of the International Labor Organization, 

Mexico City, April 1 to Iti. 1!)4<;.' The American 
Delegation has been designated by the President 
ui)on the reconunendation of the Secretary of 
Labor and concurred in by the Secretary of State. 

'Released to the in-ess by the White House Mar. 27. 



Representing the Government of the United 

St.\tes 
Driei/ales: 

Di^nni.s Chavez, United States Senate. 
Verne A. Zinnner, Director. Division of Labor Stand- 
ards, Department of Lalior. 

AiJrintrs: 

William K. Ailshie, Second Secretary, American Em- 
liassy, Mexico ('ity. 

Beatrice Mrt'onnell, Director, Industrial Division, Cliil- 
dren'.s Bnreau. Department of Labor. 

Marian L. Mel, Specialist in Labor Law .\dministration, 
Division of Labor Standards, Department of Labor. 

Charles Johnson Post, Comniissiouer of Conciliation, 
Conciliation Service, Department of Labor. 

Bernard Wiesman. Chief. International Labor Organ- 
ization Branch, Departnjent of State. 

Rei'resentino the E.mi'i.oyers of the LTnited 

St.vtes 
Dc'ci/dte: 

James David Zellerbacb, President, Crown Zellerbach 
Corporation, San Francisco, Calif. 

. 1 (?(•/' -sTcs; 

<". R. Dooley, Director, Training within Industry Foim- 
dation. Inc.. Summit, N. .1. 

M. M, Olandcr, Director of Industrial Relations, Owens- 
Illinois Glass Company, Toledo, Ohio. 

Charles E. Shaw, Manager, Industrial Relations Over- 
seas, Standard Oil Company of New Jersey, New 
York, N. Y. 

Representing the Workers of the United St.vtes 

Delefftitr: 

George Mean.v, Secretary-Treasurer, American Federa- 
tion of Labor. Washington, D.C. 

Advisers: 

A. F. Cadena, Organizer, .\meri(an Federation of Lalxir, 
Labor Temple, San Antonio, Texas. 

Jlichael Ross. Director, International Department, Con- 
gress of Industrial Organizations, Washington, D.C. 

Willard Townsend, President, Transport Service Em- 
liloyees. Congress of Industrial Organizations, Chi- 
cago, 111. 

Secretary to the Deleg.xtion 

John S. Gambs. Adviser on International Labor Rela- 
tions, Department of Labor. 



The United Nations 



Meeting of the Security Council 

MESSAGES FROM PRESIDENT TRUMAN AND THE SECRETARY OF STATE 



Mr. Chairman : This is a moinent of great im- 
portance ill tlie history of the world. Witli tliis 
meetinii' tlie Security Council begins, as required 
by the Charter, to function continuously. For this 
purpose the members of the Council are obligated 
to be represented at all times at the seat of the Or- 
ganization. This is essential because it is the func- 
tion of the Council to guard at all times the peace 
of the world. 

The President of the United States has re- 
quested me to read to you the following message : 

"On behalf of the people of the United States I 
welcome the members of the Security Council and 
the Secretary-General of the United Nations and 
their staffs to our countiy. 

"We are greatly honored that the United Na- 
tions has chosen a site in our country for its home. 
We will do our best to make you feel at home. 

"But there can be no home anywhere for the 
United Nations unless the United Nations remain 
united and continue to work together, as they have 
fought together, for peace and for freedom. 

"The people of the United States not only wish 
you success, but they pledge to you their whole- 
hearted cooperation to give to tlie United Nations 
the strength and the will to maintain peace and 
freedom in this interdependent world." 

I am sure that the Governor of the State of New 
York and the mayor f)f tliis city will join M-ith 
President Truman and me in welcoming you to 
our country and to your temporary headquarters 
in the city of New York. 

It is less than 160 years ago that our 13 sovereign 
states entered into a union for their common 
defense and to promote the general welfare and 
to secure the blessings of liberty for themselves and 



their posterity. That was then an untried experi- 
ment, and many doubted whether such a union 
of free states could long endure. It is fitting to 
recall that tliat union also ciiose as its temporary 
abode the city of New York. 

Although it was later to go through dark days 
of trial, tliat union did survive. It grew in 
strength and has played its part in preserving 
tlie blessings of liberty for all mankind. Let us 
hope that the new and broader union of states, 
which has also chosen New York City as its tem- 
porary abode, will likeM'ise grow in strength and 
survive every crisis. 

It is, I am sure, the firm resolve of the American 
peojale to uphold tlie Charter. I am sure this is 
the equally firm resolve of all the peoples of the 
United Nations who have joined together to pi-e- 
serve the peace under law. 

The Charter does not sanctify ancient privilege. 
It does not attempt to outlaw change in an ever- 
changing world. It does, however, obligate all 
the states, large and small alike, to refrain from 
the use of force or threat of force, except in the 
defense of laM\ 

Nations, like individuals, should do their best 
to adjust their disputes without resort to litigation. 
But no nation has the right to take the law into 
its own hands. If disputes cannot be settled by 
friendly negotiations, they must be brought before 
the Security Council. 

That is why the Security Council must at all 
times be prepared to act prompt!}'. That is why 
the Security Council must be prepared to function 
continuously. If the United Nations is to endure. 

Made at the opening meeting in New York Cit,v on Mar. 
2.^ and released to the press on the same date. 



567 



568 



DEPARTMENT OF STATE BULLETIN 



there must be no excuse or need for any nation 
to take the law into its own hands. 

Upon the Security Council rests the gravest 
responsibility for the maintenance of peace and 
security. It must of nece.ssity deal with the prob- 
lems about which nations in tlie past have been 
{prepared to fight. 

Upon all the members of the United Nations 
rests the duty to cooperate with the Council to 
enable it to meet its responsibility. They must 
be willing freely and frankly to discuss their 
grievances before the Council. 



Questions affecting the peace of the world must 
not be treated as questions of honor which cannot- 
be discussed. Questions of honor between indi- 
viduals are no longer left to the ordeal of the duel. 
Questions of honor between nations cannot be 
left to the ordeal of battle. 

We must live by the Charter. That is the road 
to peace. And the road to peace is the road the 
peoples of the world want to travel. 

We are here to carry out their mandate. We 
must not let them down. 



Discussion of Soviet— Iranian Matters 



REMARKS BY AMBASSADOR GROMYKO 



Mr. Chairman: During the conference of San 
Francisco and also during the first session of the 
General Assembly of the United Nations, held at 
the beginning of this year in London, the Soviet 
Delegation stated clearly the position of the Soviet 
Government witli regard to the United Nations. 

In the.se declarations, special reference was made 
to the importance of the role of the Security Coun- 
cil as the chief organ for tlie maintenance of world 
peace and security. It is hardly necessary for me 
to say that the position of my Government with 
regard to the United Nations has not changed. 

Striking evidence of the fact that the position of 
our Government is unchanged in this respect was 
given in the interview, given by the President of 
the Council of Ministers of the Soviet Union, Gen- 
eralissimo Stalin, to a representative of the Asso- 
ciated Press on the 15th of March of this year. 

During this interview. Generalissimo Stalin 
stated that he attributed great importance to the 
United Nations and regarded it as a serious instru- 
ment for the maintenance of peace and security. 

During this interview. Generalissimo Stalin em- 
phasized that the strength of this international 
organization lay in the determination to apply 

' Made at the 26th meeting of the Security Council in 
New YorlJ, N. Y., on Mar. 26. Mr. Groniyko, Soviet Am- 
bassador to the United States, is the Soviet representative 
on the Security Council. 



the ])rinciple of equality of i^eoples as against the 
domination of some peoples by nations — equality 
of nations as opposed to the domination by some 
nations of others. Generalissimo Stalin ex- 
pressed the hope that by applying this principle 
of equality between nations, the United Nations 
could play a great and positive role for the main- 
tenance of peace and security. 

Tliis statement defines clearly the position of the 
Soviet Government v/'s-o-ri-s the United Nations 
and constitutes a contribution to the peace and 
seciu'ity of nations. 

After making these general remarks I would 
turn to the concrete subject placed on the agenda 
of the Security Council. 

I would suggest that this subject, brought to 
the attention of the Security Council by the 
Iranian Ambassador, Mr. Hussein Ala, in a letter 
of the 18th of ISIarch, is not fitting to be placed 
on the agenda. I will not repeat the text of this 
letter. I will not quote from it for its contents 
are known to the members of the Security Coun- 
cil, but I would propose that as this subject is not 
fit to be placed on the agenda of the council it 
should not be so included, and I will now give 
my reasons for this position. 

I would begin by making an official declaration 
on behalf of the Soviet Government. Negotiations 
between the Soviet Government and the Govern- 



AI'RIL 7, 1946 



569 



meut of Iran luive resulted in an agreement re- 
gardinp- the evacuation of Soviet troops still in 
tJiat country. It is already known that the evac- 
uation of these troops began some time ago. on the 
2d of March. As regards the evacuation of the 
troops still remaining in certain zones of Iran, 
I would state that in accordance with an agree- 
ment concluded between the Soviet and the Ira- 
nian Governments the evacuation of these troops 
began on the 24th of March, that is, two days ago, 
and will probably end within five or six weeks 
unless unforeseen circumstances arise. 

In recent times the question of relations between 
the Soviet and Iran have been used by certain 
elements to aggravate the political atmosphere of 
the world. The}' have helped the activity of 
certain political groups who aim at engaging in 
propaganda destined to foment a new war by 
sowing distrust and anxiety among the peoples. 

There can be no doubt that the decision taken 
by the Soviet Government in this matter is clear 
evidence of the pacific policy pursued by my Gov- 
ernment. The policy of my Government is aimed 
at peace. The decision of the Soviet Government 
also constitutes a reply to those who, though hid- 
ing their aggressive designs, are working against 
international peace and security. These elements 
also misuse the freedom of discussion and the free- 
dom of the press for their purposes. 

I shall no doubt have occasion later to show the 
ill-founded nature of the arguments put forward 
by the Ambassador of Iran in his communications 
to the Council. For the present I would limit my- 
self to saying that as a result of the understanding 
I have already referred to, concluded between the 
Soviet Government and the Iranian Government, 
the so-called question brought up by Iran does not 
need to come before the Security Council. There 
is no ground for bringing this subject before the 
Security Council. 

In spite of the statement made by the Iranian 
Ambassador in his letter of the 18th of March, a 
letter which makes no mention of the negotiations 
in jn-ogress between the Soviet and Iranian Gov- 
ernments, and in sjiite of the declaration made 
in the second letter of the Iranian Ambassador 
in which no reference is made to the fact that re- 
sults were achieved by these negotiations, we have 
the fact that negotiations have taken place. This 
fact is confirmed by the Soviet Government and 

688914--46 :i 



I have already maile mention of the decision taken 
by my Government and of the understanding 
reached between my Goverinnent and the Govern- 
ment of Iran. 

The fact of negotiations is also confirmed by the 
Iranian Prime Minister, Premier Ahmad Ghavam- 
es-Saltaneh. So, we have two undisputed facts 
which, I submit, must be considered when we ask 
ourselves whether this Iranian question should be 
placed on the agenda of the Security Council. 

The first fact is that negotiations have taken 
place between the Governments of the Soviet 
Union and Iran, although that fact is denied by 
the Iranian Ambassador, and secondly, in fact an 
agreement has been reached between the two Gov- 
ernments, in virtue of which the Soviet Govern- 
ment has taken the decision to which I have al- 
ready referred. These two facts have to be taken 
into account when we consider whether the subject 
is to be placed on the agenda of the Council. 

Is it itossible, in view of these two facts which 
I have mentioned, to ask for the inclusion on the 
agenda of the Security Council of the so-called 
Iranian question? My reply is tliat there is no 
ground for such a demand; that such a demand 
contradicts the facts of the situation and cannot 
be justified. 

In conformity with the resolution adopted by 
the Security Council on 30 January in its session 
at London, the ditferences between the Govern- 
ments of the Soviet Union and Iran were to be 
handled by negotiations between the two parties, 
bi-lateial negotiations. 

In conformity with this decision, negotiations 
between the two Governments did take place. 
These negotiations brought about positive re- 
sults — the positive results which I have already 
mentioned — results agreed to and agreements 
between the two parties. How, therefore, can we 
justify a demand to include the so-called question 
of Iran on the agenda of the Security Council 
now? Such a demand would be justified only if 
the negotiations provided for in the resolution of 
London had either led to no result or had led to 
results which were not positive. Only if that had 
taken place would it be justifiable to argue that 
the subject should now be placed on the agenda. 
However, the resolution of the 30th of January 
has been carried out. The negotiations have taken 
place and a positive understanding has been 
reached. 



570 

Therefore, the decision to place this subject on 
the agenda of the Security Council contradicts not 
only the facts of the situation, but the letter and 
the spirit of the resolution adopted by the Security 
Council on the 30th of January. 

For these reasons I propose that the question 
raised by the Iranian Ambassador in the letter of 



DEPARTMENT OF STATE BULLETIN 

the ISth of March should not be included in the 
agenda of the Security Council. I make this pro- 
posal in the hope that the Security Council will 
examine it with attention, objectively, in the light 
of the circumstances and the events of the present 
time which justify my demand for the exclusion 
of this subject from the agenda. 



REMARKS BY THE SECRETARY OF STATE ^ 



I cannot agree with the representative of the 
Soviet Government nor support the amendment he 
offers to the agenda. 

The facts before the Council are that the Iranian 
Government, through its representative, brought 
to the attention of the Council a dispute between 
Iran and the Soviet Government which it declared 
was likely to endanger international peace and 
security. The Iranian Government further stated 
that contrary to the provisions of the Treaty of 
January 29. 1942, the Soviet Government was 
maintaining troops on Iranian territory after 
March 2. And in its letter to the Council, it fur- 
ther declared that the Soviet Government was 
continuing to interfere in the internal affairs of 
Iran through the medium of Soviet agents, offi- 
cials, and armed forces. 

The Iranian Government, through its repre- 
sentative, referred to these facts as constituting 
new developments arising since the action of the 
Council on January 30. 

Today the representative of the Soviet Govern- 
ment states that there has been an agreement. If 
that information is correct, then the Soviet Gov- 
ernment should have presented to the Council for 
its consideration a joint statement from the Ira- 
nian Government and the Soviet Government stat- 
ing that an agreement had been arrived at and 
asking that there be no further consideration of 
the question. But that is not the case. The Iranian 
Government has not withdrawn its letter. 

Though we have tried to ascertain the facts, we 
have not ascertained from the Iranian Govern- 
ment that there has been an agreement. 

Therefore, when a member of the United Na- 
tions advises the Council that a situation exists 
which is likel}' to threaten the peace and security 
of the world, we cannot deny to that nation the 

' Made at the 26tli meeting of the Secui-it.v Council in 
New York City on March 20. 



opportunity to be heard, to say whether or not 
there has been an agreement, to say whether or not 
they wish to withdraw their complaint. 

If that is not correct, then all that a government 
represented on the Council would have to do when 
a complaint was made against it would be to ad- 
vise the Council that there has been an agreement, 
and on the strength of that to ask that the com- 
plaining government be denied the opportunity 
to have a hearing. 

All that is contemplated now is the adoption of 
an agenda which would give to the Iranian Gov- 
ernment an opportunity to present facts which in 
the opinion of that Government constitute a threat 
to international peace. Surely the Council cannot 
deny to any member of the United Nations the 
opportunity to present a request of that kind, filed 
in complete accord with the provisions of the 
Charter. 

If there has been an agreement, certainly the 
Council would want to hear that fact stated by the 
representative of the Iranian Government. If 
there has been an agreement, we must assume that 
the representative of the Iranian Government will 
make a statement as to the agreement. We must 
put this matter on the agenda ; we must give to the 
Iranian Government an opportunity to say 
whether or not there has been an agreement. 

If there is not a complete understanding between 
the Iranian Government and the Soviet Govern- 
ment, that fact will be disclosed when opportunity 
is given to both sides of the dispute to make a 
statement. And when that is done, the Council 
can take the matter under consideration and deter- 
mine whether it can take any action to bring about 
complete agreement. But certainly it cannot deny 
to a meml)er of the United Nations, stating that 
a condition exists which threatens international 
peace and security, even the opportunity to present 
its case. 



APRIL 7, 1946 



571 



REMARKS BY THE SECRETARY OF STATE DURING DISCUSSION ON MOTIONS ^ 



Mr. Byrnes: Mr. President, there can be no 
question that the representative of the Soviet Gov- 
ernment has pi'esented to us information he has 
received. The difficuky is that there apparently is 
a misunderstanding between the officials of the 
Soviet Government and the officials of the Iranian 
Government. The information of the United 
States Government has is not from the press but 
from its official representative in Tehran, as to the 
attitude of the Iranian Government, and it is that 
there has been no settlement of the dispute between 
the two Governments. The information coming 
not from the press or radio but from the highest 
official of the Iranian Government to the repre- 
sentative of the United States Government is that 
proposals have been made but have not been agreed 
to, and that being so, there was no change of his 
instructions to his representative. 

Therefore, the United States Government is in 
tlie position of having here before the Security 
Council a representative of the Government of 
Iran who in compliance with the provisions of the 
Chartei' has formally filed in proper form a com- 
plaint which he says in behalf of his government 
threatens international peace and security, and 
that there is a continuance of interference with 
his Government by Soviet agents and armed forces 
of the Soviet Government. 

First, a motion is made to delete the whole sub- 
ject from the agenda; when that was not agreed 
to, then a motion to postpone discussion until April 
10. In the face of this situation a motion is made 
by the Representative from Egypt that the Rep- 
resentative of the Government of Iran be per- 
mitted to make a statement to the Council as to 
whether or not this question shall be postponed 
until April 10. 

I say again what I said yesterday. The United 
States Government deems it of vital importance 
to the future of the United Nations. If a small 
government not a member files properly and in 
compliance with the Charter a declaration that 
foreign troops are on its soil and are interfering 
with that government, and any of the governments 
here represented can say "we think there is an 
agreement, or our information is that there is an 
agreement," and because of this a non-member gov- 



ernment is denied even the right to present its case, 
then all confidence in the effectiveness of the Se- 
curity Council will disappear. 

We are asked to act upon press statements. That 
cannot be done because even then we would want 
to have before us the press statements. 

My friend the representative of the Soviet Gov- 
ernment refers to an interview in the newspapers 
given by Premier Ghavam. I hurriedly wrote 
down before leaving my hotel the language of that 
interview, and here is what the interview was : "It 
makes no difference if the Council meets now or in 
fifteen days. If by the time it does convene we have 
not solved the fundamental problem of evacuation 
of troops by other means, then our case will be in- 
cluded in the organization agenda under security 
regulations." 

That is a statement that anyone would make — 
I don't care wlien it meets, if by the time it meets 
we have not solved this problem of the removal of 
troops from our borders we are going to submit 
our case to the Security Council and ask for its 
consideration. 

Gentlemen of the Council, we cannot act upon 
that. If we are going to say that when an official 
representative of the Iranian Government is here, 
he cainiot even be heard upon the request of post- 
ponement, I do not see how a non-member will ever 
get into this Council, for if the motion of the 
Soviet representative were adopted and discussion 
postponed without even giving him a chance to 
be heard until April 10, then on April 10 any mem- 
ber of this Council or the Soviet Representative 
could move that it be postponed until October 10, 
and if the Iranian Representative occupied then, 
as he occupies now, a seat in the front row of this 
hall, the motion could be made that he be denied 
the opportunity to speak ; and on Octolier 10 some- 
one else can make the motion. The United Nations 
will die in its infancy because of inefficiency and 
ineffectiveness. 

The nations not represented here — there are 
forty nations not represented here — look to us to 
give to each one of them the assurance that the 
doors of the Security Council are open to them to 

' Made at the 27th Meeting of the Security Council on 
March 27. 



572 



DEPARTMENT OF STATE BULLETIN 



pieseut a giievance wlien they say that grievance 
threatens international security. 

Now as to priority of motion. Would it be logi- 
cal in view of the motions here to vote first upon 
the motion of the Soviet Eepresentative to post- 
pone until April 10 in jJreference to the motions 
that the Iranian Eepresentative be heard on tliat 
postponement^ Suppose the motion of the Soviet 
Ke2Jresentative should be carried and the matter is 
postponed. Then the Council will have acted and 
postponed the matter which Iran says threatens 
national security, without ever giving Iran the 
right to say a word in behalf of its plea. Vote to 
postpone first and then hear them afterwards? 
Tliat answers itself. 

Obviously, when the motion was presented un- 
der the language of the Charter several motions 
were nuule to give Iran a chance to present its 
views. As between those motions I think the Chair 
acted perfectly correctly. They should be con- 
sidered in the order in which they were presented. 

The motion of the Representative of Egypt 
sliould be presented first, and if it should be car- 
ried and Iran be given a chance to say a word as 
to whether or not this case should be postponed, 
then if the Council sees proper they could vote 
upon the motion of the representative from Aus- 
tralia, and the Iranian Representative be asked 
to file a written statemoit in addition to his oral 
statement. But certainly we must vote on the 
question of whether we hear Iran before we vote 
on the question of whether we postpone the matter 
without giving him a hearing. 

President: Mr. Byrnes, did I understand that 
you wish to have the Egyptian motion put to a 
vote first? 

Mu. Byrnes : That is my request Mr. President. 
I suggest that the Representative of Egypt clarify 
his motion. As I understand it as he made it, it 
was that the Representative of Iran be permitted 
to come, using his language, to the bar of the Coun- 
cil and make a statement. 

President: The President, of course, is not in 
a very good position to judge the importance of 
each motion, but the order of the various motions 
in which they are made seems to be a safe rule. 
However, I am quite ready to waive on that point 
even as I expressed myself to be i-eady to waive 
on the question of precedence of the Australian 



motion over tlie Egyptian moti(ni, but I nuist con- 
fess that I am still partial to the order that I have 
already given — that much by charity could be per- 
mitted by the President. 

However. I sliall take the advice of the Council 
wlieu we come to vote uiion the various motions. 

Mk. Byrnes : In my previous statement I ex- 
pressed the view that the motion of the Represent- 
ative from Egypt constituted an amendment to 
tlie (original motion offered by the Representative 
of the Soviet (iovernnient. But I realize the Chair 
is acting without having formal rules, and when 
the Chaii- decided to give preference to the motion 
made by the Soviet Representative because it was 
first made, I gladly acquiesced in that. And I 
think that the same order then should be followed, 
tlie order in which the motions were made. 

I would have to object to the motion of my good 
friend, the Representative from Poland, which 
wi>uld make the last first. I do not think the last 
should be first. If that really be the case, I might 
make another motion myself so that mine would be 
last. I think the Chaii' was right in solving this 
difficult situation by taking the motions in the 
order in which they were filed. We took the Soviet 
motion first; the next was a motion of the Repre- 
.sentative from Egypt; the next was the motion of 
the Representative of Australia, and as long as 
we have started that way I submit respectfully we 
might follow that rule. 

Mr. President, when the President stated before 
the vote was taken that debate was closed, along 
with the representative of France I reserved the 
right to nuike a statement afterward. I was 
prompted to make that reservation because of the 
statement made by the Soviet Representative that 
the Representative of the United States wished 
to have the Iranian Representative speak upon 
the substance of the dispute and not upon the 
question of postponing. I wanted to call to the 
attention of the Council the fact that in mj' state- 
ment today and yesterday I stated quite the con- 
trary and that my good friend representing the 
Soviet Republic was mistaken in his view. 

The fact is that as a result of my statement today 
that the Iranian Reju'cseutative be given the op- 
portunity to express to the Coiuicil his views con- 



APRIL 7, 1946 



573 



cerning the question of postponement, the 
Kepi-esentiitive of Egypt amended liis motion to 
accord with the suggestion I made. That accounts 
for the change in the motion providing that the 
Iranian Representative appear at the Council to 
present his point of view. 

My friend, the Representative of Egypt, was 
good enougli to accept that amendment. So that 
the statement of the Representative of tlie United 
States was that the Iranian Representative should 
he heard upon that motion before it was taken. 
Because of the decision of the chairman the vote 
was taken first on the motion of the Representative 
of the Soviet Union. 

It does not change my view. I think that the 
Representative of Iran should, when he appears 
before the Council, be asked to state his views 
with reference to any postponement, whether it 
be April 10th or April 1st, after he has made his 
statement. 

As I have stated several times within the last 
few days, it is tlien proper for any member of the 
Council to move to make such disposition of the 
dispute as may appear wise to the Council in view 
of the statements made. So that the Representa- 
tive of Iran should, in my opinion, be asked, in 
accordance with the resolution of the Representa- 
tive of Egypt, first to state his views concerning a 
question of postponement; then, if the Council 
desires to postpone further consideration for one 
day, or two days, or any other time, the Coimcil 
can do it. If no one wishes to postpone it, then 
we will proceed to the consideration of the sub- 
stance of the dispute. 

That, Mr. President, is my idea of the procedure 
that should be followed and is the explanation I 
desired to make before the last vote was taken.^ 



Confirmation of 
John G. Winant 

On ]\Iarch 28. 1946 the Senate confirmed the 
nomination of John G. Winant to be the repre- 
sentative of the United States on the Economic 
and Social Council of the United Nations. 

' The proiMsal of the Egyptian Delegation was adopted 
by 8 affinnative votes. 



FULLER — Continued from page 553. 

sabotage our own work by a premature withdrawal 
or relaxation of controls through refusal to admit 
the long-term nature of our commitments. 

Emergent problems are many. Can Germany 
be democratized and permanently pacified with- 
out a thorough-going reform of the socio-economic 
structure? To what extent can such a reform be 
imposed and enforced by military government'^ 
Can the Germans themselves be trusted to effect 
and maintain minimum required reforms? In 
this resj^ect there is marked contrast between 
Soviet policy, which is positive and aggressive, 
and British and American policies, which rely 
mainly on such negative methods as the exclusion 
of Nazis, militarists, and anti-democratic elements 
from public life and leave the formulation of posi- 
tive political programs to the Germaais them- 
selves. How can denazification be made a just and 
effective screening process that will exclude from 
influence all, but only, evil and dangerous ele- 
ments? Can war criminals be punished without 
creating a new martyrology? Can millions of 
German refugees from the east be assimilated into 
a nation already overcrowded and with its econ- 
omy seriously disabled? And how can repara- 
tions be exacted and German war potential eradi- 
cated without destroying or unduly weakening the 
foundations of a wholesome economic life pre- 
requisite to democratic reformation? 

Differences have arisen on these and other issues, 
but not fatal differences. The area of agreement 
is being slowly but continually enlarged. Some 
exceedinglj' stubborn obstacles have been over- 
come. The political reconstruction oi Germany 
can follow no rigid bluepi'int, nor can a nation be 
remade over night. Tlie rebui'ding of the Ger- 
man state can proceed no nH)re rapidly than the 
development of rational political concepts among 
the Germans and the habituation of the German 
citizenry to democratic practices. It must be con- 
tingent upon the accomplishment of Allied ob- 
jectives for Germany and continued four-power 
harmony and cooperation. The stakes are high. 
Failure would mean a serious set-back, success a 
major triumph, in the consolidation of a new and 
peaceful Europe. 



The Record of the Week 



The American Press Associations: An Opportunity 

and Responsibility 

BY ASSISTANT SECRETARY BENTON 



[Released to the press April 1] 

I am going to talk toniglit about the Associated 
Press and its role in the post-war world. 

I am going to make some direct charges about 
the Board of the Associated Press that are painful 
to make and may not be pleasant to hear. These 
explain why the AP Board have not lived up to 
their responsibility to the people of the United 
States by their decision to prohibit the use of their 
service in our short-wave voice broadcasting — a 
decision which jarecipitated the same action by the 
United Press. 

This is not a private or personal squabble be- 
tween me and Robert McLean, President of the 
AP, or Kent Cooper, whom I do not know, or the 
AP Board of Directors. Nor is this merely a con- 
troversy between the AP Board and the United 
States Government. Nor is it a case of ojjposition 
by the AP to the State Department's proposed 
program of information and cultural exchanges 
in foreign countries, for Mr. INIcLean has publicly 
endorsed our entire proposed nine-point program 
with the exception of one — short-wave broadcast- 
ing — and his exception deals only with about 15 
to 20 percent of our short-wave broadcasting 
output. 

The framework is the emergence of a great new 
problem and responsibility that is an integral part 
of the startling new world in which we live. My 
criticisms do not reflect on the honor or integrity 
of the members of the Board of Directors of the 
AP. I am glad that Mr. Sulzberger, one of the 
moving forces of the AP, is here tonight, and I 
have been invited to meet with the whole Board 

Address delivered before the New York Newspiiper- 
woiiien's riiih in New York, N. Y., on Mar. 31, 1946. 



on April 17. Nor do my criticisms reflect on the 
Board's judgment, in the conventional sense, as 
businessmen and newspapermen and keen builders 
of a great news service. 

Boiled down, my criticisms are that the AP 
Directors have allowed certain considerations to 
determine their decision — considerations which 
may have been valid in a world that no longer 
exists — in a world which disappeared in the great 
plumes of atomic flame rising over the New Mexico 
desert last July — but which should not control 
such a decision in today's world. 

Our privately owned and operated, free, com- 
petitive wire services are the finest and most im- 
partial yet developed in this world. Their present 
program of expansion in service to other countries 
is an important national asset. The large-scale en- 
trance of the AP into this field is heartening. The 
State Department should do all it legitimately can 
to help break down barriers to such expansion and 
to encourage the free flow of news throughout the 
world. The three American wire services, both 
at home and in their activities abroad, are going 
to have a lai'ge hand in deciding whether this is 
to be a post-war world — or a pre-war world. 

Now for some general observations which apply 
to all three of the services : 

All of the world's communities should be the 
goal of the AP, the UP, and the INS, instead of 
just some of them. This goal should include a 
great increase in the volume of news available to 
every foreign editor directly from American 
sources — perhaps as much as the 50,000 words a 
day laid down by the wire services for many a 
small American paper. 



574 



APRIL 7, 1946 



575 



Our Americun services, if they sire to be truly 
great in fact, must even more energetically explore 
the latest techniques and technological develop- 
ments in communications. They must aggressively 
develop multiple scattered broadcasts, which can 
simultaneously blanket the whole world at a 
startlingly low cost. 

In their forthcoming book, "Peoples Speaking 
to Peoples", Llewellyn AVhite and Robert Leigh 
state, "The British have discovered that the prep- 
aration and distribution of upward of fifty thou- 
sand words daily to more than three thousand 
newspa]:)er customers in every part of the world 
is actually less expensive than Renter's pre-war 
point-to-point service to some three hundred 
metropolitan cities. The French and Russians 
already have inaugurated similar services, and it 
is to be hoped that AP, UP, and INS will not per- 
mit their pre-war attachment to the older, more 
"exclusive" higher-profit-per-unit methods to 
stand in the way of doing their full share in the 
task of improving understanding among peoples." 

Further, if our American wire services are to 
be great in fact,, they must more energetically ex- 
pand the writing of news specially keyed for 
foreign readers. Such news would contain ex- 
l)lanations and backgrounds which are adapted 
to the comprehension of people unfamiliar with 
our customs and laws. 

This coverage can empliasize the day-by-day 
life of the Amei'ican people as well as the bizarre, 
the spectacular, or the gory, which may today be 
the more readily salable. It can tell about the 99 
percent of our workers who are not on strike, the 
thirty-odd million youngsters in our schools who 
are not budiling gangsters, the 60 million married 
men and women who are not getting divorces. 
There are millions of Americans who are working 
to promote religious and racial tolerance. 

The OWI and the OIAA pioneered in this type 
of foreign news service during the war. They 
had much to learn : and they learned nuich. Such 
news tells the foreign reader the American facts 
which underlie American news and which make 
it more comjirehensible. How can you under- 
stand Congress, if you are a Bulgarian, if you 
have no knowledge of the Constitution and our 
democratic processes ? 

Will the wire services in this post-war world 
more energetically pursue the development of 
their service to foreign countries? Will tliey rec- 



ognize the great need for its improvement? \Vill 
they show more positively that they are aware of 
todaj''s startling new world, its implications and 
its needs? I am going to quote Mr. Sulzberger's 
newspaper on those implications and needs. 
These words appeared on that unforgettable day 
after the world learned of the existence and use 
of the atomic bomlj. Of all the millions of words 
written, I think none are more powerfvd than 
these, taken fi-om a New York Times editorial: 

"But in the bewilderment that suth a stu- 
pentlous announcement must bring, one conse- 
quence stands clear. Civilization and humanity 
can survive only if there is a revolution in man- 
kind's political thinking . . . we must change our 
accustomed ways of thinking far more rapidly 
than we have ever had to change them Ijefore . . . 
Wherever the press and information and discus- 
sion are free, wherever the facts are known and 
government is really the choice of a liberated 
l)eople, that people will want peace and can force 
its government to keep the peace." 

Those are fine words and frank words. But 
their power is only released when they are trans- 
lated into action. I commend these words to the 
Board of Directors of the Associated Press and to 
Mr. Sulzberger as one of the AP Directors. Can 
the Board of the AP change its "accustomed ways 
of thinking"? The task of informing the world 
about the L^nited States is not only a matter of 
expansion of an existing business. It is an en- 
tirely new job, needing an entirely new viewpoint 
which involves deep and sympathetic understand- 
ing of the direct relationship of such work to the 
cause of peace. Yes, it involves changing the 
ways of thiidving of the AP Board '"far more rap- 
itUy than ever before." 

Today at Niirnberg and elsewhere war crimi- 
nals are being tried. They are the former rulers 
who plunged the world into war. But they might 
well have l)een powerless if their peoples had 
known the truth about the United States. The 
war was made certain by their lack of knowledge, 
just as a new war is possible if the same lack of 
knowledge continues — if the same distortions 
about us are not combated with the truth. 

The peoples of the world did not know we were 
powerful — powerful beyond their wildest dreams 
of their own power. They were told we were weak 
and divided, our economy out of kilter, our people 
starving — and thev believed it. 



576 



DEPARTMENT OF STATE BULLETIN 



They were told we were soft and flabby, wishy- 
washy and scared — and they believed it. 

They were told, above all, that the American 
system is no good, that it doesn't work, that democ- 
racy is hypocrisy and so-called ''freedom" a joke. 
They were told that our leaders — government, in- 
dustrial, labor, and press — were scoundrels, that 
our culture was semi-barbaric, our ideals tainted, 
our morals base. And they believed all this. 

Now, I have not come here tonight to tell you 
that the Associated Press and the United Press 
and International News Service have the respon- 
sibility to provide a comprehensive program of 
information, knowledge, and cultural interchange 
for the rest of the world abroad. The American 
people have that responsibility themselves through 
their government. To the extent that the wire 
services voluntarily participate in this program, 
they share that responsibility with the rest of the 
American people. 

Their responsibility takes two forms. The first 
is to expand their volume and coverage and greatly 
improve their newsfiles. This, I believe, they will 
find is good business. The second is not to oppose 
or hamper the conduct of the balance of the pro- 
gram because of outmoded thinking and baseless 
fears. The AP and UP are now hampering the 
conduct of foreign policy of the United States in 
the govermnent's operation of the vital inter- 
national voice broadcasting. 

The AP Board charged, "that Government can- 
not engage in newscasting without creating the 
fear of propaganda which necessarily would re- 
flect upon the objectivity of the news services from 
which such newscasts are prepared." 

You will note that the Board did not charge 
that newscasting was propaganda. They merely 
raised the fear of propaganda. Are these pro- 
grams in fact propaganda ? 

Eoscoe Drummond, chief of the Washington 
Bureau of the Christian Science Monitor, and one 
of the capital's most respected cori'espondents, re- 
ported last week that he had just read 60,000 words 
from the scripts of our short-wave broadcasts, over 
a repiesentative 48'-hour period when important 
news was breaking. "The State Department," Mr. 
Drvunmond concludes, "is performing a needed, 
intelligent, and notably objective job in its news 
radiocasting to foreign countries ... Its pur- 
pose, as evidenced by the radiocasts themselves, 
is not to wage an aggressive propaganda war 



around the world. Init to present to distant peoples, 
who often have little access to world news and 
less to American news, a faithful, factual, balanced 
day-to-day report about what they can't afford 
not to know from the United States." 

Thus, if it isn't propaganda that is the worry 
of the AP Board, what is it^ The AP Board 
charges that our broadcasting will be lahellcd 
propaganda by many people abroad, even if it 
isn't, because of the Government's sponsor-ship. 
They charge that this label will reflect upon the 
AP reports quoted in the broadcasts. 

Before the war many a foreign government cor- 
rupted its national wire service through subsidies 
and otherwise. Such corruption often made these 
services more propaganda services than news serv- 
ices. The AP Board argued that it didn't want to 
risk any such suspicion cast upon itself. 

The idea that the United States Government 
would in fact influence or corrupt the AP service 
is manifestly absurd. Any government official who 
attempted it would be ridden out of government 
by the press and by the Congress. Thus the alleged 
problem is purely one of fear and not of fact. Is 
the fear justified? And is the allegation the real 
explanation? Is there more hei-e than appears on 
the surface in the AP's brief .statement? 

I do not believe the alleged fear is justified. 
The AP can find other and better ways to prove 
to the world that it is independent of government 
control. Doesn't its daily file prove it ? Surely the 
"AP can develop enough skill in salesmanship to 
meet this alleged sales resistance. The INS is 
finding other ways. Such better ways can help 
show the world what we mean by a free press here 
in this countrj'. In educating the AP cu.stomers 
to the fact it can treat the United States Govern- 
ment as a customer, Avithout corrupting itself, the 
AP can help educate the world on the Bill of 
Rights. Further, this is in the best long-run inter- 
ests of the Associated Press, as well as those of the 
people of the United States. 

If you in this audience had exposed yourself to 
this problem, as I have, it wouldn't take you long 
to find out that there were other and powerful 
factors which motivated the action of the Board 
of the Associated Press, in addition to its allega- 
tion. 

Let's look at the first unacknowledged reason. 
It was plain dislike of government — an attitude 
of "if it's the government, I'm against it." I too 



APRIL 7, J 946 



577 



dislike bureaucracy and red tape. I too fear 
excesses by government otlicials. But there are a 
good many people who go much farther than that. 
They don't like anything about government that 
concedes its responsibilities or its authoritj'. They 
welcome any opportunity to take a crack at it — 
lit any level of the anatomy. They do not dis- 
tinguish between legitimate partisanship on broad 
domestic issues and the problems abroad which 
involve our national security and which all of us 
Americans share in common. 

This is precisely the way some of the AP 
Directors felt, even if subconsciously. "When this 
matter came up, the Board lunged out blindly, 
partly because it was the U. S. Government with 
wliich they were dealing. You will note that they 
have not yet lunged out at foreign-government - 
controlled radio — such as the Canadian Broad- 
casting Corporation, BBC, Radio Bogota, or the 
Russian Tass — all of which they supply with their 
service. Will they please explain to all of us their 
justification, from the standpoint of the issues 
under discussion this evening, for providing their 
service to the Russian Government and the British 
Government, but not to their own ? 

The listener in Bulgaria today who cannot get 
AP service in his newspaper cannot get it from 
the Voice of America broadcasts either. But the 
British, the Italians, and the Russians can tell him 
that, if he wants AP service, he can get it by lis- 
tening to them. The AP itself has put the unjus- 
tified taint of propaganda on the "Voice of America 
broadcasts. 

Now for the second luiacknowledged reason for 
the decision of the AP Board. This was perhaps 
more powerful. It was the fear of competition. 
Some of the Board members who made the decision 
persisted in fearing that the Government was 
going to operate a rival wire service. They didn't 
want this Government competition. I didn't want 
it either. I was in process of killing off the Morse 
Code service, which was developed by the war 
agencies and which was in fact competitive. A 
phone call to me from the AP would have deter- 
mined this. 

A second kind of competition which they feared 
is that old bogey, voice broadcasting of news. 
That fear on the part of many newspaper pub- 
lishers goes back many, many years. 

I don't need to remind you of the devices that 
newspapei-s discussed to stop the advance of domes- 



tic radio. Many tried to get together to stop 
listing radio programs in their papers. Many 
tried to keep news from being broadcast, by 
refusing news service to radio stations. Many 
tried to keep broadcasting stations from announc- 
ing any news before it had appeared on the streets 
in their papers. 

Well, what happened ? Radio went on, built up 
its invaluable news broadcasting — and more news- 
papers were sold than ever. Radio did not cut into 
newspaper circulation. It actually stimulated in- 
terest in reading the newspapers. It obtained new 
readers for them, just as it developed new fans for 
baseball and the opera. 

Now the old bogey is arising again in the field 
of newscasts outside the United States. Some of 
the same men are riding the same old wooden 
sawbuck. They fear that voice broadcasting will 
be pirated and will interfere with their signing 
up foreign newspapers for their wire service. This 
fear is just as unwarranted as it ever was, and it 
will end in the same way. 

My own judgment is that the BBC broadcasts 
are promotion for Reuters. Surely the Russians 
believe that their broadcasts are promotion for 
Tass. Can the Voice of America broadcasts pos- 
sibly be competitive to the AP, the UP, and the 
INS? "Wlien the listener in Iran, into which no 
American wire service goes, learns to listen to the 
Voice of America he will want to read American 
news in his papers. His paiiei'S are more likely 
to buy the AP— // the UP or the INS don't get 
there first. If there is some pirating, it will make 
it easier, and not more difficult, for the salesman 
to walk in and land the contract. Our experience 
in Latin America demonstrates this. 

Now we come to the third unacknowledged rea- 
son for the AP's cancellation of its service to the 
Government — the rivalry between the wire serv- 
ices themselves. I think this may have had more 
to do with the decision than anything else. 

For many years the United Press had main- 
tained an extensive .service to foreign countries. 
In selling its service the UP has had to compete 
with Reuters, Havas, Domei, DNB, Stefani, the 
AP, and other services. One of the main selling 
points of the UP has been its complete independ- 
ence of government and of cartel deals. 

Because of its virtue, as well as its product and 
its skill in selling, the UP prospered in market 
after market. It showed the AP its foreign heels. 



578 



DEPARTMENT OF STATE BULLETIN 



Now, the Associated Press is developing in many 
new foreign markets. It needs sales arguments 
and will have them, particularly if it can get the 
jump on the UP. It wants to show that the AP is 
virtuous too. The State Department seemed an 
easy punching bag for a quick sales advantage. 

These three unacknowledged reasons, I believe, 
largely motivated the AP executive staff and 
Board. Many members of the Board were uncon- 
scious of the full motivations themselves. They 
acted on inadequate data from their staff. They 
allowed unwarranted or outmoded fears, pride and 
prejudice, and minor innnediate connnereial con- 
siderations to direct a decision against their own 
best long-run interests. 

My mail shows tliat many forward-looking, 
intelligent editors and publishers of America have 
learned enougli about the problem I liave discussed 
this evening to oppose the action of the AP Board. 
Many are increasingly alert to the necessity of 
transmitting information about our country over- 
seas. If all the facts were known and imderstood 
by the AP membership and if a fair vote could be 
taken, I am confident that this vote would repudi- 
ate the actions of the AP Board. The New York 
State Publishers' Association, not long ago, voted 
unanimously in favor of the State Department in- 
formation program. So did the Kentucky Press 
Association. These are the only two that have 
voted. 



I have hopes that the Board of tlie AP will take 
the time to understand the issues. If it does, I am 
sure a formula can be developed which will again 
make the AP service avaihible to the American 
l)eople through their Government for overseas 
broadcasting. The Government must go to any 
i-easonable length to reassure the Board on the 
integrity of its operation and the protection of the 
AP service from unwarranted or harmful charges. 

Consider the AP"s stated reason f<n' withdraw- 
ing its service and the three unstated reasons I 
liave added. Combine them into a total — the Four 
Fears of the Board of the Associated Press — fear 
of a propaganda label, fear of government, fear of 
competition, and fear of the sales ability of other 
services. Lay these Four Fears along side the 
statement of the New York Times: "Civilization 
and liumanity can survive only if there is a revo- 
hition in nuinkind's political thinking." Then ask 
yourselves whether the action of the directors of 
tiie Associated Press is of the kind that will help 
civilization and humanity to survive. 

Where the alternatives are, on the one hand, tlie 
greatest threat of mass obliteration the world has 
ever known, and on the other the necessity for the 
greatest and quickest spread of understanding 
among tlie jDeoples of the world that lias ever been 
attempted, can this action be called living up to 
the responsibility of a free press in the post-war 
workl ? 



TRADE PROPOSALS— Continued from page 564 

trade and investment in accordance with com- 
parative efficiencies of production. 

"3. Signatory nations will make arrangements, 
both individually and collaboratively under the 
general sponsorship of the Economic and Social 
Council of the United Nations Organization, for 
the collection, analysis, and exchange of informa- 
tion on emijloyment problems, trends, and policies. 

"4. Signatory nations will, nnder the general 
sponsoi'ship of the Economic and Social Council, 
consult regularly on employment problems and 
hold special conferences in case of threat of wide- 
spread unemployment." 

Such an undei'taking, if accepted by this and 



by other nations, will sui)plement and reinforce 
the pledge made by the members of the United 
Nations ". . . to take joint and separate ac- 
tion in coojjeration with the Organization for the 
achievement of . . . higher standards of living, 
full employment, and conditions of economic 
and social progress and development". It will 
provide the basic framework under which this 
pledge can be implemented. It recognizes the 
essential fact that the problem of wide-spread un- 
employment and of international trade and finance 
are inseparably related, and that solutions for 
such problems must be sought through mutually 
consistent and collaborative measures which give 
due recognition to the interests of all nations. 



APRIL 7, 1946 



579 



Enforcement Program Against Dealing With Persons and 
Firms on Proclaimed List 



[Released to the press March 29] 

Statement hy the Department of State 

It is and will continue to be the avowed policy 
of this Government to apply a vigorous enforce- 
ment program against dealing with i)ersons and 
firms on the I'roclaimed List of Certain Blocked 
Nationals. Failure to obtain a Treasury license 
before engaging in trade or communication with 
such persons and firms constitutes a violation of 
the Trading with the Enemy Act and regulations 
issued thereunder and subjects the offender to 
severe penalties. Recent revisions of the Pro- 
claimed List do not in any way lessen the obliga- 
tions of persons and firms subject to the jurisdic- 
tion of the United States to observe all the regu- 
lations relating to the List. 

It already has been pointed out that many of the 
recent deletions from the Proclaimed List were 
made as a result of the changed security situation 
and that such deletions did not by any means 
imply that all deleted firms now are satisfactory 
representatives for American business. In this 
connection, American businessmen are cautioned 
not to establish or resume commercial or financial 



relations abroad with ex - Proclaimed List na- 
tionals before checking with the Commercial In- 
telligence Branch of the Department of Commerce 
as to the desirability of such relations. Ikisiness 
connections with former Proclaimed List indi- 
viduals and firms, except those who have been 
deleted from the Proclaimed List without preju- 
dice, would have to be a factor considered in cases 
arising for the protection of American interests 
abroad. While our Government always will pro- 
tect the legitimate rights and interests of Ameri- 
can business abroad, it would not wish to take any 
action which would assist those who formerly had 
worked against our vital national interests and 
who might do so again if opportunity offered. 

The Department of Commerce is prepared to 
supply information about the local standing of 
persons and firms, including those previously 
listed, and to submit detailed information about 
the suitability of these and other foreign firms and 
individuals as trade connections from a conuner- 
cial and mercantile standpoint. 

Made on belialf of the Government agencies concerned 
with the Proclaimed List of Certain Bloclced Nationals. 



Amendments to U. S.-U. K. Patent Interchange Agreement 



[Released to the press March 29] 

On March 27, 1946, the Governments of the 
United States and of the United Kingdom 
reached agreement on amendments to the Patent 
Interchange Agreement of August 24, 1942. The 
amended agreement was signed by Dean Acheson, 
Acting Secretary of State, and Lord Halifax, the 
British Ambassador. 

Under the terms of the Patent Interchange 
Agreement, the United States agreed, pursuant 
to the authoritj' of the Lend-Lease Act, to fur- 
nish (xreat Britain with licenses under American- 
owned British i)atents for use in war production. 



and, similarly. Great Britain agreed to furnish 
to the United States licenses under British-owned 
American ^^atents. 

The amendments are intended to avoid post- 
war infringement litigation arising out of each 
government's use in war production of patents 
owned by nationals of the other government. 
The amendments contain provisions describing, 
clarifying, and implementing the indemnities of 
the two governments, and incorporate into the 
Patent Interchange Agreement provisions which 
meet practical jjroblems which presented them- 
selves during the conduct of operations under this 
agreement during the war. 



580 



DEPARTMENT OF STATE BULLETIN 



U.S.-U.K. Agreements on Lend-Lease, Reciprocal 
Aid, and Snrplns War Proj^erty 



[Released to the press March 27] 

On December 6, 1945 the Governments of the 
United States and of the United Kingdom reached 
agreement on settlement of lend-lease, reciprocal 
aid, surplus war property, and caims.^ The texts 
of the agreements were mutually accepted on 
March 27, 1946 by the two Governments in a 
memorandum signed by Dean Acheson. Acting 
Secretary of State, and the Earl of Halifax, Brit- 
ish Ambassador to the United States. 

The agreements cover the following subjects: 

1. Agreement I — Lend-Lease and Reciprocal 
Aid Pipelines and Offsetting Arrangements. This 
agreement covers the delivery of tlie lend-lease and 
reciprocal aid "isipe-line" after V-J Day, consist- 
ing generally of goods in process of procurement 
or delivery on that date. The "pipe-lines" are to 
be paid for on the basis of actual costs. The bills 
will be accumulated and, together with the net 
amount of claims indicated in agreement II, will 
be ofl'set against each other to determine part of 
the amount due to the United States in the 
settlement. 

2. Agreement II — Settlement of Intergovern- 
mental Claims. This agreement lists the hereto- 
fore unsettled claims of each Government accepted 
by the other, arising out of the war, and provides 
for waiver of all other unsettled war claims be- 
tween the two Governments. 

3. Agreement III — Civilian. Holdings. This 
agreement transfers title to lend-lease stocks held 
by the United Kingdom civilian authorities and 
reciprocal-aid stocks held by the United States 
civilian authorities on V-J Day, both of which are 
to be paid for as part of the $650,(X)0,000 settle- 
ment provided in the joint statement of Decem- 
ber 6, 1945. 

4. Agreement IV — Military Holdings. This 
agreement covers the lend-lease stocks held by the 

For complete texts of the agreements, see Department 
of State press release 195 of Mar. 26, 1946. 
' BuiXETiN of Dec. 9, 194.'5, p. 910. 



United Kingdom armed forces (except petroleum, 
ships, and non-combat aircraft) and reciprocal- 
aid stocks held by the United States armed forces. 
The United States retains full recapture rights, 
but has indicated that it does not intend generally 
to exercise these riglits. The United Kingdom is 
responsible for making arrangements for returns 
requested by the United States. United States 
consent must be obtained for any transfers of such 
holdings for military use to third governments and 
for diversions for civilian use in countries outside 
the United Kingdom and its colonial dependencies. 
Comparable provisions as to recapture rights and 
military retransfers cover reciprocal-aid stocks 
held by the United States military forces. 

5. Agreement V — Lend-Lease Aircraft (Non- 
Comhat) and Spares. This agreement transfers 
title to specified lend-lease transport -type aircraft 
(and spares) retained by the United Kingdom for 
military and civilian use, and provides for leasing 
additional transport aircraft. Payment will be 
made as part of the $650,000,000 settlement pro- 
vided in the joint statement of December 6, 1945. 
Other transport aircraft are to be returned to the 
United States. Combat aircraft are governed by 
the Military Holdings Agreement, no. IV. 

6. Agreement VI — PetrolC'iim. Tliis agreement 
defines the United States lend-lease share of petro- 
leum stocks held by the United Kingdom and the 
United Kingdom reciprocal-aid share oi stocks 
held by the United States authorities. Each gov- 
ernment may withdraw specified amounts of petro- 
leum jjroducts from its share of stocks for use by 
its military forces without payment to the other. 
Title to lend-lease stocks other than those reserved 
for withdrawal by United States authorities is 
transferred to the United Kingdom. Similarly 
United Kingdom reciprocal-aid stocks are trans- 
ferred to the United States authorities. Payment 
for stocks so transferred will be made as part of 
the $650,000,000 settlement provided in the joint 
statement of December 6, 1945. 



APRIL :. ;y46 



581 



7. Agreement VII — Lend-Leasc and ReciprocaJ 
Aid Inxt(ill(if'ion!<. Each Governnieiif ;u-qnires the 
lend-lease or reeiproeal-aid eDinpoiieiit of instal- 
lations located within its terriloi'V. Payment for 
instal]ation> s-o aciiuired will be made as part of 
the if;(;5().(l()().()00 settlement provided in the joint 
statement of December 6. 1945. Each agrees that 
in the use and disposition of sui'h installations, it 
will not discriminate against the nationals of the 
other Government. Lend-lease installations in 
third countries ai'e to be disposed of bv mutual 
agreement. 

8. Agreement VIII — United States Army and 
Navy Siirptiis Projirrti/ an<I Surplus In.stalJatiotix 
in the United Kingdom. This agreement trans- 
fers to the United Kingdom, subject to certain 
restrictions, all United States Army and Xavy 
surpluses in the United Kingdom. Payment for 
such surpluses will be made as part of the over-all 
financial settlement provided in the joint statement 
of December 6. 1945. 

9. Agreement IX — Tort Claims. The United 
King(h)m has agreed to jM-ocess damage claims 
arising before December 31. 1949 against the United 
States resulting from the presence oi' United 
States forces in the United Kingdom, thereby re- 
lieving our Army and Navy of the necessity of 
maintaining large claims commissions there. The 
United States has made a similar undertaking 
as to claims against the United Kingdom arising 
before February 28, 1946. The amounts paid by 
each Government will be included in the offset 
provided by agreement no. I. 



Can Japan Become a 
Democracy? 

On March 23 the question of whether Japan can 
liecome a democracy was discussed on the NBC 
University of the Air series entitled "Our Foreign 
Policy." Partici])ants in the broadcast were Sen- 
ator AA'illiam F. Knowland, member of the Mead 
Committee; George Atcheson, Jr., Political Ad- 
viser to the Supreme Commander of the Allied 
Powers in Japan: and Brig. Gen. George F. Sluil- 
gen. Deputy Director of the Civil Affairs Division 
of the Wai' Department. 

For text of the broadcast see Department of 
State jDress release 182 of March 23. 



U. S. Supports Italy's Entrance 
Into World Fund and Bank 

Some of the reasons for United States support 
of Italy's entrance into the World Fund and Bank, 
which was announced on March 14 from the Mone- 
tary Conference in session near Savannah, Geor- 
gia, were ex^jlained on Saturday, March 16, by an 
official of the State Department. Italian member- 
ship, he said, is entirely in the interest of all 
Europe; we cannot get Europe back on her feet 
without getting Italy back too. Any recovery on 
the part of 45,000,000 Italians is greatly in the 
world's interest, and membership in the Bank and 
Fund would speed that recovery. While the 
United States has publicly announced its support 
of Italy's application as well as those of Syria and 
Lebanon, Greece has protested proposed Italian 
membership. This will; according to rule, be in- 
vestigated by executive directors. 

Although certain European countries want rep- 
aration payments from Italy, the United States 
holds to principle that, while the country is liable 
to reparations, actual payments should be limited 
to token amounts. It is pointed out that Italy has 
always been weak and became weaker during the 
Fascist regime through its totalitarian form of 
government and its military ventures. When Italy 
surrendered and entered the war on the side of 
the Allies, a large burden wag placed upon her. 
She contributed to the war effort with supplies 
and suffered a considerable drain on her economy. 
Although there is a large charge against Italy for 
the civilian supply program — feeding of civilians, 
et cetera — the country rendered considerable serv- 
ice as a co-belligerent, fighting two years on the 
Allied side. 



Customs 



Brazil — Venezuela 

The models vivendi for most-favored-nation 
customs treatment, signed between Brazil and 
Venezuela on June 11, 1940. will remain in effect 
until September 27, 1946. 



582 



DEPARTMENT OF STATE BULLETIN 



The Greek Elections 



[Ki'Ii-aseU to tbe press March 31] 

Statement released to the press simidtaneoiisly in 
Athens, London, Paris, and Washington hy the 
Chiefs of the Allied Mission to Ohserve the Elec- 
tions in Greece, Ambassador Henry F. Grady of 
the United States, Gen. Amauld Laparra of 
France, and Mr. R. T. Windle of the United 
Kingdom. 

For the past month American, French and 
British observation teams have travelled through- 
out Greece collecting information and reporting 
to the Allied Mission on the conditions relative to 
the holding of elections by the Greek Government 
on March 31st. These elections have now been 
held. The judgment of the Mission on whether 
these elections were fair and free can be reached 
on!}' after reports from all over Greece, prepared 
by observer teams on election day and a short 



period thereafter, have been collected and evalu- 
ated. Before complete information is at hand, any 
conjectures by the Mission would be premature. 
In order to insure the availability of all perti- 
nent material, the week following the elections 
will be used for the preparation of the fully docu- 
mented report of the Allied Mission which will be 
made ready for signature by the three Chiefs of 
Mission on the night of Wednesday, April 10th. 
Upon signature the Mission will cable to the Amer- 
ican, French and British Governments and will 
transmit to the Greek Government a summary 
covering the high lights of this report for release 
by them simultaneously in Washington, Paris, 
London and Athens. Original copies of the full 
signed report will then be transmitted to the Greek 
Government and to the Governments of the United 
States, United Kingdom and France. 



Air Services Agreement Between UK and Greece 



The American Ambassador at London has trans- 
mitted to the Secretary of State British Command 
Paper 6722 containing the text of an agreement 
between the United Kingdom and Greece relat- 
ing to air sei-vices in Europe. This agreement, 
which was signed at Athens on November 26, 19-15, 
allots to the United Kingdom two routes between 
London and Athens, one by way of Vienna and 
Belgrade, the other by way of Lyon, Marseilles, 
Genoa, and Naples. Two routes between Athens 
and London to be operated by Greek airlines are 
to be designated later. 

The body of the agreement follows in most re- 
spects the standard form for such lagreements 
recommended by the International Civil Aviation 
Conference at Chicago. An annex to the agree- 
ment embodies a British formula for determining 
capacity, frequencies, and rates. An important 
feature of the annex is a provision for a restricted 
version of the so-called "fifth freedom" privileges. 



whicli allow complete liberty for the transporta- 
tion of air traffic to and from other countries on 
long international air routes. Under the terms of 
the annex the exercise of such larivileges requires 
prior consultation with the other countries along 
the routes in question with regard to whatever ad- 
justments in the passenger capacity of the airlines 
may be necessary. The grant of such privileges 
and any resulting changes in capacity are to b& 
governed by the needs of the territories involved, 
the adequacy of other air-transport services in 
them, the economy of through airline operations, 
and the capacities already allotted under the terms 
of the agreement. 

In a supplementary exchange of notes of the 
same date the United Kingdom gave formal notice 
of termination of the convention regarding air 
transport services signed at Athens May 30, 1939, 
which the new agreement supersedes. 



APRIL 7, 1946 



583 



ir 



rans 



po 



rt Agreements 



AGREEMENT BETWEEN THE UNITED STATES AND GREECE 



The Department of State announced on March 
29 the conchision of a bilateral air-transport 
agreement between the United States and Greece, 
which was signed in Athens on March '27 by the 
American Charge d'Atfaires. Karl L. Rankin, and 
the Greek Minister of Foreign Affairs, Constan- 
tine Rendis. 

The annex to the agreement provides that au- 
thorized United States air services shall obtain 
rights of transit and non-traffic stop in Greek ter- 
ritory, as well as the right of commercial entry 
for international traffic at Athens. The United 
States air route to serve Greece will extend from 



the United States to the Middle East via Ireland, 
France, Switzerland, Italy, Greece, Egypt, Pales- 
tine, Iraq, and Saudi Arabia to India. Reciprocal 
rights are granted to Greek air services to operate 
to the United States on a route to be determined 
at a later date. 

The new agreement with Greece is based on the 
standard form drawn up at the Chicago aviation 
conference, and pei-mits the carriage of so-called 
"fifth freedom" traffic under the principles set 
forth in tlie air-transport arrangement concluded 
between the United States and the United King- 
dom at Bermuda on February 11. 



AGREEMENT BETWEEN THE UNITED STATES AND FRANCE 



[Released to the press March 27] 

The Department of State announced the con- 
clusion of a bilateral air transpoi't agreement be- 
tween the United States and France, which was 
signed in Paris at 10: 30 a. m., E.S.T., March 27, 
by the American Ambassador, Jeiferson Caffery, 
and the French Minister of Foreign Affairs, 
Georges Bidault. The new agreement is substan- 
tially similar to the bilateral arrangement con- 
cluded between the United States and the United 
Kingdom at Bermuda on February 11. The body 
of the agreement includes the so-called "standard 
provisions" drawn up at the Chicago aviation con- 
ference and contains 13 articles which define the 
conditions under which the scheduled airline serv- 
ices of each country shall l)e operated between the 
territories of the United States and France. 

The annex to the agreement contains provisions 
similar to the Bermuda agreement with respect 
to the carriage of Fifth Freedom traffic, the control 
of rates, and other factors relating to the opera- 
tions of scheduled air services. 

Schedules 1 and 2 of the annex describe the spe- 
cific routes to be operated by the airlines of each 
countr}'. In addition to the reciprocal exchange 
of transit rights and stops for non-traffic pur- 
poses, airlines of the United States are accorded 



rights of connnercial entry at the following points 
in French territoi-y : Paris, Marseille, Algiers, Tu- 
nis, Dakar, Pointe-Noire, Brazzaville, Guade- 
loupe, Martinique, French Guiana, New Caledonia, 
Saigon, and Hanoi. French air services are to 
have the right of commercial entry at the following 
points in the United States territory: New York, 
Washington, Chicago, Boston, the United Nations 
site, and Puerto Rico. 

A protocol signed between representatives of the 
two Governments at the same time the agreement 
was concluded provides for certain collateral ar- 
rangements and principles in connection with the 
operation of the agreed routes and services. 

The new agreement supersedes a previous air- 
transport ari'angement signed between the two 
Governments on July 15, 1939, as well as the pro- 
visional arrangement for air services entered into 
l)y notes exchanged on December 28 and 29, 1945. 
The new agreement comes into force immediately 
and is subject to termination on one year's notice. 

Assisting Ambassador Caffery in the negotia- 
tions at Paris were George P. Baker, Garrison 
Norton, and Stokeley W. Morgan of the Depart- 
ment of State ; L. Welch Pogue, Chairman of the 
Civil Aeronautics Board; and Mr. Howard B. 
Railey, Civil Air Attache at Paris. 



584 



DEPARTMENT OF STATE BULLETiy 



FINAL ACT OF THE CIVIL AVIATION CONFERENCE 



Held at Bermuda, January 15 to February 11. 1946 



THE GOVERNMENTS OF THE UNITED STATES 
OF AMERICA AND OF THE UNITED KINGDOM OF 
GREAT KRITAIN AND NORTHERN IRELAND, 

Having decided tii hold between themselves a Confer- 
ence on Civil Aviation, 

Appointed their respective delegates who are listed 
below : — 

Viiiltd .states of America 

George P. Baker (Chairman of Delegation), Direi-tor, 
Office of Transport and Coninninications Polic.v. De- 
partment of State. 

Harli-ke Branch, Member, Civil Aeronautics Board. 

John I). Hickekson, Deputy Director, Office of European 
Affair.s, Department of State. 

Josh B. Lee, Member, Civil Aeronautics Board. 

SroKEi.ET W. Morgan, Chief. Aviation Division. Depart- 
ment of State. 

Geokok C. Neal, General Counsel, Civil .\crona\itics 
Board. 

Garrison Norton, Deput.v Director, Office of Transport 
and Conununications Policy, Department of State. 

L. Welch I'ogue. Chairman, Civil Aeronautics Board. 

Oswald Ryan, Member, Civil Aeronautics Board, 

John Sherman, Liaison Consultant, Civil Aeronautics 
Board. 

United Kingdom 

Sir Henry Sei.f, K.C.M.G., K.B.E., C.B. [Cliuirmaii of 
Deleiintioii), Director-General designate of Civil Avia- 
tion. Ministry of Civil Aviation. 

Sir Wii-ijAM P. Hildreu. Kt., C.B., O.B.E., Director-Gen- 
eral of Civil Aviation. Ministry of Civil Aviation. 

W. J. Bigg, Colonial Office. 

N. J. A. Cheetham, Foreign Office. 

L. J. DuNNKTT, Ministry of Civil Aviation. 

I'eter G. Masefield, Civil Air Attache, British Embassy, 
Wa.shington. 

Who met in Bermuda on January 15, 1940. 

At the first plenary session, Sir Henry Self was elected 
Chairman of the Conference and the Conference was 
divided into two Committees. The luembers of the Com- 
mittees and of the Subcommittees, appointed by the 
respective Chairmen of the Delegations, are listed below : — 

COMMITTEE I 

Rates and Traffic 

Chairman: Sir Henky Self (United Kingdom) 



Members : 



United Kingdom 
Delegates 

Sir William Hildred 
N. J. A. Cheefham 
L. J. Dunnett 
P. G. Masefield 



Advisers 
M, E. Bathurst 
Major J. R. McCrindle 
Vern<in Crudge 



United States 
Delegates 
George P. Baker 
Harllee Branch 
Josh B. Lee 
Stokeley W. Morgan 
George C. Neal 
L. Welch Pogue 
Oswald Ryan 

Advisers 

Colonel S. E. Gates 

W. John Kenney 

Major General L. S. Kufer 

Livingston Satterthwaite 

Consultants 
Harold I'.ixby 
Terrell Drinkwater 
Julius C. Holmes 
John Leslie 
John E. Slater 
James H. Smith, Jr. 



Sub-Committee 1 — Poliey 

Chairman: Sir Henry Self (United Kingdom) 
Members : 
Delegates Delegate 

George P. Baker Sir William P. Hildred 

Stokeley W. Morgan 
L. Welch Pogue 

Sub-Conimitlee 2 — Drafting 

Chairman: Stokeley W. Morgan (Uiiite<l States) 

Members : 

Delegates 



Delegate 
George C. Neal 

Adviser 

Colonel S. E. Gates 



L. J. Dunnett 

Peter Masefield 

Adviser 

M. E. Bathurst 



Sub-Committee 3 — Routes 
Chairman: L. Wfxch Pooue (United States) 



APRIL 7, 1946 



585 



Dtlegates 
Harllee Biaiicli 
Josh B. Lee 
Stokeley W. Morgiiu 
(ieorge C. Neal 
Oswald Ryan 
Jolin Sherman 

Atlrisvrs 
William Fleming 
Colonel S. E. Gates 
Major General L. S. Kiifer 
Comniauder S. Jurika 
Livingston Satterthwaite 

Consultants 
Harold Bixby 
Terrell Drinkwater 
Julius C. Holmes 
John Leslie 
John R. Slater 
James H. Smith, Jr. 



Membebs : 

Deles/at cs 
Big 



W. J. 

N. J. A. Cheethani 
L. .T. Dunnett 
P. G. Masefield 



Adi'iscrs 

M. E. Bathurst 

Major J. R. McCrindle 

Vernon Crudge 



COMMITTEE II 



Ad hoc 



Chairman: L. J. Duiniett (United Kingdom) 



Delegate 

N. J. A. Cheethani 



Delegates 

John D. Hickerson 

Stokeley W. Morgan 

The Final Plenary Session was held on February 11, 
1946. 

As a result of the deliberations of the Conference, there 
was formulated an Agreement between the Government 
of the United Kingdtim and the Government of the United 
States relating to air services between their respective 
Territories, and Aiuiex thereto. (Attached hereto as 
Appendix I.) 

The following re.solution was adopted :- 

Whfeeas representatives of the two Governments have 
met together in Bernuida to discuss Civil Aviation matters 
outstanding between them and have reached agreement 
thereon, 

Whereas the two Governments have to-day concluded 
an Agreement relating to air services between their re- 
spective territories (hereinafter called "the Agreement"), 

And Whekeas the two Governments have reached agree- 
ment on the procedure to be followed in the settlement 
of other matters in the field of Civil Aviation, 

Now Therefore the representatives of the two Govern- 
ments in Conference resolve and agree as follows :- 

(1) That the two Governments desire to foster and en- 
courage the widest pcssible distribution of the benefits of 
air travel for the general good of mankind at the cheapest 
rates consistent with sound economic principles ; and to 
stimulate international air travel as a means of jiromoting 
friendly understanding and good will among peoples and 
ensuring as well the many indirect benefits of this new 



form of transportation to the comnidu welfare of both 
countries. 

(2) That the two Governments reaffirm their adherence 
to the principles and purposes set out In the preamble to 
the Convention on International Civil Aviation signed at 
Chicago on December 7, 1944. 

(3) That the air transport facilities available to the 
travelling public should bear a close relationship to the 
requirements of the public for such transport. 

(4) That there shall be a fair and equal opportunity for 
the carriers of the two nations to operate on any route 
between their respective territories (as defined in the 
Agreement) covered by the Agreement and its Annex. 

(5) That in the operation by the air carriers of either 
Government of the trunk services described in the Annex 
to the Agreement, the interest of the air carriers of the 
other Government shall be taken into con.sideration so as 
not to affect unduly the services which the latter provides 
on all or part of the same routes. 

(6) That it is the understanding of both Governments 
that services provided by a designated air carrier under 
the Agreement and its Annex shall retain as their pri- 
mary objective the provision of capacity ailequate to the 
traflic demands between the country of which such air 
carrier is a national and the country of ultimate destina- 
tion of the traffic. The right to embark or disembark on 
such services international traffic destined for and com- 
ing from third countries at a point or points on the routes 
specified in the Annex to the Agreement shall be applied 
in accordance with the general principles of orderly devel- 
opment to which both Governments subscribe and shall be 
subject to the general principle that capacity should be 
related : 

(a) to traffic requirements between the country of origin 

and the countries of destination : 
(6) to the requirements of through airline operation, and 
(c) to the traffic requirements of the area through which 

the .-lirline passes after taking account of local and 

regional services. 
(71 That insofar as the air carrier or carriers of one 
Government ma.v be temporarily prevented through diffi- 
culties arising from the War from taking immediate ad- 
vantage of the opportunity referred to in paragraph (4) 
above, the situation shall be reviewed between the Gov- 
ernments with the object of facilitating the necessary de- 
velopment, as soon as the air carrier or carriers of the 
first Government is or are in a position increasingly to 
make their proper contribution to the service. 

(8) That duly authorised United States civil air car- 
riers will enjoy non-discriminatory "Two Freedom" privi- 
leges and the exercise (in accordance with the Agree- 
ment or any continuing or subse(|uent agreement) of com- 
merc-ial traffic rights at airports located in territory of 
the United Kingdom which have been constructed in whole 
or in part vi'ith United States funds and are designated 
for use by international civil air carriers. 

(9) That it is the intention of both Governments that 
there should be regular and frequent consultation between 
their respective aeronautical authorities (as defined in the 
Agreement) and that there should thereby be close collab- 
oration in the observance of the principles and the imple- 



586 



DEPARTMENT OF STATE BULLETIN 



mentation of the provisions outlined lierein and in the 
Agreement and its Annex. 

In Witness Whereof the following Delegates sign the 
present Final Act. 

Done at Bermuda the eleventh day of February, 1946. 

This Final Act shall be deposited in the Archives of 
the Government of the United Kingdom and a certified 
copy shall be transmitted by that Government to the 
Government of the United States of America. 



United States of America 

George P. Baker 
Harllee Branch 
Stokeley W. Morgan 
George C. Neal 
Garrison Norton 
L. Welch Pogue 
Oswald Ryan 
John Sherman 



United. Kingdom 

A. H. Self 
W. P. Hildred 
W. J. Bigg 
L. J. Dunnett 
Peter G. Ma.seDeld 



BILATERAL AIR TRANSPORT AGREEMENT BETWEEN THE GOVERNMENT OF THE 
UNITED KINGDOM AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA 
RELATING TO AIR SERVICES BETWEEN THEIR RESPECTIVE TERRITORIES. 



THE GOVERNMENT OF THE UNITED STATES OF 
AMERICA AND THE GOVERNMENT OF THE UNITED 
KINGDOM OF GREAT BRITAIN AND NORTHERN 
IRELAND, 

Desiring to conclude an Agreement for the purpose of 
promoting direct air communications as soon as possible 
between their respective territories. 

Have accordingly appointed authorised representatives 
for this purpose, who have agreed as follows :- 

Article 1 

Each Contracting Party grants to the other Contracting 
Party rights to the extent described in the Annex to this 
Agreement for the purpose of the establishment of air 
services described therein or as amended in accordance 
with Section IV of the Annex (hereinafter referred to as 
"the agreed services"). 

Article 2 

(1) The agreed services may be inaugurated immedi- 
ately or at a later date at the option of the Contracting 
Party to whom the rights are granted, but not before 
(a) the Contracting Party to whom the rights have been 
granted has designated an air carrier or carriers for the 
sijecified route or routes, and (b) the Contracting Party 
granting the rights has given the appropriate operating 
permission to the air carrier or carriers concerned (which, 
subject to the provisions of paragraph (2) of this Article 
and of Article 6, it shall do without undue delay). 

(2) The designated air carrier or carriers may be 
required to satisfy the aeronautical authorities of the 
Contracting Party granting the rights that it or they Is or 
are qualified to fulfil the conditions prescribed by or under 
the laws and regulations normally applied by those 
authorities to the operations of commercial air carriers. 

(3) In ai'eas of military occupation, or in areas affected 
thereby, such inauguration will continue to be subject, 
where necessary, to the approval of the competent military 
authorities. 

Article 3 

(1) The charges which either of the Contracting Parties 
may imixise, or permit to be imposed, on the designated air 
carrier or carriers of the other Contracting Party for the 



use of airports and other facilities shall not be higher than 
would be paid for the use of such airports and facilities by 
its national aircraft engaged in similar international air 
services. 

(2) Fuel, lubricating oils and spare parts introduced 
into, or taken on board aircraft in, the territory of one 
Contracting Party by, or on behalf of, a designated air 
carrier of the other Contracting Party and intended 
solely for use by the aircraft of such carrier shall be 
accorded, with respect to customs duties, inspection fees 
or other charges imposed by the former Contracting Party, 
treatment not less favourable than that granted to na- 
tional air carriers engaged in International air services 
or such carriers of the most favoured nation. 

(3) Supplies of fuel, lubricating oils, spare parts, regu- 
lar equipment and aircraft stores retained on board air- 
craft of a designated air carrier of one Contracting Party 
shall be exempt in the territory of the other Contracting 
Party from customs duties, inspection fees or similar 
duties or charges, even though such supplies be used by 
such aircraft on flights within that Territory. 

Article 4 

Certificates of airworthiness, certificates of competency 
and licenses issued or rendered valid by one Contracting 
Party and still in force shall be recognised as valid by the 
other Contracting Party for the purpose of operation of 
the agreed services. Each Contracting Party reserves the 
right, however, to refuse to recognise for the purpose of 
flight above its own territory, certificates of competency 
and licenses granted to its own nationals by another state. 

Article 5 

(1) The laws and regulations of one Contracting Party 
relating to entry into or departure from its territory of 
aircraft engaged in international air navigation or to the 
operation and navigation of such aircraft while within its 
territory shall apply to aircraft of the designated air car- 
rier or carriers of the other Contracting Party. 

(2) The laws and regulations of one Contracting Party 
relating to the entry into or departure from its territory 
of passengers, crew, or cargo of aircraft (such as regu- 
lations relating to entry, clearance, immigration, pass- 
ports, customs and quarantine) shall be applicable to the 
passengers, crew or cargo of the aircraft of the designated 



APRIL 7, 1946 



587 



air ciin-ifi- or carriers of tlie otlier Contracting Party 
wliili" in llic territory of the first Contracting Party. 

Article 6 

Each Contracting Party reserves the right to withhold 
or revolve the exercise of the rights specified in the Annex 
to this Agreement by a carrier designated by the otlier 
Contracting Party in the event that it is not satisfied that 
substantial ownership and effective control of such car- 
rier are vested in nationals of either Contracting Party, 
or in case of failure by that carrier to comply with the 
laws and regulations referred to in Article 5 hereof, or 
otherwise to fulfil the conditions under which the rights 
are granted in accordance with this Agreement and its 
Annex. 

Article 7 

This Agreement shall be registered with the Provisional 
International Civil Aviation Organisation set up by the 
Interim Agreement on International Civil Aviation signed 
at Chicago on December 7, 1944. 

Article 8 

Except as otherwise provided in this Agreement or its 
Annex, if either of the Contracting Parties considers it 
desirable to modify the terms of the Annex to this Agree- 
ment, it may request consultation between the aeronauti- 
cal authorities of both Contracting Parties, such consulta- 
tion to begin within a period of sixty days from the date of 
the request. When these authorities agree on modifica- 
tions to the Annex, these modifications will come into effect 
when they have been confirmed by an Exchange of Notes 
through the diplomatic channel. 

Article 9 

Except as otherwise provided in this Agreement ,or in 
its Annex, any dispute between the Contracting Parties 
relating to the interpretation or application of this Agree- 
ment or its Annex which cannot be settled through con- 
sultation shall be referred for an advisory report to the 
Interim Council of the Provisional International Civil 
Aviation Organisation (in accordance with the provisions 
of Article III Section 6 (8) of the Interim Agreement on 
International Civil Aviation signed at Chicago on Decem- 
ber 7, 1044) or its successor. 

Article 10 

The terms and conditions of operating riglits which may 
have been granted previously by either Contracting Party 
to the other Contracting Party or to an air carrier of such 
other Contracting Party shall not be abrogated by the 
present Agreement. Except as may be modified by the 
present Agreement, the general principles of the air navi- 
gation arrangement between the two Contracting Parties, 
which was effected by an Exchange of Notes dated March 
28 and April 5, 1935, shall continue in force in so far as 
they are applicable to scheduled international air services, 
until otherwise agreed by the Contracting Parties. 

Article 11 

If a general multilateral air Convention enters into 
force in relation to both Contracting Parties, the present 
Agreement shall be amended so as to conform with the 
provisions of such Convention. 



Article 12 

For the purposes of this Agreement and its Annex, unless 
the context otherwi.se requires : 

(a) The term "aeronautical authorities" shall mean, in 
the case of the United States, the Civil Aeronautics Board 
and any person or body authorised to perform the func- 
tions presently exercised by the Board or similar functions, 
and, in the case of the United Kingdom, the Minister of 
Civil Aviation for the time being, and any person or body 
authorised to perform any functions presently exercised 
by the said Minister or similar functions. 

(b) The term "designated air carriers" shall mean the 
air transport enterprises which the aeronautical authori- 
ties of one of the Contracting Parties have notified in 
writing to the aeronautical authorities of the other Con- 
tracting Party as the air carriers designated by it in 
accordance with Article 2 of this Agreement for the routes 
specified in such notification. 

(c) The term "territory" shall have the meaning as- 
signed to it by Article 2 of the Convention on International 
CiVil Aviation signed at Chicago on December 7, 1944. 

(d) The definitions contained in paragraphs (a), (b) 
and (d) of Article 96 of the Convention on International 
Civil Aviation signed at Chicago on December 7, 1M4 shall 
apply. 

Article 13 

Either Contracting Party may at any time request con- 
sultation with the other with a view to initiating any 
amendments of this Agreement or its Annex which may 
be desirable in the light of experience. Pending the out- 
come of such consultation, it shall be open to either Party 
at any time to give notice to the other of its desire to termi- 
nate this Agreement. Such notice shall be simultaneously 
communicated to the Provisional International Civil Avia- 
tion Organisation or its successor. If such notice is given, 
this Agreement shall terminate twelve calendar months 
after the date of receipt of the notice by the other Con- 
tracting Party, unless the notice to terminate is withdrawn 
by agreement before the expiry of this period. In the 
absence of acknowledgment of receipt by the other Con- 
tracting Party notice shall be deemed to have been re- 
ceived fourteen days after the receipt of the notice by the 
Provisional International Civil Aviation Organisation or 
its successor. 

Article 14 

This Agreement, including the provisions of the Annex 
hereto, will come into force on the day it is signed. 

In Witness whereof the undersigned, being duly author- 
ised thereto by their respective Governments, have signed 
the present Agreement. 

Done in duplicate this eleventh day of February Nine- 
teen-hundred-and-forty-six at Bermuda. 

For the Government of the United States of America 

George P. Baker 
Harllee Branch 
Stokeley W. Morgan 
Garrison Norton 
L. Welch Pogue 
Oswald Ryan 



588 



DEPARTMENT OF STATE BULLETIIS 



For the Goveiniiieut of the United Kingdom of Great 
Britain and Northern Ireland 

A. H. Self 
W. P. Hildred 
W. J. Bigg 
L. J. Dunnett 
Peter G. Masefield 

ANNEX 



For the pni'poses of operating air services on the routes 
specilied below In Section III of this Annex or as amended 
in accordance with Section IV hereof, the desiianated air 
carriers of one of the Contracting Parties shall be accorded 
in the territory of the other Contracting Party the use on 
the said routes at each of the places specified therein of all 
the airports (being airports designated for international 
air services), togetlier with ancillary facilities and rights 
of transit, of stops for non-traffic purposes and of commer- 
cial entry and departure for international traffic in pas- 
sengers, cargo and mail in full accord and compliance with 
the principles recited and agreed in the Final Act of the 
Conference on Civil Aviation held between the Govern- 
ments of the United States and of the United Kingdom 
at Bermuda from Jaiuiary 15 to February 11, 1946, and 
subject to the provisions of Sections II and V of this 
Annex. 

II 

((() Rates to be charged by the air carriers of eitlier 
Contracting Party between points in the territory of the 
United States and points in the territor.v of the United 
Kingdom i-eferred to in this Annex shall be sub.1ect to the 
approval of the Contracting Parties within their respective 
constitutional powers and obligations. In the event of 
disagreement the matter in dispute shall be handled as 
provided below. 

(6) The Civil Aeronautics Board of the United States 
having announced its intention to approve the rate confer- 
ence machinery of the International Air Transport Asso- 
ciation (hereinafter called "lATA"), as submitted, for a 
period of one year beginning in February. 1946, any rate 
agreements concluded through this machinery during this 
lieriod and involving United States air carriers will be 
subject to approval by the Board. 

(e) Any new rate proposed by the air carrier or carriers 
of either Contracting Party shall be filed with the aero- 
nautical authorities of both Contracting Parties at least 
thirty days before the proixised date of introduction ; pro- 
vided that this ))eriod of thirty da.vs may be reduced in 
particular cases if so agreed by the aeronautical author- 
ities of both Contracting Parties. 

((?) The Contracting Parties hereby agree that where: 

(1) during the period of the Board's approval of the 
lATA rate conference inacliiner.v, either any specific rate 
agreement is not approved within a reasonable time by 
either Contracting Party or a conference of lATA is 
unable to agree on a rate, or 

(2) at any time no lATA machinery is applicable, or 

(3) either Contracting Party at any time withdraws 



or fails to renew its approval of that part of the lATA 

rate conference machinery relevant to this provision, 
the procedure de.scribed in paragraphs (c), U) <ind ((/) 
hereof shall apply. 

(c) In the event that power is conferred b.v law upon 
the aeronautical authorities of the United States to fix 
fair and economic i-ates for the transport of persons and 
proiierty by air on international services and to suspend 
proposed rates in a manner comparable to that in which 
the Civil Aeronautics Board at present is empowered to 
act with respect to such rates for the transport of persons 
and proiierty by air within the United States, each of the 
Contracting Parties shall therafter exercise its authority 
in such maimer as to [irevent an.y rate or rates proposed 
by one of its carriers for services from the territory of one 
Contracting Party to a point or points in the territory of 
the other Contracting Party from becoming effective, if, in 
the judgment of the aeronautical authorities of the Con- 
tracting Party whose air carrier or carriers is or are pro- 
posing sncb rate, that rate is unfair or uneconomic. If 
one of the Contracting Parties on receipt of the notification 
referred to in paragraph (c) above is dissatisfied with the 
new rate proposed by the air carrier or carriers of the 
other Contracting Party, it shall so notify the other Con- 
tracting Party prior to the expiry of the first fifteen of the 
thirty days referred to, and the Contracting Parties shall 
endeavour to reacli agreement on the appropriate rate. In 
the event that such agreement is reached each Contracting 
Part.v will exercise its statutory powers to give effect to 
suth agreement. If agreement has not been reached at the 
end of the thirty day period referred to in paragraph (c) 
above, the proiiosed rate may, uidess the aeronautical 
authorities of the country of the air carrier concerned see 
fit to, suspend its operation, go into effect provisionally 
pending the settlement of any dispute in accordance with 
the procedure outlined in paragraph (.g) below. 

(/) Prior to the time when such power may be conferred 
by law upon the aeronantical authorities of the United 
States, if one of the Contracting Parties is dissatisfied with 
any new rate proposed by the air carrier or carriers of 
either Contracting Party for services from the territory 
of one Contracting Party to a point or points in the terri- 
tory of the other Contracting Party, it .shall so notify the 
other prior to the expiry of the first fifteen of the thirty 
day period referred to in paragraph (c) al)ove, and the 
Contracting Parties shall endeavour to rea<h agreement on 
the appropriate rate. In the event that such agreement is 
reached eacb ('ontracting Party will use its best efforts 
to cause such agreed rate to be put into effect by its air 
carrier or carriers. It is recognised that if no such agree- 
ment can be reached prior to the exijiry of such thirty 
days, the Contracting, Party raising the objection to the 
rate may take such steps as it may consider necessary to 
prevent the inauguration or continuation of the service in 
question at the rate complained of. 

(g) When in any ca.se under paragraphs (c) and if) 
above the aeronautical authorities of the two Contracting 
Parties caimot agree within a reasonable time upon the 
appropriate rate after consultation initiated by the com- 
plaint of one Contracting Party concerning the proposed 
rate or an existing rate of the air carrier or carriers of the 
other Contrai'ting I'art.v, upon the request of either, both 



APRIL 7, 1946 



589 



Contractins Parties shall submit the question to the Provi- 
sional International Civil Aviation Organisation or to its 
successor for an advisory report, and each Party will use 
its best efforts under the jwwers available to it to put into 
effect the opinion expressed in such report. 

(ft ) The rates to be agreed in accordance with the above 
paragraphs shall be fixed at reasonable levels, due regard 
being paid to all relevant factors, such as cost of operation, 
reasonable profit and the rates charged by any other air 
carriers. 



tyi The Executive Branch of the Government of the 
United States agrees to u.se its best etl'orts to secure legis- 
lation empowering the aeronautical authorities of the 
United States to fix fair and economic rates for the trans- 
port of persons and property by air on international serv- 
ices and to suspend proposed rates in a manner comparable 
to that in which the Civil Aeronautics Board at present is 
empowered to act with respect to such rates for the trans- 
port of persons and property by air within the United 
States. 



Ill 

(a) ROUTES TO BE SERVED BY AIR CARRIERS OF THE UNITED KINGDOM 
(In both directions; stops for non-traffic purposes omitted) 



Point of Departure 


Intermediate Points 


Destination in U. S. Territory 


Points Beyond 


(Avif one or innrf of the following) 


(Any one or more of the following, if 
desired) 


(.Any one or more of tke following, 
if desired) 


(Any one or more of Ihe following, if 
desired) 


1. London 




New York 


San Francisco and the points 
on Route 7. 


2. London 
Prestwick 


Shannon 

Iceland 

Azores 

Bermuda 

Gander 

Montreal 


New York 

Chicago 

Detroit 

Philadelphia 

Washington 

Baltimore 

Boston 




3.*London 
Prestwick 


Shannon 

Iceland 

Azores 

Bermuda 

Gander 

Montreal 


New York 


(a) New Orleans 
Mexico City 

(b) Cuba 
Jamaica 
Panama 

A point in Colombia 
A point in Ecuador 
Lima 
Santiago 


4. Bermuda 




Baltimore 
Washington 
New York 


Montreal 


5.*Trinidad 

British Guiana 

Jamaica 

British Honduras 


Tobago 
Barbados 
Grenada 
St. Vincent 
St. Lucia 
Antigua 
St. Kitts 
St. Thomas 
San Juan 
Ciudad Trujillo 
Port-au-Prince 
Jamaica 
Cuba 
Nassau 
- Bermuda 


Miami 





See footnote at end of table. 



590 DEPARTMENT OF STATE BULLETIN 

(a) ROUTES TO BE SERVED BY AIR CARRIERS OF THE UNITED KINGDOM— Continued 



Point of Departure 


Intermediate Points 


Destination in U. S. Territory 


Points Beyond 


(Any one or more of the following) 


(.Any one or more of the following, if 
desired) 


{Any one or more of the following, 
if desired) 


{Any one or more of the following, if 
desired) 


6. Nassau 
Cat Cay 




Miami 
Palm Beach 




7. Singapore 
Hong Kong 


Manila 

Guam 

Wake 

Midway 

Honolulu 


San Francisco 


• 



(b) ROUTES TO BE SERVED BY AIR CARRIERS OF THE UNITED STATES 
(In both directions; stops for non-traffic purposes omitted) 



1. *Chicago 


Gander 


London 


Amsterdam 


Detroit 


Greenland 


Prestwick 


Helsinki 


Washington 


Iceland 




Copenhagen 


Philadelphia 


Shannon 




Stavanger 


New York 






Oslo 


Boston 






Stockholm 


Baltimore 


1 




Warsaw 

Berlin 

Frankfurt 

Moscow 

Leningrad 

Points in the Baltic countries 


2. *New York 


Gander 


London 


Brussels 


Chicago 


Greenland 


Prestwick 


Munich 


Philadelphia 


Iceland 




Prague 


Baltimore 


Shannon 




Vienna 


Washington 






Budapest 


Boston 






Belgrade 


Detroit 






Bucharest 

Istanbul 

Ankara 

A point in Iran 

Beirut 

A point in Syria 

A point in Iraq 

A point in Afghanistan 

Karachi 

Delhi 

Calcutta 


3. *Chicago 


Gander 


Lydda 


A point in Iraq 


Detroit 


Shannon 




Dhahran 


Washington 


Greenland 




Bombay 


New York 


Iceland 




Calcutta 


Boston 


Paris 




A point in Burma 


Baltimore 


A point in Switzerland 




A point in Siam 


Philadelphia 


Rome 




A point or points in Indo- 




Athens 




China 




Cairo 




A point or points in China 



See footnote at end of table. 



APRIL 7, 1946 



591 



(b) ROUTES TO BE SERVED BY AIR CARRIERS OF THE UNITED STATES— Continued 



Point of Departure 


Intermediate Points 


Destination in U. K. Territory 


Points Beyond 


(Any one or more of the foUoiving) 


(Any one or more of the following, if 
desire^ 


(Any one or more of the following, 
if desired) 


(Any one or more of the following, if 
desired) 


4. Chicago 
Detroit 
Washington 
New York 
Boston 
Baltimore 
Philadelphia 


Gander 

Azores 

Lisbon 

(a) Algiers 
Tunis 
Tripoli 
Benghazi 
Cairo 

(b) Madrid 
Rome 
Athens 
Cairo 


Lydda 


From Lydda to points beyond 
as described in Route 3. 


5. New York 
Chicago 
Detroit 
Washington 
Philadelphia 
Boston 
Baltimore 


Gander 

Bermuda 

Azores 


London 


(From the Azores) 
Lisbon 
Barcelona 
Marseilles 


6. *San Francisco 
Los Angeles 


Honolulu 

Midway 

Wake 

Guam 

Manila 


Hong Kong 


Macao 

A point or points in China 

A point or pomts in Indo-China 

A point or points in Siam 

A point or points in Burma 

Calcutta 


7. *San Francisco 
Los Angeles 


Honolulu 
Midway 
Wake 
Guam 
Manila 

A point or points in Indo- 
China 


Singapore 


Batavia 


8. New York 
Washington 
Baltimore 




Bermuda 




9. Miami 

Palm Beach 




Cat Cay 
Nassau 




10. Miami 


Points in Cuba 


Jamaica 


(a) Baranquilla via South 
American points to Balboa 

(b) Baranquilla via South 
American points to Trinidad 


11. New Orleans 
Houston 


Points in Cuba 


Jamaica 


Aruba 

South American points 


12. New York 
Miami 


Camagney 
Port au Prince 
Ciudad Trujillo 
San Juan 
Saint Thomas 
Point a Pitre 
Fort de France 


Antigua 
St. Lucia 
Trinidad 
British Guiana 


Via South American points to 
Buenos Aires 



See footnote at end of table. 



592 



DEPARTMENT OF STATE BULLETIN 
(6) ROUTES TO BE SERVED BY AIR CARRIERS OF THE UNITED STATES— Coiitinuod 



Point of Departure 


Intermediate Points 


Destination in U. K. Territory 


Points Beyond 


(Any one or more oj the following) 


(Avy one or more ofthefoUou-iiifi, if 
desired) 


(Ann one or more of the foUowing, 
if desired) 


(Any one or more of the following, if 
desired) 


13. New York 


(a) Azores 


Accra or Lagos 


Leopoklville 




Dakar 




Johannesburg 




Monrovia 








(h) San Juan 








Trinidad 








British Guiana 








Belem 








Natal 








Monrovia 








Ascension Island 







*Notice will be given by the aeronautical authorities of the United States to the aeronautical authorities of the United Kingdom of the route service patterns 
according to which services will be inaugurated on these routes. 



IV 

(a) Aiuenilineiit.s uiaile b.v either Contracting I'artj- to 
the routes described in Section III of this Annex vs'hich 
change the points served in the territory of tlie other 
Contracting I'art.v will he made only after consultation 
in accordance with the provisions of Article 8 of tliis 
Agreement. 

(6) Other i-oute changes desired by either Contracting 
Party may be made and put into effect at any time, prompt 
notice to that effect being given by the aeronautical au- 
thorities of the Contracting Party concerned to the aero- 
nautical authorities of the other Contracting Party. If 
such other Contracting Party finds that, having regard to 
the priiu'iples set forth in paragraph (6) of the Final Act 
of the Conference referred to in Section I of this Annex, 
the interests of its air carrier or carriers are prejudiced 
by the carriage by the air carrier or carriers of the first 
Contracting Party of traffic between the territory of the 
second Contracting Party and the new point in the terri- 
tory of a third country it .shall so inform the first Con- 
tracting Party. If agreement cannot be reached by con- 
sultation between the Contracting Parties, it shall be open 
to the Contracting Party who.se air carrier or carriers is 
or are affected to invoke the provisions of Article 9 of this 
Agreement. 

(c) The Contracting Parties will, as soon as iiossible 
after the execution of this Agreement and from time to 
time thereafter, exchange information concerning the 
authorisations extended to their respective designated air 
carriers to render service to, tlirough and from tlie terri- 
tory of the other Contracting Party. This will include 
copies of current certificates and authorisations for service 
on the routes which are the subject of ttiis Agreement, and 
for the future such new certificates and authorisations as 
may be issued, togetlier with amendments, exemption 
orders and authorised service patterns. 



V 

I (( I Where tlie ninvard carriage of traffic l)y an aircraft 
of different size from that employed on the earlier stage 
of tlie same route (hereinafter referred to as "change of 
gauge") is justified by reason of economy of operation, 
such change of gauge at a point in the territory of the 
United Kingdom or the territory of the United States, .shall 
not be made in violation of the principles set forth in the 
Pinal Act of the Conference on Civil Aviation held at Ber- 
muila from January 1,"> to Febru;uy 11, l!)4li and, in par- 
ticular, shall be subject to tliere being an adetpiate volume 
of through traffic. 

(6) Where diauge i>f gauge is made at a point in the 
territory of the United Kingdom or in the territory of the 
United States, the smaller aircraft will operate only in con- 
nection with the larger aircraft arriving at the point of 
change, so as to provide a connecting service which will 
thus normally wiiit on the arrival of tlie larger aircraft, 
for the primary purpose of carrying onward those passen- 
gers who have travelled to United Kingdom or United 
States territory in the hu'ger aircraft to their ultimate 
destination in the smaller aircraft. Where there are 
vacancies in the smaller aircraft such vacancies may be 
filled with passengers from United Kingdom or United 
States territory respectively. It is understood however 
that the capacity of tlie smaller aircraft shall be deter- 
mined with primary reference to the traffic travelling in 
the larger aircraft normally requiring to be carried 
onward. 

(c) It is agreed that the arrangements under any part 
of tlie preceding paragraphs ( a ) and ( 6 ) shall be governed 
b.v and in no way restrictive of the standards set forth in 
paragraph ((>) of the Final Act. 

A H S. G. P. B. 

W. P. H. H. B. 

L. J. D. S M. 

P. G. M. G. N. 

\y J B. L W P 

OR 



AI'Kll. 



m<t 



593 



HEADS OF AN AGREEMENT FOR USE BY CIVIL AIRCRAFT OF NAVAL AND AIR BASES 
IN AREAS LEASED TO THE GOVERNMENT OF THE UNITED STATES OF AMERICA 
UNDER AN AGREEMENT WITH THE GOVERNMENT OF THE UNITED KINGDOM, 
DATED MARCH 27, 1941. 



Whkreas, by Agrefiiietit of JIaroh 27, l!t41, (liert'iiuiftcr 
refei-i-f(l to as "the Hases Agrt'emeiit" ( the Ooveriiiiieiit of 
the United Kingdom of Great Britain and Nortliern Ire- 
kind agreed to lease for military purposes to tlie Gov- 
ernment of the United States exclusively certain areas 
in the Western Hemisphere in which naval and air bases 
have been constructed with full and continuing rights of 
military use and' control thereof for a period of ;i!i years 
as specified in the Agreement; and 

Whereas. Article XI (5) of the said Agreement piovides 
that "commercial aircraft will not be authorised to operate 
from any of the Bases (save in ease of emergency or for 
strictly military purposes under supervision of the War 
or Navy Itepartments) except by agreement between the 
United States and the Government of the United Kingdom, 
provided that in the case of Newfoundland such agree- 
ment shall be between the United States and the Govern- 
ment of Newfoundland" ; and 

Whkrbas, the Governments of the United States and of 
the United Kingdom desire, in order to facilitate the de- 
velopment of air transportation, at this time to arrange for 
the ail- Bases to be available for use by civil aircraft on 
the conditions hereinafter stated without interfering with, 
restricting or limiting the present military rights of, or 
continued military use by, the United States of the Bases 
in accordance with the said agreement ; 

Now Thehefore, it is .agreed as follows : 

Article I 

The air bases (hereinafter referred to as ''the Bases") 
leased to the United States pursuant to the Bases Agree- 
ment will be open for use by civil aircraft wherever such 
use will contribute to the overall development of civil 
aviation along sound economic lines. 

((/) In accordance with the above principles the fol- 
lowing Bases will be open fcrr regular use by civil aircraft : 

Kindley (Bermuda) 
Coolidge (Antigua) 
Beane ( St. Lucia ) 
Atkinson (British (}uian:i) 

ib) The following lia.ses which are situated in terri- 
tories where adequate civil airports now exist, will be open 
for use by civil aircraft only as bad weather alternates 
until such time as agreement is reached that experience 
or other developments indicate the need for their regular 
use Ii.v civil .-lireraft : 

Carlson (Trinidad) 
Waller (Trinidad) 
Vernam ( Jamaica ) 

The circumstances in which the said Bases will be used 
as bad weather alternates will be determined in the light 



of .-iriy rules established by the Piomsiuiiiil Iiih i iidl iiiiiiil 
Cifil Aviation On/diiixntinii. or its succes.sor, or in the 
absence of such rules by further discussion between the 
two Governments. 

Artiele II 

So long as the I'nited States and the United Kingdom 
are parties to the International Aii- Services Transit 
Agreement signed at Chicago on December 7. 1944, the 
civil aircraft of all countries parties to that Agreement 
ma.\- use the Bases for non-traffic puriioses in accordance 
with the provisions of Section I of Artiele I of that Agree- 
ment. Ill view of the special circumstances in the ease 
of these Bases, countries which are not parties to that 
Agreement liut which are parties to bilateral agreements 
either with the United Kingdom or with the United States 
providing for the privileges specified in the said Agreement 
may utilize the Bases only with the concurrence of both 
the United Kingdom and the United States. 

Article III 

(a) Any duly authorised United States civil air carrier 
utilising the Ba.ses shall be entitled, without prejudice to 
the principles of cabotage, and in view of the special cir- 
cumstances in connection with the Bases, to carry Iwtween 
the Bases referred to in Article I ( o ) hereof : 

(i) United States Government sponsored passengers 
(and their personal effects) travelling at the expense of 
the Government of the United States or on business 
directly connected with the Bases or with United States 
personnel at the Bases ; and 

(ii) Cargo carried at the expen.se of the Government of 
the United States. 

(6) The exerci.se of the privileges granted in these 
Heads of Agreement shall be without prejudice to rights 
(together with any extensions thereof) which may have 
been granted by the Government of the United Kingdom 
(or any of the Colonial Governments concerned) to any 
United States civil air carrier. In view of the special cir- 
cumstances in the case of the Bases, the Governineut of 
the United Kingdom will not grant civil air carriers of 
third countries utilizing these Bases traffic rights incident 
to the use of these Ba.ses be.vond the extent that such third 
countries have granted corresponding rights (though not 
necessarily on the same routes as those operated by the air 
carriers of the third countries concerned) in their respec- 
tive countries to the civil air carriers of the United States. 

(e) No other civil air carrier, including civil air carriers 
of the United Kingilom. will be granted any greater or 
different traffic rights at the Bases than are granted to 
United States civil air carriers at such Bases, provided 
that I'nited States .-Ivil air carriers shall not. bv reason of 



594 



DEPARTMENT OF STATE BULLETIN 



this provision, be entitled to claim the right to carry cabo- 
tage traffic between any two points in the territory (as 
defined in Article 2 of the Convention on International 
Civil Aviation signed at Chicago on December 7, 1944) of 
the United Kingdom (except to the limited extent pro- 
vided in paragraph (a) of this Article) nor shall civil air 
carriers of the United Kingdom be precluded from carrying 
cabotage traffic between the Bases concerned so long as 
United States civil air carriers are entitled to exercise 
tratfic rights at those Bases. 

(d) For the purposes of this Article, the term "civil air 
carriers of the United Kingdom" shall be deemed to include 
those of territories under the sovereignty, suzerainty, pro- 
tection or mandate of the United Kingdom. 

(c) Notwithstanding the termination of the Agreement 
between the Government of the United Kingdom and the 
Government of the United States of America relating to 
air services between their respective territories, signed at 
Bermuda on February 11, 1046, its provisions and those of 
its Annex shall continue to apply to any traffic rights 
which United States air carriers may thereafter exercise 
at any of the Bases referred to in Article I of these Heads 
of Agreement until such time as the Contracting Parties 
may otherwise agree ; provided that the Government of the 
United States shall have the right at any time after fifteen 
years from the date on which tlie Agreement referred to in 
Article XII of these Heads of Agreement becomes effective 
to give notice of its desire that the provisions of the first 
mentioned Agreement and its Annex shall cease to apply, 
on the date specified in the notice but which shall not in 
any case be less than two years after receipt of such notice, 
to the traffic rights exercised by its air carriers at any 
of the Bases referred to above pursuant to that Agreement. 

Article IV 

Subject to the provisions of Article V hereof, civil air- 
craft of the United Kingdom ( including those of territories 
under the sovereignty,, suzerainty, protection or mandate 
of the United Kingdom) shall be entitled to use the Bases 
for non-traffle purposes on terms no less favourable than 
those enjoyed by United States civil aircraft. 

Article V 

(u) The United States military authorities will make 
every reasonable effort to avoid interruption of civil opera- 
tions at the Bases. It is understood, however, that the 
United States military authorities have the right for mili- 
tary reasons, on a non-discriminatory basis, to curtail or 
suspend civil air operations, and, from time to time as may 
be necessary, to impose restrictions of a temporary or 
continuing nature on the use of the Bases by civil aircraft. 

(6) Subject to requirements dictated by military rea- 
sons, no limitation on the use of the Bases by civil aircraft 
will be prescribed, except those predicated upon safety, 
or the capacity of a field or its facilities ; and any such 
limitations will be imposed on a proportionate non- 
discriminatory basis. 

(e) The u.se of the Bases by civil aircraft may likewise 
on a proportionate non-discriminatory basis be limited, 
curtailed, suspended, or subjected to such regulation as 
may l)e necessary for .security reasons by the Colonial 



Goverinnent concerned. In such event that Government 
will give timely notice to the United States military 
authorities. 

Article VI 

Subject to the provisions of Article VIII (6) hereof, 
administrative and operational control of the Bases will 
be exercised by the United States military authorities who 
may, subject to the provisions of Article VII hereof, dele- 
gate the performance of certain services to civilian agen- 
cies. Such delegation will be without prejudice to the 
right of the United States military authorities to resume 
the performance of such services at any time and without 
delay. 

Article VII 

Airport tower control and approach control will be oper- 
ated by or under (he direction of the United States mili- 
tary authorities. The responsibility for area control will 
be reviewed in the light of the studies and recommenda- 
tions of the Route Service Organisation Conference of the 
Provisional International Civil Aviation Organisation, or 
its successor. 

Article VIII 

(a) Discussions shall be held between the two Govern- 
ments with a view to making arrangements for the pro- 
vision of necessary facilities, supplies and services to civil 
air carriers using the Bases, and the Agreement to be 
concluded pursuant to these Heads of Agreement shall 
contain provisions defining such arrangements and shall 
not enter into force until such arrangements have been 
made. 

(6) At each of the Bases where suitable land is not 
conveniently adjacent thereto for the provision of neces- 
sary civil airport facilities, supplies and services and for 
the erection of buildings for customs, immigration, quaran- 
tine and other similar matters of Colonial or United King- 
dom national Interest, the United States military authori- 
ties will, if this is possible without conflict with military 
requirements, designate an appropriate area within the 
boundaries of the Base for such imrposes. Except as 
otherwise specifically provided in these Heads of Agree- 
ment, the provision of the above facilities, supplies and 
services and the conduct of the matters mentioned above 
within the area so designated will be under the control 
and jurisdiction of the Colonial Government in the same 
manner and to the same extent as they would be if they 
were provided or conducted in an area outside of the 
leased area but shall be without prejudice to the right 
of the United States military authorities to resume com- 
plete and unrestricted control and use of the designated 
area and its facilities should this prove to be necessary 
for military reasons of overriding necessity. The terms 
and conditions under which such area will be made avail- 
able will be as approved by the Government of the United 
States after consultation between the two Governments. 

(c) In connection with fire protection, sanitation and 
other matters affecting the military security of the Bases, 
the United States military authorities shall have the 
right, ill collaboration with or after prior notice to the 



APRIL 7, 1946 



595 



local Colonial authorities in the territory concerned, to 
enter uijon and to inspect any buildings or other facilities 
and services erected or provided in any area designated 
under paragraph (6) of this Article for the purpose of 
satisfying themselves that adequate precautionary meas- 
ures are taken in the matters referred to above. If the 
United States military authorities consider that the pre- 
cautionary measures taken are not adequate they shall 
have the right, in consultation with the Colonial authori- 
ties concerned, or, in cases where military reasons so 
require, on their own initiative, to supplement these meas- 
ures to the extent considered necessary. With respect 
to terminal and other faeilitie.s contiguous to the Base 
area, the location, type, size, hazards to .safe oijeration of 
aircraft, sanitation, etc., will be subject to consultation 
between the appropriate local authorities and, as required, 
between the two Governments for the purpose of safe- 
guarding the military use of the Base. 

(d) Civil aircraft using one of the Bases referred to in 
Article I («) hereof .shall load and unload persons, mail 
and cargo only within the area (which shall be either the 
area referred to in paragraph (6) of this Article or out- 
side the leased area), designated for that purpose by the 
Colonial Government concerned. 

Article IX 

The scale of fees to be charged for the ci\-il use of the 
Bases and for facilities, supplies and services to civil air- 
craft using the Bases, will be subject to consultation be- 
tween the local United States military authorities and the 
local Colonial authorities and, as required, between the two 
Governments. The terms and conditions of any sub-lease 
by a Colonial Government to a civil air carrier for terminal 
and other facilities located within the Base area and the 
location, type, size and other pertinent details of the termi- 
nal and other facilities shall be subject to the approval of 
the United States military authorities. 

Article X 

Should the Government of the United States elect for 
military reasons to place one or more of the Bases on a 
caretaker basis: 

(a) The Government of the United States will have no 
further responsibility for maintaining that Base in opera- 
tional condition for civil use ; provided that timely notice 
of intention to place on a caretaker basis is given to the 
Government of the United Kingdom. 

(6) The Government of the United Kingdom or the 
Colonial Government concerned will have the right to 
maintain the Base for civil use ; provided that the Govern- 
ment of the United States at any future time within the 
term of the Bases Agreement and upon appropriate notice 
will have the right to resume the maintenance and opera- 
tional control of the said Base. 

Article XI 

(o) Nothing in these Heads of Agreement will be 
deemed to constitute a limitation or an abrogation of 
(1) any of the rights or privileges accorded to the Gov- 
ernment of the United States by the provisions of the 
Bases Agreement, or (2) the sovereign rights of the Colo- 
nial Governments concerned. 



(6) The two Governments will consult together to decide 
what amendments, if any, to the Bases Agreement will be 
necessary in the light of these Heads of Agreement. 

Article XII 

(a) The two Governments will consult together and pre- 
pare an Agreement giving effect to the terms herein con- 
tained. Such Agreement will become effective on signa- 
ture on behalf of the respective Governments and shall 
continue in effect indefinitely but either of the Govern- 
ments may, at any time after the Agreement has been in 
effect for fifteen years, give to the other notice of termina- 
tion and in such event, the Agreement shall cease to be 
effective twenty-four calendar months after the date of 
receipt of such notice. 

(b) The two Governments hereby agree that while the 
Agreement continues in effect, they will consult together 
not less than once in every five calendar years with a view 
to reviewing the operation of the Agreement and agreeing 
upon any modifications that may be desired. 

((•) The initialling of this document shall not indicate 
that a contract has been concluded. This document is the 
agreed basis of and subje<-t to the preparation of a formal 
contract. In the preparation of tlie formal contract any 
outstanding points, more particularly the points arising on 
Articles VIII and XI, will be resolved. 



UNITED STATES 
Ad referendiiiii 
Subject to reserva- 
tion set out in let- 
ter of even date 
from Chairman of 
United States 
D e 1 e g a tion to 
Chairman of 
United Kingdom 
Delegation 

February 11, 19^6 



O.P.B. 
LSK 

G.N. 



A.H.S 
W.J.B 
W.IVH 



UNITED KINGDOM 
Ad referendum 
Subject to reserva- 
tion set out in let- 
ter of even date 
from Chairman of 
United Kingdom 
D e 1 e g a tion to 
Chairman of 
United States 
Delegation 



Delegation of the United States of America, 

Berimida. February 11, 19^0. 

My dear Sib Henry, 

In initialling to-day the Heads of Agreement with respect 
to the u.se of the 99-year leased bases by civil aircraft, I 
wish to confirm by this letter the oral reservation which 
I have heretofore made on behalf of the United States. 
Final approval and signature by the United States of the 
Agreement to open any of the 90-year leased bases to civil 
aircraft is contingent on reaching satisfactory agreement 
with the Governments of Newfoundland and Canada 
regarding the use by civil aircraft of airfields in Newfound- 
land and Labrador, namely Goose, Gander, Harmon and 
Argentia. 

I am, my dear Sir Henry, 
Very sincerely yours, 

Georgb p. Bakek 
Chairman, United States Delegation. 

Sir Henry Self, K. C. M. G., K. B. E., C. B., 
Chiiirman, United Kingdom Delegation. 



596 



DEPARTMENT OF STATE BVLLETllS 



BiiiiiiKld. Fi'biuiiill II. m.'/H 

My deak Mb. Bakeh, 

You will recall that on l>briuu-.v 9 I informed you that 
the United Kingdom Government wished a reservation to 
be made at the time of the initialling of the Heads of 
Agreement Relating to the civil use of the Base airfields, 
and that they wished Articles VIII and XI to be specifi- 
cally referred to in this reservation as both of these 
Articles provide for discussions on outstanding iioints. 
We have since heai-d from London that the amendments 
which we have agreed upon in Article III of the Heads of 
Agreement do not entirely resolve the doubts felt in Lon- 
don in regard to the commitments already entered into by 
the United Kingdom Government granting traffl^rights 
to Canadian air services operating through Bermuda. I 
therefore take this opportunity of letting you know that 
the United Kingdom Government will wish to discuss this 
question with the United States Government at a later 
stage. 

Very sincerely yours, 

A. H. Seif 
Mr. Gembge p. Baker, 

Chairman, United States Delegation, 
Civil Aviation Conference, 
Bermuda. 



REPORT ON THE BASES DISCUSSIONS 

The discussions on the Bases were conducted by a Com- 
mittee under the Chairmanship of Mr. Garrison Norton 
(United States) and composed as follows: 

U.K. 



U.S. 
Delegates: 
.John D. Hickerson 
John Sherman 



Delegates: 

W. J. Bigg 

N. J. A. Cheetham 

P. G. Masefleld 

L. J. Dunnett 

P. G. Masefleld 



Adrisers:^ Advisers: 

Colonel S. K. Gates M. E. Bathurst 

W. .John Koiiney F. Kennedy 

Major General L. S. Kuter 
Vice-Admiral F. I'. Sherman 

Consiiltaut : 
John Leslie 

There is submitted herewith a draft of Heads of Agree- 
ment which hiis been agreed on with a view to the prepara- 
tion and conclusion of an agreement between the two 
Governments. 

It is recommended that the Bases Agreement of 1041, 
and particularly Articles IV, VI, IX, XII, XIII, XIV, XVI, 
and XVII, be examined with a view to determining how far 
they should apply, if at all, in relation to the u.se of the 
Bases for civil purposes. It is the intention that United 
States mail originating at United States Post Offices estab- 
lished in the Bases under Article XVI of the Bases Agree- 
ment should he included in the arrangement mentioned 
in paragrai>h (a I of Article III of these Heads of Agree- 
ment. 

It is also recommended that examiiuition be made of 
the applicability of Colonial laws and regulations to the 
commercial transactions which may be conducted on the 
Bases. 



The .ihove report was approved at the Final Plenary 
Se.ssion of the Bermuda Civil Aviation Conference Feb- 
ruary 11, 1946. 

Ft>r the United Kingdom Delegation 

A.H.S. 
For the United States Delegation 
G.P.B. 




Organization of the Congress; Ilcpdrt of the Joint C<->m- 
mittee on the Organization of Congress, Congress of the 
I'nited States, pursuant to II. Con. Kes. 18, March 4. 1946. 
S. Kept. 1011, 79th Cong, v, 35 pp. 

Postwar Economic Policy and Pljimiing: Ninth Report 
of the Hou.se Si)ecial Committee on Postwar Economic 
Policy and Planning, pursuant to H. Res. 00, A Resolution 
Authorizing the Continuation of the Special Committee 
en Postwar Economic Policy and Planning: The Use of 



Wartime Controls During the Transitional Period. H. 
Rept. 1677, 79th Cong. Part 1, iv, 113 pp. Part 2— Appen- 
dixes, iii, 65 pp. 

Foreign Educ.-itional Benefits and Surplus Property: Re- 
port of the Connuittee on Military Affairs. S. Rept. 1039, 
79th ('ong.. To accompany S. 1636. ii, 11 pii. | Favorable 
i-eport. ] 



Corrigendum 



In the BULi.KTiN of March 24. 1946, page 472, line 12— 
for First .session, London, April 8- , 1946 read First 
meeting, June or July, 1946. 

PUBLISHED WITH APPROVAL OF DIRECTOR OF BUREAU OF THE BUDGET 
U. S COVERNHENT PRINTING OFFICE tilt 



THE DEPARTMENT OF STATE 




VOL. XIV, NO. 354 



APRIL 14, 1946 



"... we can attain a lasting peace." 

Address by THE PRESIDENT 

The Eole of UNESCO in Our Foreign Policy 

statement by ASSISTANT SECRETARY BENTON 



page 622 



page 62d 



The American Trade Proposals: An International Trade 
Organization 



Article by LOUIS K. HYDE, Jr. 



page 616 



In the Minds of Men (Part II) 

Article by DOROTHEA SEELYE FRANCK . 



page 608 



Germany: Zones of Occupation 

Article bv LAWRENCE A. HOFFMAN 



page 599 



^©NT o^ 



For complete contents 
s'^e inside cover 



Correction 

The date appearing on right 

hand pages of this issue 

should be — 

April 14, 1946 




'■*tes o^ 



"• ^- SUPERINTENDENT OF OOCUMENtS 

MAY 1 i94g 



THE DEPARTMENT OF STATE 



BULLETIN 



Vol. XIV 'No. 354* Tl/% 




Publication 2508 



^iTes o« 



April 14, 1946 



For sale by the Superintendent of Docunienla 

U. S. Government Printing Office 

Washington 25, D. C. 

Subscription: 

52 issues, $3.50; single copy. 10 cents 

Special offer: 13 weeks for $1.00 

(renewable only on yearly baeia) 



The Department of Slate BULLETIN, 
a weekly publication compiler! and 
edited in the Division of Renearch and 
Publication, Office of Public Affairs, 
provides the public and interested 
agencies of the Corernment with 
information on developments in the 
field of foreign relations and on the 
work of the Department of State and 
the Foreign Service. The BULLETIN 
includes press releases on foreign 
policy issued by the White House and 
the Department, and statements and 
addresses made by the President and 
by the Secretary of State and other 
officers of the Department, as well as 
special articles on various phases of 
international affairs and thefunctions 
of the Department. Information con- 
cerning treaties and international 
agreements to which the United States 
is or may become a party and treaties 
of general international interest is 
included. 

Publications of the Departntent, cu- 
mulative lists of which are published 
at the end of each quarter, as well as 
legislative material in thefieldofin ter- 
national relations, are listed currently. 



Contents 



(iCTinany: Zoir's of Ofcuijation. 
Article bv L. A. Hoffman . . 



In the iMind-< of Men. 

Article bv Dorothea Scehe Franck 



The American Trade Proposal.s: An International Trade Or- 
ganization. 

Article bv Louis K. Hvde, Jr 



International Organizations and Conferences 

Calendar of Meeting.s 

Activities and Development.s 

The United Nations 

Security Council: Discussion of Soviet-Iranian ]\Iatters . . , 

The Record of the Week 

Appointment of Fiorello II. La Guardia as Director General of 
UNRRA 

". . . we can attain a lasting peace." Address by the 
Pre.sident 

Proposed Meeting of Council of Foreign Ministers in Paris . . 

The Role of UNESCO in Our Foreign Policy: 

Statement by Assistant Secretary Benton 

Statement bv Archibald MacLeish 



The American Trade Proposals: Progress in Rebuilding a 
Stable World. By Clair '\^'ilcox 

Position in Favor of Compulsory Jurisdiction of the Inter- 
national Court 

*Commercial Air Services Agreement Between L'.S. and Bel- 
gium 

U.S. Note on the Capture of General Mikhailovich 

Declarations of Property Damage for Americans in Belgium . 

Resumption of Mail Service With Germany 

Immigration Preference for Displaced Persons in U.S. Zone in 
Germany 

Reparations and the" Level of Post- War German Economy: 
Plan of Allied Control Council 



Japanese General Elections 

Completion of Work of U.S. Education Mission to Japan 

National City Bank to Reopen in Tokyo 

Purchase of Natural Rubber From i\Ialaya 

L'.S. Policy in Korea 

U.S. Withdrawal From Galapagos Base 

Our Rclrttions With Great Britain 



Page 
599 



608 

616 

618 
61S 

620 

619 

622 
624 

625 
629 

630 

633 

633 
634 
631 
635 

635 

636 
639 

641 
642 
644 
644 
644 
644 



* Treaty infornmtion 



i 



Germany: Zones of Occupation 



Article by L. A. HOFFMAN 



IN ACCORDANCE with the Potsdam communique 
issued August 2, 11)4."), (jrenuany within its 1037 
iiounchiries is occujjied by the armed forces of the 
United States of America, the United Kingdom 
i)f Great Britain and Northern Irehmd. the Union 
of Soviet Socialist Republics, and the I'rovisional 
Government of the French Republic.^ 

Each one of the four occupying powers has a 
zone of occupation, which it administers through 
a, system of military government. The city of 
Berlin is administered jointly by the four powers, 
although each has a sector which its troops occupy. 
That part of eastern Germany between the Soviet 
zone and the Soviet-administered Konigsberg area 
is under Polish administration and for that pur- 
pose is Hot considered as part of the Soviet zone 
(Potsdam communique, Section IX). 

Section IV of the Potsdam conmiunique refers 
to exchanges of goods and a movement of capital 
equipment from the three western zones to the 
Soviet-Polish areas. Therefore, in this study, in- 
formation about the American, British, and 
Fi-encli zones is combined under the heading loest- 
ern Germany. The use of the term eastern Ger- 
many refers to the Soviet zone plus the Polish- 
administered area and the Konigsberg ai'ea. In 
1939, western Germany had about three fifths of 
the total population, while eastern Germany ex- 
cluding Berlin had a little over one third of the 
total population. These two proportions are a 
fairly good index of the relative contribution of 
these areas to the productivity and strength of 
pre-war Germany. 

The pre-war pattern of Gei'man economic life 
serves as the best background against which to 
evaluate the fragmentary war and post-war data 
about that country. Such a method of evaluation 
may indicate what permanent effects the tre- 



mendous wartime and reconstruction changes will 
have on the economy of a reconstructed Germany. 
Since no German census was taken during the 
war, the information on population, resources, 
and production presented in this article is the 
latest reliable information for all of Germany. 
Detailed pre-war data, arranged for each of the 
present zones of occupation and for the adminis- 
tered and jointly controlled areas, can be found in 
the accompanying tables. Some war and post- 
war data are included in the text, but it should be 
kept in mind that these data are not generally 
as reliable as the pre-war census information. A 
few of the highlights revealed by the data are 
discussed, but no attempt is made to give details 
of production. An analysis of each occuijied or 
administered area as a distinct region shows its 
relative pre-war importance. 

Berlin 

Berlin was of great importance not only as a 
political center but also as a focal point in the 
pre-war economy of Germany. One eighth of the 
German population in all cities of 10 thousand 
and over lived within the metropolitan limits of 
Greater Berlin. Since most of these people were 
engaged in industrial, commercial, and profes- 
sional occupations, Berlin supplied a relatively 
large proportion (one tenth) of the Gei-man 
national income. About 7 percent of the pre-war 
German labor force of 34.6 million lived in Berlin. 



' Mr. Hoffman is Population Geographer in the Division 
of International and Functional Intelligence, Office of Re- 
search and Intelligence, Department of State. For article 
by Leon W. Fuller on "The Problem of German Political 
Revival", see Bulletin of Apr. 7, 1946, p. 547. 

^ Throughout this article the terms American, British, 
Soviet, and French are used instead of these more lengthy 
names. 

599 



600 



DEPARTMENT OF STATE BULLETIN 



It also included uboiit S percent of the 14.6 niillion 
gainfully occupied industrial workers.^ Berlin 
manufactured large quantities of clothing, optical 
and other instruments, electrical goods, and 
printed matter (about 45 percent of the total 



industrial production was concerned with metal 
fabrication) . Perhaps of greatest significance was 
its role as a capital. About one ninth of the 0.9 
million German governmental officials — national, 
provincial, and local — were stationed in Berlin. 



Berlin: Sectors of Occupation 





Area in 
square 
miles 


May 17, 1939 cen- 
sus population 


November 1, 1945 
estimated popu- 
lation 


Percent 

change 

1939- 

1945 




In thou- 
sands 


Percent 


In thou- 
sands 


Percent 


Berlin - _ - 


341 

151 

66 

84 

40 


4, 339 
1,588 

891 
1, 334 

526 


100 

37 
20 
31 

12 


3,021 
1, 134 

582 
872 
433 


100 
38 
19 
29 
14 


-30 


Soviet sector 


— 39 


British sector 

American sector 

French sector 


-35 
-35 

-18 



The May 17, 1939 data are from the last regular pre-war German census; the data for Nov. 1, 1945 are from estimates 
based on the ration-card system. A regular census for the four occupation zones is projected for .lune 1, 1946. 



Eastern Germany 

Although eastern Germany, consisting of the 
Soviet and Polish areas, comprises about half the 
area of 1937 Germany, it had a smaller propor- 
tion of the German total population, resources, 
and pi'oductivity than western Germany. The 
region included about 36 percent of the 1939 Ger- 
man total population, three tenths of the German 
city population (places of 10 thousand and over) 
and was the source of about one third of the pre- 
war national income. 

The employment patterns of eastern Germany 
and western Germany were very similar, with only 
a slightly greater dependence on agriculture in the 
former. About two fifths of the German popula- 
tion dependent upon agriculture were in easteim 
Germany (this amounted to about 45 percent of 
the German population gainfully occupied in agri- 
culture since more members of the family worked 

' The accompanying tallies show only 6 percent of the 
Germans in Berlin as industrially dependent because there 
were fewer dependents per worker in Berlin than in other 
parts of Germany. 

' Plowland as used here includes all cultivated land 
except gardens and orchards. It should not be confused 
with arable land. 



on the farms in eastern Germany and thus there 
were few^er agricultural dependents per worker 
than in western Germany). Eastern Germany 
had over half of the total plowland * in Germany, 
but only one third of the other agriculturally use- 
ful land, and less than half of the German forest 
land. The region supplied its own food require- 
ments in 1936 and had the following surpluses (in 
terms of its total regional production) : rye, 33 
percent; wheat, 18 percent; barley, 26 percent; 
oats, 20 percent; and potatoes, 28 percent. Even 
after feeding Berlin, eastern Germany had a sur- 
plus equal to about a tenth of its total food pro- 
duction. These surpluses moved chiefly to west- 
ern Germany, where they helped to meet the food 
deficits. 

Eastern Germany had about one third of the 
pre-war German population dependent upon in- 
dustry, and produced a slightly smaller proportion 
of the German industrial output. The region was 
especially important in the building industries, 
the gla.ss and jiottery industries, the paper and 
printing industries, the textile industries, and the 
metalware industries. Most of the iron and steel 
industries of eastern Germany were concerned 
with processing and finishing, and only about a 



APRIL 21, 1946 



601 



teutli of tliL- prL'-war Geniuiii .■^teel production 
came from the region.^ 

Eastern Germany had alxnit one seventli of the 
German hard coal reserves and about one tiftli of 
the pre-war prochiction, practically all of it being 
located in the Upi)er Silesian (Oberschlesien) 
area of the Polish-administered area. About two 
thirds of the brown coal (lignite) reserves and its 
production " were in the region, most of it in the 
southwestern portion (Magdeburg, Halle-Merse- 
burg, Sachsen areas) of the Soviet zone. 

Between 1933 and 1939 eastern Germany in- 
creased in population at about the national average 
rate, most of the increase occurring in the cities. 
With respect to religion, the region was over- 
whelmingly Protestant. The Catholics were in 
the n^ajority only in a few districts of Upper Sile- 
sia and East Prussia (Ostpreussen). 

Western Germany 

Western Germany (the British, American, and 
French zt)nes, and the Bremen enclave) had about 
58 percent of the pre-war German total popula- 
tion, and the same percentage of the city popu- 
lation (places of 10 thousand and over) and of 
the rural population (connnunities of under 10 
thousand). It also had three fifths of the popu- 
lations dependent upon agriculture, upon industry, 
and upon commerce, as well as the same propor- 
tion of the total income, industrial output, and 
electric-power production. In addition about 
seven tenths of the pre-war German mineral out- 
put, including four fifths of the hard coal, was 
pj'oduced in this area. 

On a little over half of the area of Germany, this 
region had almost half of the plowland, about 
two thirds of the other agricultural land, and over 
half of the national forests. Between two fifths 
and one half of the five major German food crops 
were raised in western Germany. Food produc- 
tion was not adequate to fill the needs in this re- 
gion, which contained three fifths of the total 
German poi)ulation. Deficits amounted, there- 
fore, to the following proportions of the total 
regional production of each ci'op : rye, 35 percent; 
. wheat, IG percent; barley, 25 percent ; oats, 17 per- 
' cent : and potatoes. 32 percent. Deficits at the 
present time are, of course, much larger. In order 
to maintain even low dietary levels, western Ger- 
many will require importation of possibly an ad- 
ditional 4 million tons of grain annually, or its 



equivalent, or about a third of its necessary food- 
energy intake. With the influx of refugees ex- 
pected by next August possibly only half of the 
caloric intake of the region will be met by local 
production. 

Those pre-war industries which were particu- 
larly prominent in western Germany (i.e. fur- 
nished a larger production proporticmately than 
the 61 percent of the total German industrial out- 
put contributed by the region) included mining, 
metallurgy, construction of vehicles, leather goods, 
chemicals, and tools. The region supplied nearly 
nine tenths of the pre-war German steel produc- 
tion. 

Three fifths of the total German population in- 
crease l)etween 1933 and 1939 occurred in western 
Germany and was concentrated chiefly in the cities. 

Unlike eastern Germany, which was overwhelm- 
ingly Protestant, western Germany was about half 
Catholic and included over four fifths of the Ger- 
man Catholics. 

The population of western Germany about the 
end of 1945 was 43.7 million — almost a tenth larger 
than in 1939. The industrial areas of the Ruhr 
and middle Ehineland had lost population, al- 
though most of the remainder of the region had 
gained population during the war. If the ex- 
pected transfer of nearly 4 million Germans from 
Poland, Czechoslovakia, Austria, and Hungary 
into western Germany by the middle of 194G is 
completed, the poiJulation will then be nearly a 
fifth larger than it was in 1939. 

Individual Zones' 

The British Zone 

Although the area now occupied by British 
forces is smaller than either the Soviet or Amer- 
ican zones or the Polish-Administered area, it was 
a vital area in Germany before the war. It had 
about three tenths of the population, resources, 

" For an article on the iron and steel industry of Ger- 
many see BuLLEriN of Apr. 29, 1945, pp. 814-825. 

"Gorman brown-coal production during tlie war in- 
creased nearly three tenths over the pre-war production. 
Since most of the increased production took place in east- 
ern Germany, its share of the average annual 1938-1943 
production was about seven tenths of the total. 

'Information about, each zone does not include data on 
the sector of Berlin occupied by the troops of that 
country. 



602 



DEPARTMENT OF STATE BULLETIN 



and production of Germany. Some 36 percent 
of the German city population (places of 10 thou- 
sand and over) dwelt there; and over a third of 
the German industrial output, including about 
three fifths of the mineral production, came from 
there. Among its most valuable physical re- 
sources were about three quarters of the total 
German hard-coal reserves and production. 
Nearly three quarters of the pre-war German 
steel jn'oduction came from this region. About 
half of the population lived in the lower Rhine- 
land node, in only a sixth of the area of the zone; 
and a good portion of the remainder lived along 
the main routes between the lower Rhineland and 
the Saxony (Sachsen) areas. Although the Brit- 
ish zone was F'rotestant by an appreciable ma- 
jority, most of the Catholics of the area lived in 
the lower Ehineland where they were in the ma- 
jority in many districts. 

The British zone had a tenth more people at 
the end of 1945 than it had in 1939. Most of the 
increase was in the Hannover and Schleswig- 
Holstein areas. With the probable transfer of 
about 1.5 million Germans from Poland to the 
British zone by the middle of 1946, the popula- 
tion will rise to about 23 million or 17 percent 
greater than in 1939. 

The /Soviet Zone 

In pre-war Germany, the Soviet zone was the 
second most important jaroductive area in the 
country, primarily because of the industrial 
importance of the Saxony (Magdeburg, 
Halle-Merseburg, Sachsen) and Thuringia 
(Thiiringen) parts of the region. This area con- 
tains the largest amount of cultivated land of any 
of the regions considered in this article. Its in- 
dustrial output has been influenced by large sup- 
plies of bi'own coal and electric power (three 
tenths of the pre-war German electric power). 
German chemical and light-metal industries were 
concentrated here, and most of the iron- and steel- 
finishing industries of eastern Germany were in 
the Soviet zone. This area, consequently, was 
very much dependent upon the iron and steel jDro- 
duction of the Ruhr for a large part of its raw 
and semi-finished materials. 

*One unconfirined report places the present civilian pop- 
ulation of the area at only a third of its 1.1 million pre-war 
popnlation. 



The Soviet zone had nearly a fourth larger pop- 
ulation at the end of 1945 than it had in 1939. All 
of the major areas increased in population, Meck- 
lenburg and Thuringia almost doubling that of 
the i)re-war period. AVith the probable transfer 
of nearly 3 million Germans from Poland and 
Czechoslovakia to the Soviet zone by the middle 
of 1946, the population will be two fifths greater 
than in 1939. 

T/ie Konigsherg Area 

The city of Kimigsberg and the adjacent part 
of East Prussia (Ostpreussen) had about one per- 
cent of the pre-war German land and human * 
resources. In most of the items of industrial pro- 
duction this area Avas insignificant; its greatest 
importance lay in its year-round ice-free port and 
the lowland and water routes to tlie east. 

According to the Potsdam communique (Sec- 
tion VI) the K(inig.sberg area is under Soviet ad- 
ministration, pending ultimate transfer to the 
Soviet Union at the peace settlement. The bound- 
ary between the Soviet- and Polish-administereil 
portions of East Prussia is tentative, pending 
expert examination of the actual frontier. 

The Polish-Administered Area 

Pending the final determination of Poland's 
western fi'ontier, the former German territories 
east of the general line of the Oder and (western) 
Neisse rivers, excluding the Konigsberg area, are 
under the administration of the Polish State. 
This Polish-administered area is not considered a 
part of the Soviet zone of occupation for purposes 
of administration (Potsdam communique, Section 
IX). 

This region contributed a large part of the major 
agricultural surpluses of eastern Germany. The 
fifth of the pre-war German population dependent 
upon agriculture who lived here filled about one 
quarter of the plowland in tlie countiy. Because 
the area had only 13 percent of the total German 
population, food surpluses were available for the 
more urbanized areas to the west. The region also 
had timber and other wood-product surpluses. 
The proportion of the pre-war national income 
from the area, it may be noted, was smaller than 
the proportion of the total population there. This 
fact was due primarily to the low productivity of 
the East Prussian (Ostpreussen), Pomeranian 
(Pommern), and Brandenburg portions of the 
area, although the Silesian (Niederschlosien and 



APRIL 21, 1946 



603 



Oberschlesien ) portion was more productive and 
prosperous. The Silesian portion also had most 
of the hard coal and most of the industry, includ- 
ing about 2 percent of the pre-war German steel 
production. Most of the Catholics of the Polish 
area were in this same section. 

No reliable information on the present popula- 
tion of the region is available. Large numbers 
of Germans (possibly several million) fled fi"om 
the area before the advance of the Soviet armies 
during the last months of the war. Between Jan- 
uary and August of this year some 3.5 million of 
the remaining Germans are being transferred to 
the Soviet and British zones. Although exact 
figures are not available, this transfer will prob- 
ably leave only several million of the pre-war 
population, which is about the estimated number 
speaking either a Slavic language or speaking botli 
a Slavic language and German. Considerable 
numbers of Poles (one report mentions half a mil- 
lion settlers) have come into the area from farther 
east. 

The American Zone 

About a fifth of tiie people and of the produc- 
tivity of pre-war Germany were in what is now the 
American zone. The area was sadly lacking in 
mineral fuels and the considerable hydroelectric 
power of the southern highlands only partly com- 
pensated for this lack. Outside of the Munich 
(Miinchen) and Niirnberg areas, most of the 
industrial workers and production were concen- 
trated in the valleys of the Neckar, Main, and the 
middle Rhine rivers. Very little of the industry 
was of the heavy type (i.e. only about 2 percent 
of the pre-war steel production was in the area), 
thus most of the metal-fabricating industries were 
dependent upon the Ruhr for their primary metal 
products. The most significant industries were 
those connected with the manufacture of textiles, 
processed foods, machinery, gas and electricity, 
and vehicles. 

The zone was not quite so important agricultur- 
ally as the proportion of its population dependent 
upon agriculture might suggest. The useful parts 
of the farms were small, and the production per 
farm family was not as high as in many other 
parts of the country. Many of the farms of the 
region sufficed for little more than the support of 
the families on them. In pre-war days the zone 
had a surplus of dairy pi'oducts and a deficit of 
grain. 



Tlie region was slightly more Catholic than 
Protestant; most of the Protestants were concen- 
trated in the industrial areas of the northwestern 
part, where they were often in the majority. 

The American zone had 15.7 million population 
or a seventh more people at the end of 1945 than 
it had in 1989. All of the areas except North 
Baden registered gains; Bavaria (Bayern) ex- 
cluding Pfalz had a fourth more people. With 
the projected transfer of over 2 million Germans 
from Czechoslovakia and Hungary to the Ameri- 
can zone by the middle of 1940, the population will 
be about three-tenths greater than in 1939. 

The Bremen Enclave 

The Bremen enclave is small and includes only 
the jjort of Bremen with its outlying port of Brem- 
erhaven plus strips of land along the estuary of the 
Weser River from Bremen to the sea. The main 
value of this area lies in its port facilities rather 
tlian in its productive capacity. 

Since December 10, 1945," the area has been 
under a combination of British and American con- 
trol. At that time British military government 
learns replaced American ones in most of the en- 
clave, although American military government 
teams, following policy instructions of the British 
military government authorities, remained in the 
cities of Bremen, Bremerhaven, and Wesermiinde. 
American military forces will continue to be re- 
sponsible for security and still maintain opera- 
tional control. 

By November 1945 the enclave had declined 11 
percent from its pre-war population of 713,000 to 
about 562,000. Most of the loss took place in the 
cities of the enclave. 

The French Zone 

The French zone of occupation had less than a 
tenth of the people, resources, and productivity of 
pre-war Germany. Seven tenths of the population 
lived in communities having a population of less 
than 10 thousand. A full quarter of the popula- 
tion was dependent upon agricultuie. The poor 
living afforded Ijy many of the small farms of the 
region can be visualized from the fact that in the 
area some 12 percent of the German population 
dependent upon agriculture were tilling only about 
8 percent of the cultivated land in Germany. Most 
of these poor farms were in the upland areas; 

° Between Nov. 1944, and Dec. 10, 1945, tlie enclave was 
under American occupation and administration. 



604 



DEPARTMENT OF STATE BULLETIN 



wliereas the prosperous fanuino' areas were in the 
Moselle Valley and Rhine Rift Valley. In the 
entire zone over two fiftlis of the population were 
dej^endent upon industries, which were chiefly in 
the Saarland and along the portions of the Rhine 
and Neckar rivers within the zone. Seven percent 
of the German hard coal production was rained in 
the Saar. Since this was more than the area con- 
sumed locally, there was an outward movement of 
coal to other portions of the Upper Rhineland 
area. The Saar also supplied about an eighth of 
the pre-war German steel production. 

The French zone was the oidy zone in which 
the Catholics formed a large majority. The popu- 
lation of the French zone was slightly smaller at 
. the end of 1945 than it had been in 1939. With the 
l^rojected return fi'om the American zone by the 
middle of 1946 of the quarter million I'efugees who 
had fled from the zone during the war and the in- 
flux of 150 thousand Germans from Austria, the 
zone will have a population slightly larger than 
before the war. 

Germany West of Oder and Neisse Rivers 

That })art of 1937 Germany now under military 
government by the four occupying powers consists 
of the American, British, French, and Soviet zones 
l^his Berlin and the Bremen enclave. Although 
smaller than Norway, Sweden, France, or Spain, 
this region west of the Oder and Neisse rivers re- 
mains the most populous and potentially the most 
productive region in Europe (with the exception 
of the Soviet Union). 

This region contained 86 percent of the total 
pre-war German population on 76 percent of the 
area. The 524 cities (places of over 10 thousand 
population) had nine tenths of the German urban 
population; the rural areas contained over four 
fifths of the German rural population. 

The 78 percent of the pre-war German popula- 
tion dependent ujjon agriculture which dwelled 
in the region tilled over seven tenths of the Ger- 
man |)lowland, worked over fonr fifths of the other 
agricultural land, and tended nearly four fifths 
of the German forest land. 

Ninety-three percent of the pre-war German in- 
dustrial output was produced by 90 percent of the 

'"RpiKirts indicate tliat the four occnpying luiwers may 
lidlil post-war Gt'riiian steel production to al)ont 5 million 
tons annually or little more than a fourth of the pre-war 
steel production in the .same area. 



industrial population in the areas now under mili- 
tary government. This industrial production in- 
cluded about 97 percent of the pre-war German 
steel production."' 

The region contains the greater portion of the 
total German coal reserves, about 86 percent of the 
hard coal reserves, and 77 percent of the brown coal 
(lignite) reserves. In 1937 the region produced 
84 percent of the hard coal and 93 percent of the 
brown coal mined in all Germany. In addition, 
over nine tenths of the pre-war electric power was 
generated in tlie region. 

In spite of large military and civilian fatal casu- 
alties during the war (possibly 5 million), the 
population of the region has steadily increased. 
The population, nearly 60 million in 1939. was 
estimated to be over 65 million by November 1945 
(about one million of which was non-German). 
If projected plans are carried out for transferring 
between 6 and 7 million German-speaking peoples 
from eastern Europe to the four zones by August 
1946. the region at that time will have a jiopulation 
of possibly 70 to 72 million, which would be about 
one-fifth larger than the pre-war population. 

Prospects 

The pre-war distribution of German population, 
resources, and production has been greatly altered 
by war and by the present period of Allied occu- 
pation. As a result of casualties and migrations 
due to bombings, and the displacement of large 
groups of persons for other reasons, the pattern 
of population distribution has undergone a great 
change. A similar change is evident in produc- 
tion, as many productive facilities have been de- 
stroyed, moved away, or disorganized. 

Up to the time of the present war the funda- 
mental patterns of population distribution and 
productivity in western Europe had not been 
changed drastically since the culmination of the 
Industrial Revolution. Neither the destruction 
of war nor the migration of marginal industries 
and crops to places of more efficient pioduction 
has materially changed the significance of the 
major population concentrations. Physical de- 
.struction and disorganization are not nearly so 
retarding in western Europe as the same propor- 
tion of destruction would be to facilities in regions 
endowed with less capital equipment and with 
fewer reserves of skilled workers and organizers. 



APRIL 21, 1946 



605 



Tlie iiioiuentum of an established industrial area 
i? enormous; .sliifts to different types of industrial 
activity are common, but shifts to less productive 
activities are relatively unimportant. 

The contrasts between the pi'e-war picture and 
the present one of disorganization and low pro- 
ductivity are probably greater than the contrasts 
between the pre-war picture and the post-war 
patterns of a reconstructed Germany yet to evolve. 



Undoubtedly, recon.structed Germany will be 
somewhat different from pre-war Germany, but 
the favored regions of pre-war days which remain 
within the new boundaries will probably continue 
to be the most economically important parts of the 
country. In those areas are concentrated most of 
the resources, facilities, and human skills and abili- 
ties to form the basis for peaceful development 
as well as for a wartime economy. 



Germany: 1937 Land-Use for Zones of Occupation 



Germany (1937 Boundaries) 

Berlin (Joint Administration) _ . 

Eastern Germany 

Soviet Zone 

Konigsberg Area ' 

Polisli-Administrated Area 

Western Germany 

Britisli Zone 

American Zone 

Bremen Enclave- 

Frencli Zone 



Plowland ' 



Amount in 

thousands 

of square 

miles 



74. 8 
0. 03 
40. 9 



19. 

2. 
18. 
33. 
13. 
14. 

0. 

6. 



Percent of 

area of 

zone 



41 
9 
48 
47 
49 
48 
35 
36 
34 
35 
37 



Percent of 
German 
plowland 



100 

(*) 

55 

27 

3 

25 

45 
18 
19 

(*) 



other Agricultural Land * 



Amount in 

thousands 

of square 

miles 



36. 



0. 
12. 

5. 

1. 

5. 
23. 
10. 



9. 2 
0. 4 
3. 8 



Percent of 

area of 

zone 



20 
29 
14 
13 
20 
15 
25 
27 
22 
33 
23 



Percent of 

total of 
such land 



100 



(*) 



35 
16 

3 
16 
65 
28 
25 

1 
11 



Forest Land 



.\mount 


in 


thousands 


of square 


miles 




49. 


8 


(*) 




22. 


6 


10. 


9 


1. 





10. 


7 


27. 


2 


7. 


3 


14. 


5 


(*) 




5. 


4 



Percent of 

area of 

zone 



(*) 



(*) 



27 

) 

26 
26 
20 
27 
28 
20 
35 

■) 
33 



Percent of 

(lerman 

forest land 



(*) 



(*) 



100 

45 

22 

2 

21 
55 
15 
29 

11 



Germany: 1937 Income and Electric-Power Production for Zones of Occupation 





Total Income s 


Value of Industrial Pro- 
duction & 


Value of Mineral Produc- 
tion 


Electric-Power Produc- 
tion 




Billions of 
V. S. dollars 


Percent of 
total 


Billions of 
U. S. dollars 


Percent of 
total 


Millions of 
U. S. dollars 


Percent of 
total 


Billions of 

kilowatt 

hours 


Percent of 
total 


Germany (1937 Boundaries) 

Berlin (Joint .-Vdministration) 

Eastern Germany 

Soviet Zone 

Konigsberg Area ' _ 


28. 5 
2.9 
9.4 
6.5 
0.4 
2.5 

16.2 
8.8 
4. 8 
0.3 
2.3 


100 
10 
33 
23 

1 

9 

57 

31 

17 

1 

8 


13. 8 

1. 2 
4.3 
3.3 

(*) 
1.0 
8.3 
4. 7 

2. 5 
(*) 

1. 1 


100 

9 

31 

24 

(*) 

7 

60 

34 

18 

{*) 

8 


1, 122 

(*) 
337 
202 

(*) 

135 

785 

662 

45 

(*) 
78 


100 
(*) 
30 
18 
(*) 
12 
70 
59 
4 
(*) 
7 


49. 
1. 6 

la 6 

14.8 

0. 2 

3. 6 

28 8 

16. 2 

7. 5 

0.2 

4.9 


100 

3 

38 

30 

1 


Polish- Administrated Area 

West er 11 Germany 

Britisli Zone. _ _ .. 


7 
59 
33 


American Zone 


15 


Bremen Encla\^e ^ 


1 


French Zone 


10 



689903—46- 



606 



DEPARTMENT OF STATE BULLETIN 
Germany: 1937 Coal Reserves and Production for Zones of Occupation 





Hard Coal Reserves ^ 


1937 Hard Coal Produc- 
tion 


Brown Coal CLi^ite) 
Reserves ' 


1937 Brown Coal Produc- 
, tion 




Billions of 
tons 


Percent of 
total . 


Millions of 
tons 


Percent of 
total 


Billions of 
tons 


Percent of 
total 


Millions of 
tons 


Percent of 
total 


Germany (1937 Boundaries) 

Berlin (Joint Administration) 

Eastern Germany 


176 



24 

(*) 



24 

152 

136 

(*) 



16 


100 


14 

(*) 



14 

86 

77 

(*) 



9 


185 



36 

6 



30 

149 

136 

(*) 



13 


100 



19 

3 



16 

81 

74 

(*) 



7 


57 



37 

24 



13 

20 

19 

1 



(*) 


100 



65 

42 



23 

35 

33 

2 



(*) 


185 



121 

109 



12 

64 

58 

5 



1 


100 



65 


Soviet Zone 


58 


Ivoniftsberg Area * 





Polish-Administrated Area 

Western Germany .-. 


7 
35 


British Zone 


31 


American Zone _ _ 


3 


Bremen Enclave ^ 





French Zone 


1 







Germany: General Population Data for Zones of Occupation 





Total area 


1939 Population data 


Density per square mile 


1933-1939 Population increase 




Thousands 

of square 

miles 


Percent of 

German 

area 


Total in 
millions 


Percent of 
German 
popula- 
tion 


Of total 
popula- 
tion 


Of popula- 
tion in 
places 
under 
10,000 


Increase in 
millions 


Percent 
increase 
in zone 


Precent of 
German 
increase 


Germany (1937 Boundaries) 

Berlin (Joint Administration) 

Eastern Germany 


181. 7 

0.34 
85.5 
41.5 
4.9 
39. 1 
95. 8 
36.8 
41.3 
1. 2 
16. 5 


100 

(*) 

47 

23 

2 

22 

53 

20 

23 

1 

9 


69.3 

4.3 

24, 8 

15. 1 

1. 1 

8. 6 

40. 2 

19. 6 

13. 7 

0.7 

6.2 


100 

6 

36 

22 

1 
13 
58 
28 
20 
1 
9 


381 
12, 647 
290 
364 
224 
220 
420 
533 
332 
583 
376 


195 

173 
206 
125 
145 
215 
207 
201 
182 
274 


3.3 

0. 1 

1.2 

0.9 

0. 1 

0.2 

2.0 

1.0 

0.7 

0.07 

0.2 


5.0 
2.4 
5. 1 
6.3 
10.0 

2. 4 
5. 2 
5. 4 
5. 4 

11. 1 

3. 3 


100 

3 

36 


Soviet Zone 


27 


Konigsberg Area' 

PolLsh- Administrated Area 

Western Germany 

British Zone . 


3 

6 
61 
31 


American Zone 


21 


Bremen Enclave ' 

Frencli Zone.. 


3 
6 







Germany: 1939 Urban-Rural Break-down for Zones of Occupation 





Urban population (cities 10,000 and over) 


Rural population (places under 10,000 in size) 




Number 

of 

cities 


Area in 

thousands 

of square 

miles 


Popula- 
tion of 
cities in 
millons 


Percent of 
popula- 
tion in 
zone 


Percent of 
German 
city popu- 
lation 


Area in 

thousands 

of square 

miles 


Rural 
popula- 
tion in 
millions 


Percent of 
popula- 
tion in 
zone 


Percent of 
German 
rural popu- 
lation 


Germany (1937 Boundaries) 

Berlin (Joint Administration) 

Eastern Germany 


617 

1 

267 

174 

7 

86 

349 

193 

91 

7 

58 


9.6 
0.34 
3.4 
2.2 

0. 14 

1. 1 
5.8 
3.4 
1.5 
0. 1 
0.8 


35. 7 

4. 3 
10. 6 

7.0 

0. 5 
3. 1 

20. 8 
12.7 

5. 7 
0.5 

1. 9 


52 
100 
43 
46 
45 
36 
52 
65 
42 
71 
31 


100 

12 

30 

20 

1 

9 

58 

36 

16 

1 

5 


172. 1 

0. 
82. 1 
39.3 

4. 8 
38.0 
90.0 
33. 4 
39. 8 

1. 1 
15. 7 


33. 6 
0.0 

14. 2 
8. 1 
0. 6 

5. 5 
19. 4 

6. 9 
8. 
0.2 
4. 3 


48 

57 
54 
55 
64 
48 
35 
58 
29 
69 


100 


42 


Soviet Zone 


24 


Konig.sberg Area ' 


2 


Polish- Administrated Area 

Western Germany. 


16 
58 


Britisli Zone 


21 


American Zone 


21 


Bremen Enclave ^ 

Frencli Zone _ . . . 


(*) 
13 













APRIL 21, 1946 607 

Germany: 1939 Resident Population Dependent Upon Major Employment Groupings in Zones of Occupation 





Agriculture and Forestry 


Industry and Handicrafts 


Trade and Commerce 




Number 

dependent 

in 

millions 


Percent of 
resident 

population 
in zone 


Percent of 

German 

agricultural 

dependent 


Number 

dependent 

in 

millions 


Percent of 
resident 

population 
in zone 


Percent of 

German 

industrial 

dependent. 


Niunber 

dependent 

in 

millions 


Percent of 
resident 

population 
in zone 


Percent of 

German 

commercial 

dependent 


Gorniany (1937 Boundaries) 

BoiHii (Joint Administration) _ — 
Eastern Germany _ _ 


12. 3 

(*) 
5.0 
2.3 
0. 3 
2. 4 
7. 3 
2. 5 
3.2 
0. 1 
1.5 


18 
(*) 
21 
16 
27 
29 
18 
13 
24 
14 
25 


100 

(*) 

41 
19 

2 
20 
59 
20 
26 

1 
12 


28. 

1. 8 
9.5 
6. 6 
0. 2 

2. 7 
16. 7 

8.7 
5.2 
0. 3 
2.5 


41 
42 
39 
45 
18 
32 
42 
45 
39 
43 
41 


100 

6 

34 

23 

1 

10 

60 

31 

19 

1 

9 


10. 8 
1.0 
3. 5 
2.2 
0.2 
1. 1 
6.3 
3. 3 
2.0 
0.2 
0.8 


16 
23 
14 
15 
18 
13 
16 
17 
15 
29 
13 


100 

9 

32 


f Soviet Zone 


20 


Konigsbcrg Area ' 

Poli.sh-Administrated Area.__ 
Western German \' 


2 
10 

59 


British Zone 

American Zone 

Bremen Enclave- 

French Zone 


31 

18 

2 

8 






Germany: 1939 Resident Population — Continued 


Germany: 1939 Distribution of Major Religions for 
Zones of Occupation 




Government and other professions 


Protestants 


Catholics 




Number 

dependent 

in 

millions 


Percent of 
resident 

population 
in zone 


Percent of 
German 
profes- 
sional 
dependent 


Number 

in 
millions 


Percent of 
resident 

population 
in zone 


Percent of 
German 
Protest- 
ants 


Number 

in 
millions 


Percent of 
resident 

population 
in zone 


Percent of 
German 
Catholics 


Germany (1937 Bonndaries) 

Berlin (Joint Admini.stration) 

Eastern Germany 

Soviet Zone 


6.9 
0. 7 
2.4 
1.4 
0. 2 
0. 8 
3. 8 
1.9 
1.3 
0. 1 
0. 5 


10 
16 
10 

9 
18 
10 
10 
10 
10 
14 

8 


100 

10 

35 

20 

3 

12 

55 

28 

19 

1 

7 


41.3 

3.0 

19. 1 

12. 8 

1.0 

5. 3 
19.2 
10.4 

6. 1 
0. 6 
2. 1 


61 
70 
79 
86 
91 
63 
48 
54 
45 
86 
34 


100 

7 

46 

31 

2 

13 

47 

25 

15 

2 

5 


22. 6 
0. 5 
3.7 
0.9 
0.04 
2.8 

18. 4 
7. 6 
6.9 
0. 1 
3. 8 


33 
12 
15 
6 
4 
33 
46 
39 
51 
14 
62 


100 

2 

16 


Konigsberg Area ' 

Polish- Administrated Area^__ 
Western Germany . 


(*) 
12 
82 


British Zone 


34 


.American Zone 


31 


Bremen Enclave ' 

French Zone 


(*) 
17 







•Very small amount or percent. 

' The Konigsberg area is under Soviet administration pending ultimate transfer to the Soviet Union at the peace settlement (Potsdam Communique, Sec- 
lion VI). 

- The Bremen enclave is under a combination of American and British control since Dec. 10, 1945. 

3 Plowland as used here includes all cultivated land except gardens and orchards. It should not be confused with arable land. 

* Other agricultural land includes gardens, meadows, pastures, orchards, vineyards, and willow groves. 

' These net income figures were converted into American currency without taking into consideration differences between the 1937 price levels of Germany and 
the U. S. The 28.5 billion dollars total net income was probably the equivalent in 1937 of some 20.8 billion dollars income in the V. S. 

« Value added by industrial processing in 1936 (includes mineral production). 

' Proved and probable reserves down to about 6,500 ft. depth; estimated where zonal boundaries cross deposits. 



608 



DEPARTMENT OF STATE BULLETIN 



In the Minds of Men 



Article by DOROTHEA SEELYE FRANCIv 



The Department of State's Program, 1943-45 

Only in the last few years has the Anieriean 
Government played any part in the linking of 
American life and culture with that of the Near 
East. To the eastern Mediterranean theater of 
war it sent its soldiers by the thousands, their self- 
confident informality reflecting one aspect of the 
American spirit and their equipment and machines 
l^roviding tangible evidence of material American 
achievements. 

In the capitals of the Near East the Office of War 
Information established outposts well equipped to 
tell the story of the United Nations battle and the 
United States part in it through the spoken and 
written word and through motion pictures, slides 
and film-strips. 

Since the spring of 1943 the Department of State, 
on a wartime emergency basis, has been carrying 
on a program planned to facilitate the work of 
private American institutions in the Near East 
and to supplement their activities with otliers de- 
signed to share American experience in cultural 
and scientific fields. 

This cultural-cooperation program has had four 
major aspects: (1) appointing and servicing cul- 
tural-relations attaches; (2) assisting institutions 
and projects; (3) facilitating the interchange of 
selected people; and (4) supi^lying cultural 
nuiterials. 

1. Appointment of Cultural-Relations Attaches 

Focal point of the cultural-cooperation program 
in the field is the cultural-relations attache assigned 
to the American diplomatic or consular mission or 
a Foreign Service officer to whom cultural-cooper- 
ation duties are assigned. For example, Donald E. 
Webster, author of 7' he Turkey of Atafurk and 
former professor of sociology at Beloit College, has 
been cultural-relations attache at Ankara, Turkev. 



since 1943. Other full-time attaches are following 
him to serve in the Arab countries. 

The cultural-relations attache is one of the links 
between the people of the United States and the 
people of the country to which he is assigned. 
Mr. Webster describes the liaison job of his office as 
being like that of a pumping station on a pipeline 
to iJromote the flow — but in both directions — of 
personnel, publications, and other means of infor- 
mation for the sake of increased knowledge and 
mutual understanding between the people of the 
two countries. 

The pattern of the attaches' activities might be 
sketched this w-ay : 

A. Liaison and regular contact with 

1. Local government officials in education, sci- 
ence, health, arts, and other appropriate fields 

2. Representatives of local organizations such 
as schools, colleges, industrial, scientific, and 
agricultural groups, community centers, and 
cultural associations 

3. Intellectual leaders, national and foreign, 
such as educators, writers, artists, scientists, 
scholars 

B. Participation in cultural-relations activities 

1. Selection of committees for study and train- 
ing in the United States 

2. Education, science, and art projects spon- 
sored bj' the United States Government 

3. American educational and scientific institu- 
tions in the country 

4. Cultural and professional groups sponsored 
by representatives of the country 

Mrs. Fraiiok is a Divisional Assistant in tlie Division of 
International Exchange of Persons, OflSce of International 
Information and Cultural Affairs, Department of State. 
This is the second part of an article on our cultural rela- 
tions in the Near East. For part I see Bitlletin of Mar. 
31, 104fi, p. 503. 



APRIL 21, 1946 



609 



5. Facilitation of contacts between nationals 
and Americans, either resident or visiting 

6. Provision of requested information, con- 
ducting informal discussions, and delivering 
jiublic addresses dealing especially M'ith social 
and intellectual developments in the United 
.States 

7. Assemblage of material aliout tlie country for 
use in the United States — recordings, films, 
articles, scientific studies. 

Here is one example of the assistance the attache 
can give to a cultural-relations program not re- 
sulting directly from the United States Cirovern- 
ment's own program. In the summer of 19i5 the 
Turkish sugar refineries presented a tentative 
plan for training 15 or 20 promising young Turks 
in the United States in modern methods of proc- 
essing beet and cane sugar. The plan envisioned 
a j-ear of English study in the United States fol- 
lowed by four or five years of college study and 
practical training. The attache not only passed 
on the names of American colleges suggested bv the 
Department of .Vgrieulture as offering the appro- 
priate courses but also recommended that the stu- 
dents lie taught English in Turkey by an Ameri- 
can instructor. The refineries welcomed the idea, 
and as a result Charles E. Howe, former teacher 
of English in a Michigan high school, sailed in 
October to teach English at sugar refineries in two 
towns in the interior of Turkey. 

The attache at Ankara described another aspect 
of his job : 

"My contacts and operations . . . alreadj' have 
given me several occasions for referring not insig- 
nificant amounts of business to the connnercial 
attache. Through literature distribution and ref- 
erence-information services, an attache inevitably 
creates awareness of and desires for instruments 
of which his informees previously were unaware." 

2. Institutions and Projects 

The backbone of cultural cooperation in the 
Near East has been asistance for particular pro- 
grams of the American colleges and other insti- 
tutions. At the outset the Department recognized 
two facts : that these colleges established and main- 
tained by private American and Near Eastern 
funds were one of the greatest cultural assets of 
the United States anywhere in the world ; and that 
in the stress of war inflation the colleges' private 
funds were insufficient to maintain American 



standards at a time wlien increasing demands were 
being made upon them by the people and govern- 
ments of the Near East. In the granting of aid 
to the colleges it was clearly understood that gov- 
ernment assistance entailed no sort of government 
control. Eelated to the colleges' special programs 
have been other Near Eastern projects directly 
sponsored by the Department. These college pro- 
grams and Department projects have been carried 
on in the fields of education, medicine, agriculture, 
engineering, and language and history publica- 
tions. 

Educutioii. Funds have been allocated to the 
colleges for scholarships so that promising stu- 
dents with little money could benefit from an 
American eilucation. In this way the two col- 
leges in Turkey, Eobert College and Istanbul 
Women's College, were enabled to maintain a fair 
geograi)hic distribution between students from the 
seacoast and those from the less wealthy Anatol- 
ian plateau and to continue their policy of having 
one third of their students from families with an- 
nual incomes of less than $1,500. The American 
University was able to offer scholarships to Syr- 
ians, Iranians, Iraqis, Saudi Arabians and Ethio- 
pians for both secondary school work and training 
in agricidture, public health, and nursing. In an 
area wliere so few can afford the cost of high- 
school ayd college training there are seemingly, 
no limits on what may be done fruitfidly in pro- 
viding students with scholarship help for Ameri- 
can education. 

A .survey of education in the Arabic-speaking 
countries of the Near East is being conducted 
under the joint auspices of the American Council 
on Education and the Department of State in 
cooperation with local government officials. Rod- 
eric D. Matthews of the University of Pennsyl- 
vania's school of education, as director of the sur- 
vey, is being assisted by Mata Akrawi, dean of the 
Baghdad Higher Teachers' College, Emam Abdul 
Meguid, who is on loan from the Egyptian Minis- 
try of Education via the Secretariat of the Arab 
League, and Amir Boktor, head of the department 
of education of the American University at Cairo. 
For the benefit of both the United States and the 
Near Eastern countries, this group is studying 
new developments in the educational systems of 
the various countries and the problems facing 
them. Their final report will be made available 
in both English and Arabic. 



610 



DEPARTMENT OF STATE BULLETIN 



Medicine. In tlie field of medicine the American 
University's medical school has been given help 
in maintaining public-health education, in sup- 
porting charity hospital beds, for teaching, re- 
s'earch, and aid to the community, and in extending 
the work of the Health Center and the Maternity 
Clinic. The Admiral Bristol Hospital in Istanbul 
has received supplementary aid for its Nurses' 
Training School which demonstrates American 
health and nursing methods in the training of 
nurses to take part in the Turkish Government's 
expanding nursing program. The significance of 
the American Hospital's contribution is underlined 
by the Turkish Government's recent decision to 
engage an American surgeon to organize a chest- 
surgery service in one of its own hospitals in Istan- 
bul and also to serve on the staff of the Admiral 
Bristol Hospital. 

The first American medical center in western 
Arabia has been established by the American Uni- 
versity of Beirut with funds supplied by the De- 
partment. Located at Jidda, Saudi Arabia, it 
will serve Moslem residents, the thousands of pil- 
grims journeying annually to the holy cities, 
Europeans, Americans, and others requesting. 
American medical assistance. It will also become 
the center for American research in tropical dis- 
eases in that area and will provide pi'actical medi- 
cal experience for students and graduates of the 
American University's medical school. Dr. Henry 
J. Shoettner has been detailed by the United 
States Public Health Service to act as director of 
the clinic, and he is being assisted by Miss Ruby 
Bohlman, R. N. 

AgritCuUurc. In agricultui'e the first project 
helped by State Department funds was the estab- 
lishment of an agricultural extension training pro- 
gram for Lebanon and the surrounding countries 
by the Near East Foundation in cooperation with 
the American University of Beirut. This program 
extends and expands the University's own Village 
Welfare Service in which students and teachere 
worked during vacations to raise living standards 
in rural villages. For the first two years the proj- 
ect concentrated on classes at the University to 
train workers in public health, agriculture, home 
economics, and social work. Plans may be made 
to extend the training to villages by setting up 
additional demonstration centers, possibly in con- 
nection with the new schools at Damascus and 
Baghdad. As a result of many requests from the 



Near East for advice and assistance in the field of 
agriculture, particularly research and education, 
a mission sponsored by the Depai'tments of State 
and Agriculture has been sent to certain Near 
Eastern countries primarily interested in agri- 
cultural development : Lebanon, Syria, Iraq, 
Egypt, and Saudi Arabia. Members of the mission 
are Franklin S. Harris, president of Utah State 
Agricultural College, Logan, Utah, agronomist 
and expert on irrigation and agricultural educa- 
tion ; Robert E. Buchanan, director of Iowa State 
agricultural experiment station and dean of agri- 
culture, Iowa State College; and Afif Tannous, 
rural sociologist, member of the Department of 
Agriculture's Oflice of Foreign Agricultural Rela- 
tions. The mission has a dual purpose : first, to 
survey the agricultural situation in conjunction 
with local authorities in order to recommend long- 
term developmental or educational projects which 
might be undertaken by Near Eastern govern- 
ments, either independently or in cooperation with 
the United States Government or private agencies ; 
and, second, to share with the various governments 
and private organizations some of the agricultural 
experience of the United States. 

Engineering. Robert College's engineering 
school has used Department funds to develop 
metallurgical and comnmnications laboratories 
and instruction in sanitary engineering. The 
importance of the engineering school to the 
American as well as to the Turkish Govei'nment 
is shown by the fact that during the war the 
American Army detailed four officers to the school 
to teach Turkish students, many of them in the 
Turkish Army. Robert College has also used a 
part of its grant to enable one of its professors to 
do original research on the waters and currents 
of the Bosporus. 

P-uMicationfs. These have been related to the 
study of Turkish by Americans and of English 
by Turks and to an Arabic history of the United 
States. A grant was made to the American Board 
of Commissioners of Foreign Missions to assist 
it in preparing, publishing, and distributing a 
I'evised modern edition of the Redhouse Turkish- 
English Dictionary. Since there is no adequate 
modern Turkish-English dictionary this new one 
will facilitate the interchange of knowledge and 
skills and become indispensable to the teaching and 
use of English in Turkey. Amei'ican funds also 
made possible the issuing of up-to-date editions of 



! 



APRIL 21, 1946 



611 



iiii eleinentiuy textbook entitled First Lessons in 
Modern Turkish^ an English-Turkish conversa- 
tional dictionary, and science textbooks specially 
adapted for Turkish students, all by members of 
the Robert College staff. 

The first comprehensive history of the United 
States in Arabic is to be printed by the American 
Mission Press in Beirut, which has been publish- 
ing since 1834. Entitled History of the People of 
the United States, it was prepared under the super- 
vision of Philip K. Hitti, head of Princeton Uni- 
versity's school of oriental studies. 

3. Interchange of Persons 

The interchange of persons between nations is 
widely recognized as one of the most effective 
means of increasing international understanding, 
aside from the political and economic benefits to 
be derived from it. 

Tiie American University at Cairo has been 
host to three "cultural ambassadors" sponsored 
by the Department. Edwin H. Calverley, a dis- 
tinguished Arabist, and his wife, Eleanor T. Cal- 
verley, a doctor with long experience in Arabia, 
spent last year at the University's school of ori- 
ental studies wliere Mr. Calverley taught Arabic 
and lectured on Islamics. As women's health di- 
rector at the University, Mrs. Calverley had an 
opportunity to study village health problems and 
complete her book on tropical diseases and tropical 
hygiene. Her husband had these comments on his 
year's experience : 

"Soon after our arrival we found that there 
was already in existence among the friends of the 
University a strong desire to promote scholarly 
pursuits in Arabic and Islamic studies. Those 
teachers and friends of the University soon estab- 
lished an Oriental Society . . . The membership 
was to be Egyptian, British, American, and 
others . . . The papers read in English by the 
Egyptian speakers were especially appreciated. 
Egypt has long been recognized as the literai'y 
center of the Arab world and has had a flourishing 
output of literature. So I became acquainted with 
the librarians and some of the professors at Fuad, 
the First University and the National Egyptian 
Library. All . . . expressed great eagerness to 
develop Egyptian- American cultural cooperation. 
The conviction was given to me that there is not 
stagnation in Egj'pt but rather that there are 
strong currents of thought and action there . . , 



and that good cooperative leadership specially 
from America can win a welcome." 

Calverley outlined a number of cultural projects 
suggested by Egyptians as cooperative enterprises : 
interchange of students and teachers ; development 
of cooperative clinic and hospital services in Egypt 
along the American pattern ; securing microfilms 
of Arabic manuscripts now located in areas for- 
bidden to non-Moslems; publication of a continu- 
ing history of Arabic literature and a series in 
English translation of masterpieces of Arabic 
literature. 

This school year M. Lyle Spencer, dean of 
Syracuse University's school of journalism, is 
teaching at the American University of Cairo in 
connection with the cultural-cooperation program. 
As a result of a survey of Egyptian journalism 
made by Dean Spencer in 1937, the University 
inaugurated the first journalism courses in the 
Near East. Among the large number of men and 
women who have since graduated from the Uni- 
versty in journalism is Fuad Sarruf, who became 
the first editor of the Reader''s Digest Arabic edi- 
tion. In addition to teaching at the Univei-sity, 
Dean Spencer is working with editors, publishers, 
and journalists in various Near Eastern centers 
sharing his personal experience, and he will even- 
tually recommend steps for expanding and im- 
proving journalism training in the Near East. 

Turkey and the United States are exchanging 
pi-ofessors this year in the field of social psy- 
chology. Early in 1945 Muzaffer Serif Bas lu, 
professor of psychology at Ankara University, be- 
gan a two-year period of research and writing at 
Princeton. In the United States he is known as 
the author of The Psychology of Social Norms, a 
book published in 193G which has given rise to 
considerable experimental work in the field of 
social psychology. His chief Turkish work is 
one which attacks misconceptions of race 
psychology. 

To take Basoglu's place for the 194.5^6 school 
year, the Turkish Government has appointed a 
former teacher of his, Carroll C. Pratt, head of 
Rutgers University's department of psychology. 
Mrs. Pratt, also a psychologist and musicologist, 
is assisting her husband and the cultural-relations 
attaclie in music study and appreciation. 

Philip K. Hitti, head of Princeton University's 
school of oriental studies, will be leaving soon to 
spend the summer months in tlie Near East for 
lecturing and research in the field of oriental 



612 



DEPARTMENT OF STATE BULLETIN 



studies with particular reference to American con- 
tributions. As a representative of the American 
School of Oriental Studies he will investigate 
further possibilities for archaeological research in 
the area, and as an American of Lebanese back- 
ground he will be able to discuss the contributions 
to American life of Americans of Arabic origin, 
thus strengthening the bonds of friendship between 
the two cultures. 

Near Eastern men and women enabled to study 
or lecture in the United States under the cultural- 
cooperation program are listed in the accompany- 
ing chart. Most of them have been selected by the 
Institute of International Education or other pri- 
vate American organizations through the Ameri- 
can diplomatic missions in consultation with local 
officials. 

One of the recipients of these fellowships. Miss 
Adnan Ballvis, principal of a junior high school in 
Ankara, Turkey, now studying education at North- 
western University, recently described her enthu- 
siasm at the warmth of her reception in the 
Evanston community and the value of all she had 
seen and learned in the first three months of her 
visit. She wrote : 

"I spent my Christmas vacation in a friend's 
home in Oakville, Iowa. I cannot tell how much I 
enjoyed the little town, with its church, school- 
house, the newspaper office and the friendly in- 
habitants. I drove a tractor in the fields, milked 
a cow and did the chores. They made me feel as 
a member of the family the Christmas night, when 
we sang songs and exchanged gifts. I met simple 
farmers. We discussed politics and international 
relations with democrats and republicans of Oak- 
ville. 

As a part of my school work I visited some of 
the schools in Evanston. I am very nuich im- 
pressed with the pupils' interest toward learning 
about the ways and living of other peoples in the 
world. Teachers certainly are doing great work 
in inspiring children with international friend- 
ship. In every class I have visited I was flooded 
with questions about my country. Everywhere I 
go I meet with people who are anxious to learn 
about Turkey and who express delight in finding 
out how alike we are. 

I had a very interesting experience in a Sunday 
School. It was in a small church in Chicago, where 
one of my friends was teaching Sunday School. 
That day one of the teachers was ill and couldn't 



come. I offered to take the group. We read about 
David, the Shepherd Boy ; thej' were very much in- 
terested when I told them about the country where 
David lived, as I happen to have sjient a part of 
my childhood in Syria, Lebanon and Palestine. 
And, the parents were in no wise shocked when 
they heard that their children had a teacher of 
Moslem creed for their Sunday School. 

A week before Christmas, I was in\ated to a 
meeting of Delta Kappa Gamma, an honorary 
teachers' organization, where I met many teach- 
ers. I was thrilled to notice how our hopes and 
ideals coincided. That is one of my happiest ex- 
periences. I felt so happy that I even managed 
to deliver a speech." 

Near East Eecipients of Graduate Fellowships 
AND LectijReships Awarded IN Near East 
1943-1945 



Country 


Name of recipient 


Institution in U. S. 


Field of study 


Egypt. . . 


Badrawy, Bad- 


New York School 


Social work. 




rawy M. 


of Social Work. 






EI-Abd, Salah . . . 


Univ. of N. Caro- 


Agriculture and ru- 






lina. 


ral sociology. 




Cindy (Miss), 


Bryn Mawr 


Sociology and group 




Aida. 




work. 




Kabanny Bey . . . 


Ohio State and 


Visiting lecturer in 






others. 


education. 




Mosharrafa Bey, 


Princeton 


Visiting professor in 




Ali. 




higher mathemat- 


Iraq. . . . 


Dogramaji (Dr.), 


St. Louis Chil- 


ics. 
Children's diseases. 




Ibsan. 


dren's Hospital. 






Abdullah. Abdul . 


M.I.T 


Meteorology. 




Kadiiim, Abdul . . 


Columbia 


Education. 




A!-Yasin, Moham- 


Columbia 


Education. 




med. 






Lebanon . 


Al-Khalil, (Dr.) 
Sadallah. 


Mayo Clinic. . . . 


Medicine. 




Jabbour, Jibrail . . 


Princeton 


Oriental studies. 




Macksoud. Salim . 


Univ. of Calif . . . 


Farm management 
and irrigation. 




Tueni, Chassan . . 


Harvard 


Journalism. 


Saudi 


Tariky, Abdullah . 


Univ. of Texas. . . 


Petroleum geology 


Arabia. 






and engineering. 


SjTia . . , 


Madany, George. . 


Iowa State 


Industrial chem- 
istry. 




Dabbas, Edward. , 


Lehigh 


Mechanical en- 
gineering. 




Al-Hakim, Muham- 


Univ. of Minnesota 


Engineering. 




mad. 








Alluni, Abdul Aziz. 


Cornell 


Agriculture and 
sociology. 




Mujahid, (Miss) 


Syracuse 


Home economics. 




Zahra. 








Sawwaf, Shawkat . 


Purdue 


Electrical engi- 
neering. 


Turliey . . 


Akbasli, (Dr.) 


Chicago Lying-in 


Obstetrics and 




Zeliha. 


Hospital. 


gynecology. 




Balki§, (Miss) 


Northwestern . . . 


Education. 




Adnan. 








Ba§o2lu, Muzaften 


Princeton 


Psychology. 




§eril. 







APRIL 21. 194b 



613 



Recipients of U. S. Public Health Service In- 
ternships 





Name of recipient 


Institution in U.S. 


Field otbtudy 




Paiiuili. Dr. Ozhan. 


U.S. Public Healtl! 
Service Uospital. 
New Yorlc 


Surpery. 




Renda, Dr. Fevzi . 


U.S. Public Health 
Service Hospital, 
Baltimore 


Infernal medicine. 



Oflicials in the Near East a.s well as of American 
college.s have asked that steps be taken toward 
establishing a central sj'stem of selecting appli- 
cants for study and training in the United States 
to ensure that the best-qualified candidates are 
given help in coming to the appropriate institu- 
tions in the United States. For that reason, there 
are being established in various Near Eastern 
countries committees for study and training in the 
United States — committees of which both repre- 
sentatiA'e Americans and nationals will be mem- 
bers. As presently planned the committees may 
be concerned with three types of i^eople : (1) recip- 
ients of United States fellowships and training 
grants; (2) students and trainees with adequate 
financial means requesting the committee's advice 
or help in placement; and (3) recipients of local 
government grants. Through the committees' 
assistance to non-scholarship students, placement 
groups in the United States will be able to 
distribute Near Eastern students more evenly 
throughout the United States for the mutual 
benefit of the students and various American com- 
munities. The functions of the committees will 
be made as widely known as possible, but there is 
no regulation preventing direct application to 
American institutions, which may or may not refer 
the foreign applicants to the committees. 

Facilitating the interchange of .selected persons 
financed by foreign governments or private 
agencies has also been a part of the cultural- 
cooperation program. To cite two examples, the 
United States Public Health Service and the 
Department are helping to plan the period of 
training in the United States of 13 Syrian doctors 
in the service of the Syrian Government. After 
completing several weeks of English study in 
Washington, these doctors are starting as observers 
in certain American medical institutions special- 
izing in their various fields. In response to a 



request from the Turkish Ministry of Educatii>n, 
the Department and the United States Office of 
Education are looking for qualified Americans 
interested in teaching international law, American 
literature, or j^harmaceiitical chemistry at the 
University of Istanbul or economics at the Uni- 
versity of Ankara. 

J. Cultural Materials 

For the interchange of knowledge and skills 
the importance of cultural materials is second only 
to the importance of persons. Under the Depart- 
ment of State's program, materials supplied to 
selected institutions and individuals in the Near 
East have included publications, scientific and edu- 
cational equipment, films and film-strips, musical 
recordings and art rejiroductions, all purchased by 
the Department of State or by the institutions 
tlsemselves with funds furnished to them. 

Reference sets and basic collections of Ameri- 
can books on various subjects have been sent to 
American and national institutions including the 
Y. M. C. A.'s and the Y. W. C. A.'s, the American 
Junior College at Beirut, Aleppo College, Hebrew 
University, the American School for Girls in 
Cairo, the University of Istanbul, and Ministries 
of Education. Books on American thought and 
activity presented to the Robert College library 
(the only large library in Turkey which permits 
the drawing out of books) were among those bor- 
rowed by alumni and teachers in national univer- 
sities as well as by the college's own students. 
Special collections of books such as children's 
books and books on education and medicine were 
sent to interested groups. A number of subscrij)- 
tions to scientific and professional journals were 
taken out for individuals and organizations in 
response to special requests. The memorandum 
below written to the cultural-relations attache at 
Ankara by an American official after a tour of 
Turkey is one example of what those magazines 
have meant to people otherwise cut off from Amer- 
ican sources : 

"During my recent visit to Samsum, Captain 
Zeki Tolgay of the Turkish Army, who speaks 
good English and states that he has translated 
a number of American magazines which you have 
sent him into Turkish, gave me the enclosed card 
and appreciates very much the things you have 
sent. A civilian there who speaks good Englisli 



GS990.3— 40- 



614 



DEPARTMENT OF STATE BILLETIN 



also asked to be remembered to you and asked me 
to tliank you for tbe maaazines you have sent. I 
believe him to be Emin Hekimgil of the Halkevi 
(folkhouse)." 

Sets of publications have been sent in response 
to particular requests — from the Turkish Ministry 
of National Defense for information on the United 
States' mobilization of its industrial resources, 
from tlie Near East IMusie Teachers' Association 
for song books and music teaching aids, from Leb- 
anese and Egyptian doctors for books and pam- 
phlets about hospital construction and cooperative 
medicine in the United States, from Syria and 
Iraq for model rural schoolhouse plans. 

On a snuiUer but growing scale the interchange 
of Arabic and Turkish material with American 
material is being facilitated. For instance, a col- 
lection of 70 publications of Istanbul University's 
Institute of Experimental Pathohtgy and Cancer 
Kesearch presented to the Army Medical Library 
in Washington was welcomed by the library's 
director in these words : 

''This is the first collection of important medical 
contributions which we have received from Tuikey 
in many years and I am very much pleased to . . . 
have Turkey so well represented. I hope we will 
be able to receive other contributions in the medical 
field from Turkey, for I can assure this is of great 
importance internationally." 

Articles by Turks in sucli fields as anthropology, 
geology, and medicine ha\e been placed in Ameri- 
can journals, and exchanges of certain scientific 
and professional journals are being arranged. 

A considerable amount of scientific equipment 
has been ]5urchased for the engineering and medi- 
cal laboratories at Robert College and the Ameri- 
can University of Beirut. Radio-phonographs 
with public-address sj'stems were presented to a 
number of American and local universities for 
educational uses. Musical and educational record- 
ings and art reproductions, separately and in book 
collections, are being sent to schools and museums. 
Supplementing the Office of AVar Information's 
extensive film and film-strip program, the Depart- 
ment of State has provided a few motion-picture 
projectors, several film-strip projectors, educa- 
tional films, and film-strips for loan by diplomatic 
missions to etlucational groups. 



The Office of International Information and 
Cultural Affairs, 1946 

To face the challenge of another chance for 
peace the Office of International Information and 
Cultural Affairs has been organized within the 
Department of State. Congress willing, the new 
office, taking over some of the activities of the Of- 
fice of War Information, will supplement where 
necessary the private media of commiuiications 
between countries and will expand the original 
program of cultural and scientific interchange of 
ideas and persons between the United States and 
other countries. Ankara, Istanbul, Damascus, 
Beirut, Baghdad, and Cairo are among the world 
centers where American diplomatic missions are 
establishing public-affairs offices in which infor- 
mation officers, cultural attaches, and librarians in 
charge of information centers will work closelv 
together. 

Various government officials have testified as to 
the practical benefits accruing to the United States 
from such a world-wide program. 

Referring particularly to the Near East. Loy 
W. Henderson, Director of the Department of 
State's Office of Near Eastern and African Affairs, 
remarked : 

"A prominent British official, who has spent 
many years in the Middle East made the remark 
to me . . . that in his opinion the American 
University of Beirut, more than any other single 
influence in the Near East, was responsible for the 
loyalty of the Moslem peoples to the democratic 
powers during . . . the war. He pointed 
out quite correctly that there were hundreds of 
officials and intellectual leaders in the countries of 
the Near East who, as a result of their education 
in that university, had become acquainted with 
the democratic concepts and M'ith the ideals of the 
United States, and who were able, with their 
knowledge, to offset the insidious projiaganda of 
the enemy totalitarian countries." 

Congressman Victor Wickersham of Oklahoma, 
after a trija to the Near East, commented : 

"Our observations made us appreciate America 
more. We found that American ways are the 
ideals of most countries. The faith placed in 
America and in our leadership by the countries 



AI'IUL 21. l<)4i> 



615 



which we studieil, makes us extremely conscious 
of the treuiendous resjjonsibility ]il:iced upon us 
for our share of leadersiiip and uiuterial aid nec- 
essary to restore order in a war-torn worhl. The 
enhirjiement and expansion of facilities like the 
American University at Beirut, Lebanon; the 
American Mission at Tehran; Robert College. Is- 
tanbul; the University in Egypt; and American 
hospitals in various places, will prove of great and 
lasting value to the United States. The mission- 
aries in these countries have done more to cement 
friendly relations than nearly any other group, 
We found that the greater number of outstanding 
leaders of the various countries obtained their 
training in one of the above-mentioned institutions. 
We had many requests from various countries for 
further exchanges of scholarships of outstanding- 
students. It is felt that this will prove of great 
value to countries who send their outstanding stu- 
<lents here for training for i-eturn to their own 
c(;untries to aid in educating otheis."" 

Under the Department's program cultural mate- 
rials have been })reseuted to American and nal ional 
institutions in the Near East as gifts from the 
people of the United States for the use of the 
peojjle of the count ly. American cultural insti- 
tutes i^arallel to those in the American republics 
liave not been started, although the Americati 
information libraries started by the Office of 
War Information in Istanbul, Beirut, Damascus. 
Baghdad, and Cairo have aroused great interest 
ill American knowletlge and skills and served 
growing numbers of people. 

Conclusion 

Cultural cooperation with the Near East, as 
with any other area, is a two-way proposition. So 
far the flow has been primarily outward— letting 
Near Easterners know about Americans, but more 
and more the flow can and should go both ways. 
Americans need to know almost as much about the 
Near East and its civilization as the Near East 
needs to know about the United States and Amer- 
ican civilization. There should be more centers 
in the United States and in the Near East where 
scholars of e\ei'v nationalitv niav aather for studv 



and research in Near Eastern cultures and where 
government officials, businessmen, and teachers 
and writers may receive specialized training. 

It is not only about the ancient civilizations 
of the Near East that Ameiicans can learn, but 
they could also benefit, and practically so, from 
more knowledge of modern social developments 
ill Turkey such as the establishment of the Halke- 
vis, or folk-houses, serving as centers of community 
education and recreation. American social scien- 
tists have had reason to regret that they could not 
apply modern techniques of observation and 
measurement retroactively to certain social proc- 
esses now virtually completed in the United 
States. They should realize that at this nKjinent 
nomads in the Arabian Desert are jumping across 
the centuries into modern industrial life, as they 
are trained almost overnight to work in the oil 
refineries. (Highly individualistic for centuries, 
one group of them was striking for higlier wages 
when Congressmen Frances Bolton of Chio and 
Karl Muiidt of South Dakota were visiting Saudi 
Arabia recently.) A study of this process of 
adjustment would be of inestimable value to the 
social sciences. 

Not only can the body of knowledge in the 
United States about the Near East be enriched, 
but also the already existing body of knowledge 
about the Near East can be more widely spread — 
in schools, in community groups like the League 
of Women Voters, the Foreign Policy Association 
and the East -West Association, through films, 
recordings, and publications, as well as through 
the presence of individual representatives of the 
Near p]ast. 

The opportunity for cultural cooperation with 
the Near East, as with the rest of the world, chal- 
lenges not only private American institutions 
abroad and the American Government, but all 
sorts of individuals and organizations in the 
United States as well. The former have been 
meeting the challenge for a century; the Govern- 
ment, for a few years. But neither of these groups 
jirefers to work alone. Both of them are only 
pumping stations facilitating the two-way flow of 
knowledge and skills between the people of the 
Near East and the people of the United States. 



616 



DEPARTMENT OF STATE BULLETIN 



The American Trade Proposals: 

An International Trade Organization 



Article by LOUIS K. HYDE, Jr. 



PROBABLY THE MOST COMPLEX of the Specialized 
agencies pi"oposed for creation in relation to 
the United Nations is the Intei-national Trade 
Organization. The story of ITO — why it has to 
be so extensive and so complex — is written upon 
the three pillars of its foundation : 

(1) reduction of trade barriers (which are ;/or- 
ervmental measures) ; 

(2) action against practices of combines and 
cartels (which are private business arrangements) : 

{'?>) orderly connnodity adjustments (including 
carefully defined principles for dealing with the 
problem of surpluses) . 

These three fields, although closely connected, in- 
A'olve radically ditt'erent types of activity. Indeed, 
at one stage serious consideration was given to the 
question whether the Trade Organization should 
be one agency or tlu'ee sejaarate agencies dealing 
respectively with these three topics. 

It appeared best finally to propose a single or- 
ganization with enough internal specialization to 
Ijerform its various tasks ; for it was realized that 
international trade is a single entity, that it is af- 
fected by the three sorts of forces mentioned, and 
that it is essential that action taken in one field 
shall not be such as to nullify what is being at- 
tempted in another. The Proposals therefore rec- 
ommend a single International Trade Organiza- 
tion, with a single conference and a single executive 
board to deal with all three problems. 

This article is the fifth of a series on the American 
Trade proposals. For the first four articles, see 
Bulletins of Mar. 17, 1946. p. 403, Mar. 24, 1946, p. 455, 
Mar. 31, 1946, p. 509, and Apr. 7, 1946, p. 561. For text 
of the Proposals, see Bulletin of Dec. 9, 1945, p. 913, 
and Department of State publication 2411. 

' Mr. Hyde is Adviser on permanent U. S. Delegation on 
the United Naticms. 



The three-way nature of tl»e functions of the 
organization is nevertheless apparent in the 
structure proposed. This includes, under the con- 
ference and the executive board, three constituent 
commissions: (1) a commission on commercial 
policy; (2) a commission on business practices; 
and (3) a commodity commission. 

It is proposed that the three commissions .should 
be a permanent feature of the Organization's struc- 
ture, rather than exist as mere temporary or ad hoc 
bodies. Each of the three deputy directors gen- 
eral of the Organization would sit with one of the 
commissions as an ex officio member. 

It is contemplated that the Organization will 
l^ecome one of the specialized agencies officially 
brought into relationship with the United Nations 
and that it will establish relationships with other 
specialized agencies. For the ITO will be founded 
in the determination to carry out the pledge in the 
United Nations Char-ter by which members agree 
to "take joint and separate action" to achieve the 
economic and social objectives of the United 
Nations. 

Putting it another way, the function of the ITO 
will be to help make real in the field of interna- 
tional trade the purjDOse so often announced dur- 
ing the war: Continued collaboration of the 
United Nations in practical affairs for mutual 
advantage. 

Interrelation of economic problems is well il- 
lustrated by the structure of the ITO. The com- 
modity commission, for example, will have 
responsibility for dealing in an orderly way with 
the problems of commodities which may be in 
world surplus. But each such commodity pre- 
sents problems of a different character — cotton, 
wool, rubber. Accordingly, provision is made in 
the Proposals for a studj' group for any problem 



APRIL 21, 1946 



61', 



commodity, and in raseb wliere an inlergoveru- 
mental commodity agreement is actually entered 
into, provision is made for a commodity council to 
administer it. However, since there is a risk that 
peojjle dealing with any one commodity may ovei- 
look the general interest, all study groups and all 
commodity councils are subject to the commodity 
commission. 

Most commodities in world surplus have been 
agricultural products. So provision is made in 
the Proposals for close relations with the Food 
and Agriculture Organization of the United 
Nations. 

What is done about particular commodities 
may have important effects upon the entire state 
of world trade and especially upon the effort to 
relieve trade from burdensome restrictions, both 
private and governmental. Conversely, what is 
done about world trade — especially about cartels 
and trade barriers — may affect the demand for 
particular conunodities. Hence it is proposed to 
set up the commodity commission not by itself 
but as part of a single ITO — which, as we have 
seen, includes also a commercial policy commis- 
sion and a commission on business practices — all 
three being subject to the same executive board and 
the same conference. 



Furthermore, the complexity of economic forces 
is even greater. Demand for particular commod- 
ities is sure to be influenced by the flow of inter- 
national investment, by exchange rates between 
currencies, by the levels of wages in various coun- 
tries, and by the condition of employment and 
production. Accordingly, the Proposals make 
provision for relations between the ITO and the 
International Bank for Keconstruction and De- 
velopment, the International Monetary Fund, and 
the International Labor Organization, as well as 
the Economic and Social Coun<'il of the United 
Nations. 

In the proposed ITO we have a complex but 
closely integrated structure, well designed to en- 
able countries to impi'ove the basis of trade be- 
tween them for their mutual advantage. The 
success of the Organization will depend in part 
upon the wisdom of the people who ai'e named to 
fill its various offices, but even more upon the wis- 
dom and self-restraint of the national govern- 
ments who make the ultimate decisions. Prosper- 
ity, like peace, is indivisible. World-wide appre- 
ciation of that reality and practical measures to 
give expression to it can exert a powerful and 
constructive influence on the shape of things to 
come. 



International Organizations and Conferences 



Calendar of Meetings 

Ciiuiicil (if Fdi-eigii Ministers: Meeting of Deinities Ldnilim 

Far Eastern Cmiim.isslon Wasliing'tdii 

Preliminary Jleeting of Conference on Health Organization Paris 

Allied-Swiss Negotiations for German External Assets AVashington 

Anglo-American Committee of Inquiry B?rn 

Thiril Conference of American States Members of the Interniiti<jnal Labor Mexico, U.F. 
Organization 

Food and Agriculture. Conference of Ministers (under the auspices of the London 
Emergency Economic Committee for Europe) 

Fifth I'an American Railway Congress Montevideo 

PICAC > : European Route Service Conference Paris 

The United Nations : 

Security Council New York 

Military Staff Committee New York 

Negotiating Committee on League of Nations Assets Geneva 

Special Com.mittee on Refugees and Displaced Persons London 

Economic and S<icial Council : Second Session • New Y'ork 

General Assembly New York 

The dates in the calendar are as of Apr. 7. 



January 18 

Feliruary 26 

March 15 

Alarch 18 

Arrived about April 1 

April 1 

Afiril o 

April ."i 
April 24 

March 2.j 
March 2.5 
April G 
April 8 
May 25 
September 3 



Activities and Developments 



The Far Eastern Commission at its regular 
weekly meetinji' on Ajjril '.'> unanimously aijproveu 
a i)olicy for the apprehension, trial, and pnnish- 
nient of war criminals in the Far East. The text 
will he made availalile at a later date. 

The Food and Agriculture Organization of the 
United Nations has called a meeting on urgent 
food problems witli a view to coordinating eiforts 
to meet workl food needs in the winter of l'.)4(i— IT 
and tliroughout the following year. This meeting 
is to hv held in Wasliington during the week begin- 
ning May 2(1, Sir John ISoyd Orr, Director Gen- 
•■ral of FAO, lias announced. 
618 



Those invited to tlie meeting include representa- 
tives of UXRRA, tlie Combined Fot)d Board, and 
other international organizations concerned with 
food, together with re.sponsil)le ministers espe- 
cially from coiuitries tliat Inive a major contribu- 
tion to make. 

Tlie conference is the outcome of discussions in 
the United Nations Oeneral Assembly in London, 
wliere a resolution was unanimously passed re- 
questing international organizations concerned 
with food and agriculture to intensify efforts to 
obtain as full information as possil)le on the world 
food position and future outlook in order to assist 



APRIL 21. J 946 



619 



governments in detennining tlieir sliort- and long- 
terni policy. "The initiatiAe in this task", ]\Ir. 
Stettinius stated, "we feel shonld fall to the Food 
and Agi'icnlturc Organization of the Xaiited 
Nations." 

In telegrams to tlie President of the General 
AiBsenibly and th-e Secretary-General of the United 
Nations. Sir John Orr otFered the services of FAO, 
as the only organization concerned with all aspects 
of food and agricnltiire on a world scale, to head 
the work. It was agreed that FAO was not in a 
position to do anything effective about the immedi- 
ate situation this spring, which in any case is being 
handled by I^NRRA. the Combined* Food Board, 
and other organizations; l)ut that it could step in 
in time to be of use a little later. Informed opin- 
ion agrees that, whatever the outcome of this year's 
harvests, the food situation will still be acute next 
winter and possibly the winter following. 

Other international agencies dealing with food 
are temporarj^ and limited in functions or geo- 
graphical coverage or botli. It was agreed that 
FAO is the logical agency to bring them together 
and to obtain general agreement among the gov- 
ernments of the principal countries concerned. 

The puipose of the ilay meeting will be : 

1. To assess the present food position and the 
[)rospects for 1946-47. It is hoped to obtain gen- 
eral agreement on this and thus eliminate some of 
the confusing information that has appeared in 
the past. 

2. To decide on practicable measures for assur- 
ing the most effective distribution and use of avail- 
able supplies. Tliis might involve decisions re- 
garding, for examiile. the line to be drawn between 
the use of grain for direct human consumption and 
for livestock feeding. 

3. To determine practicable measures for in- 
creasing sui)iilies for next winter and also for the 
winter of 194T-4S. This would involve considera- 
tion of jM'oduction goals during the next year. 

4. To work out means whereby FAO can keep 
the world food position under contiiuu)us review 
and report thereon to governments. This will 
involve continuing close cooperation with exist- 
ing bodies and coordination of the facts and 
figures they assemble. 

5. To consider means for better coordination of 
the activities of all of the existing organizations. 



Tiie Director General made it clear tliat FAO 
will not take on the dii'ect distribution of relief 
or other executive functi<ins. Under its consti- 
tution, it is essentially an investigative, advisory, 
and cooi-dinating body; and it will act in this 
ca[!acity for the temporary international agencies 
concerned with food and agriculture, as well as 
for governments. 

The Director General explained that in calling 
the May meeting FAO is getting into the inter- 
national food situation somewhat sooner than had 
origimilly been anticipated. At the time the or- 
ganization was set up, it was generally thought 
that the critical food shortage would not be so 
acute as it turned out to be, partly as a result of 
wide-spread drought in large areas and the failure 
of the monsoon in India and of rains in Africa. 
When it was evident that conditions were worse 
and that the critical period would last longer than 
had been anticipated, it became necessai'y for 
some international organization to act in an over- 
all advisory capacity as soon as po.ssible. 

FAO will therefore aim to dovetail long-term 
plans with the urgent production and distribu- 
tion needs of the next year or two. This will be 
advantageous from the stand])oint of world agri- 
culture as it will allow time for the maturing of 
plans to avoid an agricultural depression caused 
by a sudden post-war drop in the demand for 
major farm products. One of the chief objects 
of governments in setting up FAO was to work 
out methods for making high production possible 
as a continuing international policy in peacetime. 



Appointment of Fiorello H. 
La Gnardia as Director General 
of UNRRA 

The resignation of Herbeit H. Lehman as Di- 
rector General of UNERA was accepted on March 
28, 1946 by the UNRRA Council at its Fourth 
Session in Atlantic City. The appointment of 
Fiorello H. La Gnardia to succeed Mr. Lelnnan 
was unanimously api)roved by the Council on 
Mai'ch 29. 



The United Nations 



Security Council: Discussion of Soviet-Iranian Matters 



Remarks made hy the Secretary of State at the 
28th meeting of the Security Council on March 
29,191,6 

I should like to make a statement. Assurances 
liave been given to the Council by the Soviet repre- 
sentative that the Soviet Union has already com- 
menced to withdraw its troops from Iran ; that It 
is the intention of the Soviet Government to pro- 
ceed with the withdrawal of its troops as rapidly 
as possible; and that barring- "unforeseen circum- 
stances" the withdrawal of all Soviet troops from 
the whole of Iran will be completed within five or 
six weeks. 

The Iranian representative has stated that the 
dispute with the So\'iet Union arises from the 
continued presence of Soviet trooi^s in Iran be- 
yond the date stipulated for their withdrawal in 
the Tripartite Treaty of January 29, 1942, and 
has requested the Council to recommend their 
promjit and unconditional withdrawal. 

The Soviet representative has stated that the 
withdrawal of troops was being nuide in accord- 
ance with an understanding with the Iranian Gov- 
ernment, but the existence of such understanding 
has not been confirmed by the Iranian Government. 

The assurances given to the Council by the 
Soviet representative have not been completely 
unqualified, but are subject to change in event of 
"unforeseen circumstances". Apparently negoti- 
ations on certain matters are still proceeding be- 
tween the Soviet Government and the Iranian 
Government, and the Council is not informed as to 
the exact status of these negotiations. 

Even if the Council should now proceed to con- 
sider the substantive issues involved in the dispute 
between the Soviet Union and Iran and to recom- 
meiul the withdrawal of Soviet troops as requested 
620 



by Ii'an. Soviet troops could not be with<lrawn 
from Iran in a substantially shorter period of time 
than that within which the Soviet Government has 
declared it to be its intention to withdraw them. 

But the members of the Council must be solicit- 
ous to avoid any possibility of the presence of 
Soviet troops in Iran being used to influence or 
coerce the Government of Iran in negotiations 
with the Soviet Government. 

If the Council could obtain more adequate and 
exact information regarding the status of the nego- 
tiations between the Soviet Government and the 
Iranian Government, the Council might be able to 
satisfy itself that the assurances of the Soviet Gov- 
ernment as to the prompt withdrawal of troops 
from Iran are in fact for all jiraetical purposes 
unconditional. 

In that event, there miglit be no need for the 
Council to go into the substantive issues, provided 
it reserved the right to both parties to have the 
case immediately taken up by the Council should 
there be any developments which threatened to re- 
tard the withdrawal of troops. 

I would suggest that the President of the Coun- 
cil request the Sscretai-y General to ascertain at 
once from the Soviet Government and the Iranian 
Government through their representatives and re- 
port to the Council at its meeting on Tuesday, 
April 2, the existing status of negotiations between 
the two Governments, and jJarticularly to ascer- 
tain fi'om the representatives of the two Govern- 
ments and report whether or not the reported with- 
drawal of troops is conditional upon the con- 
clusion of agreements between the two Govern- 
ments on other subjects. 

With this information the Coiuicil will then be 
in a much better position to decide what sluudd be 
the next step. 



APRIL 21, 19-16 



621 



Re/narks made l>y the Secretary of State at the 
30th meeting of the Security Council on April 4, 
191,6 

I desire to offer the following I'esoliition for the 
consideration of tlie Council: 

'■Tai\ing' note of the statements of the Iranian 
Representative that the Iranian appeal to the 
Council arises from the presence of Soviet troops 
in Iran and their continued presence there beyond 
the date stipulated for their withdrawal in the 
Tripartite Treaty of January 29, 1942 : 

"T:dvin<i- note of the replies dated April 3rd of 
tlie Soviet Government and the Iranian Govern- 
ment pursuant to the request of the Secretary- 
General for information as to the status of the 
negotiations between the two Governments and as 
to whether the withdrawal of Soviet troops from 
Iran is conditional upon agreement on other sub- 
jects; and in particular taking note of and relying 
upon the assurances of the Soviet Government that 
the withdrawal of Soviet troops from Iran has al- 
ready commenced; that it is the intention of the 
Soviet Government to proceed with the withdrawal 
of its troojjs as rapidly as possible ; that the Soviet 
Governmeait expects the withdrawal of all Soviet 
troops from the whole of Iran to be completed 
•witliin five or six weeks; and that the proposals 
under negotiation between the Iranian Govern- 
ment and the Soviet Government 'are not con- 
nected with the withdrawal of Soviet troops': 

"Being solicitous to avoid anj' possibility of the 
presence of Soviet troops in Iran being used to in- 
fluence the course of the negotiations between the 
Governments of Iran and the Soviet Union ; and 
recognizing that the withdrawal of all Soviet 
troops from the whole of Iran cannot be com- 
pleted in a substantially shorter period of time 
than that within which the Soviet Government 
has declared it to be its intention to complete such 
withdrawal : 

^•Rewlveil that tlie Council defer further pro- 
ceedings on the Iranian appeal until May 6, at 
which time the Soviet Government and the 
Iranian Government are requested to report to 
the Council whether the withdrawal of all Soviet 



troops from the whole of Iran has been completed 
and at which time the Council shall consider what, 
if any, further proceedings on the Iranian appeal 
are required; 

'■■Prodded, however, that if in the meantime 
either the Soviet Government or the Iranian Gov- 
ernment or any member of the Security Council 
reports to the Secretary-General any develop- 
ments which may retard or threaten to retard the 
prompt withdrawal of Soviet troops from Iran, 
in accordance with the assurances of the Soviet 
Union to the Council, the Secretary-Genei-al shall 
immediately call to the attention of the Council 
such reports which shall be considered as the first 
item on the agenda." ^ 

Mr. President, I do not desire to add any lengthy 
explanation of the resolution. It speaks for itself. 
It will be noted that it rests upon the statement I 
made to the Council last week, when I presented 
the suggestion that the Soviet Govermnent and 
the Iranian Government should be conniiunicated 
with through their representatives. At that time 
I concluded my statement with these words: '"if 
the Council could obtain more adequate and exact 
information regarding the status of the negotia- 
tions between the Soviet Government and the 
Iranian Government, the Council might be able 
to satisfy itself that the assurances of the Soviet 
Government as to the prompt withdrawal of 
troops from Iran are in fact, for all practical 
purposes, unconditional. In that event there 
might be no need to go into the substantive issues 
provided the Council reserved the right to both 
parties to have the case immediately taken up by 
the Council should there be anj' development 
which threatened to I'etard the withdrawal of 
troops." 

The resolution I have now offered has been 
drafted pursuant to the statement I then made that 
the information presented by the representatives of 
the Governments might make it possible for the 
Council to take such action as is now suggested 
and which I hope will meet with the approval of 
the Council. 

' This resolution was adopted at tlie 30th meeting of 
the Security Council by nine affirmative votes. 



The Record of the Week 



we can attain a lasting peace." 

ADDRESS BY THE PRESIDENT' 



THE United States today is a strong nation : 
tliere is none stronger. This is not a boast. It 
is a fact which calls for solemn thought and due 
humility. It means that with such strength, we 
have to assume leadership and accept responsibil- 
ity. It would be a tragic breach of national duty 
and international faith if, consciously or care- 
lessly, we permitted ourselves ever to be unpre- 
pared to fulHl that responsibility. 

We still have much to do. We are determined 
to remain strong. 

AVe still liave all the duties of the armies of oc- 
cupation. We still have to do our share in super- 
vising former enemy governments, enforcing the 
peact terms, disarming and repatriating enemy 
troops, taking care of hundreds of thousands of 
displaced pei'sons. We still have to service and 
supply all our troops overseas. We still have to 
protect and preserve American property all over 
the world. We still have to destroy the war mate- 
riel and the war-making industries of our enemies. 

But far and above all those things, we must re- 
main strong because only so long as we remain 
strong can we insure the peace of the world. Peace 
has to be built on power for good. Justice and 
good-will and good deeds are not enough. We 
cannot on one day proclaim our intention to pre- 
vent unjust aggression and oppression in the world, 
and on tiie next day call for immediate scrapping 
of our military might. 

AVe must remain strong, not because we plan or 
want to impose our views upon the world by force, 
or do battle with any nation. We must remain 
strong in order to retain our leadership, and, with 
all our resources, exercise that leadership on be- 
half of a world of peace and harmony among all 
022 



nations and all peoples. That is not only our moral 
duty; it is a firm obligation which we have under- 
taken as a member of the United Nations. 

For the desire for peace and freedom is the very 
root of our foreign policy. I stated the funda- 
mental foreign policy of the United States in New 
York City on Navy Day last October and in my 
message to the Congress January 21, 1946. That 
policy remains the same todav'. It is based squarely 
upon the pursuit of peace and justice; and it 
definitely rejects any selfish advantage for our- 
selves. 

The immediate objective of our foreign policy is 
to support the United Nations to the utmost. 

It is my conviction that the Security Council of 
the United Nations, now meeting in New York 
City, is fully capable of reaching agreements be- 
tween the peoples of the world — however different 
their traditions and philosophies, and however di- 
vergent their interests. The essential requirements 
to that end are that its member nations follow the 
dictates of justice, that they consider and respect 
the legitimate aspirations and needs of their fellow 
members. 

All citizens of the United States worthy of the 
honor of that citizenship are determined to pre- 
serve our democratic form of government. They 
will not, on tlie other hand, interfere in any way 
witli the governments of other peace-loving petiple. 

Peace is not a reward that comes automatically 
to those who cherish it. It nnist be pursued, un- 
ceasingly and unwaveringly, by every means at 
oui' connnand. 

^ Made in Cliicagd mi Apr. 0, 1040 in coniu'ction with the 
Dli.servaiice of Army Day and released to the iiress by the 
Wliite Honse on the snnie date. 



APRIL 21. 1946 



623 



111 the pursuit of pt-nco. tliere is no single path. 
^Ve nnist Inive a policy to guide our relations with 
every country in every part of the world. No 
country is so remote from us that it may not some 
day lie inxolved in a matter which threatens the 
peace. Rememlier that the P'irst AVorld War be- 
gan in Serbia ; that the peace of Versailles was 
first broken in Maiicliuria ; and that the Second 
World AA'ar began in I'oland. Our foreign policy 
must be universal. 

In the Far East our i)rogram for peace is de- 
.signed to combat and remedy the conditions that 
made it possible for Japan to turn upon her neigh- 
bors. We have disarmed Japan, and are promot- 
ing reforms which we hope will bring into being 
a democratic and peaceful nation. But the con- 
trol and reform of Japan is only a beginning. In 
the Far East, as elsewhere, we shall encourage the 
growth and spread of democracy and civil liberties. 

In Korea M'e are even now working with our 
Soviet Allies and with Korean leaders to create 
a provisional democratic government. Our aim 
is to speed the day when Korea will again take her 
place as an independent and democratic nation. 

In China we are supporting a free and demo- 
cratic goverimient. Through the wise counsel of 
General Marshall the Chinese leaders are on the 
road to achieve political unity by peaceful demo- 
cratic processes. 

The Philippine Commonwealth, on July fourth 
next, will become a fully sovereign and independ- 
ent nation. We hope for the i:)eaceful settlement 
of the ditferences which have arisen between 
colonial peoples and colonial sovereigns in all 
areas. 

The roots of democracy, however, will not draw 
much nourishment in any nation from a soil of 
poverty and economic distress. It is a part of our 
strategy of peace, therefore, to assist in the re- 
halnlitation and development of the Far Eastern 
countries. We seek to encourage a ([uick revival 
of economic activity and international trade in 
the Far East. To do that we stand ready to extend 
credits and technical assistance to help build the 
peace. 

W\' recognize that the Soviet Union, the British 
Commonw ealth. and other nations have important 
interests in the Far East. In return we expect I'ec- 
ognition by them that we also have an interest in 
maintaining peace and security in that area. We 
expect understanding on their part that our ob- 



jectives are dedicated to the pursuit of peace; 
and we shall expect them to pursue the same 
olijectives. 

Turning to the Near East and Middle East, we 
find iin area which presents grave problems. This 
area contains vast natural resources. It lies across 
the most convenient routes of land, air, and water 
communications. It is consecjuently an area of 
great economic and strategic importance, the na- 
tions of which are not strong enough individually 
or collectively to withstand powerful aggression. 

It is easy to see. therefore, how the Near and 
Middle East might become an arena of intense 
rivalry between outside powers, and how such 
rivalry might suddenly erupt into conflict. 

No country, great or small, has legitimate in- 
terests in the Near and Middle East which cannot 
be reconciled with the interests of other nations 
through the United Nations. The United Nations 
have a right to insist that the sovereignty and in- 
tegrity of the countries of the Near and Middle 
East must not be threatened by coercion or 
penetration. 

If peace is to be preserved and strengthened in 
this important section of the world, however, we 
can not be content merely to assure self-govern- 
ment and independence. The people of the Near 
and Middle East want to develop their resources, 
widen their edncational opportunities, and raise 
their standards of living. The United States will 
do its part in helping to bring this about. 

Turning to Europe, we find her suffering the ter- 
rible pangs of hunger and privation. Economic 
reconstruction is first of all a task for the people 
and the governments of Eurojoe. Help from out- 
side, hoAvever, will quicken the pace of reconstruc- 
tion and reduce the cost in human misery. The 
United States is in a position to help; we are help- 
ing now; and we shall continue to help. 

We shall help because we know that we ourselves 
cannot enjoy prosperity in a world of economic 
stagnation. We shall help because economic dis- 
tress, anywhere in the world, is a fertile breeding 
ground for violent political upheaval. And we 
shall help because we feel it is simple humani- 
tarianism to lend a hand to our friends and allies 
who are convalescing from wounds inflicted by our 
common enemy. 

Food is Europe's most critical need. It is not 
enough to share our surijluses, for to share sur- 
pluses is not really to share at all. No worthy 



624 



DEPARTMENT OF STATE BULLETIN 



American will hesitate to reduce his own consump- 
tion of food when the food so released will avert 
starvation abroad. 

Next to food, Europe's greatest need is for 
machinery and raw materials to rehabilitate her 
transportation systems, her mines, and her fac- 
tories. We have been supplying these products to 
Europe on long-term credit and we shall continue 
to do so. Billions of dollars for reconstruction 
have been made available by the Congress through 
the Export -Import Bank and through the Inter- 
national Bank. 

We seek to lay the groundwork of a world 
trading system which will strengthen and safe- 
guard the iDeace. We want no return to the kind 
of narrow economic nationalism which poisoned 
international relations and undermined living 
standards between the two world wars. 

The Congress is now considering, and I hope will 
soon approve, the financial agreements with Great 
Britain. These arrangements have not been made 
merely to support a faithful ally. They are of 
vital importance to our own country as a means of 
opening the channels of world trade to American 
enterprise. 

We shall work to achieve equal opportunity in 
world trade, because closed economic blocs in 
Europe or any place in the world can only lead to 
impoverishment and isolation of the people who 
inhabit it. 

We shall press for the elimination of artificial 
barriers to international navigation, in order that 
no nation, by accident of geograiDhic location, shall 
be denied unrestricted access to seaports and inter- 
national waterways. 

The American Republics propose to settle 
diiferences between the nations of the Western 
Hemisphere as good neighbors by consxdtation in 
the connnon cause of peace and national well- 
being — consultation in which all of them will 
have equal representation. The United States 
intends to join with other sovereign Republics of 
America in a regional pact to provide a common 
defense against attack. 

Perhaps the greatest challenge which the war 
has bequeathed to us is the control of atomic 
energy' so that this vast new force may not destroy, 
but instead may serve, mankind. Our country 
has joined with all the United Nations in a deter- 
mined effort to devise international action which 
will achieve these ends. We are pressing on stead- 
fastly in this ta.sk. We realize that we must bring 



to it political imagination as great as the scien- 
tific genius which unleashed this new force. The 
same unswerving determination and effort which 
produced the release of atomic energy can and will 
enable mankind to live without terror and reap 
untold benefits from this new product of man's 
genius. 

I am not pessimistic about the future. I have 
confidence that there is no international problem 
which cannot be solved if there are the will and 
the strength to solve it through the United Na- 
tions which we have all created. 

We attained overwhelming victory in close 
union with the free and peaceful nations of the 
world. In the same kind of union with them, and 
with the help of the same heroic men and women 
who fought the war and whom we honor today, 
we can attain a lasting peace. 



Proposed Meeting of Council 
of Foreign Ministers in Paris 

[Released to the press April o] 

The Secretary of State on the night of April i 
transmitted the following message through the 
American Embassies at London, Moscow, and 
Paris to Foreign Minister Bevin, Foreign Min- 
ister Molotov, and Foreign Mini.ster Bidault : 

"I should like to suggest a meeting at Paris be- 
ginning Ai^ril 25 of the Council of Foreign Min- 
isters made up of the Foreign Ministers of the 
states which are concerned with the preparation of 
the peace treaties which it was agreed at the Mos- 
cow Conference should be submitted to a jieace 
conference to be convened at Pai-is not later than 
JNIaj' 1. I hope you will agree with me that such a 
meeting is essential to enable us to carry out the 
decision of the Moscow Conference with respect to 
the peace conference. 

"I have been much distressed at the slow prog- 
ress made by our deputies. I hope that each of us 
maj^ instruct our deputies to press forward their 
work on the drafts with utmost speed reserving 
major matters on which they cannot agree for reso- 
lution by the Foreign Ministers at the Paris meet- 
ing beginning April 25." 



APRIL 21, 1946 



625 



The Role of UNESCO in Our Foreign Policy 



STATEMENT BY ASSISTANT SECRETARY BENTON 



I'cd-f of letter from Secretary Byrnes read to the 
Committee hy Mr. Benton before making his 
statement 

April 2, 1946 
Dear Mr. Bl(i(im: 

I understand the Foreign Affairs Committee will 
begin hearings shortly on United States member- 
ship in the United Nations Educational, Scien- 
tific and Cultural Organization (UNESCO). I 
want to express to you my full and hearty support 
of the Organization. 

In President Truman's address last June, at San 
Francisco, he said "we must set up an effective 
agency for consistent and thorough interchange 
of thought and ideas, for there lies the road to a 
better and more tolerant understanding among 
nations and among peoples". UNESCO is de- 
signed to fulfill the purposes outlined by the 
President. 

I can conceive of no more important endeavour 
than to make the mind of man a constructive force 
for peace. That effort is fundamental to the suc- 
cess of the United Nations' Organization. We 
realize that world peace can be maintained only by 
the united efforts of all peoples. But men work 
together most effectively when they have learned 
to think together and to feel together. Without 
common knowledge, common agreement is difficult 
or impossible. 

The discovery of atomic energy has made the 
task of the United Nations Educational, Scientific 
and Cultural Organization an even more impera- 
tive one. In a world where nations may arm 
themselves with weapons against which there is no 
physical defense, basic security lies in the creation 
of mutual trust and confidence among the peoples 
of the world. If UNESCO can bring that goal 

Hade on Apr. 3, 19-10 before the Committee on Foreign 
Affairs of the House of Representatives on the United 
Nations Educational, Scientific and Cultural Organization. 



nearer by one step, it deserves our prompt and 
wholehearted participation. 
Sincerely yours, 

James F. Btrnes 
The Honorable 
Sol Bloom, 
House of Representatives. 

Confiiitiation of statement by Mr. Benton 

The statement of the Secretary of State which 
I have just read helps to clarify the potential role 
of UNESCO in our over-all foreign policy, and 
thus UNESCO's relation to the achievement of 
peace and security through international coopera- 
tion in the broad and vital fields with which it 
deals. 

One trouble in thinking and talking about this 
proposed organization is its long and unwieldy 
name — United Nations Educational. Scientific and 
C^ultural Organization. The second trouble is tliat 
the inevitable contraction to its initials, UNESCO, 
makes it sound like something wrapped in cello- 
phane. Actually, in the long-range pi'ogram of 
international cooperation which has been the 
dream of mankind since time immemorial and is 
now the single most practical metliod to assure 
peace, no part of the general scheme is more down- 
to-earth, more intimately related with the day-by- 
day life of the people of the world, and more 
necessary if UNO itself is to succeed as a world 
force. 

When I was asked to enter the State Depart- 
ment last August 31st, the immediate task was the 
merging of the various Govei'nment agencies and 
units which during the war had participated in 
our information and cultural-relations programs 
in other countries, and, by vigorous cutting of ac- 
tivities no longer essential, to lay the groimdwork 
for the present proposed international informa- 
tion program whicli has been submitted to Con- 



626 



DEPARTMENT OF STATE BLLLETIIS 



gress. But this alone — a one-way TTnited States 
])rogram addressed to the people of other coun- 
tries — is obviously only a part of that great plan 
of world-wide teamwork which the United States 
Government and the American people have 
pledged themselves to support and defend — the 
United Nations Organization. I'NESCO. which 
represents the fields of education, of science, and 
of all that we label "culture," in that plan of 
world-wide teamwork is clearly indisj)ensable. 
Thus, my own activities have necessarily embraced 
participation in the steps which have been taken 
to bring UNESCO to its present point. 

When I came into tlie State Department I found 
that plans were already far along for the forma- 
tion of such an organization, both here and abroad. 
The London conference last November, from 
which came the UNESCO constitution now before 
us, was preceded by work going back to 19-42, 
notably in the 1943 London conference when a 
working draft for a constitution was first made. 
The constitution builds also on the earlier experi- 
ence of the Listitute of Intellectual Cooperation 
in Paris, the International Bureau of Education 
at Geneva, the International Council of Scientific 
LTnions, and other bodies. 

I found that this work was a direct response to 
a wide-spread feeling in the United States that 
there must be a United Nations organization 
which would marshal the forces for understand- 
ing among the peoples of the world. In a national 
opinion poll last year, 85 percent of all persons 
interviewed favored establishment of such an or- 
ganization. Leaders and groups in all fields re- 
lating to this work were staunch campaigners for 
favorable action. This movement of public opin- 
ion culminated in the hearings on the iNIundt Res- 
olution before tliis committee last JMa}', which re- 
sulted in its unanimous ai)proval by the House, 
and later of the companion Fulbright-Taft 
Kesolution in the Senate. 

The San Francisco conference was an equally 
strong demonstration of the support of the Ameri- 
can people, when unanimous a])proval by the 42 
consultants representing influential American or- 
ganizations was given to all provisions of the UNO 
charter pi'oviding for educational and cultural co- 
oj)eration. These organizations included the 

'Mr. MacLei.sli's stnteiiieiit follows ut the end of Mr. 
Benton's statement. 



A.F. of L., tlie C.I.O., the Nationaf Association of 
Manufacturers, the U. S. Chamber of Conunerce, 
and the four farm organizations. Both Mr. 
Bloom and Mr. Eaton, I am told, witnessed the en- 
dorsement of these organizations. 

Armed with this national support, the United 
States delegation in London last Novemljer, in- 
cluding Representative Merrow, did its full share 
in helping the representatives of 44 nations to 
reach unanimous agreement on the UNESCO con- 
stitution within 16 days. Mr. Archibald Mac- 
Leish, chairman of the delegation, has prepared a 
statment which, with your permission, Mr. Chair- 
man, I should like to introduce into the record.^ 

Tb.ere are two brief quotations which I want to 
read aloud, if I may. The fii'st is: ". . . the 
agreement of the nations themselves to work to- 
gether through all the channels of communication 
and with all the universal languages of science, art 
and learning to increase their understanding of 
each otlier and to root out the prejudice and 
ignorance which have separated them in the jiast, 
is a new thing in the history of international 
undertakings." 

The second is that world-wide understanding '"is 
essential to the hope for peace^tb.at in a world 
armed with weapons of such terrible destructive- 
ne.ss as those which men contrived during the last 
war, the only hope for peace lies in the mutual un- 
derstanding not of Foreign Offices alone l)ut of 
the peoples themselves." 

UNESCO makes international understand- 
ing its fundamental purjiose and its immediate 
objective. 

The preamble of the constitution points out that 
wars stem from conditions of suspicion and mis- 
trust between the peoples of the world. These are 
partly the result of ignorance of each other's ways 
and lives. UNESCO has been established to help 
to overcome this ignorance. 

But it is wise to temper the expression of these 
high jjurposes with a realistic recognition of the 
dilliculties to their attainment. We must not lull 
ourselves into believing that we have done any- 
thing more than make a small start. UNESCO is 
still on paper. Its sole capital is that of plans 
and hopes and dreams. Those dreams can only be 
translated into a going concern of j)ower and use- 
fulness by the sweat of hard work, the support of 
hard vay-h. and the wisdom of hard thinking. 



APRIL 21, 1946 



627 



How the Organization Would Work 

Let me emphasize that the organization is 
strictly a service and advisory institution. It has 
no powers of control over or authority to command 
the member governments. The constitution states 
that "with a view to preserving the independence, 
integrity and fruitful diversity of tlie cultures and 
educational systems of the States Members of this 
Organization, the Organization is prohibited from 
intervening in matters which are essentially within 
their domestic jurisdiction". The organization 
will refer recommendations and conventions to the 
member states; but only those activities which are 
authorized by the member states can be carried on 
^vithin their own borders. 

Structure of the Organization 

Let me call to your attention two charts, one on 
the structure of UNESCO, and the other on 
UNESCO's relations with other I'uited Nations 
agencies. You will note that the structure of the 
organization is clear and simple. It is made ujj 
of a representative genei-al conference, an execu- 
tive board, a Director Cieneial, and a permanent 
staff. Each state, whether it be large or small, has 
one vote. Members of the United Nations Organ 
ization are automatically entitled to membershijj 
in UNESCO. Other countries may be admitted 
by a two-thirds majority vote of the general con- 
ference. 

The general conference,, which is the representa- 
tive organ of UNESCO, is to meet annually, with 
each member nation repi'csented by not more than 
five delegates who are to be selected after consulta- 
tion with educational, scientific, and cultural 
groups. 

A small executive board of IS members is to be 
responsible, under the authority of the general 
conference, for the execution of the program 
adopted by the conference. 

The daily continuing work of the organization 
will be conducted by a pernumcnt staff, interna- 
tional in character, under the supervision of a 
Director General. 

Relationship With Other Organizations 

UNESCO will not stand alone, but will f\mction 
in close relationship not only with the member 
governments but with the whole United Nations 
system. It has been set up as one of the special- 
ized agencies provided for in the United Nations 



Charter, and will be brought into relati<uisliip with 
the Economic and Social Council by an agreement 
worked out between the two agencies. The con- 
stitution of UNESCO, in Article X, provides "for 
effective cooperation between the two organiza- 
tions in the pursuit of their common [)urposes" 
and at the same time recognizes that I'NESCO is 
autonomous within the fields of its competence as 
defined in the constitution. 

Specifically it is intended that the general con- 
ference of UNESCO will advise the United Na- 
tions and its various organs on educational, scien- 
tific, and cultural matters of concern to the United 
Nations according to the agreements to be worked 
out. 

UNESCO will also cooperate with other special- 
ized intergovernmental organizations and agencies 
whose interests and activities are related to its 
purposes such as, for example, the I.L.O., the Food 
and Agriculture Organization, and the proposed 
International Health Organization. It is expected 
that the resources and activities <leveloped by the 
Interuiitional Institute of Intellectual Cooperation 
in Paris will be transferred to UNESCO. Fur- 
ther, the constitution provides that UNESCO will 
work out arrangements for consultation and co- 
operation with non-governmental international 
organizations in its field such as the International 
Council of Scientific Unions, and the numerous in- 
ternational associations of teachers and scholars, 
and may invite them to undertake specific tasks. 
Thus the organization will have the benefit of the 
advice and continuing coojjeration of these bodies, 
which reach large numbers of men and women and 
young people throughout the world. 

Obligations of Members 

It may be well to outline the obligations resting 
upon the member nations of UNESCO. They are 
limited in number and clear in character. 

1. Reports: The obligation to make periodic re- 
])orts on activities and developments in the educa- 
tional, scientific, and cultural fields, of a type sim- 
ilar to those provided to any international organi- 
zation of which the United States is a member. 
These reports would include laws, regulations, and 
statistics dealing with the fields mentioned and in- 
formation on action which may have been taken 
ujion reconnnendations and conventions submitted 
by UNESCO. 



628 



DEPARTMENT OF STATE BULLETIN 



•2. Co-yt: The obligation, to be met in accoidance 
with our constitutional procedure, to contribute a 
proportionate shai'e of the budget of the organiza- 
tion. While a definite amount of the budget will 
not be determined until the general conference of 
UNESCO has met in its first session, it has been 
our thinking here that a total budget for the first 
year might not exceed $6,000,000, of which the 
share of the United States, as with other United 
Nations organizations, might be 25 percent, or 
$1,500,000. It is expected that with the develop- 
ment of the program of the organization the 
amount of the budget may be perhaps far larger. 
Tliat can oidy be determined by the leadership 
and tlie hope for the program in tlie light of pre- 
vailing conditions. 

3. Stati/.s of Staff: The obligation to accord the 
organization and its stail those privileges and im- 
munities which may be granted to UNO; to re- 
spect the international character of the staff of 
the organization : and not to seek to exert influence 
upon the United States citizens who may be chosen 
for that staff. 

Specific Functions of UNESCO 

The organization will seek to attain its basic 
purpose along three lines. First, it will stimulate 
tlie use of the media of mass communication— 
ladio, motion pictures, press, and publications — 
to advance mutual knowledge and wide and true 
understanding among the peoples of the world. I 
cannot emphasize too strongly this function of 
UNESCO. It will not only seek to develop closer 
relations among scholars on the higher intellectual 
level, as did the Paris Institute, but through the 
use of mass communications it is designed to get 
to the ''grass roots", down to the peoples them- 
selves. 

Second, UNESCO will encourage the schools 
and all other educational institutions to help to 
build the "defenses of peace" in the minds of chil- 
dren as well as adults. 

Third. UNESCO will coopei'ate in the growth 
and sharing of useful knowledge, through the work 
of scholars, scientists, and others, so that the 
peoples of the world may strive to progress to- 
gether toward a better life. 

It will be observed that UNESCO itself will 
not be tlie only agent for carrying its reconnnenda- 



tions into effect. Although it may eventually find 
it wise to undertake certain direct activities, its 
task largely is to promote collaboration, to en- 
courage and stimulate, to serve as a clearinghouse. 
It must depend on the willing cooperation of indi- 
vidual countries through their public and private 
programs and instrumentalities of educational, 
scientific, and cultural cooperation, to carry out 
specific activities for reaching the goals which are 
agreed on. 

Among the detailed functions of the organiza- 
tion may be listed the following: 

1. The assembly, analysis, and dissemination 
of information concerning the education, the 
scientific advances, and the cidtural activities of 
the member nations. 

•2. The formulation of desirable recommenda- 
tions for national and international action with 
regard to the freer flow of ideas and information 
through the mass media ; the improvement of edu- 
cational opportunities; cooperation among the 
nations for the reciprocal exchange of students, 
scholars, and scientists, as well as of usefid publi- 
cations; and cooperative measures to assure the 
conservation of the world's heritage oi' books, 
works of art, and monuments of history and 
science. 

3. The calling of international conferences on 
specific i^roblems within its field and the formula- 
tion of international conventions for submission 
to the member states, designed to forward the pur- 
poses of the organization. 

The organization will draw nuich material for 
its pi'ogram from the reports and other informa- 
tion which will be provided periodically by mem- 
ber governments. The data thus assembled will 
serve a double purpose. It will eciuip the organ- 
ization to serve as a useful clearinghouse of infor- 
mation which individual nations can use in better- 
ing their educational, scientific, and cultural ac- 
tivities and institutions. Second, it will build up a 
common body of knowledge, whose end and pur- 
pose is the welfare of all mankind. The flow of 
information between member states and the 
oi-ganization will be two-May. It will serve both 
to make each nation a more constructive and cre- 
ative member of the world community and to make 
the organization itself a center of positive helpful- 
ness to all the Ignited Nations. 



APRIL 21, J 946 



629 



STATEMENT BY ARCHIBALD MacLEISH 



I have submitted to the Secretary of State a 
report on the London conference, together with a 
siunnrary description of the constitution of the 
proposed L^nited Nations Educational, Scientific 
and Cuhural Organization. Tliis report is, of 
course, avaihible to tlie committee, and I will 
therefore not consume the committee's time with a 
recapitulation of the points made. There are, 
however, one or two matters in connection with 
the London conference and the plans for the new 
organization to which I should like to call the 
committee's attention. 

First, I should like to recall to the committee's 
mind tlie position of UNESCO with reference to 
earlier eti'orts in this same direction. Scientific 
and scholarly and cultural and educational bodies 
of one kind or another in the various counti'ies of 
the world have established international relation- 
ships with each other over a considerable period of 
time. It was not, h.owever, until the establishment 
of the League of Nations that an effort was made 
to give the international support of governments 
to these efforts at communication between private 
associations and other bodies. But even the at- 
tempt in this direction under the League fell far 
short of what is undertaken in the constitution of 
UNESCO. The activities of the League in this 
direction were based upon the assumption that if 
men of learning, scientists, teachers, were put in 
touch with each other on an international basis, 
one of the by-products of their association would 
be an increased understanding of each other by 
the peoples of the nations involved. UNESCO 
pushes this idea one step further. UNESCO 
makes international understanding its prime and 
immediate objective and proposes to use as means 
for the realization of that objective not only the 
associations of learned men and learned societies 
and organizations, but popular education and the 
modern instruments of mass communication — 
newspaper, radio, motion picture. The difference 
between UNESCO and its predecessors is, in part, 

Mr. JIaeLeish was chaii-inan of the United States Dele- 
gation to the London conference to establish a United 
Nations Edncational, Cultural and Scientific Organiza- 
tion, which was held from Nov. 1-16, 1!.)45. 



a material evokitionary difference. Men who re- 
garded international activity in the field of educa- 
tion as impossible in 1919 now regard it as not 
only possible but essential. The real reason, how- 
ever, for the greater directness of UNESCO's ap- 
proach to tlie problem lies, in my opinion, in the 
new realization, now abroad in the world, that the 
mutual understanding of the peoples of the world 
is es.sential to the hope for peace — that in a world 
armed with weapons of such terrible destructive- 
ness as those which men contrived during the'last 
war, the only hope for peace lies in the mutual un- 
derstanding not of Foreign Offices alone but of the 
peoples themselves. Certainly it is for this reason 
that the aim of UNESCO is set not at tl;e elevated 
level of advanced scholarship or science but at the 
level of the popular education of the peoples of the 
world and of their conununication with each other 
through the mass media now at their disposition. 
A second point I should like to make is one 
which derives from my experience at London and 
subsequently in this country. It would be impos- 
sible for anyone who did not attend the London 
conference to form anidea, in any degree adequate, 
of the deptli and fervor of the human hope and 
expectation which produced the constitution of 
UNESCO. A very large number of the delegates 
at the London conference were men and women 
who had played a leading part in the resistance 
movements of their countries under the Nazi oc- 
cupation. They knew of their own personal ex- 
perience what issues were at stake. They were 
determined that an attack should be made upon the 
problem of war and peace at the one level where 
success is possible — the level of human beings 
themselves who will, in the last analysis, determine 
which of the two alternatives will be chosen. But 
this fervor and hope is not linnted to the men and 
women of Europe who suffered the full impact of 
the war. It is shared, as I can assure the com- 
mittee, by enormous numbers of men and women in 
the LTnited States who believe, and believe with 
conviction, that the hope of the world lies where 
tlie hope of America has always lain — in the things 
(Continued on iiar/c GJ/S) 



630 



DEPARTMENT OF STATE BULLETIN 



The American Trade Proposals: 
Progress in Rebuilding a Stable World 



By CLAIR WILCOX 



WORLD OKGANizATiON for seciiiity is essential; 
but if it is to succeed, it must rest upon con- 
tinuous international cooperation in economic af- 
fairs. The provision of relief, the stabilization of 
currencies, and the extension of credits are neces- 
sary and desirable; but if the peoples who now de- 
pend upon relief are eventually to become self- 
supporting, if those who now must borrow are 
eventually to repay, the world must be freed, in 
large measure, of the barriers that now obstruct 
the flow of goods and services. If political and 
economic order are to be rebuilt, we must provide, 
in our trade program, the solid foundation upon 
which the superstructure of international coopera- 
tion is to stand. 

The barriers which obstruct the flow of trade 
were raised higher and higher in the years between 
the two world wars. Governments interfered 
increasingly with the movement of goods and 
services across their borders. They sought to curb 
imports by increasing customs formalities, by rais- 
ing tariffs, by imposing quotas and embargoes, 
and by controlling the supplies of foreign ex- 
change. They sought to force exports by depre- 
ciating their currencies, by paying subsidies, and 
by bartering goods for goods. They sought to 
gain at the expense of their rivals by entering 
into exclusive deals and by setting up preferential 
systems which discriminate among their suppliers 
and their customers. At the same time, they per- 
mitted their private traders to seek higher profits 
through cartel arrangements that curtailed out- 
put, raised prices, and divided up the markets of 

An address delivered before the American Academy of 
Political and Social Science at Pliiladelphia, Pa., on Apr. 
6, 1946. Mr. Wilcox is the Director of the Office of In- 
ternational Trade Policy, Department of State. For com- 
plete text of Mr. Wileox'.s address, see Department of State 
pre.ss release 221 of Apr. 6, 194G. 



the world. Upon occafciion, nations themselves 
entered into arrangements that were designed to 
benefit their producers by cutting output and 
boosting prices to the detriment of those outsiders 
who consume their goods. 

The war spawned a multitude of new controls. 
Exchange restrictions have become world-wide. 
Persons selling abroad have been required to turn 
their foreign monies over to their governments. 
Persons buying abroad have been forbidden to 
make j^ayments without the express permission of 
their governments. Import quotas and export 
quotas have governed the movement of goods 
across national frontiers. Persons desiring to 
import or to export have been compelled to ob- 
tain licenses from the control authorities. In 
many cases, instead of licensing private traders, 
governments have set up public agencies to handle 
a large part of their foreign trade. Agreements 
to barter goods for goods have taken the place of 
free markets. The regimentation of the world's 
commerce has become virtually complete. 

Where do we go from here? The immediate 
prospect is not a pleasant one. The sad fact is 
that the world is geared, right now, to continue 
economic warfare, using the full arsenal of 
weapons developed in the thirties and sharpened 
during the war. Neither we nor our neighbors 
have to learn the game; we know how to play it; 
we are organized to play it. The larger countries, 
especially the United States, Great Britain, and 
the Soviet Union, have merely to tighten their 
hold on the regions to which they have easy ac- 
cess and, perhaps, to capture other areas through 
exclusive contracts, discriminatory arrangements, 
and barter deals. If this were to happen — as it 
easily might — the world, instead of being drawn 
together through economic intercourse, would he 
split asunder into competing economic blocs. This 
is not the way to prosperity. It is not the way to 
]:ieace. 



APRIL 21, 1946 



631 



Stability und security are manifestly more at- 
tainable in a world united in j^lenty than- in a 
world divided in want. What is needed, and 
needed now, is the reduction of tariffs, the removal 
of quotas and exchange controls, the elimination 
of discriminatory devices, and the uprooting of re- 
strictive arrangements, private as well as public, 
so that people everywhere can begin, to reap the 
harvest of increased world trade. 

This is the piu'pose of the American Proposals 
for Expansion of World Trade and EmpJoymcnt 
which our Government published on December 6, 
1945 ' and submitted for consideration to the 
American people and to other governments of 
the world. These jaroposals are based upon the 
conviction that human energies can best be 
directed toward the improvement of standards of 
living if the world, instead of regimenting its 
trade, will seek to restore ^\^ greatest possible 
measure of economic freedom. They are designed 
to reverse the pre-war trend toward economic iso- 
lationism and to resist the present tendency to 
fasten the pattern of wartime controls upon a 
world at peace. Their provisions may be outlined 
in a few words. 

We have proposed, first, that the devices by 
which governments have distorted the natural flow 
of private trade, whether through the restriction of 
imports or the artificial stimulation of exports, be 
modified or abandoned. To this end we have pro- 
posed that customs formalities be simplified; tliat 
discriminatory taxes, transit charges, and other 
regulations be removed; that trade boycotts be 
outlawed; that common principles be adopted to 
govern tariff valuation and the application of 
anti-dumping and countervailing duties; that full 
publicity be given to laws and regulations affecting 
trade; that tariffs be substantially reduced and 
that tariff preferences be eliminated; that duties 
on exports be imposed without discrimination ; 
that exchange controls be governed by the prin- 
ciples established by the International Monetai'y 
Fund; that import quotas be limited to a few 
really necessary cases ; that exchange controls and 
import quotas be administered without discrim- 
ination; that subsidies, in general, should be the 
subject of international consultation ; and that sub- 
sidies on exports should be confined to exceptional 
cases, under general rules. 

All of the foregoing proposals relate to cases of 
public interference with private trade. In many 



cases, however, governments themselves have es- 
tablished enterprises to buy and sell abroad. And 
in a few cases, governments have assumed a com- 
2)lete monopoly of their foreign trade. Here we 
have proposed that governments conducting such 
enterprises should agree to give equal treatment 
to the commerce of all friendly states; that they 
should make their purchases and sales on purely 
economic grounds ; and that governments whose 
enterprises are completely socialized should com- 
mit themselves as to the quantities of goods which 
they propose to import. It is the purpose of these 
proposals to apply common principles of fair deal- 
ing to the trade of capitalist and socialist econo- 
mies, so that the two systems may meet in the mar- 
ket place without conflict, thus to contribute each 
to the other's prosperity and welfare. 

International trade has been restrained by gov- 
ernments. It has also been restrained by the re- 
strictive practices of private business : price fixing, 
market sharing, curtailment of output or exports, 
suppression of technology, and discrimination 
against competitors. We have therefore proposed 
that nations commit themselves to act, individually 
and cooperatively, to curb such practices when they 
interfere with the objectives of equal access to ma- 
terials and markets, increased jjroduction and 
trade, and high levels of employment and real in- 
come. As one means of carrying out this commit- 
ment, it is proposed that a special agency be 
established, within an International Trade Organ- 
ization, to receive complaints concerning restric- 
tive practices of international combines and cartels, 
to obtain and examine the facts which are relevant 
to such cases, and to recommend the remedies that 
may be required. Enforcement against private 
violators necessarily rests with sovereign states. 

If trade is thus to be freed from the fetters that 
have bound it, we must give assurance to the many 
small producers of the great primary commodities 
that necessary adjustments to .shifting demands 
will be gradual I'ather than sudden and that these 
producers will be protected, during the period re- 
quired for such adjustments, against the impact 
of violent change. But we must be sure that the 
measures adojated to this end are temporary rather 
than permanent and that they are not administered 
at the expense of the constxmers involved. It is 
therefore jjroposed that action with respect to the 

' For complete text of the Proposals see Department of 
State publication 2411. 



632 



DEPARTMENT OF STATE BULLETIN 



sjiet'ial problem of .surplus commodities in world 
trade be international rather than national; that 
the solution of this problem be sought by measures 
that would remove the basic causes of the difficult}', 
not by measures that would perpetuate it ; that the 
solution be sought, in particular, by methods that 
woidd expand consumption ; that measures restrict- 
ing exports for fixing prices, where they are neces- 
sary, be limited in duration ; that they be so admin- 
istered as to provide increasing opportunities to 
satisfy requirements from the most economic 
sources; that they be attended at every stage by full 
pul)licity; and that consuming countries be given 
an equal voice with j)roducing countries in their 
formulation and administration. 

"We have projiosed, further, that all of these com- 
mitments be embodied in a World Trade Charter 
and that they be carried out through an Interna- 
tional Trade Organization, established under the 
charter, in appropriate relaticmship to the Eco- 
nomic and Social Council, as an integral part of 
the structure of the United Nations. Final au- 
tliority in this Organization would be vested in a 
conference of member states ; continuing oversight 
would be delegated to an executive board ; daily 
operations would be conducted by three commis- 
sions of experts dealing, respectively, with com- 
mercial policy, business jjractices, and commodity 
problems; and all of these organs would be served 
by a central secretariat. It would be the function 
of the Organization to collect, analyze, and publish 
data on the operation of the charter; to develop 
common technical standards and provide technical 
assistance to governments ; to review and advise on 
treaties, agreements, practices and policies affect- 
ing international trade ; to interpret the provisions 
of international agreements and to grant excep- 
tions to such agreements in accordance with estab- 
lished rules; to hear complaints and make recom- 
mendations to member .states; and to provide a 
medium for consultation and for the settlement of 
disputes. 

At the suggestion of our Govermnent, the Eco- 
nomic and Social Council of the United Nations 
has called a world conference on trade and em- 
ployment to meet sometime around the end of 11)-1:6. 
To prepare for this conference, the Council, at its 
recent meeting in London, set up a committee of 
18 nations — the United States. Great Britain. Rus- 



sia, France, and China ; the British Dominions and 
India ; Belgium, Holland. Norway, Czechoslo- 
vakia, and Lebanon; Brazil, Chile, and Cuba. 
This committee will probably meet in England in 
the late summer or early fall. Its agenda, adopted 
by the unanimous vote of the Council, is identical 
with the headings in the American Proposals. At 
the time of this preparatory meeting our Govern- 
ment intends to go forward with actual negotia- 
tions for the reduction of barriers to trade, under 
the provisions of the Trade Agreements Act. 
Fourteen nations, all of them members of the 
Preparatory Committee, have accepted our in- 
vitation to negotiate to this end. 

What are the prospects for the success of this 
program? It is certain that many countries will 
be reluctant to relinquish the controls that they 
now impose on their foreign trade. Some of the 
governments that have established public trading, 
enterprises during the war may never return them 
to private hands. Countries that have introduced 
new industries will doubtless insist that these in- 
fants must be given continued protection. Some 
countries are frankly skeptical that we, ourselves, 
will conform, in particular cases, or that we will 
adhere for many years to the principles that we 
have espoused. Others, distrusting the determi- 
nation and the capacity of the United States to 
I)i-event violent fluctuations in the volume of in- 
dustrial activity and foreign trade, argue that they 
cannot achieve security unless they insulate them- 
selves against us. It is clear, however, that our 
proposals have made a profound impression on 
the other nations of the world. They have been 
translated into many languages and are now un- 
dergoing intensive study in every capital on earth. 
From a number of countries we already have in- 
formal assurances of interest and support. From 
Great Britain we have even more. The British 
GoA'ernment, in connection with the Financial 
Agreement which is now before Congress, has for- 
mally expressed its full agreement with the Amer- 
ican Proposals, has pledged itself to enter into 
negotiations for the reduction of barriers to trade 
and has undertaken to support the American pro- 
gram at the world confei-ence. This agreement is 
highly significant. The United States and Great 
Britain are the mainstays of the world's economy. 
If Great Britain is enabled to join hands with us 
in this enterprise, the prospects will be very good 
indeed. 



I 



APRIL 21, 1946 



633 



Position ill Favor of Compul- 
sory Jurisdiction of the 
International Court 

[Released to the press April 5] 

In response to viuioiis inquiries which it has 
received ckiring recent months, the Department of 
State has stated that it favors the proposal that 
the United States shoukl accept the compulsory 
jurisdiction of tlie International Court of Justice 
under Article 3G of the Statute of the Court.^ It is 
the understanding of the Department that the 
President likewise favors such action. 

There are now pending before the Congress Sen- 
ate Resolution 196, under which the Senate would 
advise and consent to the acceptance by the Presi- 
dent of the compulsory jurisdiction of the Court, 
and House Joint Resolution 295, providing for 
authorization by the Congress to the President to 
take similar action. Hearings have not been held 
on either of these bills. The Department is of the 
opinion that both of these resolutions are properly 
drafted so far as concerns the legal requirements 
under the Statute of the Court. However, the 
question of whether the filing of the declaration 
should be authorized by the Congress or consented 
to by the Senate under the treaty power is a matter 
on which the Department does not express an 
opinion. This' question was debated when the 
Charter was before the Senate last July. 

The Department naturally welcomes the sup- 
port of organizations such as the Association of 
the Bar of the City of New York. 

Text of a letter from iSeovfaty Byrnes to Mr. 
Raymond Swing 

February 23, 1946 
Dear Mr. Swing : 

Replying to your letter, the State Department 
has recently stated, in response to an inquiry simi- 
lar to yours, that we favor the proposal that the 
United States should accept the jurisdiction of the 
International Court of Justice under Article 36 of 
the Statute of the Court. 

I have i-ead the copy of your letter to the Presi- 
dent. He favors acceptance of the compulsory 
jurisdiction of the Court. I think it would be 

' For article oa the International Court of Justice and 
the I'l-oblem of Compulsory .Jurisdiftion, see Bulletin of 
Sept. 30. 104.", p. 471. 



lielpful if he ndvised Congress of his views and 
asked for action, but I think he should carefully 
consider whether he will urge the procedure to be 
followed by Congress. 

Members of the Senate have strong convictions 
as to whether a proposal must be ratified by a two- 
thirds vote of the Senate or can be a]Dproved by 
action of the two Houses. My recollection is this 
very question was debated when the Charter was 
before the Senate. More than a dozen Senators 
sponsor the Morse proposal. 

I believe the President should inquire in oi-der 
to make certain that the proposal is decided upon 
its merits and not permit its merits to be overlooked 
in a procedural controversy. By consultation with 
the Foreign Relations Committee he should be able 
to ascertain the best course to pursue. 

With best wishes, I am, 
Sincerely yours, 

James F. Barnes 



Commercial Air Services 
Asreement Between U. S. 
and Belgium 

[Released to the press April 5] 

The Dej^artment of State announced that an 
agreement between the Governments of the United 
States and Belgium relative to commercial air 
services between their respective territories was 
signed in Brussels on April 5 by the American 
Ambassador, Alan G. Kirk, and the Belgian For- 
eign Minister, Paul-Henri Spaak. The agreement, 
which supersedes the interim air transport ar- 
rangement concluded with the Belgian Govern- 
ment on February 1, is substantially similar to the 
bilateral agreement concluded between the United 
States and France on March 27. 

Under the new agreement American air services 
receive commercial entry at Brussels on a route 
from the United States via the United Kingdom 
and Belgium to India by intermediate points, and 
also commercial entry at Leopoldville, Belgian 
Congo, on a route from the United States to South 
Africa. Belgian air services are accorded the 
right to operate on a route from Belgium to New 
York. 



634 



DEPARTMENT OF STATE BULLETIN 



U.S. Note on the Capture of General Mikhailovich 



[Released to the press April 2] 

7'ext of a note sent hy the American Chargie 
d'Af aires at Belgrade to the Yugoslav Foreign 
Office on March 30, 1946 

Note has been taken by the Government of the 
United States of the March 2-1 official announce- 
ment broadcast by Radio Belgrade regarding a 
statement to the Yugoslav Assembly by Minister 
of Interior Rankovic reporting the capture of 
General Draja Mikhailovich on March 13. 

"When, in 19-11, the Germans overran Yugo- 
slavia, it will be recalled that General (then Colo- 
nel) Mikhailovich organized and led important 
resistance forces against the occupiers. Follow- 
ing his promotion, in 1941, to the rank of General, 
Draja Mikhailovich was appointed Minister of 
War in the Royal Yugoslav Government-in-exile 
but remained in liis native land and without ade- 
quate supplies and fighting under the greatest 
hardships contributed with his forces materially 
to the allied cause so heroically participated in by 
Yugoslavia. General Mikhailovich continued as 
Commander of the Yugoslav Army and as Minis- 
ter of War until May 19-t-t. Since that time he has 
been on the political plane a controversial figure. 

As the Yugoslav authorities are no doubt aware, 
TTnited States Army personnel in an allied liaison 



cajjacity were attached to General Mikhailovich's 
headquarters during most of the period of his mili- 
tary activity. They must also be aware of the fact 
that many United States airmen were rescued and 
returned to allied lines througli the undaunted ef- 
forts of General Mikhailovich's forces. A number 
of these individuals and others in the United 
States who were closely associated with General 
Mikhailovich j^ossess first hand evidence which 
cannot but have a bearing upon the charges of 
enemy collaboration which the Yugoslav authori- 
ties have indicated they will bring against General 
Mikhailovich. 

The United States Government, in the circum- 
stances, is confident that in the interests of justice 
the Yugoslav Government will wish to make suit- 
able arrangements whereby the evidence of any 
such persons who may so desire may be presented 
in connection with the trial, said to be contem- 
plated, of General Mikhailovich. An urgent ex- 
pression of the views of the Yugoslav authorities 
in this connection will be appreciated bj' the 
United States Government together with an indi- 
cation of the place and time of trial and the steps 
the Yugoslav Government is prepared to take to 
facilitate the presentation of evidence of this 
nature. 



Declarations of Property Damage for Americans in Belgium 



[Releiisert to the jtress March 27] 

The Department of State has been informed by 
the American Embas.sy at Brussels that American 
nationals whose property in Belgium was damaged 
or destroyed during the war now have until July 
15, 1946 to file declarations of damage with the 
Minister of War Damages in Brussels. At present 
there is no provision in the Belgian law for the 
payment of compensation to American nationals. 
However, Belgian authorities suggest that as at 
some future time there may possibly be an agree- 



ment with the United States which would provide 
for the inclusion of Americans in the benefits of 
the Belgian law, interested Americans should pre- 
sent the essential facts for the census of war dam- 
ages provided for by decrees of September 19 and 
December 26, 1945 and of January 11, 1946. Spe- 
cial forms for the declaration of damages, pre- 
pared by the Minister of War Damages, may be 
obtained in this country through the Belgian Con- 
sulates at New York, Chicago, San Francisco, and 
New Orleans. 



APRIL 21. 1946 



635 



Resumption of|Mail Service With Germany 



[Released to the press April 1] 

Effective at once, a restricted mail service will 
be resumed between the United States and all of 
Germany. This service is limited to non- 
illustrated postcards and letters not exceeding one 
ounce in weiglit. The only types of communica- 
tions j^ermitted are those relating to personal or 
family matters. The Treasury Department has 
advised that such limited communications are au- 
thorized under the Trading with the Enemy Act. 
Communications of a business, coiRmercial, or 
financial character continue to be prohibited, and 
any enclosures of checks, drafts, securities, or cur- 
rency are prohibited. 

Parcel-post service is not available at this time, 
due to the fact that the military authorities in 
Germany desire to see how well the German postal 
and transportation systems are able to handle the 
restricted service before permitting parcel-post 
service to begin. Such service will be inaugurated 
as soon as ^practicable. 

Communications to Germany should bear: 

The name of the addressee. 
Town, 



Street and house number, 

Province, 

Postal addressing district numbei'. 

Zone of occupation, 

Germany. 

If the postal-district number or zone of occupa- 
tion is not known to the sender, mail will be ac- 
cepted. However, both items when known should 
be used to avoid delay. Correspondence may not 
be addressed to General Delivery. Box numbers 
may be used provided the name of the box holder 
is included. The province and zone of occupation 
need not be shown on mail addressed to the city 
of Berlin. 

Correspondence may be in any language. En- 
velops must not have inner linings or cari'y any 
indication other than the address of the sender and 
addressee and necessary postal directions. 

Air mail, special delivery, registration, and 
money-order services are not available until fur- 
ther notice. 

The postage rates applicable are : letters, five 
cents each; postcards, three cents each. 



Immigration Preference for Displaced Persons 
in U. S. Zone in Germany 



[Released to the press by UNRRA March 30] 

Displaced persons in the United Stat*>s zone of 
occupation in Germany are being given first pref- 
erence in the immigration quota of the United 
States, according to infoi-mation just received 
from Frankfurt at the United Nations Relief and 
Rehabilitation Administration headquarters in 
Washington. 

Quotas are determined according to birthplace, 
and that for central Europe and the Baltic States 
totals approximately 39,000 persons annually. 
Consulates being opened by the Department of 



State can issue visas at the monthly rate of 10 
percent of the yearly cjuota. Applications must 
be accompanied by affidavits of sponsorship by 
relatives or friends, or in the case of larger groups 
the required affidavits will be sponsored by volun- 
tary societies working through UNRRA. 

The announcement from Frankfurt states that 
the State Department is opening consulates in 
Stuttgart, Berlin, Bremen, and Frankfurt, in 
addition to Munich.^ 

' BiTLLETiN of Mar. 10, 1946, p. 390. 



636 



DEPARTMENT OF STATE BVLLETIIV 



Reparations and the Level of Post- War German Economy 



PLAN OF ALLIED CONTROL COUNCIL 



Allied Control Authority 

The plan for reparations and the level of post- 
war German economy in accordance with the 
Berlin protocol : 

1. In accordance with the Berlin protocol the 
Allied Control Council is to determine the amount 
and character of the industrial capital equipment 
unnecessary for the German peace economy and 
therefore available for reparations. The guiding 
principles regarding the plan for re]Darations and 
the level of the post-war German economy, in ac- 
cordance witli the Berlin protocol, are: 

(a) Elimination of the German war potential 
and the industrial disarmament of Germany. 

(b) Payment of reparations to the countries 
which liad suffered from German aggression. 

(c) Development of agriculture and peaceful 
industries. 

(d) Maintenance in Germany of average living 
standards not exceeding the average standard of 
living of European countries (excluding the 
United Kingdom and the Union of Soviet Social- 
ist Republics) . 

(e) Retention in Germany, after payment of 
reparations, of suflicient resources to enable her to 
maintain herself without exteriuil assistance. 

2. In accordance with these principles, the basic 
elements of the plan have been accepted. The 
assumptions of the plan are: 

(a) That the population of post-war Geiniany 
will be 6(5.6 millions. 

(h) That Germany will be treated as a single 
ecoiujmic unit. 

(e) That exports from Germany will be ac- 
ceptable in the international markets. 



Released to the jiress originall.v in Berlin on Mar, 28 ; released 
to the press by the War Department Apr. 1. 



Prohibited Industries 

1. In order to eliminate Germany's war poten- 
tial, the production of arms, ammunition, and im- 
plements of war as well as all types of aircraft 
and sea-going ships is prohibited and will be 
ju'evented. 

2. All industrial capital equipment for the pro- 
duction of the following items is to be eliminated: 

(a) Synthetic gasoline and oil. 
(h) Synthetic rubber. 

(c) Synthetic ammonia. 

(d) Ball and taper-roller bearings. 

(e) Heavy machine tools of certain types. 
(/) Heavy tractors. 

iff) Primary aluminum. 

(h) Magnesium. 

(/) Beryllium. 

(y) Vanadium produced from Thomas Slags. 

(k) Radioactive materials. 

(7) Hydrogen peroxide above 50 percent 

sti'ength. 
(»}) Specific war chemicals and gases. 
( )} ) Radio transmitting equipment. 

Facilities for the production of synthetic gasoline 
and oil, synth.etic ammonia and synthetic rubber, 
and ball and taper-roller bearings will be tempo- 
rarily retained to meet domestic requirements un- 
til the necessary imports are available and can be 
paid for. 

Restricted Industries, Metallurgical Industries 

1. Steel. 

(a) The production capacity of the steel indus- 
try to be left in Gei-many should be 7,500,000 ingot 
tons. This figure to be subject to review for fur- 
ther reduction should this appear necessary. 

(b) The allowable production of steel in Ger- 
many .should not exceed 5,800,000 ingot tons in any 
future year without the specific approval of the 
Allied Control Council, but this figure will be sub- 
ject to annual review by the Control Council. 



AFRIL 21, 1946 

{c) The steel plants to be left in Germany un- 
der the above program should, as far as practica- 
ble, be the oliler ones. 

2. Non-ferrous metals. The annual consump- 
tion of non-ferrous metals (including exports of 
products containing these metals) is fixed at the 
following quantities: 

Copper 140, 000 tons 

Zinc 135, 000 tons 

Lead 120, 000 tons 

Tin 8, 000 tons 

Nickel 1,750 tons 

Chemical Industries 

1. Basic cliemicals. In the basic-chemical ni- 
dustries there will be retained -tO percent of the 
19?>f) production capacity (measured by sales in 
1U30 values). This group includes the following 
basic chemicals : nitrogen, phosphate, calcium car- 
liide. sulphuric acid, alkalies, and chlorine. In 
addition, to obtain the required quantities of fer- 
tilizer for agriculture, existing capacity for the 
production of nitrogen through the synthetic- 
ammonia process will be retained until the neces- 
sary imports of nitrogen are available and can be 
paid for. 

2. Other chemicals. Capacity will be retained 
for the group of other chemical production in the 
amount of 70 percent of the 1936 production capac- 
ity (measured by sales in 1936 values). This 
group includes chemicals for building supplies, 
consumer-goods items, plastics, industrial supplies, 
and other miscellaneous chemical protlucts. 

3. Dyestuffs, pharmaceuticals, and synthetic 
fibers. In the pharmaceutical industry there will 
be retained capacity for the annual production of 
80 percent of the 1936 production (measured by 
sales in 1936 values) . Capacity will be retained to 
produce annually 36,000 tons of dyestuffs and 
185.000 tons of synthetic fibers. 

Machine Manufacturing and Engineering 

1. Machine tools. For the machine-tool indus- 
try there will be retained ll.-l percent of 1938 ca- 
pacity, with additional restrictions on the type and 
size of machine tools which may be produced. 

2. Heavy engineering. In the heavy-engineer- 
ing industries there will be retained 31 percent of 
1938 capacity. These industries produce metal- 
lurgical equipment, heavy mining machinery, ma- 



637 



terial-handling jilants, heavy power equipment 
(boilers and turbines, prime movers, heavy com- 
pressors, and turboblowers and turbopumps). 

3. Other mechanical engineering. In other 
mechanical-engineering industries there will be 
retained 50 percent of 1938 capacity. This group 
produces constructional equipment, textile machin- 
ery, consumer-goods equipment, engineering small 
tools, food-processing equipment, woodworking 
machines, and other machines and apparatus. 

4. Electroengineering. In the electroengineer- 
ing industries there will be retained 50 percent of 
1938 production capacity (based on sales in 1936 
values). Capacity to produce heavy electrical 
equipment is to be reduced to 30 percent of 1938 
production or 40,000,000 reichsmarks (1936 
value). Heavy electrical equipment is defined as 
generators and converters, 6,000 kw. and over; 
high-tension switch gear; and large transformers, 
1,500 kva and over. Electroengineering, other 
than heavy 'electrical equipment, includes electric 
lamps and light fittings, installation materials, 
electric heating and domestic appliances, cables 
and wires, telephone and telegraph apparatus, do- 
mestic radios, and other electrical equiiiment. Ex- 
port of specified types of radio receiving sets is 
foi-bidden. 

Transport Engineering 

1. Transportation industry. 

(n) In the automotive industry capacity will be 
retained to jjroduce annually 80,000 automobiles, 
including 40,000 passenger cars, 40,000 trucks, and 
4,000 light road tractors. 

(b) Capacity will be retained to produce an- 
nually 10,000 motorcycles with cylinder sizes be- 
tween 60 and 250 cc. Production of motorcycles 
with cylinder sizes of more than 250 cc. is pro- 
hibited. 

(r) In the locomotive industry available capac- 
ity will be used exclusively for the repair of the 
existing stock of locomotives in order to build up 
a pool of 15,000 locomotives in 1949. A decision 
will be made later as to the production of new 
locomotives after 1949. 

(d) Sufficient capacity will be retained to pro- 
duce annually 30,001) freight cars, 1,350 passenger 
coaches, and 400 luggage vans. 

2. Agricultural machinery. To permit niaxi- 
mizatioji of agriculture, capacity will be retained 



638 



DEPARTMENT OF STATE BULLETIN 



for an amuial production of 10,000 light agricul- 
tural tractors. Existing capacity for the produc- 
tion of other agricultural equipment, estimated at 
80 percent of 1938 levels, is to be retained, subject 
to restrictions on the ty^ie and power of the equip- 
ment which may be produced. 

3. Spare jiarts. In estimating capacities there 
will be taken into account the production of nor- 
mal quantities of spare parts for transport and 
agricultural machinery. 

4. Optics and precision instruments. Capacity 
will be retained to produce precision instruments 
in the value of 340,000,000 reichsmarks (1930 
value), of which 220,000,000 reichsmarks is esti- 
mated as required for domestic use and 120,000,000 
reichsmarks for export. A further limitation for 
this industry is possible, subject to the I'ecommen- 
dation of the Committee for the Liquidation of 
German War Potential. 

Mining Industries 

1. Coal. Until the Control Council otherwise 
decides, coal production will be maximized as far 
as mining supplies and transport will allow. The 
minimum production is estimated at 155,000,000 
tons (hard coal equivalent), including at least 45,- 
000,000 tons for export. The necessary supplies 
and services to this end will be arranged to give 
the maximum production of coal. 

2. Potash. The production of potash is esti- 
mated at over 100 percent of the 1938 level. 

Electric Power 

There will be retained an installed capacity of 
9,000,000 kw. 

Cement 

Capacity will be retained to produce 8,000,000 
tons of cement annually. 

Other Industries 

1. The estimated levels of the following in- 
dustries have been calculated as shown as neces- 
sary for the German economy in 1949 : 

(a) Kubber. 50,000 tons, including 20,000 tons 
from I'eclainied ruliher and 30,000 tons from 
imports. 

(b) Pulp, paper, and printing. 2,129,000 tons, 
based on 26 kg. per head per annum in 1949 plus 
400,000 tons for export. 

(c) Textiles and clothing industries. 665,000 



tons of fiber, based on 10 kg. per head for 1949 
and including 2 kg. for export. 

(>I) Boots and shoes. 113,000,000 pairs, based 
on 1.7 pairs per head in 1949 (figure excludes 
needs of occupying forces). 

Production may exceed the above estimates in 
this paragraph (other industries) unless other- 
wise determined by the Control Council. 

2. Building. No level will be determined for 
1949. The industry will be free to develop within 
the limits of available resources and the licensing 
system. 

3. Building-materials industries (including 
cement) . Existing capacity will be retained. Pro- 
duction will be in accordance with building licens- 
ing and export requirements. 

4. Other unrestricted industries. For the fol- 
lowing industries no levels have been determined 
for 1949. These industries are free to develop 
within the limitations of available resources. 
These industries are as follows : 

(a) Furniture and woodwork. 

(b) Flat glass, bottle glass, and domestic glass. 
(<") Ceramics. 

(d) Bicycles. 

( t' ) Motorbicycles under 60 cc. 

(/) Potash. 

General Level of Industry 

It is estimated that the general effect of the 
l>lan is a reduction in the level of industry as a 
whole to a figure about 50 or 55 percent of the pre- 
war level in 1938 (excluding building and build- 
ing-materials industries) . 

Exports and Imports 

The following agreement has been reached with 
respect to exi^orts and imports : 

(17) That the value of exports from Germany 
shall be planned as 3,000,000,000 reichsmarks 
(1936 value) for 1949, and that sufficient indus- 
trial capacity shall be retained to produce goods 
to th.is value and to cover the internal require- 
ments in Germany in accordance with the Potsdam 
Declaration. 

(h) That ajiproved imports will not exceed 
3,000,000,000 reichsmarks (1936 value), as com- 
pared with 4,200,000,000 reichsmarks in 1936. 

(c) That of the total proceeds from exports it 
is estimated that not more than 1,500,000,000 



APRIL 21, 1946 



639 



reichsmai'ks can be utilized to pay for imports of 
food and fodder if this will be required, with the 
understandino; that, after all imports approved by 
the Control Council are paid for, any portion of 
that sum not needed for food and fodder will be 
used to pay for costs of occupation, and services 
such as transport, insurance, etc. 

Determination of Capacities Available for 
Reparations 

1. After the approval of this plan, the existing 



capacities of the separate branches of production 
shall be determined, and a list of enterprises avail- 
able for reparations shall be compiled. 

2. After decisions have been given on the mat- 
ters now referred to the coordinating committee, 
the Economic Directorate would propose to pre- 
pare the final jjlan embodying these decisions and 
including a description of the various features of 
the plan, such as : disarmament, reparations, post- 
war German economy, and the German balance of 
trade. 



Japanese General Elections 



[Released to the press by the Far Eastern Commission April 1] 

Text of Commwnication Sent to General Mac Ar- 
thur, Supreme Commander for the Allied Powers 
in Japan, Through the Chairman of the Far 
Eastern Commission, in Regard to the Japanese 
General Election 

March 21, 19^6. 
The Far Eastern Commission has given some 
short preliminary and tentative consideration to 
the position that may arise after the forthcoming 
Japanese elections. Having regard to the estab- 
lished position thi'oughout the country of the more 
reactionary political parties, and to the very short 
jjeriod available to the parties of a more liberal 
tendency to circulate their views and organize sup- 
port, the members of the Commission are not with- 
out the apprehension that the holding of the elec- 
tion at such an early date may well give a decisive 
advantage to the reactionary parties and thus 
create the embarrassment of a Japanese Govern- 
ment elected in terms of the Potstlam Declaration 
"in accordance with the freel^y expressed will of 
the Japanese people", which might not, in fact, 
truly represent their wishes, and v/ith which it 
might prove impossible for the Supreme Com- 
mand to cooperate. From another point of view, 
the Commission feels the difficulty of expecting a 
fully instructed, intelligent and authoritative ex- 
pression of the views of the Japanese people on 



their j^olitical future during this uncertain period 
when the whole of the future economic structure 
of Japan is still in doubt, and when a proportion 
of the electorate must necessarily be disfranchised 
owing to absence. Finally, the issue of the draft 
Constitution, of which you have approved, makes 
the Constitution at this late stage an election issue, 
upon which there can be little time for considera- 
tion by the Japanese j^eople, and at the same time 
may give an undue political advantage to the 
political party preferring this Constitution. 

The Far Eastern Commission would be most 
grateful if the Supreme Commander could let 
them have a very early expression of his views 
generally, and in particular on the following ques- 
tions : 

1. Does the Supreme Commander share the 
apprehensions expressed above ? 

2. If so, would he consider it possible and desir- 
able to require a further postponement of the Jap- 
anese elections, and in that case, for what period ? 

3. If the Supreme Commander should not con- 
sider a further postponement desirable at this late 
date, would he express his views on the desirabil- 
ity, as an alternative, of publicly prescribing that 
the forthcoming election will be regarded as a test 
of the ability of Japan to produce a responsible 
and democratic government in full accordance 
with the wishes of the people and that further 
elections will be held at a later date ? 



6-10 



DEPARTMENT OF STATE BULLETIN, 



Te.vt of livphj of Gene red MacA/thur 

Mai'clt 29, lO.'fO. 

The basis of occupational policy is the utiliza- 
tion of the Japanese Government to the fullest 
extent, under SCAP supervision and control. 
Tills is only possible through a functioning legis- 
lative body to enact new laws required to imple- 
ment SCAP directives and to provide for routine 
governmental business. The alternative is gov- 
ernment liy Imperial Edict which denies to the 
Jaiiauese I'eople the right to participate in their 
own domestic affairs. Such emphasis upon the 
power of the Emperor would obviously be both un- 
democratic and unwise and would negative the 
Ijasic principles envisaged at Potsdam, which we 
have proclaimed anil are meticulously following. 
The present Diet is completely unsatisfactory be- 
cause of its war attaint and its unrepresentative 
character, having been elected in 1942 under Tojo's 
control. It is imperative that a more representa- 
tive body be organized at the earliest possible date. 
The urgent requirements of the present situation 
denumd an expression of popular will. The re- 
sults of the election will serve to define more 
clearly the political picture, to clarify political 
issues and political jiarties and to indicate the 
nature and trend of jiopular opinion. It will also 
provide for popular participation in the determi- 
nation of major questions. The suffrage base has 
been greatly broadened through the lowering of 
the minimum age requirement and the removal of 
restrictiims on sex. By the application of the 
purge directive of January 4th 90 per centum of 
tiie members of the present Diet, as well as many 
other persons holding high government office in the 
war administration, have been removed from gov- 
eriunent service and barred from public office or 
activity as officers of political joarties. No politi- 
cal group has hereby suffered so greatly as the re- 
actionaries. Every candidate for the New Diet, 
of wh.om there are over .3000, has been screened for 
affiliation or association with militarism and ultra- 
nationalism. Many reforms in the electoral sys- 
tem have been accomplished. The election laws 
are now sufficiently democratic to provide ample 
o]iportuuity for a free expression of the popular 
will. The campaign and the election are being 
carefully watched and closely studied by the forces 
under my command, with the objective of verify- 
ing the democratic nature of the electoral process. 



It is probable that the new Diet will be the most 
truly responsive body to the will of the peo^ile 
that has ever served Japan and will provide the 
basis for a much more I'epresentative cabinet. 
Under any circumstances it will certainly be a 
great improvement over the last Diet along demo- 
cratic and liberal lines. There is no ground for 
supposition that the reactionary party will secure 
a greater advantage as a result of the election at 
this time than at a later date. Political activity is 
now wide-spread. Any postponement of the elec- 
tion would inevitably result in greater advantage 
to the more experienced and better organized re- 
actionary group .severely crippled by the purge 
order who would thereby be provided the oppor- 
timity to regroup and strengthen. 

Any postponement would certainlj' be misun- 
derstood by the Japanese People, and would have a 
profound adverse reaction upon the purposes and 
success of the occupation. Should the results of 
the election prove disadvantageous to the purposes 
of the occupation, the remedy is always in my 
power to require the dissolution of the Diet and 
tiie holding of a new election under such provi- 
sions as are deemed necessary. 

The Commission expressed the following view : 
"Finally, the issue of the draft Constitution, of 
which you have approved, makes the Constitution 
at this late stage an election issue, upon which 
there can be little time for consideration by the 
Japanese people, and at the same time nuiy give 
an undue political advantage to the political party 
preferring this Constitution." 

The Commission seems to be laboring under a 
confusion of thought in believing that the consti- 
tution has been put forth by any particular party. 
The Cabinet itself does not represent any party. 
The Prime Minister. Shidehara, is completel.v 
independent aiul has no party affiliations what- 
soever. All parties in Japan, except the Com- 
nuuiistic Party, overwhelmingly favor the pro- 
posed constitution, which represents the work of 
men from many different groups and many dif- 
ferent affiliations. It has created confidence in 
the Cabinet but cannot be regarded as an appre- 
ciable factor in the elections as practically every 
candidate except the Connnunists support it. My 
own approval of it will have no slightest effect in 
any way on the election returns of any party or 
any candidate. 



APRIL 21, 1946 



641 



In rt'ply to your three specific questions in the 
last paragraph of your message my answers are: 

1. Question: Does the Supreme Commander 
share the api^rehensions expressed above? 

Answer: No. 

2. Question : If so, would he consider it possible 
and desirable to require a further postponement 
of the Japanese elections, and in that case, for 
what period ? 

Answer: No. 

;>. Question : If the S u p r e m e Commander 
should not consider a further postponement desir- 



able at this late date, would he express his views 
on tile desirability, as an alternative, of publicly 
prescribing that the forthcoming election will be 
regarded as a test of the ability of Japan to pro- 
duce a responsible and democratic government in 
full accordance with the wishes of the people and 
that further elections will be held at a later date ? 
Answer : The suggested statement seems wholly 
unnecessary. The conditions it would announce 
are inherent in the situation and are completely 
understood, as I can require dissolution of the 
Diet and call for another election at any time. 



Completion of Work of U.S. Education Mission to Japan 



Tex't of a letter from Dr. George D. Stoddard, 
Chairman, United States Education Mission to 
Japan 

April 4, lOJfi. 
My Dear Mr. Benton : 

On behalf of the United States Education Mis- 
sion to Japan, I have the honor to state that its 
work was completed in Tokyo on March 30th, 
culminating in a report to General MacArthur on 
that date. 

A copy of this report, and of the letter of trans- 
mittal, is attached. 1 The original draft and a 
carbon copy were delivered in person to Major 
General S. J. Chamberlain. Chief of Staff, GHQ, 
SCAP. by Col. John N. Andrews, Mr. Gordon 
Bowles and tJie Chairman. Col. Andrews has re- 
tained a copy for the War Department and Mr. 
Paul Stewart, General Secretary, has the fifth 
and final copy. The report is being mimeo- 
graphed in Tokyo, subject to release by SCAP. 
No information on the contents of the report has 
been released by the Mission. 

In Tokyo we went from the designation 
"Group" to that of "Mission" in order to contprm 
to the advance preparations and announcements 
of SCAP in Japan. 

As indicated in the report, we received at all 
points courteous and extensive aid. 

The Mission was entei-tained at luncheon by 
General and Mrs. MacArthur, and, in addition, 
the three members mentioned above spent over 
one hour with the Supreme Commander at his 



I'equest. We were received on a high plane of 
social and professional acceptance, as indicated by 
engagements with the Emperor, the Prime Minis- 
ter, the Minister for Foreign Affairs, the Minister 
of Education and the President of Tokyo Imperial 
University, who had been designated as Chairman 
of the Jai:)anese Committee. With the help of the 
CIc^E Section, we interviewed persons and in- 
spected programs representative of all stations in 
Japanese cultural life. 

I am happy to report that the morale of the 
group remained high throughout. You would, I 
am sure, be proud of the circumspect, friendly, 
and helpful fashion in which the members as indi- 
viduals, and as a whole, conducted themselves. 
Not the least of the benefits will come through 
this fine basis for cooperation thus built up 
through the impact of American personalities 
upon their Japanese counterparts. 

It is not feasible to single out all who con- 
tributed effectively to the report and to the periph- 
eral aims of the Mission, but everyone played a 
part. The report is truly a composite of group 
tliinking. Those who left early signified their 
desire to sign it and all names accordingly are in- 
cluded. You may note the absence of Charles 
Iglehart from the list. We found that he was al- 
ready retained as a consultant in the CI&E Sec- 
tion of SCAP, and could not therefore properly 
make recommendations, in this manner, to his 
superiors. However, he was helpful at all stages 
and was listed as a consultant. 

' Nut printed. 



642 



DEPARTMENT OF STATE BULLETIN 



A few persons must be mentioned, even in tliis 
brief account. Colonel John Andrews carried on 
his manifold duties in a spirit of efficiency and 
friendly service throughout. We would have been 
lost — probably literally — without him. Mr. Gor- 
don Bowles proved to be an invaluable member of 
the Mission, applying his full knowledge of the 
Japanese in a quiet and detached way that yielded 
a maximum benefit to everyone concerned. He 
will prove to be an ideal person to follow through 
on the first impact of the report. Mr. Paul 
Stewart mobilized the secretarial staff effectively 
and facilitated our work in a dozen ways. 

The Mission has proposed two actions to give 
tangible evidence of its good will toward the Japa- 
nese. At the sugge.stion of Dr. T. V. Smith and 
Mrs. Douglas Horton a fund of apjDroximately 
20,000 yen was raised by voluntary subscriptions 
among the members. It was decided to apply 
this fund to the purchase of a collection of books, 
"to be as widely useful as possible to the children 
and teachers of Jaj^an". Mr. Leon Carnovsky is 
in charge, and the plan has already been announced 
in Tokyo. 

A second measure, not announced, involves a re- 
quest from the Mission, to the State Department 
to assemble thirty sets of perhaps one dozen copies 
of books on American life and letters, to be sent 
to the members of the Japanese Education Com- 
mittee as a token of good will. It is my pleasure, 
as Chairman, to convey this recpiest to you with 
the hope that it can be met through the State De- 
partment channels. 

The members of the Mission are now safely at 
home, richly rewarded, all sharing a unique, if not 
historic cultural experience. By acclamation they 
expressed to you, and to all who made their ven- 
ture possible, a grateful vote of thanks and a desire 
to carry on from this point in any way you may 
find to be appropriate. 

We believe that a good start has been made 
along the lines laid down in the original plan, but 
we know well that it is only a start and that the 
Jai^anese leadei's themselves, aided by the Ameri- 
cans, must carry on. That this is consistent with 
Japanese aspirations is indicated by the speeches 
of the Minister of Education and the Chairman of 
the Japanese Education Committee, copies of 
which are attached.^ 

' Not printed. 



Another evidence of this relationship is indi- 
cated by the Emperor's request to the Chairman 
that he assist in finding an American woman tutor 
for the Crown Prince, Akahito. 

Finally, I take this occasion to thank you per- 
sonally for the deep pleasure this assignment has 
given me and to assure you that, in common with 
e^-ery member of the Mission, I should count it a 
privilege to be of further service. 
Very sincerely yours, 

George D. Stoddard 
The Honorable William Benton, 

Assistant Secretary of State 



National City Bank to Reopen 
in Tokyo 

[Released to tlie press April 1] 

The Department of State announced on April 
1 that the Tokyo branch of The National City 
Bank of New York would be permitted to reopen 
for limited operations related solely to the needs 
of the occupation. The reopening of a bank was 
essential for military reasons, and this action 
should not be considered a relaxation of the gen- 
eral ban on the entrance of private business 
interests into Japan at this time, made necessary 
by the lack of housing and food and by the gen- 
erally unsettled conditions. 

The National City Bank branch will not be per- 
mitted to engage in ordinary commercial bank- 
ing activities, and to the extent that any yen 
earnings accrue to the bank these will be blocked 
and subjected to the same disposition as accorded 
to assets in Japan of other American business 
concerns. In general, the activities of the branch 
will include : 

1. General depository for such public moneys of 
the United States as may be involved in occupa- 
tion activities. 

2. Bank of deposit for members of the United 
States armed forces for accumulation of pay and 
allowances found excess to their local needs. 

3. Depository for yen proceeds of certain re- 
mittances of an official nature after they have 
reached Japan. 



APRIL 21, 1946 



643 



4. Depositoi-y for proceeds reulized from local 
sales of civilian supplies introduced under United 
States military authority into Japan. 

5. Safekeeping services for United States mili- 
tary forces and accredited personnel. 

Since it is recognized that the opeiations of the 
bank could be performed by other American banks 
with similar facilities, such banks prepared to" 
operate in Japan under the same conditions afe 
those prescribed for The National City Bank may 
make application to open or reopen branches in 
Japan. Similarly, since the commanding officer 
of the occupation forces of other Allied nations 
in Japan may as a matter of military necessity 
require non-commercial banking facilities for his 
troops, banks of other Allied nations will be per- 
mitted to open or reopen branches in Japan under 
the same conditions applicable to American 
branch banks. 

For American banks authorized to open or re- 
open branches in Japan the State Department will 
arrange for the issuance of passports and the 
Treasury Department will issue licenses permitting 
communication subject to the following conditions : 



1. Such communication shall relate only to 
operations of the branch bank in Japan which are 
authorized by the Supreme Commander for the 
Allied Powers. 

2. The text of all incoming and outgoing com- 
munications will be submitted by the representa- 
tives of the banks in Japan to the appropriate staff 
section of the Supreme Commander for the Allied 
Powers in Japan. 

3. In the event telecommunication facilities are 
utilized all messages from the United States to 
Japan are prepaid in dollars and all messages from 
Japan to the United States are sent collect in dol- 
lars at the United States terminal. 

4. All communications from the bank in the 
United States to its branch in Japan are addressed 
to the designated representatives in Japan in care 
of the appropriate staff section designated by the 
Supreme Commander for the Allied Powers in 
Japan. 

Applications for permission to open or reopen 
branch banks in Japan should be addressed to the 
Department of State, attention of Assistant Sec- 
retary for Economic Affaii-s. 



UNESCO— Con Untied from page 639. 



of the mind and of the spirit — in the education of 
children, and the full and just information of the 
citizens, and the fullest possible development of 
science and scholarship and the fine arts. 

I have heard it said that the people of the United 
States were not interested in matters of education 
and science and culture. Nothing I have seen 
during my life — certainly nothing I have seen in 
the years of the war and the months after it — would 
give any support whatever to that assertion. On 
the contrary, I think the history of the American 
people and their frequent expressions of opinion 
have clearly demonstrated that they attach greater 
importance to education a»d science and to all 
those forms of human expression through which 
their life as a people has been developed than they 
attach to anything else except — if it is an excep- 
tion — their religious faith. 

My colleagues on the American Delegation to 



the London conference will be able to report to the 
committee on the details of the constitution. My 
own report to the Secretary of State, to which I 
have referred above, sums up my own opinions on 
that subject, if my own opinions are considered 
relevant. I cannot, however, too strongly assert 
my personal conviction and belief that UNESCO 
is not only an important part of the group of or- 
ganizations which will compose the UNO, but is 
also an instrument of particular importance to the 
people of this country. 

How much it will accomplish in fact will depend 
upon the men who staff it and the warmth with 
which it is supported by the member governments. 
The constitution drafted at London does, however, 
create an instrument of which use can be made, 
should the men be found and should the nations so 
desire. 

Very respectfully submitted 

Archibald MacLeish 



644 



DEPARTMENT OF STATE BULLETIN 



Purchase of Natural Rubber 
From Malaya 

[Released to the press April 4] 

Price negotiations have been concluded whereby 
the Reconstruction Finance Corporation, through 
its subsidiary, the Ru)>ber Deveh)j)inout Corpora- 
tion, will purchase all natural rubber, allocated to 
the United States by the Combined Rubber Com- 
mittee, from Malaya at a price of 2014 cents (U.S. 
currency) a pound for standard top grades, deliv- 
ered free on board ocean-going steamer at Far 
Eastern port. This extends, through June 30, 
1946, the previous agreement which applied to de- 
liveries from V-J Day through March 31, 1946. 
Similar price arrangements are in force with the 
Governments of France and the Netherlands. 



U.S. Withdrawal From 
Galapagos Base 

t Released to the press .\pril G] 

The United States Government has informed 
the Ecuadoran Government, following an exten- 
sive exchange of views between the two Govern- 
ments about the future disposition of the base, that 
the United States will have completely withdrawn 
from the Galajiagos base by July 1, 1946. It is 
anticipated that this base, which was constructed 
and used by United States military forces during 
the war by agreement between the two countries, 
will be reduced to a minimum operational status 
by May 1. 



U.S. Policy in Korea 

[Released to the press .\pril 5 J 

The Department of State has found no basis in 
fact for rumors to the effect that there is a uni- 
lateral move underway by U.S. forces in Southern 
Korea to turn over affairs to Koreans there. In 
line with our desire to expedite the emergence of a 
free, united, and indeijendent Korea, tjie U.S. 
Military Government authorities in Soutliern 
Korea have since their arrival there in September 
1945 encouraged qualified Koreans to take over cer- 
tain functions in order that they may assume re- 
.siJonsibilities and obtain experience in govern- 
mental administration looking toward the ultimate 
as.sumption by Koi'eans of full governmental 
responsibilities. 

This Government favors the early establishment 
of a provisional Korean democratic government 
for all of Korea, as contemplated under the terms 
of the agreement I'eached in Moscow in December 
1945. To that end the joint U.S.-U.S.S.R. Com- 
mission now meeting in Seoul has been charged by 
the two Governments with consulting Korean 
democratic parties and social organizations in or- 
der to accomplish the establishment of a Korean 
provisional government. 



Our Relations With 
Great Britain 

On March 30 Anglo-American relations and 
their significance in our foreign policy were dis- 
cussed on the NBC University of the Air series 
entitled "Our Foreign Policy". Participants in 
the broadcast were John G. Winant, retiring Am- 
bassador to Great Britain and U. S. Representa- 
tive on the United Nations Economic and Social 
Council; and Edward T. Wailes, Chief of the Di- 
vision of British Commonwealth Affairs, Depart- 
ment of State. 

For text of the broadcast see Department of 
State press release 205 of March 30. 



Corrigendum 

In the Bulletin of March 31, 1!I46, page 527, 
the footnote to the Fourth Ct)uncil Session of 
UNRRA should read — 

Made on March 17, 1946, on belialf of Assistant Secretary 
Clayton by C. Tyler Wood, Sijeclal Assistant to Assistant 
Secretary Clayton and flr.st alternate on the U.S. Delega- 
tion, and released to the press on the same date. 



PUBLISHED WITH APPROVAL OF DIRECTOR OF BUREAU OF THE BUDGET 
U. S, GOVERNMENT PRINTING OFFICE: 1946 



THE DEPARTMENT OF STATE 




VOL. XIV, NO. 355 



APRIL 21. 1946 



The American Trade Proposals: The Proposals and the 
Trade -Agreements Program 

Article bv CHARLES BUNN 



Austria: Zones of Occupation 

Article l.v LAWRENCE A. HOFFMAN 



^eNT o^ 



For complete contents 
see inside cover 




M 19 1946 



THE DEPARTMENT OF STATE 

BULLETIN 



^■'•'"Z. "■ 



Vol. XIV -No. 355» 




• Publication 25ir> 



April 21, 1946 



For sale by ibe Superintendent of Documeni 

U. S. Government Printing Office 

Wa8hingion25, D. C. 

Subscription: 

52 iBBueB, $3.50;'6inele copy, 10 cents 

Special offer: 13 weeks for $1.00 
(renewable only on yearly basifi) 



The Department of State BULLETIN, 
a ueekly publication compiled and 
edited in the Division of Research and 
Publication, Office of Public Affairs, 
provides the public and interested 
agencies of the Government with 
information on developments in the 
field of foreign relations and on the 
uork of the Department of State and 
the Foreign Service. The BULLETIN 
includes press releases on foreign 
policy issued by the White House and 
the Department, and statements and 
(■ddresses made by the President and 
by the Secretary of State and other 
officers of the Department, as well as 
special articles on various phases of 
international affairs and the functions 
of the Department. Information con- 
cerning treaties and international 
agreements to which the United States 
is or may become a party and treaties 
of general international interest is 
included. 

Publications of the Department, cu- 
mulative lists of which are published 
(It the end of each quarter, as well as 
legislative materialin thefield of inter- 
national relations, are listed currently. 



Contents 



The American Trade Proposals: The Proposals and the Trade 

Agreements Program. p^g^ 

Article bj' Charles Bunn 647 

Austria: Zones of Occupation. 

Article by L. A. Hotfraan 649 

International Organizations and 
Conferences 

Calendar of ^^eetings ' 655 

Activities and Developments: Far f^astern Commission . . . 655 
U.S. Responsibilities in FAO 656 

The United Nations 

Meeting of the Security Council: 

Discussion of Soviet-Iranian Matter 657 

Requests to Consider Activities of Franco Regime .... 660 

Provisional Rules of Procedure of the Security Council . . . 661 

Special Committee on Refugees and Displaced Persons .... 664 

The Record of the Week 

U.S. Memorandum to American Republics on Argentine 

Situation 666 

Continuation of Preparations for Atomic-Bomb Tests. State- 
ment by the President 667 

Report on Denaturing of Atomic Explosives 668 

Yugoslav Reply to U.S. Note on General Mikhailovich . . . 669 

U.S. Owners of Polish Property Granted Assistance 670 

Statement of the -Allied Mission for Ob-serving the Greek 

Elections 671 

U.S. Aid in Economic Reconstruction of France. By Assistant 

Secretary Hilldring 674 

Confirmation of Bernard M. Baruch 676 

The Importance of International Economic Relations to 

World Peace. By Assistant Secretary Clayton 677 

Answer to Inquiries on German-Owned Factories in Spain . 681 
Commendation to Generals McNarney and Clay on German 

Industry Settlement 681 

.Answer to Soviet Incjuir}' on Charges Against Lieutenant 

Redin 682 

Resumption of Relations With Haiti 682 

Canada Purchases U.S. Defense Installations 683 

*Air-Transport Agreement With Belgium 683 

.Addresses of the Week on Inter-American Cooperation. . . 683 

^Interim Arrangements for Air Navigation Facilities Abroad 684 
Transfer of Corporations of OIAA to the Department of 
State: 

Statement by the President 685 

Statement by the Department of State 685 

Executive Order 9710 686 

Mexican Educator Visits U.S 687 

Funds for the Department's Intelligence Program. Statement 

by the Secretary of State 687 

The Foreign Service: 

Consular Offices 687 

Confirmations 687 

Publications of the Department of State 688 

*Treat.v Information. 



The American Trade Proposals: 

The Proposals and the Trade Agreements Program 



Article by CHARLES BUNN ^ 



THE MAIN PURPOSE of the Reciprocal Trade 
Agreements Act ever since its passage in 
1934: has been to increase the foreign trade of the 
United States in both directions, by cutting down 
tlie barriers wliich we and otlier countries main- 
tain against that trade. 

In June 1945 Congress renewed the act and 
increased the President's authority under it so 
that he is now autliorized to make reductions of 
particuhir tariff' rates up to 50 percent of their 
level on January 1, 1945. This increase of the 
President's authority, of coui-se, increases corre- 
spondingly his bargaining poM-er regarding bai'- 
riers against the trade of the United States main- 
tained by other countries. 

This increase of authority does not mean that 
any particular rate is, in fact, to be reduced to the 
authorized extent. Reductions will be made in the 
future, as they have been in the past, selectively, 
after full hearing and consideration, with due re- 
gard for the interests of American producers, and 
always in return for corresponding concessions 
made by other countries. 

With the war's end a larger opportunity than 
ever before is presented for the operation of the 
trade-agreements program. 

On December 6, 1945 the Secretary of State pub- 
lished the American Proposals for Expansion of 
World Trade and Employment.'^ These Proposals 
suggest that the United Nations call an Interna- 
tional Conference on Trade and Employment to 
create an International Trade Organization as 
part of the United Nations structure. The char- 
ter of the Organization, if the Proposals are ac- 
cepted, would contain an agreed code of liberal 
rules to govern foreign trade among the countries 
that accept it. 



The Proposals suggest that that code should 
provide : 

1. Tliat tariffs be substantially reduced and that 
preferences be eliminated. 

2. That quotas and embargoes be limited to a 
few reullj' necessary eases and that they be ad- 
ministered without discrimination. 

3. That export subsidies be confined to excep- 
tional cases, under general rules. 

4. That governments conducting foreign trade 
by their own agencies agree to give fair treatment 
to the commerce of all friendly countries and to 
make their purchases and sales on purely economic 
grounds. 

5. That cartels and combines be prevented by 
international action from restricting the commerce 
of the world. 

6. That the special problems of surplus com- 
modities be handled by agreements among gov- 
ernments; that such agreements seek always to 
expand consumption and to ease transitions rather 
than freezing vested interests; that they be at- 
tended at every stage by full publicity; and that 
consuming countries have an equal voice with i^ro- 
ducing countries in making and operating them. 

' Mr. Bunn is Adviser to the OflBce of International 
Trade Polic.v, Department of State. For other articles on 
tlie trade proposal.s. see : 

"Trade Barriers Imposed by Government" by Margaret 
I'otter, Bulletin of Mar. 17, 1946, p. 403 ; "Restrictive 
Business Practices" by Robert Terrill, Bulletin of Mar. 
24, 1SM6, p. 4.55; "Intergovernmental Commodity Agree- 
ments" by William T. Phillips, Bulletin of Mar. 31, 1946, 
[I. 509; "Proposals Concerning Employment" by Ellsworth 
H. Plank and Maurice J. Erickson. Bulletin of Apr. 7, 
1946, p. 561 : "The American Trade Proposals : An Inter- 
national Trade Organization" by Louis K. Hyde, Jr., 
lUnLETiN of Apr. 14, 1946, p. 616. 

" For text of Proposals see Bulletin of Dec. 9, 1945, p. 
912. 

647 



648 



DEPARTMENT OF STATE BULLETIN 



All these matters and otliers are covered more 
fully in the Projaosals themselves and in the pre- 
vious articles in this series that have appeared in 
the Depautment of State Bulletin. 

The Proposals have been submitted for consid- 
eration by the peojsle of the United States and by 
the governments of other countries i^rior to their 
formal consideration by an international confer- 
ence to be called by the United Nations. 

The Economic and Social Council of the United 
Nations, at its meeting in London in February 
1946, adopted a resolution of which the preamble 
and paragraph 1 read as follows: 

"The Economic and Social Council, consider- 
ing it essential that the co-operative economic 
measures already taken be supplemented by fur- 
tlier international measures dealing directly with 
trade barriers and discriminations which stand in 
the way of an expansion of multilateral trade and 
by an undertaking on the part of nations to seek 
full employment, 

"1. Decides to call an International Conference 
on Trade and Employment, in the latter part of 
1946, for the purpose of promoting the expansion 
of production, exchange and consumption of 
goods;" 

Prior to this action, and in December 1945, 
the United States had invited 15 countries to meet 
to draft a tentative charter of an International 
Trade Organization for consideration later by the 
general Conference and to negotiate specific reduc- 
tions of trade barriers among the countries par- 
ticipating in the meeting. 

Subsequentl,y, and by the same resolution above 
referred to, the Economic and Social Council made 
its own arrangements to prepare for the Confer- 
ence. The resolution proceeds: 

"2. Constitutes a Preparatory Committee to 
elaborate an annotated draft agenda, including a 
draft convention, for consideration by the Con- 
ference, taking into account suggestions which 
may be submitted to it by the Economic and Social 
Council or by any Member of the United Nations ; 

"3. Suggests, as a basis of discussion for the 
Preparatory Committee, tliat the Agenda include 
the following topics : 

"(a) International agreement relating to tlie 

'This list includes thf I'l countries previously invited l)}" 
the United States, plus Chile, Lebanon, and Norway. 



achievement and maintenance of high and stable 
levels of employment and economic activity, 

"(&) International agreement relating to regu- 
hitions, restrictions and discriminations atl'ecting 
international trade, 

"(iT") International agreement relating to re- 
strictive business practices, 

"((^) International agreement relating to inter- 
governmental conmiodity arrangements, 

"(e) Establishment of an international trade 
organization, as a specialized agency of the United 
Nations, having responsibilities in the fields of 
(b), (c) and (d) above; 

"4. Requests the Preparatory Committee, when 
considering the foregoing items, to take into ac- 
count the special conditions which prevail in coun- 
tries whose manufacturing industry is still in its 
initial stages of development, and the questions 
that arise in connection with commodities which 
are subject to special problems of adjustment in 
international markets ; 

''5. Requests the Preparatory Committee to re- 
port to a subsequent session of the Council recom- 
mendations regarding the date and place of the 
Conference and the agenda (including a draft con- 
vention) and also what States, if any, not Members 
of the United Nations, should be invited to the 
Conference on Trade and Employment ; 

"6. Appoints as Members of the Preparatory 
Committee the Representatives of the Govern- 
ments of the following countries: Australia, Bel- 
gium-Luxembourg, Brazil, Canada, Chile, China, 
Cuba, Czechoslovakia, France, India, Lebanon, 
Netherlands, New Zealand, Norway, South Africa, 
U.S.S.R., the United States and the United 
Kingdom." ^ 

It will be noticed that under this resolution the 
Preparatoiy Counnittee takes over the work of 
preparing a draft convention for consideration by 
the Conference but does not take over the other 
subject mentioned in the invitation previously is- 
sued by the LTnited States, namely, the negotiation 
of specific reductions of trade barriers among the 
participating countries. It therefore seems likely 
that two groups, having largely but not entirely 
the same membership, will be at work on separate 
but related subjects, (1) the preparation of "an 
annotated draft agenda, including a draft conven- 
tion, for consideration by the Conference" and ('2) 
(Contiimcfl on page 6'65) 



APRIL 21, 1946 



649 



Austria: Zones of Occupation 



Article by L. A. HOFFMAN 



AUSTRIA is one of tlie countries now undergoin<i' 
. a period of Allied occupation. The jjresent 
zones of occupation divide the country neither uni- 
formly nor in accordance with physical or eco- 
nomic I'egions. With two excejations, the zonal 
boundaries follow the 1937 Austrian provincial 
boundaries (see map). A study of these zones on 
the basis of their relative inii)ortance in terms of 
the latest pre-war population, resources, and eco- 
nomic productivity may give an indication of the 
strength of Austria's economic contribution in a 
world at peace. 

Physical Setting 

Although Austria is primarily mountainous, it 
affords a great variety of productive activities 
from region to region. The tojjographic complex- 
ity of the country accounts for many of the prob- 
lems of occupation and administration in the four 
zones. 

Austria is primarily an Al2:)ine state'and has the 
complex pattern of many small topographic re- 
gions characteristic of areas of folded mountains. 
This pattern in turn affects the distribution of pop- 
ulation, land-use, and general productivity. The 
zones of occui^ation overlap the boundaries of the 
physiographic regions; thus, each zone has many 
features in common as well as some distinctive 
ones. 

The Austrian Alps are broader and lower than 
(he Swiss Alps to the west but have the same gen- 
eral formations. Three great parallel ranges ex- 
tend from west to east, with a great central core 
range separated by longitudinal valleys from the 
limestone ranges on both the north and south. 
This central core range is chiefly crystalline (gi'an- 
ite and schist), but there are larger limestone rem- 
nants than are found farther west. All four zones 
have portions of these ranges. The Alps reappear 
as the great curve of the Carpathians, to the north- 



eastward, across the structural gap in which the 
Danube flows. 

In the west (the French zone) the Austrian- 
Italian boundary runs along the crest of the great 
central range; and the southern limestone range 
(the Dolomites) and the intervening valley are 
in Italy. Also, in the west, the northern lime- 
stone range forms the Austrian-German boundary. 
In the intervening vallej' is Innsbruck, the only 
large city in western Austria. It lies at a strategic 
point where the Brenner Pass route, the only 
north-south route that crosses the Alps without 
a tunnel at an elevation less than a mile above 
sea-level, crosses the Paris-Zurich- Vienna route 
through the Inn depression. Farther east, the 
Austrian- Yugoslav boundary luns along the south- 
ern limestone range, so that in eastern Austiia all 
three Alpine ranges and both longitudinal valleys 
are within the country. In the south, the Austrian 
Alps are continued in the karst (limestone) pla- 
teaus of the Dinaric system along the Adriatic. 

The two longitudinal valleys are each i-eally a 
series of ridges and valleys, something like the 
Great Valley in the Appalachian system. The 
northern one (drained by the Inn, Salzach, and 
Enns rivers) and the southern one (drained by the 
Mur, Miirz, and Drau rivers) together contain 
most of the 1.5 million population living in the 
mountainous half of Austria. 

Austria has been referred to as an Alpine state. 
This is true so far as the area as a whole is con- 
cerned. Most of the people, however, and a large 

Mr. Hoffman is Population Geographer in the Division 
of International and Functional Intelligence, Office of Re- 
search and Intelligence, Department of State. For his 
article on "Germany : Zones of Occnpatiou" see Buixetin 
of Apr. 14, p. 590. Copies of maps of the zones of occupa- 
tion of Germany and Austria may be obtained from the 
Division of Research and Publication, Department of 
State. 



650 



DEPARTMENT OF STATE BULLETIN 



part of tlie resources and i)rodiictivity are concen- 
trated along the nortliern. eastern, and southeast- 
ern edges. Over 5 million people live in the hills 
and plains around the edges of the eastern Alps, 
which compi'ise half of the country. Most of these 
peopl? live in the more level areas which together 
make up only a quarter of Austria. 

The most populous and productive portion of 
Austria is shaped something like an inverted check 
mark. The shorter arm is the eastern edge of the 
country, mainly the Vienna Basin and the Burgen- 
land plains (part of the Hungarian Basin). The 
long arm is formed mainly by the Danubian plains, 
which trend roughly east and west. Tlie term 
Datiuhian plains, as used here, includes not only 
the narrow flood plain in the Danube gorge but also 
the rolling country in the hilly foreland area be- 
tween the river and the northern Alpine ridge, plus 
the smoother eastern portion of the strip of the 
Bohemian Plateau that lies within Austria (north 
of tlie Danube). 

Vienna Administered Jointly 

Vienna (Wien) is by far the most significant 
spot in Austria. It is strategically located near 
the point where the Danube debouches from its 
narrow Austrian gorge into the plains of the Hun- 
garian Basin. Here converge the main routes 
from the Paris Basin, the Rhineland, Saxony, and 
Bohemia, the German-Polish sandy plains, the 
middle and lower Danube region, and the Po Val- 
ley. It is one of the largest transportation nodes 
in central Europe. 

The city of Vienna (with only one third of one 
percent of the area of Austria) included over a 
fourth of the 1939 total Austrian population and 
comprised almost two thirds of the 1939 Austrian 
urban population. Among the city's population 
were included about a third of the Austrian indus- 
trial population, and about two fifths of the Aus- 
trian commercial and professional populations. 

In its pre-war industrial specialization, Vienna 
resembled Paris more than it did any other Euro- 
pean city. Its industrial output trended toward 

' In the discussion of the individual zones of occupa- 
tion, that part of Vienna oociipicd by o'ach power is not 
included as part of its zone. 



items that emphasized quality and artistry rather 
than mass-production and economy. Among its 
specialties were fine cotton, wool, and silk textiles 
(hosiery, lace, and knit goods), metal fabrication 
(vehicles and machinery), leather goods, fine 
furniture, and wood products (fine paper, toys, 
and musical instruments). ]\Iuch of the yarn for 
the Vieimese textile production was imported, but 
some came from other parts of Austria. 

Although iDrecise figures are not available, prob- 
ably over a third of Austria's 1937 national pro- 
duction, valued at some 1.1 billion dollars, came 
from the city of Vienna alone. Since Viemia was 
so overwhelmingly notable as tlie political, com- 
mercial, cultural, and industrial center of Austria, 
it was not assigned to any one of the Allies for 
sole control but is administered jointly by the 
four powers, with individual sectors of occupation. 

Vienna : Sectors of Occupation 



Vienna (1937 boundaries) 
Center of city (Joint) . 
Soviet sectors (2) . . . 
British sectors (2) . . . 
American sector . . . . 
French sector 



Area in 
square 
miles 


1939 popu- 
lation (in 
tliousands) 


Percent 

of total 

population 


107 


1, 705 


100 


1 


33 


2 


59 


525 


31 


20 


403 


23 


18 


369 


22 


9 


375 


22 



Soviet Zone Significant Agricultural Area 

That part of Austria occupied by the U.S.S.R. 
had three tenths of the country's total pre-war 
poijulation, an absolute poi^ulation larger than 
that in any of the other zones.^ Nine tenths of the 
1!);]9 population in the Soviet zone lived in com- 
munities under 10,000. Except for the Linz area 
under American occupation, and the Klagenfurt 
and Graz Basins under British occupation, the 
most productive parts of Austria (outside Vienna ) 
are in the Soviet zone. 

The Soviet zone is chiefly agricultiu'al and in- 
cludes the agricultural part of the Vienna Basin, 
the Burgenland plains, and most of the Danubian 
plains. Over three fifths of the pre-war Austrian 
plowland was in the zone, and some 45 percent of 
the agricultural population lived there. Over half 



APRIL 21, 1946 



651 



of the oats, maize, and leguminous fodder crops, 
about three fifths of the rye, wheat, and root crops, 
two thirds of the potatoes, three tenths of the bar- 
lej', three quarters of the mixed green fodder crops, 
and over nine tenths of the sugar-beet crop came 
from wliat is now the Soviet zone. In addition, 
truck and fruit crops were produced in the Vienna 
Basin. 

Altliougli cattle and horses were plentiful in 
pre-war days, most of the dairy herds were in other 
i:)arts of the country. Although the zone had over 
three fifths of the plowland, it had only a fifth 
of the other agricultural land, which was chiefly 
grassland. The Soviet zone was- jarimarily the 
granary of pre-war Austria. 

A little more than a fourth of the pre-war 
Austrian industrial population lived in the zone, 
most of whom were in the Sankt Polten and 
Wiener-Neustadt areas, immediately tributary to 
Vienna. Textile manufacture was the leading in- 
dustry, but considerable metal fabrication also was 
done in Wiener-Neustadt. Mineral fuels were not 
plentiful. Prior to the war, all of the Austrian 
hard coal - and one tenth of the Austrian lignite 
production came from areas now in the Soviet 
zone ; but most of the electric power was furnished 
by hydroelectric plants in the mountains and by 
steam plants in the Vienna area, which used much 
Upper Silesian coal. The only Austrian oil field — 
Zistersdorf , northeast of Vienna — is in the Soviet 
zone and had a 1937 production of only 33,000 
metric tons. This had risen, however, to 1,435,000 
tons by 1941. At that time this field was reported 
as furnishing the Nazis one third as much petro- 
leum as the bomb-damaged Rumanian fields. 

Commercial and professional activities were not 
particularly outstanding in the zone, since much 
of tlie area was served by Vienna. It is doubtful 
if the Soviet zone prt)duced more than a quarter 
of the Austrian income, since much of the popula- 
tion (especially in the Burgenland area) was en- 
gaged in rather extensive agriculture of the east- 
ern-European type, which was not particularly 
productive compared with western-European 
types of agricultural and industrial pursuits. 

Between 1934 and 1939 the population of this 
zone remained almost constant. Like all of the 
zones, the Soviet one was overwhelmingly Catholic. 

°Vei-y small amount: 228,000 tons production In 1937, 
7.5 million tons reserves. 



British Zone Heavy Industry and Mineral 
Producer 

Although the British zone is the largest of the 
zones in area, it had only a little over one fifth of 
the 1939 population. Over a fourth of this 1.5 mil- 
lion population was in the 10 cities over 10,000 
(especially in Graz, Austria's second largest city). 
Average density of population is deceiving in such 
a hilly area, since the majority of the people live 
in the narrow valleys with consequently high den- 
sities, leaving large areas in the higher mountains 
almost uninhabited. 

Over a third of the 1939 population was de- 
pendent upon agriculture. A fifth of the Austrian 
plowland was in the zone, as was about the same 
proportion of most of the principal crops. About 
half of the Austrian cropland planted in maize and 
mixed grain was here, and fodder crops were sub- 
stantial. Dairying was a leading activity since al- 
most two fifths of the Austrian grassland was in 
the zone. 

Although fewer people in the British zone were 
dependent upon industry than upon agriculture, 
industrial activities probably produced as large a 
proportion of the zonal income as did agricul- 
tural activities. Most of the industry was in the 
Graz and Klagenfurt basins and was based upon 
the mineral output of the Eisenerzer Alps (be- 
tween the headwaters of the Enns and Mur rivers) 
and the Steierische Erzberg. About seven tenths 
of the Austrian lignite production came from this 
zone, as well as most of the Austrian iron, lead, 
zinc, copper, and magnesite. 

Austria: Lignite Reserves and Production 





1937 Production 


Reserves 


• 


Thou- 
sands 
of tons 


Percent 
of pro- 
duction 


Thousands 
of tons 


Percent 

of 
reserves 


Austria (1937 boundaries) 
Soviet zone ..... 

British zone 

American zone .... 
French zone 


3,220 
333 

2,243 

600 

44 


100 

10 

70 

19 

1 


433, 000 

11,500 

220, 500 

200, 000 

1,000 


100 

3 

51 

46 



Probably the most outstanding mineral produc- 
tion was the 1-1.5 million tons of iron ore mined 
annually. This was the largest pre-war iron-ore 
production of the Danubian area. It was mod- 



652 



DEPARTMENT OF STATE BULLETIN 



erate quality (36-40 percent Fe) and almost free 
of sulphur and phosphorus. This ore formed the 
basis of the Styrian metallurgical industries, the 
leading metal industries in Austria.^ Most of 
the 1937 Austrian production of 389,000 tons of 
pig iron and 650,000 tons of steel came from the 
Graz Basin (although there were small plants in 
Vienna, Lower Austria, and Salzburg). In the 
Graz area and around Klagenfurt were plants 
turning out electrical, textile, and agricultural ma- 
chinery, as well as tools, automobiles, and motor - 
cj'cles. The abundant hych'oelectric power devel- 
oped in the Mur and Drau river systems, together 
with the timber output of the two fifths of the 
Austrian forest land in the British zone, laid the 
basis for an extensive pre-war output of pulp, 
cellulose, and paper. About a fifth of the pre-war 
value of Austrian production came from the Brit- 
ish zone. 

Between 1934 and 1939 this zone increased only 
1 percent in population, with most of the increase 
taking place in the industrial mining settlements 
of the upjjer Graz Basin. This zone had a larger 
Protestant minority than any other part of Aus- 
tria except the city of Vienna, although it was a 
very small minority in absolute numbers. 

Varied Activities in American Zone 

About a fifth of Austria is under American oc- 
cupation. The zone contained 15 percent of the 
1939 Austrian population, of which over seven 
tenths lived in places under 10,000. 

A considerable amount of rich farmland ex- 
ists in the hilly area southwest of Linz and in 
the Salzach Valley. The American zone con- 
tained almost as much plowland as the British 
zone, although it is less than three fifths as lai'ge. 
A cover of loess in the rather deeply incised val- 

' Since Austrian lignite is of pooi- quality, it was used 
chiefly as houseliold fuel ; industrial fuel was imported 
from tlie Upper Silesian coal field. It should be noted 
that the Austrian metallurgical industries mentioned here 
do not include the Hermann Goering worlds near Linz 
in the American zone, since it did not begin to i^roduce 
until after the war started. 

' The wartime control of the Lorraine iron deposits also 
probably made it less desirable to use the low-grade iron 
ores of the Linz area, since they would require larger 
anioiuits of valuable coke to smelt. 



leys makes very fertile soil, which produces large 
crops of wheat, rye, barley, and oats. Over a third 
of the zone is grassland, the basis for an extensive 
dairy industry. 

The glacial lakes and towering limestone cliffs 
i)f the southern part of the zone were the scenic 
attractions for a significant pre-war tourist trade. 
A fifth of the Austrian forest land was in the 
zone and, together with abundant water power, 
formed the basis for important pre-war wood in- 
dustries. 

The foreland area at the base of the Alps con- 
tained mineral deposits. About a fifth of the Aus- 
trian lignite production and considerable amounts 
of salt and iron came fi'om this area. The Nazis 
had plans for an extensive metallurgical industry 
in the Linz area, but the war interfered with com- 
pletion of the works on the plan they had orig- 
inallv worked out.^ 

The American zone was one of the two zones in 
Austria that increased in population during the 
period 1934-1939. Most of the increase took place 
in the cities of Linz, Salzburg, Steyr, Gmunden, 
and Wels. 

French Zone Least Productive of Zones 

In pojiulation, resources, and productivity, the 
Fz'ench zone is the least important of the zones 
of occupation. It has about a sixth of the area, 
but only had about one fourteenth of the 1939 
poiJulation. Its main resources are grass and scen- 
ery ; and it has relatively low routes of travel. 

The area resembles Switzerland in both i)hysical 
environment and human development. Practi- 
cally all of the cultivated land ( about the size of the 
city of Vienna) is in the valley of the Inn River. 
Mountain pastures cover almost a third of the 
area and support the dairy herds which furnish 
the chief agricultural surplu.ses. 

This was the only zone in which the industrial 
population was slightly larger than the agricul- 
tural population (although both are relatively 
smaller than in the other zones). Water power 
and an early development were significant in the 
growth of the cotton-textile industries, now 
centered in Innsbruck. These industries had their 
start as household industries. 

The French zone, like the American zone, was 
the site of substantial tourist activities in pre-war 



APRIL 21, 1946 



6.53 



days. It had a moderate increase of population 
between VXU and 19;3!). 

Interdependence of Zones 

As has been mentioned, in general the present 
Allied zones of occupation follow old political sub- 
divisions and bear little relation to physiographic 
regions. Tlie iSoviet zone contains most of the 
lowlands as well as considerable ai'eas of Alpine 
foothills. The British, American, and French 
zones are mainly mountainous, with most of the 
population living in the small plains, valleys, and 
basins scattered among the highlands. In terms 
of activities during pre-war days, the zones formed 
an intimately related economy; not one of them 
can be described as even reasonablv self-sufficient. 



Vienna furnished most of the manufacture of 
goods that were exported and also provided many 
commeicial, professional, and cultural services for 
the whole country. The Soviet zone furnished 
agricultural surpluses and textile yarns from the 
outer industrial suburbs of Vienna. The British 
zone supplied nn)st of the industrial minerals and 
the raw and semi-finished iron and steel goods. 
The American and British zones furnished most 
of tlie timber and pulp. The British, American, 
and French zones furnished most of the dairy sur- 
pluses. The American and French zones had most 
of the tourist industry. Each of the zones de- 
pended upon the others for part of its livelihood, 
as well as upon imports that were paid for with 
surpluses from restricted areas of the country. 



Austria: General Population Data for Zones of Occupation 





Total .\rea 


1933 Total Population 


Density per Square 
Mile 


Population Change 




111 square 
miles 


Percent of 

Austrian 

area 


In thou- 
sands 


Percent of 

.\ustrian 

population 


Of total 
population 


Of popu- 

lat ion in 

places 

under 

10.000 


1934 Popu- 
lation in 
thousands 


1934-1939 

zone 
change in 
thousands 


Percent 
change 
in zone 


Austria (1937 Boundaries) . . 
Vienna (.Joint Administra- 
tion) 

Soviet zone 

British zone 

American zone 

French zone 


32, 381 

107 

10, 180 

10, 788 

6, 198 

5, 108 


100 

(t) 

31 
34 
19 
16 


6,650 

1,705 
1, 989 
1,459 
1,008 
489 


100 

26 
30 
22 
15 

7 


205 

15, 935 

195 

135 

163 

96 


124 



177 

102 

120 

70 


*6, 760 

1,874 

1,991 

1,451 

966 

473 


-*110 

-169 
-2 

-t-8 
-f42 
-1-16 


-2 

-9 

(t) 
+ 1 
+ 4 
+ 3 



Austria: 1939 Urban-Rural Break-Down for Zones of Occupation 



Austria (1937 Boundaries) . . 
Vienna (Joint Administra- 
tion) 

Soviet zone 

British zone 

American zone 

French zone 



Xumber of 
cities 



32 

1 
9 

10 
7 
5 



Cities in.OOO and Over 



square 
miles 



729 

107 
122 
193 
176 
131 



Population 

of cities 

in 

thousands 



2,716 

1,705 
205 
379 
287 
140 



Percent of 

population 

in zone 



41 

100 
10 
26 
28 
29 



Percent of 
Austrian 

city 
population 



100 

63 

7 

14 

11 

5 



Communities Under 10,000 in Size 



Area in 
square 
miles 



31,652 



10, 058 

10, 595 

6,022 

4, 977 



Rural pop- 
ulation in 
thousands 



3,934 



1,784 

1,080 

721 

349 



Percent of 

population 

in zone 



59 


90 
74 

72 
71 



Percent of 

Austrian 

rural 

population 



100 


45 
28 
18 

9 



t Very small amount or percent. 

•The break-down in this column will not add up exactly to the total for Austria because there were 4,726 people reported without specific residences in the 
1934 Austrian census. 



(i907S,i— 46- 



(554 DEPARTMENT OF STATE BULLETIN 

Austria: 1939 Resident Population' Dependent Upon Major Occupational Groupings for Zones of Occupation 





Agriculture and Forestry 


Industry and Handicrafts 


Trade and Commerce 




Number 
dependent 

in 
tliousands 


Percent of 
resident 

population 
in zone 


Percent of 

Austrian 

agricultural 

dependent 


Number 
dependent 

in 
thousands 


Percent of 
resident 

population 
in zone 


Percent of 
Austrian 
industrial 
dependent 


Number 
dependent 

in 
thousands 


Percent of 
resident 

population 
in zone 


Percent of 

Austrian 

commercial 

dependent 


Austria (1937 Boundaries) . . 


1,805 


28 


100 


2,079 


32 


100 


894 


14 


100 


Vienna (Joint Administra- 




















tion) 


7 


(t) 


(t) 


640 


38 


31 


360 


21 


40 


Soviet zone 


813 


41 


45 


565 


28 


27 


188 


9 


21 


British zone 


526 


37 


29 


421 


30 


20 


152 


11 


17 


American zone 


318 


32 


18 


300 


31 


15 


126 


13 


14 


French zone 


141 


29 


8 


153 


32 


7 


68 


14 


8 



Austria: 1939 Resident Population ' — Continued 



1939 Distribution of Major Religions for Zones 
of Occupation 



Austria (1937 Boundaries) . . 
Vienna (Joint Administra- 
tion) 

Soviet zone 

British zone 

American zone 

French zone 



Government and Other Professions 



Number 
dependent 

in 
thousands 



581 

220 
134 
102 

81 
44 



Percent of 
resident 

population 
in zone 



13 

7 
7 
8 
9 



Percent of 

Austrian 

professional 

dependent 



100 

38 
23 

17 

14 

8 



Protestants 



Number in 
thousands 



346 

123 
72 

100 
41 
10 



Percent of 
resident 

population 
in zone 



Percent of 

Austrian 

Protestants 



100 

35 
21 
29 
12 
3 



Catholics 



Number in 
thousands 


5, 


795 


1 


348 


1 


832 


1 


243 




912 




460 



Percent of 
resident 

population 
in zone 



88 

79 
92 
88 
93 
96 



Percent of 
Austrian 
Catholics 



100 

23 
32 

21 
16 

8 



Austria: 1937 Land-Use for Zones of Occupation 





Plowland 


Other Agricultural Land 2 


Forest Land 




Amount in 
square 
miles 


Percent of 
area of 
zone 


Percent of 
Austrian 
plowland 


Amount in 
square 
miles 


Percent of 

area of 

zone 


Percent of 

total of 

such land 


Amount in 
squa-e 
miles 


Percent of 

area of 

zone 


Percent of 
Austrian 
forest land 


Austria (1937 Boundaries) . . 


6,270 


19 


100 


9,730 


30 


100 


12, 117 


37 


100 


Vienna (Joint Administra- 




















tion) 


24 


22 


(t) 


5 


5 


(t) 


14 


13 


(t) 


Soviet zone 


3,876 


38 


62 


2, 135 


21 


22 


3,413 


34 


28 


British zone 


1,232 


11 


20 


3,700 


34 


38 


4,962 


46 


41 


American zone 


1,038 


17 


17 


2,270 


37 


23 


2,078 


34 


17 


French zone 


100 


2 


1 


1, 620 


32 


17 


1, 650 


32 


14 



t Very small amount or percent. 

1 Resident population is the total population minus the conscripts in the armed forces and compulsory labor forces. 

■ Estimated land in gardens, vineyards, orchards, pastures, and mountain meadows; all except a very small amount is grassland. 



International Organizations and Conferences 



Calendar of Meetings 



Council of Foreign Ministers : Meeting of Deputies 
Far Eastern Commission 

Preliminary Meeting of Conference on Health Organization 
Allied-Swiss Negotiations for German External Assets 
Anglo-American Committee of Inquiry- 
Third Conference of American States Members of the International 
Labor OfJice 

Fifth Pan American Railway Conference 

PICAO: 

European Route Service Conference 

Annual Meeting of the Assembly 

Near Eastern Route Service Conference 

International Office of Public Health 

Tlie United Nations : 
Security Council 
Military Staff Committee 

Negotiating Committee on League of Nations Assets 
Special Committee on Refugees and Displaced Persons 
("imnnissions of the Economic and Social Council 
Economic and Social Council 
Conference International Health 
General Assembly 



The dates in the calendar are a;^ of Apr, 14. 



London 


January 18 


Washington 


February 26 


Paris 


March 15-April 5 


Washington 


March 18 


Lausanne 


April 1 


Mexico, D.F. 


April 1 


Montevideo 


April 5 


Paris 


April 24 


Montreal 


May 21 


Cairo 


June 25 


Paris 


April 24 


New York 


March 25 


New York 


March 25 


Geneva 


April 6 


London 


April 8 


New York 


April 20 


New York 


May 25 


New York 


June 19 


Ni'W York 


Septembm- 3 



Activities and Developments 



Far Eastern Commission, At its weekly meet- 
ing on April 10 the Commission elected Mr. O. 
Reuchlin of the Netherlands Delegation and Rear 
Admiral Ramishbily of the Soviet Delegation to 
serve as chairman and deputy chairman, respec- 
tively, of its Committee on Disarmament of Japan. 
The activation of the Committee on Disarma- 
ment makes a total of seven committees that the 
Commission has set up to study various aspects of 
policy for Japan. This number of committees has 



made necessary a greater degree of coordination 
in the work of the Commission, and the Commis- 
sion today approved a policy whereby the chair- 
man of the Steering Committee, Sir Carl Berend- 
sen of New Zealand, is given discretion to decide 
whether reports from committees may be placed 
immediately upon the agenda of the Commission 
or should be reviewed by the Steering Committee, 
and the secretariat shall assume i-esponsibility for 
coordination of documents as to form and style. 

655 



656 



DEPARTMENT OF STATE BULLETIN 



U. S. Responsibilities in FAO 



[Released to the press by the White House April 1] 

Letter sent hy the President to the Secretary of 
Agricultwre 

March 30, 1946 
My Dear Mr. Secrktart : 

In order that the Government of the United 
States may readily fulfill the obligations and re- 
sponsibilities wliich it assumed when it became a 
member of the Food and Agriculture Organiza- 
tion of the United Nations, I wish to see appropri- 
ate interdepartmental relationships established 
among the interested agencies of this government. 
Therefore, I am asking the Secretary of Agricul- 
ture to take the leadership in coordinating the 
work of the various agencies of the Government on 
problems arising from United States participa- 
tion in the Food and Agriculture Organization. 
To assist you in this task, I hereby establish an 
inter-agency committee, with you or your nominee 
as chairman, with representatives from the De- 
partment of State, Treasury, Commerce, Interior, 
Labor, the Federal Security Agency, and the Bu- 
reau of the Budget. The Committee may add rep- 
resentatives of other agencies for such participa- 
tion as may seem advisable to the committee. You 
may designate additional members from your De- 
partment, and you sliould make provision for an 
adequate secretariat for the Committee. 

This inter-agency committee shall have the re- 
sponsibility for ensuring that our Government 
aids to the fullest extent the proper functioning 
of the FAO. In particular, the Gommittee will 
assist in formulating the position which this Gov- 
ernment should take in the various fields of activity 



falling within the general purposes and functions 
of the Food and Agriculture Organization of the 
United Nations. The Department of State will 
continue to provide policy guidance on interna- 
tional political questions and on general organiza- 
tional and administrative questions as they affect 
the relationships of the Food and Agriculture 
Organization to the United Nations and other in- 
ternational organizations. The Executive Com- 
mittee on Economic Foreign Policy will continue 
to consider broad economic foreign policy ques- 
tions including those on commercial policy and 
international commodity policy. The FAO com- 
mittee will, of course, also need to work closely 
with other appropriate inter-agency committees. 

You should also give consideration to the ap- 
pointment of an advisory committee of citizens to 
aid you and the inter-agency committee in con- 
nection with the work of FAO. I am anxious that 
our relationships witli all inter-natioilal organi- 
zations have a firm foundation in wide j^ublic un- 
derstanding and participation. An advisory 
committee of public spirited citizens might well 
be of inestimable value to our Government's full 
participation in the work of the Food and Agri- 
culture Organization of the United Nations. 

I am sending copies of this letter to the heads 
of the departments and agencies who will have 
representatives on the inter-agency committee. 
You should work directly with them in getting the 
connnittee established and functioning. 
Very sincerely yours, 

Harry S. Tri:max 



The United Nations 



Meeting of the Security Council 



DISCUSSION OF SOVIET-IRANIAN MATTER 

Report Transmitted by the Secretary-General to 
the President of the Security Council, April 3, 
1946 

Sir: 

I have the honour to advise you that, in accord- 
ance with the suggestion made by Mr. Byrnes at 
the meeting of the Security Council on 29 March 
19i6 and endorsed by the Council at that meeting, 
I despatched letters to Ambassador A. A. Gromyko 
and to Ambassador Hussein Ala. 

The text of the letters to Ambassador A. A. 
Gromyko and Ambassador Hussein Ala was as 
follows : 

29 March, 1940 
Sir, 

I have the honour to advise you that at its meet- 
ing on 29 March, 1946, the Security Council en- 
dorsed the suggestion made by Mr. Byrnes that 
the President of the Council request the Secretary- 
General to ascertain at once from the Soviet Gov- 
ernment and tlie Iranian Government through 
their representatives the existing status of nego- 
tiations between the two Governments, and report 
to the Council at its meeting on Wednesday, April 
o, and particularly to ascertain from the repre- 
sentatives of the two Governments whether or not 
the I'epoiled witlidrawal of troops is conditioned 
upon the conclusion of agreements between the 
two Governments on other subjects and report. 

Accordingly, I am instructed by the President to 
request that you ascertain the above information 
from your government and communicate it to me 
prior to the meeting of the Security Council on 
Wednesday, April 3, 1946. 

I have the honour [etc.] 

Secretary General 



On 1st April, 1946, 1 received the following com- 
munication from Ghavani Saltaneh, Iranian Prime 
Minister and Foi-eigi\ Minister : 

''Honorable Trygve Lie, Secretary General, United 
Nations. 

Hussein Ala lias been and continues to be fully 
accredited and qualified to represent Iran in the 
matter concerning Iran now before the Council and 
in any other matters concerning Iran which may 
come before the Council requiring Iranian repre- 
sentation. This accreditation will remain valid 
until further notice is given. 

Ghavam Saltaneii 
Iranian Prime Minister and Foreign Minister.'''' 

On 1st April, 1946, Mr. A. Sobolev, Assistant 
Secretary-General, forwarded a copy of the above 
credentials to Ambassador Hussein Ala. 

At 9 : 10 a.m. to-day I received from Ambassador 
A. A. Gromyko a communication, dated 3rd April, 
1 946. I attach a copj'. 

At 9 : 1.5 a.m. to-day I received from Ambassador 
Hussein Ala a communication dated 2nd April, 
1946. I attach a copy. 

Trygve Lie 
Secretary -Gener-al. 

Letters From Ambassador Gromyko ^ 



Sir: 



April 3, WJfG. 



In reply to j^our letter of March 29, in which 
you, under instructions from the President of tlie 
Security Council, request information concerning 
the state of the negotiations between the Soviet 
and Iranian Governments and, in particular, 



' Translated from the Russian. 



657 



658 



DEPARTMENT OF STATE BULLETIN 



whether the withdrawal of Soviet troops from 
Iran is conditional upon the conclusion of an agree- 
ment on other matters between the two Govern- 
ments. I have the honor on behalf of my Govern- 
ment to inform you as follows : 

These negotiations have already led to an un- 
derstanding regarding the withdrawal of Soviet 
troops from Iran; this withdrawal was renewed on 
March 24 last and will be completed within one 
and a half months, as I informed the Security 
Council officially at the meeting of March 26 last. 

Thus, the question regarding the evacuation of 
the Soviet troops which was brought before the 
Security Council on March 18 by the Iranian Gov- 
ernment was settled by the understanding reached 
between the Soviet and Iranian Governments. 

As regards the other questions, they are not con- 
nected with the question of the withdrawal of 
Soviet troops. 

It is well known that the question of an oil con- 
cession or of a mixed joint stock company arose 
m 1944 independently of the question of the evacu- 
ation of the Soviet troops. 
Yours respectfully, 

Andrei A. Gromyko, 

Ambassador 

His Excellency 
Mr. Trygve Lie, 

Secretary General of the United Nations. 



6 April 191,6 

Mu. President, 

On 26 March, when the Security Council pro- 
ceeded to consider the Iranian Government's state- 
ment of 18 March regarding the delay in the with- 
drawal of Soviet troops from Iran, I proposed, 
under instructions from the Soviet Government, 
that this question should not be considered by the 
Security Council. 

I pointed out on that occasion that, under the 
understanding with the Iranian Government, full 
evacuation of the Soviet troops from Iran was 
started on 24 March and would be completed in 
five or six weeks and that in consequence the S?- 
curity Council had no reason to consider the Iran- 
ian question. 



The Security Council, however, did not agree 
with tlie Soviet Government and retained the 
Iranian question on the agenda. In the meantime 
the Syviet-Iranian negotiations continued and, as 
is known from the joint Soviet-Iranian commu- 
nique published on 4 April, an understanding on 
all points was reached between the Soviet and the 
Iranian Governments. 

This has fully confirmed the accuracy of the 
Soviet Government's statement of 26 March and 
the absence of any reason for bringing the Iranian 
question before the Security Council for consid- 
eration. 

The Soviet Government, moreover, cannot ig- 
nore the resolution adopted by the Security Council 
on 4 April. Under this resolution the Security 
Council decided to continue the considei'ation of 
the Iranian question on 6 May despite the fact 
that on o April the Soviet Government stated that 
the question of the evacuation of Soviet troops 
had been settled by an understanding reached be- 
tween the Soviet and the Iranian Governments. 
Such a resolution of the Security Council might 
have been well-founded if the position in Iran had 
threatened international peace and security, as 
provided in Article 34 of the Charter of the United 
Nations. 

Under the Charter, the Security Council may in- 
vestigate any dispute or any situation which might 
endanger the maintenance of international peace 
and security. It is, however, quite obvious that in 
fact such a i:)osition did not and does not now exist 
in Iran, so that the Security Council had no reason 
to give further consideration to the Iranian ques- 
tion on 6 May. 

Accordingly tlie above-mentioned resolution of 
the Security Council of 4 April is incorrect and 
illegal, being in conflict with the Charter of the 
United Nations. 

For the above-mentioned reasons the Soviet 
Government insists that the Iranian question 
should be removed from the agenda of the Security 
Council. 

I have the honour [etc.] 

Andrei A. Gromyko, 

Amba^ssador 

His Excellency, 
Dr. Quo Tai-Chi, 

President of the Sccurifij Coiincil 



APRIL 21, 1946 



659 



Letters From the Iranian Ambassador to the 
Secretary-General 

April 2, 1946. 
Sik: 

As stated in my letter of acknowledgment to 
you of March 30, 1946, I did not fail to cable to 
my Government, on the evening of March '29th. 
the complete test of your communication of the 
same day, and I requested that an early answer 
be sent to the two questions suggested by Secre- 
tary of State Byrnes and endorsed by the Security 
Council. 

I am now instructed to convey to you, for com- 
munication to the Security Council at its meeting 
of Wednesday, April 3rd, the following reply to 
the two questions : 

1. You first ask as to "the existing status of 
negotiations between the two Governments." 

With respect to the interference in the internal 
affairs of Iran, the subject matter of the first 
dispute, negotiations have taken place pursuant 
to the resolution of the Security Council of Jan- 
uary 30, 1946. As to these negotiations, I sub- 
mitted a report to the Council at its meeting on 
March 27, 1946. The negotiations pursuant to 
the resolution of January 30, 1946, have achieved 
no positive results, and Soviet agents, officials and 
armed forces are continuing to interfere in the 
internal affairs of Iran. They are still preventing 
the Government of Iran from exercising any 
authority in the Province of Azerbaijan. 

Regarding the withdrawal of Soviet troops 
from Iran, there has been and there can be no 
negotiation. 

2. Your second question is "whether or not the 
reported withdrawal of troops is conditioned upon 
the conclusion of agreements between the two Gov- 
ernments on other subjects." 

The best way to answer is to give you a simple 
and exact account of the conversations that have 
taken place in Teheran since the arrival there of 
the new Soviet Ambassador. 

On March 24th, the day before the opening 
meeting of the Security Council, the Soviet Am- 
bassador called on the Prime Minister of Iran 
and handed him three memoranda. One was an 
announcement that the evacuation of the Eed 
Army from Iran would begin March 24th and last 
five to six weeks. In this memorandum there was 



no mention of any condition being attached to the 
withdrawal of the troops. The second memoran- 
dum related to the formation of a joint Iranian- 
Soviet Corporation for the extraction of oil. The 
third memorandum dealt with Azerbaijan and sug- 
gested a form of autonomous government. 

Within a few hours aftfer delivering the three 
memoranda, the Soviet Ambassador again called 
on the Prime Minister and, on the basis of a tele- 
gram he had received from Moscow, orally con- 
firmed the promise to evacuate Iran, but on the 
condition that no unforeseen circumstances should 
occur. When the Iranian Premier objected to this 
proviso and asked for explanations, the Soviet 
Ambassador did not give a convincing reply. 
Three days later the Iranian Prime Minister again 
referred to this proviso and said that the evacua- 
tion of the Soviet troops must be unconditional, 
and that he could not agree to the Soviet proposals 
on the subjects of oil and Azerbaijan. To this the 
Soviet Ambassador responded that if agreement 
could be reached on these other two subjects, there 
would be no further cause for anxiety and no 
unforseen circumstances would take place. This 
statement has not been further clarified. 

AVith respect to the other two memoranda, the 
Prime Minister has outlined his views to the Soviet 
Ambassador. His position is : 

(a) That as the status of the Province of Azer- 
baijan, like that of all the other Provinces in Iran, 
is I'egulated hy the Iranian Constitution and the 
law on Provincial Councils, it is an internal matter 
with which the Iranian Government will deal ; 

(b) That the formation of a stock company with 
joint participation by Iran and the Soviet Union is 
a matter to be submitted for approval to the next 
Parliament after the Soviet troops have been with- 
drawn from Iran and elections can be held lawfully 
for the organization of the 15th Legislature. 

This is the present state of the discussions on the 
subject of oil and the future status of Azerbaijan. 
According to the latest information from my Gov- 
ernment dispatched to me on April 1st, no under- 
standing had been arrived at and no agi-eement had 
been made. 

The Prime Minister of Iran emphatically states 
that he has not accepted and cannot accept any 
condition whatsoever being attached to the com- 
plete withdrawal of the Red Army from the whole 



660 



DEPARTMENT OF STATE BULLETIN 



of Jriin. These forces should have lieeu iincoiuli- 
tionally removed from Iran on or before ]Mardi 
2nd last. It is our position, as explained by me at 
the meeting of the Security Council on Friday 
last, that the evacuation of the whole of Iran by 
Soviet forces cannot properly be made dependent 
u})on anj' conditions, foreseen or unforeseen. 

In closing permit me to repeat that, in referring 
these disputes to the Council, the Iranian Govern- 
ment is animated by no feeling of hostility toward 
the Soviet Union. It is our hope that the Council 
will find a just solution which will promote 
friendly relations in the future. 
I have the honour [etc.] 

Hussein Ala 
Iranian Ambassador and Representative 

of Iran Before the Security Council 



New York, April 'J, 191,6. 

SiH : 

Permit me to thank you for your note of 8 April, 
194G, forwarding for my information a copy of 
Mr. Gromyko's letter dated 6 April 1946, request- 
ing that the cjuestions brought to the attention of 
the Security Council of Iran be removed from the 
agenda. 

I am instructed to state that the position of the 
Iranian Goveiuiment remains the same as stated 
to the Security Council in the session of 4 April 
1940. It is the desire of my Govermnent that the 
matters referred by Iran to the Security Council 
remain on its agenda as provided by the resolution 
adopted on 4 April 1946. 

I have the honour [etc.] 

Hussein Ala 
Iranian Ambassador and Representative 

of Iran before the Security Council 



REQUESTS TO CONSIDER ACTIVITIES OF FRANCO REGIME 



Letters From the Polish Ambassador to the 
Secretary-General 

April 8, 191,6. 
My Dear Mr. Secretary General : 

I should like to inform you that I have received 
instructions from my Government to draw the 
attention of the Security Council to a situation of 
the nature referred to in article 34 of the Charter. 
This situation is due to international frictions re- 
sulting from the existence and activities of the 
Franco regime in Spain. 

In view of the fact that information about it has 
already appeared in press dispatches from War- 
saw, I want to inform you that in the very next 
days I shall present you with a request to put this 
matter on the agenda of the Security Council. 
Very respectfully yours, 

Oscar Lange 
Polish Ambassador 

April 1946. 
My Dear Mr. Secretary General, 

On February 9th, l!)4fi the General Assembly 
of the United Nations without a dissenting vote 
condemned the Fascist regime in Spain as having 
been founded "with the support of the Axis 
powers" and banned it from membership in the 
United Nations on the grounds that "it does not 



possess by reason of its origins, its nature, its 
record and its close association with aggressor 
states the qualifications necessary to justify ad- 
mission." The Assembly also recommended that 
the United Nations take this resolution into ac- 
count "in conducting their future relations with 
Spain." 

Since then a series of developments has made 
it clear that the activities of the Franco govern- 
ment have already caused international friction 
and endangered international peace and .security. 
As a consequence the French government was com- 
pelled on February 26th, 1946, to close the fron- 
tiers between France and Spain. These frontiers 
continue to be closed. One day later the Franco 
government ordered the concentration of troops 
at the border of France. 

Moreover, the Franco regime has given haven 
to the largest aggregation of Nazi assets and per- 
sonnel, it has given refuge to a large number of war 
criminals and Nazi leaders who continue their ac- 
tivities from Spanish territory, it allows and pro- 
motes scientific research by Gei'man scientists en- 
gaged in devising new means of warfare. 

In view of the foregoing, the situation in Spain 
must be considered not as an internal affair of that 
country but as a concern of all the United Nations. 
Article 2 of the Charter in jiaragraph (> provides 
that the Ignited Nations Organization shall insure 



APRIL 21, 1946 



661 



tliut states not members of the United Nations act 
in atrordance witii tlie principles of tlie or<i;ani'za- 
tion so far as may be necessary for the maintenance 
of international peace and security. The situa- 
tion in Spain makes the application of this pro- 
vision imperative. 

The Polish delegation, therefore, under Articles 
34 and ;>;") of the Charter, requests the Security 



Council to place on its agenda the situation arising 
from the existence and activities of the Franco re- 
gime in Spain for consideration and for adoption 
of such measures as ai'c pi'ovided for in the 
Charter. 

Very sincerely yours, 

Oscar Lange 
Delegate of Poland 



Provisional Rules of Procedure of the Security Councir 



I. MEETINGS 

Rulel 

Meetings of the Security Council shall, with the 
exception of the periodic meetings referred to in 
Rule 4. be held at the call of the President at any 
time he deems necessary, but the interval between 
meetings shall not exceed fourteen days. 

Rule 2 

The President shall call a meeting of the Security 
Council at the request of any member of the 
Security Council. 

Rule 3 

The President shall call a meeting of the Security 
Council if a dispute or situation is brought to the 
attention of the Security Council under Article 35 
or under Article 11 (3) of the Charter, or if the 
General Assembly makes reconiiiiendations or re- 
fei-s any question to the Sectirity Council uiuler 
Article 11 (-2). or if the Secretary-General brings 
to the attention of the Security Council any matter 
under Article !)9. 

Rule 4 

Periodic meetings of the Security Council called 
for in Article 28 (2) of the Charter shall be held 
twice a year, at such times as the Security Coinicil 
may decide. 

Rules 

Meetings of the Security Council shall normally 
be held at the seat of the United Nations. 

Any member of the Security Council or the Sec- 
retary-General may propose that the Security 
Council should meet at another place. Should the 
Security Council accept any such proposal, it shall 

(!!)I)7S5 — 4« 3 



decide upon the i)lace, and the period during which 
the Council shall meet at such place. 

II. AGENDA 

Rule 6 

The Secretary-General shall immediately bring 
to the attention of all representatives on the Se- 
curity Council all conuuunications from States, 
organs of the United Nations, or the Seci'etary- 
General concerning any matter for the considera- 
tion of the Security Council in accordance with the 
provisions of the Charter. 

Rule? 

The Provisional Agenda for each meeting of the 
Security Council shall be drawn up by the Secre- 
tary-General and approved by the President of the 
Security Council. 

Only items which have been brought to the at- 
tenti(m of the representatives on the Security 
Council in accordance with Rule 6, items covered 
by Rule 10, or matters which the Security Council 
has previously decided to defer, niay be included 
in the Provisional Agentla. 

Rules 

The Provisional Agenda for a meeting shall be 
communicated by the Secretary-General to the rep- 
resentatives on the Security Council at least three 
days before the meeting, but in urgent circum- 
stances it may be communicated simultaneously 
with the notice of the meeting. 

'Adopted by the Security Council at its first meeting and 
amended at its thirty-first meeting, April 9, 1946. 



662 



DEPARTMENT OF STATE BULLETIN 



Rule 9 

The first item of the Provisional Agenda for 
each meeting of the Security Council shall be the 
adoption of the Agenda. 

Rule 10 

Any item of the Agenda of a meeting of the 
Security Council, consideration of which has not 
been completed at that meeting, shall, unless the 
Security Council otherwise decides, automatically 
be included in the Agenda of the next meeting. 



Rule 14 

Any Member of the United Nations not a mem- 
ber of the Security Council and any State not a 
Member of the United Nations, if invited to par- 
ticipate in a meeting or meetings of the Security 
Council, shall submit credentials for the repre- 
sentative appointed by it for this purpose. The 
credentials of such a representative shall be com- 
municated to the Secretary-General not less than 
twenty-four hours before the first meeting which 
he is invited to attend. 



Rule 11 

The Secretary-General shall communicate each 
week to the representatives on the Security Coun- 
cil a summary statement of matters of which the 
Security Council is seized and of the stage reached 
in their consideration. 



Rule 15 

The credentials of representatives on the Secu- 
rity Council and of any representative appointed 
in accordance with Rule 14 shall be examined by 
the Secretary-General who shall submit a report 
to the Seciu'ity Council for approval. 



Rule 12 

The Provisional Agenda for each periodic meet- 
ing shall be circulated to the members of the Secu- 
rity Council at least twenty-one days before the 
opening of the meeting. Any subsequent change 
in or addition to the Provisional Agenda shall be 
brought to the notice of the members at least five 
days before the meeting. The Security Council 
may, however, in urgent circumstances, make addi- 
tions to the Agenda at any time during a periodic 
meeting. 

The provisions of Rule 7 paragraph 1, and of 
Rule 9, shall apply also to periodic meetings. 



Rule 16 

Pending the approval of the credentials of a 
representative on the Security Council in accord- 
ance with Rule 15, such representative shall be 
seated provisionally with the same rights as other 
representatives. 

Rule 17 

Any representative on the Security Council, to 
whose credentials objection has been made within 
the Security Council, shall continue to sit with the 
same rights as other representatives until the 
Security Council has decided the matter. 



III. REPRESENTATION AND CREDENTIALS 

Rule 13 

Each member of the Security Council shall be 
represented at the meetings of the Security Coun- 
cil by an accredited representative. The creden- 
tials of a representative on the Security Council 
shall be communicated to the Secretary-General 
not less than twenty-four hours before he takes 
his seat on the Security Council. The Head of the 
Govermnent or Minister for Foreign Affairs of 
each member of the Security Council sliall be 
entitled to sit on the Security Council witliout 
submitting credentials. 



IV. PRESIDENCY 

Rule 18 

The Presidency of the Security Council shall be 
lield in turn by the members of the Security Coun- 
cil in the English alphabetical order of their names. 
Each President sliall hold office for one calendar 
month. 

Rule 19 

The President shall preside over the meetings 
of the Security Council and. under tlie authority 
of the Security Council, shall represent it in its 
cnpacity as an organ of the United Nations. 



APRIL 21, 1946 



663 



V. SECRETARIAT 



Rule 20 



The Secretary-General shall act in that capacity 
in all meetings of the Security Council. The 
Secretary-General may authorize a deputy to act 
in his place at meetings of the Security Council. 

Rule 21 

The Secretary-General shall provide the staff 
required by the Security Council. This staff shall 
form a part of the Secretariat. 

Rule 22 

The Secretary -General shall give to representa- 
tives on the Security Council notice of meetings 
of the Security Council and of its commissions 
and committees. 

Rule 23 

The Secretai'y-General shall be responsible for 
the preparation of documents required by the Se- 
curity Council and shall, except in urgent cir- 
cumstances, distribute them at least forty-eight 
hours in advance of the meeting at which they 
are to be considered. 

VI. CONDUCT OF BUSINESS 

Rule 24 

Any reconnnendation to the General Assembly 
regarding the appointment of the Secretary-Gen- 
eral shall be discussed and decided at a private 
meeting. 

Rule 25 

The Security Council may invite members of 
the Secretariat or any person, whom it considers 
competent for the purpose, to supjDly it with in- 
formation or to give their assistance in examin- 
ing matters within its competence. 

VII. LANGUAGES 

Rule 26 

The rules adopted at the San Francisco Con- 
ference regarding languages shall prevail until 
otherwise decided. 

Vm. VOTING 

Rule 27 

Voting in the Security Council shall be in ac- 
cordance with the relevant Articles of the Chai'ter 



and of the Statute of the International Court of 
Justice. 

IX. PUBLICITY OF MEETINGS 

Rule 28 

Unless it decides otherwise, the Security Council 
shall meet in public. 

Rule 29 

At the close of each private meeting, the Security 
Council shall issue a communique through the 
Secretary-General. 

Rule 30 

The verbatim record of public meetings and the 
documents relating thereto shall be published as 
soon as possible. 

X. RECORDS 

Rule 31 

Subject to the provisions of Rule 32, the Secre- 
tary-General shall kee^j a verbatim record of all 
meetings and shall send it as soon as possible to 
the representatives on the Council, who shall within 
forty-eight hours inform the Secretariat of any 
corrections they wish to have made. 

Rule 32 

The Security Council may decide that, for a pri- 
vate meeting, a summary record in a single copy 
shall alone be made. This record shall be kept by 
the Secretary-General, and the representatives of 
states who have taken part in the meeting may 
have corrections made in their own speeches within 
a period of ten days. On the expiry of this period 
the record shall be considered as approved, and 
shall be signed by the Secretary-General. 

XI. ADMISSION OF NEW MEMBERS OF THE 
UNITED NATIONS 

Rule 33 

Any state which desires to become a Member of 
the United Nations shall submit an application to 
the Secretary-General. This application shall be 
accompanied by a declaration of its readiness to 
accept the obligation contained in the Charter. 



664 



DEPARTMENT OF STATE BULLETIN 



Rule 34 

The application for membership in the United 
Nations shall be placed bv the Seci'etary-Genei-al 
before the Security Council, which shall decide 
whether in its judgment the applicant is a peace- 
lovinp state and is able and willing to carry out the 
obligations contained in the Cliarter. 

Rule 35 

Should the Security Council decide to recom- 
mend the applicant state for membership in the 
United Nations, this reconnnendation shall be 
placed before the General Assembly by the Secre- 
tary-General. 



ANNEX 

Provisional Procedure for Dealing With Com- 
munications From Private Individuals and 
Non-Governmental Bodies 

A. A list of all comnmnications from private 
individuals and nt)n-governmental bodies relating 
to matters of which the Security Council is seized 
shall be circulated to all representatives on tlie 
Security Council. 

B. A copy of any conununication on the list shall 
be given by the Secretariat to any representative on 
the Security Council at his request. 



Special Committee on Refugees and Displaced Persons 



[Released to the press by U. N. April 6] 

The Special Committee on Refugees and Dis- 
l>laced Persons, which started work in London on 
April 8, is composed of the following '20 member 
nations : 

Australia, Belgium, Brazil, Byelorussia, Can- 
ada, China, Colombia, Czechoslovakia, Dominican 
Republic, France, Lebanon, Netherlands, New 
Zealand, Peru, Poland, Ukraine, U.S.S.R., United 
Kingdom, United States, and Yugoslavia. 

This Committee was established by the Eco- 
nomic and Social Council of the United Nations 
on February Ifi, 104(i in London, following a reso- 
lution passed by the General Assembly on Feb- 
ruary 13, 1946. 

The General Assembly recommended that the 
committee should take into consideration three 
principles: first, that the problem is international 
in scope and nature ; second, that no genuine refu- 
gees or displaced persons who have finally and 
definitely, in complete freed(mi, and after receiv- 
ing full knowledge of the facts, expressed valid 
objections to returning shall be compelled to re- 
turn, but shall become the concern of whatever 
international body finally emerges ; third, that the 
main task concerning displaced i)ersons is to en- 
courage and assist their early return. The reso- 
lution added that no action was to be taken that 



might interfere with the surrender of war crim- 
inal and traitors. It also excluded from its pro- 
visions Germans being transferred to Germany 
from occupied territories or from other states to 
which they had fled. 

The London Committee will have to deal with 
a :^5-year-old problem, first recognized when, in 
1921, Fridtjof Nansen was appointed High Com- 
missioner of the League of Nations for Refugees. 
The subject has already occupied two full plenary 
meetings of the General Assembly of the LTnited 
Nations in London, as well as a great deal of the 
time of a special committee during the meetings 
of both the Preparatory Commission and the Gen- 
eral Assembly. Mrs. Eleanor Roosevelt played 
a prominent part in both the work of Special Com- 
mittee ;5 and the (ieneral Assembly debate. 

In 1921 there were approximately 2,;)00,()0() 
refugees; 700,000 were still in tlie care of the Nan- 
sen International Refugees Committee in 19.")(), not 
counting the refugees who from 1933 onward came 
from Germany, for whom the League of Nations 
had appointed a special high commissioner. Tliere 
are no official figures available on tlie pi-eseiit num- 
ber f)f refugees. 

In July 1938, on the initiative of the United 
States, 32 countries met in p]vian, France, and 
constituted an all-embracing "Intergoverniiiental 
Committee on Refujiees" which met in London in 



APHIL 21, 1946 



665 



August of the same year. In November li>4r> tlie 
Committee met in Paris and authorized its Execu- 
tive Committee to negotiate for tlie absorption of 
its functions bj' the Economic and Social Council 
of the United Nations. It will however continue 
to function pending the result of the United Na- 
tions deliberations. 

When UNRRA was established iu 194;i it took 
over the responsibility for displaced persons. Ref- 
ugees who do not intend to return to their original 
homes remain the responsibility of the Intergov- 
ernmental Committee. 

The discussion in London clearly showed the two 
sides of the problem : the humanitarian and the 
political. AVhile the humanitarian side met with 
general approval, a discussion developed on the 
j)olitical aspect between those who considered that 
the problem was no longer of the first importance, 
as the basic reason which prevented refugees from 



returning to their own count lies had now disap- 
peared, and those who believed that there were still 
large numbers of persons who were neither war 
criminals nor traitors, but who still did not feel 
able, for political reasons, to return home. 

Finally a resolution was adopted which referred 
the problem to the Economic and Social Council, 
after recognizing the immediate urgency of the 
problem and emphasizing the necessity of dis- 
tinguishing between genuine refugees and dis- 
placed persons, on the one hand, and war criminals, 
quislings, and traitors on the other. 

The Economic and Social Council's report on the 
work of the Coumiittee must be communicated by 
the Secretary-General to the members of the 
United Nations not latei- than 45 days before the 
convening of the second part of the first session of 
the General Assembly, that is to say, no later than 
July 21, 194(5. 



BUNN Continued from page 648. 



the negotiation of specific reductions of trade bar- 
riers. It is of course hoped that the two meetings 
can occur at the same time and in the same city. 
No date has yet been fixed. 

The negotiations for the reduction of trade 
barriers will lie conducted, so far as the United 
States is concerned, under the Trade Agreements 
Act. They will be preceded by public notice and 
regul.ir hearings before the Committee for Reci- 
procity Information under that act. The tariff 
concessions to be oti'ered by the United States will 
be careftdly considered from the point of view of 
the whole national interest, in the light of what- 
ever may be developed at the hearings. Since this 
will take a considerable time, it is not now pos- 
sible to state v.hen the international negotiations 
can commence. 

The success of these negotiations will depend 
upon the willingness of the participating coun- 
tries, including the United States, to make sub- 
stantial cuts in the many barriers which they 
maintain against each other's ti'ade. Aiiy reduc- 
tion in our tariff will, of course, be within the 
authority granted by the Trade Agreements Act. 



In the meantime, the Preparatory Committee 
will be proceeding with the drafting of a charter. 
The Proposals state the general lilies on which 
we hope it will proceed. If its work is successful 
and if in the meantime real reductions of trade 
barriers have been negotiated by important coun- 
tries, the general Conference can meet in an at- 
mosphere of real accomplishment. It will then 
be for it to carry the work forward. 

This International Trade Organization will sub- 
stantially complete the main economic units of the 
United Nations structure. The International 
Bank, the International Monetary Fund, the or- 
ganizations for Food and Agriculture, Labor, 
Civil Aviation, and Trade, and tlie Economic and 
Social Council itself, cover the nuijor economic 
fields in which the interests of nations cross. By 
working together in these fields, and in any others 
that the future may disclose, the United Nations 
can consolidate their partnership in the material 
affairs upon which the connnon welfare of their 
people rests. That partnership is the material 
foundation of their political collaboration in all 
fields, on which in turn the preservation of the 
peace dejDends. 



The Record of the Week 



U. S. Memorandum to American Republics 
on Argentine Situation 



[Released to the press April 8] 

In the consultation among the other American 
republics on the Argentine situation, the Govern- 
ment of the United States submitted the following 
memorandum to the other American republics ex- 
cept Argentina under date of Api-il 1. Although 
all the replies are not yet in, a majority of the 
Governments have already informed us of their 
concurrence. 

Text of niemorandum 

1. In October 1945 this Government within the 
framework established by the Inter-American 
System initiated consultation with the other 
American republics concerning the Argentine 
situation and in connection therewith issued a 
memo now commonly known as the Blue Book.^ 

2. In initiating such consultation the United 
States was not animated by any feeling of hostility 
towards the Argentine people. On the contrary 
it was the desire of the United States to strengthen 
the friendly relationships between the people of 
United States and the people of Argentina by 
bringing into the open those conditions which liad 
caused the Government of the United States great 
embarrassment and concern in its relations with 
the then Government of Argentina. It was also 
the desire of the United States that the other 
American republics should know the conditions 
M-hicli caused this embarrassment and concern so 
that it would be clear that the United States was 
acting in defense and not in derogation of the 
principles of the inter-American system. 

As Secretary of State Byrnes stated in his ad- 

^ Department of State publication 2473. 
^ BuLLimN of Nov. 4, 1945, p. 709. 

'Apr. 1, 1946. The replies referred to in this sentence 
concerned the Blue Book. 

666 



dress before the Herald Tribune Forum on Octo- 
ber 31, 1945 : - 

"We believe other nations have a right to know 
of our own deep attachment to the principles of 
democracy and human rights, our profound belief 
that governments must rest upon the free consent 
of the governed ; and our firm conviction that peace 
and Understanding among nations can best be 
furthered by the free exchange of ideas. 

"While we adhere to the policy of non-inter- 
vention, we assert that knowledge of what other 
people are thinking and doing brings understand- 
ing; and understanding brings tolerance and a 
willingness to cooperate in the adjustment of 
differences. . . . 

"The policy of non-intervention in internal af- 
fairs does not mean the approval of local tyranny. 
Our policy is intended to protect the right of our 
neighbors to develop their own freedom in their 
own way. It is not intended to give them free 
rein to plot against the freedom of others. . . . 

"If, tlierefore, there are developments in any 
country within the inter- American system which, 
realistically viewed, threaten our security, we con- 
sult with other members in an effort to agree upon 
common policies for our mutual protection." 

3. The consultation respecting the Argentine 
situation initiated by the United States raised the 
question whether the proposed inter- American 
Mutual Assistance Treaty should be negotiated 
with the participation of the Farrell Government 
of Argentina in view of its failure to fulfill its 
obligations and commitments under the inter- 
American system. 

4. To date,^ in the consultation respecting the 
Argentine situation initiated by the Government 
i)f the United States, replies have been received 



AI'RIL 21, 1946 



667 



from less tluin half of the other Americiui re- 
publics. Some of these answers entirely agree 
with views expressed by the United States; others 
emphasize the changed position resulting from 
the recent election. All of the Governments so 
far heard from join with the United States in their 
dedication to the following principles and ob- 
jectives: 

(1) The "unity of the peoples of America ).« 
indivisible" and "the Argentine nation is and al- 
ways has been an integral part of the union of the 
Amei'ican republics." 

(•2) The security of the Hemisphere is of para- 
nioiuit importance and will be materially enhanced 
by the negotiation and signature of a Mutual As- 
sistance Treaty at the projected Rio de Janeiro 
Conference. 

;■). While it is not clear that the election will re- 
move the conditions which prompted the Govern- 
ment of the United States to initiate a consulta- 
tion on the Argentine situation, the Government 
of the United States does not believe that the 
people of Argentina intended to approve the con- 
tinuance of conditions which would threaten the 
safety of the inter- American system. 

6. A new constitutional govermnent will soon be 
inaugurated in Argentina. The Government of 
the United States feels that it expresses the sen- 
timents of all its sister governments in declaring 
its fervent hope that when that newly elected 
government takes office and its congress meets, it 
will give prompt implementation by positive acts 
to its solemn commitments under the Inter- Amer- 
ican System, in particular, those undertaken in 
the Final Act of the Inter-American Conference 
on Problems of War and Peace.* Those under- 
takings are plain and unequivocal. They I'equire 
the elimination from this Hemisphere of Axis 
influences which have threatened the security of 
the inter-American system. 

Were such unequivocal and sustained perform- 
a)ice to ensue, the road would then be open to that 
''complete unity of the peoples of America", and 
the negotiation and signature of a Mutual As- 
sistance Pact. But there must be deeds and not 
merely promises. 

' Final Act of the Inter-American Conference on Prob- 
lems of War and Peace, Mexico City. February-Marcb. 
1945 (Pan American Union, Washington, D.C., 1945). 

° For text of the Act of Chapiiltppee, see Bulletin of 
Mar. 4, 1945. p. 339. 



7. The military assistance commitments under- 
taken by the United States under the Act of Cha- 
pultepec ■' will terminate with the expiration of 
the War Powers Act in this country. It is to the 
benefit of all of the American republics that a 
treaty of mutual assistance be negotiated and 
signed at the earliest possible date. 

To do this, it is proposed that at the next meet- 
ing of the Governing Board of the Pan American 
Union a conmiittee of its members be appointed 
to coordinate the five draft treaties, which have 
been under consideration, together with such 
other suggestions as may then be received, into a 
single document. 

This document would in due coui'se be presented 
to the Rio Conference. 

We hope the Conference can be called to meet 
after the new Government of Argentina has been 
installed and has had a reasonable time to comply 
with the promises made at Mexico City. When it 
has complied we feel satisfied the American re- 
publics will welcome that Government's participa- 
tion in the treaty of mutual assistance. 



Continuation of Preparations 
for Atomic-Bomb Tests 

STATEMENT BY THE PRESIDENT 

[Released to the press by the White House April 12] 

Preparations for the atomic-bomb tests in the 
Pacific are being pressed forward, and I have be^n 
assured that the present target dates for the explo- 
sions will be met. I am in complete agreement 
with the Joint Chiefs of Staff and the Secretary of 
War and the Secretary of the Navy in their view 
that these tests are of vital importance in obtaining 
information for the national defense. Without 
the information from these experiments, designers 
of ships, aircraft, and military ground equipment, 
as well as our strategists, tacticians, and medical 
officers, will be working in ignorance regarding the 
effects of this revolutionary new weapon against 
naval and other targets not previously exposed to 
it. These tests, which are in the nature of a labora- 
tory experiment, should give us the information 
which is essential to intelligent planning in the 
future and an evaluation of the effect of atomic 
enerjiv on our defense establishments. 



668 



DEPARTMENT OF STATE BULLETIN 



Report on Denaturing of 
Atomic Explosives 

[Released to the press April 9] 

The Department of State, on March 28, 1946, 
made public A Report on the Intrrnational Con- 
trol of Atomic Energy (Department of State 
publication 2498) In the public discussion of 
tlie Eeport questions liave arisen with respect 
to the denaturing of materials utilized in atomic 
explosives. 

After consultation with the Department of 
State, Maj. Gen. L. R. (iroves called together a 
grouj), representative of the outstanding scientists 
connected with the Manliattan Project during the 
development of the atomic boml) and all of whom 
are still connected with the project on either a 
full-time or consulting basis. This gi-ouj) has met 
and has just completed a conference in which the 
measure of safety afforded by the use of dena- 
turants was discussed. They preitared among 
other papers a report which can be released with- 
out jeopardizing security. Their report is as 
follows : 

"The possibility of denaturing atomic explo- 
sives has been brought to public attention in a 
recent Report released by the State Department on 
the international control of atomic energy. Be- 
cause, for .security reasons, the technical facts 
could not be made public, there has been some 
))ublic misunderstanding of what denaturing is, 
and of the degree of safety that it could atl'ord. 
We have thought it desirable to add a few com- 
ments on these points. 

"The Report released by the State Department 
Ijroposes that all dangerous activities in the field 
of atomic energy be carried out by an interna- 
tional authority, and that operations which by the 
nature of the plant, the materials, the ease of 
inspection and control, are safe, be licensed for 
private or national exploitation. The Report 
points out that the possibility of denaturing ex- 
l^losive materials so that they 'do not readily lend 
themselves to the making of atomic explosives' 
nniy contribute to the range of licensable activi- 
ties, and to the overall flexibility of the proposed 
controls. The Report does not contend nor is it in 
fact true, that a system of control based solely on 
denaturing could provide adequate safety. 

"As the Report states, all atomic explosives are 
based on the raw materials uranium and thorium. 



In every case the usefulness of the material as 
an atomic ex]ilosive depends to some extent on 
different proi)erties than those which determine 
its usefulness for peacetime application. The 
existence of these differences makes denaturing 
possible. In evei-y case denaturing is accom- 
plished by adding to the explosive an isotope, 
which has the same chemical properties. These 
isotopes cannot be separated by ordinary chemical 
means. The separation requires plants of the 
same general type as our plants at Oak Ridge, 
though not of the same magnitude. The construc- 
tion of such plants and the use of such plants 
to process enough material for a significant num- 
ber of atomic bombs would probably require not 
less than one nor more than three years. Even 
if such plants are in existence and ready to operate 
some months must elapse before bomb production 
is significant. Hut unless there is reasonable as- 
.surance that such plants do not exist it would be 
unwise to rely on denaturing to insure an interval 
of as much as a year. 

"For the various atomic explosives the denatur- 
ant has a ditlereiit effect on the explosive properties 
of the materials. In some cases denaturing will 
not completely preclude making atomic weapons, 
but will reduce their effectiveness by a large factor. 
The effect of the denaturant is also different in the 
peaceful application of the materials. Further 
technical information will be required, as will also 
a much more complete experience of the peacetime 
uses of atomic energy and its economics, before 
precise estimates of the value of denaturing can 
be formulated. But it seems to us most probable 
that within the framework of the proposals ad- 
vanced in the State Dei)artinent Report denaturing 
will play a heljjful part. 

"In conclusion we desire to emphasize two points, 
both of which have been challenged in public dis- 
cussion. 1. Without uranium as a raw material 
there is no foreseeable method of releasing atomic 
energy. With uranium, thorium can also be used. 
•1. Denaturing, though valuable in adding to the 
flexibility of a sy.stein of controls, cannot of itself 
eliminate the dangers of atomic warfare. 



L. W. Alv.vrez 

R. F. Bacher 

M. Bexeuict 

H. A. Betiie 

A. H. C ojn'TON 

Fariuxotox Daniels 



J. R. Oi'pexheimer 

J. R. RUHOFF 

G. T. Seaborc. 
F. H. SPF.nniNG 
C. A. Thomas 
W. H. Zixn" 



APRIL 21, 1946 



669 



Yugoslav Reply to U. S. Note on General Mikhailovich 



[Released to the press April 12] 

The D.^purtnient of State has received a tele- 
gram dated April a from the Ameritaii Charge 
d'Aifaires at Belgrade. Mr. Harold Shaiitz, trans- 
mitting the text of a note from the Yugoslav For- 
eign Office, dated April 1 and received liy Mr. 
Sliantz on April 5. The note was in reply to the 
note of the United States Government of March 
28^ delivered by the Charge on the same date. 

Text of Note 

The Ministry of Foreign Affairs of the Federa- 
tive Peoples RejHiblic of Yugoslavia present their 
compliments to the Embassy of the United States 
of America and with reference to latter note of 
March 28 last, have the honour to state as follows : 

The Government of the FPRY regret that they 
are unable to comply with the desire of the Gov- 
ernment of the USA that officers of the American 
Army who had been at headquarters of Draza 
Mihailovich should, as witnesses, participate in the 
investigations and on the trial in the case of the 
traitor Draza Mihailovich. It is solely up to the 
Military court, which will deal with this case, to 
summon any witness whom it might deem neces- 
sary, and the (iovernment of the FPEY are not 
entitled to exercise any influence upon the courL 

Furthermore, the Government of the FPRY 
cannot agree with the contents of the note deny- 
ing the treacherous attitude of Draza Mihailovich 
during the war. It is most surprising tliat after 
all that has up to now been published and ascer- 
tained of the treason and collaboration of Draza 
Mihailovich with the Germans in committing 
number of crimes upon our people, the note is over- 
looking these facts, and expressed an opinion which 
is not correct, since on the numerous trials of Draza 
Mihailovich treacherous officers' evidence was 
given, absolutely freely, confirming all those docu- 
ments on the treason of Draza Mihailovich which 
are in possession of the Government of FPRY. 
This treason is being confirmed by tens of thou- 
sands of fighting men of the Yugoslav Army. This 
treason is being confirmed by tens of thousands of 
living witnesses whose relatives or goods perished 



by action of Draza Mihailovich and his men. 
After all, this treason confirms Draza Mihailovich 
himself, too. 

Besides it would be a great historical mistake 
to carry on declaring that Draza Mihailovich 
started the National Resistance against the Ger- 
mans in Yugoslavia in 1!)41 as it is stated in the 
note. He, it is true, organized in Ifl-tl his bands, 
but — with a small exception — looked until Novem- 
ber 1941 passively at the fight of the partisans 
against the Germans when, on November 2. 1941. 
he openly attacked the forces of the National Re- 
sistance — the Partisans, and collaborated since 
then until the end directly or indirectly, witliout 
interruption, with the Germans,- Italians and 
Ustashis against the Partisans respectively against 
the National Liberation Army. Today it is doubt- 
lessly proved, whereof tliere are living witnesses, 
that Draza Miiiailovich [garbled j-eps or, met] the 
German Command for the first time in August 
1941 in an armoured train in tlie vicinity of tlie 
small town of Ljig where the collaborating [ion] 
against the National Liberating movement was 
discussed. 

The appointment of Draza Mihailovich, Gen- 
eral and War Minister by the Emigrant Govern- 
ment in London changed in no way the facts; it 
is known that the Government made this appoint- 
ment just for the purpose of thus enabling Draza 
Mihailovich to have more success in his fight 
against the National I^iberation movement, re- 
spectively for the purpose of enabling him to 
mobilize forces against the National Liberation 
Army. 

It is exactly known to the Government of the 
FPRY that ever since 1941 a British Military 
mission was with Draza Mihailovich, and that this 
mission left Draza Mihailovich in 1944. We have 
seen the whole world had already knowledge of 
Draza Mihailovich's collaboration with the Ger- 
mans. After the departure of the British Mili- 
tary mission, as far as it is known to the Govern- 

' Bulletin of Apr. 14. 1946, p. 634. 



670 



DEPARTMENT OF STATE BULLETIN 



nient of the FPRY, a military mission of the 
American Army arrived in August 1044 at the 
iieailquarters of Draza Mihailovieh. which fact 
raised in the ranks of the National Liberation 
movement a considerable dissatisfaction. 

On the protest lodged by the Supreme Head- 
quarters of the National Liberation Army, the 
Allied Command replied that mission had only the 
task of receiving crashed airmen. 

The Government of the FPRY admit and be- 
lieve that Di-aza Mihailovieh assumed the appear- 
ance as though he had a loyal attitude towards 
America, and that a number of American air- 
men forced to land on territory under his control 
were saved. But could he do elsewise — the more 
because he expected assistance in food and weap- 
ons for this favour? On this occasion the Gov- 



ernment of the FPRY have to remind that forces 
of the National Liberation Army rescued, often 
not .sparing their own lives, about two thousand 
Allied airmen most of them Americans. They 
considered that their duty towards their com- 
mandants in arms. 

The crimes of the traitor Draza Mihailovieh 
against the people of Yugoslavia are far too big 
and horrible that it could be or should be allowed 
to be discussed whether he is guilty or is not. 

The Government of the FPRY assure the Gov- 
ernment of the USA that full defendants' rights 
will be granted during the investigations as well 
as on the trial of the case. 

The Ministry of Foreign Affairs avail them- 
selves of the opportunity to renew to the Embassy 
the assurance of their high consideration. 



U. S. Owners of Polish Property Granted Assistance 



[Released to the press April 8] 

Text of note trarismitted hy the Polish Embassy in 
Washington to the State Department on March 
29, 1946 in reply to queries made by the U. S. Am- 
bassador in Warsaw regarding the nationalization 
of industry in. Polmid and the question of compen- 
sation- to Ame?'ican property owners 

The Ambassador of Poland presents his compli- 
ments to the Secretary of State and has the honor 
to inform him that the Provisional Government of 
National Unity has made a thorough analysis of 
the note of the United States Government of Janu- 
ary 17, 1946,^ in its desire to deal with the subject 
matters of the note in as concrete and detailed a 
manner as possible. However, no definitive and 
exhaustive reply is yet possible. The enactment 
of the law of January 3rd necessitates the issuance 
of numerous implementing orders and regulations, 
and such orders and regulations are now in the 
course of preparation. 

In conformity with Polish legal procedures, the 
statute of January 3rd sets forth principles of gen- 
eral application, leaving the implementation of 
such principles to executive orders and regulations. 
Therefore the Provisional (lovernment of National 

' Not printed. 



Unity will be able to define in detail its position in 
relation to the questions touched upon in the note 
of the United States Government of January 17, 
only after the issuance of such executive orders 
and regulations pursuant to the law of January 3, 
1946. 

The Provisional Government of National Unity 
will at that time take up in detail the problems 
touched upon by the United States Government. 
The Provisional Government can, however, al- 
ready at this time state the principle that, pursuant 
to Article 7 of the law of January 3, United States 
citizens who believe themselves affected by that 
law are to receive compensation on an equal basis 
with Polish citizens. 

With reference to the matter raised in the note 
of the United States Government that United 
States citizens be granted entry permits to Poland 
for the purpose of acquainting themselves with 
the conditions of industrial establishments owned 
by them in Poland before September 1. 1939, the 
Provisional Government of National Unity ex- 
presses its readiness to give consideration to ap- 
plications of United States citizens to enter Poland 
on the basis of as liberal interpretation as possible 
of existing regulations. 

(Continued on page 682) 



APRIL 21, 1946 



671 



Statement of the Allied Mission for Observing the Greek 
Elections 



[Released to the press by the White House April 11] 

Formal signing of the unanimous report of the 
Allied Mission for Observing the CJreek Elections 
took place last night in Athens, Greece. The re- 
port was signed on behalf of their respective mis- 
sions by the three Chiefs of Mission — Ambassador 
Henry Grady representing the United States Gov- 
ernment, Mr. Richard T. Windle representing the 
British Government, and General Arnaud Laparra 
representing the French Government. Other 
members of the United States Mission, with the 
liink of Minister, are : Joseph C. Green, Walter H. 
Mallory, Major General Harry J. Malony, James 
Grafton Rogers, William W. Waymack, and Her- 
man B. Wells. 

The three Chiefs of Mission will transmit an 
original signed copy of the report to their respec- 
tive Governments, and publication of the document 
simultaneously by the three Governments will take 
place at an early date. At that time the report 
will also be delivered to the Government of Greece. 

The foi'mal signing of the report marked the 
termination of the Mission's activities in Greece. 
Numerous members of the personnel of the Mis- 
sion — American, British, and French — already 
have departed from Greece and others will depart 
as quickly as transportation facilities permit. The 
following is a summary of the important conclu- 
sions outlined in the report of the Mission. This 
summary has been presented to the Greek Govern- 
ment and a copy has likewise been handed to the 
Soviet Ambassador in Athens in keeping with the 
three Governments' earlier statement that the 
Soviet Union would be kept informed of the activi- 
ties of the Allied Mission even though it did not 
participate. 

The Greek elections of March 31 were conducted 
under conditions that waiTanted holding them on 
the date selected. They were on the whole free 
and fair, and the results rejDresent a true and valid 
verdict of the Greek people, in the considered 
judgment of the Allied Mission To Observe the 
Greek Elections. 



This is the Mission's final judgment in a report 
to the American, British, and French Govern- 
ments, made after analysis of factual information 
gathered in all parts of Greece by 240 trained obser- 
vation teams throughout the period of pre-election 
campaigning, on election day, and in the few days 
immediately after. 

The rejDort recognizes "the present intensity of 
jjolitical emotions in Greece" and gives the election 
a favorable verdict after giving that factor in all 
its aspects stud}^ and consideration. If Leftist 
parties which boycotted the election had taken 
part, the single-house Parliament that was chosen 
would now include perhaps 20 percent, but cer- 
tainly not moi'e than 25 percent, of the representa- 
tives of those parties, but this would not have 
altered the general outcome, the Mission reports. 

The Populist Party, a conservative party, had a 
majority in the popular vote and has a majority in 
the Parliament now. Almost all of the remaining 
votes and seats were won by the National Political 
Union, a party cooperating with the Populists, and 
the Liberal Paitj' under former Premier Sophoulis. 

The Allied Mission's report states that election 
day was peaceful and orderly, ranking well with 
past Greek elections and capable of standing com- 
parison as to decorum with general elections in 
France, Great Britain, and America. It points 
out that, while some of the registration lists of 
voters had been completely recompiled for the elec- 
tion and were satisfactory, others have not been 
corrected by sti-iking off the names of all the dead 
and others not qualified to vote. War and disorder 
and careless administration of electoral laws are 
mentioned as being responsible for this. The total 
registration figures are therefore inaccurate and 
misleading. The Mission's experts find that 
Greece's population is about 7,500,000, that a maxi- 
mum of 1,980,000 males were qualified to be regis- 
tered, and that of those 1,850,000 actually were 
validly registered. This was 93 percent of the 
eligibles. The numljer who voted March 31 was 
1,117,000. While the jiresence of the names of 
dead or otherwise ineligible men on the uncor- 



672 



DEPARTMENT OF STATE BULLETIN 



rected registei'S provided ()i)i)oitnnity for fraud, 
tlie Mission found no evideiu-e of such fraud on an 
ini]iortant scale either in making up tlie lists of 
(lualitied voters or in plural voting. Among the 
specific findings of the section of scientific sampling 
experts of the Mission were these: lor all Greece, 
71 percent of the names on registration lists were 
unquestionably valid, only 1.'5 percent were invalid, 
iuid 16 percent were of doubtful validity. Sixty 
percent of the number validly registered actually 
voted. The 40 percent who did not vote included 
an estimated 9.3 percent wlio allegedly abstained 
for "party"' i-easons, and varying percentages for 
otiier reasons iu)t identifiable with political strat- 
egy'. However, the technical analysts have al- 
lowed, in tiieii- basic estimates, for from 10 to an 
absolute maxinniui ^0 percent of "party" absten- 
tion, with 15 peirent as a probable maximum. The 
15-percent estinuite gives a total for deliberate 
abstainers of :i80,000. But of the votes actually 
cast not moi'e than "2 percent were cast illegally in 
the names of dead or unidentifiable persons. In 
otlicr words, fraud of this kind nuiy have been 
responsible for a maximum (^f '22,0(10 votes out cf 
approxinuitely 1,117,000 and could not have in- 
fluenced general election results. Of the regis- 
tered voters who did not vote, only 11,000 can be 
definitely regarded as having abstained because 
unfairly prevented from voting, the sampling staif 
says. Though, therefore, the Mission finds that 
the opportunity for fraud that was presented by 
tlie exaggerated registration lists was not exploited 
in this election, it reconnnends in its rei)ort that all 
registration lists in Greece, in rural as well as city 
areas, be completely recompiled before the opinion 
of the Greek jieople is again sought on matters of 
national importance, so as to remove all possible 
justification for fraud charges based on inaccurate 
registers in tlie future. 

Some intimidation of voters both by Rightists 
and by Leftists was found, varying by regions and 
even villages. While this was general enough to 
be consequential on election day itself, it is re- 
garded by the Mission as an inevitable product 
of (Jreece's experience under domestic dictatorship, 
under enemy occupation, and especially of the 
brief but desperate "civil war" between Leftist 
forces of the resistance movement and Cireek Gov- 
ernment forces at the end of I'M-i. The passions 
tiuis generated did produce intimidation in the 
year preceding the election. This was particularly 
marked ajiainst extreme Leftists in the agricultural 



regions of the Peloponnesus and in northwestern 
Greece. These conditions, says the Mission, had 
an important bearing on the abstention of EAM 
members from voting, and did have "some effect" 
on the election, without materially affecting the 
outcome. 

Presence of British troojis in (Jreece had no ef- 
fect whatever on the election results, the Mission 
finds. 

Investigation of complaints about pro-Rightists 
bias by police and gendarmerie led to the conclu- 
sion that the police as a whole were loyal to their 
duties but that some of the gendarmerie showed 
partisanship. This, however, had a very minor in- 
fluence on the general results, the Mission says. 

AVhile under the present Greek election law ab- 
stention is illegal, its practice as party strategy 
is too well established by custom to permit control 
by legalistic means, says the Mission, and it does 
not feel that party abstentions this time either 
altered the results or represent a new and alarming 
element in (ireek politics. The fact that absten- 
tion, although a contravention of Greek law, was 
countenanced by the authorities gave even dis- 
sident elements an opportunity fully to indicate 
their views. The Mission is convinced that its 
presence in Greece has a reassuring effect and con- 
Irilmted to orderliness. 

Today's report by the Mission, which will be 
sent to the cooperating Allied Goveruments of 
France, the United States, and (ireat Britain, and 
tlie Union of South Africa, reveals how the un- 
precedented task of election observation in Greece 
was planned and organized and the methods used 
to arrive at conclusions. This summary of the 
report has been furnished to the above-named Gov- 
ei-nments and to the (ireek Government and the 
Soviet Goveriunent. The Mission grew out of the 
agreement at Yalta by America, Great Britain, 
and Russia to help liberated countries set up demo- 
cratic governments, followed by the agreement of 
(Jreek political parties to seek such Allied help 
through election observatiou, and by the specific 
request thereafter of the then Greek Government. 
America, Great Bi'itain, and France accepted the 
invitation. Russia declined. 

Last October Dr. Henry F. Grady was named 
chief of the American contingent, R. T. Windle 
of the British, and General Arnaud Laparra of 
tlie French. From November onward, through 
conferences in Athens ami the other capitals, the 



AHHIL 21, 1946 



673 



]\Iission took I'oiin. It w;is decided by acceptance 
of an American plan that the cooperating na- 
tionalities should merge completely into an Allied 
team, whose policies would be determined by 
the whole and whose report would be a single 
document. 

For operational purposes Greece was divided 
into five districts, with an Allied district board 
stationed at each district office, and in Athens a 
central board, headed by the three Chiefs of Mis- 
sion, functioned continuously from February 25 
to April 10. The observers, all of whom had been 
given an intensive background course on Greek 
conditions for a week in Italy before moving to 
Greece, consisted of selected men from the Allied 
armed forces. Army personnel was used because 
of availability in the area, acquaintance with 
Mediterranean conditions, and suitability for the 
arduous task of constant travel in mountainous 
country under practically nulitary conditions as 
to rations, equipment, and general living. Opera- 
tionally, the whole undertaking was set up on a 
military basis in order to meet requirements of 
supply, communications, and immediate organiza- 
tional efficiency. 

Two distinct methods of ascertaining facts were 
adopted. One was the method of scientific sam- 
pling, developed in great detail on the ground in 
Greece by outstanding American and British 
experts before the observation teams arrived. 
Questionnaire forms designed to assemble pre- 
cisely the information needed in order to answer 
the important questions were prepared. These 
were used by the 240 observer teams, which visited 
l,55f) polling places in the pre-election period, 
watched the actual voting procedure all day at 
105 selected polling places, visited in addition 708 
other polling places on election day, and con- 
ducted many post-election inquiries and special 
investigations of typical complaints. 

Through a huge amount of data thus gathered 
from places carefully selected so as to be repre- 
.sentative, under secrecj' as to when and where ob- 
servers would appear, the sampling section of the 
Mi.ssion was able to arrive at definite statistical 
conclusions and rej^ort them to the whole Mission. 

The final report from this section was signed 
by Dr. Raymond Jessen, of the statistical labora- 
tory of Iowa State College, Ames, Iowa ; by Mr. 
Oscar Kempthorne, of the statistical department 



of Eothamsted Experiment Station, Harpenden, 
Herts, England; and by Dr. S. Shepard Jones, 
in charge of Public Attitudes Branch, Division 
of Public Liaison, Department of State, Wash- 
ington, D. C. 

Meantime, in every district a simultaneous pro- 
gram of general inquiry, modeled on an ''intelli- 
gence service", was carried out, in which civilian 
personnel as well as all tlie military observers par- 
ticipated. Every available source of information 
was explored in this phase of the study. In the 
end the judgments arrived at through this method 
by the Allied district boards were compared with 
the conclusions based on scientific sampling, and 
were found to supplement and confirm each other 
on ever}' basic point. Observer teams consisted of 
three men, an officer observer, tlie interpreter, and 
a driver. Jeeps were the vehicles used, frequently 
su2:)plemented by long and difficult journeys on 
donkeys to remote places, sometimes by long walks. 
Water craft were also emploj^ed. And for reach- 
ing islands as well as maintaining communication 
between central and district headquarters, aircraft 
of several types were in operation regularly. In- 
terpreters for the Mission were all men. They 
were chosen by a careful screening process to guard 
against political bias, and the training of observer 
teams was so designed as to reduce the interpreter's 
role to that of translation solely. Close contact 
was maintained between the Mission and those of- 
ficials of the Greek Government responsible for 
decisions and preparations for the election. The 
Mission accepted no responsibility in these fields 
beyond keeping itself informed and reporting to 
the Greek authorities such conditions as it found 
which might affect the election seriously. 

The Mission's report points out that the date of 
the election was several times postponed by the 
Greek Government to meet requests by Left Wing 
parties, and that the method of proportional 
representation was adopted also as a concession to 
the Left. Complete freedom of the press of Greece 
was found to characterize the election period. The 
Mission mentions some criticisms to which it was 
itself subjected, now from the Right and now from 
the Left. 

The report transmitted to the cooperating Allied 
Governments 10 days after the election will be pub- 
lished in full, with complete documentation and 
explanation, as early as possible. 



674 



DEPARTMENT OF STATE BULLETIN 



U. S. Aid in Economic Reconstruction of France 



BY ASSISTANT SECRETARY HILLDRING 



THE United States full.y appreciates tlie needs 
of France as she begins the long task of reha- 
bilitation and modernization. In every com- 
numity in the United States are returned soldiers 
who can testify to France's shattered villages and 
broken towns. They can speak with firsthand 
knowledge of her crippled transportation system, 
her disabled industrial establishments, her pillaged 
agricultural resources. After two bitter winters, 
they know its need for fuel, and they have wit- 
nessed the painful lack of adequate foodstufl's 
among all classes of the population. They do not 
need to be convinced that, as a gallant ally and as 
a major victim of war and occupation and war 
again, France deserves a better fate than she is now 
suffering. Nor do they need to be persuaded that, 
as long as present conditions endure, France can- 
not make the contribution that she is capable of 
making to the recovery of Europe and of the world. 
Because of their recognition of the needs of 
France, the people and the Government of the 
United States have already made noteworthy con- 
tributions to her matei'ial recovery. The first were 
made immediately after D Day, when, in order to 
enable them the more eifectively to conduct their 
own civil administration, the Army made available 
to the French authorities many of the basic require- 
ments of civilian life. While the first difficult 
battles were being fought among the hedgerows of 
Normandy, the Army laid down on the beaches 
clothing and food and medicine, which the French 
themselves put into the hands of their local au- 
thorities. From its own short supply, the Army 



Excerpts from an address delivered at the reception to 
Leon I'.luni and the French Mission in New York, N. Y., 
on Apr. 12, 1!)46 and released to the press on the same 
date. Mr. Blum is Ambassador Extraordinary and Pleni- 
potentiary of France on a special mission to the U. S. 
For complete text of Mr. Hilldring's addre.ss, see Depart- 
ment (if State press release 248 of Apr. 12, 1946. 



provided gasoline and oil and lubricants so that 
the French could distribute the necessaries of life 
among the people whose homes, farms, and shops 
had unhappily stood in the line of battle. Between 
D Day and December 1944 the United States Army 
in cooperation with the British Army shipped 
175,000 tons of civilian supplies to southern 
France and northwest Europe. Such assistance 
was not grudged then, nor is it grudged now. It 
was rightly regarded as an essential ingredient of 
victory. 

Assistance to France on the part of the United 
States did not cease with the termination of hos- 
tilities. Since V-J Day the French have been 
enabled to purchase surplus equipment stored in 
depots and warehouses all over France. With it 
the French are restoring their ports and increasing 
the number of trucks on their roads. Until the 
railways of France are fully restored, trucks con- 
stitute a prime means of moving fuel and food 
from the areas in which they may be found to the 
cities and towns where they are needed. 

The United States has made a special effort to 
assist France in overcoming deficiencies in two 
critically required commodities. One is wheat. 
The other is coal. Let me speak first of wheat. 
When, several months ago, it became apparent that 
France would need considerable exports of wheat 
in order to maintain even a minimum diet, the 
United States made arrangements to cooperate 
fully in supi)lying them. Even though the war 
against Japan, then still going on, was exerting a 
heavy strain on all shipping resources, cargo ves- 
sels were made available to carry wheat to France. 
During the last six months of 191.5, well over a 
million long tons of wheat were shipped. In the 
first three months of 1946, well over a half million 
more tons have been shipped. Nor has assistance 
to the French in the matter of wheat been rendered 
only in their own country. When the French au- 
thorities in connnand of the occupation zones in 



APRIL 21, 1946 



675 



Gernumy and Austria I'ouiul themselves rumiing 
dangerously short of breadstuffs, General Clay and 
General Chirk lent them wheat fiom their own 
very short supplies. These loans helped to over- 
come the dangers that would inevitably arise if 
the populations of the various occujiation zones 
Avere subject to widely disparate treatment. 

The United States does not assume that what it 
has already done to alleviate the urgent, immediate 
need of France for wheat is enough. With other 
nations, it is planning not only to continue but to 
increase the flow of grain until the basic require- 
ments of the French are fully met. If Americans 
can prevent, the French loaf will not be further 
shortened. 

Similarly, in the matter of coal the United States 
has endeavored earnestly to alleviate the problems 
of France. Since last August we have shipped live 
million tons to France, all of it in Liberty ships. 
We are also making underground mining machin- 
ery available, ileanwhile the French have raised 
their own coal production higher than the pre- 
war level — a magnificent achievement. 

Yet neither their own resources nor our ship- 
ments of coal are enough to meet the urgent re- 
quirements of reconstruction. The United States 
lecognizes that more is needed if France is to get 
her industries going, her transport moving, her 
utilities operating fully. Consequently, we have 
n(jt undertaken merely to help France with coal 
from our own supplies. In addition, we are sym- 
pathetic with the needs of France for the largest 
practicable allocations of the output of the mines 
of the Kuhr. 

The United States also regrets the continuation 
of arrangements within Germany that, in our 
opinion, prevent the most efficient exploitation of 
German resources for the benefit, first of all, of the 
nations despoiled by the Nazis. The supply of 
coal from the Ruhr has been governed largely by 
one factor — transportation. Efficient transporta- 
tion is needed to get food into the Ruhr so that 
miners can maintain a high level of individual out- 
put. Efficient transportation also is needed so that, 
once mined, the coal can be quickly distributed to 
the areas where it is most required. The view of 
the United States is that France is one of the most 
important of those areas. 

Unhappily, the efficiency of transportation in 
Germany is hampered greatly by the circumstance 
that no central administrative machinery exists 



for its management. The railroads of Germany 
do not constitute one system. In effect, they con- 
stitute four systems, one for each occupation zone. 
Under such an arrangement, the advantage of cen- 
tral direction of this essential economic instrumen- 
tality is lost, and the sufferers are not only or even 
primarily the Germans. Rather they are the 
peoples of the liberated areas who require the out- 
put of German resources in tlie upbuilding of their 
industries and the restoration of their commercial 
and economic life. 



The reparations program as established at the 
Potsdam Conference last summer also embraces a 
concept which was different from that established 
after the first World AVar. Under the Potsdam 
Agreement, production by Germany of metals. 
chemicals, machinery, and other items that are di- 
rectly necessary to a war economy shall be rigidly 
controlled and restricted to approved peacetime 
needs of the German economy. After World War 
I, Germany retained and increased her industrial 
dominance over many of her neighbors and was 
able to utilize her economic power to force other 
countries to assist in her rearmament. From now 
on, Germany will be only one among many nations 
and will no longer enjoy the economic predom- 
inance which she established during the 1930's. 
This policy does not mean that Germany will be 
perpetually enslaved, but she will no longer be 
permitted to play the tyrant in Europe, either 
economically or politically. Under the Potsdam 
Declaration the German productive capacity which 
is- not needed for its peacetime needs will be re- 
moved in accordance with the reparations plan, 
furthermore, in accomplishing this industrial dis- 
armament of Germany it is the intention of the 
Allies to decentralize German economy for the pur- 
l)ose of eliminating the excessive concentration of 
economic power, which the Hitler Government 
found so useful in accomplishing the military re- 
armament of Germany. 

The reparation policy, therefore, has its con- 
structive as well as its removal aspects and under 
the Potsdam Agreement primary emphasis will be 
given in organizing German economy to the devel- 
oj^ment of agriculture and peaceful domestic in- 
dustries. Only a Europe which is a stable, pros- 
perous, and progressive community in all of its 
parts will avoid those conflicts which have twice 
involved us in war and only in such a Europe, I 



676 



DEPARTMENT OF STATE BULLETIN 



may add, can France or anj' other country enjoy 
health, prospei'ity and peace. 

So far I have been talking about economic re- 
construction. Now I want to speak of something 
which France craves even more jjrofoundly : secu- 
lity. It is hardly necessary for me to state that we 
are cordially at one on this objective too. No point 
in the post-war policy of the United States has 
been more categorically stated than our determina- 
tion that Germany shall not again be a menace. At 
Yalta we joined in declaring that "It is our in- 
llexible purpose to . . . ensure that Germany 
will never again be able to disturb the peace of the 
world." Tliis commitment has been unequivocally 
lepeated and expanded in subsequent agi-eements. 
I would like to add, however, that the French have 
a right to a unique sense of urgency on this point. 
We can understand this point of view only to the 
extent that we can imagine what it would be like 
to be in their shoes. Surely the least we can do 
in recognition of the gallant part they have played 
as our Allies is to make this effort of imaginative 
symj)athy. 

Unity begins and is first tested on a small scale. 
From this point of view the Allied Control Coun- 
cil at Berlin has a significance far wider than 
Germany. It is the pilot model of international 
collaboration. Friendly cooperation there has 
been an essential part of our foreign policy all 
along. It is something for which we shall con- 
tinue not merely to speak but to work. I should 
like, at this point, to paj' a special tribute to the 
untiring labors of Generals Koenig, Koeltz, Mc- 
Narney, Cla}^, and their colleagues which have 
ah'eady accomplished so much in this direction. 
Their collaborative efforts have contributed and, 
I hope, will continue to make ever larger contri- 
bution to the solution of the German problem and 
thereby to the stability of Europe and the peace 
of the world. 

Tfniight I have dwelt on some of the ways in 
which the United States has worked and will work 
with France in the pursuit of goals which are 
essentially the same for both. I have not wished 
to go into the points on which, from time to time, 
we have differed as to the best means of attaining 
those goals. That is not because I think we should 
ignore the ftict that differences occttr. I siin])ly 



wanted to affirm my belief that tliey can be worked 
out as we go along. That is my faith not only for 
France but for all of Europe, and all the world. 

When I speak thus hopefully of Europe, I 
realize that I am speaking in the presence of one 
who is not only a good Frenchman but a great 
EurofDean. Mr. Blum has been called the last of 
that distinguished line. Let us say rather that he 
is one of the first of a new line of great Europeans 
to set foot on the shores of a new age. 

The way to that order will be long and hard. 
The hatreds and obsessions with which Hitler left 
his curse upon mankind will not be cured in a 
daj'. To speak jauntily of our hopes would be to 
insult the sufferings of every famished child and 
every homeless Jew. So beside my faith in the 
future I want to set my determination. I believe 
it is also the determination of my Government and 
my countrymen. 

We shall not waver in our commitments. What 
we said at Yalta and at Potsdam that we would 
do we will do. 

We are committed to the pacification of Ger- 
many. To that end we shall maintain troops 
there in adequate numbers and civilian adminis- 
trators in necessary strength until the job is done. 

We are committed to the international expan- 
sion of production and trade upon which world 
prosperity and peace depend. To that end we 
shall continue to provide material assistance for 
immediate needs, and we shall vigorously cham- 
pion international economic arrangements look- 
ing to the creation of a balanced system of world 
trade and world commerce. 

We are committed to the expanding influence 
of the United Nations. To that end we shall seek 
to promote unity of action in all spheres of inter- 
national life. 



Confirmation of 
Bernard M. Baruch 

The Senate confirmed on April 5, 1946 the nom- 
ination of Bernard IM. Baruch to be Representa- 
tive of the United States of America on the 
United Nations Commission on Atomic Energy. 



APRIL 21. J 946 



677 



The Importance of International Economic Relations 
to World Peace 

BY ASSISTANT SECRETARY CLAYTON 



ANY EXAMINATION of the importance of inter- 
. national economic relations to world peace is 
at the same time an examination of the foreign 
economic policy of the United States. The success 
or failure of that policj? will, in the last analysis, 
be measured by our contribution to the safeguard- 
ing of the peace. 

The foreign economic relations of the United 
States cover a very wide range of problems. Each 
new problem presses so closely on the heels of its 
predecessor that there is little space between for 
reflection. 

Nevertheless, day-to-day decisions nuist fit into a 
broad ijolicy pattern and must contribute to the 
attainment of our ultimate purpose. Not only 
must we know where we want to go but we must 
have a good idea of how we intend to get there. 

Clearly, the evaluation of economic policy in 
terms of its bearing on the maintenance of peace 
cannot proceed far in the absence of at least a 
rough analytical framework. Perhaps such a 
framework can be outlined very briefly in three 
jn-opositions. 

We in the Department of State believe, first, that 
foreign economic policies which give effect to the 
principle of equal treatment for all nations will 
tend to eliminate some of the important causes of 
international friction and ill-will and will thus 
tend to strengthen the peace. 

Secondly, we believe that the adoption of wise 
and far-sighted economic policies will stimulate 
world trade and prosperity, and that prosperity 
itself is a direct bulwark of peace. 

Third, and most important, we believe that a 
wise economic policy will contribute to prosperity, 
that prosperity is the most congenial economic 
atmosphere for the growth and spread of democ- 
racy and the institutions of freedom, and that the 
peace is safest in the hands of free men. 

Let us now take up these propositions in order. 

The first of these is the proposition that dis- 



criminatory economic policies can undermine 
friendly relations between states and weaken the 
structure of peace. Discrimination in this sense 
can take a multitude of forms. It can include pref- 
erential tariff systems, favoritism in the allocation 
of imjjort fiuotas, or the use of exchange controls 
to the disadvantage of certain foreign countries. 
It can include the denial by a colonial sovereign 
of equality of access to the trade or raw materials 
of its colonies. It may be overt or concealed ; there 
are many ways of achieving discriminatory pur- 
poses in regulations or legislation which appear on 
their face to be of general applicability. 

Even though the economic effect of a particular 
act of discrimination be slight, the act may have 
consequences entirely out of proportion to its real 
significance. Acts of economic discrimination 
often provoke reactions in terms of national pride 
and honor, especially when nationalistic feelings 
have previously been aroused by other causes. 

A colonial sovereign which uses its political 
powers to deny to other nations the right of equal 
access to the trade and raw materials of dependent 
areas may do serious injury to the economy of 
its neighbors. The economic effects of imperi- 
alism may not be inherently incompatible with 
the interests of peace ; but imperialism can be used 
to undermine the peace when the sovereign ob- 
structs trade and economic relations generally 
between the dependent areas and other nations. 

In the sense in which the terms are customarily 
used, no nation is really a "have" nation, as op- 
posed to a "have-nof nation, unless it obstructs 
access by other nations to its markets and raw 

An address delivered before the Academy of Political 
Science in New York. N. Y., on Apr. 11, 1046, and released 
to the press on the same date. For an address by Emilio 
G. Collado, Deputy on Financial Affairs to Mr. Clayton, 
on the subject of foreign trade and foreign investment, 
delivered on April 10 before the .\ssociation of Reserve 
City Bankers in Palm Beach, Fla., see Department of 
State press i-elease 236 of April 9. 



678 



DEPARTMENT OF STATE BULLETIN 



materials. Likewise, no nation is leally a "have- 
not" nation, no matter liow barren its territory 
may be of important natural resources, unless it 
is denied the right of access, on a basis of equality, 
to the trade and raw materials of other areas 
which are more richly endowed. This access may 
be denied in several ways. 'If nations rich in es- 
sential raw materials raise their tariffs on imports 
unreasonably, the purchase of such raw materials 
becomes difficult for countries which must have 
them. It is not inevitable, or even natural, that 
nations richlj' endowed with raw materiafs 
should be rich, while nations poorly endowed with 
such resources should be poor. Nature often pro- 
vides compensations for such differences. Such 
compensations may take the form of special skills 
of the so-called "have-not" peoples. When a so- 
called "have-not" nation enjoys equal rights on 
reasonable terms to economic intercourse with an 
area rich in natural resources, it has little further 
to gain in the way of economic advantages by 
forcing the area under its political control. If the 
principle of equality of access, on reasonable 
terms, to the trade and raw materials of the world 
were universally practiced, the appetite for ex- 
pansion of sovereignty, so productive of interna- 
tional friction, would largely disappear. 

This, we believe, is an important lesson for eco- 
nomic policy. Whether discrimination has its 
major impact on values as incalculable as national 
pride or as concrete as the standard of living, the 
nation discriminated against becomes a little more 
likely to regard itself as underprivileged and op- 
pressed. When such views are popular, there are 
always leaders who wall cry for military action 
to obtain justice, and there are always followers 
who will listen. It may be doubted if the denial 
of equality of treatment in international economic 
matters could in itself ever lead directly to war; 
but it can contribute to the creation of an inter- 
national climate which is more congenial to war, 
and it can become one of a complex of factors 
which do lead directly to war. 

Let us turn now to the second proposition. We 
have said that the adoption of wise and far-sighted 
economic policies is capable of stimulating world 
trade and prosperity, and that prosperity itself 
is a bulwark of peace. As soon as the proposition 
is stated, however, it becomes apparent on simple 
historical grounds that prosperity alone cannot 
assure permanent peace. Within the limits of 
modern history, wars have occurred in good times 



and peace has been preserved in bad times. But 
economic well-being, rising standards of living, ex- 
panding opportunities for work and trade do tend 
to create a psychological atmosphere in which ag- 
gressive impulses are less likely to become domi- 
lunit. One could hardly put it better than it was 
put by Cordell Hull in 1937. 

''Peoples that are employed and prosperous are 
not easily incited to either internal or international 
strife. But peoples living in want and misery 
come to hold life cheaplj^ and stand ready to gam- 
ble upon the use of force." 

People do not differ nuich from one country to 
another or from one age to another in the universal 
desire to better their condition. If they are able 
through the peaceful channels of production and 
trade to secure for themselves a gradual improve- 
ment of their mode of living, they are more likely 
than otherwise to devote themselves to the cultiva- 
tion of the arts of peace. If, however, the eco- 
nomic environment is such that they are thwarted 
in their efforts to improve their lot, they may and 
often do seek outlets for their ambitions in conduct 
of a more violent sort. If they conclude that the 
obstacles to their improvement and advancement 
are internal, they may pursue their objectives in 
ways that lead to internal unrest or even to civil 
strife. If, however, they believe or are led to be- 
lieve that their distress arises from unfriendly 
external acts, their passions may take them down 
the road to military adventure and war. 

The third proposition, which we regard as the 
most important, is closely related to the second. 
We believe that economic policy can contribute to 
prosjaerity, that prosperity is the most congenial 
economic atmosi^here for the growth and spread of 
democracy and the institutions of freedom, and 
that the peace is safest in the hands of free men. 

Democracy is in many ways a fragile form of 
political organization. This is especially true of 
young democracies, where the institutions of free- 
dom are not imbedded in a solid fcundation of 
habit and tradition. 

For a democracy to function effectively, there 
nuist be an atmosphere of mutual restraint, a dis- 
position to compromise differences, and a willing- 
ness to tolerate opposing views. In times of 
economic crisis, internal cleavages are widened, 
political conflicts arouse deep emotions and bitter- 
ness, and the inclination to compromise in order to 
])reserve free government is weakened. 



APRIL 21, 1946 



679 



That prosperity can contribute to the strength- 
ening of the democratic order is much more than a 
vague hypothesis. All of us, \rithin our own life- 
times, have seen democracies fall apart under the 
pressure of economic crisis. When a choice must 
be made between civil liberties and democratic 
rights on the one hand, and the promise of a decent 
standard of living and economic security on the 
other hand, there are always many who will choose 
the latter, although it may clearly entail the loss of 
the former. When stomachs are empty, the rights 
of free citizenship are regarded as small consola- 
tion. In every democracy, there are always dema- 
gogs who will come to the fore in periods of 
economic crisis to bargain the promise of economic 
security for the surrender of freedom. It was no 
accident that the successes of the Nazi Party at the 
polls when German elections were still free showed 
a striking correlation to German unemployment 
figures. 

If economic well-being is a factor of paramount 
importance in the defense of democracy, then how 
does the defense of democracy relate to the preser- 
vation of peace? The evidence is within reach of 
anyone whose memory extends across the tragic 
years of our century. Democracies, by their na- 
ture, are not only less able to organize and launch 
aggressive war, but they are less likely to desire 
war. It is virtually mipossible to prepare for 
aggression without exercising a degree of ruthless- 
ness in the control of opinion and infonnation 
which is utterly incompatible with the spirit of 
democracy. Even if it desired war, no govern- 
ment of a democratic state could force its people 
into a silent, united, and obedient phalanx without 
first subverting the people's rights. Simply from 
the point of view of the technical aspects of mili- 
tary preparations, democracy and aggi'ession do 
not mix. 

More important, however, is the fact that com- 
mon people, by and large, abhor war. Wherever 
it is within the power of the common man to decide, 
we may be reasonably certain that he will choose 
peace. The common man never wins a war. When 
rulers think of aggression in terms of national 
power and prestige, the reward of the common 
man will probably be conscription, mud, and 
death. When the national prize is said to be 
markets and riches, the common man generally 
reaps ration cards, ersatz food, and inflation. So 
long as the organs of public information and opin- 
ion are free, and so long as the people control the 



govermnent and not the government the people, we 
shall not be misled if we trust the people to choose 
peace. 

In the words of Sir William Beveridge, "to make 
the world safe for democracy does increase the 
chances of its being a peaceful world, for the com- 
mon man neither has nor thinks he has anj'thing to 
gain by war." 

Prosperity, then, is a bulwark of peace, both as a 
dii'ect deterrent to war and as an ally of democ- 
racy. 

In the presence of this framework of ideas, let us 
turn now to questions of policy — to the question of 
what we should do and what we can do to stimulate 
prosperity here and abroad. 

Our problems are of two kinds. There are im- 
mediate problems, relating principally to the tasks 
of making good the material ravages of war. 
There are longer-run problems, involving the 
organization of the world economy to achieve the 
maximum output of goods and services and the 
elevation of living standards. The two are by no 
means independent of each other. If we should 
bungle the job of solving the economic problems of 
the transition from war to peace, we shall certainly 
delay, and we may even lose, the opportvmity to 
organize the world economy for enduring prosper- 
ity. In the eyes of people who lack a roof over 
their heads today, the construction of a substantial 
dwelling for use in the future will have to wait. 

The world is now in the cruel aftei'math of a 
ghastly war. Each day brings fresh reports of 
suffering and misery over wide areas, new accounts 
of hunger, disease, and the still-spreading ravages 
of war. In Europe and Asia, many millions of 
people are right now on the verge of starvation. 
Throughout these continents, fuel and raw materi- 
als to run the factories and fertilizers to restore 
the land are dangerously scarce. Many countries 
are caught in a vicious circle : Without food, coal 
miners cannot dig coal ; without coal, f actoi-ies can- 
not iDroduce agricultural machinery and fertiliz- 
ers; without farm machinery and fertilizers, 
farmers cannot produce food. 

If we were to ignore these problems, or to under- 
estimate their importance, we should do so at our 
peril. Neither j^eace nor prosperity can be secure 
so long as great areas of the world are submerged 
in the economic morass of post-war disorganiza- 
tion. Assistance from the United States, and from 
all other countries in a position to help, is the main 



680 



DEPARTMENT OF STATE BULLETIN 



source of hope to the areas whicli liave been devas- 
tated by war. . 

President Truman, in liis Army Day speech last 
Saturday, set the keynote of our policy : 

"The United States", he said, "is in a position 
to help ; we are helping now, and we shall continue 
to help. We shall help because we know that we 
ourselves cannot enjoy prosj^erity in a woi'ld of 
economic stagnation. We shall help because eco- 
nomic distress, anywhere in the world, is a fertile 
breeding ground for political upheaval. And we 
sliall help because we feel it is simple humani- 
tarianism to lend a hand to our friends and allies 
who are convalescing from woiuids inflicted by our 
common enemy." 

As evidence that we are fulfilling the President's 
pledge is the fact that a larger tonnage of supplies 
now leaves bur Atlantic i:iorts each month than was 
shipped in the peak month of the war. The prod- 
ucts of Amei'ican farms and factories are moving 
abroad tlirough many channels to aid the sick and 
tlie hungry, to plant the land and rebuild the cities, 
and to start again the wheels of production and 
trade. They are moving through the machinery 
of UNKRA, through direct procurement here by 
foreign governments and importers, and under re- 
construction loans made by the Export-Import 
Bank. Goods will begin to move before long under 
credits extended by the International Bank feu- 
Reconstruction and Development, to whose treas- 
ury the United States is the largest contributor. 

Let us turn now to the longer-run problems, to 
the problems of employing foreign economic policy 
to expand trade and promote prosperity. Pros- 
i:)erity abroad is dependent on the state of foreign 
trade to a much greater degree than many of us 
realize. For many countries, thriving foreign 
trade means prosperity and stagnant international 
trade means severe distress. Several countries nor- 
mally derive more than a quarter of their total 
national income from their foreign trade. Some 
countries derive more than half of their income 
from foreign trade. The figures run all the way 
up to C)7 percent, wliich is the figure for Norway. 
It is not an exaggeration to say that economic well- 
being and political stability abroad will depend 
largely, in tlie years to come, on the state of inter- 
national trade. 

Our unparalleled economic strength and our 
position in world trade demand that the United 
States take tlie lead in an efi'ort to put the trade 



of the world back on a healthy basis. Great 
Britain, leader of the greatest international trad- 
ing area in tlie world, is prepared to assume full 
partnership) with us in this high enterprise pro- 
vided we can assist lier tliroughout the next criti- 
cal three- or four-j-ear period of reconversion from 
war to peace. To tliis end, we have negotiated a 
financial agreement with the United Kingdom. 
This agreement is now before the Congress for ap- 
proval. We consider it the key to our entire for- 
eign economic policy. If that policy is to have a 
fair cliance of success it is essential that the Con- 
gress approve this agreement. 

If world trade is to become a highway of peace, 
we and other peace-loving nations must foreswear 
the use of the tactics of economic nationalism which 
turned the international economy into a jungle in 
tlie period between the two wars. We must not 
again permit trade to be strangled in a web of 
excessive tariffs, quotas, embargoes, preferences, 
subsidies, licenses, exchange controls, clearing 
agreements, barter deals, and discriminations of all 
kinds. The Hawley-Smoot tariff of 1!);',(), the 
highest in our history, was passed in sulilime disre- 
gard of its effect on foreign countries. This tariff 
act caused serious injury to foreign economies, and 
brought numerous heavy reprisals and retaliations. 

The trade practices which prevailed in the 193U"s 
have been aptly described as "beggar my neighbor" 
policies. Each nation tried to improve its own 
position at the expense of its neighbors. The net 
effect of these practices was to depress living stand- 
ards, to engender ill-will among nations, and to 
contribute to the political and economic instability 
of the decade. 

International trade will contribute to prosperity 
and well-being to the extent that it is organized 
within a framework which will advance the inter- 
national division of labor and minimize trade dis- 
criminations. A plan to establish such a frame- 
work is contained in our Proposals for Expansion 
of World Tra/le and Employnvent, which were 
worked out in preparation for the forthcoming 
AVorld Conference on Trade and Employment. 
The Proposals represent what we believe to be an 
effective and realistic framework for a concerted 
international attack on the restrictions and dis- 
criminations which hobbled world trade before the 
war. They would achieve in the field of interna- 
tional trade what the Bretton Woods agreements 
should achieve in the field of monetarv and ex- 



APRIL 21, 1946 



681 



eliaiiyi' problems; in fact, tlie Proposals are de- 
signed to dovetail with and to supplement the Bret- 
ton Woods agreements. The Proposals contem- 
plate the establishment of an International Trade 
Organization, which would be tied into the United 
Nations tlirough the Economic and Social Coun- 
cil, and the adherence by all members to a detailed 
charter, which would establish rules of trading 
])olicy and conduct. 

These are the princiiDal lines of action which 
should be followed in the interests of prosperity 
and rising standards of living for all peoples 
everywhere. The position of responsibility and 
leadership which the United States occupies in the 
world demands that we vigoi-ously pursue the 
achievement of these ends. They are not only 
good in themseh'es, but their realization will im- 
prove the chances that this peace will endure. 



Answer to Inquiries on German- 
Owned Factories in Spain 

[Released to the press April 1 1 ] 

hi (inswe/- to inquiries concei^ning press dispatches 
alleging that the Department of State had uncov- 
ered Nazi atomic plants in Spain, the De partment 
issued the following statement: 

The Department of State has no information 
that German-owned factories in Spain are working 
on atomic research. The Department does know 
of German-owned factories in Spain, particularly 
in Bilbao, but has no information that these or 
any other plants in Spain are being used in con- 
nection with atomic-energy projects. 

The Department has information that 2.200 
Germans classified as obnoxious remain in Spain 
and hopes for further cooperation from the Span- 
ish Government in removing them. Included 
among these are certain technicians, but the De- 
partment has no specific information as to their 
individual skills. Their repatriation to Germany 
is being sought because they took part in activities 
aiding the German war effort. The names of all 
obnoxious Germans in Spain known to the Amer- 
ican and British Governments have been given 
and are being given to the Spanish Government, 
together with tlieir addresses when known. 



Commendation to Generals 
McNarney and Clay on 
German Industry Settlement 

[ Released to the press April 12] 

Text of a letter of commendation sent by Acting 
Secretary of State Dean Acheson to Secretary of 
War Robert P. Patterson concerning the part 
played by Gen. Joseph T. McNarney and Gen. 
Lucius D. Clay in the successful negotiation of 
the level-of-industry settlement recently agreed 
by the four occupying powers in the Allied Con- 
trol Council in Berlin 

April o. 1946 
My Dear Mr. Patterson : 

I should like to exj^ress to you my gratification 
at the part played by General McNarney and Gen- 
eral Clay in the successful negotiation of the level 
of industry settlement, recently agreed by the four 
Occupying Powers in the Control Council, Berlin.' 
The tei'ms of that settlement conform closely to the 
conception of this government with respect to the 
appropriate interpretation of the Potsdam Agree- 
ment. They appear to satisfy the agreed require- 
ments with respect to security and reparations, and 
at the same time to promise the Germans the pos- 
.sibility of an adequate and rising standard of liv- 
ing, when present acute problems of fuel, food, and 
trans^jort are solved. 

I appreciate fully that this negotiation was tech- 
nically comf)lex and required the resolution of 
widely conflicting national viewpoints. The vig- 
orous and constructive role played by the Ameri- 
can element in the achievement of quadripartite 
agreement appears to me woithy of the high com- 
mendation of the government. 

Would you convey my congratulations in this 
matter to General MacNarney, General Clay, and 
their staff. 

Sincerely yours, 

Deax Achesox 
Acting Secretary 

The Honorable 

Robert P. Patterson, 
Secretary of War. 



' BuTLLETiN of Apr. 14, 1946, p. 



636. 



682 



DEPARTMENT OF STATE BULLETIN 



Answer to Soviet Inquiry 
on Charges Against 
Lieutenant Redin 

Statement issued by the Department on April 9 

The Soviet Embassy on April 6 inquired of the 
Department of State regarding the arrest of Lt. 
Nicohxi G. Redin at Portland, Oregon, on jNIareli 
26, 1946.^ The Soviet Embassy indicated that ac- 
cording to its information there is no foundation 
for the charges brought against Lieutenant Redin. 
It therefore asked that the case be dropped since 
Lieutenant Redin was innocent of the chai-ges 
brought against him. 

The Soviet Embassy was informed by the De- 
partment of State today that under United States 
juridical procedure the decision as to whether any 
prosecution should be brought rests with the De- 
partment of Justice and tlie appropriate grand 
jury and not with the Department of State. The 
Embassy was also assured that Lieutenant Redin 
would be afforded full protection under American 
law and that any trial would be just and fair. 

' Lieutenant Redin, who was indicted on Apr. 8 by a 
Federal grand jury at Seattle, Wash., on five counts, is 
charged with having induced an unnamed person to give 
him data on the submarine tender U.S.S. Yellowstone. 

POLISH PROPERTY-ro«/;»Hrd from page 070 

The Provisional Government of National Unity 
states that, irrespective of the procedure to be fol- 
lowed in the future in granting compensation in 
accordance with the provisions of the law of Janu- 
ary 3, 194C, there is no doubt that United States 
citizens will be accorded facilities for acquainting 
themselves with the state of industrial enterprises 
owned by them in Poland before September 1, 
1939. 

Eicphitiafory Note hy State Department 

AVith a view to facilitating the entry into Poland 
of those American citizens who desire to inspect 
their properties there, the Department of State is 
prepared to lend its assistance in transmitting re- 
quests for entry permits to the Polish (iovem- 
ment through the American Embas.sy at Warsaw. 
Requests for entry permits should be nuide when 
applying for passports. 



Resumption of Relations 
With Haiti 

[Released to the press \\\v\\ 8] 

The Department of State has instructed the 
Embass}^ at Port-au-Prince to resume diplomatic 
i-elations with the Government of Haiti on April 8 
and has informed the Embassy of Haiti in Wash- 
ington in the sanae sense. 

The President of Haiti resigned on January 11, 
19-tfi. The Cabinet having resigned a few days 
earlier, executive power was assumed provisionally 
by a Military Executive Committee of three officers 
of the Garde d'Haiti headed by Colonel Franck 
Lavaud. The committee subsequently dissolved 
the two legislative chambers and decreed national 
legislative elections for May 12. The new cliam- 
bers are expected to draft a new constitution and 
to elect a President, to whom the Military Execu- 
tive Committee will surrender power. The com- 
mittee has decreed that no member of the mili- 
tary may be a candidate in these elections, and 
the members of the committee have stated that 
they themselves are not candidates for the presi- 
dency and that they intend to retire from political 
activities as soon as power can be assvuned by a 
constitutional civilian regime. 

Following the change in government and in ac- 
cordance with established inter-American proce- 
dures, consultations regarding recognition were 
immediately undertaken among the American re- 
publics last January. These consultations demon- 
strated general agreement that the change of gov- 
ernment in Haiti had not taken place through Axis 
influence. However, a number of governments 
expressed reluctance to extend recognition in view 
of the wholly military nature of both the Military 
Executive Committee and the Cabinet. Recogni- 
tion was accordingly deferred awaiting further 
developments which have now included the sched- 
uling of elections next month and the disqualifica- 
tion of the military, on its own initiative, from 
being candidates therein. Subsequent consulta- 
tions have revealed a consensus of views in favor 
of recognition in the light of the situation as set 
forth above and the fact that the Military Execu- 
tive Committee («) has control of the machinery 
of government and of the country, (&) appears to 
enjoy the full support of the Haitian people, and 
{c) has declared its intention to fulfil its inter- 
lujtional obliffations and is able to do so. 



APRIL 21, 1946 



683 



Canada Purchases 

U. S. Defense Installations 

The Governments of the United States and 
Canada, finding it mutually advantageous at this 
time to expedite and simplify the procedure relat- 
ing to the disposition of defense facilities and 
equipment provided in Canada by the United 
States, have accordingly concluded an agreement 
for the purchase by the Canadian Government for 
the sum of $12,000,000 (U. S.) of certain defense 
installations and projects and/or equipment and 
supplies connected therewith owned by the United 
States Government and located in Canada which 
liad not previously been transferred to Canada. 
Details of the transaction were worked out by 
I'epresentatives of the office of the Field Commis- 
sioner for Foreign Liquidation for Canada and 
the North Atlantic Areas on behalf of the Depart- 
ment of State and the President of War Assets 
Corporation, Canada. 

The installations and equipment referred to in- 
clude those located along the Alaska Highway and 
Northwest Staging Route, wartime weather sta- 
tions located in northeastern Canada, surplus 
movable property reported by the United States 
Government to War Assets Corporation but which 
has not been sold, and certain naval and air equip- 
ment which has been provided the United King- 
dom under lend-lease and which when returned to 
United States account remained in Canada. The 
United States Government will endeavor to make 
available to Canada such surplus equipment to be 
used in the training programs of the Canadian 
armed forces as may be desired by Canada up to 
April 1, 1947 in such quantities and at such prices 
as may be negotiated between the two Governments 
up to a maximum cost of $7,000,000 (U. S. ). 

Both Governments feel that this agreement is 
mutually advantageous and that its conclusion 
r.gain demonstrates the ability of the United States 
and Canada to reach by negotiation satisfactory 
and beneficial agreement on the problems of the 
post-war period.^ 

' For text of the exchange of notes between the U. S. and 
Canadian Governments, see Department of State press 
release 229 of Apr. 8. 



Air-Transport Agreement 
with Belgium 

The Department of State on April 9, 1946 re- 
leased to the press the text of the air-transport 
agreement concluded between the Governments of 
the United States and Belgium. The text of the 
agreement follows substantially that of the air- 
transport agreement with the United Kiitgdom, 
as printed in the Bulletin of April 7, with the 
exception of that section of the annex which 
pi'ovides for the air routes as follows: 

"(Points on any of the routes may. at the option 
of air carrier, be omitted on any or all flights.) 

1. Route to be served by air carriers of Bel- 
giiun : 

Belgium to New York by a direct route via the 
British Isles and other intermediate points; in 
both directions. 

2. Routes to be served by air carriers of the 
United States : 

(a) The United States to Brussels by a direct 
route via the British Isles and other intermediate 
points to India and beyond; in both directions. 

(b) The United States via the Azores and Da- 
kar (and via South America) and intermediate 
points to Leopoldville, and beyond via interme- 
diate points, to the Union of South Africa; in 
both directions." 



Addresses of the Week on 
Inter- American Cooperation 

Assistant Secretary Braden addressed the For- 
eign Policy and Pan American Associations on 
April 13, 194G in Philadelphia, Pa., on the subject 
of inter- American cooperation and its relation to 
world peace. For the text of Mr. Braden's ad- 
dress, see Department of State press release 237 
of April 10. For an address on inter-American 
collaboration delivered by Joseph F. McGurk, 
American Ambassador to the Dominican Repub- 
lic, before the Indianapolis Chamber of Com- 
merce at Indianapolis, Ind., on April 12, see De- 
partnient of State press release 210 of April 10. 



684 



DEPARTMENT OF STATE BULLETIN 



Interim Arrangements for Air Navigation Facilities Abroad 



[Released to the press by the White House March 29] 

Whereas certain air navigation and aeronauti- 
cal communications facilities provided by the 
United States for military purposes are located at 
{joints in foreign territoi'y and elsewhere outside 
the continental limits of the United States where 
such facilities can be utilized to material advan- 
tage in the oi:)eration of international air carriers 
of the United States and of other nations; and 

Whereas it is desirable that temporary provi- 
sion be made for the custody, operation and main- 
tenance of such facilities pending the completion 
of arrangements for their permanent operation or 
disposition : 

Now, THEREFORE, by virtue of the authority 
vested in me by the Constitution and statutes, 
including Title I of the First War Powers Act, 
1941 (55 Stat. 838) , and as President of the United 
States, it is hereby ordered as follows: 

1. There are transferred to the Department of 
Commerce all functions and authority, facilities, 
property, records, equipment and maintenance 
supplies of the War and Navy Departments relat- 
ing to the care, control, maintenance and opera- 
tion, of air-navigation, air-traffic-control, airway- 
communication, and meteorological facilities of 
tlie United States Government (including compo- 
nents thereof and all structures and equipment 
appurtenant thereto or used in connection there- 
with) which (a) are located at points in foreign 
territory and elsewhere outside the continental 
limits of the United States, (h) are determined by 
the War or Navy Departments, as the case may 
be, to be no longer required for military purposes, 
(c) are determined by the Department of Com- 
merce to now be or to be likely to become useful 
in connection with the safe and efficient operation 
of United States civil aircraft in foreign air com- 
merce, and (d) can be continued in operation with 
funds available to the Department of Commerce 
for the purpose. 

2. The Department of Commerce, in carrying 
out the {provisions of section 1 of this order, and 
to the extent permitted by law, is authorized and 
empowered to make, with the collaboration and 

' Exec-titive Oi-<1pi- 0709 ; 11 Fedpial Register 3389. 



aiDi:)roval of the Department of State when the 
property is located in foreign territory, arrange- 
ments with the appropriate agencies of the respect- 
ive foreign Governments, or with an appropriate 
international agency, or with any air carrier or 
other suitable private agencj', for the interim cus- 
tody, operation, and maintenance of facilities 
transferred to the Department of Commerce under 
the provisions of this order. 

3. Tiie Department of Commerce is authorize:!, 
on behalf of the United States, to accept funds 
from any foreign Government or air carrier in 
payment for services rendered in the operation of 
facilities transferred under this order, which 
funds shall be covered into the general fund of 
the Treasury. 

4. The functions vested in the Department of 
Commerce hereunder may be {performed by the 
Secretary of Commerce through such agencies and 
personnel of the Department of Commerce and in 
such manner and subject to such terms and condi- 
tions as he shall determine. 

5. The provisions of this order shall become 
effective with respect to the facilities and equip- 
ment at each location at such time or times as 
may be agreed upon between the Department of 
Commerce and, as the case may be, the War 
Department or the Navy Department. 

6. The provisions of this order shall be applic- 
able to the facilities, propert_y, and functions 
transferred by Executive Order No. 9669 of De- 
cember 28, 1945, which order is hereby superseded. 

7. The provisions of this order shall not be ap- 
plicable to loran or other sea and air navigation 
facilities now operated by the Coast Guard, nor 
to any functions or authority of the Navy Depart- 
ment respecting such facilities. 

8. Such further measures and dispositions as 
may be determined by the Director of the Bureau 
of the Budget to be necessary or appropriate to 
effectuate the provisions of this order shall be 
taken and carried out at such time and in such 
manner as he shall prescribe. 

Harry S. Truman. 
The White House, 

March 29. WJ,G. 



AHRIL 21, 1946 



685 



Transfer of Corporations of OIAA to the Department of State 



STATEMENT BY THE PRESIDENT 



[Released tu the press by the White House April loj 

I have today signed an Executive Oixler trans- 
fei'iing corporations of the Office of Intcr-Aineri- 
can Affairs to the Department of State. The order 
terminates the Office of Inter-American Affairs 
and places those of its functions involving con- 
tinued cooperation with the other American repub- 
li&s in a regular department of our Government. 

The Office of Inter-American Affairs has made 
an invaluable contribution to our victory. It has 
developed a new pattern of international relation- 
ships. Its cooperative programs with other Amer- 
ican republics, in the fields of health and sanita- 
tion, food supply, education, transportation, and 
hemisphere economic advancement, serve as guides 



to what can be done by the governments every- 
where when they are willing to cooperate in solv- 
ing problems of nnitual interest to their peoples. 

As it initiated and developed programs of co- 
ordination and cooperation during the war-emer- 
gency years, the OIAA progressively transferred 
them to other agencies and departments for their 
completion or continuation. On August 31, 1945, 
I signed Executive Order 9t)08 ^ transferring the 
information functions of the OIAA to the Depart- 
ment of State. With today's order, the completion 
of action programs, undertaken by the OIAA 
through its corporations to implement and per- 
petuate our good-neighbor policy, becomes the I'e- 
sponsibility of the Department of State. 



STATEMENT BY THE DEPARTMENT OF STATE 



[Iteleased to the press April 10] 

Responsibility for the continued performance of 
the extensive liealth and sanitation, agricultural 
and educational cooperative programs conducted 
in the other American republics by the Office of 
Inter-American Affairs has been intrusted directly 
to the Secretary of State under an Executive order 
signed today by President Truman. The.se pro- 
grams were not carried out by the Office of Inter- 
Amei'ican Aft'airs itself but through Government 
corporations which it controlled. The cooperative 
health and sanitation and agricultural programs 
were conducted through the mediiun of the Insti- 
tute of Inter- American Affairs and the cooperative 
educational programs through the Inter-Ameri- 
can Educational Foundation. Control over these 
corporations, and consequently the task of assuring 
the successful accomplishment of their programs, 
is now vested by the Executive order in the Secre- 
tary of State. The transfer will in no way affect 
the continuous and smooth functioning of the cor- 
porations, M^hich will now operate dii'ectly under 
the auspices of the Secretary of State. 



The presidential order brings to a close any di- 
rect o^Jerations of the Office of Inter-American 
Affairs, and its functions are, therefore, termi- 
nated, except for those necessary to insure the 
orderly disposition of its personnel, records, funds, 
and property and the satisfactory winding up of 
such of its affairs as cannot be completed befoi'e 
May 20, 1940, the effective date of the order. Such 
reserved functions are transferred to the Depart- 
ment of State for apjiropriate action. 

The Institute of Inter-American Affairs and the 
Inter-American Educational Foundation are not 
the only corporations operated by the Office of 
Inter-American Affairs whose control is now being- 
turned over to the Secretary of State by the Presi- 
dent. Also included in this transfer are three 
other corporations, the Inter-American Transpor- 
tation Corporation, the Inter-American Naviga- 
tion Corporation, and Prencinradio, whose pro- 
grams have been completed with the exception of a 
transportation program in Mexico under an agree- 

■ Bulletin of Sept. 2, 1945, p. 307. 



686 



DEPARTMENT OF STATE BULLETIN 



meiit with the Government of that country which is 
scheduled to expire on June 30, 1946. After that 
date tliese corporations will be devoted only to 
winding up their affairs. 

In assuming this responsibility, delegated by 
the President, it is the purpose of the Depart- 
ment of State to insure the successful perform- 
ance, under conditions of peacetime economy and 
efficiency, of the highly important cooperative 
programs of the Institute of Inter-American Af- 
fairs and the Inter-American Educational Foun- 
dation, for which commitments have been given 
to the other American republics. Funds for the 
accomplishment of these programs are derived 
from congressional appropriations under the con- 
tract authority granted by Congress in 1944 and 
by means of contributions received from the gov- 
ernments of the other American republics in 
whose countries cooperative programs are being 
carried out. Consequently, no interruption or 
alteration in the vigorous and sustained prosecu- 
tion of these programs is envisioned. 

These Government corporations, control over 
which is being vested in the Secretary of State, 
are non-profit membership corporations. The 
Secretary of State will designate the members of 
the corporations (who are the equivalent of stock- 
holders in a commercial corporation) and will 



nominate the members of the board of directors 
of each corporation. It is expected that identical 
members and directors will be thus designated for 
the corporations, thus assuring uniformity of 
policy control and a maximum of coordination in 
the development of their various programs. Rep- 
resentatives of the diiferent offices of the Depart- 
ment of State concerned with the progress of the 
cooperative programs of the corporations will be 
included in the management of the corporations. 
In this way the cultural programs of the Dejiart- 
ment under Assistant Secretary for Public Ati'airs 
Benton, the economic programs under Assistant 
Secretary for Economic Affairs Clayton, will re- 
ceive full representation under the policy control 
of Assistant Secretary for American Republic 
Affairs Braden on the boards of the corporations. 
The complete and successful jierformance of the 
cooperative health and sanitation and agricultural 
jirograms of the Institute of Inter- American Af- 
fairs and the cooperative educational programs 
of the Inter- American Educational Foundation 
has the firm and decided backing of the Depart- 
ment of State. By contributing through mutual 
collaboration to the improvement of living stand- 
ards and the general welfare of the people of the 
Americas, they serve to fulfil basic aspirations 
of the good-neighbor policy. 



EXECUTIVE ORDER 9710 



Tekmixating the Ornt'E or Inter-American Af- 
fairs AND Transferring Certain of Its Func- 
tions 

By virtue of the authority vested in me by the 
Constitution and statutes, including Title I of the 
First AA'ar Powers Act, 1941, and as President of 
the United States, it is hereby ordered as follows: 

1. The Office of Inter-American Affairs (estab- 
lished as the Office of Coordinator of Inter-Ameri- 
can Affairs by Executive Order No. 8840 of July 
30, 1941, and renamed the Office of Inter-American 
Affairs by Executive Order No. 9532 of March 23, 
1945), hereinafter referred to as the Office, is ter- 
minated. 

2. Thei'e are transferred to the Secretary of 
State all functions of the Director of the Office with 
I'esjiect to the following-named corporations, 

' 11 Federal Register 3941. 



namely, the Institute of Inter-American Affairs, 
the Inter-American Educational Foundation, Inc., 
the Institute of Inter-American Transportation^ 
the Inter-American Navigation Corporation, and 
Prencinradio, Inc., together with all rights and 
interests, authority, and obligations of the Director 
and of his predecessors with respect to such cor- 
porations. All other functions of the Director are 
terminated. The Director shall, prior to the effec- 
tive date of this order, take such steps as may be 
appiopriate and necessary on his part to effectuate 
the provisions of this order, including the turning 
o^ er to the Secretary of State of the capital stock 
of the said corporations. 

3. There are transferred to the Department of 
State (a) all of the functions of the Office with 
respect to the aforesaid corporations, (b) the duty 
of winding up any affairs relating to the Office and 
functions terminated by this order which shall re- 
main unliquidated on the effective date of this or- 



APRIL 21, 1946 



687 



der, (c) the, records, property, and funds of the 
Office, and (d) so much of the personnel of tlie 
Office as shall remain therein on the effective date 
of this order. All other functions of the Office 
are terminated. 

4. As soon as possible after the promul<>ation of 
this order the Secretary of State shall furnish the 
Director of the Office a list of such of the personnel 
of the Office as the Secretary shall determine to 
be required by the Department of State for the 
pui'pose of carrying out the provisions of this or- 
der; and the Director shall, prior to the effective 
date of this order, separate from the service or 
ti'ansfer to other Government agencies the person- 
nel of the Office excluded from such personnel list. 

5. Except as otherwise provided in this order, 
the provisions hereof shall take effect as of the 
opening of business May 20, 1946. 

6. All provisions of prior Executive orders in 
conflict with this order are amended accordingly. 

Harry S. Truman 
The White House, 
April 10, 19^6. 



Mexican Educator 
Visits U.S. 

[Released to the press Ai>ril 10] 

Adela Formoso de Obregon Santacilia, founder 
and president of the University for Women of the 
National University of Mexico, is now in the 
United States at the invitation of the Department 
of State to study university administration and 
educational institutions for women in this country. 
She is also interested in observing methods in this 
country for the prevention of blindness. She 
plans to spend three months in the United States, 
visiting educational and social-welfare centers in 
AVashington, Richmond. Philadelphia, New Yoik, 
Boston, Detroit, Ann Arbor, and Chicago. 

In addition to her work in founding and direct- 
ing the University for Women, the first institution 
of higher learning for women in Mexico. Sehora 
de Obregon has been one of the princijjal organ- 
izers of many other organizations for the further- 
ing of women's education and social-welfare work 
in her country. 



Funds for the Department's 
Intelligence Program 

STATEMENT BY THE SECRETARY OF STATE 

[Released to the press April 11] 

The Secretary of State announced on April 11 
his intention to seek a restoration of the sum of 
$4,150, i;3r. for the Department's mtelligence pro- 
gram which had been eliminated from its 1947 
budget by the House Appropriations Committee. 
The Secretary stated : 

"I cannot stress too strongly my tirm conviction 
tliat a well-organized research and intelligence 
service in the Department working in close col- 
laboration with the intelligence services of the 
Army and the Navy and the newly established Na- 
tional Intelligence Authority is not only an essen- 
tial instrumentality in the conduct of our national 
policy but represents a vital element of our national 
security system. The failure of the House Appro- 
priations Committee to appropriate any funds for 
this service makes it impossible for the Department 
to undertake even a modest foreign intelligence 
program, and, of course, virtually precludes any 
effective collaboration on the part of the Depart- 
ment with the National Intelligence Authority es- 
tablished by the President on January 2'2. I am 
hopeful that adequate funds for intelligence pur- 
poses will be voted by the Senate and ultimately 
agreed upon in conference." 



The Foreign Service 



Consular Offices 

The American Consulate General at Mukden, Man- 
churia, was opened to the public on March 27, 1946. 

Tlie American Consulate at Bremen, Germany, was 
reestablished on April 2, 1946. 

Confirmations 

On March 27, 1946 the Senate confirmed the nomina- 
tion of W. Averell Harriman to be Ambassador Extra- 
ordinary and Plenipotentiary of the United States of 
America to Great Britain. 

On April 11, 1946 the Senate confirmed the nomination 
of (ieorge S. Messersmith to be Ambassador Extraordinary 
and Plenipotentiary of the United States to Argentina. 



688 



DEPARTMENT OF STATE BULLETIN 



Publications 

of the DEPARTMENT OF STATE 

For sale by the Su})eriiife>i(lcut of Documents, Government 
Printing Office. Washington 25, D. C. Address requests 
direct to the Superintendent of Documents, except in the 
case of free publications, which may be obtained from 
the Department of State. 

A Report on the International Control of Atomic 
Energy, Pub. 2498. xiii, 61 pp. 20^. 

Report in-epared for the Secretary of State's Com- 
mittee on Atomic Energy by a Board of Consultants, 
March 16, 1946. 

Charter of the United Nations, Pub. 2472. 2 p\). 
Free. 

A poster containing tlie preamble and text of the 
United Nations Charter, and facsimile signatures of 
the American Delegation and of the chairmen or lead- 
ing members of other delegations to the San Fran- 
cisco conference. 

Why Lend to Britain ? Address by Clair Wilcox, 
Director, Office of International Trade Policy, De- 
partment of State, January 1946. Commercial 
Policy Series 82. Pub. 2468. 20 pp. 5^*. 

An explanation of United States proposals for the 
expansion of world trade and employment, with spe- 
cific reference to the jiroposed loan to the United 
Kingdom. 

The Credit to Britain — The Key to Expanded 
Trade, Address by Dean Acheson, Under Sec- 
retary of State, February 1, 1946. Commercial 
Policy Series 83. Pub. 2469. 16 pp. 10^*. 

An address explaining the importance of the proposed 
loan agreement with the United Kingdom, 

The Credit to Britain and World Trade. Ad- 
dress by Dean Acheson, Under Secretary of State, 
February 19. 1946. Commercial Policy Series 84. 
Pub. 2477. 21 pp. 

An addi'i'ss explaining the dependen<-y of free trade on 
Britain's ability to participate. 

The British Loan. Message of President Tru- 
man to tlie Congress, January 30, 1946. Address 
by Secretary of State Byrnes, February 11, 1946. 
Commercial Policy Series 8."). Pub. 248."). 26 pp. 
10^. 

Message of the President transmitting the financial 
agreement to Congress and reconniiending its imple- 



mentation. Address by Secretary Byrnes explaining 
the interdependence of the world economy and answer- 
ing objections to the financial agreement. 

"the defenses of peace": Documents Relating to 
UNESCO, the United Nations Educational, Sci- 
entific and Cultural Organization. Part II. 

Conference Series 81. Pub. 247.5. r)8 pp. 15^. 

Contains background report of the London confer- 
ence for the establishment of UNESCO; .summary 
and analysis of UNESCO ; selected quotations from 
iiddres.ses at plenary sessions of the London confer- 
ence ; congressional resolutions, 194.5 ; provisions of 
the Charter of the United Nations applicable to 
UNESCO: text of article I (Purposes and Functions) 
as approved by Commission I. 

Address by the Honorable James F. Byrnes, Sec- 
retary of State. February 28, 1946. Pub. 2492. 
14 pp. 5^. 

Statement of the necessity of cooperation among 
states in order to maintain peace; the United States 
and other nations must defend the principles of and 
accept their responsibilities under the Charter of the 
United Nations. 

The United States and the United Nations, Cou- 
ference Series 82. Pub. 2484. x, 54 pp. 15^. 

Report of the United States Delegation to the first part 
of the first session of the General Assembly of the 
United Nations, London, England, .January 10-Feb- 
ruary 14, 1946. Submitted to the President of the 
United States by the Secretary of State. 

Consultation Among the American Republics 
With Respect to the Argentine Situation, luter- 

American Series 29. Pub. 2473. 86 pp. 20^:-. 

Memorandum of the United States Government ex- 
plaining the military, political, social, and economic 
aspects of Argentine-Nazi complicity : analysis and 
comment on the Nazi-I<\iscist character of the Argen- 
tine regime. 

The Spanish Government and the Axis, Euro- 
pean Series 8. I'ub. 2483. 39 pp. lov*. 

A collection of 15 official documents, including letters 
exchanged between General Franco and Mussolini, be- 
tween Hitler and General Franco. 

A cumulative list of the pub/icatloii.s of the De- 
partment of State, from Oct. 1, 192.9 to Jan. 1. 
1946 (pub. 24^4), may he obtained from the De- 
partment of State. 



PUBLISHED WITH APPROVAL OF DIRECTOR OF BUREAU OF THE BUDGET 
0. S GOVERNMENT PRINTING OFFICE: 1946 



THE DEPARTMENT OF STATE 




VOL. XIV, NO. 356 



APRIL 28, 1946 



America's Solemn Obligation in World Famine Crisis 



Addresses by THE PRESIDENT, FIORELLO LA GUARDIA 
and HERBERT HOOVER 



page 716 



Transition From League of Nationsb to United Nations 

Article )).v HENRY REIFF page 691 

German Documents on Invasion of Norway, 1940 page 599 



The ILO Coal Mining Committee 



Article ))y MURRAY ROSS 



American News Abroad 

Bv ASSISTANT SECRETARY BENTON 



page 704 



page 722 



For complete contents 
see inside cover 



^©NX o^ 




U. S. SUPERINTENDENT OF DOCUMENTS 



THE DEPAKTMEINT OF STATE 



BULLETIN 



Vol. XIV •No 35G 




Publication 2519 



April 28, 1946 



For sale by the Superintendent of Documente 

U. S. Government Printing Office 

Washington 25, D. C. 

SuBscniPTiON: 

52 isBuee, §3.50; single copy, 10 cents 

Special ofTer: 13 weeks for $1.00 
(renewable only on yearly basis) 



The Departnxent of Slate BULLETIN, 
a weekly publication compiled and 
edited in the Division of Research and 
Publication, Office of Public Affairs, 
provides the public and interested 
agencies of the Government ivitli 
information on developments in the 
field of foreign relations and on the 
work of the Department of State and 
the Foieign Service. The BULLETIN 
includes press releases on foreign 
policy issued by the W hite House and 
the Department, and statements and 
aildresses made by the President and 
by the Secretary of State and other 
officers of the Department, as well as 
special articles on various phases of 
international affairs and the functions 
of the Department. Information con- 
cerning treaties and international 
agreements to which the United States 
is or may become a parly and treaties 
of general international interest is 
included. 

Publications of the Department, cu- 
mulative lists of which are published 
at the end of each quarter, as well as 
legislative material in thefieldofin ter- 
national relations, are listed currently. 



JUN 19 l^P 

Contents 



Page 

Transition from League of Nations to United Nations. 

Article by Henry Reiff 691 

German documents on the invasion of Norway, 1940 .... 699 
Tlie ILO Coal Mming Committee. 

Article by Murray Ross 704 

The United Nations 

Meeting of the Security Council: 

Discussion of Soviet-Iranian Matter 706 

Discussion of Present Regime in Spain 709 

International Organizations and Conferences 

Calendar of Meetings 711 

Activities and Developments: 

Council of Foreign Ministers 711 

The Far Eastern Commission 712 

The United States Delegation to the Fir.st Meeting of the 
International Labor Organization Industrial Committee 

on Iron and Steel 712 

The United States Delegation to the European and Mediter- 
ranean Air Route Service Conference 713 

The International Cotton Advisorv Committee 714 

UNESCO " 714 

♦Bermuda Telecommunications Agreement 714 

*Aviation Agreements: Peru, United Kingdom, Venezuela, 

Philippines, Greece 715 

The Record of the Week 

America's Solemn Obligation in \^'orld Famine Crisis: 

Address by the President 716 

Address by the Director-General of UNRRA 716 

Address b^' Herbert Hoover 717 

Individual Liberty — A Pan-American Ideal. By President 

Truman 720 

American News Abroad. By Assistant Secretary Benton . . 722 
Establishment of Diplomatic Relations With Yugo.slavia: 
Notes From the Secretary of State to tlie Yugoslav Charge 

d' Affaires 728 

Addresses of the Week 728 

Claims for American and Other Foreign Property in the 

Netherlands 729 

Czechoslovakia-Siam Status in Relation to the War .... 730 

LT.S. Liberty Ships Load Russian Grain for France 730 

Letters of Credence: Paraguay, Venezuela 730 

Vi.sit to Greece of the U.S.S. Missouri 731 

Cen.sorship Procedure for American Correspondents in Mos- 
cow 731 

Dispatches of Foreign Correspondents To Be Censored m 

Tehran 731 

PAU Committee To Draft Treaty Proposals for Rio Con- 
ference: Adojition of Resolution of Assistant Secretary 

Braden 732 

Removal of Alien Enemies 732 

Lend-Lease and Surplus Property Settlement With India . . 733 

•Treaty inf.irmation. 

{Continued on page 736) 



Transition From League of Nations to United Nations 



Article by HENRY REIFF 



10NG BEFORE the United Nations Conference on 
J International Organization met at San Fran- 
cisco in the spring of 1945 it was evident that 
establishment of a new general organization 
would necessitate the termination of the League 
of Nations. Aside from obvious political con- 
siderations, the presence among the 51 United Na- 
tions of 32 League members suggested the desira- 
bility of a speedy elimination of dual burdens 
and of possible conflicting obligations. In the 
generation since World War I the fvmctions, ac- 
tivities, powers, and duties of the League had pro- 
liferated amazingly both under the Covenant^ 
and in pursuance of several hundred separate 
treaties entrusting matters to the League.^ Dur- 
ing World War II the League had ceased to per- 
form most of its political functions, but it still 
carried on humanitarian and economic work of 
universal importance at Geneva, London, Wash- 
ington, and Princeton.* The Permanent Court 
of International Justice, with its seat at The 
Hague, and the International Labor Organization, 
functioning at Geneva and Montreal, both depend- 
ent upon the League in various ways, were still in 
being. It was generally felt that on dissolution 
of the League there should be as little interrup- 
tion as possible in the performance of the non- 
political and technical work. Termination of the 
League also would require severance of the inter- 
ests of the International Labor Organization, 
whatever the ultimate disposition of that organi- 
zation might be. Establishment of the seat of 
the new International Court of Justice at The 
Hague ^ indicated the desirability of using the 
premises occupied by the old Court. This pro- 
cedure would involve also some negotiation with 
the League. To these several ends, therefore, the 
conference at San Francisco in the Interim Ar- 
rangements adopted June 26, 19-15 " directed the 
Preparatory Commission, among its other tasks, 



to "formulate recommendations", for presenta- 
tion to the first General Assembly of the United 
Nations, "concerning the possible transfer of cer- 
tain functions, activities, and assets of the League 
of Nations which it may be considered desirable 
for the new Organization to take over on terms 
to be arranged". 

The United Nations Committees 

In pursuance of this mandate, and in further 
execution of the purposes involved, a series of five 
committees of the United Nations have dealt suc- 
cessively with the problem of transfer, each carry- 
ing the process of solution a few steps further: 

1. Committee 9 of the Executive Committee, 14 
members, whose report was adopted bj' the Execu- 
tive Committee October 12, 1945.' 

' Dr. Reiff is an officer in the Division of International 
Organization Affairs, Office of Special Political Affairs, 
Department of State. He served as a Tecbnical Expert 
with the Delegation of the United States to the United 
Nations Conference on International Organization at San 
Francisco. Part II of this article will appear in 
Bulletin of May 5. 

' Essential Facts about the League of Nations ( Infor- 
mation Section, Geneva, 1939, 10th ed., revised) ; D. P. 
Myer.s, Handbook of the League of Nations (Boston, 1935). 

^ Poioers and Duties Attributed to the League of Nations 
by International Treaties (League of Nations, C.3.M.3. 
1944. V, Geneva, July 1944) ; List of Conventions with 
Indication of the Relevant Articles Conferring Powers on 
the Organs of the League of Nations (League of Nations, 
C.100.M.100.ie4.5V, Geneva, Sept. 1945). 

' Report on the Wo^rk of the League During the War, 
submitted to the Assembly by the Acting Secretary-Gen- 
eral (Geneva, Oct. 1945, A.G.1946). 

° Statute of the International Court of Justice, art. 22. 

"Par. 4 (c). 

'PC/EX/96, Oct. 13, 1945; Report bit the Executive 
Committee to the Preparatory Commission of the United 
Nations, Nov. 12, 1945, part II, see. IX, and part III, ch. 
IX. The Executive Committee sat in London, Aug. 16 to 
Nov. 24, 1945. 



691 



692 



DEPARTMENT OF STATE BULLETIN 



2. Coiuiaittee 7 of the Preparatory Conuuission, 
51 members, whose report was adopted by the Pre- 
paratory Commission December 18, 1015.** 

3. A small special (interim) committee of eiglit 
members, appointed at the conclusion of the labors 
of the Preparatory Commission to enter on its 
behalf into discussion with the Leajrue of Nations 
Supervisory Commission for tlie purpose of 
establisliing a common plan for the transfer of the 
assets of the League.'' This committee operated 
in the interval between the meetings of the Pre- 
paratory Commission and the first part of tlie first 
General Assembly and also during that first part. 
It reported on February 1, 1946 to the ad hoc Com- 
mittee on the League of Nations established by tlie 
General Assembly.^" 

4. An ad hoc Committee on the League of Na- 
tions, established by the first part of the first 
General Assembly," 51 members, whose report, 
including the Common Plan, was adopted by the 
General Assembly, February 12, lOlti.'- 

5. A small negotiating committee of eight mem- 
bers set up by the General A.ssembly in pursuance 
of the report of the ad hoc Committee for the pur- 
pose of conferring with the League authorities, the 
Swiss and Netherlands authorities, and the Car- 
negie Foundation of the Netherlands on matters 
arising out of the transfer of the properties located 
at Geneva and The Hague, as envisaged in the 
Common Plan adopted." 

In consequence of the efforts of these several 
bodies, certain of the non-political and technical 



functions of the League are already in process of 
provisional assumption and continuance by the 
United Nations;" others it is expected will be as- 
sumed in the months to come; and the legal trans- 
fer of the material assets, it is also expected, will be 
consunnnated on or about Augvist 1, 1946." 

The United States, as an important member of 
the United Nations, as a party to numerous sep- 
arate treaties referring to the League or entrust- 
ing to it various non-political and technical func- 
tions, particularly those dealing with the control 
of narcotics,'" and as having displayed as a non- 
member of the League considerable interest in 
its humanitarian and economic work, particularly 
in the fields of health and women and children,^' 
was represented on each of these United Nations 
committees.'* 

In all cases where a committee or subccjmmittee 
contained fewer than the total of 51 members of 
the United Nations, care was exercised to pro- 
duce a composition for the body in proper pro- 
portion to the interests of states members of the 
United Nations which were still members of the 
League, states like the U.S.S.R., which were for- 
merly membei's, and states like the United States, 
which never had been members. Tliroughout the 
discussions, however, there was remai'kable unity 
of appreciation of the task to be performed. All 
the coinmittees felt the need for a clear-cut, 
s]ieedy solution of the problem of transition. 

Various governments still members of the 
League offered at different stages working pa- 



' PC/11, Dec. 17, 19-t.5, and PC/12, Dec. 15, 194.5; Journal 
no. 22, pp. 107-llU; Ri'twrt of the Preparatory Commission 
of the United Nations. Dec. 23, 1945, ch. XI. The Prepara- 
tory Commis.sion sat iu London, Nov. 24 to Dec. 24, 1945. 

"Report of the Preparatory Commission, ch. XI, sec. 3. 
The delegations of the following menihcis were repre- 
sented: Chile, China, France, Poland, South Africa, the 
Soviet Union, the United Kinydoni, and the United States. 

'"A/18, A/18/Add. 1. and A/18/A<kl. 2, Jan. 28, 1946; 
Journal no. 22: Snpp. no. 7-A/LN/2, p. 3. 

" Journal no. IG, Jan. 20, 194G, p. 316. 

'= A/28, Feb. 4, 1946 ; Journal no. 30. 

" The delegations represented on this committee were 
the same as those on the other small connnittee, footnote 
9 above. 

"Resolution implementing A/28 above adopted as E/10, 
Feb. 15, 1946, by the Economic and Social Council on Peli. 
16, 1946 {Journal of tlir Evonomie <nul f^ocia] Council. 
no. 11, p. 110). 

"'The date agreed on in the Comm<in Plan. 

" See P. M. Burnett, "International Bodies for Narcotics 



Control", BuLLKTiN of Oct. 14, 1945, p. 570; also statement 
of United States Delegate in UNCIO, Committee II/3, Doc. 
780, II/3/53, June 4, 1945 and the Report of the Rapporteur 
of Committee II/3, Doc. 861, II/3/.55 (1), June 8, 1945. 

" See amuml survey, "The United States and World 
Organization during 1939", in International Coneiliatirin, 
no. 361 (June 1940), and for previous years, see the 
same series. 

" (1) Executive Connnittee, Committee 9, Henry Reiff ; 

(2) Preparatory Commi.ssion, Committee 7, Dr. ReifC and 
John W. Halderman, Acting Assistant Chief, Division of 
International Organization Affairs, Department of State: 

(3) Committee on Transfer of League Assets. Ben.iamin 
Gerig. Chief. Division of Dependent Area Affairs, and 
Associate Chief, Division of International Organization 
Affairs, Department of State, A. H. Feller, Department of 
State, and Dr. Reiff; (A) Ad hoe Committee on League of 
Nations, Frank Walker, Alternate Delegate to General 
Assembly, Dr. Gerig. Dr. Reiff, and William F. Cronin. 
Assistant to Jlr. Walker: (5) Negotiating Committee, Dr. 
tierig. 



AfKIL 28, 1946 



693 



pei's " as bases fur discussion, and the secretariats 
of the Preparatory Commission, the United Na- 
tions, and the League of Nations supplied volum- 
inous data essential to the work of the connnit- 
tees. The presence in the United Nations of 3'2 
of the states which iire still members of the 
League enabled the conmiittees at all times to 
proceed with ample knowledge of what the 
League planned to do with respect to its own 
liquidation. This knowledge operated to permit 
both the United Nations and the League of Na- 
tions, within the spheres of their respective com- 
petences, to act with a considerable degree of 
timely concurrence. 

Development of Solution 

These United Nations committees were con- 
fronted witli the complex problem of devising a 
means to eifect a transition of limited scope 
between a general international organization 
about to be liquidated and a general international 
organization in process of being constituted. No 
precise precedent existed for solving that problem. 
The several committees charged with responsibil- 
ity in the premises felt their way along toward a 
solution, step by step. These steps can now be 
set forth seriatim. 

The Executive Committee of the Preparatory 
Commission and Its Committee 9 

1. At the beginning of the discussion in Com- 
mittee 9 of the Executive Committee it was agreed 
that under the terms of reference of the Interim 
Arrangements the United Nations could not con- 
cern itself M'ith the devising of legal and practical 
modes of dissolving the League of Nations. That 
was a task outside its competence and devolved 
squarely upon the League itself. 

2. But it was also agreed that, wherever possi- 
ble, the United Nations should within its com- 
petence facilitate a dignified and speedy dissolu- 
tion of the League. A result so achieved would 
be of mutual interest. 

3. Furthermore, complete agreement existed at 
the outset that only non-political and technical 
functions and activities and the assets of the 
League should be considered for transfer.-" Hence 
such political functions as the League might still 
possess under the Covenant or in pursuance of 
separate treaties would presumably cease upon 
dissolution of the League or be disposed of other- 



wise by the interested parties.-' In this connec- 
tion, three troublesome items may be mentioned: 

(a) No recommendation relating to mandates 
was made by Committee 9 or any of its successors. 
If any feature of the mandates system survives 
the termination of the League, it presumably will 
ajipear within the scope of the new trusteeship 
system. 

(J) Committee 9 made no recommendation to 
transfer the activities concerning refugees,-^ nor 
did the Preparatory Conunission. The first part 
of the first General Assembly dealt afresh with 
the subject of refugees.-^ 

(c) Although Committee 9 recommended 
transfer of League functions relating to League- 
supervised loans (of post - World War I signifi- 
cance),^^ Committee 7 of the Preparatory Com- 
mission made no I'ecommendation, believing that 
the subject could "be brought by any interested 
government before the Economic and Social 
Council".-'^ 

4. It was clear also at the beginning of the dis- 
cussions in Committee 9 that transfer of functions 
entrusted to the League under separate treaties 
involved enormously complex problems of a jurid- 
ical and practical nature. Hence that committee 
drew up a separate resolution,-" readopted with 

'" For example, in Committee 9 of the Executive Commit- 
tee : PC/EX/LN/3, Sept. 6, 194.5, Memorandum liy the 
Chinese Delegation on the future of the League of Nations ; 
PC/EX/LN/8, Sept. 13, 1945, Memorandum by tlie French 
Delegation on procedure for transferring functions aris- 
ing out of inlernatiunal agreements from the League of 
Nations to the United Nations Orjianization ; PC/EX/LN/ 
10, Sept. 18, 191.5, Proposal by tlie United Kingdom Dele- 
gation for a report on the transfer to the United Nations 
I if tlie functions of the League of Nations under various 
treaties and international instruments; and several other 
working papers resulting from comprehensive study by 
United Kingdom experts. 

""The future of the League of Nations Intellectual Coop- 
eration Organization was left to be disposed of when the 
contemplated United Nations Educational and Cultural 
Oi'ganization had been set up. 

^' e.g. those related to minorities, and numerous other 
political matters accvunulated since the peace settlements 
of 1919. 

--Report of the ExcciUive Committee, p. 108 n. 

■' See discussion on Report of the Third Committee on 
Refuges, K/i'i, Feb. 11, 1946, in General As.sembly, Feb. 
12 {Joiirniil no. 30, p. 535, and ihid.. no. 31, p. .544). 

'" Report of tlie Exceutire Committee, eh. IX, sec. 3, 
par. 9. 

"'Report of the Preparatory Commission, ch. XI, sec. 2. 

-"Report of the Exeeutive Committee, cli. IX, sec. 2. 



694 



DEPARTMENT OF STATE BULLETIN 



only stylistic changes by both the Preparatory 
Commission ^' and the first part of the first Gen- 
eral Assembly,-® providing (a) for the perform- 
ance by the United Nations of secretarial functions 
required under the treaties and (&) for the contin- 
ued exercise, provisionally, of such technical and 
non-political functions as the United Nations 
might wish to select. It is expected that in due 
course the parties to these two sets of treaties will 
wish to make the changes, where necessary, in their 
terms and in some cases, perhaps" to revise them 
altogether, (r) In the case, however, of treaties 
entrusting political functions to the League, provi- 
sion was made in the resolution for examination by 
the United Nations of any request by the parties to 
such treaties that the United Nations assume the 
exercise of any of those functions. 

The En Bloc and Selective Formulas 

5. Early in the deliberations of Committee 9 
it also became apparent that transfer of func- 
tions, activities, and assets of the League stem- 
ming from the Covenant could be achieved feasi- 
bly under one or the other of two principal and 
relatively simple formulas. After excising 
certain matters ^^ from consideration under eitlier 
formula, it would be possible either (a) to trans- 
fer eth bloc (or in tofo) all the remaining League 
functions, activities, and assets (together with 
certain of their attached liabilities), placing the 
burden on the United Nations to discontinue any 
function or activity transferred and to liquidate 
any of the assets and liabilities transferred; or 
(b) to authorize the appropriate organs of the 
United Nations to make a selection of functions, 
activities, and assets to be assumed, leaving to the 
League the task of liquidating such matters as 
had not been embraced in this scheme of transfer. 

Either formula was felt by most members of 
Committee 9 to be justifiable under the provisions 
of the Interim Arrangements. Each also had its 
advantages and disadvantages. In brief, the en 
bloc formula was thought to facilitate speedy ter- 
mination of the League. Under it, dates for the 
consimimation of various stages in the process 
of transition could be fixed with some degree of 

-^Report of the Prepaid tori/ Commission, ch. XI, sec. 1. 

^^ Journal no. 30, p. 52(i, and ibid., no, 34, p. 700. 

■"e.g. all political matters, activities concerning refu- 
gees and international bureaus, and the League Intel- 
lectual Cooperation Organization; and certain of the 
funds and liabilities of the League. 



certainty. It appealed to most of the govern- 
ments represented on the Executive Committee 
as permitting a neat, early, and definitive solu- 
tion. Certain delegations, opposing it, argued 
that it would operate to place the burden of liqui- 
dating the League on the United Nations and 
that it would imply a form of "succession" which 
they felt to be undesirable. 

On the other hand, the advocates of the selective 
formula felt that it alone could preserve for the 
United Nations all the freedom in devising new 
spheres of non-political and technical work which 
a new organization ought to have ; that if any assets 
were taken over they should not be encumbered 
with liabilities ; that the League could stay in be- 
ing or operate through some sort of liquidating 
body until the United Nations had made the selec- 
tion of functions and activities which it might 
wish to assume; and that meanwhile the League 
should bear the cost of maintaining those func- 
tions and activities as well as the risk arising out 
of the possession of valuable properties until their 
ultimate disposition could be determined. The 
process of selection of the functions and activities 
should not, in their judgment, take more than a few 
months, perhaps a year. 

The opponents of the selective formula felt, how- 
ever, that the process, depending as it would on 
prior constituting of the organs of the United 
Nations and their going into operation, could easily 
take some two or more j^ears. Meanwhile, the 
League itself or some licjuidating body authorized 
by it would have to stay in being until all League 
affairs had been wound up. States members of 
the United Nations which were also League mem- 
bers could not view with enthusiasm a solution 
which would likely entail for them dual financial 
and other burdens which might run on for several 
years until the League was terminated in fact 
and in law. 

In the meantime, for reasons of economy or 
otherwise, services of great value to the inter- 
national community might have to be discontinued 
by the League. Various of the technical experts 
.still employed l)y the League, facing an uncertain 
future, might find it necessary to seek other em- 
ployment, leaving important work unperformed. 
This loss of experienced personnel could hardly 
be afforded at a time when it was most desirable 
that there be no interruption in such non-political 
and technical work. 



APRIL 28, 1946 



695 



There could be little question that a going con- 
cern like the United Nations could find suitable 
uses for the plant and equipment of the League 
at Geneva in the futui'e, even if the headquarters 
were moved to some other place in Europe or to 
America. It could be used for a branch office, for 
some of the periodic jneetings, or as the seat o"f one 
or more specialized agencies. With this prospect, 
it was felt by most members of the Committee that 
it would hardly be equitable to require a moribund 
organization to bear the risk and expense of main- 
taining the jDlant beyond a minimum of time 
needed for transition. 

Underlying these considerations, for and against 
the two formulas, were others of a political, senti- 
mental, and fiscal character. Resentment toward 
the League of Nations for having allegedly failed 
in its mission ; opposition to any settlement which 
might involve a "return to Geneva" even in some 
tentacular form; fear, perhaps hope, that acqui- 
sition of the properties in Geneva might influence 
the choice of a site for the new headquarters — feel- 
ings such as these were implicit in certain of the 
arguments put forth in the committee. There was, 
however, a strong current of belief that undignified 
or inconsiderate treatment of the interests of the 
League and its members could hardly redound to 
the credit of the new Organization to which the 
loyalties of many goA'ernments and individuals 
were being transferred. Finally it might be ob- 
served that, if the United Nations acquired the 
material assets of the League, those members of 
the United Nations which had as members of the 
League contributed to the creation of those assets 
would, in equity, be entitled to some credit toward 
their financial obligations under the new Organi- 
zation — a consideration not without weight in a 
period of financial retrenchment. 

Adoption of So-called "En Bloc" Transfer 
Formula 

In the end. Committee 9 recommended and the 
Executive Committee adopted, with certain quali- 
fications, the en bJoc (or in toto) formula for trans- 
fer of League functions, activities, and assets.™ 
Throughout the deliberations in Committee 9 the 
representatives of the Union of Soviet Socialist 
Republics reserved their position with respect to 
the en bloc formula, and in the Executive Commit- 
tee they voted against adoption of the I'eport con- 
taining it. They preferred a restricted form of 



the selective principle.^^ In the Executive Com- 
mittee the Australian Delegation announced its 
preference for the selective principle and joined 
the Soviet Delegation in voting against adoption 
of the report.^- 

In all discussions of transfer of League assets 
until a satisfactory arrangement was achieved 
under the Common Plan the representatives of the 
United States reserved their position on the valu- 
ation of the buildings involved.^^ At all appro- 
priate times also they insisted that the discretion 
of the Secretary-General of the United Nations 
in engaging the services of any of the former 
League technical personnel remain completely un- 
fettered.''* 

The scheme of transfer as it emerged from the 
Executive Committee is set forth in the three sec- 
tions and one appendix contained in chapter IX of 
part III of its Report. Briefly, those documents 
embrace the following features : 

{a) Section 2 disposes of the problem of trea- 
ties entrusting functions to the League along the 
lines indicated above. 

(6) Section 3 surveys the functions, activities, 
and assets involved in the transfer and stipulates 
certain exceptions and qualifications to the prin- 
ciple of en bloc transfer. 

These exceptions and qualifications had become 
so numerous in the course of the deliberations of 
Committee 9 that the committee felt in its final 
drafting sessions that the. term in toto (or en 
bloc), as used in earlier drafts of the recoimnen- 
dations, could no longer be accurately used. 
Hence the term was stricken out of the recom- 
mendations ^^ as presented to the Executive Com- 
mittee. If a single term were desired to describe 
the quantum of functions, activities, and assets 
contemplated under these recommendations for 
transfer, residual would have been more nearly 
accurate. 

'° Report of the Executive Committee, p. 108. 

=" PC/EX/96, Oct. 12, 1945. 

=' Ibid. 

=" e. g. PC/EX/LN/27, Oct. S, 1945 ; PC/EX/LN/27/Corr. 
1, Oct. S, 1945 ; PC/LN/11, Dee. 8, 1945. 

'' Also with respect to engagement of former League 
personnel by the contemplated new international health 
organization (PC/LN/10, Dec. 5. 1945). 

^ Sec. 1 ; but the term was retained with respect to 
"assets and liabilities" as qualified in paragraph 28 of 
the accompanying report in sec. 3. 



696 



DEPARTMENT OF STATE BULLETIN 



(c) The appendix contains a brief statement 
of assets and liabilities of tlie Leaoue of Nations 
as of December 31, 1944. 

(d) Section 1 contains the so-called en Hoc 
formula, hedged with the restrictions finally 
agreed upon, in the following language : 

•'Tlie Plxecutive Cimnnittee, 

"Having considered the possibility of transfer- 
ring certain functions, activities and assets of 
the League of Nations which it maj' be consid- 
ered desirable for the United Nations to take 
over; and 

"Considering, after it had received the report, 
contained in Section 3, of a committee which had 
examined this problem, that it would be useful for 
the United Nations to state certain terms for this 
transfer; 
"Reconnnends : 

"1. that the functions, activities and assets of 
the League of Nations be transferred to the United 
Nations with such exceptions and qualifications as 
are made in the report referred to above, and 
without prejudice to such action as the United 
Nations may subsequentlj' take with the under- 
standing that the contemplated transfer does not 
include the political functions of the League, 
which liave in fact ah'eady ceased, but solely the 
teciinical and non-political functions." 

For the convenience of the Executive Committee, 
the conclusions of the report in section 3 were sum- 
marized in the following language which appears 
as a footnote to the above j)aragraph 1 : ^"^ 

''The Committee reconnnends tliat no political 
question should be included in the transfer. It 
makes no recommendation to transfer the activities 
concerning refugees, mandates or international 
bureaux. The contemplated transfer will not in- 
clude transfer of personnel. Transfer of assets and 
liabilities should imply neither profit nor loss for 
the United Nations. The pi'oblem of separating 
tlie finances of the International Laliour Organisa- 
tion from those of the League is left for later con- 
sideration. 

"Report of the Executive Committee, p. 108. 

"Consisting of the representatives of Poland (Mr. Mo- 
(lerow, chainnaii), the U.S.S.IJ. (Professor Stein), the 
United Kingdom (Mr. McKinnon Wood), iind E^iypt 
(Ahmed Saroit Bej-). 

'^Report of the Prciitinitoiii ('(iiiiiiiix.sinii. cli. XI. sec. 1. 



"T])e ti-ansfer of economic activities is limited 
to such work in this field as the United Nations 
might wish to continue; that of the health activi- 
ties will be subject to any decisions made in the 
future regarding a new health organisation; and 
that of the social activities would take place with 
the understanding that the question as a whole will 
have to be referred to the competent organ of the 
United Nations. The transfer of functions arising 
from treaties is contemplated only as far as is pos- 
sible and desirable." 

(e) The remainder of section 1 contains, infer- 
alia, a reconnnendation that continuity be main- 
tained in the work done by the League on eco- 
nomic and health questions and in relation to the 
control of the drug traffic. It recommended also 
that "the United Nations effectively assume at 
the earliest possible moment the powers and fimc- 
tions attributed to the League of Nations under 
international conventions concerning the control 
of the Drug Traffic". It further recommended 
that "the League of Nations, prior to the trans- 
fer, settle the question of conti'ibutions to be paid 
to the League of Nations by members in arrears, 
tlie question of the payment to the judges of the 
Permanent Court of International Justice of ar- 
rears in salaries and other claims". It also con- 
tains a suggestion by the Executive Committee: 

"that the Preparatory Commission should ap- 
point a small Committee to discuss with the Su- 
pervisory Commission of the League of Nations 
the parallel measures that should be adopted by 
the League of Nations and the LTnited Nations. 
This Committee might, where necessary, consult 
with representatives of the International Labour 
Office on all matters regarding the liquidation of 
the League of Nations which are of interest to 
the International Labour Office and which it was 
impossible to settle directly with the League." 

Revision by the Preparatoiy Commission 

Committee 7 of the Preparatory Commission, 
assisted by a highly competent small drafting 
committee,'' refined the product of the Executive 
Committee. It separated very clearly the ques- 
tion of transfer of f mictions and activities from 
the ([uestion of transfer of assets. It drew up 
two separate recommendations on the subjects. 
The recommendation relating to functions en- 
trusted to the League under separate tre;ities was 
sent foi'wai-(l with only stvlistic changes.^* 



APRIL 28, 1946 



697 



Assumption of Functions, Powers, and 
Activities of the League 

Early in the deliberation of Committee 7,^" a 
sharp distinction was made between the nature of 
the operation involved in so-called "transfer of 
functions and activities"' and the nature of the 
operation involved in the transfer of assets. In 
tiie latter case, there woidd be actual handing over 
by one organization to the other of certain build- 
ings, equii)ment, furnishings, and other properties. 
In the former case, it was contended, despite the 
language of the Interim Arrangements,*" there 
could be, in legal contemplation, only the cessa- 
tion of performance of function or activity by the 
League when its mandate expired and the taking 
up or assumjition of the performance of the same 
substantive tasks by the United Nations under its 
new mandates. The use of the term axxumption, 
it was argued, would avoid the implication of a 
legal continuity which did not exist. Although 
it was pointed out that no such implication neces- 
sarilj- arose out of the use of the term fmmfer 
and that use of the term assumption made a dis- 
tinction without a difference in effect, the Commit- 
tee, to satisfy doubts on the point, adopted the term 
assumption in its final recommendation on the 
subject.*^ It was also Ijelieved, at the outset of 
the discussion, that such a terminological change 
woidd meet in pait the objections of the Union 
of Soviet Socialist Republics to the Executive 
Committee's Report. 

Verbal magic could not, liowever, meet those 
objections. After the Committee had quickly 
agreed in principle to separate out from the 
problem of transfer the whole question of assets 
and lo deal with it through a special committee 
authorized to consult with the Supervisory Com- 
mission of the League,^'- the Soviet spokesman, 
Professor Stein, proposed to the Committee the 
following formula for '•assumption'' of League 
functions and activities : 

"that the Economic and Social Council should 
consider which of its organs might exercise cer- 
tain non-political functions formei'ly performed 
by the League of Nations." *^ 

This proposal was in effect a revival of the selec- 
tive formula with the added safeguard that, if 
the Economic and Social Council performed 
strictlj' within its Charter mandate, no function 

691621—46 2 



or activity previously exercised by the League 
and assumed by the Council could lawfully par- 
take of a political character. 

"In explanation of the proposed amendment 
Mr. Stein . . . nuiintained that the difference 
of opinion which had caused the Soviet Del- 
egation to vote against chapter IX in the Ex- 
ecutive Committee was a difference of opinion 
on sul)stance and not on presentation as had been 
suggested at the previous meeting. Recommen- 
dation 1 of the Report by the Executive Com- 
mittee was based on the principle that all non- 
political functions of the League should be trans- 
ferred to the United Nations. This principle was 
not acceptable to the Delegation of the Soviet 
Union on the grounds that no general distinction 
could l)e drawn between political and non- 
political functions. Separate, careful and con- 
crete consideration was necessary of each partic- 
ular function before any decision on the desirabil- 
ity of the ITuited Nations carrying out such a func- 
tion couhl be made. As the majority of the func- 
tions concerned would fall within the competence 
of the Economic and Social Council it was this 
body which should properly carry out such an 
examination.'' " 

New Formula of Transfer 

The formula i^roposed by Professor Stein was, 
of course, open to most of the objections voiced 
in Committee 9 of the Executive Committee when 
it discussed the selective principle. Committee 7 
of the Preparatory Commission was, therefore, 
not willing to accept it without considerable qual- 
ification. In the end, the formula lelating to 
functions and activities was a compromise be- 
tween the selective principle as restricted in the 
Soviet proposal and the so-called en Hoc princi- 
ple as restricted in the Executive Committee's 
Report. 

The metamorphosis of Professor Stein's pro- 
posal can be sketched briefly. An early sugges- 
tion that a time limit should be placed on the sur- 



'°PC/I,N/2, Nov. 28, 194.5; PC/LN/.'i, Nov. 20, 194."> 
and PC/LN/7, Nov. 30. 1945. 
"Par. 4 (c) quoted above. 
"PC/12, Dec. 1.-., 194.5. 
" PC/LN/2, Nov. 28, 1945. 
« PC/LN/4, Nov. 29, 1945. 
" PC/LN/5, ^■o^•. 29, 1945. 



698 



DEPARTMENT OF STATE BULLETIN 



vey b}' the Economic and Social Council *^ was 
droijped when it was agreed that "pending the 
adoption of the measures decided upon as a re- 
sult of this examination, the Council should, on 
the dissolution of the League,^" assume and con- 
tinue on a provisional basis, the work hitherto 
done" by the Economic, Financial, and Transit 
Department and the Health and Opium Sections 
of the League. Additional provision was made 
for "taking over and maintaining in oj^eration" 
certain functions of the League which could not 
fall within the orbit of choice exercisable by the 
Council, namel}', the Library, the Archives, and 
the completion of the League of Nations Treaty 
Serjes. It was also suggested that it was "desir- 
able to engage for the above-mentioned work on 
appropriate terms such members of the experi- 
enced personnel by whom it is at present being 
performed as the Secretarj^-General" of the 
United Nations might select. Having said this. 
Committee 7 added that it believed the foregoing 
reconunendations covered "all the parts of the 
Report ■•' by the Executive Committee relating to 
the transfer of functions, powers, and activities 
of the League of Nations, with the exception of 
paragraph 9 [relating to League-sponsored 
loans]."''* As so elaborated in Committee 7, the 
formula on assumption of functions and activities 
was adopted by the Preparatory Commission •"' 
and, with the necessary stylistic changes, by the 
General Assembly.^" 

" To Uie effect that tlie Council "should report to the 
General Assembly not later than the second part of the 
General Assembly's first session" (PC/LN/7, Nov. 30, 
1945). 

'" Changed in tlie General Assembly to "on or before 
tlie dissolution of the League" (A/2S, Feb. 4, 1946). 

" Meaning sec. 3 of ch. IX of part III of the compre- 
hensive Report. 

* See discussion immediately below. 

"Report of the Preiniratory Commission, pp. 117-lS. 

"A/28, Feb. 4, 1946; Journal no. 34, p. 708. 

"For brief description, see Powers and Duties Attrib- 
uted to the League of Nations by International Treaties, 
pp. 28-35, cited above, footnote 3. 

^-Report of the Exeeutive Committee, p. 111. 

" PC/LN/4, Nov. 29, 1945. 

" PC/LN/5, Nov. 29, 1945. 

'= PC/12, Dec. 15, 1945; Report of the PrvDoratorii Com- 
mission, p. 118. 

" A/28, Feb. 4, 1046. 



League-Sponsored Loans 

Another troublesome question disposed of at the 
Preparatory Commission related to League-spon- 
sored loans. °^ The Executive Committee recom- 
mended in i^aragraph 9 of section 3 of chapter IX 
of its Eeport that the United Nations should take 
over from the League its surviving functions un- 
der the several loan arrangements, declaring that 
"these functions are of a technical character and 
would involve no financial liability on the part of 
the United Nations".'*- The Soviet and Chinese 
Delegations in both the Executive Committee and 
the Preparatory Commission opposed the assump- 
tion of such a responsibility by the United Na- 
tions. As part of his original proposal dealing 
with functions and activities, described above, Pro- 
fessor Stein included a suggestion that the item 
relating to the loan functions be deleted from any 
new reconmiendation on the subject of transfer.'*^ 
His proposal, he said, "was based on the view that 
the public loans issued with the assistance of the 
League were in fact more or less political loans 
for which the United Nations should take no re- 
sponsibilit_y, even if that re.sponsibility amoimted 
to no more than the appointment of trustees".^* 
A compromise was thereupon effected, the recom- 
mendation of Committee 7, after excepting from 
the scope of the transfer formula "Paragraph 9", 
declaring: "The Preparatory Commission makes 
no recommendation on this subject; it considers 
that it can be brought by any interested govern- 
ment before the Economic and Social Council." ^' 
There the matter rested. The Eeport of the League 
of Nations Committee to the General A.ssembly 
contains no reference to the subject. ^° 



Reeducation in the American zone in Germany 
is progressing as fast as approved teachers and 
textbooks can be made available, the State Depart- 
ment reports. 

As of February 1. 88.5 percent of all children 
aged 6-14 were enrolled in 10,179 schools despite 
the fact that the shortage of teachers resulted in 
an average of 82 pupils per teacher. 

In the 444 secondary schools 105,000 students 
were receiving schooling in classes averaging 32 
pupils per teacher. 



APRIL 28, 1946 



699 



German Documents on the Invasion of Norway, 1940 



Telephone Message from Minister Brduer, Oslo, 
April 10, lO.'fO, 11 p.m. 

After the King this morning had dechired him- 
self ready to receive me imconditionally, I de- 
parted at about 11 o'clock, (icrnian Summer Time, 
by way of Hamar for Elverum, where I arrived 
about 4 p.m. German time. The meeting place was 
in a school building. The King received me at 
once and requested that Foreign Minister Koht 
be present at our conversation. However, I asked 
the King that I be allowed to speak to him at first 
alone, wliicli after some discussion was agreed 
upon. I then explained to him the situation and 
the circumstances which had brought about our 
occupation of Norw^ay. I emphasized in that con- 
nection that England was solely to blame. The 
King listened without contradiction, even ap- 
parently with a certain amount of agreement. 
I then told him that a change in the dynasty in 
Norway was not under consideration, but that, on 
the contrary, we considered it of importance in 
Norway, as in both the other Scandinavian coun- 
tries, that the dynasty should be preserved and 
strengthened. I then referred to the folly of the 
continuing military I'esistance in isolated places 
in Norwa}^ I said that yesterday, unfortunately, 
Oscarborg had had to be completely destroyed and 
that we would like to spare other places from suf- 
fering the same fate. For this it was necessary, 
howevei', that all resistance cease at once. I went 
into my proposal of the night and morning of 
April 9 and referred to the burden of guilt which 
the previous Norwegian Government had brought 
upon itself through refusing the proposals in our 
memorandum. I referred further to the lack of 
confidence on our part in this Government, which 
had taken a position repeatedly in the last several 
months which had to be regarded by us as favor- 
ing England in a one-sided manner and which had 
finallj^ culminated in the un-understandable re- 
fusal of our generous offer. We had no desire to 
mix in the internal political situation in Norway 
in any way. We did consider it of importance to 



know that there was at the helm in Norway a 
Government upon which we could count for an 
understanding of the necessity of the preservation 
of good relations between Germany and Norway 
and for an appreciation of the position of Ger- 
many. A Government liad been formed yester- 
day in Oslo by State Councilor Quisling, and it 
seemed proper to us that this man, whose Nor- 
wegian national attitude and whose understand- 
ing for us is well known, should be entrusted with 
the responsibility of government at this time. 

The King was visibly impressed, especially by 
the reference to the attitude of his brother, the 
King of Denmark, who by his radio address and 
by his position with respect to the German entry, 
had preserved his country in peace and had 
avoided unpleasantness for himself and his 
family. 

At the conclusion of our conversation, however, 
the King considered it necessary to renew contact 
with his Government and brought in Foreign 
Minister Koht for the end of the interview, in 
whose presence I repeated my views as previously 
outlined. 

The King and Herr Koht both promised me to 
acquaint the Prime Minister with the situation 
and, since I did not wish to wait for the decision, 
to give me the reply on the way back to Oslo by 
telephone. I had already desci'ibed this as neces- 
sary, since otherwise under the circumstances, de- 
cisions might be made on our side which would 
lead to certain consequences. 

These documents on the invasion of Norway, secured 
from the German Government files, are among the official 
papers which the Bitlletin is now publishing; th« German 
documents on Hitler's plans for the future of Norway 
and Denmark will appear in a later issue. For an article 
on and excerpts from a German handbook of propaganda 
directives and for tJie German documents on Sumner 
Welles' mission in 1940, see Bxjlletin of Feb. 24, 1946, 
p. 278, Mar. 3, p. 311, Mar. 10, p. 365, and Mar. 24, p. 459. 

These documents have been selected and translated by 
J. S. Beddie, an officer in the Division of Research and 
Publication, Office of Public Affairs, Department of State. 



700 



DEPARTMENT OF STATE BULLETIN 



I then departed at about (i : 15 p.m. tierman time 
from the Elverum school. At Eidsvokl the mes- 
sap:e reached me from Foreign Minister Koht, 
which I had had forwarded by the legation. It 
was to the effect tliat after a two-hour conference 
with the King, Foreign Minister Koht forwarded 
to me on tlie way to Oslo the folh)wing message : 

The King will name no Government heailed l)y 
Quisling and tliis decision was that of the Govern- 
ment unanimously. To my specific question, For- 
eign Minister Koht replied: "Resistance will con- 
tinue as long as possible." 

The I'esult, I think, can be explained by the fact 
that not only the Cabinet, but also the Storting 
assembled at Elverum, or at least part of it, had 
been made accjuainted with tlie matter. The real 
difficulty for the King and perluips also for the 
Cabinet was that no proper way could be found 
in order to bring about a summons to Quisling in 
consonance witli the Constitution. The desire to 
come to an agreement with us was no doubt strong, 
wliich became especially evident as I referred to 
l)ledges that we would make for upholding the 
integrity and independence of Norway now and 
for the future. In the presence of the crowd of 
heterogeneous elements assembled there and under 
the influence of parliamentary intrigues, the only 
course which could have clarified the situation 
could not, however, be taken. 

On the journey back to Oslo in the neighborhood 
of Haniar and Eykholm, troop movements of lim- 
ited numbers and road blocks were observed. I 
reported my observations to the militai-y com- 
mander. 

Conversation hetvyeen the Fiihrer and Director 
Hagelin, the Minister of Economics and Supply in 
the newly formed Norivegian National Govern- 
ment, at 11: 15 a.m. April 13, WlfO, with the Reich 
Foreign Minister and Under Secretary of State 
Ilahicht also present 

Hagelin reported that the operation in Norway 
had gone off well. Only one flaw appeared and 
that had been that the German paratroops arrived 
in Oslo too late as a result of cloudy weather. As a 
result the Government had been able to get away. 
Had the arrival of the Germans taken place ac- 
cording to plan, the King and the Govei-nment 
could have been taken jjrisoner and the order to 

'The Nazi Party in Norwa.v. 



cease fire would liave been issued and obeyed. It 
was regrettable that it had come out differently. 
However, some of the members of the Storting 
who had fled were now already returning, among 
others Bjornsen and the Commander of the Guard, 
whose name he didn't know. 

The Fiihrer read a Reuters report from Stock- 
holm which stated that Major Hvosleff, who had 
been named as Foreign Minister by the shadow 
Govermnent, had resigned and had arrived at 
Stockholm. Hagelin said that this must be a lie, 
for he himself had seen the telegram in which 
Hvosleff' had placed his services at the disposal of 
the ]iew Government. Hagelin had been in active 
service in Finland and had organized the SA of 
the Nasjonal Samling.^ 

He considered the problem of the position of the 
King as not yet settled. Unfortunately the Ger- 
man Minister had made his proposals to the King 
at the same time as Quisling, and he was convinced 
that if Quisling had gone to the King before 
Briiuer the affair would have come out better. 
However, the Quisling tiovei-nment laid great im- 
portance on coming to an agreement with the King, 
and he believed that it would be possible to achieve 
this by working through the Crown Princess. It 
must be admitted that the King was closely bound 
to the English and was anti-German. If an ar- 
rangement could not be made with him it could 
probably be made with Crown Prince Olaf. In 
reply to the Fiihrer's questioning Hagelin stated 
that conditions in Oslo itself were completely 
qinet. 

The Fiihrer then outlined the military position 
and said that on that day three and tomorrow four 
divisions would be in Norway, two and a half in 
Oslo itself. He had planned on two divisions for 
Denmark and ten for Norway and these figures 
could easily be increased without drawing on the 
army reserve. Seven divisions were still at his 
ready disposal. Narvik presented a difficult prob- 
lem since there was no communication with it. He 
did not believe that Sweden would permit the 
transit of German troops and arms over her rail- 
ways. In addition, the Norwegians had blown up 
bridges and tunnels so that he must use other 
routes, but that also had been foreseen. With the 
exception of Stavanger and Oslo, the airfields in 
Norway were exceptionally bad, and he had had a 
great deal of dilHculty in reconstructing the air- 
field at Trondlieini for military purposes. 



ArRIL 28, 1946 



701 



He was convinced that the English would try to 
land some troops here and thei'e. They wanted a 
sort of guerrilla warfare. That the counti-y 
would be completely destroyed thereby made no 
difference to tliem. The tragedy consisted of this, 
that through the destruction of railroads and 
roads the countrj- itself would be thrown into 
greatest want, since the peoj^le would lose their 
means of transportation. The Norwegians needed 
these communication lines worse than he did since 
his troops could be transported in other ways. 
Within the next few days he would have com- 
pletely barred the Kattegat to English war ves- 
sels. 

After some discussion of the technique of land- 
ing and loading of ships, the Fiihrer said that in 
a short time there wouldn't be an Englishman to 
be seen in Norway. They had attempted an air 
attack on Narvik in which one plane had been 
shot down. In a second attack on Stavanger nine 
more were shot down. They could not continue 
that much longer, but in the course of it Norway 
would be destroj'ed. 

Tlic Fiihrer then asked Hagelin whether he 
could estimate what might be the following of the 
Quisling regime. Hagelin said that this would 
amount to 15 percent of the population, including 
the most active elements. In discussing efforts at 
stabilizing the new Government, the Fiihrer said 
that the Quisling Government would have to se- 
cure the active support of certain groups who 
would have to declare their positions, such as the 
chambers of commerce, the merchants, the ship- 
ping interests, intellectual elements, professors, 
et cetera. Resistance was pure folly, and what 
would follow if it was continued would be 
terrible and fruitless. Many guiltless people 
would be thereby destroyed. It was evident that 
the English could no longer drive out the Ger- 
mans. The Germans were now occupying the 
country according to plan. Hagelin said that the 
King also would have given in had not new hopes 
been repeatedly encouraged by false reports. 

The Fiihrer considered whether he himself 
.should address a letter to the King in order to put 
the problem in front of liim and to show him that 
he would be forced to make a decision between two 
eventualities : Either to follow the example of 
Denmark where everything was quiet and in order 
and an atmosphere of friendship was develop- 
ing or to urge his country to a purposeless resist- 
ance and thereb}' commit everything to ashes and 



ruins. He inquired about the possibility of for- 
warding such a letter, and Hagelin said that he 
could guarantee that through him the letter would 
reach the hands of the King even if he were in 
Sweden. He had personal contacts with good 
friends of the King, especially Captain Irjens and 
his wife who were not active politically and who 
could approach the King at any time. Where the 
King was at the moment he did not know. The 
last report of his location had come from Elverum. 
As the discussion came to the proposal of the 
Swedish Legation to undertake the protection of 
Norwegian interests, the Fiihrer said that he 
wished to speak to the Norwegian Minister. The 
latter was thereupon invited to the Rei»h Chan- 
cellery. 

During the period of waiting the Fiihrer made 
some observations about the circles aroiuid the 
King which had led the King to make a false es- 
timate of the situation. He said that the little man 
in Norway, especially since he had had no military 
training, was inclined easily to put faith in the 
English lies, since he was totally unprepared to 
form a judgment of the military situation. In 
that way rimiors could ujiset everything and, for 
example, the report that Bergen had been occu- 
pied by the English fleet could rekindle into 
flame a resistance which had been once stamped 
out. The age of battle fleets was over, and Eng- 
land could no longer even maintain her fleet at 
Scapa Flow. 

The Fiilirer believed there was no longer any 
l^ossibility of making an impression on the King. 
Even in Sweden there was a totally false idea to 
the effect that England might possibly win the 
war. It would have to be made entirely clear that 
England could never win the war. Even if Ger- 
many lost the struggle, Russia would be the victor 
in the northern lands, but never England. The 
people were being deluded, and ni that connection 
the Jews in Sweden were taLing a large part. 
Hagelin again declared that there was certainly 
still a chance to make a deal with the King or the 
Crown Prince. The King had been under the 
influence of- those who surrounded him, who were 
a crowd of absolute weaklings who had lost their 
heads and were now running around like chickens 
in a chicken yard. This sort of people, said the 
Fiihrer, had no power of decision and never had 
the capacity to judge a situation correctly. Such 
weaklings had no presence of mind for deciding 
what has happened and what Mould be of some use 



702 



DEPARTMENT OF STATE BULLETIN 



and what not. He made some comparisons with 
the hajjpenings in Poland. At the suggestion of 
the Reich Foreign Minister that the King also 
might well have been sobered by the latest news, 
the Fiihrer said that new lies wei-e always being 
made up. Hagelin portrayed the King as not 
stupid even if he were also not very acute po- 
litically. The Quisling regime would certainly 
first of all attempt to come to an agreement with 
the King in order to calm the population. In the 
meantime in Oslo business activities were pro- 
ceeding quietly. 

The Fidirer noted, however, that we would un- 
fortunately have to destroy the radio station at 
Tromso by bombing since it was broadcasting regu- 
larly in English. 

Following a short discussion on the subject of 
Eussia and Finland, the conversation was inter- 
rupted as the Norwegian Minister had arrived. 



Aft«r Hagelin had been brought in again the 
Fiihrer asked him how large he estimated the mili- 
tary forces of Norway to be at the moment. Hage- 
lin said that they were not large. There were sev- 
eral regiments, but these had been completely 
mixed up and in part they were untrained. For 
the German Army they would certainly form no 
hindrance. The Fiihrer considered it sinful to 
attempt to make a stand with such forces and 
Hagelin was of the opinion that it was essential to 
bring this to the attention of the King. 

The Reich Foreign Minister again brought up 
the question of whether an attempt might be made 
through the King of Denmark, who, Hagelin said, 
had a strong influence on his brother. The Fiihrer 
concluded the interview with the remark that it 
made no difference to him who ruled up there. He 
was sending his troops in and that was the main 
thing. Our soldiers certainly did not conceive 
of the Norwegian troops as opponents. 

Hagelin requested the Fiihrer to name a military 
liaison officer to his Government and mentioned a 
Major Richter, Breslau, Holderstrasse 9, as espe- 
cially suited for the position since he had many 
friends in Norway. The Fiihrer agreed and gave 
(lie order that Major Richter should be summoned 
to Berlin. 

With this the conversation ended having lasted, 
with interruptions, from 11: 30 a.m. to 1: 1.") p.m. 

Berim, April 13. 19. 'fi 

Hewel 



Conversation hetween the Fiihrer and the Norwe- 
gian Minister Scheel on April 13, lOJfO. Also pres- 
e7\t^ the Reich Foreign Minister, Under Secretary 
of State Hahicht, and Foreign Office OfficialHewel 

The Reich Foreign Minister received Minister 
Scheel in the Reich Chancellery and informed him 
that the Fiihrer wished to speak with him on ac- 
comit of tlie uncertainty of the situation. AVith 
that they took themselves to the presence of the 
Fiihrer. 

The Fiihrer opened the discussion by asking 
what Government the Norwegian Minister was 
actually representing. Minister Scheel replied 
that he did not know himself. Thereupon the 
Fiihrer outlined to him the reasons for the entry 
of the German Army into Norway. The situation 
was very simple. He had gone in since he had 
learned that England intended to occupy Norway. 
Thanks to the talkativeness of Mr. Churchill and 
reliable reports which had reached him, he had 
complete knowledge of the English intention. No 
other course was open to him but to march into 
Norway, since it could not be pei-mitted that Eng- 
land should open a new theater of war there 
against the Reich. 

The King of Denmark had come to the cleverest 
and wisest decision. Germany had moved in there 
and would pay for everything. Favorable trade 
relations would be cultivated with Denmark. 
Denmark could send many things to Germany, 
and he would insure that Denmark would be able 
to secure from Germany whatever she had pre- 
viously secured from the Allies, even if Germany 
had to draw on Russia for the purpose. After 
the end of the war Denmark would get everything 
back. The German troops were conducting them- 
selves in a praiseworthy manner. There was no 
plundering and already friendly relations with 
the i^opulation were being formed. Thus Den- 
mark was completely unharmed by the war. If 
the English should undertake bombing attacks 
on Danish cities, every such attack would be 
aiiswered by a jDOwerful counterstroke. The same 
situation would have prevailed in Norway also 
if the King, inider the influence of irresponsible 
advisers, had not decided on a foolish course. He, 
the Fiihrer, did not wage war with kid gloves. 
In the meantime he had gotten four divisions over 
there. In Oslo alone, this evening, there were 
three divisions. Only a childish sort of adviser 
would counsel resistance against such force. The 



APRIL 28, 1946 



703 



whole thing was utter folly. If the Norwegians 
destroyed their railroads they were hurting them- 
selves, for they needed these means of transporta- 
tion for the upkeep of their country nuich worse 
than he did, wlio had other means of supplying 
his troops. Personally he regretted all this very 
much, for he did not wish to wage war against 
Norway. He wanted only to protect his own 
country against England. The neutrality of 
Norway would have been best for him. On the 
following day the German troops would pass to 
the attack. Any resistance would be broken 
by most barbarous means. The sacrifices in 
destruction and loss of life which Norwaj^ would 
have to suffer were to him personally a cause of 
boiuidless regret, but as the Norwegian King had 
decided on war, he, the Fiihrer, would wage war. 
To the question of Minister Scheel, whether the 
Fiihrer did not believe that all would be over 
quickly, the Fiihrer replied that he certainly be- 
lieved so, but that it would be a slow process to 
stamp out the small resistance units which had 
formed. No one could now drive us out of Nor- 
way, least of all the English. Minister Scheel 
said he did not know whether sufficient force had 
been on hand to prevent the English from making 
an attempt at landing in Norway. To this the 
Fiihrer replied that he had accurate information 
that Norway had known of the English plans for 
a landing, and that he was convinced that Nor- 
way had not undertaken to prevent it. But he 
was not one of those people who, as Mr. Chamber- 
lain expressed it, missed busses. He spoke of the 
Altmarh and protested against the practice of 
the smaller neutrals dealing with the belligerents 
with dissimilar policies. It was time that re- 
sponsible people even in Norway should remove 
the picture of the German people of 1918 from 
their minds. They were still confusing the Ger- 
man people of today with those of that day, when 
Germany was being governed by a lot of mer- 
cenary dogs. Today there were 83 million Ger- 
mans M'ho would not let themselves be treated 
so and who abpve all would not let themselves 
be treated worse than the English. The Nor- 
wegians should have made armed resistance in 
the Altmark case. We Germans had not violated 
Norwegian neutrality. German U-boats had not 
operated in Norwegian territorial waters, and if, 
as Herr Scheel believed, Norway was actually 
jDowerless against English attacks, he certainly 
could not allow these English attacks to take place. 



The tragedy for all these countries was that when- 
ever he was foiced to make certain demands upon 
some country or had to make threats against 
these countries, the English always appeared upon 
the scene and told the people in conti'ol: "He can 
do nothing. He is only bluffing. He is only trying 
to frighten you !" The result of foolish trust 
in these shameless English declarations was an 
endless amount of sorrow and ruin. He believed 
even today two thirds of the Norwegians put trust 
in the English insinuations. Minister Scheel said 
that he had a different opinion. The Fiihrer con- 
tinued that he had not willed this war. What 
had he done to the English and French? He 
had not made any demands of them ! Minister 
Scheel said that Norway had always adopted 
a correct attitude toward Germany. The Fiihrer 
disputed this and pointed to the attitude of the 
press in the small neutral states. In those states 
any fool could attack Germany and sling mud 
at the head of the German state. Had Herr Scheel 
ever seen that the head of the Norwegian state 
was attacked in the German press? Herr Scheel 
sought to show that the relations of Norway to 
Germany had been really very good and as for 
what appeared in the press, there was in Norway 
a considerable degree of freedom of the i^ress. 
Here the Fiihrer interrupted him and showed ex- 
amples indicating that the freedom of the press 
was very one-sided and that if an article favorable 
to Germany turned up, this was forbidden on 
the grounds of neutrality, while the most hostile 
articles on the opposite side were permitted under 
the motto of fi'eedom of the press. The Fiihrer 
also cited examples of this from the Belgian, 
Swiss, and Turkish press. 

To the Foreign Minister's question of whether 
Minister Scheel was in communication with his 
Government, whether he had sent telegrams or had 
an answer, Herr Scheel answered that he had had 
no word from his Government since the entry of 
the Germans. He didn't even know where it was. 
He supposed that it was in the neighborhood of 
the Swedish border. He had telegraphed by way 
of Stockholm but had had no reply. He returned 
once more to German-Norwegian relations and 
said that these had always been good, except for 
the Ossiewsky case, which had been very difficult. 
Also his personal relationships in Germany had 
been most pleasant. At this the Fiihrer said that 
Germany had not declared war on Norway. He 
{Continued on page 721) 



704 



DEPARTMENT OF STATE BlLLETIiS 



The ILO Coal Mining Committee 



Article by MURRAY ROSS ' 



THE INITIAL SESSION of the Coiil Mining; Com- 
mittee, first of the newly authorized tripar- 
I ite industrial committees of the International 
Labor Organization, took place in London from 
December 5 to 12, 1945. It was attended by rep- 
resentatives of governments and iirominent leaders 
of workers' and employers' organizations from 11 
of the 12 major coal-producing countries which 
comprise the committee, including Australia, Bel- 
gium. Canada, Fiance, India, Netherlands, Poland, 
South Africa. Turkey, the United Kingdom, and 
t he United States. During its six days of delibera- 
tion the committee covered various social and 
economic aspects of the coal industry. Its major 
actions consisted of the fornudation of a "mine- 
workers' charter'' for possible eventual adoption as 
an international code and the submission to the 
Governing Body of the International Labor Office 
of a set of recommendations concerning the future 
recruitment of labor for the coal industry. 

The meeting was held under the chairmanship 
of Leon Troclet, Belgian Minister of Labor and 
representative of member governments on the ILO 
(xoverning Body. The employers' and workers' 
groups of the Governing Body were represented 
respectively by Sir John Forbes- Watson, director 
of tiie British Employers' Confederation, and by 
Leon Jouhaux, general secretary of the French 

' llr. Ross is Assistant Cliief of the International Lalior 
Oi-frnnizatioiis Braiieli, Division of International Labor, 
Social anil Hi'iilth .Vftiiirs, Office of International Trade 
Policy, Deiiartnient of State. 

■Inland Transport; Textiles; Coal Mining; Petrolenni 
Production and Refining; Metal Trades; Iron and Steel 
Production ; and liuilding. Civil Engineering and Public 
Works. 

^ IntentntioiKit Ldhar Rcrirtr. vol. LII, nos. 2-3, Aug.- 
Sept., 104.'!. 

* For article on the Eumijean ("oal Orjianization by 
Wayne G. Jack.son, .see Rclletin of Dec. 2, ItUf), 13. 87!). 



Confederation of Labor. The United States Gov- 
ernment was represented by Witt Bowden, econo- 
mist in the Department of Labor, and George A. 
Lamb, assistant director of the Bureau of Mines, 
Department of Interior. Robert T. Koenig, 
president of the Ayrshire Collieries Corporation, 
and H. J. Connolly, president of the Pennsylvania 
Coal Company, represented United States em- 
ployers. Thomas Kennedy, secretary-treasurer of 
the United Mine Workers of America, and John T. 
Jones, president of district 16 of the United Mine 
Workers of America, represented United States 
workers. 

On the basis of its experience since 1919, the 
ILO had come to the conclusion that the amount 
of attention that could be devoted to the social 
problems of specific industries by its annual con- 
ference was necessarily so restricted that addi- 
tional machinery to cope adequately with these 
problems was desirable. As a result, the Governing 
Body took the step in January 1945 to establish 
seven major industrial committees - for the pur- 
jjose of paying closer attention to particular in- 
dustries and in this way to give practical eti'ective- 
ness to its previously evolved general principles.^ 
Because of the intrinsic importance of the coal 
industry to all industrial reconstruction, the Coal 
INIining Committee was selected as the first one 
to convene. The Governing Body of the ILO had 
placed two questions on its agenda : (1) Tiie social 
problems of the industry during the transition 
from war to peace; and (2) future international 
cooperation concerning social policy and its eco- 
nomic foundations in the industry. In choos- 
ing these topics great care was exercised to com- 
plement the work of tlie European Coal Organi- 
zation and to avoid overlapping jurisdictions.^ 

Tlie conference sessions were held in an atmos- 
phere dominated by the dire fuel shortage, the 



APRIL 28, 1946 



705 



impending nutionulizution of coal mines in the 
United Kingdom and France, and the acute short- 
age of properly trained workers in several of the 
countries represented. In the course of their in- 
troductory remarks, the Governing Body repre- 
sentatives at the session urged the delegates to 
establish the conunittee as a "working party" 
taking practical decisions leading to action, rather 
than merely passing general resolutions. In this 
connection it was pointed out that, in addition to 
refei'ring its resolutions to the ILO for further 
exploration or for embodiment in an international 
convention, the conunittee could bring agreed 
decisions directly to the attention of governments 
concerned for approval and implementation. 

The emploj'ers' delegates to the committee, sev- 
eral of whom were in an anomalous position because 
of the impending nationalization of the coal in- 
dustry in their countries, expressed the attitude 
that the most valuable results from the conference 
would probably be an exchange of views and the 
e.stablishment of a reliable fact-finding agency. 
The woi-kers' delegates urged concentration and 
effective practical action on the problems of work- 
ing hours, safety measures, and similar social and 
economic issues. Speakers of all groups and coun- 
tries present stressed manpower deficiencies as the 
industry's basic problem. To expedite action, two 
subcommittees were established, the first to deal 
with the question of manpower and the second to 
explore social conditions with special reference to 
hours of work. The long-term program for the 
coal industry was left for consideration by the 
steering subconnnittee of the group. 

After due consideration of the pressing prob- 
lems facing the coal industry, the .subcommittee 
on manpower pi'oposed a resolution recognizing 
that prisoners were employed in several European 
countries in order to alleviate fuel scarcity caused 
by the war and asking the ILO to advise member 
governments to stagger prisoners' return so that 
employers would have ample warning to make the 
necessary replacements and avoid dislocation. 
The resolution also recommended that where gov- 
ernments derived financial profit from the differ- 
ence between wages paid to them by employers for 
prisoners and the cost of maintaining the pris- 
oners, all such profits should be used for the general 
benefit of the mining community. Although the 
American, Australian, and Canadian workers' 
delegates expressed their opposition to the em- 
ployment of prisoners in mines as morally unsound, 

6911521—40 ;! 



they appreciated the position of formerly occupied 
countries. The resolution was adopted without 
record vote. 

On the subject of manpower recruitment, the 
subcommittee recommended that the ILO be 
asked to undertake an appropriate inquiry, in- 
cluding the preparation and circulation of a ques- 
tionnaire on which member governments could 
give their views as well as the views of national 
emjDloyers' and workers' organizations. The re- 
sults would then be submitted to the committee's 
ne.xt session. The subcommittee also proposed a 
resolution recommending that miners be granted 
"more favorable conditions of life than those 
enjoyed in other industries" and that govern- 
ments undertake a publicity campaign to present 
mining "in its true light" and to remove present 
"unfavorable public prejudice." Another unan- 
imously adopted resolution requested the ILO to 
start an inquiry which would provide the com- 
mittee with information necessary for the study 
of social problems and certain economic and tech- 
nical aspects of the coal industry. As part of 
the inquiry, a questionnaire to the member gov- 
ernments is to include special reference to the 
mechanization of mining. It was felt that these 
preliminary steps should precede any recommen- 
dation by the committee on the subject of the 
utilization of available resources in the coal in- 
dustry. 

The subcommittee on minewoi'kers' charter, in 
spite of wide differences of opinion, was able to 
reach substantial agreement on all major points. 
It offered the following statement of eight prin- 
ciples designed to maintain stable employment, 
miners' social welfare, and adequate recruitment : 
stabilization of coal production and use, and the 
development of alternative uses of coal; wages 
attractive in comparison with the general wage 
level, and paid holidays; a lower maximum work- 
week than in other industries; adequate safety 
provisions and compensation schemes; social bet- 
terment; adequate pensions; training schemes 
for young recruits; cooperation among all inter- 
ests involved, including collective bargaining. 
The subcommittee also passed, with some absten- 
tions, a recommendation to the effect that inter- 
national agreement between coal-producing coun- 
tries to remove unfair competition would facili- 
tate implementation of the above principles. 

{Continued on page 727) 



The United Nations 



Meeting of the Security Councir 

DISCUSSION OF SOVIET-IRANIAN MATTER 



Letter From the Iranian Ambassador to tlie Presi- 
dent of the Secwrity Council ^ 

New York, 15th April, 191,6. 
Sir, 

On April 9, 194G, I had the honour to state, in 
accordance with the instructions of my Govern- 
ment, its position regarding the request of the 
Soviet Representative on tlie Security Council 
that the Council remove from its agenda the 
matters relating to the continued presence of 
Soviet troops in Iran and the interfei-ences in the 
internal affairs of Iran. In my letter, I informed 
the Council of the desire of my Government that 
these matters remain on its agenda as provided by 
tlie resolution adopted on 4 April 1946. 

Yesterday, April 14, my Government instructed 
me to make to the Security Council the following 
statement : 

"As a result of the signature of the agreement 
between the Iranian Government and the Govern- 
ment of the Soviet Union, it has been agreed that 
the Red Army evacuate all Persian Territory by 
the 6th May 1946. The Iranian Government has 
no doubt that this agreement will be carried out, 

' In session since Mar. 25, 1946 at Hunter College in New 
York, N. Y. 

'Read by the President, Dr. Quo Tai-Clii, before the 
32d meeting on Apr. 15. 

'Edward R. Stettinius, .Ir. These reniarljs were made 
liefore the 32d meeting on Apr. 15, immediately following 
the Soviet member's remarlcs to the effect that since the 
Iranian Government understands that no useful purpose 
can be served by having the Iranian matter on the agenda, 
the Council should decide to remove the matter from the 
agenda. 

706 



but at the same time has not the right to fix the 
course the Security Council should take." 

This morning I received a further telegram from 
my Government reading as follows : 

"In view of the fact that the Soviet Ambassador 
has again today 14 April categorically reiterated 
that the unconditional evacuation of Iranian ter- 
ritory by the Red Army will be completed by the 
6 May 1946 it is necessary that j'ou immediately 
inform the Security Council that the Iranian Gov- 
ernment has complete confidence in the word and 
pledge of the Soviet Government and for this 
reason witlidraws its complaint from the Security 
Council." 

I have the honour [etc.] 

Hussein Ala, 
Iranian Ambassador. 
His Excellency 
Dr. Quo Tai-Chi, 

President of the Security Ootmcil, 

New York. 

Remarks by the U. S. Representative ^ 

The United States is naturally pleased to learn 
that the Soviet Union and Iran consider that the 
issues between them are in the course of being 
solved in a manner satisfactory to both parties. 

The difficulties between the Soviet Government 
and the Iranian Government have twice been 
brought to the Council's attention. 

On the first occasion the Iranian Government 
complained of activities of the Soviet troops on 
Iranian territory, which it contended were not 
authorized or permitted by the Tripartite Treaty 
of 29 January 1942, and interfered with the 
sovereignty of Iran. 



APRIL 28, 1946 



707 



On the second occasion the Iranian Government 
complained of the continued presence of Soviet 
troops in Iran, without its approval, beyond the 
date stipulated for their withdrawal in that treaty. 

In the view of the United States Delegation tlie 
complaints of the Iranian Government were prop- 
erly brought to the Council's attention under 
Article 34 of the Charter. 

It is the clear duty of the Council to receive the 
complaint of any sovereign State that foreign 
troops are being used on its territory in a manner 
not authorized or permitted by treaty. It is the 
clear duty of the Council to receive the complaint 
of an}' sovereign State that foreign troops are con- 
tinuing to i-emain on its territory, without its 
consent, beyond the date authorized by treaty. 

Such complaints pi-esent grave issues under 
Article 2 of section 4 of the Charter of the United 
Nations concerning "the threat or use of force 
against the territorial integrity or the political 
indeijendence of any State or in any other manner 
inconsistent with the jjurposes of the Charter". 
When such complaints are presented to the Coun- 
cil, clearly it is not permissible for the Council 
to take the position that the continuation of the 
conditions complained about would not endanger 
international jDeace and security. 

The Council had before it on 4 April, when it 
adopted the resolution on the Iranian matter, the 
assurances given to it by the Soviet Government 
that the withdrawal of Soviet troops had com- 
menced and would be completed by 6 May, and that 
this withdrawal was not conditional upon any 
other matters being discussed by the two Gov- 
ernments. These assurances, and the willingness 
of the Iranian Government to accept them, were 
the basis upon which the Council acted. 

I emphasize these facts that these assurances 
were given to the Council itself and that the ac- 
tion of the Council on 4 April was to leave the 
matter on the agenda until 6 May in the hope and 
belief that the withdrawal of Soviet troops by that 
date would have disposed of all phases of the mat- 
ter before the Council. 

Tlius, the assurances given to the Council and the 
action taken by the Council are interdependent. 

We are now asked to consider this matter again, 
and prior to 6 May. It is not represented to us 
that the situation, in connection with the with- 
drawal of troops, has in any manner changed since 
4 April. Neither the Soviet Government nor the 
Iranian Government suggests that the assurances 



will not be carried out, nor that they will be car- 
ried out sooner than was anticipated on 4 April. 

To reconsider the case at this time would raise 
many difficult and grave questions, which my Gov- 
ernment hopes and believes will be solved by the 
withdrawal of troops, in accordance with the So- 
viet assurances. We do not see that any advan- 
tage would be gained by going into such questions, 
at this interim phase, of the matter. 

For these reasons, my Government does not be- 
lieve that there are valid grounds for changing the 
procedure, adopted by the Council on 4 April, for 
the disposal of the Iranian case, and will therefore 
not support the motion to delete the Iranian mat- 
ter from the agenda at this time. 

We sincerely hope that on 6 May, upon being 
informed that the withdrawal of Soviet troops 
from Iran has been completed, the Council will 
be able to drop the matter from the agenda. 

Here follow] remarks hy other representatives. 
Mr. Stettinius later in the meeting made the 
following remarks 

Before we adjourn and before further discus- 
sion, in which I hojae to take part, I must make it 
clear to the Delegate for the Soviet Union and to 
the Council that I have made no proposal in our 
discussion this afternoon. I have merely at- 
tempted to explain to the Council the reasons why 
it was impossible for the United States Govern- 
ment to support a request that was put before the 
Council, by the Delegate for the Soviet Union. 

Letter fronh the Secretaiy-General to the President 
of the Security Covmcil Conceiving the Question of 
the Retention of the Iranian Case on the Agenda 
of the Security Council ^ 

April 16, 19Jfi. 

I feel it desirable to present to you my views 
with respect to the legal aspects of the question 
of the retention of the Iranian case on the agenda 
of the Security Council. The decision taken by 
the Council in this matter may institute an im- 
portant pi'ecedent for the future, and it seems to 
me advisable to consider it most carefully in order 
to avoid a precedent which may cause later 
difficulties. 

I submit the views herein expressed to you for 
such use as you may care to make of them. 

'Read by the President, Dr. Quo Tai-Chi, at the 33d 
meeting on Apr. 16. 



708 



DEPARTMENT OF STATE BULLETIN 



On March 18, 1946, the Iranian representative 
brought to the attention of the Security Council, 
pursuant to Article 35, paragraph 1, of the Char- 
ter, "a dispute between Iran and the U.S.S.R., the 
continuance of which is likely to endanger the 
maintenance of international peace and security." 
On April 8 the Council "resolved that the Council 
defer further proceedings on the Iranian appeal 
until May 0." On April 15 the Iranian represent- 
ative informed the Security Council that the Iran- 
ian Government "withdraws its complaints from 
the Security Council. Previously the Soviet rep- 
resentative had requested "that the Iranian ques- 
tion sliould be removed from the agenda of the 
Security Council." 

The issue considered yesterday in the Security 
Council is whether the question can properly be 
retained on the agenda in view of the fact that 
both parties now have requested that it be re- 
moved. 

The powers of the Security Council are set forth 
in Chapter VI of the Charter in the following 
manner : 

Under Article 33 the Council may call upon the 
parties to a dispute to settle it by negotiation, 
enquiry, etc. Under Article 34 it may investigate 
any dispute or situation which might lead to inter- 
national friction or give rise to a dispute. Under 
Article 30 it may recommend appropriate proce- 
dures for the settlement of a dispute under Arti- 
cle 33, or of a situation of like nature. Under 
Article 37 the Council may decide to take action 
under Article 36 if it deems that the continuance 
of a dispute is in fact likely to endanger the main- 
tenance of international peace and security. 
Finally, under Article 38 it may, if all the parties 
to any dispute so request, make recommendations 
to the parties with a view to pacific settlements. 

It is to be noted that the Security Council can 
be seized of a dispute or situation in one of three 
ways: 

1. Under Article 35 by a state. 

2. Under Article 34 by the Security Council 

itself. 

3. Under Article 99 by the Secretary-General. 

In the present case. Article 99 is obviously not 
applicable. The Security Council has taken no 
action under Article 34, i.e. it has not ordered an 



' Mailc liefore the 3.''.(1 inct'tiiig (in Apr. IG. 
from vei-biitim minutes. 



Printed 



investigation, which is the only action possible 
imder that article. It is therefore not applicable 
at this time and cannot become applicable until 
an investigation is ordered. 

The Council was originally seized of the dispute 
under Article 35, paragraph 1. Now that Iran 
has withdrawn its complaints, the Council can 
take no action under Article 33, 36, 37 or 38, since 
the necessary conditions for applying these articles 
(namely, a dispute between two or more parties) 
do not exist. The only Article under which it can 
act at all is Article 34. But that Article, as has 
already been said, can only be invoked by a vote 
to investigate, which has not been taken or even 
suggested in this case. 

It is therefore arguable that following with- 
drawal by the Iranian representative, the question 
is automatically removed from the agenda, unless : 

a. The Security Council votes an investigation 
under Article 34, or 

b. A member brings it up as a situation or dis- 
pute under Article 35, or 

c. The Council proceeds under Article 36, par. 
1, which would appear to require a preliminary 
finding that a dispute exists under Article 33, or 
that there is "a situation of like nature." 

An argument which may be made against the 
view of automatic removal from the agenda is that 
once a matter is brought to the attention of the 
Council, it is no longer a matter solely between 
the original jiarties, but one in which the Council 
collectively has an interest, as representing the 
whole of the United Nations. This may well be 
true; but, it would appear that the only way in 
which, imder the Charter, the Council can exercise 
that interest, is under Article 34, or under Article 
36, paragraph 1. Since the Council has not chosen 
to invoke Article 34 in the only way in which it 
can be invoked, i.e. through voting an investiga- 
tion, and has not chosen to invoke Article 36. para- 
graph 1, by deciding that a dispute exists luider 
Article 33 or that there is a situation of like na- 
ture, it may well be that there is no way in wliich 
it can remain seized of the matter. 

Trygve Lie. 

Beniarks by the U. S. Representative ^ 

Mr. President, the Soviet Delegate yesterday 
questioned the motives of the United States in this 
case. I am genuinely sorry he has done this, 



APRIL 28, 1946 



709 



because I feel deeply that tlie membership on 
this great Council carries a tremendous responsi- 
bility. In my view, we should all avoid indulging 
in accusations against the motives of any of the 
United Nations. 

My Government, throughout the conduct of this 
so-called Iranian case, has had only one motive 
in mind at any time, and that was fulfilling the 
objective of the Charter of the United Nations. 
Both Secretary of State Byrnes and I have scru- 
pulously refrained from questioning the motives 
of any member, and I shall therefore not pursue 
this aspect of the matter further but shall turn 
to the merits of the actual question before us. 

The question before us is the request of the So- 
viet Rei^resentative that the case should be stricken 
immediately fi'om the agenda of the Council. I 
would like to point out in this connection that the 
Soviet Representative continues to maintain the 
contention set forth in his letter of April 6th ^ that 
the entire Council action, including the resolu- 
tion of April 4th,- was illegal and not in conform- 
ity with the Charter. I think the Council, in con- 
sidering the Soviet proposal, should not allow the 
subsequent Iranian request received on April 15 
for the withdrawal of the complaint to divert its 
attention from this unjustifiable charge. 

It has been stated that the mere withdrawal of a 
complaint by a member of the United Nations in 
itself prevents the Council from retaining the 
question on its agenda. I cannot agree with this 
interpretation that it is not within the power of the 
Council to continue this matter on the agenda 
despite the withdrawal of its complaint by the 
Iranian Government. 

In view of this power of the Council, the only 



question is whether or not the present circum- 
stances justify a reversal of the resolution of April 
4th. In the opinion of the United States Gov- 
ernment — and apparently of other members who 
spoke to this point yesterday — it would be unwise 
for the Council to drop the Iranian matter from 
its agenda, in spite of the fact that the parties 
concerned have requested to do so. 

I believe it has been made clear to the members 
of the Council that the principal factor in this 
case, and the one which, from the Iranian Gov- 
ernment's own standpoint, led it to bring this case 
fii-st to this table, has been the actual presence of 
Soviet forces in Iran after the expiration of the 
Tripartite Ti-eaty and against the protest of the 
Iranian Government. The Council cannot ignore 
the fact that the sudden reversal by the Iranian 
Government of the position which it has stead- 
fastly maintained until yesterday occurred while 
Soviet troops were still physically in Iran. 

I would like to add one more point, Mr. Presi- 
dent. The retention of this matter on the agenda 
as provided by the resolution of April 4th does not, 
as some members of the Comicil have implied, con- 
stitute any infringement of the sovereign rights or 
independence of Iran, nor interfere in the agi'ee- 
ments already reached between the parties. On the 
contrary, it affords to them the opportunity of 
demonstrating to the Council and to the world 
that the confidence reposed by the Council in the 
assurances received in this matter is fully justified. 
Procedures set forth in the resolution of April 4th 
will make it possible on May 6th or before, if the 
withdrawal is completed before that date, for the 
Council to dispose of this case in conformity with 
its responsibilities under the Charter. 



DISCUSSION OF PRESENT REGIME IN SPAIN 



Eemwks by the U. S. Representative ^ 

Mr. President, the hour is late. I shall therefore 
be brief. I am sure that many of us would wish 
an opportunity to study the statements that have 
been made by the Polish Delegate. Therefore, 
without specific reference to the Resolution that 
the Polish Delegate has presented to the Council,* 
or without specific reference to the views of other 



Delegates who have spoken this afternoon, I 
would like at this time to state briefly the basic 
position of the United States of America in 
regard to the question before the Council. 

'■ BuixETiN Of Apr. 21, 1946, p. 6.58. 
= Bulletin of Apr. 14, 1946, p. 621. 
' Made before the 34th meeting on Apr. 17. 
'The text of the resolution proposed by Oscar Lange, 
Polish Ambassador to the United States and Representa- 



710 



DEPARTMENT OF STATE BULLETIN 



The attitude of my Government in regard to 
tlie governing regime in Spain has been clearly 
stated on frequent occasions. More than a year 
ago, the late President Roosevelt, in a letter that 
has already been referred to several times this 
afternoon, wrote our newly appointed Ambassa- 
dor Armour in Spain, and stated that although 
we had the most friendly feelings for the Spanish 
people, we could take no measures, in economic 
or other fields, to demonstrate that friendship 
so long as the Franco regime remained in power. 
He wished to make it abundantly clear that his 
action in sending an Ambassador to Spain was not 
to be misconstrued as indicating approval of the 
Franco regime. In that letter, part of which 
the Polish Re|3resentative quoted this afternoon 
in his remarks, Mr. Roosevelt said : "Having been 
helped to power by Fascist Italy and Nazi Ger- 
many, having patterned itself along totalitarian 
lines, the present regime in Spain is naturally the 
subject of distrust by a great many Americaji 
citizens who find it difficult to see the justifica- 
tion for this country to continue to maintain re- 
lations with such a regime. Most certainly, we 
do not forget Spain's official position and assist- 
ance to our Axis enemies at a time when the for- 
tunes of war were less favorable to us, nor can we 
disregard the activities, aims, organizations, and 
public utterances of the Falange, both past and 
present. These memories cannot be wiped out by 



actions more favorable to us, now that we are 
about to achieve our goal of complete victory over 
those enemies of all humanity. The present Span- 
ish regime identified itself in the past by its public 
expressions and by its acts." That is the end of 
the reference to Mr. Roosevelt's letter to which I 
referred.^ 

It is well known that we have gladly sup- 
ported the resolutions at San Francisco and 
at Potsdam," and the resolution passed by the 
General Assembly in London '' last January, all 
of which have been referred to this afternoon. 
So long as the present regime I'emains in power 
in Spain, that country will not be permitted to 
become a member of the United Nations. 

My Government has two broad objectives with 
regard to the situation in Spain. The first is that 
the Franco regime and its trappings and affiliated 
organizations, such as the Falange, be removed 
from power by the Spanish people at the earliest 
possible moment in order that Spain may resume 
its rightful place in the family of nations. Our 
second objective is — and I am sure that this is also 
the earnest desire of every one of us here at this 
table — that this change in regime in Spain be ac- 
complished by peaceful means and that the Span- 
ish people be spared the horrors of a resumption 
of civil conflict which would almost certainly have 
serious international repercussions. We have been 
(Continiied on page 115) 



tive of Poland on the Security Council is as follows : 

"The Security Council declares that the existence and ac- 
tivities of the Franco regime in Spain have led to inter- 
national friction and endangered International peace and 
security. 

"In accordance with the authority vested in it, under 
articles 39 and 41 of the Charter, the Security Council 
calls upon all Members of the United Nations who main- 
tain diplomatic relations with the Franco Government to 
sever such relations immediately. 

"The Security Council expresses its deep sympathy to 
the Spanish people. It hopes and expects that the people 
of Spain will regain the freedom of which tliey have been 
deprived with the aid and contrivance of Fascist Italy 
and Nazi Germany. Tlie Security Council is convinced 
that the day will come soon when it will be able to wel- 
come the Spanish nation into the community of the United 
Nations." 

° Bulletin of Sept. 30, 1945, p. 466. 

° BtnxBTiN of Aug. 5, 1945, p. 159. 

' The text of the resolution adopted by the General 
Assembly follows : 



1. The General Assembly recalls that the San Fran- 
cisco Conference adopted a resolution according to which 
paragraph 2 of article 4 of chapter II of the United Na- 
tions Charter "cannot apply to States whose regimes have 
been installed with the help of armed forces of countries 
which have fought against the United Nations so long as 
these regimes are in power." 

2. The General Assembly recalls that at the Potsdam 
Conference the Governments of the United Kingdom, the 
United States of America and the Soviet Union stated 
that they would not support a request for admission to the 
United Nations of the present Spanish Government "which, 
having been founded with the support of the Axis powers, 
in view of its origins, its nature, its record and its close as- 
sociation with the aggressor States, does not possess the 
necessary qualifications to justify its admission." 

3. The General Assembly, in endorsing these two state- 
ments, recommends that the Members of the United Na- 
tions should act in accordance with the letter and the 
spirit of these statements in the conduct of their future 
relations with Spain. 

Twenty-sixth plenary meeting, 9 Febrnai-y IB'/G. 



International Organizations and Conferences 



Calendar of Meetings 



Council of Foreign Ministers: 
Meeting of Deputies 
Meeting of Foreign Ministers 

Far Eastern Commission 

Allied-Swiss Negotiations for German External Assets 
Anglo-American Committee of Inquiry- 
Third Conference of American States Members of the International Labor 
Office 

Fifth Pan American Railway Congress 

International Labor Organization: 

Industrial Committee on Iron and Steel 
Metal Trades Committee 

PICAO: 

European and Mediterranean Air Route Service Conference 
Annual Meeting of the Assembly 
Near Eastern Route Service Conference 

International Office of Public Health 

International Cotton Advisory Committee 

The United Nations: 
Security Council 
Military Staff Committee 

Negotiating Committee on League of Nations Assets 
Special Committee on Refugees and Displaced Persons 
International Court of Justice 
Commissions of the Economic and Social Council 
Economic and Social Council 
International Health Conference 
General Assembly: Second Part of First Session 

The dates in the calendar are as of Apr. 21. 



London 


January 18 


Paris 


April 25 


Washington 


February 26 


Washington 


March 18 


Lausanne 


April 1 


Mexico, D.F. 


April 1-16 


Montevideo 


April 5 


Cleveland 


April 23 


Cleveland 


May 2 


Paris 


April 24 


Montreal 


May 21 


Cairo 


June 25 


Paris 


April 24 


Washington 


May 7 


New York 


March 25 


New Yorli 


March 25 


Geneva 


April 6 


London 


April 8 


The Hague 


April 18 


New York 


April 29 


New York 


May 25 


New York 


June 19 


New York 


September 3 



Activities and Developments 



Council of Foreign Ministers.^ Secretary of 
State Byrnes will be accompanied to Paris by 
Senators Tom Connally and Arthur H. Vanden- 
berg as advisers. Also accompanying the Secre- 
tary will be Benjamin V. Cohen, Counselor of 
the Department; H. Freeman Matthews, Direc- 



tor of the Office of European Affairs ; Charles E. 
Bohlen, Assistant to the Secretary; James E. 
Doyle, Assistant to the Counselor; Miss Cassie 
Connor, Secretary to Mr. Byrnes; and Donald 
Eddy of the Division of International Conferences. 

■Released to the press Apr. 17. 



711 



712 



DEPARTMENT OF STATE BULLETIN 



The Far Eastern Commission at its regular 
weekly meeting on April 18 approved reports by 
its subcommittees on organizational matters. 

The Commission had as its guests Lord Wright, 
Chairman of the United Nations War Crimes Com- 
mission, who will leave shortly for Japan, at the 
invitation of the Australian Government, to ob- 
serve trials of major war criminals, and General 
Peschkoff, of France, who will shortly proceed to 
Japan to rej)resent France as Chief of Mission. 

The Commission heard the following statement 
by Sir Carl Berendsen, which was warmly sup- 
ported by the representatives of India and the 
Philippines. There was general sympathy in the 
Commission for the case advanced by the New Zea- 
land representative. However, no decision was 
taken and the matter was referred to the Commit- 
tee on Economic and Financial Affairs for consid- 
eration. 

"I have observed, and members of the Commis- 
sion will have observed, press reports of a state- 
ment by the United States Secretary of Agricul- 
ture that over 500,000 tons of foodstuffs are to be 
sent to Japan in the first six months of 1946. I feel 
it necessary to make some comments on this mat- 
ter to the Commission, and in doing so, I wish to 
make it perfectly clear that I am making no criti- 
cism and no jsrotest, indeed I am not possessed, nor 
is the Commission possessed, of all the facts nec- 
essary to form a considered judgment on what is 
admittedly a most difficult question. 

"But those members of the Commission who I'e- 
cently visited Japan will be aware of the food sit- 
uation there, as it existed then and, I understand, 
as it has continued to date. No one could suggest 
that the Japanese were then short of food — indeed 
they were fat — and we learned on the best author- 
ity — from the Occupation Authorities them- 
selves — that at that time the Japanese were eating 
not only more food than during the war, but actu- 
ally more food than before the war, this as a re- 
sult of the operation of a vast and extensive black 
market in food which was then, and I believe has 
continued to be, largely uncontrolled. It may well 
be that the Japanese authorities were acting on the 
assumption that if they did, as it was anticipated 
they would, succeed in eating themselves out of all 
reserves of food, then in the last resort, the United 
States would see them through. 

"Now I fully realise the comijlexities of the situ- 

' Released to the press Apr. 19. 



ation. I fully appreciate, indeed I share the legiti- 
mate pride that the Occupation Authorities take 
in the admirable commencement they have made 
in their task, and I fully appreciate also, and 
indeed share, their natural apprehension lest the 
progress they have made may be impeded by dis- 
contents, and perhaps disturbances due to short- 
ages of food. But I also know, and every member 
of the Commission will know, that there is at this 
time a world-wide and most tragic inadequacy 
of food supplies. I also know, and members of 
the Commission will know, that this has, in very 
substantial measure, been brought about by the 
criminal attack on civilization made by the Axis 
Powers, including Japan, an attack which has just 
been beaten back with such anguish and misery to 
many millions of innocent sufferers. The Japa- 
nese are themselves, in substantial part, the cause 
of the famine that menaces the world. I most 
sincerely trust that this fact will be borne in mind 
by those who at present carry the A'ery heavy and 
onerous responsibility of allocating the meagre 
supplies of food that are available to relieve human 
suffering. 

"I may well be told that this matter is not the 
concern of the Commission. If that be the case 
I do not at this stage intend to argue the matter, 
though I am myself convinced that if anything 
is a matter of policy in the administration of Japan 
it is surely the fundamental question of the sup- 
ply of foodstuffs to that country. 

"But if it is a matter that concerns the Commis- 
sion, and if — and I repeat if — it be the case that 
any preference at all is to be shown in this connec- 
tion to Japan or any other Axis Power, whose re- 
sponsibility for the present situation is so heavy, 
and if — and I repeat if — the aggressor is to be 
given any preference over the innocent victim, then 
I wish to say at once that I will take no part in such 
a policy, and that I think the Conunission as a 
whole should take no f)art also. 

"I do not intend to say more at present, but if 
I said less I should be betraying my manhood and 
betraying my every conception of all that is decent 
and proper and just in the relationship of man to 
man." 

The United States Delegation to the First Meet- 
ing of the International Labor Organization 
Industrial Committee on Iron and Steel, which 
was approved by the President, was announced 
by the Secretarj' of State on April 19 : ^ 



APRIL 28, 1946 



713 



Representing the Government of the U. S. 

^[Cll!bCl■s: 

Harry Donty, Director iif Labor Economics, U.S. De- 
partment of Labor 

Arthur Wubnig, Economist, (.)fflco of World Trade Pol- 
icy, U.S. Department of Commerce 

Adci.scr: 

Murray Ross, Assistant Chief, International Labor Or- 
ganizations Branch, Department of State 

Representing the Employers of the U. S. 
John A. Stephens, Vice I'resident, United States Steel 

Corporation 
C. H. Hurray, Assistant to the President, American 

Rolling Mill Company 

Representing the Workers of the U. S. 
Clinton Golden, Assistant to the President, United 

Steel Workers 
David McDonald, Secretary -Treasurer, United Steel 
Workers 

The President has also approved the designation 
of Nathan P. Feinsinger, professor of the Univer- 
sity of Wisconsin Law Schooh as temporary 
United States Government Representative on the 
Governing Body of ILO. The Governing Body 
has determined that the United States Govern- 
ment Representative on the Governing Body shall 
act as chairman of the meeting of the Committee 
on Iron and Steel. 

On the basis of its experience since 1910, the 
ILO has come to the conclnsion that the amonnt of 
attention that could be devoted to the social prob- 
lems of specific industries by its annual confer- 
ence was necessarily so restricted that additional 
machinery to cope adequately with these problems 
was desirable. As a result, in January 1945, the 
Governing Body took the step of establishing 
seven major industrial coramittees (Inland Trans- 
port; Coal Mining; Petroleum Production and 
Refining; Metal Trades; Iron and Steel Produc- 
tion ; and Building, Civil Engineering and Public 
Works) for the ]mrpose of paying closer atten- 
tion to particular industries and in this way giving 
practical effectiveness to its previously evolved 
general principles. 

In line with this newly inaugurated policy, the 
ILO held at London in December 1946 two meet- 
ings of the Coal Mining and Inland Transport 
Committees. Two additional meetings are 
planned, the forthcoming meeting of the Commit- 
tee on Iron and Steel on April 23, and a meeting 
of the Metal Trades Committee on May 2. Both 
meetings will be held in Cleveland, Ohio. 



The United States Delegation to the European 
and Mediterranean Air Route Service Confer- 
ence, which was approved by the President, was 
announced by the Secretary of State on April 19.^ 

This conference is the second in a series of re- 
gional conferences called by the Provisional In- 
ternational Civil Aviation Organization to 
determine interna t ion ai requirements for the 
safety of aerial fiights and related matters, in- 
cluding aviation communications, air-traffic con- 
trol, search and rescue, airdromes and ground 
aids, and meteorology. The first conference was 
Iield at Dublin, Ireland, in March and covered 
the North Atlantic route. Later conferences will 
be held in Egypt, India, and the Pacific area. 

In addition to discussing questions of air-route 
safety in the European and Mediterranean areas, 
the Paris conference will consider peacetime re- 
quirements for the utilization of route service 
equipment constructed by the Allied air forces 
during hostilities. 

The French Government, at the request of 
PICAO, has invited some 30 governments to send 
delegations. 

The membership of the official Delegation is as 
follows: Delegate, Paul A. Smith, Assistant to 
Director, Coast and Geodetic Survey, U.S.C.G.S., 
and U.S. Air Navigation Repi-esentative to 
PICAO; Alternate, Charles I. Stanton, Deputy 
Administrator, Civil Aeronautics Administration ; 
Chief Technical Adviser, Glen A. Gilbert, Con- 
sultant to the Administrator, Civil Aeronautics Ad- 
ministration; Deputy Chief Technical Adviser, 
Robert D. Hoyt, Coordinator of International 
Regulations, Civil Aeronautics Board. Advisers: 
James F. Angier, Airways Engineer, Office of 
Federal Airways, Civil Aeronautics Administra- 
tion; B. J. Bergeson, Director of Flight Opera- 
tions, American Overeeas Airways ; C. P. Burton, 
Assistant Chief, Air Traffic Control Division, Of- 
fice of Federal Airways, Civil Aeronautics Admin- 
istration; L. Ross Hayes, Assistant Chief. Com- 
munications Division, Office of Federal Airways, 
Civil Aeronautics Administration; Arthur L. 
Lebel, Chief, Aviation Commimications Section, 
Aviation Division, Department of State; W. M. 
Masland, Assistant Chief Pilot, Pan American 
Airways; Delbert M. Little, Assistant Chief of 
Bureau, U. S. Weather Bureau; P. D. McKeel, 
Radio Engineer, Civil Aeronautics Administra- 

' Released to the press Apr. 19. 



714 



DEPARTMENT OF STATE BULLETIN 



tion; Reeder Nichols, Assistant to the President, 
Aeronautical Radio, Inc. ; Ray Nicholson, Chief, 
Air Carrier Branch, Second Region, Civil Aex'o- 
naiitics Administration ; D. W. Nyrop, Official 
PICAO Representative for Air Transport Associa- 
tion ; Capt. Frank O'Beirne, Chief, Civil Air Agen- 
cies Section, Office of Deputy Chief Naval Opera- 
tions (Air), Navy Department; Elmo O. Roberts, 
Special Assistant to Superintendent of Operations, 
Trans World Airline ; Com. W. B. Scheibel, Ex- 
ecutive Assistant to the Head, Air-Sea Rescue 
Agency, U. S. Coast Guard; Col. Lawi-ence M. 
Thomas, Air Transport Command, Army Air 
Forces; E. L. "White, Head Radio Engineer, Chief 
of Aviation Division, Federal Communications 
Commission. Secretary, Richard S. Wheeler, 
Divisional Assistant, Division of International 
Conferences, Department of State. 

The International Cotton Advisory Committee 

will meet in Washington on May 7, according to a 
joint announcement made on Aj)ril 18 by th© 
United States Departments of Agriculture and 
State on behalf of the Committee. 

The Committee, which held its last meeting in 
April 1945 in Washington, will, according to its 
custom, examine the world cotton situation and 
hear reports from the countries represented. In 
addition, it will consider the report of the Inter- 
national Cotton Study Group which was completed 
last February.^ 

The International Cotton Advisory Committee 
was established following the International Cot- 
ton Meeting which representatives of 10 countries 
concerned with the production and marketing of 

UNESCO.^ On April 15 Assistant Secretary 
of State Benton announced the appointment by 
Dr. Julian Huxley, Executive Secretary of the 
Preparatory Commission of the United Nations 
Educational, Scientific and Cultural Organiza- 
tion (UNESCO), of Llewellyn B. White as 
senior counselor in mass communications. Mr. 
White will direct the planning for the coopera- 
tive development of activities in radio, films, and 
publications, in connection with the UNESCO 
jJi'ogram. 

^ For details of this report, see Department of Agricul- 
ture press release 410-46 of Feb. 26, 1946. 
' Released to the press Apr. 15. 
" Released to the press Ajjr. 19. 



cotton attended in Washington in 1930. Its pur- 
pose is to observe and keep in close touch with de- 
velopments in the world cotton situation, and to 
suggest to the governments represented on it any 
measure it considers suitable and practicable for 
the achievement ultimately of international col- 
laboration in the solution of the world's cotton 
problems. 

The International Cotton Advisory Committee, 
as originally constituted, was composed of repre- 
sentatives of the governments of countries produc- 
ing and exporting cotton. At its April 19-15 meet- 
ing, however, it was agreed that all other govern- 
ments of the United Nations having a substantial 
interest in the production, exportation, or impor- 
tation of cotton be invited to participate. 

The governments originally represented on the 
Committee were those of Brazil, Egypt, India, 
Mexico, Peru, the Soviet Union, the Sudan, France 
and the United Kingdom on behalf of their export- 
ing colonies, and the United States. Turkey sub- 
sequently appointed a representative. Argentina, 
Australia, Bolivia, Chile, China, Ethiopia, Greece, 
Haiti, the Netherlands, Paraguay, and Venezuela 
have since accepted invitations to participate, as 
have the Governments of France and the United 
Kingdom as importing countries. 

Bermuda Telecommunications Agreement.^ 

The agreement signed at the Bermuda Telecom- 
munications Conference in November 1945 became 
effective for all the governments concerned, with 
its acceptance this week by the United Kingdom 
and Australia. The agreement is now in force 
between the United States, the United Kingdom 
of Great Britain and Northern Ireland, Canada, 
Australia, New Zealand, the Union of South 
Africa, India, and Southern Rhodesia. New 
Zealand accepted with a reservation of article III, 
section 12, which reads as follows : "Private chan- 
nels for point to point press traffic shall be pro- 
vided where the available channels are sufficient. 
Charges may be based on time, words, or cost, 
whichever may be agreed upon by the parties 
concerned." 

Two reservations were made by the United 
Kingdom as follows : 

( 1 ) The agreement cannot be applied to Anglo- 
French Condominium in the New Hebrides to 
which the Empire Rate Scheme does not apply. 

(2) In order to avoid any discrimination con- 
trary to the terms of the Mandate, the provisions 



APRIL 28, 1946 



715 



of section 8 of the agreement cannot be accepted 
in respect of Palestine so far as they relate to 
transit charges. 

Aviation Agreements.' The following action, 
not previously announced, has been taken on the 
Interim Agreement on International Civil Avia- 
tion, the International Air Services Transit Agree- 
ment, the International Air Transport Agi-eement, 
and the Convention on International Civil Avia- 
tion concluded at the International Civil Aviation 
Conference in Chicago on December 7, 1044 : 

Peru 

The Charge d' Affaires ad interim of Peru de- 
posited with the Department of State on April 8 
the Peruvian instrument of ratification of the 
convention. 

United Kingdom 

The British Ambassador informed the Secretary' 
of State on March 30 that the reservation respect- 
ing Denmark ^ on the interim agreement has been 
withdrawn. 

Venezuela 

The Charge d'Affaires ad interim of Venezuela 
informed the Secretary of State by a note received 
in the Department of State on March 28 of the 
acceptance of the interim, transit, and transport 
agreements by the Government of Venezuela as an 
obligation binding upon it. 

Philippines 

The Resident Commissioner of the Philippines 
to the United States informed the Secretary of 
State by a note received in the Department of State 
on March 22 of the acceptance of the interim and 
transit agreements by the Commonwealth of the 
Philippines with the following reservation on the 
transit agreement : 

"The above acceptance is based on the under- 
standing . . . that the provisions of Article II, 
Section 2 of the International Air Services Transit 
Agreement shall become operative as to the Com- 
monwealth of the Philippines at such time as the 
Convention on International Civil Aviation shall 
be ratified in accordance with the Constitution and 
laws of the Philippines." 

Greece 

The Ambassador of Greece informed the Secre- 
tary of State by a note received in the Department 
of State on February 28 of the acceptance of the 
transport agreement by the Government of Greece 



as an obligation binding upon it with the following 
reservation : 

"In accepting this Agreement in accordance with 
Article VIII, paragraph two thereof, I am directed 
to make a reservation with respect to the rights 
and obligations contained in Article I, Section 1, 
paragraph (5) of the Agreement, which, under 
Article TV, Section 1, Greece does not wish, for the 
time being to gi-ant or receive." 

Countries wliich have to date deposited instru- 
ments of ratification of the convention are : Canada, 
China, Dominican Republic, Nicaragua, Paraguay, 
Peru, Poland, and Turkey. The following number 
of governments have accepted the agreements : the 
interim agreement, 44 ; the transit agi-eement, 27 ; 
and the transport agreement, 15. 

SECURITY COUNCIL— CoM«inMC(J from page TIO. 
conducting diplomatic conversations for months 
past in an endeavor to aid in the accomplishment 
of these two objectives to whicli I have referred. 
On 4 March of this year we joined with the British 
and French Governments in making a statement 
of our views on the situation in Spain.^ We are 
glad now to have a discussion of the Spanish sit- 
uation here at the Council table, feeling confident 
that the other members of the Council share our 
two objectives. 

My Government believes that the Security 
Council should carefully examine the Spanish 
question and that every opportunity should be 
granted to the members of this body to bring 
to attention the facts bearing on the problem 
and the interpretation of these facts made by 
the respective Governments. We will give sym- 
pathetic consideration to actions in conformity 
with the Charter or to independent national action 
which will afford a reasonable prospect of achiev- 
ing these two objectives, namely, the elimination 
of the Franco regime and the restoration of a dem- 
ocratic regime without a resumption of a civil war. 

' Released to the press Apr. 15. 

' "In signifying their acceptance of the said agreement, 
the Government of the United Kingdom desire to make it 
clear that they neither regard the Governments of Den- 
marlc and Siam as being parties thereto nor consider the 
United Kingdom as being in treaty relations with either 
of those countries in respect of the Agreement." (May 
31,1945.) 

" Bulletin of Mar. 17, 1946, p. 412. See also Bulletin 
of Mar. 24, 1946, p. 486. 



America's Solemn Obligation in World Famine Crisis 



ADDRESS BY THE PRESmENT' 

Good Evening : It is my duty to join my voice 
with the voices of humanity everywhere in behalf 
of the starving millions of human beings all over 
the world. We have a high responsibility, as 
Americans, to go to their rescue. 

I aijpointed the Famine Emergency Committee 
to make sure that we do all we can to help starving 
people. We are particularly grateful to former 
President Hoover for undertaking a survey of the 
situation in Europe. The messages he has sent 
back have driven home again and again the des- 
perate plight of the people over there. We cannot 
doubt that at this moment, many people in the 
famine-stricken homes of Europe and Asia are 
dying of hunger. 

America is faced with a solemn obligation. 
Long ago we promised to do our full part. Now 
we cannot ignore the cry of hungry children. 
Surely we will not turn our backs on the millions 
of human beings begging for just a crust of bread. 
The warm heart of America will respond to the 
greatest threat of mass starvation in the history 
of mankind. 

We would not be Americans if we did not wish 
to share our comparative plenty with suffering 
people. I am sure I speak for every American 
when I say the United States is determined to do 
everything in its power to relieve the famine of 
half the world. 

The United States Government is taking strong 
measures to export during the first half of this 

' Radio address delivered from tlie Wliite House on Apr. 
19 and released to the press by the White House ou the 
same date. 

' Fiorello H. LaGuardia. This radio address was deliv- 
ered from the White House on Apr. 19, and released to 
the press by the White House on the same date. 



year a million tons of wheat a month for the starv- 
ing masses of Asia and Europe. Our reserve stocks 
of wheat are low. We are going to whittle that 
reserve even further. 

America cannot remain healthy and happy in 
the same world where millions of human beings 
are starving. A sound world order can never be 
built upon a foundation of human misery. 

I am glad here and now to renew an appeal 
which I made the other day. I said then that we 
would all be better off, physically and spiritually, 
if we ate less. And then on two days a week let 
us reduce our food consumption to that of the aver- 
age person in the hungry lands. 

Once again I appeal to all Americans to sacrifice 
so that others may live. Millions will surely die 
unless we eat less. Again I strongly urge all 
Americans to save bread and to conserve oils and 
fats. These are the most essential weapons at our 
disposal to fight famine abroad. Every slice of 
bread, every ounce of fat and oil saved by your 
voluntary sacrifice, will help keep starving people 
alive. 

By our combined effort, we will reduce starva- 
tion and, with God's help, we will avert the worst 
of this plague of famine that follows in the wake 
of war. I ask every American now to pledge him- 
self to share. 

The time for talk has passed. The time for ac- 
tion is here. 

ADDRESS BY THE DIRECTOR-GENERAL 
OF UNRRA " 

Thank you, Mr. President. Your understanding 
of the problem, your interest, and your help are 
making a heart-breaking job bearable. The last 
few days were really tough. 



716 



APRIL 28, 1946 



717 



The people of the world should know the tre- 
mendous efforts that are being made and the splen- 
did teamwork on the part of Mr. Clinton Ander- 
son, Secretary of Agriculture, Mr. Will Clayton, 
Assistant Secretary of State, and Mr. John Snyder, 
Director of Reconversion, in translating the Presi- 
dent's determination to help into a practical, 
workable jjlan. The United Nations Relief and 
Rehabilitation Administration is the agency for 
48 governments. At this moment thanks are due 
to the United Kingdom, Canada, and Argentina. 

It is our responsibility to obtain food where we 
can find it and to get it to people where it is needed. 
Our task is difficult because at this moment there is 
just not enough food. There is not enough wheat 
today or tomorrow, and there will not be for sev- 
eral weeks to come. True, the next 90 days are the 
hardest but the distress will continue for a long 
time, and the next 90 days will mean eternity for a 
great many who are now on the brink of death. 
The records of UNRRA are most distressing. It 
is no longer news to hear of increased needs of 
moi'e hungi"y people, of more dying people. It is 
indeed news when we hear of a bushel of wheat 
here or a bushel of wheat there. I cannot thank 
you enough, Mr. President, for the firm action you 
are taking in making some more wheat available. 

Czechoslovakia, Poland, Yugoslavia, Greece, 
Italy, Austria, Albania, and China will be without 
bread in a matter of a few days unless we rush 
boatloads of wheat at once. We are ready. We 
have the boats. We must have wheat. I appeal 
desperately to the American farmer. 

You have heard from your President. Bring 
in the wheat. But bring it now. Bring it in fast. 
People are dying. Your Government has been 
most considerate. Deliver the wheat now and you 
are protected to the fullest extent in any future 
increase in the price of wheat. 

Time does not permit me to give you some of the 
statistics of horror, of suffering, and of starvation. 
You will soon hear from an expert on that, one who 
has seen with his own eyes. AAliat better corrobo- 
ration of UNRRA's facts could we have? 

Now may I for a moment talk, not as a Director- 
General of an international organization, but as an 
American. I want to say that we are not doing 
enough. And we must do more. Buy less food. 
Help your Government. I want to appeal to the 
baking industry to cooperate. And the millers 
too. It means saving lives. Bakers, you will see 



that your own customers want you to do it. Don't 
get the idea that the American people are against 
nnj regulation that will conserve wheat. We must 
conserve fats and oils too. Evei-y ounce counts. 
I appeal to the soap industry not to use edible fats. 
And the same is true of all industries. 

Peace has come. It will be a happy Easter to 
130,000,0D0 Americans. It's a very gloomy Easter 
to nearly 500,000,000 people in the UNRRA coun- 
tries. It's an important Easter. They are waiting. 
Easter may have a new significance. Or it may be 
meaningless. Have we learned the lesson of 
Christ? And if we have, we must show it by send- 
ing food to these hungry people who are praying to 
Him for their daily bread. 



ADDRESS BY HERBERT HOOVERS 

This is our report and our i-ecommendations 
upon the food crisis. 

We have now surveyed the problem in 17 nations 
to determine the minimum amounts required to 
sustain life. We have indirectly established the 
position of four others. It has been possible to 
arrive quickly at sufficiently accurate conclusions 
through the advance work of my colleagues, the 
officials of our government and of the various 
nations visited and those of the various relief or- 
ganizations. Particularly do I mention the most 
able service of Dr. Fitzgerald of our own Depai't- 
ment of Agriculture. We have already reported 
upon many nations. 

The dimensions of the European part of the 
world food crisis as a whole can be quickly summed 
up. There are about 300 million people on the 
continent of Europe from the Russian frontier to 
the English Channel. A few small countries on 
the continent comprising about 40 million people 
have enough food to last until the next harvest. 
Of the other nations about one third of the re- 
mainder are farmers who are able largely to feed 
themselves. Thus there are over 170 million peo- 
ple, largely in towns and cities, of whom perhaps 
less than 10 percent can support themselves from 
black markets and country relatives. The remain- 
der of 150 million, mostly the lower income groups, 

' Mr. Hoover is honorary chairman of the Famine Emer- 
gency Committee. This radio address was delivered from 
Cairo on Apr. 19 and released to the iiress by the White 
House on the same date. 



718 



DEPARTMENT OF STATE BULLETIN 



must have overseas supplies during the next four 
months if wide-spread famine is to be prevented. 

Hunger has placed three words every hour of 
the day on the tongues of these 150 millions of 
people. The first is "bread". Bread has a reality 
as the symbol of life as never before in history. 
To reduce the bread ration is a symbol of calamity. 
It is now the symbol of the life of nations. The 
second word is "fats", for which there is an insa- 
tiable craving and physical need. The third word 
is "calories". That is the common denominator. 
Calories are only a partial yardstick of food but 
that word has become everywhere the grim meas- 
ure of the steps along the road from plenty to 
liunger and to starvation. Europe has become a 
vast involuntary experimental laboratory as to 
different levels of calories which the population 
are to have in their rations. 

Do not forget that the caloric level of America 
is an average of about 3,200 per person per day. 
Britain has about 2.800. Experts say an average 
level of 2,200 calories is the minimum at which 
public health and progress can be maintained in a 
nation. There are 13 countries where the city pop- 
ulations have an average intake of less than 1,900 
calories. Of these, six countries are at, or below, 
the 1,500 caloric level. There are millions of peo- 
ple below 1,000 calories. Somewhere down these 
various levels starvation begins. And its imme- 
diate expression is the disease rate in children and 
in death rates of the infants and the old people. 

In making our estimates of food which must 
be imported to the continental countries fi'om 
overseas, we have used the grim and dangerous 
base of about 1,500 calories, with less for children 
and more for heavy workers. In this figure of 
1,500 calories we have included the domestic as 
well as the imported supplies and the unrationed 
food. At this level we believe most of the adults 
could come through the short period of four 
months until the next harvest. They will no 
doubt be weakened morally and physically and 
very susceptible to disease. It is a sad job to make 
such a base for under it many of the children and 
the aged will fall by the wayside. 

To provide this minimum to the next harvest, 
there must be loaded on ships for the continent 
during each of the four months from the first of 
April to the end of July a total of at least 5,300,000 
tons of cereals, 300,000 tons of fats, and an addi- 
tional 100,000 tons of siu'cial food is urgently 
needed to restore subnormal children. 



A few days ago I stated a rough estimate that 
there are 20 million subnormal or diseased chil- 
dren on the continent. My able and experienced 
colleague, Maurice Pate, who has gone to the bot- 
tom of this sole problem throughout Europe, in- 
sists that my estimate was too low. He points out 
that there are probably 11 millions of orphans and 
half -orphans alone. He also points out that the 
mortality among children under two is already 
over 25 percent per annum in many cities. The 
reconstruction of the children is more precious 
than factories or bridges. They will determine 
the good or evil future of Europe if they survive. 
The food supplied by UNERA to the nations 
they serve has been an untold blessing. For vari- 
ous reasons they do not cover much over 25 per- 
cent of the total food problems of the continent. 
They have recently received wholly inadequate 
supplies. 

But Europe is not the only claimant on the 
woi'ld's food. Of cereals alone the British want 
1,500,000 tons shipi^ed to them in these four 
months. And South Africa is demanding sup- 
I^lies. There are Latin American countries which 
import large amounts of breadstuffs. Although 
we have not yet examined the situation in Asia, we 
know a very large amount of cereals is needed 
there. 

After the most drastic scaling down, as closely 
as we can give a tentative estimate now, the total 
requirements of cereals alone for Europe and Asia 
during the next four months is a minimum of 
about 11,000,000 tons. And, in addition, as much 
fats as can be secured. 

As against this need, the grim fact is that, in 
normal commercial supplies, there is not much 
over 0,000,000 tons available. The problem before 
us, if we would preserve millions of lives, is to 
make up this gap of 5,000,000 tons of cereals. I 
believe this could be done by self-denial and co- 
operation of the people of the better supplied 
nations in the world. There are seven substantial 
sources where these supplies can possibly come 
from. They are Canada, the United States, Brit- 
ain, the Argentine, Russia, Australia, and Siam. 

To narrow this 5,000,000-ton gap between sup- 
ply and the minimum need to save life, I have six 
suggestions. Let me say that these jDroposals ai-e 
only my personal views. It is my duty to exhaust 
every possibility of saving these people. If there 
is criticism of the proposals, it sliould be directed 
to me alone and, with some experience in these 



APRIL 28, 1946 



719 



matters, I shall bluntly state that they are the only 
way by which millions of lives can be saved at 
this late date. My suggestions are : 

First: Our Government has asked our people 
to voluntarily reduce their consumption of wheat 
products by 40 percent and fats by 20 percent. My 
projDosal is that our Government do as they did 
during the war and acquire enough of our wheat 
and its products to assure an export to the famine 
areas of an average of 1,100,000 tons per month 
during the months of April, May, June, and July. 
This will effectively back up these consumers who 
are supporting the starving. It will make the con- 
servation campaign effective beyond any doubt. 
We need similar action as to fats. In making 
these sacrifices of bread and fats, the American 
people have a right to expect other nations also 
to cooperate to tlie full. 

Second: By the American j^rogram above, the 
American consumption of wheat products will be 
reduced to an equivalent of about 200 grams per 
person per day in European terms. European 
nations need more wheat bread than we do, because 
they have less substitutes or supplemental food. I 
propose that all nations in Europe who now exceed 
a cereal ration equal to 300 grams of bread per 
jjerson per day should reduce it to 300 grams. 
This would, I know, be a burden to such countries 
as Britain, Holland, Denmark, and Yugoslavia. 

Third: I suggest to the British that as they are 
carrying about a million tons of breadstuffs in their 
pipeline and stocks instead of one half this amount 
before the war, they could release half a million 
tons to the starving. 

Fourth: My next suggestion is to the Latin 
American states. The largest part of the Argen- 
tine exports are going to Chile, Brazil, and other 
neighboring countries. Other Latin American 
states such as Cuba and Mexico are drawing large 
amounts of wheat and flour from the United 
States and Canada. If the United States, Canada, 
and the Argentine would reduce these exports by 
40 percent during the next four months, and if 
these Latin American states would cooperate by 
accepting this reduction, it would furnish most 
valuable assistance. Their sacrifice would be no 
greater than we are asking from the United States. 
It would be a translation into action of the eloquent 
appeal of His Holiness Pope Pius XII a few days 



Fifth: My next proposal is in respect to Russia. 
At the request of the Soviet Government, I organ- 
ized and directed the relief of the great Russian 
famine of 1922 and 1923. America made a gift of 
over 3,000,000 tons of food and overcame that 
famine. The Soviet Government expressed its 
warm appreciation to myself and to the American 
people. I learned at that time of the sacrifice 
which millions of Russians made for their more 
helpless neighbors. I know full well the suffering 
of her people during this war. I am advised, how- 
ever, that their food situation has somewhat im- 
proved since the war. Slie has been able to make 
available a generous supply of about 75,000 tons 
of grain per month to France. If her contribu- 
tion could be raised to 300,000 tons per month for 
the four months of the crisis it would be a great 
human service. 

By these methods, over 90 percent of the gap 
between supply and minimum need of the famine 
areas would be met. 

Sixth: I suggest that priority in supplies be 
given to the smaller liberated nations. They 
have suffered most. Their domestic resources are 
more limited than others. They comjirise only 15 
percent of the whole European problem. 

If these proposals were adopted, the United 
States would be furnishing to the famine areas 
about 44 percent of the total, Canada about 20 
percent, the United Kingdom about 10 percent, 
Australia and Siam about 10 percent, the Argen- 
tine, thi'ough cooperation of other states, say 6 
percent, and Russia 12 percent. 

If every source of supplies will do its utmost, 
we can pull the world tlirough this most dangerous 
crisis. The saving of these human lives is far 
more than an economic necessity to the recovery 
of the world. The burden will be heavy upon the 
United States and we cannot do more. Europe 
and other countries must look to the other sources 
for the balance. 

The current world crisis is unique among all 
crises in history. This crisis has a definite termi- 
nal date. That date is the arrival of the next 
harvest. It is more than the only path to order, 
to stability, and to peace. Such action marks the 
return of the lamp of compassion to the world. 
And that is a part of the moral and spiritual re- 
construction of the world. 



720 



DEPARTMENT OF STATE BULLETIN 



Individual Liberty — A Pan-American Ideal 



BY PRESIDENT TRUMAN 



In tlie years that lie ahead, it will be the task of 
the American republics to do their part in creating 
and maintaining a system of world peace which 
will eliminate the fear of war and establish in its 
place a rule of justice and world cooperation. 

To maintain a lasting peace, the peoples of the 
world have now shown their willingness to use 
force, if necessary, to prevent aggression or the 
threat of aggression. 

We all realize, however, that the exercise of this 
kind of force, while it may hold aggressors in 
check, will not of itself eliminate the deep causes 
of unrest sucli as those responsible for World 
War II. Underneath the Nazi madness were the 
material distress and spiritual starvation born of 
poverty and despair. These evil forces were seized 
upon by evil men to launch their program of tyr- 
anny and aggression. 

The danger of war will never be completely 
wiped out until these economic ills which consti- 
tute the roots of war are themselves eliminated. 
To do that we must achieve the kind of life — 
material, cultural, and spiritual — to which the 
peoples of this world are entitled. To that objec- 
tive we must all dedicate our energies and I'e- 
sources. 

I know of no one word which more fully em- 
bodies this objective than the word democracy. It 
was the symbol and the hope of democracy which 
liberated the world from Nazi and Japanese slav- 
ery. Democracy' was the objective which gave 
strength to the brave men and women of the Under- 
gi'ound in the enslaved countries of Europe and 
Asia. Democracy is the rallying cry today for free 
men everywhere in their struggle for a better 
human life. 

We all appreciate that this word democracy 

Excerpts from an address delivered before the Gov- 
erning Board of the Pan American Union on Apr. 15 in 
Washington and released to the press by the White 
House on the same date. 



carries different meanings in different languages. 
In different parts of the world it will have different 
connotations. It is fortunate that we of the pan- 
American nations do have certain common, fimda- 
mental under.standings of what the word democ- 
racy means. Despite our differences in language 
and cultures, we do have in common a love of lib- 
erty, a recognition of the dignity of man, and a 
desire to improve the material and spiritual well- 
being of our citizens. 

Time and again the American republics have 
met to reaffirm their devotion to those ideals of 
democracy. They have done this in the face of 
constant propaganda for Nazi and Fascist doc- 
trines. And in the post-war world I am sure 
these American republics will reaffirm the bold 
stand for democracy with which they have resisted 
the forces of reaction from abroad during the last 
decade. 

It is obvious that these goals require first of 
all the efforts of each nation within itself. But 
if we have learned anything in the last decade 
it is that no nation can stand alone. Only 
through a genuine cooperative effort can these 
goals be achieved in the world at large. They 
require international cooperation toward expand- 
ing j^roduction, increasing world trade, and de- 
velojjing natural resources so that all efforts to 
improve living standards may rest upon a solid 
basis. 

That kind of cooperation is inherent in the 
principles which have guided the pan-American 
program in the past. We must translate those 
principles into effective action and tangible re- 
sults in the future. 

Our American tradition rests on the belief that 
the state exists for the benefit of man. The 
American republics have overwhelmingly re- 
jected the false doctrine that man exists for the 
benefit of the state. We must now in-ove that 



AI'RIL 28, 1946 



721 



inteiiuitioiial cooperation, too, exists only for the 
lieiiefit of man. The peoples of the Americas 
have a right to exjiect of the pan-American sys- 
tem that it show its validity by promoting those 
liberties and principles which the word democ- 
racy imijlies to them. Pan-American solidarity 
must prove itself to be in fact a bulwai-k of demo- 
cratic peace. 

If we dedicate ourselves to this objective, we 



shall make the fullest contribution to the wel- 
fare of our own people and of the world at large. 
By giving tangible expression to the meaning of 
democracy, Ave shall widen and strengthen its 
hold upon the imagination of the world. In that 
way we can revitalize, through our pan- American 
cooperation, the faith of peoples everywhere in 
their ability to build a peaceful world upon a 
firm foundation. 



GERMAN DOCUMENTS— ConthniPd from par/e 703. 

had only gone in ahead of the English and had an- 
ticipated them only, as it now appeared, by about 
ten hours. To the remark of Scheel that the Eng- 
lish through their mine fields had violated Nor- 
wegian sovereignty, the Fiihrer declared that that 
was only the beginning. He had in the meantime 
discovered that the English had already planned 
their first landing on February 12. To the ques- 
tion of the Fiihrer as to whether Herr Scheel 
had received any instructions from his Govern- 
ment, the Minister replied in the negative. The 
Fiihrer advised him to get into communication 
with his Government. He would permit the Min- 
ister to fly up there. He could do whatever he 
liked. He would help him in every way. The 
Fiihrer continued that it made no difference who 
was in control in Norway, he would deal with 
those who were there and if it turned out there 
was no one, he would appoint a military governor. 
He could do that and it would be no problem for 
him. Herr Scheel referred to the request that 
Sweden should take over protection of Norwe- 
gian interests. To this the Fiihrer replied that it 
was entirely impossible, for in the meantime an- 
other Government had been formed in Norway. 
In any case he believed that some sort of civilian 
authority had already been established. To 
Scheel's objection that this would have to be es- 
tablished constitutionall}', the Fiihrer answered 
that he could establish it; for whoever had the 
power and the responsibility could name Govern- 
ments and he who had no power could not estab- 
lish a Government. To this Herr Scheel agreed. 
The Fiihrer requested the Minister to express his 
opinion, for something must now be done. To this 
Herr Scheel answered that in his opinion, a head of 
a state who had once fled from his countrj? had no 
further connection with his people and he referred 
to tlie example of Poland. The Fiihrer once more 



outlined the danger into which Norway was being 
swept and compared the more favorable position 
which Dennuirk had chosen for itself with the 
chaos and destruction which confronted Norway. 
Herr Scheel asked the Fiihrer whether he might 
travel and was under the impression that this was 
a matter which concerned the Fiihrer. The 
Fiihrer replied that if we were in a state of war 
with Norway, the Norwegian Minister could not 
possibly carry on his duties here any longer. The 
Minister replied that Germany hacl certainly not 
declared war on Norway, and when the Fiihrer 
answered that Koht in his speech had declared that 
Norway was in a state of war with Germany, the 
Minister said that he had also heard that, but he 
added that if he remained here and the old Gov- 
ernment disappeared and a new one was formed, 
he could continue to work for the new Govern- 
ment. His pei-sonal relationship with the Ger- 
man Government had always been a vei-y good 
one. The Reich Foreign Minister projaosed to the 
Minister that he fly to Norway to speak with the 
King. He could make clear to the King that it was 
a question, not only of his crown and the future 
of his children but also of the fate of his country. 
To the question of the Fiihrer as to whether he 
knew the King well, the Minister replied that he 
had often been received by the King and had met 
him on ceremonial occasions. The Fiihrer jaro- 
posed that the Minister should communicate by 
telegraph to which the latter agi'eed. 

To the Minister's question as to whether he had 
to leave Berlin at once the Fiihrer said that he was 
under no compulsion. He could first put his affairs 
in order calmly. The Minister requested an inter- 
val for consideration and the Fiihrer bade him 
farewell. 

Berlh), April 13, WJiO 

Hewell 



722 



DEPARTMENT OF STATE BULLETIN 



American News Abroad 



BY ASSISTANT SECKETARY BENTON 



I AM GRATEFUL to jour president, Mr. John 
Knight, and to the American Society of News- 
paper Editors for giving me tliis opportunity to 
discuss with you some of the problems of the pro- 
posed State Department information program. 

Tlie problems I want to lay before you are not 
the routine administrative headaches of a govern- 
ment bureaucracy. They are, in their largest con- 
text, the problems and opportunities of achieving 
and maintaining peace through the growth of 
understanding among the peoples of the world. 

As such, they concern every citizen and every 
human being. To you, as editors — as specialists 
in handling information — they are of special con- 
cern. If there is any group in the United States 
which I hope will face up to them, it is this one. 
Witliout your understanding and help, the liope 
of solving these problems is dim indeed. And my 
appearance here today is not for the purpose of 
making what the diplomats call a general settle- 
ment. It is one of many appearances which I and 
my successors should make before you and other 
groups over the years. The need and the oppor- 
tunity for increasing the volume and quality of 
international information are perennial. They 
become more critical with every new development 
in science that makes the world smaller and more 
dangerous — not only every new development in 
communications, but in nuclear physics. 

Under the leadership of Mr. Knight, your so- 
ciety has recently made notable contributions to 
the cause of peace through world freedom of 
information. Your influence in persuading both 
the Republican and Democratic National Commit- 
tees in 11)44 — and later the Congress — to adopt 
resolutions which advocated equality of oppor- 
tunity and treatment in collecting, transmitting, 
and publishing news, without governmental or 

An address delivered befurc the American Society of 
Newspapei- Editors, Washington, D.C.,, Apr. 18, 1946, and 
released to the press on the same date. 



private restriction, helped crystallize national 
policy. Even more valuable was the appointment 
of the special committee of Wilbur Forrest, Ralph 
McGill, and Carl Ackerman, and the round-the- 
world trip they made to advance the cause of free- 
dom of information everywhere. 

There is no need for me to reemphasize to this 
group the importance of removing political re- 
strictions on the free flow of information. Mr. 
Knight dealt with this theme in a speech last Fri- 
day in Syracuse, and I want to take as one theme 
today some of Mr. Knight's observations in that 
speech, because they tyjDify many legitimate ap- 
prehensions as well as the misapprehensions about 
the Government's information program. His 
speech is an excellent springboard for me to try 
to make some points of my own. 

He spoke, for one thing, about the refusal of the 
Associated Press to continue its service to the Gov- 
ernment for use in short-wave broadcasting and 
took exception to the State Department's attitude. 
The AP issue is a minor symj^tom of the bigger 
problems that face us. The Department's inability 
to use AP and UP files has caused us inconveni- 
ence; it has made the job of our broadcasters 
harder; we don't like it; but spot news is only a 
small fraction of the material in our broadcasts, 
and there are other sources of news. We are get- 
ting on without AP and UP far better than I 
M'ould have supposed. Further, the action of the 
Board of the Associated Press relates to only one 
part of one of the nine points of the State Depart- 
ment program. Speaking to the North Carolina 
Press Association on January 2.5, Robert McLean, 
President of the Associated Press, gave the fastest 
and best summary of the program that I have seen 
anywhere. He said : "The whole information pi'o- 
gram, consisting of nine points, includes exchange 
of persons engaged in intellectual activities; the 
maintenance of libi'aries of information abroad; 
the disd'ihution to diplomatic missions of texts 



APRIL 28, 1946 



723 



of official announcements; documentary material, 
biographical sketches and information about life 
in Amei-ica; photographs and fihn (strips) for 
non-commercial showing to foreign audiences; the 
development of small staffs in our missions in 62 
countries to provide tactful, well-informed, and 
capable personnel to carry out the program; and 
finally the operation, during (fiscal year) 1947 at 
least, of short-wave broadcasting covering virtu- 
ally the whole world. 

"Almost the whole program", said Mr. McLean, 
"has received generous and merited approval and 
support, as have also efforts to advance the free 
excliange of news and information through nor- 
mal channels. It is only in the field of news broad- 
casting by the Government that the program has 
been seriously questioned." 

However, the action of the AP Board to which 
Mr. McLean refers is important. It has even 
greater importance as a symptom and a symbol. 
I sliall welcome the interest of the members of 
this society in it. 

One of the bigger problems pointed out in Mr. 
Knight's speech is the danger of a propaganda 
race. He said : "I cannot refrain from putting up 
a red light as a warning against a propaganda race 
between nations. In many ways, it could be quite 
as ominous as an armament race in wliicli each 
major power attempted to outdo the other." I 
share Mr. Knight's fears. I liope and pray that 
we don't have a propaganda race. I feel the same 
way about the danger in an armament race. Wlren 
General Groves asks Congress for 500 million dol- 
lars for further development of the atomic bomb, 
when Geijeral Spaatz asks for 2 billion dollars 
for our air forces next year, we face the issue of 
an arms race, and before our eyes is the danger 
in such a race. 

If the United States controlled the world — if 
we were tlie only nation to decide what the world 
is going to do — there would be no danger of arma- 
ment or propaganda races. But it happens that 
we aren't the only ones to make the decisions. We 
don't control the world. "We don't want to control 
it. And nuich that we do is determined by what 
other nations do, unless we choose to go in for 
unilateral disarmament. 

The action of the Board of the Associated Press 
is like that of a munitions manufacturer — to con- 
tinue Mr. Knight's analogy — who will sell to every 
government in the world but refuses to sell to his 
own on the tlieorv that he is against war. 



The practical question is not if a propaganda 
race is undesirable. Of course it isn't, and we shall 
not engage in it. This is the question: Can we 
solve the problem of providing the world with 
adequate infoi-mation without engaging in propa- 
ganda ? 

TIuis the fact that the British and the Russian 
Governments spend more money and energy on 
international infonnation activities than we pro- 
pose is not our criterion. Nor is our stimulus the 
fact that they or many other nations have been in 
the field for decades and do not propose to leave 
it. Nor are we motivated by the fact that some 
50 governments now engage in international short- 
wave broadcasting. I would favor an American 
program of international information even if no 
other government had such a program. I would 
recommend such an honest program to any coun- 
try. I believe that the surest road to peace is 
through understanding among peoples. Private 
agencies cannot do the whole job of providing the 
information necessary to such understanding. 
America as a nation can help set world-wide stand- 
ards of honesty and impartiality in the dissemina- 
tion of information by governments. 

If there be a propaganda race, the United States 
Government does not choose to run in it. 

In the same speech Mr. Knight also said, "I 
applaud Mr. Benton's ardent desire to give the 
world more information about our country, but 
as yet I remain unconvinced that it can be accom- 
plished through Government publicity agencies". 
I too remain unconvinced. I am against relying 
on Government publicity agencies to provide the 
world with information. The State Department's 
entire program is designed only to fill in the gaps 
where private agencies don't do the job. If the 
.Government doesn't fill these gaps, who does? 

Incidentally, your president gave me too much 
credit in calling it 7)11/ ardent desire to give the 
world more information about the United States. 
It isn't mine alone. It is his. It is yours. It was 
Thomas Jefferson's when he wrote in the first 
sentence of the Declaration of Independence that 
"a decent respect for the opinions of mankind re- 
quires" that the American people "should declare 
the causes which impel them to the separation" 
from Great Britain. It is the ardent desire of 
everyone who has studied the program. It is the 
desire of the administration, of Congressmen, both 
Republican and Democratic, who have been abroad 



724 



DEPARTMENT OF STATE BULLETIN 



and seen at first hand how America is misunder- 
stood. 

But in this problem of a so-called Government 
publicity agency, the practical question is not 
whether Government participation seems inefTec- 
tive or dangerous. This is the question : How can 
we make the program effective and how can we 
avoid the dangers? We can't solve the problem 
by saying, ''Let's not do anything. Kill the Gov- 
ernment activities"', because the gaps that need 
filling will still be there, crying to be filled. 

I shall put the question in still another way; 
How can we operate the State Department pro- 
gram so that it will win confidence at home and 
abroad, and so that it won't in fact interfere with 
private agencies or even seem to control the flow 
of information? 

I shall now quote again from Mr. Knight's 
speech. Here he expresses still another danger 
whicli he and I both fear. Indeed, what he said 
was so similar to what I said in iny recent speech 
on the Associated Press that I am going to quote 
us both. 

He said : 'Had not Nazi and Fascist forces in 
Germany and Italy seized and dominated the press 
and all communication facilities at the start, the 
growth of these poisonous dictatorships might well 
have been prevented and the indoctrination of na- 
tional thought in the direction of hatred and mis- 
trust might have been impossible. . . . the 
ability of political leaders to seize power and black 
out the minds of whole peoples must be prevented 
in the future if peace is to be maintained with the 
aid of international tolerance and understanding.'' 

The text of my speech ^ contained this: "Today 
at Ni'irnberg and elsewhere war criminals are 
being tried. They are the former rulers who 
plunged the world into war. But they might well 
have been powerless if their peoples had known 
the truth about the United States. The war was 
made certain by their lack of knowledge, just as a 
new war is possible if the same lack of knowledge 
continues — if the same distortions are not com- 
bated with the truth. 

''The peoples of the world did not know we were 
powerful — powerful beyond their wildest dreams 
of their own power. They were told we wei'e weak 
and divided, our economy out of Kilrer, our people 
starving — and they believed it. 

"They were told we were soft and flabby, wishy- 
washy and scared — and they believed it. 

' Itui.LKTlN (if Apr. 7, ]!»40, p. .'574. 



''They were told, above all, that the American 
system is no good, that it doesn't work, that democ- 
racy is hypocrisj' and so-called freedom a joke. 
They were told that our leaders — Government, in- 
dustrial, labor, and press — were scoundrels, that 
our culture was semi-barbaric, our ideas tainted, 
our morals base. And they believed all this." 

NoM', the danger Mr. Knight and I agree on did 
not die with the surrender of the Axis armies. We 
know that another war is in the making if thu 
j)eoj)les of other lands again misunderstand us — 
either through our own negligence or through de- 
liberate distortions abroad. 

And the practical question is: How can the 
American people best go about the urgent task of 
developing understanding throughout the world? 

AVhat is needed is the same frank recognition of 
the pi'oblem, and the same courageous, construc- 
tive, cooperative attack on it that the American 
Society of Newspaper Editors has made in the re- 
lated field of assuring freedom fi'om restrictions 
on the flow of information. 

It took the war to make all of us aware of the 
enormous gaps in United States information 
reaching other peoples and of the potential dan- 
gers inherent in those gaps. One of the most un- 
expected discoveries of our millions of men and 
M'omen who served abroad during the war is the 
extent of distortion existing in the minds of other 
jieoples about the United States. Serving in 
Allied, neutral, and liberated countries, in coun- 
tries with and without American press services, 
in advanced and primitive countries, they were 
faced with a distressing situation. 

Mr. Knight reports his observations while he 
was director of censorship in London. He said : 
"While in England, I was constantly disturbed 
over the manner in which the British press mis- 
interpreted the America scene. The trivialities 
of Hollywood were invariably given prominent 
display and it was not uncommon to meet the pro- 
prietors of British provincial newspapers whose 
interest in America seemed to begin and end with 
legends of Al Capone and the bright lights of 
filmland. 

"AVe have had a free and uncensored exchange 
(if news M-ith England for generations," Mr. 
Knight continued, "but evidently we have never 
succeeded in convincing the English people that 
America is anything but a land of milk and honey. 

"Like many portions of the American press, a 
London newspaper editor is always looking for 



AFRIL 28, 1946 



725 



the sensational, and liis readers evidently enjoy 
the juicy tidbits from this side of the Atlantic. 

''American films, too, have piven the Britisli 
])ublic a fanciful conception of life in America 
and a false evaluation of our hlessinjis and short- 
comings."' 

Let me emphasize Mr. Knight's observations. 
If such misinterpretations are true of the English, 
with whom we share a common language, and with 
whom we share so many common institutions and 
traditions, including freedom of the press, what 
is the situation in countries with different lan- 
guages, religions, customs, and aspirations, and 
with far fewer facilities for communication? 

It is hard for me to square Mr. Knight's descrip- 
tion of England, where, as he says, we have had 
a free and uncensored exchange of news for gen- 
erations, with his saying elsewhere in the same 
speech : "I am of the firm opinion that the story 
of America can best be told by our own press as- 
sociations and the correspondents of foreign 
newspapers who enjoy complete freedom of ex- 
l^ression in the dispatches they file from our 
shores.'' 

Because these two quotations cannot, in my 
opinion, be squared, I want to make four quali- 
fications to any generalization dealing with sole 
reliance on jjrivate media. I hope you will agree 
these qualifications are reasonable and realistic. 

The first is that there are critical areas where 
private American services cannot operate for po- 
litical reasons; the.se are tremendous and vital 
areas. 

The second is that there are other areas, as in 
parts of southeast Asia, where it is not yet com- 
mercially profitable or practicable for American 
private agencies to operate. 

Third, the "American story", as Mr. Knight calls 
it, I'equires certain media for providing infor- 
mation which are not practicable or profitable for 
private agencies to operate anywheie. Among 
these are short-wa\e voice broadcasting, American 
libraries and exhibits, documentary films and film- 
strips, and the provision of full texts of official 
documents. In all of these media, I would wel- 
come offers from private agencies to take them 
over, if given assurance that private agencies 
would do any kind of an adequate job. Particu- 
larly in the field of short-wave broadcasting. I 
would be delighted if it were adequately financed 
either liy the press associations or the domestic 



radio interests; but the commercial loss involved 
seems to pose an insuperable financial hurdle. 

Fourth, even the spot news can only bf under- 
stood by people in other co*mtries in the context 
of background material adapted to their compre- 
hension. The wire services today provide but lit- 
tle background material. A high percentage of 
their news stories are identical with those written 
for Americans. 

All who study this field discover that handling 
information abroad is not a mere extension or by- 
product of the preparation and dissemination of 
news for American readers. It is a field in itself. 

The OWI and the OIAA found this out in the 
hard school of experience. They fovmd it neces- 
sary to construct a whole new pattern of news con- 
cepts and news writing, especialh' adapted for 
readers unfamiliar with American life. In this 
process they learned much. 

For example, in the beginning the war agencies 
took for granted that columns and commentaries 
by America's best-known writers would be a splen- 
did source of material for cabling and broadcast- 
ing to other countries. But they soon discovered 
that people in other countries simply didn't know 
what the writers were talking about a good part 
of the time. Their references to American cus- 
toms, ideas, and governmental processes all need 
explanation and background. The OWI ap- 
proached many of these people and explained the 
problem. As a war service, the writers prepared 
special columns for people of other countries. 
Weekly columns were written by men like Maj. 
George Fielding Eliot, Raymond Swing, Paul 
Schubert, Leo Cherne, Barnet Nover, Walter Mil- 
lis. Admiral Harry E. Yaruell, and special pieces 
by Ray Clapper and scores of others, all telling 
in simple, understandable language the back- 
ground about the United States and its democratic 
processes. The reception was astonishing. Let- 
ters and messages poured in from all over the east- 
ern half of the world, saying, in effect. '"Why 
haven't you been doing this sort of thing all along? 
Now for the first time I understand how the Amer- 
ican electoral system works; or why the negro prob- 
lem can't be solved overnight." 

OWI outpost officers were in constant touch with 
editors in each country, finding what was needed 
and cabling back instructions and information 
to the h(mie staff. Tlie total daily cable file of 
the OWI was 100,000 words, of which 40,000 were 
original writing b^' the OWI staff. 



726 



DEPARTMENT OF STATE BULLETIN 



When Ave listen to generalities about the wire 
services or other private activities abroad, let us 
keep in mind this experience of the OWI, which 
demonstrates the need for background material 
to make the spot news intelligible. This need I 
liope the wire services will increasingly learn to 
till. But let us remember also my other three qual- 
ifications, which indicate the essential role of gov- 
ernment. 

Let me now review brieflj' the program the State 
Department proposes, which is now being consid- 
ered by Congress. We pi'opose an operation at 
about 25 percent of the level maintained during 
the war, in terms of money and people, by the OWI 
and OIAA. All psychological warfare has of 
course been abolished. The 100,000 word cable- 
wireless file I just mentioned has been virtually 
eliminated, and there is no provision for it in the 
194:7 budget. All magazines except one, for Russia, 
have been discontinued. All other operations ex- 
cept cultural exchanges have been drastically 
slashed. Of the nine activities that are proposed, 
all but two are concerned with background and 
with long-term cultural exchanges. Only two in 
any way involve the handling of spot news. One 
of these is the State Department Radio Bulletin, 
which every day provides our missions abroad, 
including our information officers, with complete 
texts of important Government documents. These 
are made available abroad to those interested in 
them. The second is short-wave voice broadcast- 
ing, which we carry in 24 languages. About one 
fifth of our broadcasting consists of spot news. 

Because it is only the spot news in the short-wave 
broadcasting that is at issue with the AP, I want 
to quote Roscoe Drummond, chief of the Washing- 
ton bureau of the Christian Scierwe Monitor, and 
one of the capital's most respected correspondents. 
Mr. Drummond reported only two weeks ago that 
lie had just read 60,000 words from the scrijits of 
our voice broadcasts, over a representative 48-hour 
period when important news was breaking. "The 
State Department", Mr. Drummond concluded in 
an article on the subject, "is performing a needed, 
intelligent and notably objective job in its news 
radio-casting to foreign countries. . . . Its 
purpose, as evidenced by the radiocasts themselves, 
is not to wage an aggressive propaganda war 
around the world, but to present to distant peoples, 
who often have little access to world news and less 
to American news, a faithful, factual, balanced 



day-to-day report about what they can't afford not 
to know about the United States." 

I hope it is clear to all of us by now that the 
over-all information task before us is too great 
for any one agency, or for any one type of infor- 
mation medium. The task calls for the efforts of 
all groups, jiublic and private, that can make a 
contribution. It is with this in mind that I wish 
now to make a proposal to the American Society 
of Newspaper Editors. The proposal is that you 
undertake a continuing study of the whole field 
of handling news abroad, of its needs, opportuni- 
ties, and difficulties, and of what is actually being 
done both by private agencies and services and by 
Government. By trips abroad your membership 
can get first-hand knowledge, on-the-scene infor- 
mation, that will be invaluable. 

This proposal has its origin in an offer made by 
President Knight last January. At that time, 
when the Associated Press and United Press had 
refused to continue their service to the Govern- 
ment, I hoped that some independent and objective 
group might be acceptable to the press associa- 
tions as a committee to investigate the matter and 
make recommendations which they would use as 
guides in the hoped-for further consideration of 
the issues at stake. 

On January 31 I telegraphed to Mr. Kjiight, 
saying: "Have you any advice on the AP or UP 
matter? Would the American Society of News- 
I^aper Editors be willing to appoint a committee to 
take an objective look at the whole problem?" 

Shortly after this, I received the following tele- 
gram from Mr. Knight: "At various times you 
have indicated a willingness for an independent 
review and investigation of the State Department's 
informational activities abroad. In view of the 
current controversy between your division of the 
State Department and two of the major press as- 
sociations, the American Society of Newspaper 
Editors through its standing committee on world 
freedom of information M'ill be glad to undertake 
such a study if you so desire." My mind and heart 
were then concentrated on the immediate situation 
regarding AP and UP. While I was delighted 
with the offer, I felt that such a study would be im- 
mediately productive only if the press associations 
would join me in encouraging it. They did not in- 
dicate an interest in such a study. Perhaps I 
erred at that time in not encouraging the study. 



APRIL 28, 1946 

even without their interest, tied to the dissemina- 
tion of American news abroad. 

As time lias jjassed, it has become increasingly 
clear that a comprehensive examination of the 
whole field of the handling of American news 
abroad can iierform an indispensable service. 

First, to studj' the foreign output of the Ameri- 
can press services as to coverage, volume, and char- 
acter of content, and the reprocessing of this ma- 
terial abroad before it reaches the foreign public. 
This helps to delineate the needs and the gaps. 

SecotuI, to study the impact on foreign peoples of 
the news they receive about America from all 
sources. 

Third, to identify the nature of the misconcep- 
tions about America which arise from inadequate, 
unreiJresentative, unintelligible, or distorted news, 
and to spot the gaps that need to be filled. 

Fourth, to recommend steps to fill the gaps, 
either by private or Government action, and to 
help appraise the efforts of the Government to do 
its part of the job. 

Fifth, to advise the State Department in its ef- 
forts to advance the free flow of news and infor- 
mation throughout the world. 

What I have tried to do this afternoon is to out- 
line as briefly as possible the scope of the field 
newly recognized by the United States of providing 
information about the United States to tlie peoples 
of other countries. I hope that, after my words of 
today are forgotten, four thoughts will remain in 
all our minds. 

The fii-st is that this field is an integral and in- 
dispensable part of the biggest task facing every 
man, woman, and child in our country — building 
an endui'ing peace. This surpasses merely com- 
mercial or conventional pre-war considerations. 

The second is that there exist many problems, 
many dangers, in carrying out an adequate pro- 
gram — problems which must be solved, dangers 
which must be averted by positive and realistic 
steps forward. 

The third is that, although private agencies 
must cari-y the major load, they cannot do the 
job alone. The Government is needed to fill the 
gaps in current activities. 

The fourtli is that wliole-hearted recognition of 
the common nature of our effort is tlie key to 
achieving our mutual goal. In this field, as in all 
others, there will always be disagreements, both 
on details and on major issues. It is the unique 



727 

characteristic of democracy that it makes possible 
tlie expression and debate of those differences and 
from them builds a united nation. That is why 
we revere the motto, e pluribios imum — from many, 
one. 

Our great hope for the future is that mutual 
understanding among the peoples of the world 
can be achieved, because those things which men 
hold in common are stronger than those things 
that separate them. Let us make a beginning in 
the realization of this hope by now achieving 
mutual understanding among ourselves. 



ROSS — Continued from page 705. 
Finally, the subcommittee unanimously agreed to 
request the ILO to resume its study of safety 
provisions in coal mines, interrupted by the war, 
and to make thorough inquiries into the health of 
coal miners. The full committee decided that 
these principles are to be acted upon by the next 
session of the group in the capacity of a technical 
preparatory conference for the purpose of draft- 
ing a convention for consideration by the next 
following international labor conference. 

Not the least important among the committee's 
accomplishments was the opportunity it offered to 
the i-epresentatives of the various groups in the 
coal-mining industries of the several important 
producing countries to get acquainted with each 
other and to exchange views on their respective 
problems. In this manner the group established a 
community of interests and a sound basis for fur- 
ther practical operation in the future. 

The accomplishments of a single meeting of the 
Coal Mining Committee do not constitute an ade- 
quate basis for passing judgment on the future use- 
fulness of the newly established tripartite indus- 
trial committees. However, the fact that this new 
machinery has established both a desirable spirit 
of cooperation and a working arrangement for the 
handling of social problems in a vital and difficult 
industry offers encouragement to its originators, 
and the ILO is following up the experiment by 
scheduled meetings of the Industrial Committee 
on Iron and Steel and the Metal Trades Committee 
in Cleveland, Ohio, on April 23 and May 2, 1946, 
respectively. The achievements of the Coal Min- 
ing Committee are in no small measure attributable 
to the high caliber of the participants and the 
willingness on the part of all groups present to 
cooperate in order to attain the desired goals. 



728 



DEPARTMENT OF STATE BULLETIN 



Establishment of Diplomatic Relations With Yugoslavia 



NOTES FROM THE SECRETARY OF STATE TO THE YUGOSLAV CHARGE D'AFFAIRES 



[Ri'leasi'il to the press Aiiril 17] 

The followin.g tiro commumcations were delivered 
to the Yugloslav Charge d^Affaires ad interim, on 
April 16, me 

"The Secretary of State presents his compli- 
ments to the Charge d'Affaires ad interim of the 
Federal People's Eepublic of Yugoslavia and ac- 
knowledges receipt of the hitter's communication 
No. 407 of April 2, 1946 ^ in which, acting upon 
instructions, the Charge d'Affaires informed the 
Secretary of State that 'the Government of the 
Federal People's Republic of Yugoslavia, after 
having studied all the questions concerning the rec- 
ognition of Yugoslavia's international obligations 
in conformity with the decisions of the Second 
Session of the Anti-Fascist Council of National 
Liberation in Jajce in November, 1943, hereby 
gives an affirmative answer to the note of the De- 
partment of State of December 22, 1945 - con- 
cerning the international obligations of the former 
Yugoslav Governments.' 

1 Not pi'iuted. 

2 Bulletin of Deo. 23, 1945, p. 1020. 



'"The Secretary of State is gratified to receive 
this assurance that the Federal People's Republic 
of Yugoslavia confirms its continued recognition 
of the existing treaties and agreements between 
the United States and Yugoslavia and accordingly, 
pursuant to his communication of December 22. 
1945 referred to above, requests that the Charge 
d'Affaires inform the Yugoslav Government that 
the United States Government is now prepared to 
proceed with the issuance of appropriate letters of 
credence accrediting the United States Ambassa- 
dor to the Federal People's Republic of Yugo- 
slavia." 



"Sir: I refer to your note of March 1. 194(1 in 
which you state that the Yugoslav Government 
desires to appoint Mr. Sava N. Kosanovic as Am- 
bassador Extraordinary and Plenipotentiary of 
Yugoslavia to the United States. 

"The appointment of Mr. Kosanovic in the 
above-mentioned capacity is agreeable to this Gov- 
ernment. 

"Accept [etc.] , .^ „ „ 

'■ James F. Byrxes 



Addresses of the Week 



The President 



Assistant Secretary Benton 



Charles A. Thomson 

Adviser to Office of International 
Information and Cultural affairs. 
The President 

I'iorello LaCuardia 

Director-General of UNRRA. 
Herbert Hoover 
Honorary Chairman of the Famine 
Emergency Committee. 
Herbert S. Marks 

Secretary, Secretary of State's 
Committee on Atomic Energy 
and Assistant to the Under Sec- 
retary of State. 



Individual Liberties — A Pan-American 
Ideal; excerpt,? printed in this issue. 

American News Abroad; printed in this 
issue. 

The Role of Government in UNESCO; 

see Department of State press release 

263 of April 18. 
America's Solemn Obligation in World 

Famine Crisis; printed in this issue. 
Same subject; printed in this issue. 

Report on the European food problem; 
printed in this issue. 

Foreign Policy and the Atom: .\ dis- 
cu.ssion participated in by Senator 
Brien McMahon, Dr. E. U. Condon, 
and Mr. Marks. Not printed. 



Delivered before the Governing Board 
of the Pan American Union, 
Washington, on April 15. 

Delivered before the Association of 
American Newspaper Editors in 
Washington, on April 18. 

Delivered before the American Philo- 
sophical Society in Philadelphia, 
April 19. 

Delivered over radio from the White 
House, April 19. 

Delivered over radio from the White 
House, April 19. 

Delivered over radio from Cairo, 
April 19. 

Remarks made on NBC University 
of the Air Program, "Our Foreign 
Policy," on April 20. 



APRIL 2n, 1946 



729 



Claims for American and 
Other Foreign Property 
in the Netherlands 

[Helt'ased to Ihe pr«.^s.s April 17] 

Shortly after tlie occupation of the Netherlands 
by the German Army in May l!>4tl, the German 
military authorities issued a decree that all prop- 
erty of German enemies in the Netherlands should 
be rejiistered. In April 1942. the decree was 
amended to include nationals of the United States. 

A German official, Generalkommissar fiir Fin- 
anz und Wirtschaft (General Commissioner for 
Finance and Economy), was charged with the ex- 
ecution of the decree vesting German-enemy prop- 
erty, and Deutsche Revisions- und Treuhand A. G., 
Geschiiftsstelle. The Hague, a subsidiary of a 
company established in Germany, was named as 
the depository. This company, generally referred 
to as Treuhand, acted as the principal custodian 
for vested property, pai'ticularly commercial debts, 
but there were also several joint custodians (Sajji- 
melvenralfer)^ whose activities concerned portions 
of vested properties. The money under the cus- 
todianship of these joint custodians, however, had 
to be turned over to Treuhand. 

Prior to the liberation, the Netherlands Gov- 
ernment in London issued a Royal Decree, having 
the effect of law within the country, published as 
Staatsblad No. E 133, dated October 20, 1944, 
which provided that all enemy property within 
the Netherlands was to be vested in the name of 
the Government. Accordingly, the assets of Treu- 
hand, as well as the property of all other German 
agencies and individuals which was left in the 
Netherlands when the Germans departed, came into 
the hands of the Netherlands Government. 

The Netherlands decree provided for the crea- 
tion of a Government agency, Het Nederlandsch 
Beheersinstituut, patterned largely along the lines 
of our Alien Property Custodian Office, and all 
enemy-held (German) property Avas placed under 
its jurisdiction. Through a system of branch of- 
fices in the larger cities of the Netherlands, the 
Custodian Office has appointed custodians {ie- 
heerders or hestuurders) for the properties of 
practically all German agencies and individuals. 

In the case of Treuhand. notaries J. van Hasselt 
and A. M. Vroom of 250 Singel, Amsterdam, were 
appointed custodians, and it is to them that claims 



should be sent for American property which the 
German military authorities took over through 
Treuhand. 

The American Embassy at The Hague has been 
informed by the Netherlands authorities that, 
under the laws of that country, debtors who were 
forced by the Germans to pay Treuhand money 
owed to the enemies of Germany are considered 
to have paid off their debt, and that such creditors 
are to regard the German agency to which the debt 
was paid, in this case Treuhand, as the debtor, 
rather than the firms or individuals which con- 
tracted the debt. 

It is suggested that Americans filing claims for 
bank accounts, or other sums owing them which 
were turned over to Treuhand, write promptly to 
the custodians mentioned above, stating in their 
letter all of the details of which they are aware 
regarding the transaction between their debtor and 
Treuhand, such as amount, date, place of payment, 
etc. It would be well to send a copy of the letter 
registering the claim to the former debtor in the 
Netherlands with the request that he communicate 
with Treuhand and provide any additional perti- 
nent details regarding the transfer of the funds to 
Treuhand which may have been omitted in the 
claim. 

The final date for registering claims for Amer- 
ican property which was seized by the Germans 
and is now in the custody of the Netherlands Gov- 
ernment was originally set for January 1, 1946. 
However, it has now been postponed to May 1, 
1 946. While the Department will endeavor to have 
consideration given to claims which, for good rea- 
son shown, cannot be filed by that thite, it is sug- 
gested that every effort be made to register claims 
by the date indicated. 

The liquidation of Treuhand and settlement 
with claimants is likely to be a protracted affair. 
Late reports from the Netherlands indicate that 
the bulk of Treuhand's assets and i-ecords were 
taken into Germany, and although the Netherlands 
authorities believe they are aware of the where- 
abouts of these assets and records, they have not, 
as yet, gotten possession of them from the military 
authorities in the respective zones of occupancy. 
Dollars owed Americans were taken over by the 
German agency at the rate of $1.00 = Netherlands 
florins 1.885. The exchange rate at which the 
eventual settlement with creditors will be made 
has not been determined at this time. 



730 



DEPARTMENT OF STATE BULLETIN 



Czeclioslovakia-Siam Status 
in Relation to the War 

In the tabulation entitled "Status of Countries 
in Relation to the War, August 12, 1945", printed 
in the August 12, 1945 issue of the Bulletin and 
reprinted as Department of State publication 
2389, Czechoslovakia was listed as being at war 
with various countries including Thailand 
(Siam). This listing was based on (1) various 
statements of the Czechoslovak Government indi- 
cating a state of war between Czechoslovakia and 
countries which were at war with the United 
States, the United Kingdom, and the Union of 
Soviet Socialist Republics, and (2) the fact that 
Thailand was a country which fell into that 
category. 

In this connection the Ambassador of Czecho- 
slovakia has been kind enough to write as 
follows : 

"In accordance with instructions received from 
the Czechoslovak Ministry for Foreign Aifairs, 
the Czechoslovak Ambassador has the honor to 
state that the note of February 28, 1944 from the 
Acting Czechoslovak Minister for Foreign Af- 
fairs to the American Embassy near the Czecho- 
slovak Government in London^ — the text of which 
is reproduced on page 4 of the publication — should 
be understood as meaning that the Czechoslovak 
Republic has not considered itself as in a state of 
war with Thailand." 



U.S. Liberty Ships Load 
Russian Grain for France 

[Released to the press April 15] 

The Department of State and the War Ship- 
ping Administration announced on April 15 that 
the first three United States liberty ships to load 
Russian grain for France, the Henry V. Alva- 
nulo, the R. M. Williamson, and the Fisher Ames, 
sailed from Odessa April 10 carrying 25,531 tons 
of wheat and barley. The Alvarado will go di- 
rectly to France and is expected at Marseille on 
April 16. The Williamson and Ames will stop 
at Constanta for fuel oil before proceeding to 
Marseille. 



Six other WSA vessels arriving at Odessa with 
relief cargoes for the Union of Soviet Socialist 
Republics are scheduled to load grain during the 
next few days, and all of them should sail in 
April. Three more steamers are expected to be 
available for loading during the latter part of 
April; these can be supplemented on short notice 
if additional grain is available. Arrangements 
will be made to furnish additional ships as re- 
quired for May and June. The 46 vessels WSA 
is now prepared to assign in April, May, and 
June can lift a total of 375,000 tons. Other WSA 
vessels from eastern Mediterranean operations 
will be added if additional grain arrives at 
Odessa. WSA has offered France sufficient ton- 
nage to move any or all of the 500,000 tons of- 
fered by the Soviet Union. 

As fast as ships discharge their UNRRA car- 
goes at Odessa, they are being fitted to handle 
grain and placed on the loading berth. The 
United States vessels are being loaded at Odessa. 
The two Soviet shijjs assigned to this service are 
understood to have loaded at Nikolaev, a port too 
shallow for fully loaded liberty ships. 



Letters of Credence 

AMBASSADOR OF PARAGUAY 

The newly appointed Ambassador of Paraguay. 
Juan B. Ayala, presented his letters of credence 
to the President on April 9. For text of his re- 
marks on the occasion of the presentation of 
his credentials and reply by the President see 
Department of State press release 234. 



AMBASSADOR OF VENEZUELA 

The newly appointed Ambassador of Venezuela, 
Alfredo IMachado Hernandez, presented his letters 
of credence to the President on April 10. For text 
of his remarks on the occasion of the presentation 
of his credentials and reply by the President see 
Department of State press release 238. 



APRIL 28, 1946 



731 



Visit to Greece of the 
U.S.S. "Missouri" 

[Released to the luess April 16] 

Text of telegram received hy the Secretary of State • 
from the Greek Minister of Foreign Affairs con- 
cerning the -visit of the U.S.S. Missouri 

Please accept and convey to the Government of 
the United States the lieartfelt thanks of the Hel- 
lenic Government and people for the visit of the 
United States ship Missouri which is deeply ap- 
preciated here in its significance of goodwill and 
solicitude of your great country towards Greece. 
The Gi'eelc people have welcomed with pride and 
gratitude by the shores that witnessed the Battle of 
Salamis the glorious ship who carried the victory 
of freedom to the far end of the world and who 
brings to them now the message of faith and hope 
in the ideals for which our peoples fought. 

C. TSALDARIS, 

Minister of Foreign Affairs. 

Text of the reply made by the Secretary of State 
on April 15 

On behalf of the Government and people of the 
United States, I thank Your Excellency for your 
message concerning the visit of the U.S.S. Mis- 
souri. It is most gratifying to learn of the warm 
welcome extended to the Missowl by the people of 
Greece. 

Byrnes 



Censorship Procedure for 
American Correspondents 
in Moscow 

[Released to the press April 17] 

Asked concerning the censorship procedure as 
applied to American correspondents in Moscow 
and whether there is a blind censorship, a spokes- 
man of the Department of State said that it is 
the Department "s understanding that about March 
1 censorship functions were transferred from the 
Press Department at the Foreign Office to Glavlit 
(Chief Literary Administration). Correspondents 



were required to file their stories at the post office 
but were not informed of deletions or changes. 
This blind censorship was i-elaxcd March 29, and 
since that time not only are correspondents told by 
telephone from the Censorship Bureau when sto- 
ries are killed in toto or censored in part but they 
may request to see a copy of the censored dis- 
patch before it is telegraphed. 

The one remaining diffei'ence which now exists 
between the procedure followed today and the pro- 
cedure followed when dispatches wei'e censored 
by the Press Department of the Foreign Office is 
that now correspondents have no means of com- 
munication with the censor and thus no opportu- 
nitv to discuss changes made with him. 



Dispatches of Foreign Corre- 
spondents To Be Censored in 
Tehran 

[Released to tlie press Apiil 17] 

The American Embassy in Tehran has informed 
the Department of State that foreign correspon- 
dents in Iran have been notified officially by the 
Iranian Ministry of Posts and Telegraphs that it 
henceforth will exercise censorship of dispatches 
filed by foreign correspondents there. The Minis- 
try stated that it will exercise censorship on the 
basis of article 2G of the International Communi- 
cations Convention which was signed in 1932 in 
Madrid. 

Notification will not be given to foreign corre- 
spondents when their dispatches are suspended nor 
will they be given an opportunity by the Ministry 
to make changes or discuss such suspensions of 
their dispatches, according to this information. 

The Embassy has reported that foreign corre- 
spondents thus far have not been accorded per- 
mission to inform the organizations which they 
represent concerning the censorship order. 

American press organizations which have repre- 
sentatives in Tehran at present include the Asso- 
ciated Press, New York Times, Chicago Tribune., 
United Press, Chicago Daily Neu-s and Time. 



732 



DEPARTMENT OF STATE BULLETIN 



PAU Committee To Draft Treaty Proposals for Rio Conference 



ADOPTION OF RESOLUTION OF ASSISTANT SECRETARY BRADEN 



[Released to the press by the Pan American Union April 11] 

At the meeting of the Governino- Board of the 
Pan American Union held on April 10, the Board 
approved a motion of the representative of the 
United States, Mr. Spruille Braden, reading as 
follows : 

"In order that the work on the permanent treaty 
of mutual assistance to be drawn up at the con- 
templated conference of Rio de Janeiro may go 
forward with the greatest possible dispatch, I move 
that the Chairman appoint a committee to coordi- 
nate the draft treaty proposals, together with such 
other suggestions as have been received, into a 
single working document for consideration by the 
conference." 

Pursuant to this authorization the chairman of 
the Governing Board, Dr. Guillermo Sevilla 
Sacasa, Ambassador of Nicaragua, has appointed 
tlie following members to serve on the committee: 



Victor Andrade, Ambassador of Bolivia 
Joao Carlos Muniz, Ambassador of Brazil to 

the PAU 
Marcial Mora, Ambassador of Chile 
Guillermo Belt, Ambassador of Cuba 
Galo Plaza, Ambassador of Ecuador 
Julian R. Caceres, Ambassador of Honduras 
I-uis Quintanilla, Ambassador of Mexico to 

the PAU 
J. J. Vallarino, Ambassador of Panama 
Spruille Braden, Assistant Secretary of State 

of the U. S. 

In making the appointments the chairman of the 
board announced that, because of his deep interest 
in the matter, he also will attend the meetings of 
the committee. 

The foregoing committee will examine proposals 
submitted by the Governments of Bolivia, Brazil, 
Ecuador, Mexico, Panama, and the United States. 



Removal of Alien Enemies 

In Proclamation 2685 of April 10, 1946^ the 
President prescribed and proclaimed the follow- 
ing regulations, additional and supplemental to all 
other regulations affecting the restraint and re- 
moval of alien enemies : 

"1. All alien enemies within the continental lim- 
its of the United States brouglit here from other 
American republics after December 7, 1941, who 
are within the territory of the United States witli- 
<jut admission under the immigration laws, shall, if 
their continued residence in the Western Hemi- 
s^jhere is deemed by the Secretaiy of State to be 
prejudicial to the future security or welfare of the 

' 11 Federal Register 4079. 

■ BiTUjsTiN of July 22, liM.J, p. 107. 

' Bulletin of Sept. 9, 194.5, p. 361. 



Americas, be subject upon the order of the Secre- 
tary of State to removal from the United States 
and may be required to depart therefrom in accord- 
ance with such regulations as the Secretary of 
State may prescribe. 

"2. In all cases in which the Secretary of State 
shall have ordered the removal of an alien enemy 
under the authority of this proclamation or in 
which the Attorney General .shall have ordered the 
removal of an alien enemy under the authority of 
Proclamation No. 2655 of July 14, 1945,= thirty 
days shall be considered, and is hereby declared 
to be, a reasonable time for such alien enemy to 
effect the recovery, disposal, and removal of his 
goods and effects, and for his departure. 

"3. This proclamation supersedes Proclamation 
No. 2662 of September 8, 1945. entitled •Removal 
(if Alien Pjuemies.' " '^ 



AI'RIL 28, 1946 



733 



Leiid-Lease and Surplus Property Settlement With India 



[Released to the press March 30) 

Representatives of the Government of India 
will shortly arrive in Washington to begin dis- 
cussions with United States officials regarding an 
over-all settlement of lend-lease, reciprocal-aid. 
and surphis-property questions now pending be- 
tween the two countries. 

Heading the Government of India Delegation 
will he A. A. Waugh, Acting Member for Supply 
in the Viceroy's Executive Council. He will be 
accomi)anied by Mohammed Ali, Financial Ad- 
viser, Military Finance, General Headquarters, 
India Command; Sir Eobert Targett, retiring Di- 
rector General of Disposals. Govermnent of In- 
dia; and A. K. Chanda, Additional Financial 
Adviser. Industry and Supply Department. Gov- 
ernment of India. 

Participating in the talks foi- the United States, 
under the general guidance of the Assistant Sec- 
retary of State for Economic Affairs. Mr. Clay- 
ton, will be Thomas McCabe, Foreign Liquidation 
Commissioner, and Emilio G. Collado, Deputy on 
Financial Affairs to Mr. Clayton. Other State 
Department experts and advisers will be Cliester 
Lane, Deputy Foi'eign Liquidation Commis- 
sioner; Hubert Havlik. Chief, Division of Lend- 
Lease and Surplus War Property Affairs; and 
Ambrose Cramer. Office of Foreign Liquidation. 

During the war the United States shipped to 
India under lend-lease arrangements considerable 
quantities of military articles required for the 
defense of India for war production. The Gov- 
ernment of India extended reciprocal aid to the 
United States by furnishing large amounts of 
materials to the American forces in India and by 
shipping to this country raw materials needed 
here for war production. 

AVith the defeat of Japan the evacuation of the 
United States Army from India began. It be- 
came necessary to arrange for the disposal of 
Army property and supplies no longer needed by 
the AVur Department. By agreement with the 
local authorities, sales of the Army surplus were 
initiated last fall on the basis of a priority scheme 
in which United States Government agencies, 
UNRRA. religious, charitable, educational and 
medical institutions, and American manufacturers 



of branded goods or their agents were given pref- 
erence, in that order, over the Government of 
India and the general public. After these prior- 
ity groups had had an ample opportunity to sat- 
isfy their needs, it was decided that in order to 
speed and complete the repatiiation of our troops 
tiie most practical means of disposing of the re- 
maining surpluses was to sell them in bulk to the 
Government of India. Our representatives in 
India have recently concluded a preliminary Indk- 
sale agreement with the Government of India, 
which is subject to review in the forthcoming over- 
all settlement. 

The joint war effort of the Governments of the 
United States and India has given new importance 
to the long-standing friendly relations between the 
two countries. The United States Government 
is confident that a mutually satisfactory agree- 
ment, liquidating lend-lease and related problems 
arising from the war, will be reached in the forth- 
coming discussions. An added significance is 
given to these talks by the increasing international 
importance of India as one of the United Nations. 
India's representatives are playing a prominent 
role in the activities of the Economic and Social 
Council, the Food and Agriculture Organization, 
and the International Bank for Reconstruction 
and Development and tlie International INIonetary 
Fund. India has recently accepted this Govern- 
ment's invitation to attend a preliminary interna- 
tional conference of the principal trading coun- 
tries of the world, to be convened this j'ear, to lay 
the groundwork for expansion of multilateral 
trade through a permanent international trade 
organization. 

This Government sincerely hopes that the con- 
clusion of an over-all lend-lease and surplus-prop- 
erty settlement, which represents a necessarj' post- 
script to the joint war effort of the two countries, 
\\]\\ be a prelude to increasingly cooperative and 
cordial peacetime relations between the United 
States and India. The comprehensive programs 
of industrial and agricultural advancement now 
being formulated in that great Asiatic country are 
viewed sympathetically by this Government. The 
United States stands ready to assist the carrying 
out of these programs in the various ways which 
would prove of mutual benefit to the two countries. 



734 



DEPARTMENT OF STATE BULLETIN 



The Department 



Development and Promulgation of 
U.S. Policy in Occupied Areas 

[Released to the press April 17] 

Directive on Organization and Procedure for the 
Development and Promulgation of United States 
Policy with Respect to Occupied Areas ^ 

1. Jtjrisdiction 

(a) Consistent with existing international 
agreements and within the scope of its charter of 
organization, tlie State-War-Navy Coordinating 
Cominittee (hereinafter referred to as SWNCC) 
shall coordinate United States policy with respect 
to occupied areas. The term "occupied areas" 
shall include Germany, Austria, Japan and Korea. 
The term "United States Policy" for the purjDOses 
of this directive shall mean all policy which re- 
quires concerted study, consideration or coordina- 
tion by the State, War and Navy Departments. 

(5) The War Department shall continue to be 
responsible for the execution and administration 
of policy with respect to United States jiarticipa- 
tion in the occupation or government of the occu- 
pied areas. 

(c) The Assistant Secretary of State for Occu- 
pied Areas shall be directly responsible to the Sec- 
i-etary of State for the coordination of State 
Department policy with respect to all occupation 
matters. He shall be the State Department mem- 
ber of SWNCC on all matters of occupation policy. 

(<Z) The Assistant Secretary of State for Oc- 
cupied Areas shall take the initiative in submit- 
ting to SWNCC, or to any appropriate sub-com- 
mittee thereof, such policy matters as may require 
concerted study, consideration or action. All oc- 
cupation policy matters or decisions shall be 
presented by the State Depai-tment to SWNCC 
or communicated outside the State Department 
through him or with his concurrence. 

2. Departmental Secretariat 

The coordination of Departmental policy, 
whether political, cultural or economic, provided 

' The substance of this release appears in Departmental 
KcKiiliitions 182.3 and 134.1, copies of which may be 
obtained from the Division of Research and Publication. 



for in 1 (c) above, shall be accomplished by the 
Assistant Secretary of State for Occupied Areas, 
and under his direction and control, through the 
mechanism of the Secretariats herein provided for, 
to wit : 

(ff) Germany-Austria Secretariat : The Depart- 
mental position with respect to any and all mat- 
ters of United States policy in respect of Germany 
and/or Austria shall be developed by a Secre- 
tariat organized and maintained for the purpose 
under the Chairmanship and administration of the 
Chief, Division of Central European Affairs. 

(h) Japan-Korea Secretariat: The Depart- 
mental position with respect to any and all matters 
of United States policy in respect of Japan and 
Korea shall be developed by a Secretariat organ- 
ized and maintained for the purpose under the 
Chairmanship and administration of the Direc- 
tor, Office of Far Eastern Affairs, or his designee. 

(r) Each Secretariat shall include appropriate 
membership from ORI, OIC, EUR, FE, ESP, 
OFD, Le and such other offices of the Department 
as the Chairman may determine. 

(fZ) Each Secretariat shall hold stated meetings 
and a record of its proceedings shall be main- 
tained. Each Chairman shall compile a list of 
projects and studies in respect of occupational af- 
fairs, as suggested by the members of the Secre- 
tariat. These projects shall be assigned for study 
and preparation and submission to SWNCC on 
the basis of relative urgency as determined by the 
Assistant Secretary for Occupied Areas. 

(e) Subject to the approval of the Assistant Sec- 
retary for Occupied Areas, each Chairman shall 
prescribe the rules of conduct of his Secretariat, 
the time and place of its meetings, and the func- 
tional relationship thereof to the Central Secre- 
tariat of the Department. All inter-departmental 
liaison by members of the Secretariat with respect 
to matters within its cognizance shall be accom- 
plished as the Assistant Secretary of State for 
Occupied Areas may determine. 

(/) Subject to the approval of the Assistant 
Secretary for Occupied Areas, or by his direction, 
the Chairman of each Secretariat shall place mat- 
ters on the SWNCC agenda for consideration. 
He shall recommend to the Assistant Secretary 
for Occupied Areas duly qualified candidates for 
State Department membership on any SWNCC 
sub-committee appointed to consider any matter 
in respect of occupation affairs, and no one shall 



APRIL 28, 1946 



735 



be appointed as the State Department member of 
any sucli sub-committee of SWNCC without the 
approval of, or clearance by, the Assistant Secre- 
tary for Occupied Areas. 

(ff) The Chairman of each Secretariat shall re- 
jjort and be responsible to the Assistant Secretary 
for Occupied Areas with respect to the operation 
of his Secretariat. 

3. Utilization of Departmental Resources 
The Directors of all Offices of the Department 

are hereby severally directed to take any and all 
action as may be necessary or appropriate fully to 
implement the foregoing. Upon the approval of 
the Assistant Seqretary of State for Occupied 
Areas, the Chairman of each Secretariat estab- 
lished in 2 above may apply from time to time, 
or at any time, to the Assistant Secretary for Ad- 
ministration for such personnel and facilities as, 
in his opinion, may be necessary or appropriate 
for the proper execution of the mission hereby 
assigned to such Secretariat. The Assistant Secre- 
tary for Administration shall, to the extent neces- 
sary, in his opinion, levy on any Office or Division 
of the Department for such personnel and facili- 
ties as the Secretariats may require. 

4. Policy Directives 

Policy Directives of SWNCC shall be trans- 
mitted as follows : 

(a) With respect to German and Austrian mat- 
ters, to the United States Military Governor or 
to the United States Representative on the appro- 
priate Allied Control Coimcil, as the case may be, 
through War Department channels. 

(h) With respect to Japanese and Korean mat- 
ters, to the United States Representative on the Far 
Eastern Commission or, where appropriate, to the 
Supi-eme Commander, Allied Powers, through 
War DeiDartment channels. 

5. Effective Date 

The effective date of this directive shall be April 
8, 1946. 

James F. Byrnes 



has agreed that on May 15 he will come to the 
State Department as Legal Adviser succeeding 
Green H. Hackworth, who was elected a member 
of the International Court of Justice. 

Mr. Fahy is now in Berlin serving as Director 
of the Legal Division of tlie Office of the Military 
Governor for Germany (United States) . General 
Clay advised Secretarj^ Byrnes that, in the prep- 
aration of the cases now being tried at Niirnberg, 
Mr. Fahy has rendered outstanding service and as 
adviser and counsel to the military government of 
Gei'many had been of great assistance. Because 
of the valuable service he is rendering. General 
Clay asked that Mr. Fahy not assume his duties as 
Legal Adviser until May 1^. 

Before going to Germany Mr. Fahy was, for 
nearly four years. Solicitor General of the United 
States, to which post he was nominated on October 
29, 1911. Mr. Fahy is a graduate of the Univer- 
sity of Notre Dame and of Georgetown University. 

Secretary Byrnes stated : 

"I am deeply gratified that Mr. Fahy has agreed 
to become the Legal Adviser of the Department. 
His stature and his abilities are in keeping with 
the heavy responsibilities of the office, which, in 
the immediate post-war period, will be greatly 
increased by the work involved in the drafting of 
treaties and the handling of claims arising from 
the war. The decisions in international law taken 
by the United States as a leading democratic power 
in this critical period may set a new pattern for 
tlie whole body of international law. It is my hope 
and my belief that, under Mr. Fahy, the legal staff 
of the Department will come to be regarded, by 
popular and by professional opinion, as having 
unquestioned competency in all matters touching 
international law. 

"Mr. Fahy enjoys an enviable position of respect 
at the American bar, and he brings to his new 
duties in the State Department a broad back- 
ground of administrative and legal experience." 



Appointment of Charles Fahy as 
Legal Adviser 

[Released to the press April 2] 

The Secretary of State announced on April 2 
that Charles Fahy, formerly Solicitor General, 



Establishment of Fisheries and Wildlife 
Branch 

[Released to the press April 16] 

In view of the increasing obligations of the 
United States Government concerning the inter- 
national aspects of fisheries and wildlife matters. 



736 

iiiehuling ti'eaties to which the United States is 
a party, a branch devoted to this subject has 
been established by the Department of State 
within its International Resources Division. 

The functions of the Fisheries and Wildlife 
Branch will consist of formulation and coordi- 
nation of policy and action in international fish- 
eries and wildlife matters and agreements. 

In the fulfilment of its functions the Fisheries 
and Wildlife Branch will coordinate the interests 
and responsibilities of the various Federal de 
partments and agencies in connection with the 
international aspects of fisheries and wildlife. 



Resignation of Thomas D. Blake 

Thomas D. Blake resigned as Assistant to the 
Special Assistant to the Secretary of State in 
charge of press relations, effective April 12. For 
the texts of Mr. Blake's letter of April 4, the Secre- 
tary of State's letter of April 9, Acting Secretary 
of State Acheson's letter of April 5, and Mr. M. J. 
McDermott's letter of April 12 accepting the resig- 
nation, see Department of State press release 245 of 
April 12, 1946. 



DEPARTMENT OF STATE BLLLETIN 

Confirmation 

The St'tialc miifiniieil cm .\pi-il 11. 1'.I4U the nomina- 
tion of Maj, Gen. .lolm H. Hilldring, tT.S..\.. to be an 
Assistant Secretary of State. 



The Foreign Service 



Consular Offices 

The American Consulate at Saigon, Frencli Indochina, 
was reestablished February 19, 1916. 

The American Consulate at Strasbourn, I'raiice. wii.< 
reestablished on March 2.3, 1946. 

The American Cnnsulate at Daireii, Jlancliuria, was 
reestablished on April 7, 1946. 

The .\merican Consulate at Taipei (Taihoku), Taiwan 
(Formosa), was reestablished on April 11, 1946. 



Contents— Continued 



Tlie Dei^artment: 

Development ami Promulgation of U.S. Policy in Occupied Page 

Areas 734 

Appointment of Charles Fahy as Legal Adviser 73-5 

Estaljli.shment of Fisheries and Wildlife Branch 735 

Resignation of Thomas D. Blake 736 

Confirmation 736 

Tlie Foreign Service: Consular Offices 736 



PUBLISHED WITH APPROVAL OF DlflECTOR OF BUREAU OF THE BUDGET 
U S GOVERNMENT PRINTING OFFICE: 1946 



THE DEPARTMENT OF STATE 




VOL. XIV, NO. 357 



MAY 5, 1946 



The British Loan and Foreign Trade 

Bj UNDER SECRETARY ACHESON .... 



page 758 



Transition From League of Nations to United Nations (Part II) 

By HENRY REIFF page 739 



^©NT o^ 



For complete contents 
see inside cover 




.a- S< IWPIfilWTENCENT OF DOCUMENTS 

JUN 19 1946 



THE DEPARTMENT OF STATE 



BULLETIN 



Vol. XIV-No. 357» 




Publication 2524 



May 5, 1946 



For eale by the Superintendent of DocuoiPnte 

U. S. Government Priming Office 

Washington 25, D. C. 

Subscription: 

52 iBBues, $3.50; single copy, 10 cents 

Spec'al offer: 13 weeks for $1.00 
(renewable only on yearly basie) 



The Department of State BVLLETIN, 
a ueekly publication compiled and 
edited in the Division of Research and 
Publication, Office of Public Affairs, 
provides the public and interested 
agencies of the Government ivith 
information on developments in the 
field of foreign relations and on the 
work of the Department of State and 
the Foreign Service. The BVLLLIJIS 
includes press releases on foreign 
policy issued by the White House and 
the Department, and statements and 
addresses made by the President and 
by the Secretary of State and other 
officers of the Department, as well as 
special articles on various phases of 
international affairs and the functions 
of the Department. Injormation con- 
cerning treaties and international 
agreements to which the United States 
is or may become a party and treaties 
of general international interest is 
included. 

Publications of the Department , cu- 
mulative lists of which are published 
at the end of each quarter, as well as 
legisla live material in the field of in ter- 
national relations, are listed currently. 



Contents 



Transition From League of Nations to United Nations. page 

Article by Henry Reiff 739 

Appendix: Texts of Documents 743 

Non-Military Activities in Japan and Korea: Political Activ- 
ities in Japan 749 

Addresses of the Week 751 

The United Nations 

Security Council: 

Discussion of Soviet-Iranian flatter: Remarks by U.S. 

Representatives 752 

Summary Statement by the Secretary-General 753 

Confirmation of Herschel V. Johnson 754 

International Organizations and Conferences 

Calendar of Meetings 755 

Activities and Developments: 

Food Supplies for Japan 756 

UNRRA Operations: Sixth Quarterly Report 757 

Inaugural Sitting of the International Court of Justice . . 757 

The Record of the Week 

U.S. Policy in Maintaining and Developing International 

Law 758 

The British Loan and Foreign Trade. By Acting Secretary 

Acheson 759 

Interdependence of Political and pjConomic Freedom in Po- 
land 761 

.$40,000,000 Loan to Polish Provisional Government ... 761 

Proposed Polish Elections 762 

Economic Affairs With the Philippines 762 

Proposed Limitation on Importation of Swiss Watches: Ex- 
change of Memoranda Between U.S. and Swiss Govern- 
ments 763 

Closing of Displaced-Persons Camps Postponed 764 

U.S. Position on Recognition of Trans-Jordan: Letter From 

the Secretary of State to Senator Myers 765 

Report of U.S. Education Mi-ssion to Japan: 

Transmittal of Report to the Secretary of State 767 

Transmittal of Report to General MacArthur 768 

General MacArthur's Statement 769 

Digest of the Report 769 

Views on Reported Press Censorship in Iran 772 

Negotiations Regarding Military Facilities in Iceland .... 773 
International Control of Atomic Energy. A Radio Broad- 
cast 774 

Visit of Peruvian Dentist 777 

Senate Approves Commodity Protocols: Inter-American Coffee 
Agreement; Regulation of Production and Marketing of 

Sugar 778 

The Department: 

Alfred McCormack Resigns as Special Assistant to the 

Secretary 778 

Departmental Regulation 779 

Publications of the Department of State 780 



Transition From League of Nations 
to United Nations 



Article by HENRY REIFF ' 



PART II 



Committee on Transfer of League Assets 

The Pi-eparatory Commission, in pursuance of 
a recommendation of Committee 7,^ on December 
18, 19J.5 "set up a committee to enter, on its behalf, 
into discussion with the League of Nations Super- 
visory Commission, . . . for the purpose of 
establishing a common plan for the transfer of 
the assets of the League of Nations on such 
terms as are considered just and convenient."^ 
This plan was to be subject, so far as the United 
Nations was concerned, to approval by the General 
Assembly. The Committee consisted of one rep- 
resentative each designated by the Delegations of 
Chile, China, France, Poland, South Africa, the 
Soviet Union, the United Kingdom, and the United 
States. The Committee was instructed to consult 
the duly authorized representatives of the Inter- 
national Labor Organization on questions con- 
nected with the transfer which affected that or- 
ganization; to have regard to the views of the 
Executive Committee as expressed in certain parts 
of its Report ; and to submit its plan to the General 



Assembly, if possible during tlie first part of the 
first session. 

All of these instructions the Committee on 
Transfer of League Assets carried out. Beginning 
on January 4, 19-16, in a series of seven meetings 
by itself and of four jointly witli the Supervisory 
Commission, and after informal consultations by 
the chairman with representatives of the ILO, the 
Committee performed its task and reported on 
February 1 to the full ad hoc Committee on the 
League of Nations set up by the General As- 
sembly.'' 

Elaboration of the Common Plan and 
Accompanying Report 

The Committee, after discussion of principles 
upon which a transfer of assets could be arranged 
aiul which would be consistent with the instruc- 
tions of the Preparatory Commission, invited the 
Supervisoiy Commission to propose a draft plan 
for joint discussion.^ Agreement was relatively 
speedily reached along certain lines consistent with 
tliese principles : 



" Dr. Reiff is an officer in the Division of International 
Organization Affairs, Office of Special Political Affairs, 
Department of State. He served as a Technical Expert 
with the Delegation of the United States to the United 
Nations Conference on International Organization at San 
Francisco. 

In the first part of the discussion on the transition from 
League of Nations to United Nations that appeared in the 
BmxETiN of Apr. 28, Dr. Reiff commented on the five United 
Nations committees that have dealt successively with the 
problem of the transfer of certain functions, activities, and 
assets of the League of Nations and on the development 
of a solution to devise a means of effecting a transition of 
limited scope between a general international organiza- 
tion about to be liquidated and a general international or- 
ganization in the process of being constituted. Other 



phases of the di-scussion dealt with the Executive Com- 
mittee of tile Preparatory Commission and its Committee 
0; with the en Hoc and selective formulas; with the adop- 
tion of the so-called en hloo formula ; with the revision by 
the Preparatory Commission ; with the assumption of 
functions, powers, and activities of the League ; with the 
new formula of transfer ; and with the League-sponsored 
loans. 

' PC/11, Dec. 17, 1945. 

' Report of the Preparatory Commission, ch. XI, sec. 3, 

' Journal no. 22, supp. no. 7-A/LN/2. 

"The documents recording the negotiations of this com- 
mittee are of a "restricted" character and are on file in 
the Department. The final report and Common Plan, 
A/IS, Jan. 2S, 1916, have, ho\\ever, been published. See 
appendix to this article. 



739 



740 



DEPARTMENT OF STATE BULLETIN 



1. That the nuiterial assets, fixed and movable 
(i.e. buildings, equipment, furnishings, supplies 
and stocks on hand, books, archives, etc.), be sep- 
arated from the liquid as.sets and the correspond- 
ing liabilities; 

2. That, on transfer of the material assets, some 
form of total credit covering them be placed on 
the books of the United Nations in favor of those 
members of the United Nations which were still 
members of the League of Nations and which had 
contributed to the creation of those assets, the total 
credit depending, of course, upon the value which 
could ultimately be placed upon those assets after 
their final disposition had been determined; 

.3. That the League itself bear the responsibility 
(a) of fixing the percentages of the total credit to 
be accorded to its own members as well as [h) of 
satisfying the claims to shares in the material as- 
sets of those members of the League which at the 
time of transfer should not be members of the 
United Nations; and 

4. That the above credit established on the books 
of the United Nations take a form consistent with 
the fiscal policies and needs of the new organiza- 
tion. 

With respect to the liquid assets and correspond- 
ing liabilities and related fiscal matters it was 
agreed : 

5. That the League itself should bear exclusively 
the responsibility for a proper liquidation or set- 
tlement of these intricate matters. They would 
include {a) the discharge of all League obligations 
as soon as possible, including the claims of the 
judges of the Permanent Court of International 
Justice for salary arrears ; {b) the settlement of the 
question of arrears in contributions of its member 
states; (c) the separation of the interests of the 
ILO in the assets of the League before transfer 
of the material assets to the United Nations; {d) 
the making of provision for the continued admin- 
istration of the Staif Pensions Fund for League 
employees; (e) the making of arrangements for 
the continued administration of the pensions due 
the judges of the Permanent Court of Interna- 
tional Justice; and (/) the making of arrange- 
ments for the crediting or distributing of the re- 

° Report of the Preparatory Commission, ch. V, sec. 3. 
' Report of the Committee on Transfer of League Assets, 
A/18, par. 11. 
'Report of the Preparatory Commission, fh. V, sec. 3. 



maining liquid assets to members of the League 
under some scheme to be determined by it. 

In view of the desire of the members of the ILO 
to continue that organization and of the United 
Nations to utilize •* for the new Court the premises 
at The Hague occupied by the old Permanent 
Court of International Justice, it would be neces- 
sary for any common plan for the transfer of 
League assets to make provision with respect to 
these matters so far as tliey were affected by the 
contemplated transfer. This provision was ef- 
fected in the following manner: 

With respect to the Court premises, it was 
readily agreed that the furniture, fittings, eqtiip- 
ment, library, archives, and other similar prop- 
erties used by the Permanent Court of Interna- 
tional Justice at The Hague should go over to 
the United Nations as part of the transaction 
relating to the transfer of material assets of the 
League. Alterations had, however, been made in 
the Peace Palace at The Hague to house the old 
Court. . Several instalments on two loans obtained 
from the Carnegie Endowment for the purpose 
A\ere still due. Since the LTnited Nations would 
have the advantage of the improved arrange- 
ments at the Palace, it was agreed to assume the 
obligation of the unpaid instalments.' 

Although it was well known that the burden of 
severing the interests of the ILO from the assets 
of the League would fall upon the League, the 
Preparatory Commission had enjoined the Com- 
mittee to "consult the duly authorized representa- 
tives of the International Labor Organization on 
questions connected with the transfer which afl'ect 
that Organization." ^ This was done through the 
medium of tJie chairman of the Committee on 
Transfer of League Assets, M. Moderow (Poland) . 
The Coimnittee could accordingly in its discus- 
sions witli the Supervisoi'y Commission dispose of 
certain of the "connected" questions. Thus it was 
understood that the ILO building at Geneva, in 
the final settlement of the transition problem, 
should be transferred to that organization. It 
was fiu'ther agreed that the ILO might "use the 
Assembly Hall [in Geneva], together with the 
necessary committee rooms, office accommodation 
and other facilities connected therewith at times 
and on financial terms to be agreed from time to 
time between the United Nations and the Inter- 
national Labour Organization ;" and that the ILO 



MAY 5, 1946 



741 



miglit "use tlie library under the same condi- 
tions as other oiScial users thereof." ° 

On details to implement a successful transfer of 
the material assets there was also ready concur- 
rence, for example, fixing a date for the legal trans- 
fer of the assets involved (i.e. on or about Aug. 1, 
1946, "the precise date to be determined by the 
administrative authorities of the two Organiza- 
tions") ; providing for the setting up of properly 
authorized committees or other agents of the 
United Nations and the League to make the de- 
tailed arrangements attendant upon transfer of 
the assets with the Swiss and Netherlands Govern- 
ments respectively and with the Carnegie Founda- 
tion at The Hague; and providing for mutual use 
of the plant and equipment involved by the admin- 
istrations of the two organizations before and 
after the date of legal transfer until the business 
in hand should have been consummated. 

Problem of Evaluation of the Material Assets 

But the most persistent of the problems facing 
the Committee and the Supervisory Conunission 
was the value to be placed upon the material assets 
contemplated for transfer. That problem lay in 
the background of all the deliberations of Com- 
mittee 9 of the Executive Committee and Commit- 
tee 7 of the Preparatory Commission. Upon its 
solution depended the transfer of those assets — in- 
deed, quite likely, the speedy and satisfactory liqui- 
dation of the League itself. 

Obviously, value depended upon the use to which 
the plant and equipment could be put, and use de- 
pended upon political decisions of an intricate and 
subtle character relating to the position of a Euro- 
pean center, particularly one located in Geneva, 
in the plans for the future of the United Nations. 
The United Nations Committee sought to make the 
determination of the value contingent upon deci- 
sions to be taken by the United Nations with re- 
spect to future use. Hence they offered a formula 
under which the material assets would be trans- 
ferred at a provisional value subject to an ad- 
justed valuation to be made by the United Nations 
not later than December 31, 1948. 

This formula, however, was unacceptable to the 
League Supervisory Commission. Aside from 
placing the power in the hands of the United Na- 
tions unilaterally to write down the values to. 
virtually any sum, it would meanwhile place the 



League in an exceedingly difficult position regard- 
ing League members not members of the United 
Nations. Their claims to moieties could be settled 
somehow by the League, but the basis of settlement 
might be widely different from that adopted in 
determining the credits to be accorded to members 
of the League who were members of the United 
Nations. The unpredictable factor of currency 
fluctuations also had to be considered. A contin- 
gent valuation would require at least the Finan- 
cial Department of the League to stay in being for 
another two or three years. 

Other complications in winding up the affairs of 
the League could be visualized. The risk involved 
for the United Nations, particularly for those 
members which were not also League members, 
was, however, forcefully presented in and by the 
Committee. Possibilities of sale or other dispo- 
sition of the buildings were explored. Reproduc- 
tion costs as well as appreciation and depreciation 
in relation to present book values under various 
conceivable uses of the property were discussed. 
At all times, however, the Committee bore in mind 
the insti'uction of the Preparatory Commission 
that it should find a value which should "in prin- 
ciple imply neither profit nor loss for the United 
Nations" and that the transfer should be consum- 
mated on such terms as were "considered just and 
convenient".^" 

In the end, after the Connnittee and the Super- 
visory Commission had in several separate and 
joint sessions discussed the problem further and 
aftei' representatives on the United Nations Com- 
mittee had consulted their resjaective delegations 
to the General Assembly, agreement was reached 
on the basis of a formula which the Supervisory 
Conunission had been invited by the Committee to 
submit. 

Formula for Transfer of Material Assets 

In brief the formula agreed upon, subject of 
course to approval of the General Assembly, as 
was all the work of the Committee, provided for 
the taking over by the United Nations of all the 
material assets of the League at the price they 
had cost the League. All gifts, many of which 
have a high artistic and monetary value, would 
therefore be transferred without any pecuniary 

"A/lS, par. 10. 

''Report of the Preparatory Commission, cli. V, sec. 3. 



742 

consideration. A schedule of fixed and movable 
assets, together with their valuations, to be ap- 
pended to the Common Plan, would, with re- 
spect to the inventory of the movable assets and 
their valuations, be subject to revision as of the 
date of legal transfer. Finally, with respect to 
the credits to be entered on the books of the 
United Nations in favor of the members of the 
United Nations which were also members of the 
League of Nations at the time of the transfer, it 
was agreed that the General Assembly of the 
United Nations should decide upon the purposes, 
i.e. to which financial account — building fund, ad- 
ministrative expenses, etc. — these credits should be 
applied, and on which dates they should be so 
applied, provided, however, that the credits should 
begin to be available not later than December 31, 
1948. 

The General Assembly ad hoc Committee on 
the League of Nations 

In addition to the six main committees of the 
General Assembly two ad hoc committees com- 
posed of representatives of all the members of the 
United Nations were set up, one of them for the 
purpose of considering "the possible transfer of 
certain functions, activities and assets of the 
League of Nations."" In one meeting, its sec- 
ond,'^ this committee discharged its task: 

" Journal no. 16, Jan. 26, 1046, p. S16. 

"Feb. 1, 1946, Journal no. 22: supp. no. 7-A/LN/2. 

" IhUl., p. 5. 

" A/28, Feb. 4, 1946, sec. 4. 

'^Journal no. 30, p. 526; text of rapporteur's rei»rt. 
Journal no. 34, pp. 706-9. lu pursuance of the resolution 
of the General Assembly thus adopted, the Economic and 
Social Council at its twelfth meeting, Feb. 16, 1946 (Journal 
of the Economic and Social Council, no. 11, p. 110) , adopted 
a resolution, E/19, Feb. 15, 1946, requesting "the Secretary- 
General to undertake the survey called for by the Gen- 
eral Assembly and to report at an early date to the Eco- 
nomic and Social Council" and directing hini "to take 
the steps necessary to the provisional assumption and con- 
tinuance of the work hitherto done by the League depart- 
ments named" in the resolution adopted by the General 
Assembly. (For text of E/19, see appendix to this article.) 
Furthermore, the Council in setting up its commissions and 
committees specifically authorized certain of them to take 
the action within their fields necessary under the General 
Assembly resolution A/28 and under E/19 cited above ; 
B/29, Feb. 22, 1946, Temporary Social Conunission ; E/31, 
r '1). 22, 1946, Temporary Transport and ("onununications 
Conunl.:'!ion ; and E/34, Feb. 27, 1946, Commission on Nar- 
cotic Drugs. 



DEPARTMENT OF STATE BULLETm 

1. It examined and, after making certain styl- 
istic changes, approved sections 1 and 2 of chapter 
XI of the Report of the Preparatoiy Commission, 
which dealt, respectively, with the assumption of 
functions and powers entrusted under separate 
treaties to the League and the assumption of non- 
IJolitical functions and activities of the League 
other than those mentioned in section 1. 

2. It examined, discussed, and approved without 
any changes the Report of the Committee on the 
Transfer of League Assets together with the Com- 
mon Plan agreed to by the League Supervisory 
Commission. 

In the course of the consideration by the ad hoc 
Committee, various members solicited and received 
ex^slanations by Mr. Moderow of parts of the two 
documents. The Delegate of the LTnited States, 
Frank Walker, for example, "asked whether in 
connection with the use by the ILO of tlie League 
Assembly Hall and committee rooms it was clear 
that the ILO had no vested or legal right in the 
buildings other than that of right of user during 
the time that the United Nations owned them." 
Mr. Moderow assured him that "this is tlie case. 
To emphasize this the words 'entitled to use' in the 
first draft had been changed to 'maj' use'. This 
point of view had been finally accepted by the 
ILO." '' 

3. Finally, the ad hoc Committee agreed to 
leave to the General Committee and the General 
Assembly the nomination of the small committee 
to negotiate with the Swiss Government and the 
Carnegie Foundation in relation to the assets lo- 
cated in Geneva and at The Hague respectively. 
In the absence of objection, however, the final re- 
port of the rapporteur of the ad. hoc Committee 
provided that this Negotiating Committee should 
"consist of one representative designated by the 
delegations, if they so desire, of each of the same 
eight Members as previously constituted the Com- 
mittee [on the Transfer of League Assets] created 
by the Preparatory Commission." " 

Approval by the General Assembly 

Without debate and with no objections the Gen- 
eral Assembly on February 12, 1946 adopted the 
report of its ad hoc Committee as presented by the 
rapporteur, H. T. Andrews of South Africa.^^ 
(Article continued on page 748) 



MAY 5, 1946 



743 



APPENDIX: TEXTS OF DOCUMENTS 

I. A/28, February 4, 1946 ' 

REPORT OF THE LEAGUE OF NATIONS COMMITTEE TO THE GENERAL ASSEMBLY 

Transfer of Certain Functions, Activities and Assets of the League of Nations = 

Rapporteur: Mr. H. T. Andrews (Union of South Africa) 



The General Assembly in its Eigbteentli Plenary Meet- 
ing held on 26 January 1946, referred to the League of 
Nations Committee the question of the possible transfer 
of certain functions, activities and assets of the League of 
Nations. 

After having considered these questions on the basis of 
Cliapter XI of the Report of the Preparatory Commission 
of the United Nations and of tlie Report of the Committee 
set up by the Preparatory Commission to discuss and 
establish with the Supervisory Commission of the League 
of Nations a Common Plan for the transfer of the assets 
of the League of Nations, (see Documents A/18; A/18/ 
Add/1; A/18/Add/2), the League of Nations Committee 
has approved the following resolutions, the adoption of 
which I have the honour to propose : 

I 

FCNCTIOKS AND POWERS BELONGING TO THE LEAGUE OF NA- 
TIONS Under International Agreements 

Under various treaties and international conventions, 
agreements and other instruments, the League of Nations 
and its organs exercise, or may be requested to exercise, 
numerous functions or powers for the continuance of 
which after the dissolution of the League, it is, or may be, 
desirable that the United Nations should provide. 

Certain Members of the United Nations, which ai'e par- 
ties to some of these instruments and are Members of 
the League of Nations, have informed the General Assem- 
bly that at the forthcoming session of the Assembly of the 
League they intend to move a resolution whereby the 
Members of the League would, so far as this is necessary, 
assent and give effect to the steps contemplated below. 

Therefore 

1. The General Assembly reserves the right to decide, 
after due examination, not to assume any particular func- 
tion or power, and to determine which organ of the 
United Nations or which specialized agency brought into 
relationship with the United Nations should exercise each 
particular function or power assumed. 

2. The General Assembly records that those Membere 
of the United Nations which are parties to the instru- 
ments referred to above assent by this Resolution to the 
steps contemplated below and express their resolve to use 
their good ofinces to secure the co-operation of the other 
parties to the instruments so far as this may be necessary. 

3. The General Assembly declares that the United Na- 
tions is willing, in principle and subject to the provisions 
of this Resolution and of the Charter of the United Na- 
tions, to assume the exercise of certain functions and 
powers previously entrusted to the League of Nations, 



and adopts the following decisions, set forth in A, B, and 
C below. 

A. Functions Pertaining to a Secretariat 

Under certain of the instruments referred to at the 
beginning of this Resolution, the League of Nations has, 
for the general convenience of the parties, undertaken to 
act as custodian of the original signed texts of the instru- 
ments, and to perform certain functions, pertaining to a 
secretariat, which do not affect the operation of the 
instruments and do not relate to the substantive rights 
and obligations of the parties. These functions include: 
the receipt of additional signatures and of Instruments of 
ratification, accession and denunciation ; receipt of notice 
of extension of the instruments to colonies or possessions 
of a party or to protectorates or territories for which it 
holds a mandate ; notification of such acts to other parties 
and other interested states ; the issue of certified copies ; 
and the circulation of information or documents which 
the parties have undertaken to communicate to each other. 
Any interruption in the performance of these functions 
would be contrary to the interests of all the parties. It 
would be convenient for the United Nations to have the 
custody of those instruments which are connected with 
activities of the League of Nations and which the United 
Nations is likely to continue. 

Therefore 

Tbe General Assembly declares that the United Nations 
is willing to accept the custody of the instruments and 
to charge the Secretariat of the United Nations with the 
task of performing for the parties the functions, pertain- 
ing to a secretariat, formerly entrusted to the League of 
Nations. 

B. Functions and Powers of a Technical and Non-Political 
Character 

Among the instruments referred to at the beginning of 
this Resolution are some of a technical and non-political 
character which contain provisions, relating to the sub- 
stance of the instruments, whose due execution is depend- 
ent on the exercise, by the League of Nations or particular 
organs of the League, of functions or powers conferred 
by the instruments. Certain of these instruments are in- 
timately connected with activities which the United Na- 
tions will or may continue. 

' Key ; A stands for General Assembly 

E stands for Economic and Social Council 
" Adopted Feb. 12, 1946. Journal no. 30, pp. 526-7 ; ibid., 
no. 34, pp. 706-9. 



744 



DEPARTMENT OF STATE BULLETIN 



It is necessary, however, to examine carefnlly which of 
the organs of the United Nations or wliich of the special- 
ized agencies brouglit into relationship with the United 
Nations should, in the future, exercise the functions and 
powers in question, in so far as they are maintained. 
Therefore 

The General Assembly is willing, subject to these reser- 
vations, to take the necessary measures to ensure the con- 
tinued exercise of these functions and powers, and refers 
the matter to the Economic and Social Council. 

0. Functions and Powers Under Treaties, Iiiteniatinnal 
Convent ioiis, Af/reements and Other Instriunents Having 
a Political Character 

The General Assembly will itself examine, or will submit 
to the apijropriate organ of the United Nations, any request 
from the parties that the United Nations should assume the 
exercise of functions or powers entrusted to the Lrcagiie of 
Nations by treaties, international conventions, agreements 
and other instruments having a political character. 

II 

NoN-Poi,iTicAL Functions and Activities of the League of 
Nations Other Than Those Mentioned in I 

1. The General Assembly requests the Economic and So- 
cial Council to survey the functions and activities of a 
non-political character which have hitherto been performed 
by the League of Nations in order to determine which of 
them should, with such modifications as are desirable, be 
assumed by organs of the United Nations or he entrusted 
to specialized agencies whicli have been brought into rela- 
tionship with the United Nations. Pending the adoption 
of the measures decided upon as the result of this exam- 
ination, the Council should, on or before the dissolution 
of the League, asunie and continue provisionally the work 
hitherto done by the following League departments: The 
Economic. Financial and Transit Department, particularly 
the research and statistical work; the Health Section, par- 
ticularly the epidemiological service ; the Opium Section 



and the secretariats of the Permanent Central Opium 
Board and Supervisory Body. 

2. The General Assembly requests the Secretary-General 
to make provision for taking over and maintaining in op- 
eration the Library and Archives and for completing the 
League of Nations Treaty Series. 

3. The General Assembly considers that it would also 
be desirable for the Secretary-General to engage for the 
work, referred to in paragraphs 1 and 2 a\)ove, on appro- 
priate terms, such members of the experienced personnel 
liy whom it is at present being performed as the Secretary- 
General may select. 

Ill 

Transfer of the As.sets of the League of Nations to 
the United Nations 

The General Assembly having considered the Report 
of the Committee set up by the Preparatory Commission 
to discuss and establish with the Supervisory Commis- 
sion of the League of Nations a Common Plan for the 
transfer of the assets of the League of Nations, approves 
of both the Report of the Committee set up by the Pre- 
paratory Commission and of the Common Plan submitted 
by it. 

IV 
Appointment of a Negotiating Committee 

The General Assembly approves of the setting up of 
a small negotiating committee to assist the Secretary- 
General in negotiating further agreements in connection 
with the transfer of certain as.sets in Geneva, and in 
connection with the premises in the Peace Palace in the 
Hague. This Committee shall consist of one representa- 
tive designated by the delegations, if they so desire, of 
each of the same eight IVIeinbers as previously constituted 
the Committee created by the Preparatory Commission: 
Chile, China, France. Poland, South Africa, the Soviet 
Union, the United Kingdom and the United States of 
America. 



IL A/18, January 28, 1946 

REPORT OF THE COMMITTEE SET UP BY THE PREPARATORY COMMISSION TO DISCUSS AND ESTAB- 
LISH WITH THE SUPERVISORY COMMISSION OF THE LEAGUE OF NATIONS A COMMON PLAN FOR 
THE TRANSFER OF THE ASSETS OF THE LEAGUE OF NATIONS 



1. The Committee was set up by the Preparatory Com- 
mission on 18 December 1!M5 and consists of one repre- 
sentative designated by the Delegations of each of the fol- 
lowing eight Members : Chile. China, France, Poland, 
South Africa, the Soviet Union, the United Kingdom and 
the United States of America. 

The Committee's terms of reference were to enter on 
behalf of the Preparatory ("ommission, into discussions 
with the League Supervisoiy Commission, for the purpose 
of establishing a common plan for the transfer of the 
as.sets of the League to the United Nations on such terms 
as are considered ju.st and convenient. The duly author- 
ized representative of the International Labour Organi- 



zation were to be consulted on questions connected with 
the transfer which affected that Organization. 

The Committee was instructed to have regard to the 
views expressed by the Executive Committee in paragraphs 
24, 25, 28-31 of the "Report on the Transfer of Certain 
Functions, Activities and Assets of the League of Nations" 
(Report by the Executive Committee, pages 112-114). 

The Committee was not called on to make recommenda- 
tions on the transfer of functions and activities of the 
League which is the subject of a separate recommendation 
of the Preparatoiw Commission. The Committee, liowever, 
calls attention to the desirabilit.v of acting on this matter 
promptly in order to facilitate the termination of the 
League as soon as possible. 



MAY 5, 1946 



745 



The I'rcparatory Commission rerdmiiu'iided tliat the 
phiii tlcvchiped l)y the Committee should be submitted 
for approval to the General Assembly, if possible duriug 
the First I'art of the First Session. 

2. The (,'ommitteo held conversations with the Super- 
visory Commission of the League of Nations and con- 
sulted duly authorized representatives of the Governing 
Body of the International Labour Organization. The 
Committee has received all possible assistance from these 
bodies who .share the Committee's desire that the necessary 
steps should be taken with tlie greatest possible .speed. 

3. The main concern of the United Nations Committee 
was to sui'vey the present .position of the assets of the 
League and to determine how the assets taken over should 
be evaluated and how any financial settlement should be 
effected. 

The Supervisory Commission was, however, concerned 
with a number of other tiuestiinis connected with the liqui- 
dation of tlie League, and indirectly affecting the transfer 
of assets. Therefore, the Common I'lan established con- 
tains several points not immediately of interest to the 
United Nations. 

4. The Connnittee recommends that the United Nations 
should, in order to facilitate the early dissolution of the 
Leagtie of Nations in definite and proper conditions, take 
over all material as.sets of the League of Nations. These 
material assets include: 

(a) the buildings in Geneva holding the offlces of the 
Secretariat, the Assembly Hall with the committee rooms 
and the library, together with the transferable rights of 
the League of Nations to use the land on which the building 
stands, the land within one huudretl metres of the buildings 
and the roads leading to the buildings; 

(&) the surrounding groiuuls belonging to the League of 
Nations including fields, woodlands and four villas ptir- 
chased to maintain the amenities of the immediate sur- 
roundings ; 

(c) the furniture fittings and equipment belonging to 
the League ; 

(d) the stocks of stationery, printing paper and publi- 
cations, office supplies and equipment of the League ; 

(e) the books belonging to the League; 

(f) tlie League archives. 

A more precise specification is set out in cohmni I of 
the Schedule attached to the Common Plan. 

The Committee is of the opinion that the cost of main- 
tenance of the fixed assets mentioned under (a) and (h) 
should not be excessive in relation to their value.' 

The question of the premises of the Court of Justice in 
the Hague is referred to in paragraph 11. 

5. In accordance with its terms of reference the Com- 
mittee was to find a value which should "in principle imply 
neither profit nor loss for the LTnited Nations". The Com- 
mittee and the Supervisory Commission agreed that in 
general a "just and convenient" evaluation of these assets 
today would be the price they had cost the League of 
Nation.?. 

For the movable assets the cost price is certainly on bal- 
ance favourable to the United Nations. It should be noted 
that the Inventory of movable assets is sub.iect to minor 

692417—46 2 



changes, since the figures given are based on a survey made 
in .Inly 1945. It is understood that all gifts, many of which 
have a high artistic and monetary value, will be trans- 
ferred without any pecuniary consideration. 

As regards the fixed assets a method of evaluation on 
any basis other than that recommended by the Committee 
was found to be extremely difiicult in view, amongst other 
things, of the uncertainty of the future use of the build- 
ings. Postponement of valuation until a later date was 
considered b.v the Conmiittee, but this plan was regarded 
by the Supervisory Commission as impracticable due to the 
uncertainties involved and to the need for a mure definite 
and clear cut arrangement if the League is to be terminated 
at an early date. Further this procedure might involve 
the United Nations in financial dealings with States non- 
Members. 

The Committee recommends that the valuation at cost 
price set out in column II of the Schedule attached to the 
Common Plan, with the reservations as to revision set out 
in the notes appended, be accepted. 

6. The Common Plan agreed with the Supervisory Com- 
mission proposes the following procedure for a financial 
settlement. 

The shares in the total credit established in settlement 
of the transfer should be distributed between the States 
entitled to participate, in accordance with percentages to 
he laid down by the League at its next Assembly. The 
fixing of these percentages is a matter to be decided ex- 
clusively by the League of Nations Assembly. The shares, 
thus established, of such of those States as are Members 
of the United Nations shall be credited to them respectively 
in the hooks of the United Nations. These credits should 
be tran-slated into dollar currency at the rate effective on 
the day of transfer of the material assets. The claims of 
States non-Members of the United Nations should be dealt 
with (itherwise by the League of Nations. 

As regards the credits booked to the Members of the 
United Nations, the General Assembly should decide on 
the purposes to which these credits shall be applied and 
on the dates on which they shall be so applied. It is, how- 
ever, agreed that these credits should, in any event, begin 
to be available not later than 31 December 1948. This 
provision preserves the budgetary freedom of the General 
Assembly, but it gives some guarantee to the recipient 
states that the settlement of their claims will not indefi- 
nitel.v be postponed. 

This procedure provides for a financial settlement 
within the United Nations and avoids all payments or 
transfers of credit to non-Members of the United Nations 
or to the League. The Committee, therefore, recom- 
mends that it be accepted. 

7. In view of the legal, financial and administrative 
arrangements to be made, 1 August 1946 appears to be 
the earliest date that can be fixed for the legal transfer 

'Editor's Note: This sentence originally read "The 
C^ommittee is of the opinion that the cost of maintenance 
of the fixed assets mentioned under (o) and (6) should be 
excessive in relation to their value", but was changed by 
the General Assembly in document A/18/Corr/l of Jan. 
31, 1946 to read as printed here. 



746 



DEPARTMENT OF STATE BULLETIN 



of the material assets. It is, however, prudent to provide 
for some degree of elasticity to prevent embarrassment 
for the administrations concerned. Therefore, the Com- 
mittee recommends that the transfer be effected on or 
about 1 August 1946, the precise date to be determined 
by the administrative authorities of the two organizations. 

8. It may not be convenient for the League of Nations 
to set free certain premises or equipment on the date 
selected for the legal transfer. On the other hand the 
United Nations may wish to use the premises or equip- 
ment of the League before that date. It is understood 
that in either case the Administration of the Organiza- 
tion legally entitled to the ownership will make all reason- 
able arrangements to accommodate the other Adminis- 
tration without any charge. 

9. The Supervisory Commission of the League of Na- 
tions has agreed to recommend to the League Assembly 
that the assets mentioned in paragraph 4 be transferred 
to the United Nations. The Supervisory Commission will 
also recommend that all other questions relating to the 
liquidation of the League of Nations shall be handled 
exclusively by the League of Nations, the United Nations 
having no voice in these matters nor responsibility for 
them. The League of Nations would, therefore, make 
arrangements : 

(a) to discharge all its obligations as soon as prac- 
ticable ; 

(6) to settle the question of contributions of Member 
States in arrears ; 

(o) to separate the interests of the International Labour 
Organization in the assets of the League before transfer 
to the United Nations; (It is understood that the Inter- 
national Labour Organization building at Geneva will be 
tran.sferred to that Organization.) 

(d) for the continued administration of the Staff Pen- 
sions Fund, and with regard to the pensions of the Judges 
of the Permanent Court of International Justice; 

(e) when it has discharged all its obligations and made 
the necessary dispositions concerning the Working Capital 
Fund and regarding outstanding contributions, for credit- 
ing or distributing the remaining liquid assets to Members 
of the League under a scheme to be determined by it. 

Though the question of contributions in arrears of Mem- 
bers of the League of Nations does not directly concei'n 
the United Nations, the Supervisory Commission stated 
that a satisfactory solution of the question would be of 
considerable assistance in expediting the final settlement 
and liquidation of the League. 

10. Tlie Supervisory Commission has done all that is 
possible to separate the interests of the International 
Labour Organization in the assets of the League. Tlie 
International Labour Organization has, however, some in- 
terests in the material assets that are to be transferred 
to the United Nations that could not be separated. These 
interests had to be discussed. 

The International Labour Organization is interested in 
the continued use of the Assembly Hall at Geneva for its 
conferences and in the continued use of the League library. 
The Committee recommends that the United Nations should 
agree that the International Labour Orgairization may 
use the Assembly Hall, together with the necessary com- 



mittee rooms, office accommodation and other facilities 
connected therewith at times and on financial terms to 
be agreed from time to time between the United Nations 
and the International Labour Organization ; and further 
that the International Labour Organization may use the 
library under the same conditions as other official users 
thereof. 

The Committee is of the opinion that the detailed ar- 
rangements necessary in this connection should be made 
by the competent authorities of the two organizations. 

The following suggestions, which have been tentatively 
put forward by the International Labour Organization, 
might afford an appropriate basis for these negotiations. 

A share of the cost of maintaining the Assembly Hall 
corresponding to its period of use in the course of the year, 
together with any additional charges incurred in respect 
of meetings held under the auspices of the International 
Labour Organization should be borne by that Organization. 

The International Labour Organization should notify 
the United Nations at least three months in advance of 
the date on which the International Labour Organization 
wishes to make use of the Hall and the initial and ter- 
minal dates for such use shall be agreed between the com- 
petent authorities of the International Labour Organiza- 
tion and of the United Nations. 

The United Nations and the International Labour Or- 
ganization should agree upon the most convenient period 
of the year at which the Assembly Hall shall normally 
be available for meetings of the International Labour 
Conference. 

11. In connection with the transfer of certain assets in 
Geneva agreements must be made with the Swiss author- 
ities. A small negotiating committee to assist the Secre- 
tary-General should be appointed to make these agree- 
ments. 

As to the premises for the use of the new Court in the 
Hague, arrangements must be made with the Carnegie 
Foundation. 

In this context it should be noted that the premises in 
the Peace Palace in the Hague were considerably altered 
to house the Permanent Court of International Justice. 
The United Nations will have the advantage of this ar- 
rangement for which several instalments on two loans 
obtained from the Carnegie Foundation are still due. 

The Committee recommends that the small committee 
mentioned above should be sent to the Hague to make the 
necessary arrangements. 

12. The League of Nations will, during the liquidation 
and the transfer of assets take all steps necessary to assist 
in the assumption and continuance, under the auspices 
of the Economic and Social Council of the United Nations, 
of those League activities which the United Nations de- 
cides to assume and continue. Any ex-official of the 
League of Nations subsequently engaged temporarily or 
otherwise by the United Nations should enter service under 
conditions of employment established by the United 
Nations. 

The League agrees to transfer the archives, particularly 
those dealing with current matters, as soon as desired. 
The two Secretaries-General should be empowered to make 
detailed arrangements. The archives should be located 
where they could best serve the work of the United Nations. 



MAY 5, 1946 



747 



II a. A/18/Add/l, January 28, 1946 

ANNEX TO THE REPORT OF THE UNITED NATIONS COMMITTEE ON LEAGUE OF NATIONS ASSETS 
Common Plan for the Transfer of League of Nations Assets Established by the United Nations 
Committee and the Supervisory Commission of the League of Nations 



1. The League of Nations agrees to transfer to the 
United Nations, and the United Nations agrees to receive 
on or about 1 August 19-16, tlie precise date to be deter- 
mined by tlie administrative authorities of the two Organi- 
zations, all material assets of the League of Nations shown 
in column I of the attached Schedule at the valuation 
shown in column II. 

The League of Nations agrees that the shares in the 
total credit thus established shall be distributed between 
States entitled to participate, in accordance with percent- 
ages to be laid down by tlie League at its next Assembly. 

The United Nations agrees : 

(a) that the shares, thus established, of such of these 
States as are Members of the United Nations shall be 
credited ^ to them respectively in the books of the United 
Nations : and 

(6) that the General Assensbly shall decide on the pur- 
poses to which these credits shall be applied and on the 
dates on which they shall be so applied ; and further that 
these credits shall in any event, begin to be available not 
later than 31 December 1&48. 

The United Nations further agrees : 

(a) that the International Labour Organization may 
use the Assembly Hall, together with the necessary com- 
mittee rooms, office accommodation and other facilities 
connected therewith at times and on financial terms to 
be agreed from time to time between the United Nations 
and the International Labour Organization ; 

(6) that the International Labour Organization may 
use the library under tlie same conditions as other official 
users thereof. 



2. The League of Nations shall take steps to discharge 
all its obligations as soon as practicable. 

3. The League of Nations shall take steps to settle 
the question of contributions of Member States in arrears. 

4. The League of Nations shall take steps to separate 
the interests of the International Labour Organization in 
the assets of the League, before transfer to the United 
Nations. It is understood that the International Labour 
Organization building at Geneva will be transferred to 
that Organization. 

5. Any ex-officials of the League of Nations subseciuently 
engaged by the United Nations shall enter service under 
conditions of employment established by the United Na- 
tions, and it will be for the League of Nations to take 
the necessary steps to make this possible. 

6. It is understood that the League of Nations shall 
make arrangements, independently of the United Nations, 
with regard to the continued administration of the Staff 
Pension Fund and with regard to the pensions of the 
Judges of the Permanent Court of International Justice. 

7. When the League has discharged all its obligations 
and made the necessary dispositions concerning the Work- 
ing Capital Fund and regarding outstanding contributions, 
the remaining liquid assets shall be credited or distributed 
to Members of the League under a scheme to be deter- 
mined by it. 

8. Both the United Nations and the League of Nations 
shall authorize competent authorities to make any neces- 
sary agreements with the Swiss Authorities on all matters 
connected with the transfer of assets of the League of 
Nations to the United Nations. 



II b. A/18/Add/2, January 28, 1946 

APPENDIX TO THE COMMON PLAN FOR THE TRANSFER OF LEAGUE OF NATIONS ASSETS ESTABLISHED 
BY THE UNITED NATIONS COMMITTEE AND THE SUPERVISORY COMMISSION OF THE LEAGUE OF 
NATIONS 



Schedule 



Secretariat building and 
Assembly Hall 

Library building 

Real estate belonging to 
the League of Na- 
tions having an area 
of 203,446 square 
meters and compris- 



II 



38, 553, 914. 03 - 



iug four villas 
other buildings- 



and 



II 



2, 889, 453. 45 



'These creilits shall be translated into dollar currency at 
the rate effective on the day of transfer of the material assets 
referred to in par. 1. 

2 Cost of building and equipment of the Secretariat and the 
Assembly Hall. The League has a transferable right to use the 
land on which the buildings stand, the land 100 meters around it 
and the two roads leading to the buildings. The League further 
has a non-transferable right to use the remainder of the plot of 
land in Ariana Park in which the buildings stand. No value is 
placed on these rights in the schedule. 

2 The cost of this building given by Mr. Rockefeller was 
5,564,206.22 Swiss francs. 



748 



DEPARTMENT OF STATE BULLETIN 



11 



Furniture, fittings, type- 
writers, etc. for the 
use of the Secreta- 
riat, including tlie 
Ijraueh otflces, and 
for the other build- 
ings in Geneva 

Total according to the an- 
nexed inventories 



.S. 320, '.t78. 70 



Total included under Sec- 
retariat building and 
Assembly Hall to be 
deducted 1,429,18.5.02 

Furniture, fittings, type- 
writers, etc. for the 
use of the Court of 
Justice in the Hague. 

Stocks of stationery, 
printing paper and 
publications, office 
supplies and equip- 
ment, in Geneva and 
branch offices 

Books, stocks of station- 
ery, printing paper 



1, 900, 793. ftS ' 



278, 61.5. 20 ' 



and publications, of- 
fice supplies and 
equipment for the 
Court in the Hague- 
Gifts 

Library : Books etc. in 
Geneva according to 
the annexed inven- 
tory 

Archives of the League 
of Nations and of 
the Permanent Court 
of International Jus- 
tice 



II 



291, 596. 00 ' 



3, 518, 089. 00 ' 



Total 47, 631, 518. 61 



109, 657. 25 = 



* Owing to possible changes before the date of transfer these 
figures are provisional and subject to revision. 

^ Owing to possible changes before the date of transfer these 
figures are provisional and subject to revision. Deduction might 
also be made for gifts included in this figure. 

» The nominal value of the gifts should be put at 1,234,640 
Swiss francs. 

' This figure includes gifts and will therefore he revised, a 
deduction being made for gifts. 

, Editor's Notk : The figures in this schedule are given in 
Swiss francs. 



III. E/19, February 15, 1946 

NON-POLITICAL FUNCTIONS AND ACTIVITliES OF THE LEAGUE OF NATIONS 

(Draft submitted by the S-ecretariat) 



1. In its resolution of 12 February 1946, on the Trans- 
fer of Certain Functions, Activities and Assets of the 
League of Nations, the General Assembly has requested 
that: 

(a) the Economic and Social Council survey the func- 
tions and activities of a non-political character which 
have hitherto been performed by the League of Nations 
in order to determine which of them should, with such 
modifications as are desirable, be assumed by organs of 
the United Nations or be entrusted to specialized agencies 
which have been brought into relationship with the United 
Nations ; and 

(6) the Council, pending the adoption of the measures 
decided upon as the result of this examination, assume and 
continue provisionally the work hitherto done by the fol- 



lowing League departments: The Economic, Financial and 
Transit Departjuent, particularly the research and sta- 
tistical work ; the Health Section, particularly the epi- 
demiological service; the Opium Section, and the Sec- 
retariats of the Permanent Central Opium Board and 
Supervisory Body. 
2. The Economic and Social Council accordingly, 
(«) Requests the Secretary-General to undertake the 
survey called for by the General Assembly and to report 
at an early date to the Economic and Social Council. 

Ih) Directs the Secretary-General acting in accordance 
with the Uesolution of the General Assembly, to take the 
steps necessary to the provisional assumption and continu- 
ance of the work hitherto done by the League departments 
named above. 



REIFF — Continued from par/e llt2. 

Work of the Negotiating Committee 

The small Negotiating Committee set up by this 
action of the General Assembly immediately held 
several informal meetings in London ^'^ and, after 
adjournment of the General Assembly, proceeded 
to The Hague, where it discussed with the repre- 
sentatives of the Dutch Government and the Car- 
negie Foundation details relating to the transfer 
of the use of the Court premises. 



Subsequently, the Negotiating Committee made 
the necessary arrangements with the Swiss authori- 
ties in relation to the transfer of the material as- 
sets located in Geneva.'^ 

'"Journal no. 30, p. 524 ; nkl., no. 31, p. 544 ; ihid.. no. 32, 
p. 584. 

"At this stage of the negotiations, Howard Elting, Jr., 
American Consul at Geneva, substituted for Benjamin 
Gerig as the representative of the United States on the 
Negotiating Committee. 



MAY 5, 1946 



749 



Non-Military Activities in Japan and Korea 



POLITICAL ACTIVITIES IN JAPAN 



Political Affairs 

1. The, interest of the people, the press and the 
political parties in politics and government was 
greater than at any time since the surrender of 
Japan. Evidence points to a clarification in the 
thinking of the Japanese and the development of 
a sense of political responsibility. 

Purge Directives 

2. The government's action in comj^liance with 
the purge directives of 4 January was unequivocal, 
firm and extensive. It ruled about 90 percent of 
the Diet members ineligible for re-election and 
ordered the dissolution of 120 political organiza- 
tions. The press estimated that about 1.50,000 per- 
sons would be affected. 

National Election 

3. The national election was postponed from 31 
Mai-ch to 10 April to give the Home Ministry more 
time to screen prospective candidates. The gov- 
ernment took measures to restiict campaign costs 
and to assure a free election. More tlian 3,000 per- 
sons requested certification as candidates for the 
Diet. 

Political Parties 
The Progressive Party 

4. The Progressive Party lost its president and 
other important leaders as a result of the political 
purge. The group is at present under the guid- 
ance of Takao Saito. The party approaches the 
coming election with confidence because it is well 
organized and has great strength in the rural 
districts. 

The Liberal Party 

5. The question whether Ichiro Hatoyama, pres- 
ident of the Liberal Party, will survive the purge 
has not been settled. The leadership of Hatoyama 
and his conservative associates has been strongly 



criticized by several provincial branches of the 
party. 

The Social Democratic Party 

6. The loss of many prominent right-wing lead- 
ers will not disqualify the Social Democrats in the 
coming election. They have won popular support 
among the workers and farmers. 

The Cormnunist Party 

7. The Communists have been the most active 
of all political parties. Nosaka continues to en- 
hance his position and to point the way for the 
group to follow. The party published its "su- 
preme platform" during the Fifth National Con- 
gress in Tokyo 24r-2(j February. The Communists 
had more press coverage than all other groups 
combined. 

The Coo-perative Party 

8. The purge directive virtually destroyed the 
leadership of the Cooperative Party. The group 
has only three members left in the Diet. Unless 
it can rehabilitate itself it cannot be considered a 
major party. 

Mitwr Parties 

9. Minor political parties continue to spring up 
throughout Japan. 

Women in Politics 

10. Every effoit is made to interest Japanese 
women in politics. Most major parties have women 
candidates for the Diet and many have drafted 
special platforms for women. The New Japan 
Women's Party and the New Japan Women's 
League are the most prominent women's organiza- 
tions. 

Excerpts from Summation no. 5 for the month of Feb- 
ruary 1946, prepared by General Headquarters, Supreme 
Conmiander for the Allied Powers, released to the press 
simultaneously by the War Department in Washington and 
by SC.^P in Tokyo on Apr. 2.5, 1940. Further portions of 
the report will appear in future issues of the Eulletin. 



750 



DEPARTMENT OF STATE BVLLETllS 



United Fronts 

11. The attempt of the Communists to create a 
united front remains unsuccessful. The Social 
Democrats do not wish to jeopardize their political 
future by premature cooperation with a party that 
may not secure many seats in the Diet. 

The efforts of Hatoyama, president of the Lib- 
eral Party, to launch an anti-communist front was 
generally considered an unwise move. 

C onMitutional Revision 

12. Most of the constitutional drafts prepared 
by the major parties differ only in minor respects. 
There is general unanimity on the Emperor, the 
Diet and constitutional amendment. 

Food and Labor 

13. Practically all political grouiss oppose the 
government's proposals to collect essential food 
stuffs by forcible means. The question of labor 
disputes is beginning to occupy a more important 
place in political thinking. 

National and Local Government 

The Cabinet 

14. The Cabinet, still under heavy criticism, 
took a strong stand on the application of the purge 
directives. Wataru Narahashi and Takeshige 
Ishiguro were named Ministers without Portfolio. 

Civil Service 

15. The government adopted a reform program 
for the civil service. It divides the bureaucracy 
into administrative, technical and educational 
branches, modifies the system of personal rank, 
simplifies the salary system and eliminates dis- 
criminations against women. 

The Emiperor 

16. The Emperor spoke to the Japanese people 
by radio for the second time on 22 February and 
made a number of inspection tours in and around 
the Tokyo area. 

Personnel and Structural Changes 

17. There were five nominations to the House of 
Peers and 28 resignations. Twenty-nine Japanese 
educators were appointed to confer with the 
American Education Mission. A Food Policy 
Investigation Commission was created on 27 Feb- 
ruary to advise the Cabinet on food policies. 

TJie Prefectures 

18. An increased interest in local politics and 
administration was manifested in the prefectures. 



The democratization of local government is pres- 
aged in the draft of a new law which will provide 
for the popular election of prefectural governors. 

Public Safety 

19. There was some civil uni'est occasioned by 
demonstrations and protests over the shortage of 
food. Police investigation in some cases disclosed 
food, clothing and supplies held in excess of stipu- 
lated amounts permitted the head of each family. 

20. Black-market activities were at a low ebb 
and operators began to seek regular employment. 
Military occupation courts were established to try 
cases involving possession of property belonging 
to the Occupation Forces or its members. 

21. A Japanese civilian body will be formed to 
improve the observance of traffic regulations and 
i-educe the number of traffic deaths. 

Police 

22. Lewis J. Valentine and Oscar Oleander, pub- 
lic safety experts, accepted invitations of SCAP 
to make studies of the Japanese police system. 
The Tokyo Metropolitan Police Board announced 
new regulations to improve conditions of police 
employment and to place them on a par with other 
civil servants within comparable categories. 

23. The Japanese police were issued instructions 
governing the official use of sidearms. They were 
cautioned to exercise care to avoid the use of vio- 
lence in dealing with any disorders occasioned by 
labor sti'ikes. 

Fire 

24. Two metropolitan areas were added to the 11 
fire areas nationally administered under police 
jurisdiction. Fire guilds manned by volunteers 
and maintained at local expense continue to be 
used in towns and villages. 

Prisons 

25. The Federation of Christian Churches in 
Japan at the request of the Japanese Government 
agreed to provide ministers to act as prison chap- 
lains in 22 prisons. 

Intelligence 

26. Appropriate action is being taken to assure 
compliance by the Japanese Government with the 
terms of all SCAP directives. 

27. Japanese respect for the Occupation Forces 
has increased and suspicion and mistrust are giv- 
ing way to cooperation. 



MAY 5, 1946 



751 



Foreign Nationals 

28. Members of the United Nations' and neu- 
tral diplomatic staffs were repatriated with their 
families. Action was begun to repatriate other 

. European nationals and to register Orientals in 
Japan for the purpose of determining the number 
who wish to remain. 

Oetisorship 

29. There was a decrease in the violation of cen- 
sorship codes. After an examination of pre-war 
publications is completed, the Japanese Govern- 
ment will be furnished a list of those whose sale 
will be prohibited. 

30. For the first time broadcasting of local pro- 
grams in Osaka, Fukuoka and Nagoya was ap- 
proved. 

Legal and Judicial Affaiks 

31. Japanese courts were prohibited from exer- 
cising criminal jurisdiction over nationals of the 
United Nations. The Japanese people were in- 
formed that certain specified acts against the Oc- 



cupation Forces or its members would be tried 
only by military occupation courts established for 
that purpose. 

Measures were taken to assure fair trials to 
Koreans or other nationals formerly under the 
domination of Japan. 

32. Japanese courts were deprived of civil juris- 
diction over nationals of the United Nations at- 
tached to or accompanying Occupation Forces. 
The trial of civil cases in Japanese courts against 
other nationals of the United Nations was made 
subject to supervision and review by SCAP Head- 
quarters. 

War Crimes 

33. Directives were issued for the arrest of 51 
additional persons suspected of war crimes. Some 
80 investigations were completed and seven war 
crime cases were tried during the month. 

34. Nine members of the International Military 
Tribunal for the Far East were appointed by the 
Supreme Commander. Five members of the Tri- 
bunal and five associate counsel arrived in Tokyo. 



Addresses of the Week 



Acting Secretary Acheson 



Assistant Secretary Benton 



The British Loan and Foreign Trade; 
summary printed in this issue 



International Understanding — A Mis- 
sion for All of Us. Issued as press 
release 276 



Delivered before the National Conven- 
tion of tlie Women's Action Com- 
mittee in Louisville, Ky., on April 
25 

Delivered before tlie Associated 
Church Press in Washington on 
April 24 



The United Nations 



Security Council:^ Discussion of Soviet-Iranian Matter 

REMARKS BY U.S. REPRESENTATIVE = 



Mr. President, I shall be brief for I do not wish 
to iDrolong the discussion. 

As the Council is fully aware, the United States 
Government has consistently thought that there 
was no reason for this question being brought be- 
fore the Council again at this time. The Council 
resolved on April 4 to let the matter rest until 
May 6.^ I fail to understand why the matter was 
not allowed to stand on the resolution that was 
passed at that time. The United States is unable 
to agree with the conclusions reached by the Sec- 
retai'y-General in his memorandum of April 16 

' In session since Mar. 25, 194(5 at Hunter College in 
New York, N. Y. 

" Edward R. Stettinius, Jr. Tliese remarks were made 
at the thirt.v-sixth meeting on Apr. 2.3, 1946. 

= Bulletin of Apr. 14, 1940, p. 621. 

' Bulletin of Apr. 28, 1946, p. 707. 

'The French resolution reads as follows: 

"The Sbcuritt Council, 

"Having again considered, at its meeting of the 15 and 
16 April, the ciuestioii which it had placed on its agenda 
on 26 March 1946 at the request of the Government of Iran, 
and which formed the subject of its resolution of 4 April : 

"takes note of the letter dated 14 April addressed to it 
by the representative of the Government of Iran in wliich 
the latter informs the Secnrit.v ("ouncil of the witlulrnwal 
of his complaint ; 

"notes that an agreement has been reached between the 
two Governments concerned ; 

"requests the Secretary-General to collect the necessary 
information in order to complete the Security Councils 
report to the Assembly, in accordance witli article 24 of 
the Charter, on the manner in which it dealt with the case 
placed on its agenda on 26 March last at the request, now 
withdrawn, of the Government of Iran." 

The French resolution was rejected by the Security 
Council at Its thirty-sixth meeting on Apr. 23, 1946. If 
received three afiirmative votes. 

" Bulletin of Apr. 21, 1946, p. 658. 



10 the President.* Although I do not wish to re- 
iterate the arguments made by the majority of the 
members of the Committee of Experts in that re- 
gard, I wish to emphasize the strong support which 
the United States gives to the views expressed by 
the majority of the Committee of Experts regard- 
ing the fimctions of the Security Council. We 
believe that the argument in the Secretary-Gen- 
eral's memorandum discloses a concept of the func- 
tions of the Security Council which is far too 
limited and which, if accepted, would have sei'ious 
consequences for the future of this body. In rati- 
fying the Charter, the United Nations placed upon 
the Security Council itself very great responsibil- 
ities for the maintenance of peace and security. 
The Charter also gives it powers commensurate 
with these responsibilities. Mr. President, I re- 
peat that I am unable to concur in the proposal 
that the Iranian question should at this time be 
dropped from the list of matters of which the 
Council is seized. 

I shoidd like to say one word in this connection 
about the resolution which the representative of 
France submitted a week ago today which, I under- 
stand, he desires to have voted upon.'' As I read 
that resolution which, like the resolution of April 
4, deals with procedural aspects of the question, 
it would, if passed, in effect reverse the resolution 
of April 4 and remove the Iranian question from 
the list of matters which the Council has before it 
and has not ftdly disposed of. We believe that 
the procedure already decided upon by the Council 
is preferable to that proposed by M. Bonnet, and 
M'e see no need nor any valid basis for reversing 
our decision of April 4. 

In any case, Mr. President, I hope that we can 
dis]Kise today of this particular question raised 
by Mr. Groniyko's letter of April 6." 



752 



MAY 5, 1946 



753 



Summary Statement by the Secretary- General 



Matters of AVluch the Security Coune'd Is Seized 
find the ■ Stage Reached in Their fonsi/ferations 

I'ur.siuiiit lo Kiile 11 of the Provisional Rules of 
Procedure of the Security Council, I submit the 
following Summary Statement of matters of 
which the Security Council is seized and of the 
stage reached in their consideration on 22 April 
1946. 

1. 77/1;' Iranian Question. 

'riif Iranian application dated 19 January 1940, 
was considered at the tliird and fifth meetings of 
the Security Council in London. At the fifth meet- 
ing, a resolution was nnanimously adopted re- 
questing the i^arties to inform the Council of any 
results achieved in negotiations between them. 
The SeciU'ity Council in tlie meanwhile retained 
the right at any time to request information on the 
progress of the negotiations. 

The Iranian question was further considered at 
the twenty-fifth, twenty-sixth, twenty-seventh, 
twenty-eighth, twenty-ninth and thirtieth meet- 
ings, and after various procedural decisions, it was 
resolved by nine votes (the representatives of the 
U.S.S.R. being absent and the representative of 
Australia abstaining) that ". . . the Council 
defer further proceedings on the Iranian applica- 
tion until 6 May, at which time the Soviet Govern- 
ment and the Iranian Government are requested to 
report to the Council whether the withdrawal of 
all Soviet troojDS from the whole of Iran has been 
completed and at which time the Council shall con- 
sider what, if any, further proceedings on the 
Iranian appeal are required ; 

"Provided, however, that if in tlie meantime 
either the Soviet Government or the Iranian Gov- 
ermnent or any member of the Security Council 
reports to the Secretary-General any developments 
which may retard or threaten to retard the prompt 
withdrawal of Soviet troojts from Iran, in accord- 
ance with the assurances of the Soviet Union to the 
Council, the Secretary-General shall immediately 
call to the attention of the Council such reports 
Avhich shall be considered as the first item on the 
agenda" (thirtieth meeting, 4 April 1946). 

6924 IT— 46 3 



By letter dated 6 April 194G and addressed to 
the I'resident of the Security Council, Ambassa- 
dor A. A. Gromyko proposed that the Iranian 
(luestion be removed from the agenda of the Se- 
curity Council. 

By letter dated 9 April 1946 and addressed to the 
Secretary-General, the Iranian Ambassador op- 
posed this proposal. 

I?y letter dated 15 April 1946 and addressed to 
the President of the Security Council, the Iranian 
Ambassador communicated the text of a telegram 
from his Government stating that it withdrew its 
complaint from the Security Council. 

At the thirty-third meeting on 16 April 1946 the 
Secretary-General submitted a memorandum to the 
President of the Security Council concerning the 
legal effect of the above letters from Ambassador 
A. A. Gromyko and the Iranian Ambassador. 
The Security Council decided to refer this memo- 
randum to the Committee on Experts. 

On 18 April 1946 Ur. H. Saba, Chairman of the 
Connnittee of Exj^erts, circulated his report setting 
out the conclusions of the Committee of E.xperts 
after consideration of the Secretai'y-General's 
memorandum. 

2. The Spanish Situation. 

By letters dated 8 April 1946 and 10 April 
1946 addressed to the Secretary-General, the 
Polish Ambassador, under Articles 34 and 35 of 
the Charter, requested the Security Council to 
jilace on its agenda the situation arising from the 
existence and activities of the Franco regime in 
Spain for consideration and for adoption of such 
measures as are provided for in the Charter. 

The Security Council considered this application 
at its thirty-fourth and thirty-fifth meetings and 
has before it resolutions submitted by the Polish 
and Australian representatives. 

3, Special Agreements vnder Article 4-3 of the 

Charter. 
At its second meeting the Security Council 
adopted the provisional agenda for its first meet- 
ing recommended by the Preparatory Commis- 
sion. It deferred consideration of Item 10 of 
that provisional agenda : 



754 



DEPARTMENT OF STATE BULLETIN 



"discussion of the best means of arriving at 
the conclusion of the special agi'eements referred 
to in Article 43 of the Charter." 

The question is being examined by the Military 
Staff Committee. 

4. Rules of Procedure of the Security Council. 

As instructed by the Security Council at its first 
and twenty-third meetings, the Committee of Ex- 
perts presented the revised provisional Rules of 
Procedure to the Security Council at the CounciFs 
thirty-first meeting, together with reconunenda- 
tions concerning communications ,f rom private in- 
dividuals and non-governmental bodies. 

After minor amendments the Security Council 
adopted these Rules of Procedure and reconmien- 
dations, the approved text being reproduced in 
Document S/35. 

It was agreed that the Committee of Experts 
should formulate additional rules of procedure 
for submission to the Security Council, and this 
work is proceeding. 

6. The Status and Rules of Procedure of the Mili- 
tary Staff Committee. 

At the twenty-third meeting of the Security 
Council it was agreed to postpone consideration of 
the Report of the Military Staff Committee con- 
cerning its Status and Rules of Procedure (Docu- 
ment S./IO). It was also agreed that pending the 
approval by the Security Council of the report of 
the Military Staff Committee, the Military Staff 
Committee was authorized to carry on its busi- 
ness along the lines suggested in its report. 

At the twenty-fifth meeting consideration of the 
report was .further postponed pending examina- 
tion by the Committee of Experts. The Commit- 
tee of Experts has not yet examined the report 
of the Military Staff Committee. 



6. The Application for the Admission of Albania 
as a Member of the United Nations. 

By letter addressed to the Acting Secretary- 
General, Mr. Edvard Kardelj, Vice-Premier of 
Yugoslavia, requested that the Security Council 
recommend to the General Assembly the admission 
of Albania as a Member of the United Nations. 
The letter enclosed a telegram from Colonel-Gen- 
eral Enver Hoxa, President of the Peoples' Repub- 
lic of Albania, addressed to the President and 
Vice-Presidents of the General Assembly, apply- 
ing for the admission of Albania as a Member of 
the United Nations. 

At the third meeting of the Security Council it 
was agreed without objection that this application 
be placed on the agenda (page 47, Security Council 
Journal No. 6). At the eighteenth meeting Mr. 
Stettinius made the following proposal : 

"I move that this item be kept on our agenda, but 
disposition be deferred pending further study 
until the Security Council convenes at the tem- 
porary headquarters." (Page 216, Security Coun- 
cil Journal No. 14) . 

Seven delegations voted in favor of this proposal 
and the President declared that it was adopted. 

Trygve Lie 

Secretary-General 



Confirmation 

On April 22, 194(1 the Senate confirmed the nomi- 
nation of Herschel V. Johnson to be Deputy Rep- 
resentative of the United States, with the rank of 
Envoy Extraordinary and Minister Plenipoten- 
tiary, in the Security Council of the United 
Nations. 



International Organizations and Conferences 



Calendar of Meetings 



Council of Forpigu Ministers : 
Meeting of Deputies 

Meeting of Foreign Ministers 

Far Eastern Commission 

Allied-Swiss Negotiations for German External Assets 

Anglo-American Committee of Inquiry 

Fiftli Pan American Railway Congress 

International Labor Organization: 

Industrial Committee on Iron and Steel 
Metal Trades Committee 

International Office of Public Health 

PICAO : ' 
European and Mediterranean Air Route Services Conference 
Annual Meeting of the Assembly 
Near Eastern Route Services Conference 

International Cotton Advisory Committee 

The United Nations : 
Security Council 
Military Staff Committee 

Negotiating Committee on League of Nations Assets 
Special Committee on Refugees and Displaced Persons 
International Court of Justice 
Commissions of the Economic and Social Council 
Economic and Social Council 
International Health Conference 
General Assembly : Second Part of First Session 



London 


January 18 — temporarily 




adjourned 


Paris 


April 25 


Washington 


February 26 


Washington 


March 18 


Lausanne 


April 1-20 


Montevideo 


April 5 


Cleveland 


April 23-29 


Toledo 


May 2 


Paris 


April 24 


Paris 


April 24 


Montreal 


May 21 


Cairo 


June 25 


Washington 


May 7 


New York 


March 25 


New York 


March 25 


Geneva 


April 6-19 


London 


April 8 


The Hague 


April 18 


New York 


April 29 


New York 


May 25 


New York 


June 19 


New York 


September 3 



The dates in the calendar are as of Apr. 28. 

' Provisional International Civil Aviation Conference. 



755 



756 



DEPARTMENT OF STATE BULLETIN 



Activities and Developments 

FOOD SUPPLIES FOR JAPAN 



Policy of Far Eastern Commission 

The Far Eastern Commission at its weekly meet- 
ing on April 25 approved the following policy with 
respect to food supplies for Japan : 

"In view of the world food shortage, which will 
be at its most critical stage over the next three 
months, and in view of the conditions prevailing in 
the territories of the Allied Powers, the Far East- 
ern Commission : 

"(a) Decides as a matter of policy that, except 
to the extent that the Supreme Connnander for 
the Allied Powers, with the advice of the Allied 
Council for Japan, determines that imports are 
essential immediately for the safety of the Occupa- 
tion Forces, no imports shall be permitted which 
will have the effect of giving to the Japanese a 
priority or preferential ti'eatment oxev the reqnii-e- 
ments of the peoples of any Allied Power or lib- 
erated area; and 

"(5) Requests the United States Government, 
in the light of the policy set out above, immediately 
to review the food import program for Japan in 
consultation with the United Nations Relief and 
Rehabilitation Administration, the Combined 
Food Board, and other allocating authorities." 

Discussion by Acting Secretary Acheson 
at Pi-ess Conference 

At his press and radio news conference on April 
2G, Acting Secretary Acheson urged drastic action 
by the United States to meet its goals in supplying 
food allocated to the rest of the world. In discu.ss- 
ing the food situation, Mr. Acheson pointed out 
that during April the United States was committed 
to exporting 1,000,000 tons of wheat or its equiva- 
lent, but that by the end of April it will actually 
have sent only 550,000 tons, or 55 percent. 

The Acting Secretary said that the occupied 
countries of Germany and Japan will receive only 
about one third of their allocated amount during 
the month, while the rest of the needy nations will 
receive two thirds. He explained that allocations 



to areas other than Germany and Japan are based 
upon a higher scale of computation of food needs, 
the daily individual Japanese need being set at 970 
calories, that for Germans at 1,250. 

For April, he said, 200,000 tons of wheat were 
asked for Japan, 150,000 tons were allocated, and 
48,000 tons will actually be sent. Figures for Ger- 
many were 50,000 tons allocated and 10,000 tons 
to be sent. 

Asked whetlier he felt there was severe danger 
of food riots in Germany and Japan, he said he 
thought there was. 

Asked what sort of drastic action should be 
taken, Mr. Acheson said that was a matter for the 
Department of Agriculture. 

In reply to questions about the Far Eastern 
Commission policy opposing any shipments of 
food to Japan which might give to the Japanese 
priority over peoples of any Allied or liberated 
area, the Acting Secretary stressed that such has 
always been the position of the United States. He 
said we have always acted on the principle that 
food being imported into Jaj^an is essential im- 
mediately for the safety of the occupation forces, 
and that no imports are permitted which would 
give the Japanese preferential treatment over re- 
quirements of Allied or liberated countries. 

Remiiided that the Commission had recom- 
mended that the United States review, in the light 
of the Commission's declared policy, food-import 
plans for Japan, Mr. Acheson said the Govern- 
ment is reviewing, and will continue to review, all 
food programs for Japanese, Germans, and all 
others. Food plans are being reviewed two and 
three times weekly, he said. 

Statement by Assistant Secretary Hilldring 

[Rele.Tsed to the press April 25] 

The State Department is pleased to learn by the 
action of the Far Eastern Commission that it ap- 
proves the policy under which the United States 
Ciovernment has heretofore been requesting alloca- 
tions of food for the Japanese. Unfortmiately 



MAY 5, 1946 



757 



because of the world shortage of food it has not 
been possible even under these very rijjid standards 
to meet the minimum requirements, and actual 
shipments have fallen far below the approved allo- 
cation under these vei-y minimum requirements. 

The matter of food allocations is. of course, sub- 
ject to continuing revision in the light of develop- 
ing conditions. 

UNRRA OPERATIONS: SIXTH QUARTERLY 
REPORT ' 

President's Letter of Transmittal to Congress 

To tht' (' (Dig reus of the United States of America: 

I am transmitting herewith the sixth report to 
Congress on UNRRA operations for the quarter 
ending December 31, 1945. 

During this quarter, while UNRRA"s shipments 
reached unprecedented figures, recipient countries 
experienced unprecedented needs. Crop failures 
resulted in continuance of near famine conditions. 
The hardships of winter were innninent. 

At the year's end. moreover, critical shortages 
(notably of wheat, fats, meat for Europe, and of 
rice for China) threatened execution of even the 
limited relief program that had been planned. 
For millions survival was, and still is, the issue, 
antl for UNRRA the challenge to be met. World 
recovery still remains a formidable task. 

Oidy concerted action by the United Nations 
(and, primarily, of the producing countries) can, 
even at this date, avert prolongation of emergency 
conditions throughout the world. Now, more than 
ever, intensified etforts to match need with sup- 
ply, are required of us. We must not fail. For 
our continued paiticipation in UNRRA marks the 
fulfillment of a pledge and the discharge of a 
debt to those who, beyond the connnon sacrifice 
of life and material resources, enduied the devas- 
tation and brutalities that we were spared. Con- 
science alone demands that we meet the full meas- 
ure of our obligation. 

But prudence aiid self-interest no le.ss dictate 
our policy. Neither peace nor prosperity can be 
assured to us while famine, disease, and destitu- 
tion deprive others of the means to live, let alone to 
prosper. Relief and rehabilitation are paramount 
necessities for that world recovery which is a pri- 
mary objective of our national policy. They pro- 
vide the best insurance against social chaos and 
moral disintegration and the surest guarantee for 

692417 — 16 ( 



growth of democratic modes of thought and action. 
Tlie emergency, whicii UNRRA was designed to 
meet, continues. Months immediately ahead are 
critical. 

While ours is the largest contribution to 
UNRRA's funds, it is matched by like, propor- 
tionate conti'ibutions of 30 other nations. This 
gives significance to UNRRA altogether beyond 
the relief that it provides. In UNRRA the United 
Nations have created the first international oper- 
ating agency through wliich to test and to perfect 
our powers of cooperation. Such powers are not 
inborn. They are cultivated by constant exercise 
and the progressive enlargement of mutual experi- 
ence. In UNRRA a precedent has been created 
that may prove a huuhnark in our progress toward 
solidarity and conunon action by the nations of 
the world. 

Harry S. TRrji.vx. 
The White House 

March 2:2, mO 

INAUGURAL SITTING OF THE 
INTERNATIONAL COURT OF JUSTICE 

The International Court of Justice held its in- 
augural sitting on the afternoon of April 18 in the 
Peace Palace at The Hague. Princess Juliana and 
Prince Bernhard of the Netherlands attended the 
meeting as well as members of the Diplomatic 
Corps, high goverunient officials, and officials of 
the United Nations. 

Solemn declarations were made by 14 judges of 
the Court in conformity with Article 20 of the 
Statute of the Court which is attached to and made 
a part of the Charter of the United Nations. 
Alejandro Alvarez of Chile being the only mem- 
ber absent. Messages were read from Secretary- 
General Trygve Lie and the retiring president of 
the League of Nations, Carl Joachim Hambro. 
Addresses were delivered by Paul-Henri Spaak. 
l^resident of the General Assembly; Ivan Kerno, 
United Nations Assistant Secretary-General ; Jan 
Herman van Royen. Netherlands Foreign Minis- 
ter: The Hague Burgouuister de Monchy; and 
Jose Gustavo Guerrero, president of the Court. 

Discussions in progress deal primarily with the 
rules of the Court. 

' The text of the Report is obtainable from the Super- 
intendent of Documents. U.S. Governmeut Printing Office, 
Washington 2.5, D.C. 



The Record of the Week 



U. S. Policy in Maintaining and Developing International Law 



April 20, 194s. 
My Dear Me. Cotideet : ' 

I have received your letter of April 1, 1946 in 
which you refer to our previous con-espondence 
concerning the Annual Meeting of the American 
Society of International Law and request that, in 
view of my inahility to be present, I send you a 
written statement of my views in regard to "the 
desirability of our maintaining and developing in- 
ternational law at the present time, and the policy 
of the United States in that regard". I am glad 
to have an opportunity of doing so. 

The two devastating World Wars within our 
lifetime have shown the necessity of doing every- 
thing possible to prevent a third. In my opinion 
the only way to preserve our civilization is for 
peace-loving nations to give unstinted support to 
measures for insuring the observance of interna- 
tional law, and to do everything possible to see 
that it develops in such a way as to meet the needs 
of a rapidly changing world. Most of the inven- 
tions of recent years have enormous potentialities 
for good to the peoples of our own and other lands 
if they are directed along the right channels. On 
the other hand, inventions which are designed for, 
or may be turned to, purposes of destruction have 
been multiplied and made more and more deadly. 
The question then is : Which are to triumph, meas- 
ures of peace or the machinery of destruction? 

It is the determination of our own Government 
and the Governments of other countries with whicli 
we are joined in the Organization of the United 
Nations that measures for the maintenance of peace 
under international law shall prevail. 

The development of international law has been 
a long and sometimes painful process, interrupted, 
as it has been over and over again, by bloody and 
destructive wars, the most devastating of which 

' Frederic R. Coudert is Pre-sident of the American So- 
ciety of International Law. 



has just ended. But this is not a reason why those 
who have been hoping and working for the main- 
tenance of peace should give up. On the contrary, 
it should strengthen their determination to have 
IDeace on earth firmly established. 

The observance and enforcement of the rules of 
international law have always been a matter of 
deep concern to the Department of Stat«. It is an 
interesting fact that John Marshall, before he be- 
gan his long and distinguished service as Chief 
Justice of the United States, served for a time as 
Secretary of State. As Chief Justice he rendered 
the opinion of the court in a nun^ber of cases which 
have ever since been recognized as landmarks in 
the develo})ment of international law. I refer 
especially to his opinions in Murray v. The 
/Schooner Charming Betsy, 2 Cranch 64, and The 
Schooner Exchange v. McFaddon, 7 Cranch 116. 
In the former he expressed the opinion that "An 
Act of Congress ought never to be construed to 
violate the law of nations if any other possible 
construction remains." In the latter he laid stress 
upon the equality and sovereignty of states and 
the respect due from one state to another, and the 
"common interest impelling them to mutual inter- 
course". 

If the common interest of states pronounced by 
the great Chief Justice was of such importance in 
the year 1812, surely it is a matter of the greatest 
concern in our own time, when contacts between 
states, even those most widely separated, have mul- 
tiplied and become so close. Those who, despite 
the teaching of history, still cling to the idea of 
national self-sufficiency and isolation, point to the 
failure of the League of Nations to prevent the 
Second World War. 

It is true the League was not a perfect organiza- 
tion, but its weakness was due very largely to the 
failure of our own coimtry to follow President 
Wilson's leadership and to join and give it our full 



758 



MAY 5, J 946 



759 



support. Nothing is to he gained, however, by 
arguing that question or lamenting past failure. 
It is our duty to turn our eyes to the future and 
leave nothing undone toward supporting the new 
Organization of the United Nations. 

While international law governs relations be- 
tween states, its prevalence and the success of the 
United Nations in keeping the peace will depend 
ultimately upon the support which the Organiza- 
tion will leceive from the people of the various 
members of the family of nations. If the people 
of our own country, which is honored by having 
the headquarters of the Organization in its terri- 
tory, are to be made to realize that it forms an im- 
portant part of their lives and is the only means of 
preventing the sacrifice of our young men in an- 
other World War, there will be needed the active 
support of our churclies and schools and organiza- 
tions devoted to the advancement of international 
law and peace on earth. 

Not the least of these organizations is the Ameri- 



can Society of International Law, which you rep- 
resent. This Society has performed useful serv- 
ices in the past in furnishing instruction and lead- 
ersliip in the field of international law, and I am 
confident that it will be even more useful in the 
future, by aiding in the developing and shaping of 
international law to meet changing conditions in 
the world, and in giving support to the Organiza- 
tion of the United Nations. 

In my judgment one of the most impressive ways 
in which the United States could indicate its sup- 
port of the United Nations woidd be a declaration 
by the United States of acceptance of the jurisdic- 
tion of the International Court of Justice in the 
types of legal disputes enumerated in Article 36 of 
the Statute of the Court. 

Regretting that I shall not be able to attend the 
meeting of your Society, and wishing it the best 
success in its important delibei'ations, I am 
Sincerely yours, 

Jaaies F. Byrnes 



The British Loan and Foreign Trade 



BY ACTING SECRETARY ACHESON 



WE J I AVE A CHANCE tlirough the British- Amer- 
ican financial agreement — one last, clear 
chance — to I'estore world trade, to put it on a basis 
which will permit a person who sells goods in Eng- 
land to get some money which he can then use in 
Brazil or tlie United States, France or any other 
country. If Congress approves the agreement, we 
can move toward a condition of multilateral trade, 
in which every sale gives you a chance to buy in any 
market anywhere in the world, a situation which 
will increase production everywhere because 
everybody will have a chance to compete freely in 
every market. 

The 3% billion-dollar credit, added to the Cana- 
dian loan of a billion dollars and possibly to other 
loans that are in the ofRng, will take care of the 
deficit in the British balance of payments for the 
next few years and make it possible for them to 
join with us in our efforts to remove restrictions 
on international trade. 
Without the credit the British would be forced 



to adojjt the only alternative open to them — a des- 
perate one which offers no real hope to them or 
anyone else. It is the alternative of trying to pull 
the Empire closer and closer together, of saying, 
"We will make a contract to sell to Australia and 
they will buy from England. Or, Australia will 
sell to South Africa and buy from England." Deals 
within the Empire : that is the alternative. It is 
ail alternative which would mean a lowered stand- 
ard of living throughout the world; it would mean 
lowered markets for the United States. For the 
prosperity of this country can no more continue in 
the face of a descending and impoverished world 
than it could continue in the 30's. These are the 
alternatives, and, faced with this situation, some 
of the criticisms I hear seem to me to be uninfoiraed 
and almost frivolous. 

To understand why the Anglo-American finan- 
cial agreement is the key to the world trade situa- 

Summary of an address delivered before the National 
Convention of the Women's Action Committee, Louisville, 
Ky.. on Apr. 2.5, and released to the press on the same date. 



760 



DEPARTMENT OF STATE BULLETIN 



tion, we ha vi' to consider the position of the United 
Kingdom in relation to world trade, world pro- 
duction, world exchange of goods, and world com- 
merce. Let us think of the position of the Uniteil 
Kingdom, not merely because of the tremendous 
importance of what it buys and sells but also be- 
cause of t lie ti'emendous importance of its currency, 
which, together with the dollar, provided the trad- 
ing mechanism for one half of the total pre-war 
world trade. 

Britain and the United States provide the cur- 
I'eiicy which, after this war and the elimination of 
Germany and Japan frimi prominence in interna- 
tional commerce, will be the currency with which 
two thirds or three quarters of the trade of the 
world is conducted. 

Let us look a little more closely at the position 
of England. Befoi-e the war one fifth of the en- 
tire tratle of the world moved in and out of the 
ports of Great Britain. Great Britain and the 
British Empire, the United States and Canada be- 
tween them conducted one half of all world trade. 
British trade. Canadian trade, American trade af- 
fected every single corner of the earth, affected 
France and all of Europe, affected Indonesia. 
China, Japan. Every part of the world was acti- 
vated by British and American trade. 

Now, what is the position of Great Britain to- 
da_y? During the war many things happened to 
that island. One of the things was that through 
force of necessity, through the virility of its own 
administration and its own character, that island 
converted almost its entire economy to the produc- 
tion of war commodities. Life throughout Britain 
was completely disrupted to produce materials for 
tiie wai- and to cany on the war. I am not saying 
this because this loan is a reward for virtue; I 
am saying it to indicate the condition of that island 
at the end of the war. For instance. British ex- 
ports declined 7t) percent, and at the end of this 
year the British will have accumulated 14 billion 
dollars in sterling debts to other coimtries. I 
don't mention that merely because it is a tough 
thing for Britain to accmnulate debt; we have ac 
cunudated debt ourselves. We borrowed billions 
from our own people. But the important fact 
about the British is that they accumulated debt 
to other people. 

In terms of world trade this means, first, that for 
decades and decades the British will have to ex- 
1 )ort goods for which they get no pay. Those goods 



will have to be exportetl to pay off the sterling debt. 
That is inevitable. That must happen. That is 
the burden the war brought upon Britain. It is 
our hope and the hope of the British that some of 
their creditors will agree to scale down a part of 
that debt as part of their war contribution. But 
there will certainly remain a very substantial 
amount which Britain will have to work off 
through exports. And that means that, unless 
drastic steps are taken to secure an interchange- 
ability of currency, the British must work for 
their individual creditors, and their individual 
creditors if they are to realize upon their debt must 
accept British goods and services only. That prob- 
lem, if not dealt with in some way, would bring- 
about a channeling of economic activity which 
could only result in the division of the world into 
closed economic blocs. 

In the Anglo-American financial agreements the 
British agree not only to repay the loan with 
interest but to take immediate steps to remove 
restrictions on trade and support our trade pro- 
posals. These proposals were put forward with 
a view toward freeing world trade of discrimina- 
tory and lianipering restrictions of all kinds. 
The proposals relate to such matters as the reduc- 
tion of imperial preferences comparable to the 
reductions in our tariff; the lifting of quantitative 
quotas and embargoes of a discriminatory nature; 
the limiting of subsidies on exports to exceptional 
and well-defined cases; the elimination of restric- 
tions on the commerce of the world by cartels and 
combines through international action; the han- 
dling of the difficult special problems of surplus 
commodities; the creation of an international 
trade organization under the Economic and Social 
Council of the LTnited Nations; and the efforts to 
provide full and regular employment in each coun- 
try by domestic action which will avoid harmful 
effects on the employment situation in neighbor- 
ing countries. 

In the agreement we ai'i'ived at an understand- 
ing with a nation, whose position in world com- 
merce is unique, to move forward towards the 
I'emoval of controls and restrictions which hamper 
and reduce international trade so that both of us 
and other nations may prosper in an expanding 
world economy. It is inconceivable to me that 
the American people or the Congress can fail to 
recognize how our own vital interests are served 
bv this agreement. 



MAY 5, 1946 



761 



Interdependence of Political and Economic Freedom in Poland 



[Released to the press April 24] 

On April 24, 1946 notes were exchanged be- 
tween the Polish Ambassador and the Acting Sec- 
letary of State regarding the successful conclu- 
sion of negotiations for the extension by the 
Export-Import Bank of the limited credit of 
$40,()0(),0()0 to Poland. This credit is for the spe- 
cific jjurpose of enabling that country to purchase 
locomotives and coal cars in the United States 
which will facilitate the transportation of coal 
from Poland to the countries of western Europe 
and the Balkans. It is therefore calculated to 
help the people of Europe at the same time that 
it helps the people of Poland and it has been 
authorized with that purpose in mind. 

It has been and will continue to be the policy 
of the United States Government to assist the 
Polish people in their valiant efforts to overcome 
the destruction and devastation of the war. 
This Government has been pleased to assist in 
the UNRRA program for Poland and has also 
made a credit available for the purchase of sur- 
plus projDerty suitable for reconstruction as well 
as the credit now authorized for the purcliase of 
lailway equipment. 

In the view of this Government, however, eco- 
nomic freedom and political freedom are interde- 
pendent, and for that reason, this Government 
has made it clear on numerous occasions that the 
election commitments undertaken at Yalta and 
Potsdam must be fulfilled by Poland in their en- 
tirety. It remains true today, as it was when 
that pledge was first given, that for the Polish 
people to achieve their goals of freedom and democ- 
racy, they must be given the opportunity freely 
to elect a government which represents the will 
of the Polish people. 

It was therefore the view of this Government 
that it would not be justified in authorizing such 
credit, unless in so doing the American people 
could receive reassurance that free and unfettered 
elections will be held in accordance with the Yalta 
and Potsdam pledge, and that commercial rela- 
tions between the tM'o countries can develop in 
accordance with the nondiscriminatory principles 
of our economic foreign policy. Accordingly it 
has sought and obtained such assurances from the 



Provisional Government of Poland, as indicated 
in the notes that are made public concurrently 
herewith. This Government has also made it 
clear to the Provisional Government of Poland 
that the question of any further credit will be 
considered in the light of the fulfillment of the 
assurances given. 

$40,000,000 LOAN TO POLISH PROVISIONAL 
GOVERNMENT 

Exchange of Notes Between the Acting Becretartj 
of Htate and the Amhassador of Poland^ 

April 2Jt, 19JiC,. 
Excellency : 

. The Government of the United States, desirous 
of aiding the people of Poland in their efforts to 
repair war damages and to reconstruct the Polish 
economy, expresses its satisfaction at the successful 
conclusion of the negotiations concerning the open- 
ing of credits of $40,000,000 to the Provisional 
Government of Poland by the Export-Import 
Bank of Washington, D.C., and the satisfactory 
conclusion of arrangements for extending credits 
up to $50,000,000 for the purchase by Poland of 
United States surplus projierty held abroad. 

The Government of the United States hopes that 
these agreements will prove to be the first step 
toward durable and mutually beneficial economic 
and financial cooperation between the Govern- 
ments of the two countries. It believes, however, 
that such cooperation can develop fully only if 

(1) a general framework is established within 
which economic relations between Poland and the 
United States can be effectively organized on the 
l)asis of princijiles set forth in Article VII of the 
Mutual Aid Agi-eement of July 1, 1942, so as to 
result in the elimination of all forms of discrimina- 
tory treatment in international commerce, and the 
reduction of tariffs and other trade barriers; 

(2) the Provisional Government of Poland is in 
accord with the general tencjr of the "Projiosals for 
Expansion of World Trade and Employment" 
recently transmitted to the Provisional Govern- 
ment of Poland by the Government of the United 

' Released to the press Apr. 24. 



762 



DEPARTMENT OF STATE BULLETIN 



States, and undertakes together with the Govern- 
ment of the United States to abstain, pending the 
participation of the two Governments in the gen- 
eral international conference on trade and employ- 
ment contemplated by the "Proposals", from adopt- 
ing new measures which would prejudice the objec- 
tives of the conference ; 

(3) the Provisional Government of Poland will 
continue to accord to nationals and corporations of 
the United States the treatment provided for in 
the Treaty of Friendship, Commerce and Consular 
Eights between the United States and Poland,' 
signed June 15, 1931 ; 

(4) the Government of the United States and 
the Provisional Government of Poland will make 
both adequate and effective compensation to na- 
tionals and corporations of the other country whose 
properties are requisitioned or nationalized ; 

(5) the Provisional Government of Poland and 
the Government of the United States agree to 
afford each other adequate opportunity for con- 
sultation regarding the matters mentioned above, 
and the Provisional Government of Poland, recog- 
nizing that it is the normal practice of the Gov- 
ernment of the United States to make public com- 
prehensive information concerning its interna- 
tional economic relations, agrees to make available 
to the Government of the United States full infor- 
mation, similar in scope and character to that nor- 
mally made public by the United States, concern- 
ing the international economic relations of Poland. 

The Government of tlie United States under- 
takes herewith to honor and to discharge faithfully 
the obligations which relate to the United States 
specified in points (1) through (5) above, and 
would be pleased to receive a parallel undertaking 
from the Provisional Government of Poland with 
respect to those obligations specified in points ( 1 ) 
tlirough (5) above which relate to Poland. 

Accept [etc.] 

Dean Acheson 
Acting Secretmy of State 

April 2Jf, 19 Jif). 
Sir: 

The receipt is acknowledged, on behalf of the 
Provisional Government of Poland of your note 
of April 24, 1946 reading as follows : 

[Hfii-e follows the text of the U. S. note printed above.] 

' Treaty Series 862. 

" Released to the press Apr. 24. 



Under instructions from my Government, I have 
the honor to communicate to you the following : 

The Provisional Government of Poland shares 
the views of the United States as expressed by the 
Secretary of State and undertakes herewith to 
honor and to discharge faithfully the obligations 
which relate to Poland specified in points (1) 
through (5) of the note under reference. 

Accept [etc.] 

OSKAR Lange 

PROPOSED POLISH ELECTIONS 

Note From the Polish Ambassador to the Secre- 
tary of State ^ 

April 2i, 19Ifi. 

The Ambassador of Poland presents his compli- 
ments to His Excellency the Secretary of State and 
has the honor to comnumicate to him the following 
statement. 

Certain information recently published in the 
press concerning the purpose of the Referendum 
proposed by the six Political Parties which sup- 
port the Provisional Government of National 
Unity seems to imply that the Referendum is to be 
a substitute for the general elections. This is not 
tlie case. The Referendum is a measure prepara- 
tory to the election. The principal question to be 
submitted for decision must be clarified by popu- 
lar vote before elections are held. This question 
is whether the future parliament is to be comjDosed 
of one or two houses. This consultation is to take 
place this summer, by which time it is hoped that 
the major part of displaced citizens of Poland will 
be returned home. Thus, the Government will 
leave to the Electorate decisions on this basic con- 
stitutional issue. 

The general elections will take place this year in 
accordance with the stipulations of Article IX : A 
of the Agreement of Potsdam of August 2, 1945, 
which notes that the Polish Provisional Govern- 
ment "has agreed to the holding of free and un- 
fettered elections as soon as possible and on the 
basis of universal suffrage and secret ballot in 
which all democratic and anti-Nazi parties shall 
have the right to take part and to put forward can- 
didates, and that representatives of the Allied 
Press shall enjoy full freedom to report to the 
World upon developments in Poland before and 
during the elections." 

OsKAR Lange 

(Coiitinued on page 773) 



MAY 5, 1946 



763 



Proposed Limitation on Importation of Swiss Watches 



EXCHANGE OF MEMORANDA BETWEEN U.S. AND SWISS GOVERNMENTS 



[Released to the press April 22] 

2'ext of an exchange of memoranda hehveen the 
United States and Sivitzerland concerning the ex- 
portation of watches and watch movements, watch 
farts, loatch-making machinery, and jewel hear- 
ings from Switserland to the United States during 
the period Janvarij 1, lOJ^ to March 31, 19^7 

LEGATION OF SWITZERLAND 

Washington 8, D. C. 

April 22, lDJi6. 

The Legation of Switzerland wishes to refer to 
recent conversations which have taken phice be- 
tween officials of the Governments of the United 
States and Switzerland in regard to a number of 
problems affecting the importation into the United 
States of Swiss watclies, watch movements and 
parts, watchmaking machinery and jewel bear- 
ings. 

Reference was made in these conversations to 
the fact that the United States watch manufac- 
turing industry had during the last few years been 
converted largely to war production, and in con- 
trast to many other industries similarly converted, 
the absence of American production had been 
largely- compensated by imports of Swiss watches. 
The fact that as large an accumulated civilian de- 
mand did not exist in the case of watches as in 
other commodities, therefore, appeared likely to 
create certain difliculties for the American watcli 
manufacturing industry during its period of re- 
conversion to civilian pi'oduction. It was also 
recognized that, by the terms of the Trade Agree- 
ment between the United States and Switzerland 
concluded in 19.36,^ no quantitative limitations were 
to be placed by the United States on the importa- 
tion of watches and watch movements into the 
United States. It was further recognized that this 
provision of the Trade Agreement should not be 
allowed to operate in a manner to interfere with 
the reconversion of the United States watch man- 
ufacturing industry. Taking into account such 
considerations as the foregoing, the Legation of 



Switzerland makes the declarations set forth 
below : 

1. The Swiss Government is willing to effect a 
scheduling of the exports of watches and watch 
movements during the period of the reconversion 
of the United States watch manufacturing indus- 
try to civilian production (which is estimated for 
that purpose to end March 31, 1947) so that the 
\olume of watches and watch movements reaching 
tlie United States shall not be such as to interfere 
with the ready marketing in the United States of 
the products of the American watch industry. 

2. In order to facilitate such scheduling de- 
scribed in Paragraph 1, above, the Swiss Govern- 
ment further declai-es itself prepared to : 

(a) Initiate immediately such measures as are 
available to it to channel the shipment of watches 
and watch movements from Switzerland directly 
to the United States and to prevent their indirect 
shipment to the United States. 

{h) Initiate immediately such measures as may 
be necessary to assure that direct shipments of 
watches and watch movements from Switzerland 
to the LTnited States during 1946 shall not exceed 
the amount of direct exports in 1945. The limita- 
tion is to become effective retroactively to January 
1, 194('>. The volume of the direct sliipments dur- 
ing the first three months of 1947 shall be calcu- 
lated pro rata temporis. 

3. The two governments will review the ques- 
tion of the volume of imports of Swiss watches 
and watch movements from time to time as the 
Government of the United States or the Swiss 
Government may deem necessai'y. If at any time 
during the reconversif)n period satisfactory evi- 
dence appears that the United States watch in- 
dustry is finding difficulty in marketing its prod- 
ucts, the Government of Switzerland declares 
itself prepared, in addition to the control of ex- 
ports contemplated by Paragraph 2 above, to 

^ Executive Agreement Series 90. 



764 



DEPARTMENT OF STATE BULLETIN 



effect a further retluctioii in the vohune of exports 
of watches and watch movements from Switzer- 
land to the United States to an extent to be agreed 
upon between the two governments. 

Furthermore, tlie Swiss Government takes cog- 
nizance of the opinion expressed by ofTicials of the 
(lovernment of the United States that a joint re- 
view shall be made whenever tiie imports in any 
three-month period during I!)4() exceed the average 
direct imports during a similar period of the years 
1942-45, inclusive, or whenever the volume of im- 
ports with respect to the several United States 
import classifications greatly deviates in any such 
period from the general pattern established dui-ing 
the last decade, and sees no objection to such 
procedure. 

-1. The Swiss (iovennncnt will use its good nf- 
tices to expedite the issuance of exjiort permits 
by the Swiss Watch Chamber and other watch 
associations for watch parts and for jewel bearings 
to be used in the manufactui'e of watches in the 
United States, according to the autonomous in- 
ternal regulations of the Swiss Government. Tiie 
Swiss Govermnent also will use its good offices 
to secure the issuance of export licenses to supply 
tlie American watch manufactiuing industry witii 
the watchmaking machinery which it is now en- 
deavoring to purchase in Switzerland and will con- 
sider sympathetically the granting of export 
licenses for such further watchmaking machinery 
as United States watch manufacturers may desire 
to purchase in Switzerland. The Swiss Legation 
is looking forward to receiving from the Depart- 



ment of State the list of machines which the 
American watch manufacturing industry is now 
desirous of obtaining in Switzerland. 

The foregoing declarations will be in effect until 
March 31, 1947. 



Aipe-Memoikk 

April 2i2, mo. 

The Government of the United States appreci- 
ates the declaration made by the Legation of 
Switzerland in its aide-memoire of April 22, 1946 
concerning the intentions of the Government of 
Switzerland with respect to the exportation of 
watches and watch movements, watch parts, 
watchmaking machinery and jewel bearings to the 
TTnitcd States during the period from January 1, 
1!)46 to March 31, 1947. 

The Government of the United States believes 
that the adoption and execution of these measures 
by the Government of Switzerland will contribute 
materially to the solution of problems confronting 
the American watch industry in its period of re- 
conversion to civilian production and will serve, 
at the same time, to assure the American watch 
importers and assemblers as well as the retail jew- 
elers and consumers of an adequate supply of 
watches. 

The Department of State, in this connection, 
will transmit to the I./egation of Switzerland in the 
very near future the lists referred to in paragraph 
four of the aide-memoire. 



Closing of Displaced-Persoiis Camps Postponed 



[Released to the press Aiiril 22] 

Secietary Byrnes announced on April 22 that 
after a conference witli the President on Saturday, 
A))ril 20, it was decided to defer closing the camps 
for displaced persons in the American zone in Ger- 
many. The closing was scheduled for the month 
of August. 

The Secretary stated tiiat the President and he 
agi-eed with the jiosition of the Army that these 
camps could not be maintained indefinitely but 
concluded the closing should be postponed until 
after the LTnited Nations Assembly has had an 



oi^portunity to consider the report of its connnit- 
tee which was appointed at the last Assembly meet- 
ing to study the refugee problem. The committee 
will I'eport to the next meeting of the Assembly in 
September, and it was concluded that the camps 
should not be closed until the Assembly had an 
opixirtunity to consider sonu' substitute [ilan. 

In the meantime every encouragement will be 
offered to governments willing to receive as na- 
tionals the unfortunate homeless now in the camps 
ill the American zone. 



MAY 5, 1946 



765 



U.S. Position on Recoo;nition of Trans- Jordan 



LETTER FROM THE SECRETARY OF STATE TO SENATOR MYERS 



[Released to the press April 23] 

April 23, HUG 

My Dear SE>f atoe Myers : 

I have received your letter of April 9, 1046 with 
respect to Trans-Joi"dan. 

Before taking up the points raised in your letter 
it may be useful to review some of the back- 
ground. 

In the Mandate of the League of Nations of 
July 24, 1922, a distinction was made between the 
lands lying to the west and to tlie east of the 
Jordan River. Article 25 of the JNlandate reads 
as follows: 

"In the territories lying between the Jordan and 
the eastern boundary of Palestine as ultimately 
determined, the Mandatory .shall be entitled, with 
the consent of the Council of the League of Na- 
tions, to postpone or withhold application of such 
{>rovisions of this mandate as he niay consider 
inapplicable to the existing local conditions, and 
to make .such provision for the administration 
of the territories as he may consider suitable to 
those conditions, provided that no action shall be 
taken which is inconsistent with the provisions of 
Articles 15, 16 and 18.'' 

In September 1922, the Council of the League of 
Nations approved a memorandum presented by the 
British Government proposing that Trans-Jordan 
should be exempted from all clauses of the Pales- 
tine Mandate dealing with the Holy Places and 
the Jewish National Home, and providing for a 
separate administration in Trans-Jordan. In its 
memorandum to the League Council the British 
Government accepted responsibility as Manda- 
tory for Trans- Jordan in the following words : 

"In the application of the Mandate to Trans- 
Jordan, the action which in Palestine is taken by 
the Administration of the latter country, will be 
taken by the Administration of Trans-Jordan un- 
der the general supervision of the Mandatory." 



Following this action of the Council of the 
League of Nations, the High Commissioner for 
Palestine made the following announcement at 
Amnuin in April, 1923: 

'"Subject to the approval of the League of Na- 
tions, His Majesty's Government will recognize 
the existence of an independent Government in 
Trans-Jordan under the rule of His Highness the 
Emii' Abdulla, provided that such Government is 
constitutional and places His Britannic Majesty's 
Government in a position to fulfill its interna- 
tional obligations in respect of the territory by 
means of an agreement to be concluded between 
the two Governments."' 

It was agreed in an exchange of notes in July 1924 
that the United States' consent would be applicable 
to Trans- Jordan. (Hackworth's Digest of Inter- 
national Law, Vol. I, pp. 114-115.) Subsequently, 
on December 3, 1924, the United States signed a 
Convention with the United Kingdom regarding 
the Mandate for Palestine. By Article 1 of that 
Convention the United States consented to the ad- 
ministration of Palestine by the British Govern- 
ment, pursuant to the Mandate. By Articles 2, 3, 
5 and 6, the British Government recognized cer- 
tain rights of the United States with regard to 
Palestine and Trans-Jordan. These rights com- 
prised non-discriminatory treatment in matters of 
connnerce; non-impairment of vested American 
propertj' rights; permission for American na- 
tionals to establish and maintain educational, phil- 
osophic and religious institutions in Palestine; 
safeguards with respect to the judiciary; and, in 
general, equality of treatment with all other for- 
eign nationals. Lastly Article 7 of this Conven- 
tion stipulated that: 

"Nothing contained in the present convention 
shall be affected by any modification which may be 
made in the terms of the mandate, as recited above, 
unless such modification shall have been assented 
to l)v the United States.'' 



766 



DEPARTMENT OF STATE BULLETIN 



It lias been the consistent position of the Govern- 
ment of the United States that Article 7 does not 
empower this Government to prevent the modifi- 
cation of the terms of the Mandate. This Article, 
however, renders it possible for this Government 
to decline to recognize the validity of the applica- 
tion to American rights and interests, as defined 
by the Convention, of any modification of the 
Mandate unless such modification has been as- 
sented to by the Government of the United States. 
(For the text of the Convention see Treaties, Con- 
ventions, etc. between ths United States and Other 
Poxoers, Vol. 4, pp. 4227-4234 ; Senate Document 
No. 134, 75tli Congi-ess, 3rd Session.) 

By signing the Convention of December 3, 1924, 
the Government of the United States acquiesced in 
the decision of the Council of the League of Na- 
tions referred to above that Trans-Jordan should 
be exempted from all the clauses of the Palestine 
Mandate dealing with the Holy Places and the 
Jewish National Home and that it should enjoy 
an independent position. There has been, there- 
fore, a differentiation in the treatment of Trans- 
Jordan and Palestine since 1923, a differentiation 
formally approved by the Council of the League 
of Nations in September 1922 and tacitly approved 
by the Government of the United States when it 
signed and ratified the Convention of December 
3, 1924. 

In February 1928, the British and Trans-Jor- 
dan Governments signed an Agreement, formally 
ratified in October 1929 and supplemented in June 
1934, thereby consummating the earlier agreement 
of 1923. Finally, on January 17, 1946 in an ad- 
dress before the General Assembly of the United 
Nations, the British Foreign Minister made the 
following statement with regard to the future 
status of Trans- Jordan : 

"Regarding the future of Trans-Jordan, it is the 
intention of His Majesty's Government in the 
United Kingdom to take steps in the near future 
for establishing this territory as a sovereign, in- 
dependent state and for recognizing its status as 
such. In these circumstances, the question of plac- 
ing Trans-Jordan under a trusteeship does not 
arise." 

On February 9 at a Plenary Session of the Gen- 
eral Assembly of the United Nations a resolution 
on non-self-governing peoples was unanimously 



adopted which included the following statement: 
"The General Assembly welcomes the declara- 
tions made by certain States administering ter- 
ritories now held under mandate, of an intention 
to negotiate trusteeship agreements in respect of 
some of these territories, and in respect of Trans- 
Jordan to establish its independence." 

On March 22, 1946, a Treaty of Alliance was 
entered into between the United Kingdom and 
Trans-Jordan. Article 8 of that treaty contains 
the following provisions: 

"1. All obligations and resijonsibilities devolv- 
ing on His Majesty The King in respect of Trans- 
Jordan in respect of any international instrument 
which is not legally terminated should devolve on 
His Highness The Amir of Trans-Jordan alone, 
and the High Contracting Parties will immedi- 
ately take such steps as may be necessary to secure 
the transfer to His Highness The Amir of these 
responsibilities. 

"2. Any general international treaty, conven- 
tion or agreement which has been made applicable 
to Trans- Jordan by His Majesty The King (or by 
his Government in the United Kingdom) as man- 
datory shall continue to be observed by His High- 
ness The Amir until His Highness The Amir (or 
his Government) becomes a separate contracting 
l^arty thereto or the instrument in question is le- 
gally terminated in respect of Trans-Jordan." 

After a careful study of the matter, the Depart- 
ment has found nothing which would justify it in 
taking the position that the recent steps taken by 
Great Britain with regard to Trans-Jordan vio- 
late any treaties existing between Great Britain 
and the United States, including the Convention 
of December 3, 1924, or deprive the United States 
of any rights or interests which the United States 
may have with respect to Trans-Jordan. The De- 
I^artment considers, however, that it would be pre- 
mature for this government to take any decision 
at the present time with respect to the question of 
its recognition of Trans-Jordan as an independent 
state. 

Sincerely yours, 

James F. Btrnes 
The Honorable 

Francis J. Myers, 
United States Senate, 



MAY 5, 1946 



767 



Report of U. S. Education Mission to Japan ' 



TRANSMITTAL OF REPORT TO THE SECRETARY OF STATE 



[Released to the press April 22] 

April 19, 1946 
The Secretary: 

Herewith I submit the report of the U.S. Edu- 
cation Mission to Japan. The most striking single 
element, in my judgment, is the revelation that the 
literacy of the Japanese people has been greatly 
over-rated and the recommendation that Japan 
foster the widespread use of an alphabet. The 
Mission recommends that some form of Romaji 
(the use of a jihonetic system based on the Roman 
alphabet instead of Chinese ideographs) be brought 
into common use throughout Japan by all meaais 
possible. 

This proposal, if adopted, can contribute enor- 
mously to the democratization of the Japanese way 
of life. 

Dr. George D. Stoddard, Chairman of the Mis- 
sion, tells me that the much vaunted literacy rate 
in Japan is another Japanese myth. An elemen- 
tary school graduate, after spending a high 
percentage of his years in school studying the 
Japanese ideographs, is able to recognize only six 
to eight hundred characters. Approximately 85 
percent of the Japanese children terminate their 
education with the elementary school. The daily 
press, says Dr. Stoddard, uses in the neighbor- 
hood of 2400 characters. This means that a very 
great percentage of the Japanese populace, while 
theoretically rated as literate, are unable to in- 
form themselves of the day -by-day happenings in 
the world through the written language. Even 
the average Japanese college graduate finds it nec- 
essary constantly to refer to a dictionary in ordi- 
nary correspondence. 

When I was in Japan in 1937 I was informed 
on all sides that Japan's literacy rate was very 
nearly 100 percent. This claim is still advanced, 
and has been generally accepted throughout the 
world. But an alleged literacy in which two- 
thirds of the characters used in the newspapers 
ai"e unintelligible to the great masses of people 



is not the kind of literacy that has political or 
democratic significance. Democracy is impossi- 
ble unless the peoj)le are able to understand politi- 
cal, economic and social issues. Thus this pro- 
posed reform of the written language, difficult as 
it may be to achieve, holds great i:)romise for the 
Jaj^anese people and for the cause of world mi- 
derstanding and peace. It may in fact be the 
supreme test for the new leaders of Japan. 

Further, there are some aspects o,f the trip of 
the Mission which may transcend in importance 
the formal content of its report. The recognition 
by General MacArthur of the important part 
played by the educational system of a nation, in 
enabling that nation to become and to remain 
democratic, is further evidence of his leadership. 
I am especially gratified that the important part 
that can and must be played bj' civilians in meet- 
ing the problems of military occupation has been 
demonstrated here in a very practical way. 

The warmth of the i-eceptivity on the part of 
the Japanese was, in its extent and sincerity, a 
pleasant surprise to the Mission. The Mission 
leports a growing sense of mental and spiritual 
liberation among great numbers of the Japanese 
people. There is fertile soil for democratic de- 
velopment among many Japanese intellectual 
leaders, who are now earnestly seeking all that we 
can give them in the way of guidance and assist- 
ance. Their desire to prepare Japan to take her 
place in the family of democratic nations is a good 
omen for peace. 

This sense of liberation is strong in Japan. Mr. 
Abe, the Japanese Minister of Education, wel- 
comed the delegation with these words : "It is my 
conviction that democracy is to be the basis of 
our postwar social life, political life and economic 
life, and therefore also the basis of education since 
education is the foundation of all this. But I hold 

' Submitted by the U. S. Education Mission to Japan to 
the Supreme Commander for the Allied Powers, Tokyo, 
Mar. 30. 



768 

this conviction not simply because this was the 
principle forced npon us by America, but because 
this derives from a fundamental principle of the 
universe and is based upon the essential nature of 
luunan beings." He also sounded this note of 
warning to his own people : 

"The liberals, who had been under the pressure 
of militarism during the war, took the Allied 
Powers for their Savior and fell under the illu- 
sion that, suddenly, their best days have come, 
and, forgetting the fact of our surrender, they 
thought that the future of our country was going 
to be easily built through the help of the Allied 
Powers. We should, however, repent like the con- 
vert of all the miseries and sacrifices we have in- 
flicted upon our own country and the world 
through our faults and crimes in this war. At 
the same time, we should consider our position of 
a surrendered nation as a trial sent by God, endure 
it, overcome it, and turn tlie present misfortune 
into a future blessing. AVe believe that your coun- 
try is not going to violate truth and justice on the 
strength of her being a victor. And we pray that 
the pressure brought upon us by this victor — for 
we cannot help feeling it as a pressure — will help 
to make truth and justice ])ernieate all our country, 
and serve as a chance for us to eliminate quickly 
and vigorously all the injustices and defects exist- 
ing in our society' and all tlie weaknesses and evils 
underlying our national character and customs."' 

The Mission was furtlier gratified by state- 
ments by Japanese leaders, such as the following 
from an address delivered on the anniversary of 
the founding of Japan by Shigeru Nambara, Presi- 
dent of Tokyo Imperial Univei'sity, and Chairman 
of the Committee of Japanese educators which sat 
witli the U. S. Mission : 

"Japan . . . staked all her time-old tradition 
and indigenous spirit on this war and was de- 
feated .... With what can the Japanese try to 
reconstruct their own fathei'land? It will never 
be found in past history. It nnist be created in 
the future. . . . 

"It should not stop simply by being a change of 
the political and social system, but further it must 
be a subjective spiritual revolution, intellectual 
and religious in nature." 

In the Emperor's request that Dr. Stoddard 
secure for him an American woman to serve as 
tutor for the Crown Prince, there may be a sym- 



DEPARTMENT OF STATE BULLETIN 

bolic crystallization of the move towards reorien- 
tation by the Japanese and the struggle towards 
the internationalization of Japanese culture. 

While the report itself is more or less technical, 
the work of this Mission has demonstrated a fresh 
approach to the problem of international relations, 
and merits serious consideration for future de- 
velopment and expansion. The inspiration and 
encouragement to the earnest leaders of foreign 
nations by visits from similar groups from Amer- 
ica has a potential importance that should not be 
underestimated. 

William Benton 

TRANSMITTAL OF REPORT 
TO GENERAL MACARTHUR 

March 30, 19^6 

JNIy Dear General MacArthur, 

On behalf of the United States Education Mis- 
sion to Japan, I have the honor to submit herewith 
a report on Japanese education, with recommenda- 
tions. 

In signing this report, the Mission asks me to 
tliank you for the invitation which formed us into 
a group, for the foresight that brought us across 
the ocean, and for the extensive aid given by your 
Civil Information and Education Section. We 
have had the privilege of an extensive briefing in 
the Japanese educational system at the hands of 
your excellent staff, together with an ease of access 
to our helpful counterparts, the Japanese educa- 
tors. We are deeply impressed by the efficiency 
and integrity of a military that solicits objective 
guidance in this difficult field. 

We ai'e also impressed with the cultural re- 
sources of the Japanese people and especially with 
the children. The people's will to move forward 
has survived the spiritual poverty of autocratic 
power and defeat. The new leaders frankly admit 
that Japan had been set upon the wrong path. 
They are pi-epared to follow what to them is a 
strange new constitutional road to peace, facing 
unfearfully the demands of democracy. 

Our labor has progressed in a spirit of gratitude 
to you and your staff, of confidence in the future of 
Japan, and of hope for a more peaceful and hu- 
mane world. 

Kespectfully yours, 

George D. Stoddard 
Chair/nan, Education Mission 



MAY 5, 1946 



769 



GENERAL MacAKTHUR'S STATEMENT 



Statement mcuJe by General MacArthur in releas- 
ing a summary of the rejwrt of the United States 
Education Mission to Japan for publication in the 
United States as of April 6, 1940 

The report iind recommendations submitted to 
me by the United States Education Mission to 
Japan cover the whole scope of the education meth- 
ods and principles very thoroughly and tlieir anal- 
ysis and representation of views reveal the high 
character and intelligence of the Committee mem- 
bers. 

It is a document of ideals high in tlie democratic 
tradition. In origin, these ideals are universal. 
Likewise universal are the ends envisaged by the 
mission. In devising possible means to achieve 
them, full cognizance has been taken of the views 
of the Japanese themselves regarding the problems 
of better schools, better teachers and better tools 
of learning. Few of these proposals, therefore, 
will appear entirely novel or surprising to think- 
ing Japanese and other peoples. The I'eport will 
be most helpful to the Civil Information and Edu- 
cation section of my headquarters in their further 
efforts to assist the Japanese government in mod- 
ernizing the Japanese educational system. The 



report may well be studied by all educators regard- 
less of individual aspects. Some of the reconnnen- 
dations regarding education principles and lan- 
guage reform are so far reaching that they can 
only serve as a guide for long range study and 
future planning. 

The eventual reforms in education as worked 
out by the Japanese people will provide tliem with 
a system of learning that furnishes a thorough 
ground in the basic knowledge essential to their 
becoming a member of the family of nations dedi- 
cated to the promotion of world peace and respect 
for the fundamental human rights. The eventual 
form the education organization shall take will be 
that as adopted by the Japanese people in their 
endeavor to establish a peacefully inclined and 
I'esjJonsible government in accordance with the 
Potsdam Proclamation. 

I must express to the membei's of the Education 
Mission my sincere appreciation for the time they 
so generously gave and the contribution they have 
made toward a better educated world. They have 
earned the thanks of the entire Allied Nations for 
their unstinting contribution to the cause of edu- 
cational uplift. 



DIGEST OF THE REPORT 



The United States Education Mission, con- 
sisting of twenty-seven representatives of Ameri- 
can education under the chairmanship of Dr. 
George D. Stoddard, in the process of preparing 
this report, spent the month of March in Japan 
consulting with the officers of the Education Di- 
vision of the Civil Information and Education 
Section, General Headquarters, SCAP, with a 
committee of Japanese educators appointed by the 
Minister of Education of Japan, and with other 
representatives of the schools and of various walks 
of life in Japan. This report to the Supreme 
Commander for the Allied Powers is presented 
upon the basis of the deliberations by the mem- 
bers of the Mission. 

The Mission recognizes the necessity for the 
original negative directives, such as those eradi- 
cating militarism and nationalistic Shintoism 
from the schools, but it has concentrated chiefly 
upon positive proposals. In so doing it has sought 



to aid the Japanese to set for themselves the 
conditions for reestablishing a sound educational 
system within their cultui-e. 

The Aims and Content of Japanese Education 

A highly centralized educational system, even 
if it is not caught in the net of ultra-nationalism 
and militarism, is endangered by the evils that 
accompany an intrenched bureaucracy. Decen- 
tralization is necessary in order that teachers may 
be freed to develop professionally under guidance, 
without reginientation. They, in turn, may then 
do their part in the development of free Japanese 
citizens. 

To this end, knowledge must be acquired that 
is broader than any available in a single pre- 
scribed textbook or manual, and deeper than can 
be tested by stereotyped examinations. A cur- 
riculum consists not merely of an accepted body 
of knowledge, but of the pupils' physical and 



770 



DEPARTMENT OF STATE BULLETIN 



mental activities; it takes into account their dif- 
fering backgrounds and abilities. It shoidd 
therefore be set up through cooperative action in- 
volving teachers, calling on their experience and 
releasing their creative talents. 

Morals, which in Japanese education occupy a 
separate place, and have tended to promote sub- 
missiveness, should be differently construed and 
should interpenetrate all phases of a fi'ee people's 
life. Manners that encourage equality, tlie give- 
and-take of democratic government, the ideal of 
good workmanship in daily life — all these are 
morals in the wider sense. They should be de- 
veloped and practiced in the varied program and 
activities of the democratic school. 

Books in the fields of geograj^hy and history 
will have to be rewritten to recognize mythology 
for what it is, and to embody a more objective 
vieAvpoint in textbooks and reference materials. 
On the lower levels more use should be made of 
(he community and local resources; at the higher 
levels competent scholarship and research should 
be encouraged in various ways. 

The program in health instruction and physical 
education is basic to the educational program as a 
whole. Medical examinations, instruction in nu- 
trition and public health, the extension of the 
physical education and recreation program to the 
university level, and the replacement of equipment 
as rapidly as possible are recommended. 

At all levels vocational education should be em- 
phasized. A variety of vocational experiences is 
needed under well trained staff members, with an 
emphasis on technology and its supporting arts 
and sciences. The contributions of artisans and 
workers should find a place in the social studies 
program, and opportunities for originality and 
creativity should be provided. 

Language Reform 

The problem of the written language is funda- 
mental to all modifications in educational practice. 
While any change in the form of a language must 
come from within the nation, the stimulus for such 
cliange may come from any source. Encourage- 
ment may be given to those who recognize the 
value of language reform, not only to the educa- 
tional program, but also to the development of the 
Japanese people throughout future generations. 

It is recommended that some form of Eomaji be 
brought into common use. It is proposed that a 



language commission made up of Japanese schol- 
ars, educational leaders and statesmen be formed 
IDromptly in order that a comprehensive program 
may be announced Mithin a reasonable period. In 
addition to deciding the form of Romaji to be 
chosen, this commission would have the following 
functions: (1) to assume the responsibility for 
coordinating the program of language reform dur- 
ing the transitional stages; (2) to formulate a 
plan for introducing Romaji into the schools and 
into the life of the community and nation through 
newspapers, periodicals, books, and other writ- 
ings; and, (3) to study the means of bringing 
about a more democratic form of the spoken lan- 
guage. The commission might, in time, grow into 
a national language institute. 

The need for a single and efficient medium of 
written communication is well recognized, and the 
time for taking this momentous step is perhaps 
more favorable now than it will be for many years 
to come. Language should be a highway and not 
a barrier. Within Japan itself, and across na- 
tional borders, this highway should be open for 
the transmission of knowledge and ideas in the 
interest of a better world understanding. 

Administration of Education at the Primary and 
Secondary Levels 

The principle is accepted that, for the purposes 
of democratic education, control of the schools 
should be widely dispersed rather than highly cen- 
tralized as at present. The observance of cere- 
monies in the reading of the Imperial Rescript 
and obeisances to the Imperial Portrait in the 
schools are regarded as undesirable. The Ministry 
of Education, under the proposals of the Mission, 
would have important duties to perform in pro- 
viding technical aid and professional counsel to 
the schools, but its direct control over local schools 
would be greatly curtailed. 

In order to provide for greater participation by 
the people at local and prefectui-al levels, and to 
remove the schools from the administrative con- 
trol by representatives of tlie Minister of Home 
Affairs at the local level, it is proposed to create 
educational agencies elected by popular vote, at 
both local and prefectural levels. Such agencies 
would be granted considerable power in the ap- 
proval of schools, the licensing of teachers, the 
selection of textbooks — power now centralized in 
the Ministry of Education. 



MAY 5, 1946 



771 



Tliere is proposed an upward revision of com- 
pulsory education in schools to be tax-supported, 
coeducational and tuition- fi-ee, such education to 
cover nine years of schooling, or until the boy or 
girl reaches the age of sixteen. It is further pro- 
posed that the first six years be spent in primary 
school as at present, and the next three years in a 
"lower secondary school" to be developed through 
merging and modifying the many kinds of schools 
which those completing primary school may now 
enter. These schools should provide general edu- 
cation for all, including vocational and educa- 
tional guidance, and should be flexible enough to 
meet individual differences in the abilities of the 
pupils. It is proposed further that a three-year 
"upper secondary school'' be established, fi'ee of 
tuition costs, in time to be coeducational, and pro- 
viding varied opportunities for all who wish to 
continue their education. 

Together, the lower and upper secondary schools 
would continue the varied functions of other tax- 
supported schools now at this level : higher elemen- 
tary schools, girls' high schools, preparatory 
courses, vocational schools, and youth schools. 
Graduation from the upper secondary schools 
would be made a condition of entrance to insti- 
tutions of higher learning. 

Private schools under the proposal would retain 
full freedom, except that they would be expected 
to conform to the minimum standards necessary 
to assure ready transfer by the pupil from one 
school to another, whether public or private. 

Teaching and the Education of Teachers 

In order that the newer aims of education may 
be achieved, teaching methods emphasizing mem- 
orization, conformity and a vertical system of 
duties and loyalties should be modified to encour- 
age independent thinking, the development of per- 
sonality, and the rights and responsibilities of 
democratic citizenship. The teaching of morals, 
for example, should be less by precept than by in- 
struction deriving from experiences in concrete 
situations in school and community. 

A program for the reeducation of teachers 
should be set up to further the adoption of demo- 
cratic methods in the transitional period. Sug- 
gestions are made for a program which will grad- 
ually merge into one of in-service education. 

Normal schools should be modified so as to pro- 
vide the kinds of teachers needed. They should 



admit students only after completion of a course 
in the upper secondary school equivalent in stand- 
ards to that of the present middle school, thus elim- 
inating the normal preparatory courses. The re- 
organized normal schools, all more nearly at the 
level of the higher normal schools, should become 
four-year institutions; they would continue gen- 
eral education and provide adequate professional 
training for teachers in elementary and secondary 
schools. 

Other institutions for preparing teachers for 
certification, whether private or tax-supported, 
should satisfy teacher-training standards equiva- 
lent to those of the reorganized normal schools. 

School administrators and supervisors should 
have a professional education equivalent to that 
for teachers and should have, in addition, such 
special preparation as will fit them for their as- 
signed duties. 

Universities and other higher institutions should 
develop facilities for advanced study on the part 
of teachers and administrators; they should pro- 
mote research and exert educational leadership. 

Adult Education 

During this period of crisis for the Japanese 
people, adult education is of paramount impor- 
tance, for a democratic state places much respon- 
sibility on each citizen. 

The schools are but one agency for adult educa- 
tion, but through parent-teacher activities, evening 
and extension classes for adults, and the opening 
of buildings to a variety of community activities, 
adult education may be fostered. 

Another important institution for adult educa- 
tion is the public library. It is recommended that 
central public libraries, with branches, be estab- 
lished in the larger cities, and that appropriate 
arrangements be made for library service in all 
prefectures. The appointment of a director of 
l)ublic library service in the Ministry of Educa- 
tion would facilitate this program. Museums of 
science, art, and industry may serve educational 
purposes paralleling those of the library. 

In addition, organizations of all kinds, includ- 
ing community and professional societies, labor 
unions, and political groups, should be helped to 
use effectively the techniques of forum and 
discussion. 

In the furtherance of these ends, the present 
adult education services of the Ministry of Edu- 
cation should be vitalized and democratized. 



712 



DEPARTMENT OF STATE BULLETIN 



Higher Education 

For a period of years following the first world 
war currents of liberal thought were fostered 
largely by men and women educated in the colleges 
and universities of Japan. Higher education now 
has the opportunity of again setting a standard 
of free thought, bold inquiry, and hopeful action 
for the people. To fulfil these purposes, higher 
education should become an opportunity for the 
many, not a privilege of the few. In order to 
increase the oppoi-tunities for liberal education at 
higher levels, it would be desirable to liberalize 
to a considerable extent the curricula of the pre- 
paratory schools (Koto Gakko) leading to the uni- 
versities and those of the more specialized colleges 
(Semmon Gakko), so that ii general college train- 
ing would become more widely available. This 
would lead, on the one hand, to university study, 
and, on the other, to specialized training at the 
semi-professional level such as is provided by the 
Semmon Gakko, but rounded out with training of 
broader cultural and social significance. 

In addition to providing more colleges, it is 
proposed that more universities be established ac- 
cording to a considered plan. Some governmental 
agency should be responsible for supervising the 
establishment of higher institutions and the main- 
tenance of the requirements first set down. Except 
for examining the qualifications of a proposed 
institution of higher education before it is per- 
mitted to open its doors, and assuring that these 
initial requirements are met, the governmental 
agency should have practically no control over 
institutions of higher education. The institutions 
should be entirely free in all respects to pursue 
their objectives in the manner which they them- 
selves deem best. 

Establishment of economic and academic free- 
dom for faculties in institutions of higher educa- 
tion is of primary importance. To this end, it is 
recommended that the present civil service plan be 
discontinued. 

For the student, the freedom which should be 
guaranteed is freedom of access, on the basis of 
merit, to all levels of higher studies. Financial 
help should be given, in order that further educa- 
tion may be positively assured for talented men 
and women unable to study on their own resources. 
Freedom of access to higher institutions shoidd 
l)e provided immediately for all women now pi'e- 



pared for advanced study; .steps should be taken 
also to improve the earlier training of women. 

The extension of libraries, research facilities, 
and institutes is recommended; such agencies 
can make invaluable contributions to the public 
welfare during the period of reconstruction and 
beyond. Attention needs to be given to the im- 
provement of professional education in fields such 
as medicine, school administration, journalism, 
labor relations, and public administration. A spe- 
cial commission is recommended for the study of 
the whole question of medicine and public health. 



Views on Reported Press 
Censorship in Iran 

[Released to the press April 23] 

On April IT the Department of State released 
to the press a statement concerning the reported 
institution of censorship in Iran.^ The Embassy 
at Tehran was instructed on April 19 to express to 
Prime Minister Ghavam the following views of the 
United States Ciovernment on this subject: 

The United States Government is opposed as a 
matter of national policy to political or other 
censorship in time of peace and considers blind 
censorship to be the most intolerable kind, often a 
source of misunderstanding and friction ; the 
American public would, under a system of blind 
censorship, soon come to place no confidence in 
dispatches from Iran; American correspondents 
have demonstrated ability for fair and accurate 
reporting which has enabled the American public 
to make valid judgments as regards the Iranian 
situation; this has created an understanding of 
Iran which might be lost because of censorship. 

Prime Minister Ghavam on April 20 informed 
an official of the Embassy that no censorship has 
been applied to American or any other news 
stories, with the exception of two London Times 
dispatches. The Prime Minister stated that noth- 
ing will be suppressed unless it falls within the 
provisions of the Madrid convention of 19o'2. He 
added that no blind censorship has been applied 
and that, in any event, American corresjjondents 
will be informed in case their dis])atches are 
stopped. 

' Bulletin of Apr. 28, 1946, p. 731. 



MAY 5. 1946 



773 



Negotiations Regarding Military Facilities in Iceland 



[Kelensed to the press Ai>ril 27] 

United States forces entered Iceland on the in- 
vitation of the Icelandic Government in July 1941. 
These forces and the military facilities constructed 
largely by the United States, played a vital part 
against the Axis in keeping open the Allied lines 
of sea and air communication across the North 
Atlantic including the convoy route to Murmansk. 
The peak gai'rison strength of 45,000 men has been 
reduced since the end of hostilities in Europe to 
about 1,000 men, chiefly Air Force technicians 
operating the facilities at Meeks (Keflavik) Field 
essential to air communication with the United 
States occupation foi'ccs now in Europe as a result 
of the war. There are no American combat troops 
in Iceland. 

The agreement between the United States and 
Iceland provides for the withdrawal of United 
States military forces from Iceland immediately 
on conclusion of the war. The limited military 
personnel still in Iceland will be withdrawn, and 
Meeks Field turned over to the Icelandic Govern- 
ment in accordance with this agreement. 

On October 1, 1945 the United States proposed 
to the Icelandic Government the basis for nego- 
tiation of a new agreement which should make 
military facilities in Iceland available for the 
joint use of Iceland and the United States beyond 
the termination of the present war. 

The proposal submitted by the United States 
provided that should Iceland be admitted to the 



United Nations, Iceland might make any military 
facilities granted the United States available to 
the Security Council in fulfillment of obligations 
which Iceland might assume under Article 43, 
Cliapter VII, of the Charter. In this connection 
the United States Government reiterated earlier 
assurances, given in response to inquiries by the 
Icelandic Government at the time of the San 
Francisco conference and again in September 1945, 
that the United States would whole-heartedly 
support the admission of Iceland to the United 
Nations. 

The United States further assured the Icelandic 
Government that such rights as Iceland might 
grant the United States would be exercised with 
full regard for Icelandic sovereignty and complete 
respect for the independence of Iceland. 

The proposals made to Iceland were made 
known to the British and Soviet Governments and 
subsequently to the Governments of Denmark, 
Norway, and Sweden. 

During November 1945 the Icelandic Govern- 
ment informed the United States that it was not 
ready to enter into discussions on the basis of the 
United States proposals, but was prepared to have 
further discussions concerning the admission of 
Iceland to the United Nations and the fulfillment 
of obligations to participate in those measures for 
the security of world peace provided in the United 
Nations Charter. The matter has rested there 
up to the present, and no negotiations have taken 
place. 



POLAND — Continued from, page 762. 

ECONOMIC AFFAIRS WITH THE 
PHILIPPINES 

A'oie From the Polish Ambassador to the Secretary 

of State ' 

April 2Jt, mo. 
Sni: 

I have tlie honor to refer to recent informal 
discussions concerning the relationship between 
the Treaty of Friendsliip, Commerce and Consular 
Rights, signed June 15, 1931, and a proposal pend- 
ing before the United States Congress to provide, 
among other things, for special trade arrange- 
ments between the United States and the Philip- 
pines after the Pliilippines become an independent 
nation on July 4, 1946. 



I hereby have the honor to inform you that in 
view of the very special nature of the intended re- 
lations between the United States of America and 
the Philippines, the most favored nation provisions 
of Article VI of the aforementioned Treaty shall 
not be understood as according to Poland any 
rights and privileges by reason of any special ar- 
rangements with respect to commerce between the 
United States and the Philippines which may be 
agreed to by the Government of the United States 
of America and the Government of the Republic 
of the Philippines. 

Accept retc.l ^ t 

^ ■- -■ OsKAR Lange 

' Released to the press Apr. 24. 



774 



DEPARTMENT OF STATE BULLETIN 



International Control of Atomic Energy 



A discussion on the international control of atomic energy was broadcast over the network of the Columbia 
Broadcasting System on April 23, by Under Secretary Acheson and Vannevar Bush, President of the Car- 
negie Institution of Wasliington and member of the Secretary of State's Committee on Atomic Energy, 
which was responsible for the Report on the International Control of Atomic Energy. Larry LeSueur was 
chairman of their discussion. Excerpts from their conversation on the air are presented below. For full 
text of the broadcast, see Department of State press release 274 of April 23, 1946. 



LeSueur: Mr. Acheson, will you tell us some- 
thing of the way the Secretary of State's Commit- 
tee on Atomic Energy went to work on their prob- 
lem and how the Report '^ was prepared? 

At'iiESON : Perhaps the most significant thing 
about this Report is its demonstration of a process 
of coming to grips with a most difficult problem. 
The special problem of atomic energy is not unlike 
other problems in this respect. Better under- 
standing and an approach to solutions can only 
be found through painstaking, intelligent exami- 
nation of the facts and patient consideration of 
alternatives. I think it may be of interest to de- 
scribe how the Report came about. As a result of 
the President's meeting with the Prime Ministers 
of Great Britain and Canada last fall, and the 
Moscow conference in December, the United King- 
dom, the U.S.S.R., Canada, and the United States 
sponsored the setting up of a United Nations Com- 
mission on Atomic Energy. When this Commis- 
sion was established by the General Assembly of 
the United Nations in January, it reflected the 
almost universal conviction that somehow means 
must be found to develop effective international 
control of this new force. It was also in Janu- 
ary that the Secretary of State set up a State 
Deijartment Committee to study the question of 
international control. This was done as a means 
of preparing our Government for the forthcoming 
deliberations of the United Nations Commission. 
In addition to Dr. Bush, who lias had so much to do 
with the atomic-energy project during the war, 
there were two others on the Committee whose part 
in this great achievement is well known; Presi- 
dent Conant of Harvard, and General Groves. 
The other members were Mr. John J. McCloy, 
former Assistant Secretary of War, and myself. 

Our Committee felt that what was most needed 

'A Report on the International Control of Atomic 
Eiierf/y, Department of State publication 2498. 



for a wise approach to the question was to bring 
together a group of qualified consultants who 
would be willing to give their full time long 
enough to make a really thorough analysis of in- 
ternational control. And so at the beginning of 
our work we appointed a Board of Consultants, 
consisting of Dr. J. Robert Oppenheimer, the bril- 
liant physicist who had such a prominent part in 
developing the bomb, three leading industrialists, 
Chester Barnard, President of the New Jersey 
Bell Telephone Company, Dr. Charles Thomas, 
Vice President of the Monsanto Chemical Com- 
pany, and Harry Winne, Vice President of the 
General Electric Company. The Board was 
headed by David Lilienthal, distinguished Chair- 
man of the Tennessee Valley Authority. For two 
months these men abandoned all their other work 
and devoted their full time to an intensive study 
of this problem. The Report on the International 
Control of Atomic Energy was largely their work. 
After thej^ completed their study they discussed 
their findings extensively with our Committee. All 
of us became firmly convinced that the plan which 
these men advocated with such remarkable unani- 
mity represented the most constructive analysis of 
the question that had been made, and a definitely 
hoiJeful approach to a solution. 

LeSueur: Is that the plan, then, under which 
this Government is going to proceed, Mr. Ache- 
son? 

Achesok: As the Secretary of State has said, 
this report is not a statement of Government pol- 
icy. It was made public merely as a basis for dis- 
cussion. In a way, it is a sort of working paper. 
It was prepared as a means of assisting the Presi- 
dent and the Secretary of State and other presi- 
dential advisers to determine the Government pol- 
icy. And, of course, even if the report were to be 
adopted as the outline of the official Government 
position, it should not be thought that in itself it 



MAY 5, 1946 



775 



contains a complete plan that the United Nations 
could then take and put into effect. It's more like 
the rough sketches an architect makes of a build- 
ing before the plan is accepted by his client and 
before the thousands of detail drawings are made 
that must be used to construct the building. 

Dr. Bush and I can give you a quick summary of 
the conclusions of the Board of Consultants. But 
I strongly urge our listeners to read the whole text 
of the liepovt. It's short enough to read in a 
couple of hours and it can't really be under-stood 
unless it is read in full. 

The control of atomic energy is a human prob- 
lem. The Consultants started their work the 
same way, I suppose, that most people begin 
when they think about this matter. They con- 
sidered the idea of an agreement among nations 
to outlaw atomic weapons. They observed, as 
everj'one does, that we are still far from that state 
where mere agreement among nations can provide 
security. But then when they examined the pos- 
sibility of giving strength to such an agi'eement by 
a woi'ld-wide system of inspection, they wei'e forced 
to conclude that such a police system would not 
work. I believe you agreed with that decision did 
you not, Dr. Bush ? 

Bush : I did and emphatically. It would re- 
quire an international police force of immense size 
to do the job at all. Wliat is more, it would take a 
high quality of personnel, who would never be will- 
ing to do mere police work. Every corner of the 
earth would have to be open to the international 
police. The political and mechanical complica- 
tions in such a system would be endless. It was 
certain to be as objectionable to this country as it 
would be to others. 

AcHESoN : Well, that scheme of solving the prob- 
lem didn't make sense — it wasn't realistic and it 
wasn't practical. The Board of Consultants then 
looked at the problem from an entirely different 
angle. They tried to see whether there was any 
means of reducing the whole problem of control to 
more manageable proportions. They looked care- 
fully at all the complicated scientific and technical 
facts concerning atomic energy, and they obseiwed 
a number of very significant things, technical 
things about atomic energy that could be utilized 
in building an effective and practical system of 
control. Their fii-st important conclusion was 
that there was one absolutely indispensable element 
in the pi'ocess of releasing atomic energy — that 



element was uranium. Dr. Bush can explain better 
than I can why this is true. 

Bush : That conclusion is the right one, Mr. 
Acheson. You must have uranium to produce 
atomic energy, so far as science can see. However, 
there is another element, thorium, which can be 
used if uranium is available as a starter. There- 
fore, it is wise to control both of them. These 
are the only two elements which occur abundantly 
in nature and which can be used as a primary 
source of fissionable material — that is, the material 
from which you get atomic energy. The ores of 
these elements are frequently found together in the 
earth — a fact that simplifies the over-all problem 
of control. Uranium, remember, is the indispensa- 
ble material for atomic fission. The Consultants 
concluded that for effective control it would be 
absolutely necessary to put the mining and posses- 
sion of uranium and thorium ores under the con- 
trol of an international body. This would mean 
that no nation and no individual could legally 
have control over any dangerous amounts of the 
two metals. They reasoned that by this one stroke 
the whole problem of international control would 
be immensely simplified. We would not have to 
worry about v)l\y someone or some nation had pos- 
session of uranium or thorium, nor what they in- 
tended to do with it — the very fact that the nation 
or individual had taken possession of a danger- 
ous amount would flash a danger signal to the 
world. For convenience they called their proposed 
organization the Atomic Development Authority. 
Once it was in operation it would immediately 
conduct world-wide geological surveys through 
which it would become fully aware of the location 
and the status of available ores. Its agents would 
be in charge of all mining operations. Any illegal 
effort to develop secret sources of the ores and 
thus to evade the safeguards would mean but one 
clear thing, that an aggressive effort was being 
made to make atomic armaments. 

LeSueur : I must say that seems very practical 
if we can get the other countries to agree. But 
that's not all there is to international control of 
atomic energy. Dr. Bush ? 

Bush: Xo. that's only one of the major prem- 
ises on which international control must be based. 
It's only one of the steps which the Board of 
Consultants went through in their thinking. 
After you get uranium and thorium out of the 
ground and even after you refine them you must 



776 

go through a long complicated process to get the 
fissionable materials which can be used in making 
bombs or in peaceful applications of atomic power. 
In studying this long process of production and 
utilization, the Board of Consultants observed 
another very significant fact. These operations 
could be divided into two general classes, safe 
and dangerous. On tlie one hand, they concluded 
that the operation of primary production plants 
by nations or individuals would be dangerous in 
the sense that such operations carried on by na- 
tions in competition with one another would be a 
constant threat to security. It would be impos- 
sible to tell under such conditions whether the 
plants were being used witli peaceful purposes 
in mind or for aggression. 

They concluded that there would be no hope for 
security unless these dangerous operations were 
placed in international hands, so that there would 
be no opportunity for destructive national rival- 
ries. As in the case of the mines, any attempt by a 
nation or an individual to set u]3 a primary pi'oduc- 
tion plant would be an immediate danger signal. 
It would be unnecessary to wonder about the pur- 
poses of such a nation. The mere act of operating 
such a plant would in itself be illegal. Thus by 
arranging the regulations so that the only legal 
operations were those of the international Au- 
thority the problem of control would again be 
greatly simplified. Specifically, of course, this 
would mean that our great installations at Han- 
ford and Oak Ridge would eventually be operated 
by an international Autliority. It would mean, in 
addition, that comparable installations would be 
owned and operated by tliat Authority in other 
nations. 

AcHESON : In plain words, the Report sets up a 
plan imder which no nation would make atomic 
bombs or the materials for them. All dangerous 
activities would be carried on — not merely in- 
spected — by a live, functioning international Au- 
thority with a real purpose in the world and capable 
of attracting competent personnel. This monopoly 
of the dangerous activities by an international Au- 
thority would still leave a large and tremendously 
productive field of xaff activities open to individual 
nations, their industries, and universities. 

LeSueur: The Report mentions something 
about a special kind of material for peaceful uses, 
doesn't it, Dr. Bush? Uranium with its explosive 
teeth pulled. Is that right? 



DEPARTMENT OF STATE BULLETIN 

Bush : Let's say the explosive teeth can be 
muzzled or made inoperative. The teeth are still 
there, but the muzzle cannot be removed without 
going to a great deal of trouble. By a process 
called "denaturing" dangerous fissionable mate- 
rials can be ti'eated or denatured so that they 
cannot be used for atomic explosives without 
going through a difficult renaturing or purifica- 
tion. To purify them would require plants of 
the same general type, though not the same size, 
as those at Oak Kidge. Denaturing material 
labels it at once as legal. Possession of un- 
denatured material by a nation or an individual 
\A-ithout authorization by the international control 
body would be illegal — a warning of trouble. Th.e 
fact that fissionable materials can be readily iden- 
tified as legal or illegal in this way will be of great 
importance in control, even' should renaturing be- 
come much simpler. Thus we have an added mar- 
gin of safety and a wider peaceful use of fission- 
able materials. Denaturing alone cannot make 
operations safe but it is a helpful device when 
used together with the other features of the plan. 

Acheson: The safe activities that the plan 
would leave to national development hold great 
promise. Let me add another word, however, 
about tlie dangerous ones. The authority's dan- 
gerous production plants, stockpiles, and other 
installations will be strategically distributed ge- 
ographically. You can see what would happen, 
then, if a nation bent on atomic war should 
seize the international plants within its borders. 
Such a course would be a clear danger signal to 
the world. Other nations would have atomic 
plants within their own borders so that they would 
not be at a disadvantage. If a nation did seize 
the Authority's installations that were located 
within its territoi'y, it would still take at least a 
year or more to produce bombs. Therefore, the 
plan can jDrovide by this dispersion of installa- 
tions a great measure of security against surprise 
attack. 

LeSueur: We have a notion now, Mr. Secre- 
tary, what the Report is about. What happens to 
it now? Has it been transmitted to Mr. Baruch, 
our American delegate to the Atomic Energj' 
Commission of the United Nations ? 

At'iiEsoN : Yes, it has been sent to all the officers 
of the Government whose duty it is to advise with 
the President in determining our policy. Tiiey 



MAY 5, 1946 



777 



may reject it entirely or the}' may cliange it to 
bring out other methods and conclusions. 

LeSukuk : If this phm for interniitional control 
is accepted in principle as the starting position of 
the United States at the beginning of international 
negotiations, wliat happens then? 

AciiEsoN : Well, there ■would be a great deal to 
do. Remember the plan in the Report merely out- 
lines a general course of action. To put it in final 
foini would take a lot more hard work by a large 
staff. 

LeSueur : If the United States arrived at a 
clear and detailed policy of controlling atomic 
energy along the lines of the Report^ what would 
then be the next step ? 

AcHEsoN : The plan would be rejiorted to the in- 
ternational Commission by our delegate, Mr. Ba- 
rucli. The Commission would debate its merits 
and the merits of any alternate plans advanced by 
other delegates. Out of these deliberations would 
come the Commission's agreed proposal, which 
would then be reported to the General Assembly 
and to the Security Council. Finally the United 
Nations Organization would probably make a rec- 
ommendation that its members enter into a treaty 
or a series of treaties binding them to the adopted 
plan of control. It would be up to each nation 
then to decide whether to ratify formally such 
agreements. I might add that this process would 
take considerable time. 

Over a period of years, as the Authority ma- 
tured, our atomic facilities, our stockpiles and 
the like would pass from national to international 
control. When the Authority was fully in oper- 
ation — and this, of course, is looking a considerable 
period into the future — all of the so-called dan- 
gerous activities, here and elsewhere in the world, 
would be internationalized. 

Bush : In my opinion, and I state it em- 
phatically, the most dangerous aspect of atomic 
fission in the future is the possibility that the 
field may become the subject of national rivalry. 
The striking fact about the plan we have been 
discussing is that it shows the way to avoid these 
rivalries where they would do the most harm and 
it also shows the way to permit nations to press 
forward in the development of constructive uses 
of atomic energy where competition between na- 
tions is not only healthy but desirable. By with- 
drawing dangerous activities from national hands, 
this plan — unlike any mere agreement to outlaw 



the atomic bomb — imposes a minimum strain on 
the good faith of nations. 

Acheson : I believe you've expressed the core of 
the matter right there. Doctor. It reduces the 
temptation to evasion because evasion would be 
pointless and unprofitable. More than that, by 
providing sovereign states with an opportunity to 
collaborate in a live, functioning organization for 
a specific purpose, it will build up mutual confi- 
dence and establish a pattern of cooperation which 
can be extended to the solution of other interna- 
tional problems. 

LeSueur : And that is the central point of the 
Committee's plan, is it not, Mr. Acheson, that it 
provides a practical basis for working out an in- 
ternational agieement ? 

Acheson : Yes, but I would change that phrase 
a little bit to say that it provides a starting point 
for practical discussion. I repeat that the Com- 
mittee's plan is a preliminary sketch of the house 
to be built. The final decisions must be roughed 
out and the finished lines drawn in by the long 
process of national and international discussion. 

Mr. LeSueur, I would like to make a little 
summary that might be useful. The interna- 
tional Authority we have sketched here tonight 
would be able to do these things Dr. Bush has been 
speaking about because the plan recognizes three 
facts : first, that control of the raw materials cap- 
able of chain reaction is essential ; second, that ac- 
tivities dangerous internationally and activities 
safe for national development can be distin- 
guished; and third, that the international agency 
must and can by its own research and its own in- 
spection system lead even the most advanced single 
nation in the knowledge of atomic energy. 



Visit of Peruvian Dentist 

Dr. Jose Santos Herrera, professor of orthodon- 
tia in the school of medicine, University of San 
Marcos, Lima, Peru, and founder of the Peruvian 
Academy of Entomology, is visiting dental clinics 
and dental schools in this country at the invita- 
tion of the Department of State. 

During his three months' visit Dr. Herrera will 
visit Washington, Baltimore, Philadelphia, New 
York, Boston, Ann Arbor, Chicago, San Francisco, 
and Los Angeles. 



778 

Senate Approves Commodity 
Protocols 

I liter- American Coffee Agreement 

The Senate on April 11, l!)-i6 gave its advice and 
consent to the ratification of a protocol ^ to extend 
for one year from Octol)er 1, 1945, with certain 
modifications,, the inter-American coffee agree- 
ment signed in Washington on November 28, 1940,- 
as extended from time to time. 

Regulation of Production and Marketing of Sugar 

The Senate on Ajn-il 17, 194(; gave its advice and 
consent to the ratification of a protocol dated in 
London August 31, 1945 ^ prolonging for a further 
period of one year after August 31, 1945 the in- 
ternational agreement regarding the regulation of 
production and marketing of sugar which was 
signed originally in London May G, 1937,* as 
renewed. 



The Department 



Alfred McCormack Resigns as Special 
Assistant to the Secretary 

[Keleased to the press April 24] 

April 23, 10^6. 
Dear Mr. Secretary: 

The series of Dei^artmental Orders issued yes- 
terday, relating to the intelligence organization 
within the Department, provide for dismembering 
the Office of Research and Intelligence and trans- 
ferring its functions to a group of separate re- 
seai'ch divisions under tlie Political Offices, and 
they contain other organizational provisions that 
I regard as unworkable and unsound. I had 
hoped that the compromise proposal worked out 
by Colonel Tyler Wood, which appeared to meet 

' Senate Executive A, 79tli Cong. 
- Treaty Series 970 and 970. 
■■' Senate Executive B, 79th Cong. 
i Treaty Series 990. 



DEPARTMENT OF STATE BULLETIN 

all points of substance raised by the Political Of- 
fices, would be found acceptable, and I was there- 
fore disappointed to find that the orders as issued 
conformed almost exactly to the so-called "Rus- 
sell Plan," proposed by the Assistant Secretary 
for Administration last December. 

I realize how difficult it has been for the Secre- 
tary to decide an issue on wliich the Department 
has been so divided in opinion, in view of the enor- 
mous burden that the Secretary has been carry- 
ing. I am convinced, however, that while the 
plan adopted will give needed reinforcements to 
the Political Offices, and in that i-espect will be 
beneficial, it will make impossible the establish- 
ment of a real intelligence unit within the De- 
partment ; that it will weaken the Department 
vIs-a-vIs the military components of the National 
Intelligence Authority, who already have the ad- 
vantage of a three to one representation in the 
Central Intelligence Group, as compared with that 
of the State Department; and that it will prevent 
the carrying out of the long-range plans for post- 
war intelligence which you and I had in mind 
when you asked me to come into the Department. 

The Department must go before the Senate Ap- 
propriations Committee within two or three weeks 
to i^resent its case for restoration of the appropria- 
tions cut made by the House of Representatives, 
affecting the intelligence organization. Feeling 
as I do that the organization as now to be set up 
is unsound and not in the best interests of the 
Government, I cannot conscientiously present the 
case to the Senate, and I believe that the best in- 
terests of the Department and the Government 
will be served by my immediate resignation. 

I therefore submit my resignation, with the 
request that you release me at once. It is my hope 
that, by replacing me with a man who has not been 
a party to the internal differences of the jjast six 
months, the Department may contrive in some way 
to salvage the intelligence organization which it 
took over from the Office of Strategic Services. In 
spite of serious losses of personnel and many other 
difficulties that it has encountered since October 1, 
1945, it is still an effective intelligence unit. In 
my opinion, because of demobilization of other 
intelligence units that were functioning in war 
time, it is the best remaining asset of the Govern- 
ment in the foreign intelligence field. 

I am grateful to vou for the efforts that you 



MAY 5, 1946 



779 



have made to work out an organizational arrange- 
ment that would meet the views of all parties con- 
cerned and for the personal support and good ad- 
vice that you have given me since I have been in 
the DeiDartment. 

Witli all good wishes, 
Sincerely yours, 

Alfred McCokmack 

The Honorable 
Dean Aciieson 

Acting Secretary of State. 

April 23, 191fi. 
Dear Colonel McCoRsrAcic : 

I have your letter of April 23 in which you 
tender your resignation as Special Assistant to the 
SecretaiT for Research and Intelligence. I under- 
stand and respect the reasons that led you to this 
decision; and much as I regret that it falls to me 
to receive your letter, I accept your resignation. I 
know that the Secretary would wish me to express 
on his behalf his appreciation of your devoted 
service to the Department over these past months, 
both in organizing within the Department the in- 
telligence work and in representing the Depart- 
ment in establishing, in accordance with the Presi- 
dent's direction, the Department's participation in 
the work of the National Intelligence Authority. 

May I add my own word. I know with what 
reluctance you gave up last fall your intention to 
return to private life in order to do this work in 
the Department. I know the untiring energy 
which you devoted to it. I know the effort which 
you have put into surmounting the difficulties 
which were inherent in the task. All of us who 
have worked with you are deeply grateful. When 
3'ou joined us, you and I had only a slight ac- 
quaintance ; I knew you chiefly through your work. 
As you leave, you take with you my increased 
admiration for that and a deep jiersonal regard. 
I hope that the future holds opportunities for us 
to work together again and to happier outcomes. 
Sincerely yours. 

Dean Acheson 
The Honorable 

Alfred McCormack 
S fecial Assistant for 

Research and Intelligence, 
Department of State. 

^ Use of Original Keeords of the Department of State, 
effective JIar. 15, 1946. 



Depa 



rtmental Regulation' 420.1 



Use of Records by Persons Who Are not Officials of 
THE United States Go^TaiNMENT. 
A The confidential or unpublished files and records 
of the Department prior to December 31, 1932 (witli the 
exception of the Department's records concerning the 
Paris Peace Conference of 1919 and related subjects), or 
such subsequent date as may be fixed by the Department, 
may be made available for consultation to persons who 
are not officials of the United States Government, subject 
to the following conditions : 

1 Files which are in current use in the Depart- 
ment or which cannot be made public without the dis- 
closure of confidences reposed in the Department, or 
without adversely affecting the public interest will not 
be made available to inquirers. 

2 Papers received by the Department from a for- 
eign government which have not been released for 
publication by that government will not be made avail- 
able to inquirers without the consent of the government 
concerned. If there is reason to believe that a foreign 
government may be willing to permit the use of the 
papers in question under certain conditions, the per- 
mission may, at the discretion of the appropriate 
officials of the Department, be requested. 

o If such permission is requested, the expenses 
of communicating with the foreign government (cost 
of telegrams, postage, and so forth) will be met by the 
person desiring to consult the papers. 

3 Permission to consult the records of the Depart- 
ment througli the date fixed by the Department may be 
granted, subject to the limitations set forth in this regu- 
lation to such persons as lawyers, publicists, historians, 
instructors, and professors in accredited colleges and 
universities; and holders of the doctor's degree (or its 
equivalent) in foreign relations or allied subjects from 
such colleges and universities provided that : 

a The applicants are authorities of recognized 
standing in the field to which the records relate, and 
that they have an important and definite use for the 
information desired. 

6 Requests for permission to consult material 
are definitely limited in scope and are confined to 
specilie subjects or particular papers. Owing to a 
lack of personnel, the Department is not in a position 
to assemble large quantities of papere or extensive 
files for consultation by persons not officials of the 
Government. 

4 An application from an alien to consult the rec- 
ords of the Department under this regulation will be 
considered only if such an application is accompanied 
by a letter from the head of the embassy or legation at 
Washington of the country of which the alien is a citizen, 
subject, or national. Such a letter will show that the 
applicant is favorably known to the appropriate em- 
bassy or legation, and that the mission is familiar with 
the purpose of the applicant's work. 

5 All applications to consult the original records of 
the Department of dates "prior to the one fixed by the 
Department will be referred to the Chief of the Division 
of Research and Publication (RP). 



780 

Publications 

of the DEPARTMENT OF STATE 

For sale by the Superintendent of Doewnents, Government 
Printing Offlee, Washington 25. D. C. Address requests 
direct to the Suiicrintendent of Documents, except in ilie 
case of free puWeations, u-hieh ntay he obtained from 
the Department of State. 

Anglo-American Committee of Inquiry. Agree- 
ment Between tlie United States of America and 
the United Kingdom of Great Britain and North- 
ern Irehxnd — Effected by exchange of notes signed 
at Washington December 10, 1945. Executive 
Agreement Series 491. Pub. 2488. 2 pp. 5^. 

Agreement for the estalilisliinent of a joint committee 
of six United States nationals and six United King- 
dom nationals to examine and report on tlie ix>sition 
of Jews in certain conntries of Enrope and in Pales- 
tine. 

Prc.secution and Punishment of the Major War 
Criminals of the European Axis. Agreement 
and Protocol Between the United States of Amer- 
ica and the Frencli Republic, the United Kingdom 
of Great Britain and Northern Ireland, and the 
Union of Soviet Socialist Republics— Agreement 
signed at London August 8, 1945, effective August 
8, 1945; protocol signed at Berlin October 6, 1945. 
Executive Agreement Series 472. Pub. 24fil. 48 
pp. 150. 

Agreement for the establislmient of an international 
military tribunal for the trial of war criminals, with 
an annexed charter setting forth tlie constitution, 
jurisdiction, and functions of the international mili- 
tary tribunal. 

Mutual Aid in French North and West Africa. 

Agreement Between the United States of America 
and the French Committee of National Libera- 
tion — Signed at Algiers September 25, 1943 ; effec- 
tive September 25, 1943. Executive Agreement 
Series 483. Pub. 2465. 8 pp. H- 

Agreement regardiiig reciprocal aid with respect to 
military and civilian supplies and services in French 
North and West Africa. 

Mutual Aid. Agreements Between the United 
States of America and Belgium, including : Agree- 
ment Relating to Supplies and Services, signed at 
Washington April 1", 1945, effective April 17, 
1945; Memorandum of Interpretation; Exchanges 



DEPARTMENT OF STATE BULLETIN 

of Notes; and Agreement Relating to Principles 
Apiilying to tlie Provision of Aid to the Armed 
Forces of the United States. Executive Agree- 
ment Series 481. Pub. 2480. 18 pp. H- 

Text of agreements with a memorandum of interpreta- 
tion and notes on the principles applying to aid for 
defense under the Lend-Lease Act. 

International Civil Aviation. Interim Agreement 
Between the United States of America and Other 
Powers — Opened for signature at Chicago Decem- 
ber 7, 1944; signed for the United States of 
America December 7, 1944; accepted by the United 
States of America February 8, 1945, with an under- 
staiuling ; effective June 6, 1945. Executive Agree- 
ment Series 469. Pub. 2460. 21 pp. 50. 

Agreement establishing the Provisional International 
Civil .\viation Organization (PICAO) for the purpose 
of collaboration in the field of international civil 
aviation. 

Sockeye Salmon Fisheries. Agreement Between 
the United States of America and Canada — Ef- 
fected by exchange of notes signed at Washington 
July 21 and August 5, 1944. Executive Agree- 
ment Series 479. Pub. 2450. 14 pp. 50. 

Agreement on remedial measures for overcoming ob- 
structions to the ascent of salmon in Hell's Gate 
Canyon and for investigating and overcoming obstruc- 
tions to salmon elsewhere in the Fraser River water- 
shed. 

The Proclaimed List of Certain Blocked Na- 
tionals. Cumulative Supplement No. 2, March 
14, 194C, containing additions, amendments, and 
deletions made since Revision X of December 20, 

1945. Pub. 2486. 14 pp. Free. 

Diplomatic List, April 1946. Pub. 2509. 145 pp. 
Subscription, $2 a year; single copy 200. 

Monthly list of foreign diplomatic representatives in 
Washington, with their addresses, prepared by the 
Division of Protocol of the Department of State. 

Recent Publications of the Department of State, 

1946. Pub. 2510. Free. 

Annotated list of Department publications on current 
developments In foreign relations. 

A cumulative list of tlie publications of the De- 
partment of State, from Oct. 1, 1929 to Jan. 1, 
10.1^6 {put. 2Ji6^), mat/ be obtained from the De- 
partment of State. 

PUBLISHED WITH APPROVAL OF DIRECTOR OF BUREAU OF THE BUDGET 
U. S. GOVERHUEHT PRINTING OFFICE; 1946 



THE DEPARTMENT OF STATE 




VOL. XIV, NO. 358 



MAY 12, 1946 



Meeting- of the Security Council: Proposals Discussed 
for Drafting Resolution on Spain . . . page 788 

Non-Military Activities in Japan and Korea . page 80.5 



Anglo-American Committee of Inciuiry 

EXCERPTS FROM REPORT .... 



page 783 



Council of Foreign Ministers: Draft Treaty on Disarm- 
ament and Demilitarization of Germany . page 815 



^^^'^ o*. 



For complete contents 
see inside cover 




"axes o^ 



THE DEPARTMEINT OF STATE 



BULLETIN 



VoL.XIV»No.358 




Publication 2526 



May 12, 1946 



For eale by the Superintendent of Documenie 

U. S. Government Printing Office 

Washington 25, D. C. 

ScBscniPTiON: 

52 iBfiuee, $3.50; single copy. 10 cents 

Special offer: 13 weeks for $1.00 
(renewable only on yearly basis) 



The Department of Slate BVLLETIN, 
a loeekly ptiblieation compiled and 
edited in the Division of Research and 
Publication, Office of Public Affairs, 
provides the public and interested 
agencies of the Government icith 
information on developments in the 
field of foreign relations anil on the 
work of the Department of State and 
the Foteign Service. The BULLETIN 
includes press releases on foreign 
policy issued by the White House and 
the Department, and statements and 
addresses made by the President and 
by the Secretary of State and other 
officers of the Department, as well as 
special articles on various phases of 
international affairs and thefunctions 
of the Department . Information con- 
cerning treaties and international 
agreements toivhich the United States 
is or may become a parly and treaties 
of general international interest is 
included. 

Publications of the Department, cu- 
mulative lists of which are published 
at the end of each quarter, as well as 
legislative materialin thefield of inter- 
national relations, are listed currently. 



4,, I, lUflRtNTENDENT OF DOCUMENT 

jUN 19 1946 



Contents 



Page 
Report of the Anglo-American Committee of Inquiry: 

Statement by the President 783 

Transmittal of the Report to the President 783 

Letter From the President to Judge Hutcheson 783 

Excerpts P'rom the Report 784 

Non-Military Activities in Japan and Korea: 

Economic Activities in Japan 805 

Social Activities in Japan 807 

Legal and War Crimes 808 

Discussions on Korean Cultural and Educational Problems . 812 

The United Nations 

Meeting of the Security Council. Proposals Discussed for 

Drafting Resolution on Spain 788 

Memorandum on the Objectives of the Economic and Em- 
ployment Commission 7i)7 

International Organizations and Conferences 

Calendar of Meetings 813 

Activities and Developments: 

U.S. Delegation to the First Meeting of the Metal Trades 

Committee of ILO 813 

Announcement on Positions in FAO Secretariat 814 

Opening Meetings of the Commissions of the Economic and 

Social Council 814 

The Record of the Week 

*Draft Treaty on the Disarmament and Demilitarization of 

Germany 815 

Italian Government To Restore Projjerty of United Nations 

Nationals 817 

Myron C. Taylor To Return to Italy as President's Personal 

Representative. Statement bj- the President 818 

*Credit Arrangement With Austria 818 

Discussions Regarding Foreign Purchasing Missions .... 819 

Addresses and Broadcasts of the Week 819 

Foreign Liquidation Commission Report 820 

Discussions on World Trade Proposed 820 

Clearance Processes for Sale of Classified Articles 821 

Ambassador Pauley To Study Economic Problems in the Far 

East 821 

Program for Philippine Re'abilitation and Recovery. State- 
ment by the President 822 

American Vessels To Transport Food to Foreign Countries. . 822 
♦Convention With Canada for the Development, Protection, and 
Conservation of the Fisheries of the Great Lakes: 

Message From the President 823 

Report of the Secretary of State 823 

Prime Minister of Australia To Visit in U.S 825 

Consideration of Japanese Reparations 826 

The Department: 

Appointment of William L. Langer as Special A.ssistant to tl e 

Secretary 826 

Appointment of Officers 826 

Intelligence Objectives 826 

The Foreign Service: 

Confirmations 828 

Diplomatic and Consular Offices 828 

*Treaty iDformation. 



Report of the Anglo-American Committee 
of Inquiry 



STATEMENT BY THE PRESIDENT 

I am very happy that the request wliich I made 
for the immediate admission of 100,000 Jews into 
Palestine has been unanimously endorsed by the 
Anglo-American Committee of Inquiry. The 
ti-ansference of these imfortunate people should 
now be accomplislied with the greatest dispatcli. 
The protection and safeguarding of the Holy 
Places in Palestine sacred to Moslem, Christian, 
and Jew is adequately jirovided in the rejjort. 
One of the significant features in tlie report is that 
it aims to insure comj^lete protection to the Arab 
population of Palestine by guaranteeing tlieir civil 
and religious rights, and by recommending meas- 
ures for constant improvement in tlieir cultural, 
educational, and economic position. 

I am also pleased that the Committee recom- 
mends in effect the abrogation of the AVhite Paper 
of 1939 including existing restrictions on immigi-a- 
tion and land accjuisition to permit the further 
development of the Jewish National Home. It is 
also gratifying that the report envisages the carry- 
ing out of large-scale economic development proj- 
ects in Palestine which would facilitate further 
immigration and be of benefit to the entire popula- 
tion. 

The text of the report and the President's statement were 
released to the press by the White House on Apr. 30, 1946. 

Tlie report, as submitted to the Governments of the 
United States and the United Kingdom, wa.s signed at 
Lausanne, Switzerland, on Apr. 20, 1046. The following 
signatures were attached to the report : Joseph C. Hutch- 
eson, American Chairman ; John E. Singleton, British 
Chairman; Frank Aydelotte (U.S.), EYank W. Buxton 
(U.S.), W. F. Crick (U.K.), K. H. S. Grossman (U.K.), 
Bartley C. Crum (U.S.), Frederick Leggett (U.K.), R. E. 
Manningham-BuUer (U.K.), James G. McDonald (U.S.), 
Morrison (U.K.), William Phillips (U.S.), Leslie L. Rood, 
American Secretary, Evan M. WIIsdu, American Secretary, 
H. G. Vincent, British Secretary, and H. Beeley, British 
Secretary. 



In addition to these immediate objectives the 
report deals with many other questions of long- 
range political policies and questions of interna- 
tional lav? which require careful study and which 
I will take under advisement. 

TRANSMITTAL OF THE REPORT TO THE 
PRESIDENT 

Lausanne, Switzerland, 

April 20, 1946. 
The President, 
The White House, 
Washington, D. C. 
My Dear Mr. President : 

We have the honor to transmit herewith the 
report of the Anglo-American Committee of In- 
quiry. 

Very respectfully yours, 

Joseph C. Hutcheson, 

American Chairman. 

Frank Aydelotte 
Frank W. Buxton 
Bartley C. Crum 
James G. McDonald 
William Phillips 

LETTER FROM THE PRESIDENT TO 
JUDGE HUTCHESON 

Letter addressed hy the President to Joseph C. 
Hutcheson, American Chairman, Anglo-American 

Committee of Inqidry, on April 25 

My Dear Judge Hutcheson : 

I have received the report of the Anglo-American 
Committee of Inquiry on Palestine which you and 
the other American members of that Committee 
transmitted to me under cover of your letter of 
April 20, 1946. 

783 



784 



DEPARTMEm' OF STATE BULLETIN 



I wish to take this opijortunity to thank you and 
your American colleagues for the untiring eflPorts 
which you have exerted in preparing the report. 
In performing the task which I asked them to un- 
dertake, the members of the Committee made con- 
siderable personal sacrifices and liave given un- 
stintedly of their time and energy. 

Sincerely yours, 

Haery S. Truman. 

EXCERPTS FROM THE REPORT 

Excerpts from the text of the report of the Anglo- 
American Committee of Inquiry, as submitted to 
the Governments of the United States and the 
United Kingdom 

Preface 

We were appointed by the Governments of the 
United States and of the United Kingdom, as a 
joint body of American and British membership, 
with the following Terms of Reference : 

1. To examine political, economic and social con- 
ditions in Palestine as they bear upon the j)roblem 
of Jewish immigration and settlement therein and 
the well-being of the peoples now living therein. 

2. To examine the position of the Jews in those 
countries in Europe wliere they liave been the vic- 
tims of Nazi and Fascist persecution, and the prac- 
tical measures taken or contemplated to be taken 
in those countries to enable them to live free from 
discrimination and oppression and to make esti- 
mates of those who wish or will be impelled by their 
conditions to migrate to Palestine or other coun- 
tries outside Europe. 

3. To hear the views of competent witnesses and 
to consult representative Arabs and Jews on the 
problems of Palestine as such problems are affected 
by conditions subject to examination under para- 
graphs 1 and 2 above and by other relevant facts 
and circumstances, and to make recommendations 
to His Majesty's Government and the Government 
of the United States for ad interim handling of 
tliese problems as well as for their permanent solu- 
tion. 

4. To make such other recommendations to His 
Majesty's Government and the Government of the 
United States as may be necessary to meet the im- 

' In the report eaih (if these recoiunieiulatiims is fol- 
lowed by comments. 



mediate needs arising from conditions subject to 
examination under paragraph 2 above, by remedial 
action in the European countries in question or by 
the provision of facilities for emigration to and 
settlement in countries outside Europe. 

The Governments urged upon us the need for the 
utmost expedition in dealing with the subjects com- 
mitted to us for investigation, and requested to be 
furnished with our Report within one hundred and 
twenty days of the ince^jtion of our Inquiry. 

We assembled in Washington on Friday, 4th 
January, 1946 and began our public sessions on the 
following Monday. We sailed from the United 
States on 18th January and resumed our public 
sessions in London on 25th January. We left for 
Europe on 4tli and 5th February, and, working in 
Subcommittees, proceeded to our investigations in 
Germany, Poland, Czechoslovakia, Austria, Italy 
and Greece. On 28th Februar}^ we flew to Cairo 
and, after sessions there, reached Jerusalem on tith 
March. In Palestine, our sessions were inter- 
spersed with personal visits to different parts of the 
country, during which we sought to acquaint our- 
selves at first hand with its various characteristics 
and the ways of life of its inhabitants. Subcom- 
mittees visited the capitals of Syria, Lebanon, Iraq, 
Saudi-Arabia and Trans-Jordan to liear the views 
of the Arab Governments and representatives of 
bodies concerned with the subjects before us. We 
left Palestine on 28th March and have concluded 
our deliberations in Switzerland. The detailed 
itinerary is shown in Appendix I. 

We now submit the following Report. 

Chapter I 

Recommendations ^ 

The European ProMem. 

Recommendation No. 1. We liave to report 
that such information as we received about coun- 
tries other than Palestine gave no hope of .sub- 
stantial assistance in finding homes for Jews wish- 
ing or impelled to leave Europe. 

But Palestine alone cannot meet the emigration 
needs of the Jewish victims of Nazi and Fascist 
persecution; the whole world shares responsibility 
,for them and indeed for the resettlement of all 
"disjtlaced persons". 

We therefore recoimnend that our Govermnents 
together, and in association with other countries, 
shoidd endeavor immediatelv to find new homes 



MAY 12, 1946 



785 



lor all such "displaced persons", irrespective of 
creed or nationality, whose ties with their former 
communities liave been irreparably brolcen. 

Though emigration will solve tlie problems of 
some victims of persecution, the overwhelming 
majority, including a considerable number of 
Jews, will continue to live in Europe. We rec- 
ommend therefore tliat onr Governments en- 
deavor to secm'e that immediate effect is given to 
the provision of the United Nations Charter call- 
ing for ''universal respect for, and observance of, 
hmnan rights and fundamental freedoms for all 
without distinction as to race, sex, language, or 
religion". 

Refugee Irmnigration Into Palestine. 

Recommendation No. 2. We recommend (a) 
that 100,000 certificates be authorized immediately 
for the admission into Palestine of Jews who have 
been the victims of Nazi and Fascist persecution; 
(b) that the.se certificates be awarded as far as 
possible in 1946 and that actual immigration be 
pushed forward as rapidly as conditions will 
permit. 

Prineiplex of (forrnimmf: no Arab, no Jewish 
State. 
Recommendation No. 3. In order to dispose, 
once and for all, of the exclusive claims of Jews 
and Arabs to Palestine, we regard it as essential 
that a clear statement of the following principles 
should be made : 

I. That Jew shall not dominate Arab and Arab 
shall not dominate Jew in Palestine. TI. That 
Palestine shall be neither a Jewish state nor an 
Arab state. III. That the form of go^'ernment 
ultimately to be established, shall, under interna- 
tional guarantees, fully protect and preserve the 
intei'ests in the Ho]_y Land of Christendom and 
of the Moslem and Jewish faiths. 

Thus Palestine nnist ultimately become a state 
which guards the rights and interests of IVIoslems, 
Jews and Christians alike; and accords to the 
inhabitants, as a whole, the fullest measure of self- 
government, consistent with the three paramount 
principles set forth above. 

Mandate and United Nations Trusteeship. 

Recommendation No. 4. We have i-eached the 
conclusion that the hostility between Jews and 
Arabs and, in particular, the determination of each 
to achieve domination, if necessary by violence, 



make it almost certain that, now and for some time 
to come, any attempt to establish either an inde- 
pendent Palestinian state or independent Pales- 
tinian states would result in civil strife such as 
might threaten the peace of the world. We there- 
fore recommend that, imtil this hostility dis- 
appears, the government of Palestine be continued 
as at present under mandate pending the execu- 
tion of a trusteeship agreement under the United 
Nations. 

EquaUty of Standards. 

Recommendation No. 5. Looking towards a 
form of ultimate self-government, consistent with 
the three principles laid down in recommendation 
No. 3, we recommend that the mandatory or trustee 
should proclaim the principle that Arab economic, 
educational and political advancement in Pales- 
tine is of equal importance with that of the Jews; 
and should at once prepare measures designed to 
bridge the gap which now exists and raise the 
Arab standard of living to that of the Jews; and 
so bring the two peoj^les to a full appreciation of 
their common interest and common destiny in the 
land where both belong. 

Future Immigration Piilicij. 

Recommendation No. (>. We recommend tliat 
jiending the early reference to tlie United Nations 
and the execution of a ti'usteeship agreement, the 
mandatory should administer Palestine according 
to the mandate which declares with regard to 
immigration that ''The administration of Pales- 
tine, while ensuring that the rights and position of 
other sections of the population are not prejudiced, 
shall facilitate Jewish innnigration under suitable 
conditions." 

Land Policy. 

Recommendation No. 7. (a) We recommend 
that the land transfers regulations of 1940 be 
rescinded and rei:)laced by regulations based on a 
policy of freedom in tlie sale, lease or use of land, 
iii'espective of race, community or creed; and 
providing adequate protection for the interests of 
small owners and tenant cultivators, (b) We 
further recommend that steps be taken to render 
nugatory and to prohibit provisions in convey- 
ances, leases and agreements relating to land which 
stipulate that only members of one race, community 
or ci-eed may be employed on or about or in con- 
nection therewith, (c) We reconnnend that the 



786 



DEPARTMENT OF STATE BULLETIN 



Government should exercise such close supervision 
over the Holy Places and localities such as the S?a 
of Galilee and its vicinity as will protect them from 
desecration and from uses which offend the con- 
science of religious people; and that such laws as 
are required for this purpose be enacted forthwith. 

Economic Development. 

Recommendation No. 8. Various plans for 
large-scale agricultural and industrial develop- 
ment in Palestine have been presented for our con- 
sideration; these projects, if successfully carried 
into effect, could not only greatly enlarge the capac- 
ity of the country to support an increasing popula- 
tion, but also rai.se the living standards of Jew and 
Arab alike. 

We are not in a position to assess the soundness 
of these specific plans; but we cannot state too 
strongly that, however technically feasible they 
may be, they will fail unless there is peace in Pales- 
tine. Moreover their full success requires the will- 
ing cooperation of adjacent Arab states, since they 
are not merely Palestinian projects. We recom- 
mend thei-efore that the examination, discussion 
and execution of these plans be conducted, from the 
start and throughout, in full consultation and 
cooperation not only with the Jewish agency but 
also with the govermnents of the neighboring Arab 
states directly affected. 

Education. 

Recommendation No. 9. We recommend that, 
in the interests of the conciliation of the two peo- 
ples and of general improvement of the Arab 
standard of living, the educational system of both 
Jews and Arabs be reformed including the intro- 
duction of compulsory education within a reason- 
able time. 

The Need for Peace in Palestine. 

Recommendation No. 10. We recommend that, 
if this report is adopted, it should be made clear 
beyond all doubt to both Jews and Arabs that any 
attempt from either side, by threats of violence, 
by terrorism, or by the organization or use of 
illegal armies to prevent its execution, will be 
resolutely su ppressed. 

Furthermore, we express the view that the Jew- 
ish agency should at once resume active coopera- 
tion with the mandatory in the supj^ression of 
terrorism and of illegal immigration, and in the 
maintenance of that law and order throujihout 



Palestine which is essential for the good of all, 
including the new inunigrants. 

[Here follow Chapters II through X under the headings 
of: "The Position of the Jews in Europe" ; "The Political 
Situation in Palestine" ; "Geograph.v and Economics" ; 
"The Jewish Attitude" ; "Tlie Arab Attitude" ; "Christian 
Interests in Palestine" : "Jews, Arabs and Government" ; 
"Public Security"; and "General".] 

Appendix I 



1946 

Jan. 4-17 
Jan. 23-Feb. 
Feb. 5-15 



Feb. 5-22 



Feb. 5-17 



Itinerary oj Committee 



Feb. 7-13 



Feb. 8-1 1 



Feb. 17-25 
Feb. 19-22 



Feb. 25-26 
Feb. 25-27 



Feb. 28-I\Iar. 
Mar. 6-28 
Mar. 15-20 



Mar. 16-21 



Mar. 23-24 



Washington 
London 
American Zone of 

Germany 
Czechoslovakia 

Paris 

French Zones of 

Germany and 

Austria 
Berlin 



Poland 



British Zone of 
Germany 

Vienna 

American Zone of 
Austria 



British Zone of 

Austria 
Italy 



5 Cairo 
Palestine 
Damascus; Beirut 



Baghdad; Riyadh 



Amman 



Full Committee 
Full Committee 
Mr. Crum 



Sir Frederick 

gett 
Mr. Phillips 
Mr. McDonald 



Leg- 



Mar. 29-Apr. 20 Lausanne 



Judge Hutcheson 

Sir John Singleton 

Lord Morrison 

Mr. Buxton 

Mr. Manningham- 
Buller 

Mr. Crick 

Mr. Buxton 

Mr. Manningham- 
BuUer 

Mr. Crick 

Judge Hutcheson 

Sir John Singleton 

Ijord Morrison 

Full Committee 

Mr. Buxton 

Mr. Manningham- 
Buller 

Mr. Crick 

Mr. Crum 

Mr. Grossman 

Sir John Singleton 

Mr. Phillips 

Mr. McDonald 

Sir Frederick Leg- 
gett 

Full Committee 

Full Committee 

Judge Hutcheson 

Lord Morrison 

Mr. McDonald 

Sir John Singleton 

Mr. Buxton 

Mr. Manningham- 
BuUer 

Lord Morrison 

Mr. Phillips 

Sir Frederick Leg- 
get t 

Full Committee 



MAY 12, 1946 



787 



Appendix III 
Estimated Jewish Population in Europe 



TABLE A 



1939 

Country Total 

Albania • . . . . 200 

Austria » 60, 000 

Belgium 90, 000 

Bulgaria 50, 000 

Czechoslovakia 1=315,000 

Denmark 7, 000 

Finland 2, 000 

France 320, 000 

Germany ''215,000 

Greece 75, 000 

Holland 150,000 

Hungary ' 400, 000 

Italy 50, 000 

Luxembourg 3, 500 

Norway 2, 000 

Poland 3,351,000 

Rumania t 850, 000 

Yugoslavia 75, 000 



Total 
300 
15,000 

33, 000 

45, 000 
■^ 65, 000 

5, 500 

1, 800 

180,000 

94, 000 

10, 000 

30, 000 

' 200, 000 

46, 000 

500 

1,000 

^ 80, 000 

' 335. 000 

11,000 



Refugee and 
Native Displaced Nationality of Refugee and Displaced 

50 250 Mainly Austrian and Yugoslav 

7,000 8,000 75% Polish; 11% Hungarian; 6% Czech 

and 6% Rumanian 
25, 000 8, 000 Mainly German, Austrian and Polish 

45,000 

° 60, 000 5, 000 Mainly Polish ; some Hungarian 

5,500 

1,800 

160, 000 20, 000 Mainly German, Austrian and Polish 
20, 000 74, 000 85 % Polish ; 5 % Hungarian ; 4 % Lithua- 
nian; 3% Rumanian 

10,000 

24, 000 6, 000 Over 80% German and Austrian 

'200,000 

30, 000 16, 000 75% Polish; 7% Rumanian; 5% Czech; 
5% Hungarian 

500 

750 250 Mostly German 

^80,000 

- 320, 000 15, 000 Mainly Polish 
11,000 



Total (Tal)le A). 



6, 015, 700 1, 153, 100 1, 000, 600 152, 500 



1939 

Country Total" 

United Kingdom 340, 000 

Portugal 3, 500 

Soviet Union '3, 550, 000 

Spain 4, 500 

Sweden 7, 500 

Switzerland 25, 000 





TABLE B 


« 


Total 
350, 000 


Native 

300, 000 


Refugee and 
Displaced 

50, 000 


4,000 


3, 500 


500 


2, 665, 000 


2, 500, 000 


165, 000 


4, 500 


4,000 


500 


19, 500 


7, 500 


12,000 


28, 500 


18, 000 


10, 500 



Total (Table B). . 3,930,500 3,071,500 2,833,000 238,500 
Total (Table A). . 6,015,700 1,153,100 1,000,600 152,500 



Nationality of Refugee and Displaced 
90% German and Austrian 
Various nationalities 
150,000 Polish; 15.000 Hungarian 
Various nationalities 
Mainly Polish, German and Austrian 
Mainly Polish, German and Austrian 



Total for Europe. 9, 946, 200 4, 224, 600 3, 833, 000 391, 000 



*The figures in this column include refugee as well as native Jews. 

« In 1937, the Jewish population of Austria was approximately 192,000. By 
the outbreak of the war, the emigration of over 100,000 together with persecu- 
tion and deportations had reduced the number to some 60.000. 

b The figure refers to the Jewish population within pre-Munich bound- 
aries, when the Jews of Czechoslovakia numbered about 360,000. By 
September 1939 due mainly to emigration, the number had fallen to approx- 
imately 315.000. 

c Does not include such Jewish survivors as have remained in the 
Carpatho-Ukrame, this territory now in the Soviet Union. 

d According to the census of June 1933, the Jewish population of Germany 
totaled 499.682. By September 1939 the emigration of something over 200,000, 
persecution, and natural population decline had reduced the number to 
around 215,000. 



« The figure refers to the Jewish population within pre-Munich boundaries. 

f These figures do not include an estimated 15,000 prisoners of war now in 
the Soviet Union who are expected ultimately to be repatriated. 

e These figures do not include an estimated 150.000 Polish Tews in the Soviet 
Union, to whom the option of repatriation has been made available. 

h Inclusive of the .Jewish population of Bessarabia and Bukovina, which are 
now in the Soviet Union. 

' Does not include an estimated 40,000-45,000 survivors in Bessarabia and 
Bukovina. The pre-war Jewish population within present Rumanian 
boundaries was approximately 520,000. Included in the 1946 figure of 335,000 
are 40,000 formerly residing in the two ceded provinces. 

J Includes the 1939 Jewish population of Estonia, Latvia, and Lithuania, 
estimated at about 250,000. 



The United Nations 



Meeting of the Security Council 

PROPOSALS DISCUSSED FOR DRAFTING RESOLUTION ON SPAIN 

Excerpts from Remarks at Thirty-seventh Meeting - 



Colonel Hodgson (Australia) : Mr. President, 
I would like to thank you and other members of 
the Council for your assistance and coojieration 
in endeavoring to find a resolution which woukl be 
generally acceptable. I have distributed the re- 
sults of those suggestions, and I will read it as 
it now stands : 

'"The attention of the Security Council liaving 
been drawn to the situation in Spain by a Member 
of the United Nations acting in accordance with 
article 35 of the Cliarter, and the Security Council 
having been asked to declare that this situation has 
led to international friction and endangers inter- 
national peace and security, the Security Council 
hereby resolves: 

"To make further studies in order to determine 
whether such a situation does exist. 

"To this end. the Security Council appoints a 
subcomniittee of five of its members and instructs 
this subconnnittee to examine the statements made 
before the Security Council concerning Spain, to 
call for further statements, documents and evi- 
dence and to conduct such inquiries as it may deem 
necessary in order that the subcommittee may re- 
port to the Security Council on 31 May 10-16, on 
the results of such studies and especially the facts 
bearing on the following questions : 

"(1) Is the existence of the Franco regime a 
matter of international concern and not one essen- 
tially within the jurisdiction of Spain? 

"(2) Is the situation in Spain one which might 
lead to international friction or give I'ise to a dis- 
pute? 

''(3) If the answer to question (2) is 'Yes', is 
the continuance of the situation likely to endanger 

' In session at Hunter C'olle;,'?, Afw York, N.Y., since 
Mar. 25, 1946. 
' Held on Apr. LTi. lii4G. 

788 



the maintenance of international peace and 
security?" 

Now, the main points to be emphasized aie 
these: first of all, I have cut out the idea of a 
formal investigation under article 3-1 so as to 
enable the proposed body to be brought in under 
article 29 as a subsidiaiy organ; and I call it a 
subcommittee instead of a committee ; and the im- 
portant alterations are that I am deleting the pas- 
sage : "to call for further written statements and 
documentary evidence from Members of the 
United Nations and from the Franco regime", so 
that the text reads : "to call for fuither statements, 
documents and evidence and conduct such inquiries 
as it may deem necessary". 

Then, to meet the point that probably 17 May 
was too early — tliat date was originally selected 
arbitrarily — the date has been clianged to 31 May, 
that is, a montli from the presentation of the 
amendment. Some of the delegates may desire, 
instead of fixing a date, to say "as early as prac- 
ticable." 

The last point is that it was felt by some dele- 
gates that the subcommittee should not and could 
not itself make a finding on those three questions, 
or make recommendations on these three ques- 
tions, but should present the facts so that the 
Council itself could decide and make its own deci- 
sion on the facts as ascertained and presented by 
the subcommittee. 

I take it that there may be other suggestions 
and other proposals which will come out in the 
course of the debate. 

Mr. Stettinius (United States of America) : 
My Government has been giving very careful 
study to what has been said during the first meet- 
ings of the Security Council on the situation in 
Spain. We have been closely following the entire 



MAY 12, 1946 



789 



Spanish [noblem and have accumulated informa- 
tion based upon first-hand observations of our 
representatives in Spain. Our information on 
manj' of the specific points which have been 
brought forward by the Polisli Delegate is quite 
different from his and does not sui^port many of 
his conclusions. 

On the basis of our own information and the 
information so far developed here in the Secui'ity 
Council, we cannot agree with those of his con- 
clusions which seem to suggest that there is a situ- 
ation in Spain requiring action under articles 39 
and 41 of the Charter. 

Our disagreement with many of the facts and 
the conclusions already submitted does not mean 
that our frequently e.xpressed views on the Franco 
regime have changed in any way. It is clear that 
there is a wide divergence here as to the facts them- 
selves and as to the interpretation which should 
reasonably be given to these facts. It is essential 
that actions of the Security Council in such mat- 
ters as this should be based on factual information 
which has first been examined in detail and, so far 
as possible, agreed upon by the Security Council. 

For these reasons my Government believes 
that the Council would not, on the basis of the 
information now before it, be warranted in adopt- 
ing the Polish resolution in its original form. 
While I have just Jieard the revised pro^Dosal of 
the Delegate for Australia, I am happy to say that 
sucli a proposal would be agreeable and satisfac- 
tory to the United States of America, possibly 
with minor modifications which he himself has 
just suggested. 

We believe that there should be a committee of 
the Council charged with the responsibility of ob- 
taining facts relating to the situation in Spain so 
that the Council ma}\ on a sound basis, meet its 
obligation to determine whether or not continu- 
ance of the situation is truly likely to endanger the 
maintenance of international ])eace and security. 

My Go\ei'nnient hopes that the committee will 
give i)articular attention to the facts as to the 
presence of Nazis in Spain. The possibility of 
their representing a potential threat has been em- 
phasized here in our discussions. 

Before the end of the war and since, we, the 
United States Government, have been studying 
and putting into effect with other interested gov- 
ernments plans for meeting this very vital and 
important problem. Through the diplomatic rep- 



resentatives of the interested governments in 
Madrid, we have been able to persuade the Span- 
ish Goverinnent to aid in repatriating those ob- 
no.xious Germans. With the cooperation of the 
French we were able to repatriate to Germany 
by rail, early in February of this year, nearly 
l,;ii»<t Germans who had served as guards on the 
French-Spanish border and who went to Spain 
after the liberation of France. In addition to 
these, we have given the Spanish Government the 
names of about 500 obnoxious Nazis. They pro- 
duced of these 500 only approximately 150. 

There is now a growing reluctance on the part 
of the Spanish Government to cooperate in this 
prograna. For example, the British authorities 
arranged for a ship to call at a Spanish port early 
in March of this year, which was on its way bact 
to Germany and had places for approximately 500 
additional passengers. The Spanish police pro- 
duced only a small fraction of the persons who 
had been named by us to the Foreign Office for 
remo\al on that ship. 

We estimate that, including the persons so 
named to the Spanish Government who have not 
yet been deported, there remain about 2,200 such 
Germans of all categories. We propose to con- 
tinue our efforts to bring about the removal of 
these Germans and will, of course, give full de- 
tails of the information in our possession on this 
matter to the committee whicli is under discussion 
to be set np by the Council. 

I think it is very important that, when the 
committee makes its report to the Council, it pro- 
vide us with the facts developed by it, so that the 
Security Council it.self may make its own determi- 
nation, based upon these facts. 

I believe that the Sectirity Council miglit well 
consider directing the committee to report to us 
not only at the conclusion of its first stud_\-, but. 
if necessary, from time to time thereafter, when- 
ever they may feel that information has been 
broviglit to light, to their attention, or develojied 
by them, that would warrant the Council's imme- 
diate attention. In this way, we would have the 
means of being continually and accurately in- 
formed of the developments in Spain in relation 
to the Charter of the United Nations. 

Mr. Gromyko (Soviet Union) (Speaking in 
Russian; translation) : In summing up what I 
have said at this meeting of the Security Coujicil. 
I would like to make the following statement. 



790 



DEPARTMENT OF STATE BULLETIN 



The declaration of the Delegate for Poland, Dr. 
Lange, and also the discussions which have taken 
place in the Security Council on the question raised 
by the Polish Delegate in his letter of 8 and 9 April, 
leave no doubt that the Fascist regime of Franco at 
present existing in Spain is indeed a serious danger 
for international peace and security. 

In view of this fact there is no need to set up 
any kind of commission to study the question. In 
the presence of an abundance of facts and evidence 
which confirm the Tightness of the accusation 
brought against the Fascist regime of Franco by 
the Delegate for Poland, the setting up of a com- 
mission might have a negative effect on world pub- 
lic opinion, as well as on the democratic forces of 
Spain herself. It would be impossible to justify 
the setting up of such a commission in the eyes of 
the jiublic opinion of the world, which demands 
the complete severance of relations with the Franco 
regime, and not delays, for which it is impossible 
to find any justification. For these reasons I de- 
clare myself opposed to the proposal to set up a 
commission. 

Mr. \ax Kleffens (Netherlands) : 

I only have now to laise two points in connection 
with the wording of the revised Australian 
proposition. 

The fir.st is that I am asking myself whether it 
would not be preferable to strike out the time limit 
of 31 May. No doubt the committee will work with 
all i-easonable dispatch but I feel tliat certain mat- 
ters cannot very well be dealt with on the basis 
of a timetable, and I do not see wh}' the committee 
should present its report on that particular date 
of 31 May. If the committee is ready before that 
date, so much the better. Why should it not then 
come forward at once with its report? 

Moreover, there is in session at this moment in 
Paris an important conference. I do not know 
whether that conference will or will not deal with 
the case of Sjjain, but I think that we should avoid 
any possibility, however remote, of parallel action 
on different lines. That could only create confu- 
sion, and we are here to try to straighten out ques- 
tions, not to confuse them. This, too, seems to me 
to make it advisable not to .set a time-limit for the 
committee's labors. 

May I therefore move the deletion of the words 
"on 3] May I'JiG"? 



In the second place, the new text of the Austral- 
ian jjroposal contains a new notion, a notion which 
is not known to the Charter, namely, the term 
"matter of international concern", which you will 
find under question ( 1 ) . I think that we should 
not introduce in such an incidental way notions 
which do not find support in the Charter. If we 
did that sort of thing, we would risk to deviate 
from the Charter, and I should be glad if the 
Australian Delegate could see his way to delete in 
question (1) of his amended text the words *'of 
international concern". It does not alter the ques- 
tion in any sense, but in doing so we avoid the 
terminology which might be dangerous or mis- 
leading. 

Mr. Bonnet (France) {Interpretation^ : From 
the beginning of the discussions of this Council 
on this question there have been divergencies of 
views between the members, and these divergencies 
still persist today. 

But it seems to me that there has been a certain 
slight measure of unanimity at least on one point. 
All those who have spoken have at one time or 
anotlier expressed their moral condenmation of 
the Franco regime. If today we adopt a provi- 
sional resolution which will enable us to continue 
our work on this problem, I think that we should 
note with gladness this rare unanimity among our 
members, and I think that we should also express 
in some way our sense of affection and friendship 
for the Spanish people who have placed their hopes 
in the United Nations. I would therefore ask the 
Delegate for Australia to accept an amendment to 
his resolution in this sense. 

The resolution put forward by Colonel Hodgson 
is short and concise ; the first paragraph recalls the 
demand made to the Council by the Polish Am- 
bassador; the rest of the resolution, I think, con- 
tains a good deal of repetition. 

The second paragraph says that the Security 
Council resolves to make further studies in order 
to determine whether such a situation does exist, 
that is, the situation mentioned in the first para- 
graph. After that the draft of Colonel Hodgson 
puts three questions which seem to me to repeat the 
point made earlier in the draft, and which seem 
to me really all to boil down to one single point. 

And so it seems to me that the substance of this 
resolution is the question of ascertaining whether 
the Spanish situation constitutes a danger to inter- 
national peace and security. I ask myself whether 



MAY 12, 1946 



791 



this series of questions at the end of the text is 
necessary. Tliey seem to me to be rather negative 
and restricti\'e because I think that there are many 
other questions which the connnittee might have to 
deal with. To mention only a few, it might have 
to deal with the question whether this Franco 
regime set up with the help of the Axis still ad- 
heres to the principles of the Axis; and if so, 
whether these principles held by the Franco regime 
constitute a threat to democratic regimes. 

I could frame, in a short time, a dozen otlier 
such questions which it might be useful for the 
subcommittee to examine. I think, therefore, that 
it might be desirable to give this proposed subcom- 
mittee other possibilities, a wider scope for its 
study than that envisaged by the Delegate for 
Australia, and I would therefore ask the Delegate 
for Australia whether he would be prepared to 
consider dropping the three questions which form 
the conclusion of his draft. 

Colonel Hodgson said that he wanted to give the 
subcommittee the greatest possible scope, the great- 
est possibilities for its work. 

Let us add some implied answer as to what meas- 
ures might be prescribed. I would suggest, there- 
fore, that, if the Delegate for Australia is prepared 
to drop the three questions enumerated in his text, 
I would ask him to add after the words ''on the 
results of such studies" the words "and on practical 
measures which the United Nations might take in 
this matter." I think that such a text would be 
short and modest. 

Instead of continuing the discussion which has 
already taken a good deal of our time, we should, 
by adopting .such a text, refer to five of our number 
the task of doing this preparatory piece of work, of 
getting supplementary information from whatever 
governments are able to sujiply it, and of reporting 
back to the Council as soon as possible so that the 
Coimcil can, as I hope it will after convincing 
those colleagues mIio are .still in doubt of the neces- 
sity of the United Nations intervening in the Span- 
I ish question, then reach a unanimous conclusion. 

Mr. L.\nge (Poland) : The problem before us, 
therefore, is to find some ba.sis for international 
action. I do not believe that this can be reached 
within the next 15 minutes nor even within the 
next hour. This requires study by the different del- 
egations, and perhaps also by their governments. 
In order to prepare for unanimous action, I should 
suggest that this Council ap