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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
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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
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* 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
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.
0
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. 0
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
0
24
(*)
0
24
152
136
(*)
0
16
100
0
14
(*)
0
14
86
77
(*)
0
9
185
0
36
6
0
30
149
136
(*)
0
13
100
0
19
3
0
16
81
74
(*)
0
7
57
0
37
24
0
13
20
19
1
0
(*)
100
0
65
42
0
23
35
33
2
0
(*)
185
0
121
109
0
12
64
58
5
0
1
100
0
65
Soviet Zone
58
Ivoniftsberg Area *
0
Polish-Administrated Area
Western Germany .-.
7
35
British Zone
31
American Zone _ _
3
Bremen Enclave ^
0
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
0
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. 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
0.2
4. 3
48
0
57
54
55
64
48
35
58
29
69
100
0
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. 0
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
0
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
0
10, 058
10, 595
6,022
4, 977
Rural pop-
ulation in
thousands
3,934
0
1,784
1,080
721
349
Percent of
population
in zone
59
0
90
74
72
71
Percent of
Austrian
rural
population
100
0
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
0 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.
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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.
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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
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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 appoint a subcommittee.
the purpo.se of which is to reach a basis for such
unanimity. On one side we have the proposal of
a committee for investigation ; on the other side we
have in opposition to this committee of investi-
gation a connnittee of the type which I propose
that would consider the resolution I have presented,
the different procedural proposal of our Australian
colleague, and try to come to this Council with a
resolution which presents recommendations of
practical steps to be taken by the United Nations.
Now, in making such a proposal I do not with-
draw my original resolution, the resolution that the
I^iited Nations through collective action of tlieirs
break diplomatic relations with the Franco regime.
The Government of Poland considers such an act
the very minimum of what has to be done. How-
ever, in the interest of reaching a unanimous de-
cision and action, I am perfectly willing to submit
this resolution, like all other resolutions which
were presented here, to such a committee for study,
or draft, or whatever you call it, which would in
a few days' time report to us its recommendations
as to the proper action to be taken.
In conclusion, I would once more like to under-
line the fundamental unanimity which was ex-
pressed during the debates of this Council on the
Franco regime, the moral condemnation which was
expressed by every member who took part in the
debate. Again, I hope that the people of Spain
will take notice of this unanimity.
The President:' Can I liave the written pro-
posal of your motion, Mr. Lange ?
Colonel Hodgson (Australia) : With regard to
the various suggestions which have been made. I
am quite in accord with the wishes of the Delegate
for the Netherlands. I had a doubt myself as to
specifying a date. I thought as an alternative we
might as well have used the words "as soon as
possible" or "as early as practical" so that it re-
mained open to tlie discretion and good sense of the
connnittee. The whole point of fixing a date is
due to the fact that I did not want the world or
anybody to have the impression we were trying
to delay.
Now, about the matter of "international con-
cern", on that I quite agree and that is as I had
it originally. But you come to this i^oint: in par-
liamentary procedure you usually only accept an
amendment if you know it is in accordance with
the wishes of the majority of the rest of the com-
^\fifi Pasba (Egypt).
192
DEPARTMENT OF STATE BULLETIN
mittee. 1 have not heard any view expressed in
favor of the suggestions of tlie French Delegate.
I am prepared to go so far as to drop the three
questions, because the gist of these questions is
really contained in paragraph 1. But when the
Delegate for Poland suggests that we might have
a subcommittee to get togethei', to decide ui^on
measures to be taken, we are faced with a funda-
mental difference in principle. In other words,
my conception is that it is for this Council, and
tliis Council alone, to make just and impartial de-
cisions and to ascei'tain facts, not a subcommittee.
Now for a subcommittee to recommend practical
measures means, in effect, that that committee
makes decisions instead of the Council. Even to
suggest ]iractical measures means that they have
reached a decision on the facts.
There is this point, too. I do not know yet Avhat
the composition of the subcommittee will be. I
have heard that there is a likelihood or that it
would be preferable, say, for four of the permanent
members not to be represented on it. Would it be
right for this Council to give a subconunittee au-
thority to make lecommendations as to what the
permanent members should do, without their really
having a say ? I think not. That is where I cannot
reach across to the Delegate for France and the
Delegate for Poland with a view to reaching unani-
mity.
There is also this point. Even if I did accept
that, the delegate for the Soviet Union says that
no commission or subcommittee would be accept-
able to him. Even then we still would not have
reached unanimity because he objects to any com-
mission or any conunittee.
At the same time, if it is the wish of tlie Council
that we might have another consultation and try to
reach an agreement, I am only too happy to do so.
Mr. Lange (Poland) : The wording might be
changed somewhat if a member of the Council
desires it. The draft proposal of the resolution
is this :
The attention of the Security Council luiviug
been draM'n to the situation in Si)ain by one of
the United Nations acting in conformity with ar-
ticle 35, jjaragrapli 1 of the Charter, the Security
Council,
(1) Takes into account the unanimous condem-
nation of the Franco regime expressed during the
debate ;
(2) Appoints a subcommittee of five of its mem-
bers to study the basis for unanimous decision
to be reached by the Council and to prepare a
draft resolution containing recommendations as
to the practical steps to be taken.
Mr. Bonnet (France) {hiterprcfation) : I
would like now to refer to the three amendments
that I have brought forward and which I think
the Council wishes to have considered.
The first amendment that I proposed to the Aus-
tralian amendment was that we should note our
unanimity in condemning the Franco regime and
that we should greet the Spanish people and ex-
pi-ess our hojie that they woidd soon be represented
among us.
The second was tliat we should drop the three
questions enumerated at the end of the Australian
text.
The third was that a subcommittee should be
set up, a working committee, to make proposals
regarding practical measures that the Council
might take in this matter. I think that such a
proposal of a subcommittee to suggest practical
measures is not at all a scandal, as has been sug-
gested.
We could discuss these amendments at very great
length. I think, indeed, that they should be
studied, and I think, in particular, that the require-
ment of unanimity, which has been stressed by the
Delegate for Mexico and Poland, is very im-
portant.
I think that it might be enough to make one or
two further changes in the text of the Australian
proposal as I have amended it, and it seems to me
that that is what Mr. Lange has proposed. I
think there is a little misunderstanding as regards
the proposal put forward by Dr. Lange. I believe
that the Delegate for Australia is under the im-
pression that this proposal of the Polish Delegate
is of a final nature and intended to replace his
own amendment. For a time, too, I wondered
whether that might be the case, but clearly I see
that the intention of the Polish Delegate is to pro-
pose a drafting connnittee. Is this not correct ?
Mr. L.\NGE (Poland) (Transldfion) : The com-
mittee would work for a period of two or three
days.
Mr. Bonnet (France) {Iiiferpretutton) : Even
if it was only in session for a period of two or
three days my three amendments could be referred
to it. This drafting committee could make pro- J
])osals tomorrow aftei'uoon on the basis of the ^
MAY 12. 1946
793
Aiistialiiin text, aiicl. as a result (if these [)ioposals,
we niifrht be able to reach a iinaniinous decision
toinoirow.
I tiiiiik that the Council should be able to accept
my proposal, which is really Mv. Lange's proposal
amended and altered. We have a number of
amendments before us. We could, of course, con-
sider them now, but we could also refer them to
tliis draftinff conunittee, and I would insist upon
the desirabilitj' of having the drafting committee
consider these amendments today and tomorrow
morning, and that the Security Council itself
should meet to discuss them tomorrow afternoon,
after the drafting committee has done its work.
Mr. Bonnet (France) {Intrrprctation) : I
should like to reply very briefly to the delegate
for the Netherlands and to say that I do not see
how my proposal can be exclusively opposed to the
proposal of the Australian Delegate. I do not
think these two proposals are mutually exclusive.
Is there any reason why a greeting to the Span-
ish people should not be included in the Australian
proposa 1 ? Is there any reason why this text should
not include a statement that the members of the
Council condemn the Franco regime? If so, I
should not be able to vote for the Australian pro-
posal, but I do not think that the inclusion of such
provisions is impossible at all.
Again, are we to consider that the dropping of
the two questions at the end of this text is impos-
sible? If that were so, I should insist on many
other questions being added, but I think it is
perfectly possible.
I think that the Australian text can remain with
the amendments proposed and with the addition,
the small addition, which I proposed, and I must
say I see no contradiction between my proposals
and those of the Australian Delegate and I think
the Australian Delegate himself has admitted that
there is no such contradiction. If it were held that
my amendments \Aere irreconcilable with the Aus-
tralian text, then I would suggest that it would be
impossible ever to propose amendments to any
text in parliamentary procedure.
Mr. van Kleffexs (Netherlands) : I only want
to speak very briefly. Of course the Australian
resolution does not exclude the insertion of the
word "greeting" to the people of Spain nor does it
exclude that the three questions at the end be sup-
pressed, but where the opposition between the two
resolutions comes in is in what tlie Delegate for
France wanted to add, namely, "that the suliconi-
mittee may report to the Council . . . on the
practical measures which the United Nations could
take in this matter". The Australian proposition
goes no f urtlier than a study of facts, but we must
not prejudge the question whether or not steps are
to be taken, and this is the ground on which I
stood in my previous estimation of the debate.
Colonel Hodgson (Australia) : I am not sure
what we are getting to and wliat we are going to do
when we get there, but I said earlier this aftei'noon
that I would be only too happy to meet together
with the Delegates for France and Poland with a
view to reacliing an agreement on this text with
amendments, with a view to a vote.
I thought the Delegate for the United Kingdom
made it perfectly clear and I was prepared to ac-
cept that, but from the remarks of the Delegate
for the Soviet Union it is very clear that there is
a fundamental difference between us even in the
conception of drafting. In other words, the Dele-
gate for Poland wants, and I take it that is still
his idea, to embody in his draft certain resolu-
tions, certain things which will prejudge the whole
matter and cause us to take action. This will
undermine the case which is em1)odied in the
resolution of the Australian Delegation.
So, if we want to get nnanimity regarding the
duties of the drafting subcommittee on which we
are going to vote I do not see any point in going
on with it and I would rather see a vote taken on
the amendment as it stands.
I would like to have a meeting with the Delegate
for France halfway, so to speak, if that would suit
the Delegate for Mexico. I would drop those three
questions if tlie Delegate for France is prepared
to drop that particular sentence which he wants
added, and if he can agree on that straiglitaway.
He is more than half prepared to agree now; I
think we can have a vote on that.
I would like to say that instead of going halves,
I am prepared to offer 75 for 25, and I am prepared
to tlirow in the clause of condemnation of the
Franco regime similar to the terms of the resolu-
tions and declarations of San Francisco, Potsdam,
and London, or such terms as we can mutually
agree on along those lines.
The President : I think I am going to j^ropose
the adjournment until tomorrow at 11 o'clock, and
in the meantime I think the Delegate for Australia
will see the French Delegate and perhaps the Pol-
794
DEPARTMENT OF STATE BULLETIN
ish Delegate tonight. If they can arrive at any
agreed proposal it would be quite all right, other-
wise we will have tomorrow to vote on the resolu-
tion of the Australian Delegate and on the amend-
ments made by the Delegates ior France and
Poland.
Colonel Hodgson (Australia) : I would like
first to ask a question of the French Delegate. Is
he prepared to accept my suggestion? If so, I
would like a vote immediately.
Mr. Bonnet (France) {Interpretation) : AVhen
I proposed a drafting committee my object was
that the Council should be enabled to reach agree-
ment, for I am firmly persuaded that one can reach
agreement usually, when concessions are made on
both sides.
Remarks Made at Thirty-eighth Meeting ^
The President : Now we come to the Spanish
question. Does any representative wish to speak?
Colonel Hodgson (Australia) : In accordance
with the request of the Council yesterday after-
noon, I beg to refjort that the Delegates for France,
Poland, and Australia met witli a view to reach-
ing an agreed draft resolution to be placed before
this Council. I am pleased to say that we were
successful. Witli your permission I will read the
resolution as it now stands. There are two minor
corrections which I ani going to make in the text
you have got, which have been suggested to me
and which I think will make it precise. I will
point them out to you as I go along.
"The attention of the Secui'ity Council has been
drawn to the situation in Spain by a member of
the United Nations acting in accordance with arti-
cle 35 of the Charter, and the Security Council has
been asked to declare that this situation has led
to international friction and endangers interna-
tional peace and security.
"Therefore, the Security Council, keeping in
mind the moral condemnation of tlie Franco re-
gime by the Security Council (instead of 'by,' 'in'
the Security Council) , and the resolutions concern-
ing Spain which were adopted at the United Na-
tions Conference on International Organization
at San Francisco and at the First General Assem-
bly of the Unit(^d Nations, and the views expressed
by members of the Security Council regarding the
Franco regime, hereby resolves :
"to make further studies in order to determine
whether the situation in Spain has led to inter-
national friction and does endanger international
peace and security, and if it so finds, then to deter-
mine what practical measures the United Nations
may take.
' Held on Apr. 26, 1946.
"To this end, the Security Council appoints a
subcommittee of five of its members and instructs
this subcommittee to examine the statements made
befoj-e the Securitj' Council concerning Spain, to
receive further statements and documents (in-
stead of 'to call for', the word 'receive'), and to
conduct such inquiries as it may deem necessary,
and to report to the Security Council as soon as
practicable."
There are three points I might mention. You
will see that in paragraph 2 it brings in the request
of the French delegation, and other members, that
there should be some mention of the moral con-
demnation, requested e-x^^ressly by all the dele-
gates.
The second point is in paragraph -i. The main
substance of this resolution is tliat it is for this
Council, and not the subcommittee, to determine
what practical measures the Ignited Nations might
take on the finding that it has led to international
friction and does endanger international peace
and security.
In paragraph 4 you will see that very wide
jjowers of discretion are given to the^ subcom-
mittee to conduct such inquiries as it may deem
necessary; that is, it will itself decide how and
when and where the inquiry is to be made.
Mr. de la Colina (]\Iexico) : In order to have
time to study carefully the new text of the
Australian amendment, and also to permit the
representatives of the members of the Security
Council to obtain definite instructions from their
respective governments, I move that we adjourn
tlie vote until an early date, let us say Monday,
if that is agreeable to you.
The President : Do you agree to the postpone-
ment of the vote until Monday at three o'clock?
Mr. van Klefeens (Netherlands) : May I just
ask a question ? In order to understand this draft
resolution correctly, I should like to ask the
MAY 12, 1946
795
Australiuu Delegate why this resolution speaks
not only about keeping in mind the moral con-
demnation of the Franco regime, which I think
is perfectly right, but, in addition to that, the
views expressed by members of the Security Coun-
cil regarding the Franco regime? I was wonder-
ing whether that was not a repetition. Perhaps
I am mistaken.
Colonel Hodgson (Australia) : Yesterday we
had a close look at this. You will note the two
concepts there. The first one was the desire of
the French Delegate for the moral condemnation.
The original resolution read that the subcommittee
had to bear in mind the views expressed, that is,
all the views in the whole of the debate for and
against, and the question of domestic jurisdiction.
So the first is the narrow concept and that last
l^ortion, the views expressed, deals with all the
views on every aspect of the question expressed
durino; the debate.
Remarks Made at Thirty-ninth Meeting ^
Tjie President : The first item of the agenda is
the Spanish question. I think we can close the
debate and put this question to vote if no member
wants to speak.
Mr. Lange (Poland) : In the name of the Polish
Delegation I want to declare that we are ready to
support the Australian resolution. However, we
are very anxious that this proi^osed subcommittee
does really work and does not prove a means of
indefinitely shelving the issue, as certain fears
were expressed during the last meeting of our
Council.
I should like, therefore, to propose two minor
amendments. One is that the date be added when
the report is due ; for instance, 31 May. Further-
more, in the very beginning of the second para-
graph we read the following: "Therefore the Se-
curity Council, keeping in mind the moral con-
demnation of the Franco regime in the Security
Council". I would propose that we say either,
"by the Security Council" or "the unanimous
moral condemnation of the Franco regime in the
Security Council" — because as it stands there may
be a ceitain misunderstanding. It might be under-
stood, for instance, that one of the members of
this Council condemned the Franco regime and
all the others appi-oved of it. Since there was an
unanimity of opinion on the subject, 1 think this
unanimity of opinion somehow should be regis-
tered in the resolution. I want to ask the Delegate
of Australia whether these two changes would be
acceptable to him.
In general, I again want to express what I had
the opportunity of saying before, that there is 'a
certain unanimity in the Council as to the attitude
of the member governments towards the Franco
regime, and we support this resolution in spite
'Held nil Apr, 29. 194(5.
of certain fears which were expressed in this
Council that it may mean indefinite postponement
of the issue, because we attach great importance
to the unanimity of action by the Council in this
matter, and we want to give the Council a chance
to act unanimously.
Of course, this does not mean that we withdraw
our earlier resolution demanding collective break-
ing of diplomatic relations with Spain. We under-
stand that our earlier resolution will again come
under discussion and vote after this committee has
presented its report.
Mr. Hasluck (Australia) : So far as the Aus-
tralian Delegation is concerned, we are quite ready
to accept the suggestions which the representative
of Poland has nmde. so long as those suggestions
are acceptable to other members of the Council.
I should like to say this, since the representative
of Poland has raised the question, that in moving
this resolution the Australian Delegation also
fully intended that this committee should work.
Our one object is that this committee should assist
the Council to reach a decision as quickly as
possible.
On the particular point, regarding unanimous
condemnation, if there are no other objections
from other supporters of the resolution, we
are quite prepared to accept the suggestion in
regard to the insertion of the word "unanimous"
before "moral condemnation". With regard to the
second suggestion, for inserting a date, I recall
that in the second resolution we ]iut forward we
had until 31 May, and we should be quite happy
to see that restored. On that point, I think it is
worth bearing in mind that, if the conunittee found
itself unable to complete its work by May 31, it
could report back on that daj' and ask for an ex-
tension of time.
796
DEPARTMENT OF STATE BULLETIN
Mr. Groiiyko (Soviet Union) (Spcak'nig in
Rus-sian; tranftlatioii) : Before the ilraft resolu-
tion projjosed by the Delejiute for Australia is
put to the vote, I consider it necessary to make the
following observations :
In spite of some changes in the text of the Aus-
tralian draft resolution, its contents remain un-
changed. What this draft resolution contains is
a proposal to inquire into the existing situation in
Spain in order to ascertain whether the Fascist
Franco regime existing in Spain constitutes a
threat to international peace. This proposal was
made in spite of the fact that the discussion in the
Security Council on the question raised by the
Polish Delegate had fully confirnied the fact that
the existing Fascist regime in Spain constituted a
serious threat to the maintenance of international
peace and security.
The adoption of the Australian draft resolution
will mean that the Security Council, instead of
taking effective measures, will take the path of
delays and inaction in regard to Fascism in Spain,
which the public opinion of the world will fail to
understand and even more to justify'.
In view of this, the Soviet Delegation continues
in its strongly negative attitude towards the draft
resolution proposed by the Delegate for Australia.
Bearing in niind, however, that some members
of the Council declare that they are still unsatis-
fied with the information at the disposal of the
Council regarding the question raised by the Dele-
gate for Poland, and bearing in mind in this con-
nection that my voting against the Australian
draft resolution would make its adoption impos-
sible, I abstain from voting.
I consider it necessary to draw the attention of
the Security Council to the fact that my abstention
from voting on this matter may in no way be re-
garded as a precedent capable of influencing in
any Avay the question of the abstention of perma-
nent members of the Security Council.
Mr. i)f: i.A CoLixA (Mexico) : I am prepared to
vote for the final text of the Australian resolution
as now submitted to the Council, but, in order to
clear up any possible misunderstandings of Mex-
ico's position concerning my decision to vote in
favor of this resolution, I wish to make the follow-
ing statement:
My Government has considered it vital to avoid
any division on this issue, as we believe that lack
of unanimity will only give aid and comfort to
tiie Falange government. In the hope of reach-
ing a unanimous decision, we have been willing to
accept the proposal concerning the creation of a
subcommittee, trusting that its findings may per-
suade members of the Council who still doubt
whether conditions in Franco Spain constitute a
situation likely to endanger the maintenance of
international peace and security. We continue to
believe that Franco Spain is a potential menace
to international peace and security, because it is
a center of world-wide Fascist activities and a
haven of Nazi agents.
We are disposed, however, in the interest of
unity to join in this resolution with the other mem-
bers of the Council who are not convinced that
such a danger to international peace and security
exists.
Mr. van Kleffens (Netherlands) : I am glad
that, thanks to the attitude of the Russian Dele-
gate, I need not go into the question as to whether
this is a question of procedure or not, but I want
it to be understood that, if in the future a similar
position arose on some other matter, I should feel
([uite free to express an opinion, if necessarj^, on
the question as to whether it is a matter of pro-
cedure or not.
The Presidext: The Council now has to con-
sider only one motion, the motion of the Australian
representative which has been amended now and
which reads finally as follows:
"The attention of the Security Council has been
drawn to the situation in Spain by a Member of
the United Nations acting in accordance with
Article 35 of the Charter, and the Security Council
has been asked to declare that this situation has
led to international friction and endangers inter-
national peace and securit}^
"Therefore the Security Council, keeping in
mind the unanimous moral condemnation of the
Franco regime in the Security Council, and the
resolutions concerning Spain which were adopted
at the United Nations Conference on International
Organization at San Francisco and at the first
General Assembly of the United Nations, and the
views expressed by members of the Security Coun-
cil regarding the Franco regime, hereby resolves :
"to make further studies in order to determine
whether the situation in Spain has led to intorna-
(Continurd on pnt/c 80,i)
MAY 12, 1946
797
Memorandum on the Objectives of the Economic
and Employment Commission^
The Charter of the United Nations states that
the United Nations are determined "to promote
social progress and better standards of life in
larger freedom", and "to employ international
machinery for the promotion of the economic and
social advancement of all peoples".
The United Nations shall, according to Chapter
IX, promote "higher standards of living, full em-
ployment, and conditions of economic and social
progress and development". (Article 55a). The
task of promoting full employment is considered
so important that it is stipulated in the Charter
itself. To obtain this objective. Chapter X, Ar-
ticle 68 provides for the establishment of commis-
sions in economic and social fields by the Economic
and Social Council : "The Economic and Social
Council shall set up commissions in economic and
social fields .... and such other commissions
as may be required for the performance of its
functions."
* * *
The Preparatory Commission Report presented
to the General Assembly for its first session held
in London on January 10th included in Chapter
III, Section 4, "Considerations and Recommenda-
tions concerning the organization of the Economic
and Social Council", certain recommendations for
the Economic and Employment Commission for
its consideration, as follows :
Economic and Employment Com/mission
18. The Economic and Social Council will re-
quire an advisory commission to assist the Council
in fulfilling its responsibilities in the economic field
under Ai'ticle 55 of the Chartei'. This commission
will be especially concerned with questions which
"do not fall solely within the scope of any of the
other commissions or of any single specialized
agency.
19. The Council should establish an Economic
and Employment Commission with the following
as its principal terms of reference.
693365—46 3
20. The Cojnmission would advise the Economic
and Social Council on:
(a) economic questions of a general char-
acter; and
(b) economic questions involving concerted
study and action by more than one spe-
cialized agency or commission of the
Council.
21. In particular it will be the function of the
Commission to advise the Council on :
(a) the promotion of world-wide full employ-
ment and the co-ordination of national
full employment policies ;
(b) the prevention of economic instability;
(c) urgent problems of economic reconstruc-
tion; and
(d) economic development of under-devel-
oped areas.
22. The Commission will require several spe-
cialized committees to assist it in its comprehen-
sive work. Attention is drawn to three such com-
mittees which will probably be required and for
which brief terms of reference and explanatory
notes are set out in the following paragraphs.
Employment Committee
23. The promotion of full employment is a func-
tion which cannot be divorced fi-om the work of
the main Commission in the field of general eco-
nomic policy. Nevertheless there are special highly
important aspects of employment which should be
handled by a special committee :
(a) study of national and international
methods of promoting full employment,
and related economic and administrative
problems; and
(b) analysis of information relating to em-
ployment and unemployment in the var-
ious countries.
'Document E/EMP/3, Apr. 26, 1946; original text in
English.
798
DEPARTMENT OF STATE BULLETIN
Balance of Payments Committee
24. Since trade, exchange and employment poli-
cies of states will be largely affected by their bal-
ance of payments, it will be desirable for an ex-
pert group to study and advise the Commission on
balance of payments problems, especially in so far
as they require for their solution concerted action
by governments and specialized agencies.
Economic Development Com,mittee
25. The Commission will require expert advice
on the long-term development of production and
consumption throughout the world and, in par-
ticular, on —
(a) the methods of increasing production,
productivity and levels of consumption
in the less-developed regions of the world ;
(b) the effects of industrialisation and tech-
nological change on world economic con-
ditions, and the adiustments required;
and
(c) the co-ordination of the activities of the
commissions or specialized agencies con-,
cerned.
On the proposition of the Committee on the or-
ganization of the Council, the Economic and Social
Council adopted the following resolution establish-
ing the Economic and Employment Conmiission,
as follows :
Economic and Employment Commission
Eesolution of the Economic and Social Council
of 16 February 1946, (Document E/20 of 15 Feb-
ruary 1946) , on the establishment of an Economic
and Employment Commission, supplemented by
the action taken by the Council on 18 February
1946, completing paragraphs 9 and 10 concerning,
the initial composition of this commission.
1. The Economic and Social Council, being
charged under the Charter with the responsibility
of promoting higher standards of living, full em-
ployment, conditions of economic and social prog-
ress and development and solutions of interna-
tional economic problems, and requiring advice
and assistance to enable it to discharge this respon-
sibility,
ESTABLISHES AN ECONOMIC AND EMPLOYMENT COM-
MISSION.
2. The Commission shall advise the Economic
and Social Council on :
(a) economic questions of a general char-
acter;
(b) economic questions involving concerted
study and action by more than one spe-
cialized agency or commission of the
Council ;
(c) the world economic situation and eco-
nomic problems requiring immediate at-
tention from time to time.
?>. In particular it will be the function of the
Commission to advise the Council on :
(a) problems of economic reconstruction of
devastated areas and other urgent eco-
nomic problems arising from the war, in-
cluding methods of meeting short-
term situations most consistently with the
requirements of long-term policy ;
(b) the promotion of world-wide full em-
ployment, the coordination of national
full employment policies and the pre-
vention of economic instability ;
(q) problems of economic development in-
cluding particularly those relating to
under-developed areas.
4. The Commission shall make studies and
recommendations and provide information and
other services at the request of the Economic and
Social Council.
5. The Commission shall establisli the follow-
ing sub-commissions :
(a) A sub-commission on Employment to
study national and, in consultation with
the sub-commissions on Balance of Pay-
ments and Economic Development, inter-
national methods of promoting full em-
2)loyment and related problems, and to
analyse information regarding employ-
ment and unemployment in the various
countries ;
(b) A sub-commission on Balance of Pay-
ments to study and advise the Commis-
sion on balance of payments problems,
especially insofar as they require for their
solution concerted action by governments
or by more than one specialized agency;
(c) A sub-commission on Economic Develop-
ment to advise the Commission on the
long-term development of production and
consumption throughout the world, and
in particular, on :
MAY 12, 1946
799
i) the methods of increasing production,
productivity and levels of consump-
tion in the less-developed regions of
the world;
ii) the effects of industrialization and
technological change on world eco-
nomic conditions, and the adjust-
ments required.
6. The Commission may also make recom-
mendations to the Council concerning any other
sub-commission which it considers should be estab-
lished.
7. Not more than three members, not members
of the Commission, may be appointed to' a sub-
commission without the previous approval of the
Council.
8. The Commission may propose to the Council
any changes in its terms of reference or in those
of the sub-commissions.
9. Initially, the Commission sliall consist of a
nucleus of nine members appointed in their indi-
vidual capacity for a term of office expiring on 31
March 1947. They are eligible for reappointment.
In addition to exercising the functions enumerated
in paragraphs 2, 3, 4 and 8, the Commission thus
constituted shall make recommendations to the
Second Session of the Council on the definitive
composition of the Commission and on the desira-
bility of establishing a sub-commission on economic
reconstruction of devastated areas.
10. The Council hereby appoints the following
persons as initial membei's of the Commission :
1. Mr. Luis Angel Arango Colombia
2. Dr. Franklin L. Ho China
3. Dr. Alexander Kunosi Czechoslovakia
4. M. Fernand van Langen- Belgium
hove
5. Dr. Alexander Loveday United Kingdom
6. Mr. Isador Lubin U.S.A.
7. Miss R. Zafiriou Greece
8. Mr. W. A. Mackintosh Canada (transmit-
ted since)
9. U.S.S.R.
and, in addition, persons whose names will be
transmitted to the Secretary-General, not later
than 31 ^March 1946, by the members of the Coun-
cil for Canada and the U.S.S.R.
II
The Preparatory Commission was anxious that
the Commission should be especially concerned
with questions which do not fall solely within the
scope of any of the other commissions or of any
single specialized agency. ' The Economic and
Social Council is also concerned with the coordi-
nation of the Specialized Agencies and should
study carefully the scope of their activities.
It is to be remembered, however, that the Eco-
nomic and Social Council has no power concerning
the coordination of policies, which belongs solely
to tlie General Assembly.
1. The constitution of the International Labour
Organisation provides that this organisation is
established for the promotion of improvement of
the conditions of labour,
"by the regulation of the hours of work, in-
cluding the establishment of a maximum working
day and week, the regulation of labour supply,
the prevention of v/nemployinent, the provision of
an adequate living wage, the protection of the
worker against sickness, disease and injury arising
out of his employment, the protection of children,
young persons and women, provision for old age
and injury, protection of the interests of the work-
ers when employed in countries other than their
own, recognition of the principles of freedom of
association, the organisation of vocational and
technical education and other measures."
In the light of these objects, the International
Labour Organisation is taking care of the prob-
lems of unemployment from the social point of
view, from the point of view of the conditions of
labour, and even in the Declaration concerning the
aims and puri:)oses of the International Labour
Organisation adopted at Philadelphia on 10 May
1944, the text of which is annexed to the proposed
amendments to the Constitution (Report of the
Conference Delegation on Constitutional Ques-
tions on the work of its first session 21 January-
15 February 1946.) The obligation of the I.L.O.
to further among the nations of the world pro-
grammes which will achieve full employment and
the raising of standards of living is put also in the
framework of policies in regard to wages and earn-
ings, hours, and other conditions of work.
There will be no overlapping of tasks and ac-
tivities if the Economic and Employment Com-
mission considers the problem of full employ-
ment in connection with economic questions of a
general character.
2. The governing principles of the proposed In-
ternational Trade Organisation outline expansion
800
DEPARTMENT OF STATE BULLETIN
of world trade and employment in the following
terms :
"1) It is recognized that:
a) In all countries hifjh and stable employment
is a main condition for the attainment of satisfac-
tory levels of living.
b) The attainment of approximately full em-
ployment by the major industrial and trading
nations, and its maintenance on a reasonably as-
sured basis, are essential to the expansion of in-
ternational trade on which the full prosperity of
these and other nations depends ; to the full reali-
zation of the objectives of all liberal international
agreements in such fields as commercial policy,
commodity problems, restrictive business prac-
tices, monetai-y stabilization, and investment; and,
therefore, to the preservation of world peace and
security."
This organisation is approaching the problem
only from the trade and commercial aspects by
considering the pi-omotion of intei'national com-
mercial cooperation, establishing machinery for
consultation and collaboration among member
governments regarding the solution of problems
in the field of international commercial policies
and relations.
In the discussion of the Committee on the or-
ganisation of the Council (London, 15 February
19-16), it was pointed out by the chairman that no
international trade organisation was likely to be in
being before 1947, and that it would be created
against the background of the Commission with
which its activities would have to be coordinated.
The Dutch member reminded, in this connection,
"that the proposed international trade organisa-
tion would not deal with problems of employment.
The Economic and Employment Commission, in
its turn, would not be particularly concerned with
questions of commercial policy."'
3. The aim of the Organisation on Food and
Agriculture is to expand and impi'ove production,
to increase employment, to raise levels of consump-
tion in the field of production, distribution and
consumption of f(jod and other agricultural prod-
ucts. The Organization on Food and Agricul-
ture is studying the relation of agriculture to
world economy and the problems of agricultural
population and farm labor. The social factors
which are in the scope of this organization in-
clude the distribution of population between agri-
culture and inihistry, popidation movements.
Considering this, there is no overlapping of func-
tions but a necessity of coordination so far as un-
employment in agriculture is concerned.
-1. The purpose of the International Bank for
Reconstruction and Development is "to promote
exchange stabilitj', to maintain orderly exchange
arrangements among members, and to avoid com-
petitive exchange depreciation." (Article I, iii).
Tlie main task of the Bank is to assist in the recon-
struction by facilitating the investment of capital
for productive purposes, and by so doing, to con-
tribute to the raising of productivity, the standard
of living, and conditions of labour.
The coordination between those above-men-
tioned specialized agencies in the field of promo-
tion of full employment is therefore imperative.
Scope and Aims of the Economic and
Employment Commission
During the discussions in the Committee on the
Organization of the Council, ideas were expressed
by the members which the Committee may con-
sider as interpretation of the adopted resolution
and as guidance for future activities :
Cooi'dination of work of Commission and Specml-
ized Agencies
"Without deviating from the recommendations
of the Preparatory Commission which referred to
the necessity of an organ to coordinate the work
of the Commissions and the Specialized Agencies,
the Committee might recommend that the Eco-
nomic and Employment Commission should con-
stitute this coordinating bodj- so far as questions
within its competence were concerned."
. . . "The Economic and Employment Com-
mission should have the power to coordinate ac-
tivities of Specialized Agencies and Commissions
within the sphere of its work." ( Colombian mem-
ber).
On the subject of coordination, it was stated that
the Coordination Commission proposed in para-
graph 3.5 page 39 of the report would have as its
terms of reference the functions suggested in para-
graphs 12-15 of Section V of Chapter III. The
Commission was expected to establish the means
by which the activities of specialized agencies and
commissions could be harmonised.
"The Charter provided for two forms of co-or-
dination. The Council would co-ordinate the ac-
tivities of the Connnissions and the Specialized
MAY 12, 1946
801
Agencies, while the General Assembly presum-
ably on the recommendation of the Council, was
to co-onlinate the policies and activities of the
whole. It had been felt that it would be difficult
for a council of 18 members to undertake direct
co-ordination of tlie policies of specialized agen-
cies which would often include in their member-
ship tlic fifty -one members of the United Nations.
If the recommendations or conclusions of various
specialized agencies were conflicting, the General
Assembly alone would have power to remedy the
situation.
"The co-ordinating functions given to the Eco-
nomic and Employment Commission in the repf)rt
of the Preparatory Commission might have to be
clarified. But where the policy of specialized
agencies was involved, it was intended that the
Commission transmit its reconnnendations to the
Council, which would then report to the General
Assembly." (Chairman).
"The terms of reference of the Economic and
Employment Commission should make it clear
that it was required to co-ordinate the activities
of all the Commissions and specialized agencies
dealing with economic questions, and to make rec-
ommendations to the Council regarding the poli-
cies of such agencies as the Monetary Fund, the
International Bank, the F.A.O., etc. and Com-
missions such as the Fiscal Commission and the
Transport and Communications Commission."
(Norwegian member).
"That the question of co-ordination of the ac-
tivities of specialized agencies should be specifi-
cally mention [ed] in the terms of reference of the
Economic and Employment Commission. Some
of these agencies had powers which amovmted to
international authority. The Council must have
elfective means of action if it was to be able to
enforce economic policy and ensure that the poli-
cies of the specialized agencies were in no way
contrary to the aims of the Charter." (Colombian
member) .
"As regards the question of co-ordination, the
discussion seemed to arise as a result of differing
conceptions of the composition and character of
the Commissions. Some members of the Com-
mittee implied the concept that the Commissions
would have executive functions and be composed
of persons who were executive in character. In
referring to "highly qualified persons" he felt that
the Report of the Preparatory Commission meant
to imply technical qualifications. The word "ex-
pert" had been dropped during the debates at San
Francisco, but he did not think that in deleting it,
there had been any intention to alter the meaning
of the text." (U. S. member) .
"The bodies at present termed commissions
might well be given the task of supervising the
execution of an international convention or of per-
forming administrative functions in pursuance of
it.
"In regard to the co-ordination of specialized
agencies, the United Kingdom Government did
not accept the narrow definition of the word "ac-
tivities". The Council would require to under-
take not only administrative but substantive co-
ortlination, and it would need to be advised by its
Commissions". (U. K. member).
"Specialized agencies existed already in many
of the fields covered by the Commission, which
would itself be mainly concerned with the co-ordi-
nation and integration of the policies of the vari-
ous agencies. It was, therefore, not inconsistent
to ci'eate a commission to deal with questions of
trade and employment." (Greek member).
Survei/s
'Tt should be the primary task of the Economic
and Employment Connnission to carry out a com-
prehensive and detailed survey of world economic
conditions, both by independent investigation and
by means of questionnaires sent to governments,
and to study both the short and long term prob-
lems facing each country". It was stated that
"before reaching conclusions and making recom-
mendations the Economic and Employment Com-
mission must be fully and authoritativeh' informed
on the following matters :
a) pre-war material resources of each coun-
try and changes due to tlie war;
b) main pre-war economic problems of each
country and in particular the foreign de-
mand for its products, the level and nature
of its imports and the state of its balance
of payments;
c) main problems which each country is fac-
ing today as a result of war, occupation,
changes in demand, loss of export markets
and so on ;
d) measures and resources needed by each
country for its economic development;
802
DEPARTMENT OF STATE BULLETIN
e) any other matter that any country would
like to bring to the attention of the Coun-
cil." (Greek member).
"The technical commissions would be the best
judge of the most effective way of obtaining the
information they required. They should contain
experts capable of analysing and interpreting the
facts and statistics whicli in many cases already
existed." (U. K. member).
"Tlie Economic and Employment Commission
would analyse tlie work of the different agencies
and commissions and prepare the final report of
the Council.
"The pi'oblem of employment had nuiny social
aspects and the Commission might more appro-
priately be called "Economic and Social Commis-
sion" in order not to give the impression that it
was restricted to economic problems. It should be
in some way the executive body of the Council
itself." (Peruvian member).
"The Commissions thus constituted should not
be limited to organizational work, but should take
up the study of some urgent i^roblems and thus
prepai'e the work for the next session of the Coun-
cil." (Greek member) .
Composition of Commissions and Term of Office
of Members
It was suggested that, in view of the fluidity
of the position and the fact that the Council might
later wish to revise the composition and nature
of the Commissions, it would be advisable to make
appointments for one year. The solution was to
appoint a nucleus of each commission who could
make recommendations to the next session of the
Council regarding the completion of the member-
ship of each commission.
"A nucleus of each Commission be set up for an
undefined term, thus leaving the Council greater
latitude to review the position at its next session.
The nucleus could, in the meantime, study the
question of the final composition of the Commis-
sions, in addition to certain urgent substantive
problems." (Chilean member).
The U. S. S. R. member asked "whether the
functions of the ])roposed nuclear Commissions
would be ijurely organisational or whether they
would include questions contained in the terms of
reference of the Commissions."
"The nuclear bodies would examine the terms of
reference of the Commissions, and as far as pos-
sible, lay down a program of work. If, as an
expert body, they encountered difficulties regard-
ing the terms of reference or felt that they should
be modified, they woidd report to the next Session
of the Council, which would probably be held in
May or June. In addition, they would also be
invited to make proposals to the Council regarding
the personnel of experts required to complete the
composition of their Commissions.
"For some Commissions, such as the Economic
and Employment Commission, a larger nucleus
would be required. If no definite terms of office
were laid down, it would be difficult for the Council
to remove an expert fi-om office if it saw fit. The
term could be fixed on the understanding that it
could be extended if necessary." (Chairman).
"The tasks of a nuclear Commission might be
threefold :
a) to examine the terms of reference and re-
port thereon to the Council ;
b) to submit lists of candidates for the final
composition of the Commissions ;
c) to deal with urgent problems.
"As regards the third item, he thought the nu-
cleus of members should make material, rather
than technical preparation to speed up the work
of the Commission, by gathering together the nec-
essary documentation, and making recommenda-
tions regarding such questions as jiremises, secre-
tariat, frequency of meeting, and duration of the
Commission.
"If the program of the nuclear Commissions
were thus limited, it might be easier to secure
agreement as to their membership." (French
member).
Addendum to Document E/EMP/3
Memorandum on the Objectives of the
Economic and Employment Commission
Tlie following should be added to the end of
Document E/EMP/3
Sub-Commission on Economic Reconstruction of
Devastated Areas
In the resolution establishing the Economic and
Employment Commission (E/28), it is stated that
this commission should make recommendations to
the second .session of the Council on the desirabil-
it,v of establishing a sub-commission on economic
reconstruction of devastated areas.
In the discussion leading to this decision, it was
MAY 12, 1946
803
suggested by the U.S.S.E. member that the terms
of i-eference of the proposed sub-commission were
not of a sufficiently concrete nature, and that the
question required further consideration before a
sub-commission could be established which would
furnish really effective help to the devastated
areas. Tlie question should be postponed until
the next session of the Council by which time the
countries concerned could present proposals re-
garding ajDproiDriate action.
The Peruvian member, however, suggested that
in view of the magnitude of the problems to be
studied, a sub-commission might be set up now
with the limited task of gathering data regarding
the actual conditions in the devastated areas, in
order that more information might be available
to the Coiuicil to take a decision at its next session.
The U.S.A. member pointed out that the Sub-
Commission could not, in any case, be set up until
the second session. In the meantime, the initial
members of the Commission would examine their
own terms of reference and propose any necessary
changes. The question of reconstruction must be
taken up at latest the second session since the
Council had been instructed to report on it to the
September session of the General Assembly.
SECURITY COVJSClh— Continued from page 796.
tional friction and does endanger international
peace and security, and if it so finds, then to deter-
mine what practical measures the United Nations
may take.
"To this end, the Security Council appoints a
sub-committee of five of its members and instructs
this sub-committee to examine the statements made
before the Security Council concerning Spain, to
receive further statements and documents, and to
conduct such inquiries as it may deem necessary,
and to report to the Security Council before the
end of May."
We can put this Australian motion, amended as
I read it now, to a vote.
Mk. Stettinius (United States) : I wish to re-
serve the position of the United States on the
statement Mr. Gromyko has just made. With that
understanding I am prepared to agree that Mr.
Gromyko's abstention should not create a prece-
.dent for the future.
The President : I am going to put the motion
of the Australian Delegate to a vote.
(The vote was taken with the following result:
AfHrmative, 10; Negative, 0; Abstention, 1.)
The President: The resolution is adopted.
Now we have the question of the subcommittee.
I wish to propose that this subcommittee should
be formed of the Delegates of Australia, Brazil,
China, France, and Poland. Is there any objec-
tion?
Mr. Lange (Poland) : I should like to add to
your proposal that the Delegate of Australia be
chairman of the committee.
The President: Has anybody any objection?
Adopted.
KURIL. ISLftNDS
JAPANESE
ADMINISTRATIVE
REGIONS
I
HOKKAIDO
2
KINKI
I
TOHOKU
H
CMUGOKU
m
KflNTO
VU
SHIKOKU
IS
T0KA1
VIII
KYUSHU
PA C I F I C
OCEAN
LEGEND
BOUNDflBiES
■^ 5CAP A0M1NISTR4TIVE AREAS
PREFECTURAL OR PROVINCIAL
CAPITALS
NATIONAL
PREFECTURAL OR PROVINCIAL
SCAP
ADMINISTRATIVE AREAS
JAPAN AND SOUTH KOREA
Non-Military Activities
in Japan and Korea
ECONOMIC ACTIVITIES IN JAPAN
Natlrai, Rksoukces
Afjl'tCHlturK
1. Rice collection remained below schedule. The
collection rate improved but bj^ 20 Febi-uary only
50 percent of the quota had been collected, com-
pared with 80 percent on the same date last year.
The shortage of concentrated stock feed hampers
egg and milk product ion,
Fhhing
2. More fishing boats were re-activated a.s a re-
sult of repairs and increased allotments of fuel oil.
There remains an acute shortage of nets and hooks.
The production of shellfish and their products is
being levived. Fisliennen's cooperatives are being
reorganized along democratic lines.
Forextrtj
3. Annual capacity of sawmills is rated at 5,250.-
000.000 board feet of lumber. Present indications
are that only about 30 percent of this capacity will
be attained during the fiscal year 194Ij— 17.
Mininf/
i. February production of coal was 1,.364.000
metric tons, an increase of six percent over the
January figure.
Metal mining industries continued on a mainte-
nance basis with little ore produced.
Commerce axd Ixdcstrv
/iiihi.tfri/
5. The industrial situation was virtually un-
changed. Shortages of raw materials, fuel and
labor continued to keep most production at low
levels as compared to minimum needs.
Iron and steel production rose moderately in
January and early February. This was attribu-
table to an increase in coal supplies starting in late
January.
Excei-pts from Summation number 5 for the month of
Feb. 1W6. prepared l>y General Headquarters. Supreme
Commander for the .\llied Powers ; releaseil to the press
slniultaueousl.v b.v the War Department iu Washiugton
and h.v SCAP in Toliyo on .\pr. 2.'., 1!I46. Tlie first section—
Political .\ctivities — was printed in the Bn.t.ETiN of
May r,.
806
DEPARTMENT OF STATE BULLETIN
Chemical production was curtailed by shortages
of basic raw materials. Heavy chemicals manu-
factured in Januai-y averaged less than 10 percent
of industrial requirements.
Moderate declines prevailed in textile produc-
tion for January, largely caused by continued
sliortages, the shortened M'orking month resulting
from the week-long New Year holiday and the
necessity for making detailed inventories.
The Japanese Government inaugurated a na-
tionwide program intended to provide proper
maintenance for industrial machinery and equip-
ment. Supervision will be conducted from the
prefectural level.
Communications
6. A Telecommunications Facilities Keconstruc-
tion Council was formed of representatives of the
Board of Communications and various ministries
to juovide improved coordination of the Board's
activities.
Broadcasting service wa§ improved with the ad-
dition of seven new stations and an increase in
power output of four stations already in service.
Tramportation
7. The past low level of development of motor
transportation in Japan combined with war dam-
age have resulted in a current supply of motor
vehicles below the minimum essential require-
ments.
High passenger and freight traffic demands on
the railways kept the system overtaxed.
Utilities
8. A considerable increase in the electric power
load in Japan was evident during January and
February.
The operation of tlie public utility gas systems
of Japan is still limited by coal allocations.
Imports and Exports
9. Operational procedures and other details of
import and export relations were further clarified
in meetings between SCAP representatives and
the Japanese Government. Initial shipments be-
tween Japan and the United States are expected
in the very near future. Import and export pro-
grams for 1946 for China and Korea were devel-
oped. Production of equipment and preparation
of supplies urgently needed in China and Korea
were expedited.
Labor
10. The promulgation of the Imperial Ordi-
nance on Labor Unions and the enforcement of
the new Labor Union Law climaxed a month of
intensive labor union activity in the course of
which the number of labor union members ap-
proached 1,000,000.
Programs to recruit seamen for repatriation
service and coal miners were substantially com-
pleted.
The Advisory Committee on Labor to assist
SCAP on special problems in Japan and Korea
arrived fronr the United States.
Rationing and Price Control
11. In order to bring essential conunodities into
normal distributional channels the Japanese Gov-
ernment promulgated ordinances to prevent hoard-
ing of staple foods and clothing and to raise official
prices. These regulations should increase the
(juantity of foodstuffs sold to the government.
To reduce black-mnrket activities street vendors
are being formed into associations which will
regulate types and prices of articles sold. Each
vendor will be licensed and required to operate his
business in a designated area.
Finance
Money and Banking
12. The Japanese Government promulgated
ordinances blocking deposits and requiring com-
plete currency conversion. Limited withdrawals
from blocked accounts are permitted for specified
purposes.
Restrictions on financial transactions and im-
ports and exports of currency and financial instru-
ments were modified.
Further consolidation of financial institutions
was forbidden.
Public Finance
13. Permission was granted for government
borrowing of ¥1,000,000,000 by long-term bonds
and ¥500,000,000 in treasury notes.
Public finance plans of local governments em-
phasized expenditures for education, public woi'ks
and sanitation. Decreases in planned expendi-
tures in other fields were caused by shortages of
materials.
Legislation is being prepared to create a Hold-
ing Company Liquidation Commission and to
prohibit i)articipution in international cartels and
restrictive international agreements.
MAY 12, 1946
807
SOCIAL ACTIVITIES IN JAPAN
Public Health and Welfare
Disease Iru-idence
1. The incidence of smallpox continued to be
generalized throughout most of the country.
There has been some decrease in areas where ex-
tensive campaigns have been undertaken with
stocks of newl^' manufactured vaccine.
2. A major outbreak of tj'phus fever occurred
in the city of Osaka. Supplies of DDT dusting
poM'der were made available for a progiam of mass
dusting under the supervision of SCAP repre-
sentatives.
Welfare
3. The Japanese Government has submitted a
l^lan to control and restrict unnecessary jDopula-
tion movements from rural areas to urban centers
defined as cities with 100,000 or more population.
Evacuees considered essential in re-establishing
the minimum civilian economy of Japan will be
pei'mitted to return to those localities where their
services are needed.
Social Insurance
4. The Ministry of Health and Welfare, Social
Insurance Bureau, reported that under the five
social insurance laws benefits totalling ¥525,000,-
000 were paid on 58,600,000 policies during 1945.
At the end of the year the balances of the five funds
totalled ¥1,831,000,000.
Medical Supply
5. Distribution of newly manufactured medi-
cines continued to improve. During the month
over 3,000,000 doses of smallpox vaccine were
shipped to areas where cases of smallpox occurred.
Production of smallpox vaccine during the
month exceeded 20,000,000 doses. Increased pro-
duction of diphtheria toxoid, cholera vaccine,
triple typhoid vaccine and typhus vaccine was
directed by SCAP.
Data from Japanese Government for JanuaiT
show that the overall production of all medical
supplies increased.
Relief
6. A SCAP memorandum on public assistance
directs the establishment of a central government
agency to supervise local governmental operation
of the I'elief program. It requires that the needs
of all indigent persons be met adequately regard-
less of the cause of dependency. The Japanese
Government is required to integrate all public
assistance administration into this program and
to cancel its subsidies in this field to non-govern-
mental agencies.
Repatriation
7. By 24 February 829,623 individuals had been
repatriated to China, Formosa, Korea and the
Eyukyus while 1,465,980 Japanese w-ere returned
to Japan.
Education
8. On 13 February the Japanese Government
was directed to abrogate all laws, ordinances and
other regulations which restricted the fi'ee circu-
lation of printed materials in public or educa-
tional libraries.
9. Three hundred three national and vocational
textbooks were approved by SCAP as free from
militaristic and ultra-nationalistic ideologies
and released to the Ministry of Education for
printing.
10. The term of the middle and higher schools
were restored to their pre-war jjeriods of five and
three years respectively. During the war each
had been shortened by one year.
Keligion
11. The Japanese Government continued the
separation of Shinto from state control and sup-
port by the abolition of the Shrine Board of the
Home Ministry. The Religious Corporations
Ordinances were amended so that they are appli-
cable to Shinto Shrines.
Media of Expression
Information Dissemination
12. SCAP's information programs designed to
further the development of democratic organiza-
tions in the fields of political life, labor, women
and youth continued.
A special information jirogram was instituted
to insure accurate and adequate explanation and
discussion of the emergency Imperial Ordinances
affecting Japanese economics; another program
explained the need for typhus control and outlined
the methods to be used.
808
DEPARTMENT OF STATE BULLETIN
13. Forty-eight thousand copies of a weekly
newspajjer prepared for Japanese prisoners of
war overseas were sent to Korea, Philippine Is-
lands, Saipan and China each week during the
month.
Pi^ess and Publications
14. Japanese newspapers showed continued
progress toward tlie development of a democratic
press. Press analysis of leailing Tokyo and pre-
fectural newspapers indicated that economics, re-
conversion and politics dominated both the news
and editorial columns.
A similar reflection of tlie critical problems of
the day was noted in analyses of articles appearing
in Japanese magazines.
Radio
15. Radio continued to play an important role
in the dissemination of information concerning
l^roblems facing the Japanese people. A marked
improvement in production standards for radio
programs was noted. A question and answer pro-
gram concerning the war and a current events pro-
gram were broadcast. The Women's Hour devoted
much of its time to a series of political commen-
taries.
Motion Pictures
16. Five feature moving pictures were released
during the month, four of them dealing with prob-
lems facing the Japanese people todav. Newsreels
showed improved treatment of current events and
a variety of timely documentary and educational
films are in production. American documentary
films were shown to Japanese audiences and for the
first time in four years American feature films were
shown on Japanese moving picture theater screens.
Theater
17. Modern plays constituted 50 percent of the
stage productions in February. One classical
Kabuki drama was presented with modern inno-
vations. A production of Drinkwater's "Abra-
ham Lincoln" played throughout the month.
LEGAL AND WAR CRIMES
Legal .\nd JuDici.\r. Affairs
1. Opinions were given on numerous questions
but the majority was concerned with the jurisdic-
tion of new occupation courts and the conduct of
proceedings in Japanese courts involving foreign
nationals.
2. An opinion was rendered stating that the
Supreme Conunander might appoint members of
the Allied Forces to militarj' commissions trying
war criminals and determine their qualifications
and authority.
3. Claims in Japan and Korea which are out-
side the jurisdiction of statutory claims commis-
sions are under examination by SCAP.
Exercise of GriniinaJ Jm-isdiction
4. A directive of 19 February deprived the Jap-
anese courts of criminal jurisdiction over nation-
als of the LTnited Nations or their organizations
including corporations. Proceedings now pend-
ing were ordered stayed, subject to further direc-
tions of SCAP after a full report of such pro-
ceedings had been made by the Japanese Gov-
ernment.
5. The Jajianese Government was informed
that acts' and offenses which in the future would
be tried only by military occuxiation courts in-
cluded :
(1) Acts prejudicial to the security of the Oc-
cupation Forces.
(2) Killing or assaulting any member of the
Occupation Forces.
(3) Unauthorized possession of property of
the Occupation Forces or its members.
(4) Interfering witli the arrest of any person
sought, or assisting in the escape of any person
detained by the Occupation Forces or by others
acting under the direction of the Supreme Com-
mander.
(5) Interfering with, refusing information re-
quired h\, making any fal.se or misleading state-
ment orally or in writing to, or defrauding any
member of the Occupation Forces in a matter of
official concern.
(C ) Acts on behalf or in support of any organi-
zation dissolved or declared illegal by the Supreme
Commander.
(7) Conspiracies to commit, or acts which aid
or abet the connnission of any of the foregoing-
offenses.
MAY 12, 1946
809
In addition to members of the Oc-cuijation
Forces all persons attached to or accompanying the
Occupation Forces are entitled to the protection
of the foregoing provisions.
The Japanese criminal courts were permitted to
continue the exercise of jurisdiction over "acts
prejudicial to the objectives of the occupation inso-
far as such acts constitute violations of Japanese
law"'. The right was reserved to transfer juris-
diction over such matters to the military occupa-
tion courts at any time. This reservation assured
the Occupation Forces the right of ultimate de-
cision as to jurisdiction over acts involving both
violations of SCAP directives and Japanese ordi-
nances or laws.
6. The Commanding General of the Eighth
Army and the Commander of the Fifth Fleet
were directed by a Letter Order of 19 February
to appoint military occupation courts including
military commissions and provost courts, to exe-
cute the provisions of the directive of 19 Febru-
ary. Commissions were authorized to impose im-
prisonment at hard labor not to exceed five years
or a fine not to exceed ¥75,000, or both.
Other penalties which may be imposed include
imprisonment in lieu of payment of fines; expul-
sion ; and confiscation, padlocking and forfeiture
of estates.
7. The Japanese Government was deprived of
authority to arrest nationals of the United Nations
except in areas where Allied troops are not actu-
ally present on duty or when directed to do so by
the Supreme Commander or his authorized sub-
ordinates. Such incidents will be immediately
reported to the nearest Allied military authority.
8. Another directive of 19 February informed
the Japanese Government that sentences imposed
by Japanese criminal courts on Koreans and other
nationals of countries formerly under the domina-
tion of Japan would be subject to review by SCAP.
Review will be made onlj' when the defendant
has exhausted remedies reasonably available to
him in the Japanese courts and when he furnishes
adequate proof of intention to return to his home-
land.
Exerche of Civil Jurisdiction
9. A directive of 26 February deprived Japa-
nese courts of civil jurisdiction over nationals of
the United Nations or organizations (including
corijorations) attached to or accompanying the
Occupation Forces.
10. The trial of civil cases affecting nationals
of the United Nations other than those accom-
panying or attached to the Occupation Forces
will be subject to supervision and review by SCAP.
The Japanese Government was required to I'e-
port to the Supreme Commander all civil cases
hereafter instituted or now pending affecting na-
tionals of the United Nations and their organiza-
tions or corporations. The reports will include
nationalities of the parties, nature of the case,
relief sought and the status of the proceedings.
11. Civil claims against nationals of the United
Nations will be presented to the Japanese Govern-
ment which in turn will forward them to SCAP
Headquarters for decision if they appear to be meri-
torious and are supported by projier evidence.
Apprehension of War Criminals
12. During February seven directives were is-
sued ordering the Japanese Government to appre-
hend 51 persons suspected of war crimes and to
deliver them to Sugamo Prison. Forty-six of
those listed were accused of atrocities and offenses
against nationals of the United Nations who had
been confined in Japanese POW camps.
Orders for Apprehension
February 1946
Date and File Number of
Directive
AG 383.7 (3 Feb 46) CIS
AG 000.5 (3 Feb 46) LS
SCAPIN
695
AG 312.4 (6 Feb 46) CIS
AG 000.5 (18 Feb 46) CIS
715
749
Persons Ordered
-Apprehended
Burmese Embassy
officials
696 6 Army officers
Soldiers
Civilian
Lieutenant General
Burmese Ambassa-
dor Designate
Manchurian Am-
bassador Desig-
nate
AG 000.5 (22 Feb 46) LS 762 7 Army officers
8 Navy officers
9 Soldiers
3 Civilians
1 Army officer
11
1
1
1
1
AG 000.5 (22 Feb 46) LS 763
Total
51
Persons Apprehended
13. Suspected war criminals of all categories
arrested during February numbered 118, bringing
the total niunber of persons interned in Sugamo
Prison to 623. Twelve of those interned durine;
810
the month are being hekl for charges other than
war crimes.
14. The names and identifications of important
persons interned chiring the month are :
^fasa!luki' Tani: Aiubassailor, Councillor at the Embassy
at Mauehukuo, Miiiistei- to Austria and Hungary, Minister-
at-Large in China, Vice Minister of Foreign Affairs, Presi-
dent of the Board of Information, Foreign Minister in the
Tojo Cabinet, and Ambassador to Nanking.
Shioshichi Kamisago: Major General, Commanding Gen-
eral of the Military Police in Formosa in January 1945.
Ichiro Morimoto: Major General, suspected of commit-
ting atrocities in the Philippine Islands.
SiKhiDiii Shimomiira: General, War Minister August 23,
194.5, Commander of North China Area Army November
1944 to August 1&4.5.
Takaji Wachi: Lieutenant General, succeeded Maeda as
Chief of Staff on General Homma's Staff, Chief of Staff for
Tanaka and Kureda, General Headquarters, Philippines.
Kiiioliil-e Kinrai/iichi: Major General, Chief Justice of
the I'hilippine Supreme Court.
Kcnsiike Isogui: Lieutenant General, Conuuander of the
10th Division, Viceroy of Hongkong January 193S.
15. A former second lieti tenant in the Japanese
Army voluntarily came to SCAP Headquarters
and confessed to certain atrocity acts he had com-
mitted against members of the Allied Armed
Forces. After his confession had been reduced to
writing he was arrested and delivered to Sugamo
Prison to await formal charges.
Investigation of Wak Criminals
16. Special teams are continuing investigations
of atrocities committed against B-29 fliers shot
DEPARTMENT OF STATE BULLETIN
down during combat missions and against prison-
ers of war aboard Japanese ships and in POW
camps. Cases in investigation files are classified as
follows :
Number
Type of Cases
POW camps 81
B-29 fliers 52
Kempei-tai (Military Police) 21
Miscellaneous - . 75
Total 229
17. Investigation of 81 cases was finished during
the month bringing the total of completed cases to
147. A record containing the confessions of a
Lieutenant General and his entire staff relating to
atrocities which they had either ordered or con-
doned was completed.
PliOSECUTION OF MlI.ITARY WaK CrIMIXALS
18. Seven additional war atrocity cases were re-
ferred to the Eighth Army for trial and 18 cases
which were prepared for trial now await assign-
ment. A total of 223 cases are in the process of
preparation for trial.
19. Ten persons were tried for war atrocity
crimes by military commissions at Yokohama dur-
ing February. Six were individual trials and one
was a common trial with four defendants. One of
the 10 defendants was found not guilty. Three
entered pleas of guilty. The results of the trials
are given in the table below :
Trials of War Atrocity Cases
February 1946
Name of Accused
Official Capacity
Rank
Period of Trial
Honda, Hiroji
POW Camp Commandant
Capt
19 Jan-2 Feb
Fukuhara, Isao
POW Camp Commandant
Capt
29 Jan-I4 Feb
IsHiDA, Kitaro
POW Camp Quartermaster
Cpl
31 Jan-5 Feb
Aon A, Shigeru
POW Camp Medical Off
Capt
6 Feb-22 Feb
Odeishi, Shigamaru
Medical Corps
Pvt
9 Feb-9 Feb
Sakamoto, Yukiehi
POW Camp Commandant
Capt
13 Feb-25 Feb
Sakagami, Motoiehi •
Medical Corps
Cpl
23 Feb-26 Feb
Chihara, Naraichi "
POW Camp Guard
Cpl
23 Feb-26 Feb
Ono, Teruo «
POW Camp Interpreter
Pvt
23 Feb-26 Feb
Kato, Shunsuke '
Medical Corps
Pvt
23 Feb-26 Feb
Results of Trial
Sentenced to 30 years at hard labor
Sentenced to death by hanging
Sentenced to 30 years at hard labor
Sentenced to 10 years at hard labor
Plea: Guilty. Sentenced to 10
years at hard labor
Sentenced to life imprisonment
Sentenced to 2 years at hard labor
Plea: Guilty. Sentenced to 6
years at hard labor
Plea: Guilty. Sentenced to 2
years at hard labor
Plea: Not Guilty
Verdict: Not guilty
a The first common trial of war crimiuals in Japan
MAY 12, 1946
811
Fir^t Plea of Guilty
20. For the first time a plea of guilty was re-
ceived in the trial of a war crimes case on 9 Feb-
ruary. A private in the IMedical Corps of the
Japanese Army admitted the charge and ]0 of its
12 specifications, two specifications having been
withdrawn previously for lack of evidence. Under
existing rules the prosecution is required to make
out a prima facie case as to each specification de-
spite an unqualified plea of guilty.
The prosecution complied with this rule by in-
troducing affidavits in support of each of the speci-
fications. The defense consisted of a plea for
mercy based upon the youth of the defendant and
his frankness in confessing his guilt. The accused
was found guilty by the Commission and sentenced
to 10 years imprisonment at hard labor.
First Common Ti'ial
21. The first common trial of war criminals in
Japan commenced on 23 February and was com-
pleted on 26 February. The defense offered no
objection to the joint trial of four defendants who
were charged with the commission of separate but
similar offenses. Each accused was arraigned sep-
arately. Two entered pleas of guilty and two
pleaded not guilty.
The prosecution rested after introducing evi-
dence against all four defendants. Motions for
acquittal made in the case of two who had pleaded
not guilty were denied after oral argument. The
defense opened by placing on the witness stand
the two defendants who had pleaded guilty. Both
endeavored to minimize the effects of their con-
duct. At the conclusion of this evidence the Com-
mission stated that it would consider the cases
of these two defendants separately.
The prosecution and defense made arguments on
the length of sentence to be imposed. After de-
liberation the Commission announced a verdict
of guilty and imposed sentence. The two defend-
ants who had admitted their guilt were ordered
removed from the courtroom.
The trial then proceeded with the testimony of
the third defendant and a character witness who
testified in his behalf. The Commission sustained
a motion of the defense for a separate argument
and judgment on this defendant before proceeding
with the trial of the fourth. The third defendant
was acquitted and ordered lemoved from the court-
room.
The fourth defendant took the stand as the sole
witness in his behalf. After hearing arguments
on both sides the Commission deliberated and re-
turned a verdict of guilty.
Review of 0 onvictioiis
22. Preparations were made for the review of
war crimes trials and for the handling of other
supplemental proceedings. Letters and petitions
were received requesting clemency for war crimi-
nals convicted in the Philippine Islands and in
Japan. These requests will be held for considera-
tion with review of the official trial records and
for submission to the confirming authority.
23. An informal review written in the case of
the United States vs. Tsuchii/a, the first case tried
in Japan, upheld the legality of the conviction and
sentence.
International Prosecution of War Criminals
21. By General Orders No. 7 of 15 February
the Supreme Commander appointed nine members
of the International Military Tribunal for the Far
East, implementing paragraph 10 of the Potsdam
Declaration of 26 July 1915, the Instrument of
Surrender of 2 September 1945 and Article 2 of
the Charter of the Tribunal 19 January 1946. This
action confirmed the nominations previously made
by participating countries. The names of those
apiDointed and the countries they represent are:
Commonwealth of Australia
Dominion of Canada
Republic of China
Republic of France
United Kingdom of Great
Britain and Northern
Ireland
Kingdom of the Netherlands
Dominion of New Zealand
Union of Soviet Socialist
Republics
United States of America
Sir William Flood Webb
Mr. Justice F. Stuart
McDougall
Mr. Ju-Ao Mei
Mr. Henri Reimburger
Lord Patrick
Prof. Bernard Victor A.
Roling
Mr. .Justice Erima Har-
vey Northcroft
Mr. Justice I. M. Zar-
yanov
Mr. Justice John P. Hig-
gins
25. Sir William Flood Webb, Chief Justice of
the Supreme Court of Queensland, Commonwealth
of Australia, was designated as President of the
Tribunal and Colonel Vern Walbridge was ap-
pointed General Secretary. The Marshal and
Adjutant were also named.
26. Members from Australia, Canada, the Neth-
872
DEPARTMENT OF STATE BULLETIN
erlands. New Zealand and the United States
arrived in Tokyo.
27. Trials will be held in the War Ministry
Building at Tokyo. The main hall is being rear-
ranged so that the accused will face the Tribunal
as in the Nuremberg trials. The defendants will
be brought to trial each day from Sugamo Prison
where they are detained. Bai'racks are being re-
modeled for temporary housing of witnesses.
Prosecution Staff
28. The International Prosecution Staff has
nearly completed its organization with the arrival
of a majority of the associate counsel. The part
Mhich each will take in the trials has been decided.
An executive committee is studying completed in-
vestigations to determine the individuals who will
be charged with crimes and the form of indictment
to be used. The War Ministry Building will be
headquarters for the prosecution.
29. The following associate counsel have arrived :
Commonwealth of Australia Mr. Justice Alan James
Mansfield
Dominion of Canada Brigadier Henry Grattou
Nolan
Repuljlie of China Judge Che-Chun Hsiang
United Kingdom of Great Mr. Arthur Comyns Carr
Britain and Northern Ire-
land
Dominion of New Zealand Brigadier Roland Henry
Quilliam
The following associate counsel are expected in
the early part of March :
Republic of France M. Jean Lambert
Kingdom of the Nether- Dr. W. G. F. BorgerhofC
lands Mulder
Commonwealth of the Phil- Mr. Pedro Lopez
ippines
Union of Soviet Socialist Minister S. A. Golunsky
Republics
Discussions on Korean Cultural and Educational Problems
The Department announced to the press on
April 3 that a group of six Koreans would arrive
in Washington early in April to establish sources
of cultural and technical aid in initiating a pro-
gram of training which would involve the ex-
change of students and instructors between this
country and Korea. The members of the group,
all graduates of American as well as Korean uni-
versities, are Miss Whang Kyung Koh and
Messrs. Lee Wook Chang, Hoon Lincoln Kim,
Byron R. S. Koo, Ki Ho Lah, and Chang Wook
Moon.
The group is coming to the United States under
the sponsorship of the United States Military
Government in Korea. This is one of tlie meas-
ures being taken by the military government to
aid the Korean peoi^le in establishing a free edu-
cational system, withheld from them by the Japa-
nese during their 35 years of domination over
Korea. Other measures already undertaken by
the military government in Korea have been the
a])pointinent of a Korean as Director of Educa-
tion, the rewriting of Korean textbooks, increas-
ing of salaries paid to Korean teachers, and
ti'aining of Korean teachers to take the places
formerly held by Japanese.
The Department of State, under its program
of cultural coopei'ation. will assist the Koreans
in planning their itinerary and in making contact
with interested departments of this Government,
private educational foundations, and institutions.
Mr. William Franklin Sands, who has long ex-
perience in Korean affairs, is now serving as a
consultant with the Office of International In-
formation and Cultural Affairs of the Depart-
ment of State and will accompany the group of
Koreans on its travels in this country.
On April 17, the Department announced to the
press that discussions concerning Korean cultural
and educational problems are now under way be-
tween members of the Korean Educational Com-
mission to the United States and officials of the
United States Government and private institu-
tions.
This commission has been sent to the LTnited
States for a stay of approximately three months
to make a survey of educational conditions and
make recommendations to the military govern-
ment of Korea for establishing a long-range cul-
tural and educational program to meet require-
ments of the Korean people for training tech-
nicians in all phases of public life. Because of the
severe discrimination imposed upon the Koreans
by their Japanese overlords during the years of
Japanese domination, there is an acute shortage
of trained skills among Koreans.
I
Calendar of
Council of Foreign Ministers:
Meeting of Deputies
Meeting of Foreign Ministers
Far Eastern Commission
Allied-Swiss Xegotiations for German External Assets
Fifth 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
International Cotton Advisory Committee
FAO: Special Meeting on Urgent Food Problems
The United Nations:
Security Council
Military Staff Committee
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 Assemblv: Second Part of First Session
Meetings
London
Paris
January 18 — temporarily
adjourned
April 2.5
Washington
February 26
Washington
March 18
^lontevideo
April 5
Cleveland
Toledo
April 23-29
Mav 2
Paris
April 24
Paris
April 24
Montreal
May 21
Washington
May 7
Washington
May 20-28
New York
March 25
New York
:March 25
London
April 8
The Hague
April 18
New York
April 29
New York
Mav 25
New York
June 19
New York
September 3
The dates in the calendar are as of May 5.
Activities and Developments
United States Delegation to the First Meeting
of the Metal Trades Committee of ILO.^ The
Acting Secretary of State announced on May 1
that the President has approved the folhiwing
persons, nominated in concurrence with the Sec-
retary of Labor, as members of the U.S. Delega-
tion.
i;fi::3i!o — 46 3
This meeting is similar in scope, \yith respect to
die metal trades industries, to the meeting of the
International Labor Organization Committee on
Iron and Steel, which concluded its first session
(m April 2it at Cleveland. Ohio.
'Released to the press May 1.
813
814
DEPARTMENT OF STATE BILLETIN
Representing the Government of the United
States
Mi'mhers
Edward L, Cushniiiu, State Director, United States
Employment Service, Department of Labor, De-
troit, Mich.
Oscar W. Meier, Chief, Special Economic Relations
Division, Office of ^\'orkl Trade Policy, Dejiart-
nient of Commerce.
Admaer
Victor S. Baril, Labor Economist, Wage Analysis
Branch, Bureau of Labor Statistics, Department
of Labor.
Representing the Employers or the United
States
Memhers
George W. Eomney, Manager, Automobile Manufac-
turers' Association, Detroit, Mich.
A. M. Roehlen, Director of Industrial and Public Re-
lations, Douglas Aircraft Company, Inc., Santa
Monica, Calif.
Representing the Woricers of the United
States
Memhera
James A. Erownlow, Secretary-Treasurer, Metal
Trades Department, American Federation of
Labor, Washington, D.C.
Richard T. Leonard, Vice President, United Auto-
mobile, Aircraft and Agricultural Implement
Workers of America, Detroit, Mich.
Announcement on Positions in FAO Secre-
tariat. The Director (jeneral of the Food and
Agriculture Organization of the United Nations
has sent a ineinorandinn to member governments
announcing the principal positions in the FAO
Secretariat, to which it is hoped to make appoint-
ments within the next few months. These posi-
tions are in the professional grades I (commenc-
ing salary $10,000) through V (commencing sal-
ary $4,500). Applications should be made to the
Director General not later than June 30, 1946.
The positions are in the fields of :
Administration — including senior administrative
officers, press officers, editorial assistants, and
finance officer;
Nutrition and food management — including the
science of nutrition, experience in making die-
tary surveys and food-consumption studies,
l^ublic-health nutrition work, and food tech-
nology;
AgrK'ULture — incliuling the natural sciences as
applied to agriculture; crop husbandry and ani-
mal husbandry; agricidtural education and
extension ;
Fisheries — including scientific, technical, and
economic aspects of the fishing industry and fish
trade; marine biology and stock conservation;
l^rocessing and preservation of fishery products ;
Forestry — including the science and practice of
forestry and utilization of forestry products;
silviculture and forest management ;
Economics and marketincv — including both gen-
eral and agricultural economics; the economics
of agricultural production and government pro-
grams; economics of marketing, distribution,
and food-processing industries; international
trade jDolicy ; and the relationship of rural and
industrial economy to the economic development
of backward areas;
Statistics^ — including the general field of statistics
as well as the special fields of statistics of agri-
cultural, fishery, and forestry production ; mar-
keting, consumption, jirices; and international
trade.
For all posts, ability to speak and write fluently
at least one of the two working languages ( English
and French) is necessary and ability to read and
understand the other working language will be an
advantage.
Apjjiication blanks and further details may
be secured from the FAO, 2000 Massachusetts
Avenue, AYashington, D.C.
Opening Meetings of the Commissions of the
Economic and Social Council. At Hunter Col
lege, building no. 1 (Gillet Hall), Henri Laugier,
Assistant Secretary-General for Social Affairs,
presided on April 29 over the opening meeting of :
The Temporary Social Commission
The Commission on Human Rights
The Subcommission on the Status of Women
A. D. K. Owen, Assistant Secretary-General for
Economic Affairs, presided over the opening meet-
ing of :
The Statistical Commission
The Temiiorary Transport and Communica-
tions Conmiission
The Econonuc and Employment Conunission
A provisional agenda was submitted to each of
the Commissions.
The Record of the Week
Draft Treaty on the Disarmament and Demilitarization of Germany
Preamble
On June 5, 1945, the Governments of the United
States, the Union of Soviet Socialist Republics,
the United Kingdom, and the French Republic
declared their intention to effect the total disarm-
ament and demobilization of Germany. In sub-
stantial measure this intention has already been
fulfilled. Nothing shall prevent or delay the
completion of the process. It remains to ensure
that the total disarmament and demilitarization
of Germany will be enforced as long as the peace
and security of the world may require. Only this
assurance will permit the nations of Europe and
the world to return single-mindedly to the habits
of peace. To achieve this objective, the Govern-
ments of the United States, the Union of Soviet
Socialist Republics, the United Kingdom, and the
French Republic agree to engage in the common
undertaking defined in this treaty.
A?' tide I.
The high contracting parties agree that they
shall take steps jointly to ensure that:
(a) All German armed forces, including land,
air, anti-aircraft and naval .forces, all para-mili-
tary forces, such as the SS, the SA and the Ges-
tapo, and all organizations auxiliary to the fore-
going shall be and shall remain completely dis-
armed, demobilized and disbanded.
(b) The German general staff and the staffs
of any j^ara-military organizations shall be and
.shall remain disbanded.
(e) No German military or para-military or-
ganization in any form or guise shall be permitted
in Germany.
(d) The manufacture, production, or importa-
tion of military equipment in Germanj? shall be
prevented. In particular, the high contracting
parties .shall prevent the manufacture, produc-
tion, or importation of:
(1) All ai-ms, ammunition, explosives, military
equipment, military stores and supplies and other
implements of war of all kinds;
(•2) All fissionable materials for any purpose,
except under conditions approved by the high
contracting parties ;
(3) All naval vessels of all classes, both surface
and submarine, and auxiliary naval-craft;
(Jr) All aircraft of all kinds, aviation equip-
ment and devices, and equipment for anti-aircraft
defense.
(e) The establishment, utilization or operation
for military purposes of any of the following shall
lae prevented :
(1) All military structures, installations and
establishments, including; but not limited to mili-
tary air fields, seaplane bases and naval bases, mili-
tary and naval storage depots, permanent and
temporary land and coast fortifications, fortresses
and other fortified areas ;
{•2) All factories, plants, shops, research insti-
tutions, laboratories, testing stations, technical
data, patents, plans, drawings and inventions, de-
signed or intended to produce or to facilitate the
production of items listed in paragraph (d) above.
(/) Under conditions which may be established
by the high contracting parties, the demilitariza-
tion and disarmament required by this article shall
be subject of the following exceptions and to nn
others :
( 1 ) The formation and employment of such
detachments of German civil police, and their
' Submitted by the United States to the Council of For-
eign Mlnistei-s at the Apr. 29 meeting and subsequently
released to the press in Paris. Released to the press by
the Department of State on Apr. 30.
875
816
DEPARTMEJST OF STATE BULLETIN
equipment with sucli t.vpes and quantities of im-
ported small arms, as may be essential to the main-
tenance of public security ; and
(2) The importation of minimum quantities of
those items listed in paragraph [d) (1) above,
such as explosives or ingredients of explosives,
whicli may be e,ssential for purposes of construc-
tion, mining, agriculture or for other peaceful
purposes.
Article II.
To implement the disarmament and demilitari-
zation provisions set forth in Article I, the high
contracting parties agree that they shall make
provision for a system of quadripartite inspection,
which shall become oi3erative upon the termination
of the Allied occupation of Germany. This sys-
tem of inspection shall be conducted through a
Commission of Control to be established by the
high contracting parties on a quadripartite basis.
The Commission of Control, through its officers
and agents, shall conduct, in any and all parts of
German territory, such inspections, incjuiries and
investigations as it may deem necessary to deter-
mine whether the disarmament and demilitariza-
tion provisions set forth in Article I are being-
observed.
Article III.
The high contracting parties agree that for the
duration of the period of Allied occupation of
Germany, they shall, through the Allied Control
Council and in their respective zones, enforce
strictly the disarmament and demilitarization pro-
visions set forth in Article I. They agree further
that the express acceptance by Germany of the
provisions of Articles I and II shall be an essen-
tial condition to the termination of Allied occupa-
tion of German territory.
Artic/c IV.
The Commission of Control provided for in
Article II shall keep the high contracting parties
and the Security Council of the United Nations
informed of the results of the inspections, inquiries
and investigations authoi-ized by that article. The
Conunission of Co]itr((l shall submit a report to the
high contracting i)arties whenever in the opinion
of a majority of the membei-s of the Commission,
it has reason to believe that a violation of the dis-
armament and demilitarization provisions of
Article I have occurred or is about to occur. In
conjunction with such report the Commission shall
submit a recommendation for action on the part
of the high contracting parties which appeal's ap-
propriate to a majority of the members of the
Commission. Upon receipt of such report and
reconnnendations, the high contracting parties
will, by common agreement, take such prompt
action — including action by air, sea or land
forces — as may be necessary to assure the immedi-
ate cessation or prevention of such violation or
attempted violation. The high contracting parties
shall innnediately report to the Security Council
of the United Nations the action taken or to be
taken.
The high contracting parties agree that, within
six months of the effective date of this treaty, they
sliall consult for the pui]iose of negotiating special
quadripartite agreements which shall provide in
the greatest practicable detail for inspection, in-
quiry and investigation by the Commission of Con-
trol. For the numbers and types of forces which
each party shall make available for purposes of
this treaty, for their degree of readiness and gen-
eral location, and for the nature of the facilities
and assistance which each shall provide. Such
special quadripartite agreements shall be subject
to ratification by the high contracting parties in
accordance with their respective constitutional
processes.
Article V.
This treaty shall be ratified by the high cont ract-
ing parties in accordance with their respective
constitutional processes. The ratifications shall be
deposited with the government of (blank), which
shall notify all the high contracting parties of each
deposit.
This treaty shall come into force upon the de-
posit of ratifications by each of the high contract-
ing parties. This treaty shall remain in force for
a period of 25 years from its effective date. The
high contracting parties agree to consult six
months before the date of exjnration of this treaty
for the purpose of determining whether the inter-
ests of international peace and security require its
renewal, with or without modification, or whether
the German people have so far progressed in the
reconstruction of their life on a democratic and
peaceful basis that the continued imposition of
the controls defined herein is no longer necessary.
MAY 12, 1946
8i:
Italian Government To Restore Property
of United Nations Nationals
[KolHiist'd t(i the ijress Apiil llil]
On April 9 tlio Italian (ioveiiunent ileseqncs-
tiated all [)ropert y in Italy belonging t(j nationals
of the United Nations. The amount of ])roperty
in Italy belonging to United States citizens and
corporations and affected l)v this action is esti-
mated at over $200,000,1 )()().
Under the procedure estaljlished, in cases in-
volving commercial or industrial concerns, real
estate and personal chattels, owners or their repre-
sentatives must l)e in Italy to take over deseques-
t rated property. In cases inv(jlving bank accounts,
securities, and valuables, the presence of owners
or legal representatives is not required. Where
owners or representatives are required to be in
Italy, it is suggested that they seek the advice and
assistance of American Consuls in Italy.
In order not to impede the restoration of prop-
erty to its rightful owners, questions of taxes and
charges on property restored, claims for malad-
ministration of property, and claims for war dam-
ages are being reserved for later settlement by
inter-governmental agreement. Owners, it is true,
can settle such matters directly with the Italian
Government but they may thereby prejudice their
rights under the inter-governmental agreement.
The provisions concerning desequestration are
contained in Italian decree 36 of February 1, l!)4r)
and Italian decree 140 of March 26, 19-1:6, which
were made etfective as of April 9 l>y the decree of
the President of the Council of Ministers of Italy
of that date.
The sequestrator of property is re(iuired to make
restoration to the owner or his representative im-
mediately upon request. If the propei'ty is not
returned within oO days of April 9 because the
owner is absent and unrepresented or unwilling to
accept his property back, the Italian Government
will appoint administrators to continue the cus-
tody of the property. These administrators may
lie the present sequestrators.
Legal representatives must have full power of
attorney, properly legalized. Where a change in
title to property has occurred since sequestration
the new owner must show proof of ownership. It
is suggested that co-heirs use the same legal rep-
resentative to avoid expense and delay.
The local Intendente di Finanza (Provincial
Treasury OfHcer) will supervise the procedure for
the restoration of the property and will also assure
the cancelation of the sequestration decree in the
provisional I'ecords.
At the time of the return of the property, a Ver-
bale di Riconsegna ( Instrument of Re.consign-
ment) will be tendered the owner or his legal rep-
resentative. This instrument will contain a list of
all items being returned. Before signiing the docu-
ment and accepting the restoration of property the
owners should insist upon inclusion of all other
intVniiKition pertinent to their particular cases;
and they should insist that statements of account,
balance sheets, schedules, inventories, etc., be pro-
duced and scrupulously checked against the actual
property. Any discrepancy should be explained
in writing.
In certain cases special procedui'es may be re-
(piired as where the sequestrator can not be found
or where property has disappeared or been trans-
ferred to a third party. In this situation where
])ropei'ty has been transferred to a third party, the
owner is entitled to cancellation of the instrument
of transfer. Where the property has been leased,
the lease may be terminated at the option of the
owner or be jjermitted to continue in foi'ce until the
end of the lease contract.
While the decrees provide that all exj)enses of
deseque.stration and restoration of desequestrated
pro]ierty will be borne by the Italian Government,
some question exists whether this includes the costs
of professional assistance.
In the following cases the presence of the (jwner
or legal representative is not required but applica-
tion may be made hj ordinary communication as
indicated:
1. Bank accounts transferred to ISTCAMBI
( National Institute for Foreign Exchange) will be
lestored to the original bank of deposit to which
(jwners should apply. Lire sums will be I'estoi'ed
in lii-e, sums in other currencies will be restored in
818
DEPARTMENT OF STATE BULLETIN
kind (dollar for dollar, etc.) and in orig^inal tj'pe
of account.
•2. Funds paid into ISTCAMBI by individuals
or institutions other than banks will be restored to
owner upon his request filed with the Bank of Italy,
wliich will deal with ISTCAMBI for the owner.
'■>. Bank accounts or other funds frozen in the
Bank of Italy or in other banks will be restored by
the bank concerned upon request.
4. Funds from a sale by SICEA (Italian For-
eign Commerce Corporation, number 1, Via delle
Marche, Rome) of propert_v of United States
nationals will be made available to owner upon
filing of application. SICEA obtained these
funds from the sale of goods belonging to United
States nationals in Italian ports and ships.
5. Securities and valuables held by the Bank of
Italy or other banks will be restored upon applica-
tion with tlie bank concerned.
Myron C. Taylor to Return to
Italy as President's Personal
Representative
STATEMENT BY THE PRESIDENT
[Released to the press by the White House May 3]
I lutve asked Mr. jMyron C. Taylor to return to
Italy as my personal representative to His Holiness
the Pope, with the rank of Ambassador.
After the cessation of hostilities Mr. Taylor
came home for consultation and report. I have
studied his report of his several audiences with
the Pope with interest and with profit. I feel
that he can continue to render helpful service to
the cause of Christian civilization if. at my in-
stance from time to time, he resumes his duties in
Italy. As on his previous trips Mr. Taylor will
confer not only with the Pope but with other lead-
ers in the spiritual world and in the world of poli-
tics and secular affairs as he travels through Eu-
rope in the fulfilment of his mission.
The cessation of active fighting has left the
M-orld in a state of unrest. In many quarters we
witness lamentable conflicts of principle and
l^olicy. Out of all of this unrest and conflict, how-
ever, one conviction emerges as clear as the noon
day. It is that we shall establish an enduiini;-
l^eace only if we build it ujion Christian principles.
In the dark days of 19-iO President Roosevelt
sent Mr. Taylor to Italy as his personal representa-
tive. His mission was most helpful to the cause of
peace and in the alleviation of suffering brought
about by the most awful conflict in the annals of
mankind, and it will be. I am sure, equally useful
in the future.
There is no minimizing the gravity of the days
in which we live. I feel the necessity of having
for my guidance the counsel and cooperation of
all men and women of good will whether in reli-
gion, in government, or in the pursuits of everyday
life. I have therefore sought the advice of leaders
in religion of various convictions and allegiances,
not oidy in this country but from abroad. I feel
that all have a vital contribution to nmke. I shall
continue to welcome the counsel of such leaders
to the end that the voice of conscience may be heard
in the councils of nations us they seek a solution of
that age-old problem — the government of man.
Credit Arrangement With
Austria
[Released to the press May 3]
The Department of State announced on May
3 that, in carrying out the Moscow Declaration
of 1943 which pledged the Four Powers to open
the way for the Austrian people to find economic
security, a dollar credit arrangement of 10 million
dollars has been completed with the Government
of Austria for the purchase of American surplus
jjrojjerty abroad.
The agreement with the Austrian Governlnent
is designed to facilitate the reconstruction of
Austria by utilizing American surplus property
in Europe. The utilization of these resources has
hitherto been made impossible by the shortage of
dollars in Austria.
The present credit arrangement represents a
"credit ceiling"' and does not mean that the
Austrian Government will necessarily purchase up
to this total. All credit arrangements concluded
by the Office of the Foreign Liquidation Commis-
sioner provide for a rate of interest of 2-^^ percent
per annum payable annually with the principal
to be made in annual instalments.
MAY 12, 1946
819
Discussions Regarding Foreign Purchasing Missions
[Keleased to the press May 4]
Officers of the Depiirtiuent of State have recently
informed representatives of governments having
purchasing missions in this country that the
United States, wliile recognizing the vahiable
services performed by these missions during the
war emergency, nevertheless believes that they
shoidd be terminated by the end of the transition
period. There was also an exchange of views con-
cerning the operations of the missions pending
their termination. Conversations were held with
the representatives of the following governments:
Australia. Belgium. China, France, Greece, India,
Italy, Netherlands. New Zealand, Norway, Poland,
Portugal. Union of South Africa. Union of Soviet
Socialist Republics, and United Kingdom.
The policy of this Government, as explained to
the representatives of the foreign governments
concerned, favors the use of private commercial
channels in international trade. Although it is
recognized that during the transition period the
continuance of governmental participation in
trade may be required to bring about the prompt
reconversion of the economies of the world, sta-
bility of prices, and equitable distribution of avail-
able supplies, it was pointed out that it is the policy
of the United States that such state trading agen-
cies should conduct their trade in accordance with
usual commercial considerations.
With these policies in mind, the Department ex-
pressed the view that the missions shoidd limit
their ojaerations during the transition period to
the procurement of commodities necessary to meet
essential civilian requirements for relief and re-
habilitation. The Department also took the posi-
tion that purchasing missions should use noi'mal
trade channels to the maximum extent practicable
and that their purchasing methods sliould be in
accord with commercial considerations. The gov-
ernments having purchasing missions here were
also informed of the view of the United States
Government that, as the transition draws to a
close and the emergency need ceases, the wartime
purchasing missions should be terminated.
There was general concurrence with the policy
set forth by this Government. Several of the
representatives indicated that their government's
piu'chasing-mission activities had already been
considerably reduced and anticipated that before
the end of the year they would be completely dis-
banded.
With respect to the Union of Soviet Socialist
Republics, whose trade is conducted through en-
terprises which are public in character, the United
States expressed the view that, upon the termina-
tion of the wartime Soviet Purchasing Mission,
trade between the United States and the U.S.S.R.
should again be carried on by an agency or agen-
cies incorporated in one of the states of the United
States as was the case prior to the war.
Addresses and Broadcasts of the Week
Assistant Secretary Clavton
Willard L. Thorp
Deput}' to the Assistant Secretary for
Economic AflFairs
Francis H. Russell
Acting Director of the Office of Public
Affairs
Benjamin A. Cohen of Chile
United Nations Assistant Secretary-
General for Information
William T. Stone
Director of the Office of International
Information and Culttiral Affairs,
Department of State
Francis H. Russell
American International Economic In-
terests. See Department of State
press release 295 of May 1
The British Financial Agreement. See
Department of State press release
296 of May 1
On the subject of connnunications and
foreign policy. See Department
of State press release 299 of May 3
The Role of International Information
> Services. See Department of
State press release 297 of Maj- 2
Delivered before the 34th Annual
Meeting of the Chamber of Com-
- merce of the United States in
Atlantic City, X.J., on May 2
Delivered before the Chamber of Com-
merce of the State of New York
in New York, N.Y., on May 2
Delivered before the 16th Institute
for Education by Radio in Co-
lumbus, Ohio, on May 4
A radio program broadcast over the
NBC network on May 4
820
DEPARTMENT OF STATE BULLETIN
Foreign Liquidation
Commission Report
[Released to the press April 30]
Foreifiii Liquidation Coininissioner Thomas B.
McCabe today reported to Congress that during
the period ending March 31, 1946. the FLC has
realized $345.000,000 from tlie sale of surplus prop-
erty costing $1,02«,000,000 when it was new.
Property whose original cost was $3,521,000,000
has been declared surplus overseas and made avail-
able to the FLC by the Army and Xavy and other
owning agencies, McCabe stated in a quai'terly re-
ijort. He estimated that, in addition to the prop-
erty already declared surplus, potential surj)lus
remaining undeclared as of March 31 exceeded
$10,000,000,000. This estimate included, however,
property which might be abandoned, scrapped, or
returned to the United States and hence never
made available to the FLC for disposal.
"In view of the nature and condition of the
property involved," the report explained, "the
return on the surplus sold to date is extremely
good, and probably will show a higher percentage
of realization than will be jjossible on future sur-
plus disposals".
The 5-1-page report described the organization
and activities of the FLC from its start to March
31. 1916. Foreign disposal was transferi'ed from
the War Department to the State Department on
October 20, 1945.
Secretary of State Byrnes, in a letter transmit-
ting the report to Congress, said : "To those who
have dealt with the problems of foi'eign disposal,
one truth stands paramount — prompt, decisive
action is essential. Rapid deterioration of the
surpluses, the importance of relieving U. S. ti'oops
abroad of custodial responsibilities, aiid the ur-
gency of the need in many parts of the world all
point to a jirogram in which speed is the dominant
influence".
The re]iort pointed out that the FLC has also
transferred to UNRRA property involving an
original cost of approximately $146,000,000 at a
transfer value of $97,000,000, under authority of
Section 202 of the UNRRA Participation Appro-
priation Act of 1945.
^ Report to Coiigress on Foreiirn Siuplus 1 lispos.-il. April.
1046 (Dopai-tment of State).
Discussions on World Trade
Proposed
In answer to inquiries concerning statements
made on May 2 in the debate - on the British loan
to the effect that the United States w:is negotiating
with the British Government for tariff reductions,
a State Department spokesman said that :
No negotiations for tariff reductions are being
conducted between the LTnited States and the
British Government.
The Proposals for Expansion of World T rade
(inil Knijiloyment, published last December, recom-
mend that "members (of the proposed inter-
national trade organization) should enter into ar-
rangements for the substantial reduction of tariffs
and for the elimination of tariff' pi-eferences" as
\n\v{ of a general jirogram for the reduction of
trade barriers.
It was also announced last December that the
United States had invited 15 countries to partici-
))ate in such discussions. The United Kingdom is
(jiie of these countries.
No date has yet been set for these discussions.
These discussions, when they occur, will be con-
ducted under the Trade Agreements Act. The\-
will be preceded by public notice and regular hear-
ings before the Committee for Reciprocity Infor-
mation under that act. The tariff concessions to
be offered by the United States will be carefully
considered from the point of view of the whole
national interest, in the light of whatever ma3' be
developed at the hearings. Reductions will be
made in the future, as they have been in the past,
selectively, after full hearing and consideration,
with due regard for the interests of American
producers, and always in return for corresponding
concessions made bj' other countries.
" A congressional debate is in progress on the subject of
the financial agreement \yliieh was submitted by the Presi-
dent to (.'ongress for implementation. Senator Hugh
Butler asked on the Uoor of the Senate on M.a.v 2 whether
negotiations were in progress for taritT reductions between
the United States and the Tuited Kingdom.
MAY 12, 1946
821
Clearance Processes for Sale
of Classified Articles
[Rt'liascfl to the press April 29]
111 answer to inquiries regarding articles in the
press stating that American companies ai'e negoti-
ating for tlie sale of radar and other iinj)ortant war
seci'ets to a foreign power with State Department
consent, the Department issued the following state-
ment on April 29 :
Under the Espionage Act of 1917, anyone who
transmits to a foreign power or national an}- infor-
mation whicli may aifect the national security is
liable to prosecution. Accordingly many firms
wliich manufacture articles used in the mainte-
advisability of entering into contracts Avith for-
eign governments or nationals for the sale of these
articles or for the negotiation of licenses for the
nance of national security make inc[uiry of the War,
Navy, or State Departments 9s to the possibility or
manufacture of such articles in foreign countries.
As is well known, certain items contracted for by
the War and Navy Departments are classified as to
tlieir relative degree of importance in the mainte-
iiaace of national security. Before any such ar-
ticles may be sold or licenses negotiated for their
manufacture abroad, clearance must be obtained
from the War, Navy, and State Departments.
This applies exclusively to material classified by
the War and Navy Departments, which have
jurisdiction over classification procedure.
With the exception of certain material jointly
devek)i)ed by the United States and other countries,
no classified equipment in the electronic field has
been leleased for sale or for licensing for manufac-
lure abroad since the termination of the lend-lease
program. All electronic material made available
through lend-lease has been declassified.
Tlie Department has no legal authority to pre-
vent the sale or manufacture of unclassified mate-
rial abroad.
Ambassador Pauley To Study
Economic Problems in the
Far East'
[Released to the press Ma.v 2]
The Acting Secretary of State announced on
May 2 that Ambassador Edwin W. Pauley, per-
sonal rei^resentative of the President on repara-
tions matters, would leave at the end of the week
foi- the Far East at the request of the President and
tlie Secretary of State.
Acting Secretary Acheson emphasized that it is
the American objective to support and to promote
the unity and the economic development of China
and Korea, and at the same time to assure that they
will be economically independent of Japan.
Mr. Acheson stated that China must be enabled
to utilize to the full the natural resources and in-
dustries of Manchuria and that Korea must be in
a position to develop its own resources and indus-
tries if a long-range plan for the peaceful economy
of East Asia is to be worked out.
Mr. Pauley will make studies and investigations
with a view to recommending cooi'dinated and
rational programs for the healthy industrial and
economic development of Manchuria and Korea
and utilization of their natural resources in rela-
titm to reparations removals from Japan.
Mr. Pauley's conclusions at the termination of
his mission will be drawn from actual facts and a
meeting of minds. His approach will be based
upon the broader aspects of the American view-
point, which is based on a program of rehabilita-
tion of the Far East and is designed to enlarge
the area of opportunity for the millions who in-
habit that part of the globe.
The main purpose of tlie mission, said Mr. Ache-
st)ii, is to secure information and make recommen-
dations which will assist the United States Govern-
ment and its allies in planning a program for the
Far East which will contribute to the peace and
security of the Far East and of the whole world.
^ This announcement was read by the President at his
press conference on May 2. Tlie U. S. Reparations Mission
is i-oniposed of the following persons : Edwin W. Pauley,
iversonal representative of the President, with the rank
of Ambassador, and Chief of the U.S. Reparations Mis-
sion ; Martin T. Bennett, Industrial Engineer ; B. S. Berco-
viei, Information and Education ; G. S. Carter, Chief of
the Secretariat ; A. B. Einig, Industrial Consultant ; N. M.
Elias. ("hemieal Eiiftineer : Capt. M. E. Fenieal, AVar De-
partment (Iffiiial Photographer; Richard P. Gaynor,
Secretaiy to Jlr. I>:niley ; Riiphnel W. Green, .\dniinistra-
tive Clerk ; John P. Hurndall, Natural Resources Con-
stiltant ; Charles A. Karl, Administrative Assistant : Ernest
L. Klein, Special Assistant to Mr. Pauley ; Edwin Martin,
State Department Liaison : Sgt. John Matles, Interpreter-
Aide ; Col. William Mayer, War Department Liaison and
Adviser on China ; Benjamin C. Olsen, Administrative
Assistant ; Gen. George Schulgen, War Department Liaison
and Consultant; Earl L. Shaner, Iron and Steel Con-
sultant; Carleton E. Swift, Petroleum Geologist; Norman
Taylor, Mechanical I-^ngineer; H. M. Thorne, Oil-Shale
and Itetining Engineer.
822
DEPARTMENT OF STATE BULLETIN
Program for Philippine
Rehabilitation and Recovery
STATEMENT BY THE PRESIDENT
[Released to the press by the White House April 30]
I have today signed H.R. 5856 and S. 1610, the
two bills which constitute the heart of the pro-
gram for Philippine Rehabilitation and Recovery.
On October 6, 1943, President Roosevelt called
upon the Congress "to make provision to deter-
mine the adjustments necessary in tlie existing
jirovisions of law which govern the economic rela-
tions between the United States and the Philip-
pines so as to assist in making the Philippines, as
an independent nation, economically secure."
That recommendation was made in the heat and
desperation of struggle. It climaxed promises
made to the people of the Pliilippines that not only
would their land be liberated from the tyranny
of the enemy, but that they would be given their
full independence and would be rehabilitated
from the ravages of war.
The enactment of H.R. 5856 and S. 1610 into
law marks the fulfillment of the last of these
promises.
In S. 1610, we are making provision for war
damage payments to those who suffered war losses
in the Philippines, and for the reconstruction and
rehabilitation of public property. We are also
undertaking to reliabilitate and develop those
technical skills and services which will be essential
for the survival and growth of the Philippines as
an independent nation.
In H.R. 5856, we are providing for the estab-
lishment, through an executive agreement, of an
unprecedented plan of preferential trade relations
with the Philippines to last for twenty-eight years.
We have never entered into similar agreement
with any foreign government. Preferential trade
relations are alien to the policy of this administra-
tion. In substance, however, H.R. 5856 is a re-
habilitation act. Its sole purpose and guiding
pliilosophy is to furnish a formula for the rehal)ili-
tation of tlie I'hiiippine national economy tlirougli
the encouragement of private enterprise and pri-
vate initiative. H.R. 5856 provides an economic
function for tiie buildings and factories which will
be restored and rebuilt under the terms of S. 1610.
While it is unfortunate that the Congress saw fit
to provide in S. 1610 that no war damage payment
in excess of $500 shall be made until the executive
agreement shall have been entered into between
the President of the United States and the Presi-
dent of the Pliilippines under the terms of H.R.
5856, to all practical purposes this provision is
surplusage, as the benefits which will flow under
the enactment of the two bills are so great as to en-
sure execution of the executiA'e agreement by the
Republic of the Philippines.
This is unprecedented legislation for tlie United
States, but the situation itself is unprecedented.
We are about to grant political independence to
these people. Today we are giving them a chance
to preserve and develop their nation on a tem-
porary economic basis of trade preferences.
Political independence without economic stability
would be totally ineffective.
I am happy to approve these two measures,
which give notice to tiie people of the Philippines
and to the entire world that we are redeeming our
promises to the heroic Philippine people.
American Vessels To Transport
Food to Foreign Countries
[Released to the press b.y the White House May 3]
Jolin W. Snyder, Director of AVar Mobilization
and Reconversion, on May 3 took steps to assist
European, Middle East, and Far Eastern countries
in their food-supply problems by making available
to them small American vessels for fishing and
food tran.sport.
Mr. Snyder asked the State Department, in co-
operation with the War Assets Administration,
the War Shipping Administration, and the War
and Navy Dejiartments, to make every effort to
see that these countries and their nationals be
given the opportunity to acquire usable small ves-
.sels up to 1,000-ton capacity wliich have been or
can be declared surplus. These vessels can be used
for fishing, the transport of food and other com-
modities between ports or harbors, and in coast-
wise trade.
MAY 12, 1946
823
Convention With Canada for the Development, Protection,
and Conservation of the Fisheries of the Great Lakes ^
MESSAGE FROM THE PRESIDENT
The White House, April 22, WJfi.
To the Senate of the United States:
AVith a view to receiving the advice and consent
of the Senate to ratification, I transmit herewith
a convention between the United States of America
and Canada for the development, protection, and
conservation of the fisheries of the Great Lakes,
signed at Washington, April 2, 1946. The conven-
tion has the approval of the Department of State
and the Department of the Interior.
I transmit also for the information of the Senate
a report made to me by the Secretary of State with
respect to the convention and a copy of the report
of the International Board of Inquiry for the
(ireat Lakes Fisheries.
Harry S. Truman.
REPORT OF THE SECRETARY OF STATE
April 19, 19^6.
The President,
The White House.
The undersigned, the Secretary of State, has
the honor to lay before the President, with a view
to its transmission to the Senate to receive the ad-
vice and consent of that body to ratification, if
liis judgment approve thereof, a convention be-
tween the United States of America and Canada
relating to the fisheries of the Great Lakes and
their connecting waters, signed at Washington
April 2, 1946.
The convention lias been negotiated with the
objective of providing for the development, pro-
tection, and conservation of the fisheries of the
(Jreat Lakes through cooperation between and
juint action by the governmental agencies o,f the
United States and Canada concerned with the ad-
ministration of these fisheries.
As a means for achieving this objective, the
convention provides for the establishment of an
International Commission for the Great Lakes
Fisheries. The establishment of the Commission
will provide an effective solution to the need for
coordinated action by the various governments
having responsibilities relating to the fisheries of
(he Great Lakes. At the jiresent time, 11 govern-
ments have responsibilities relating to those fish-
eries— the Governments of the United States of
America and Canada, the governments of the
' Senate Executive C, 79th Cong.
States of New York, Pennsylvania, Ohio. Michi-
gan, Indiana, Illinois, Wisconsin, and Minnesota,
and the government of the Province of Ontario —
and there are in existence no effective means for
coordinating their efforts to discharge these re-
sponsibilities.
For many years the Governments of the United
States of America and Canada, of the eight States
of the United States bordering on the Great
Lakes, and of the Province of Ontario, as well as
the fishermen of the area, have been concerned
over the decline in abundance of fish in the Great
Lakes, particularlj^ the more desirable species.
Cooperation of the various governments con-
cerned has long been urged as indispensable to
effective and orderly development of the fisheries,
not only in promoting adeciuate research into the
causes of the decline in the fisheries but also in
assuring that progressive and constructive regu-
lations founded on scientific research and insti-
tuted by one jurisdiction may not be nullified by
failure of an adjacent jurisdiction to adopt simi-
lar or complementary measures.
The need for cooperative action in order to
preserve and develop the fisheries of the Great
Lakes was recognized as early as 1875, when a
report of the State of Michigan urged the neces-
sity for uniform laws. During the succeeding 71
years a number of interstate and international
conferences have been held with a view to obtain-
ing coordination, but in each case the efforts failed
to achieve the desired cooperative action. How-
824
DEPARTMENT OF STATE BULLETIN
ever, persons interested in the Great Lakes con-
tinnetl to urge tlie need for effective cooperative
measures for the benefit of the fisheries, and the
matter has received the continuing consideration
of the several governments concerned.
In 1938 the Council of State Governments
called meetings of 60 State, Federal, and Provin-
cial officials to study the problem. These meet-
ings resulted in a recommendation that an inter-
national board of inquiry be established to
consider and I'econnnend measures for the conser-
vation of the Great Lakes fisheries.
The Governments of the United States of Amei'-
ica and Canada, under an agreement signed Febru-
ai"y 29, 1940, established the International Board
of Inquiry for the Great Lakes Fisheries to study
the taking of fish in the Great Lakes, to make a re-
port of its investigations to the two Governments,
and to make recommendations as to methods for
preserving and developing the fisheries of the
Great Lakes. During the course of its investiga-
tions, the Board of Inquiry compiled and analyzed
data on tlie take of fish, studied the fluctuations in
the fisheries, and examined into the possible causes
for the variations in quantities and species of fish
taken. In addition, the views of public officials,
commercial fishermen, and sportsmen were solic-
ited with respect to fluctuations in the abundance
of the various species of fish and the causes of the
fluctuations, with respect to the specific measures
which should be taken l)y the governments to im-
prove the fishing, and with respect to the form of
governmental organization which would be most
effective in regulating and rebuilding the fislieries.
In all, 29 public hearings were held throughout the
Great Lakes region, in which some 1,500 public
officials, commercial fislaermen, and sportsmen par-
ticipated. On August 6, 1942, the Board of In-
quiry submitted its report to the Governments
of the United States of America and Canada,
calling attention to the need for an effective
program for the conservation and development
of the Gr'eat Lakes fisheries and recommending
joint action for that purpose by the governments
concerned. A copy of the report of the Board
of Inquiry is transmitted herewith.
The Department of State, in collaboration with
the Fish and Wildlife Service of the Department
of the Interior, made a careful study of the report
and recommendations of the Board of Inquir}'. It
was evident from consideration given the matter
that measures with resj)e(t to tlic fisheries of the
Great Lakes could be made effective only through
coordinated action of all the governments con-
cerned— Federal, State, and Provincial. At the
invitation of the Department of State, representa-
tives of the Governors of the eight Great Lakes
States, including State conservation and legal of-
ficers, advised the Department at various stages
in the development of the convention.
The provisions of the convention may be sum-
marized as follows :
Article I defines the waters to which the conven-
tion applies.
Article II provides for the establishment of an
International Commission for the Great Lakes
Fisheries, to be composed of a United States sec-
tion and a Canadian section and for the appoint-
ment of an advisory committee for each lake con-
sisting of representatives designated by eacli State
or Province, as the case may be, having jurisdic-
tion on the lake. The Commission, the national
sections, and the advisory committees are to be con-
stituted in accordance with and governed by the
provisions of the schedule annexed to the conven-
tion.
Article III provides that the Commission shall
formulate and recouunend specific research pro-
grams of observations and studies of the Great
Lakes fisheries to be carried out by the appropriate
agencies of the two Governments in collaboration
with the States of the United States concerned and
the Province of Ontario as well as with other in-
stitutions and facilities.
Article IV requires that the Commission under-
take to develop a compi'ehensive plan for the ef-
fective management of the fishery resources of the
Great Lakes for the purpose of securing the maxi-
mum use of those resources consistent with their
Ijerpetuation. This article provides also that the
Commission may make regulations fixing —
(«) Open and closed seasons ;
(b) Open and closed waters;
(c) The size limits for each species of fish;
( d ) The time, methods, and intensity of fishing ;
(e) The type and specifications of the nets,
gear, and apparatus and appliances which may be
used ;
(/) The methods of measurement;
{g) The extent and natiu'e of stocking opera-
tions;
(k) The introduction of new species; and
(/) Catch returns and other statistical records
MAY 12, 1946
825
as may be iiecessan- tu give effect to tiie purposes
of this convention.
Pui'suant to the provisions of article IV, the
United States section alone, i.e., the Amei-ican
members of the Commission, will act in matters
relating to Lake Michigan. Regulations affecting
fishii\g in United States waters will not become
effective until apjjroved by the President of the
United States ; and regulations affecting fishing in
Canadian waters will not become effective until
api^roved by the Governor General in Council.
Paragraph 10 of the schedule annexed to the con-
A'ention provides that regulations made and ap-
proved under article IV shall not become effective
until 1 year from the date when the convention
comes into force.
Article V I'equires that the Governments of the
United States of America and Canada provide for
the enforcement of the regulations in their own
respective waters. It is provided, however, that
in United States waters the regulations for each
lake may be enforced, in the first instance, by the
States bordering thereon within their respective
jui'isdictions. With respect to Canadian waters
the regulations may be enforced in the first in-
stance by the Province of Ontario. The Commis-
sion is required to keep itself informed as to the
effectiveness of enforcement and to report to the
two Governments on unsatisfactorj^ conditions of
enforcement. Upon the receipt of complaints, the
Federal Government concerned agrees to take ap-
jjropriate action to insure proper enforcement.
Article VI provides that nothing in the conven-
tion shall be construed as preventing any of the
governments concerned from making or enforcing
such laws or regulations within their respective
jurisdictions as will give further protection to the
fisheries of the Great Lakes j^rovided that such
laws or regulations are not inconsistent with the
provisions of the convention or with the regula-
tions made and approved thereunder.
Article VII provides for the prohibition of the
shipment, transport, purchase, sale, import, or
export of fish taken from the Great Lakes in viola-
tion of the regulations made and approved under
the convention.
Article VIII provides that licenses to fish in the
waters of the Great Lakes within the juiisdiction
of any State or Province may continue to be issued
l)y such State or Province in accordance with its
laws and sul>ject to such fees as it may fix. If
licensing is necessary to give effect to the regula-
tions of the Connnission. and if any State or
Province fails to establish or maintain adequate
licensing, the appropriate Federal Government
may take necessary measures to provide such
licensing, in addition to that of the State or
Province, as is recjuired.
Article IX contains provisions regarding the
enactment and enforcement of such legislation as
may be necessary to give effect to the provisions of
the convention and the regulations made and
approved thereunder, with appropriate penalties
for violations.
Article X provides for the ratification of the
convention, the exchange of ratifications, and the
entry into force on the date of the exchange of
ratifications. This article provides also for the
continuance in force of the convention for a period
of 10 years and thereafter until 1 year from the
day on which either of the high contracting parties
shall give notice to the other high contracting
party of an intention of ternunating the conven-
tion.
Eespectfully submitted.
James F. Byrnes.
(Enclosures : (1) Great Lakes fisheries conven-
tion, (2) report of the International Board of
Inquiry for the Great Lakes Fisheries.^)
Prime Minister of Australia
To Visit in U.S.
[Released to the press May 3]
The Prime Minister of Australia, Joseph Bene-
dict Chifley, will visit Washington as a guest of
the Government between May 6 and May 10.
The Prime Minister is at present in London at-
tending the Conference of Prime Ministei-s of the
British Commonwealth and is returning to Aus-
tralia by way of the United States. He will pro-
ceed from Washington to Tokyo to meet General
MacArthur.
' Not printed.
826
DEPARTMENT OF STATE BULLETIN
Consideration of Japanese Reparations
[Released to the press April 25]
The. United States Government is currently en-
gaged in jjreparing proposals for submittal to the
member governments of the Far Eastern Com-
mission with respect to the handling of repara-
tions from Japan. These proposals envisage the
establishment of an inter-Allied body to allocate
Japanese assets declared available for reparations
among the countries which participated in the
war against Japan.
It is expected that, as in the case of Germany,
Japanese holdings abroad and certain industrial
facilities in Japan will be utilized for reparations
purposes. All transfers of such industrial facili-
ties will be made to the governments whose claims,
based on war costs, war damage, and similar fac-
tors, are recognized.
In the case of the United States, as soon as
necessary congressional and other authority has
been secured, information will be released by the
State Department as to
1. the classes of claims which will be entitled to
compensation out of the proceeds of reparations,
and i^rocedure for filing such claims;
2. the procedure for submittal by private per-
sons and organizations of requests for industrial
equipment allocated to the United States Gov-
ernment as reparations;
3. the procedure for sales of industrial equip-
ment and other assets received by this Govern-
ment as reparations from Japan.
Until rei^arations policies have been agreed to
on an inter-Allied basis no action can be taken
by this Government to secure and distribute Jap-
anese assets on reparations account.
The Department
Appointment of William L. Langer as
Special Assistant to the Secretary
[Released to the press April 29]
The Aetiug Secretary of State announced on April 2&
the apiiointment of William L. Langer to be Special Assist-
ant to the Secretary of State in charge of Research and
Intelligence.
Appointment of Officers
Carl B. Spaeth and Gustavo Duran as Special A.ssistants
to the Assistant Secretary for American Kepulilic Affairs,
effective December 19, 194.J and .Tanuary 18, 194(5, respec-
tively.
Vernon L. Phelps as Adviser on European Commercial
Affairs in the Division of Commercial Policy, effective
February 25, 1946.
John K. Galbraith as Director of the Office of Economic
Security Policy, effective February 1, 1946.
Charles P. Kindlebergei- as Chief of tlie Division of
German and .\ustrian Economic Affairs, effective Febru-
ary 1, 1046.
Ralph H. Ackerman as Chief of the Division of Foreign
Reporting Services, effective February 25, 1946.
Carlisle H. Humelsine as Director of the Office of De-
partmental Administration, effective March 11, 1946.
John E. Peurifoy as Special Assistant to the Under
Secretary, effective April 22, 1946.
G. Hayden Raynor as Special Assistant to the Director
of the Office of European Affairs, effective April 22, 1946.
Bennett Boskey as Special -Vdviser to the Division of
Economic Security Controls, effective IMarch 19, 1946.
Alan N. Steyne as Special Assistant to the Director of
the Office of International Trade Policy, effective April
29, 1946.
William E. DeCourcy as Chief of the Foreign Service
Inspectors Corps, effective April 15, 1946.
George R. Fearing, Jr., as Director of the Office of In-
telligence Collection and Dissemination, effective April
29, 1046.
William D. Wright as CTilef of the Division of Central
Services, effective February 24, 1946.
Isaac N. P. Stol^es as Associate Chief of the Division of
International Organization Affairs, effective April 29, 1946.
Haywood P. Martin as Executive Officer in the Office of
the Foreign Service, effective April 29, 1946.
Intelligence Objectives
1S.S.5 AdvisoeY Committee on Intelligence (ACI) : (Ef-
fective 5-1-46)
I Functions. The Special Assistant to the Secretary
for Research and Intelligence shall consult with ACI with
respect to tlie:
MAY 12, 1946
827
A Establishment iind oooidination of Departmental
intelligence objectives and policies.
B Implementation of Depaitmental iwlicy with re-
spect to the National Intelligence Authority.'
C Participation by tlie Department in any centralized
operations or projects which the Director of the National
Intelligence Anthority may propose.
II Membership. ACI is composed of the Special Assist-
ant to the Secretary for Research and Intelligence, as
Chairman : the Assi.stant Secretary for European, Far East-
ern, Near Eastern, and African Affairs; the A.ssistant Sec-
retary for American Kepublic Affairs; and the Assistant
Secretary for Administration.
III Meetings. The Committee will determine the time
and place of its meetings and its procedures.
133.20 Office of Inteixigence Coordination and Liaison
(OCL) : (Effective 5-1-46)
I FtTNCTioNS. Subject to appropriate policy coordina-
tion by the Advisory Committee on Intelligence, as provided
In Departmental Regulation 1S;3.5, OCL is responsible, un-
der the general direction of the Special Assistant to the
Seeretar.v for Research and Intelligence, and in collabora-
tion with the Office of Intelligence Collection and Dissemi-
nation (0('D), for the performance of the following func-
tions :
A Representing all interested elements of the Depart-
ment on the staff of the National Intelligence Authority.
B Preparing, in cooperation with the geographic and
economic Offices, si>ecial intelligence estimates for the Sec-
retary and the Under Secretary, the Assistant Secretaries,
and for the National Intelligence Authority.
C Establishing and maintaining standards of research
and analysis throughout the Department.
I) Formulating, in consultation with the geographic
and economic Otfice.s, a Departmental program for basic
research, and coordinating and stimulating the execution
thereof.
E Oi'ganizing and supervising projects and research
cutting across the lines of the geographic and economic
Offices.
F Conducting specialized research on economic or
other technical subjects.
G Maintaining a central clearing house of informa-
tion i-egarding research studies prepared or [tlanned any-
where in the Department.
H Maintaining liaison with other agencies of the Gov-
ernment, and with private institutions, for the purpose of
utilizing all possible research resources to meet the De-
partment's needs.
I Collecting, evaluating, analyzing, and interpreting
foreign maps and other cartograijhic intelligence ; main-
taining a comprehensive collection of maps, atlases, gaz-
eteers, and other cartographic research material ; and
preparing new maps as required.
133.30 Office of Intelligence Collection and Dissemina-
tion (OCD) ; (Effective 1-1-46)
I Functions. OCD shall be responsible, under the
general direction of the Special Assistant to the Secretary
for Research and Intelligence, for ;
A Acquiring and distributing Intelligence source
materials.
B Maintaining, cataloging, and indexing the central
collection of intelligence materials and reports of the
Department.
C Presenting and distributing finished intelligence.
II Organization. OCD shall be composed of the fol-
lowing organization units, with routing symbols as
indicated :
A Office of the Director (OCD)
B Division of Intelligence Acquisition and Distribu-
tion (IAD)
C Intelligence Reference Division ( REF )
D Division of Biographic Intelligence (BI)
E Presentation Division (PN)
III Functions of the Office of the Direictor. The
Office of the Director of OCD shall be responsible for coor-
dinating and directing the activities of the component Divi-
sions of the Office. In addition, it shall, in accordance with
assignments determined by tlie Director of OCD in coojier-
ation with appropriate officials, be responsible for seeing
that intelligence jjersonnel attached to diplomatic and con-
sular posts are utilized in assembling data and conducting
research in foreign countries. Such assignments will also
be made in close cooperation with the Office of the Foreign
Service (OFS) in order to achieve maximum utilization of
the research facilities of both the Foreign Service and the
intelligence staff abroad. (Revised 5-1-46)
140.1 Geographic Offices: (Effective 5-1-46)
I Divisions of Research. The Divisions of re.search
in the several geograpliic Offices are as follows :
A Division of Research for Near East and Africa
(DRN) in the Office of Near Eastern and African Af-
fairs (NEA).
B Division of Research for Far East (DRF) in the
Office of Far Eastern Affairs (FE).
C Divi-sion of Research for Europe (DRE) in the
Office of Euroi)ean Affairs (EUR).
D Division of Researeli for American Republics
(DRA) In the Office of American Republic Affairs
(ARA).
II Functions. Each of the Divisions of research
shall be responsible, under the general direction of the
Director of its Office, for providing evaluated positive in-
formation on the foreign countries under the jurisdiction
of its Office as an aid to the formulation and implemen-
tation of foreign poli,cy. In discharging this responsi-
bility, each of the Divisions of research shall be respon-
sible, specifically and within its assigned area, for:
A Preparing sjiecial Intelligence estimates as re-
quired.
B Collal>orating with the Office of Intelligence Co-
ordination and Liaison (OCL) in tlie formulation of a
Departmental program of basic research.
C Planning and implementing a program of research
and analysis, integrated with the Departmental program,
to meet the neeils of its Office and of the Department.
' Bulletin of Feb. 3, 1946, p. 174.
828
D Maiutainiug .stamlanls of research and analysis
established by OCL.
E Collaborating with OCIj and other Divisions of
i-esearch in projects cutting across the lines of the several
geographic and economic Offices.
F Collaborating with the Otflce of Intelligence Col-
lection and Dissemination lOCD) in planning the De-
partmental ijrograni of information procurement.
Ill Organization. Each Division of research .shall be
organized in geographic sections corresponding to the
geographic Divisions of its Office.
Confirmations
On April 12, 1!)46. the Senate confirmed the nomination
of William D. Pawley to be Ambassador Extraordinary and
Plenipotentiary of the United States to Brazil.
On April 22, 1946, the Senate confirmed the nomination
of George V. Allen to be Ambassador Extraordinary and
I'lenipotentiary of the United States to Iran.
On April 26, 1&46 the Senate confirmed the nomina-
tions of Joseph Flack to be Ambassador Extraordinary
DEPARTMENT OF STATE BULLETIN
and I'lenipotentiary of the United States to Kolivia.
J. Rives Childs to be Envoy Extraordinary and Minister
Plenipotentiary of the United States to the Kingdom of
Saudi Arabia, and Edwin P. Stanton to be Envoy Ex-
traordinary and Minister Plenipotentiary of the United
States to Siam.
Ou April 29, 1946 the Senate confirmed the nomination
of Lowell C. Pinkerton to be Envoy Extraordinary and
Minister Plenipotentiary of the United States to Iraq.
On Jlay 1, 1946 the Senate confirmed the nomination of
Prentice Cooper to be Ambassador Extraordinary and
Plenipotentiary of the United States to Pern.
Diplomatic and Consvilar Offices
The American I'jmbassy at Chungking, China, was closed
on April 23, 1946 and was reestablished as a combined
office at Nanking, China, on April 24. The post at Chung-
king was reestablished as a Consulate on April 26.
The Consulate at Saigon, French Indochina, was opened
to the public on April 27, 1946.
Erratum
In BiLi.ETiN of April 7. 1946, pages .">6S and 570, in foot-
note 1, substitute "25th Meeting of the Security Council"
for "26th Meeting of the Security Council".
PUeilSHED WITH APPROVAL OF OtRECTOR OF BUREAIJ OF THE BUDGET
U. S. GOVERNMENT PRINTING OFFICE; 1946
THE DEPARTMENT OF STATE
umin
VOL. XIV, NO. 359 MAY 19, 1946
U. S. Responsibilities in the European Food Crisis "
Articlelby JAMES A. STILLWELL page 831
Private International Air Law: 14th Plenary
Session of CITEJA
Article ))y STEPHEN LATCH FORI) . page 835
The West Indian Conference
Article by ELIZABETH H. ARMSTRONG page 840
For complete coutents ^ v^&^^a^^sM^? ^
see inside cover
U. o. iUrtniiiii."
THE DEPARTMENT OF STATE
BULLETIN
Vol. XIV -No. 359-
• Publication 253."^
*Nt,<, o» "■
May 19, 1946
For Bale by the Superintendent of Documents
U. S. Government Printing Office
Washington 25. D. C.
Subscription:
52 issues, $3.50; stng!e copy, 10 cents
Special offer: 13 weeks for $1.00
(renewable only on yearly basis)
The Department of State BULLETIK,
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 with
information on developments in the
field of foreign relations and on the
uorli of the Department of State and
the Foreign Service. The BULLETIIS
includes press releases on foreign
policy issued by the Jf hite House and
the Department, and statements and
addresses made by the President and
by the Secretary of Stale and other
officers of the Department, as tvell as
special articles on various phases of
international affairs and thefunctions
of the Department. Information con-
cerning treaties and international
agreements touhich 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
legislative material in thefieldofinter-
ruitional relations, are listed currently.
JUN 19 1946
Contents
U.S. Responsibilities in the European Food Crisis. Page
Article by James A. Stilhvell 831
Private International Air Law: 14th Plenary Session of
CITEJA.
Article by Stephen Latchford 835
Report on the West Indian Conference.
Article by Elizabeth H. Armstrong 840
Trial of Far Eastern War Criminals:
The Indictment 846
Japanese War Leaders Indicted for Waging Wars of Aggres-
sion and Committing Wholesale Murder 847
The United Nations
The Security Council:
Summary Statement by the Secretary-General of Matters
of Which the Security Council is Seized and of the
Stage Reached in Their Consideration 849
Statement by the Delegations of the Four Sponsoring
Governments on Voting Procedure in the Security
Council 851
Discussion of Soviet-Iranian Matter at 40th Meeting:
Remarks by the U.S. Representative 853
Letter From the Iranian Ambassador to the President of
the Security Council 854
Proposal by the U.S. for the Establishment of a Subcommission
on Freedom of Information 855
United Nations War Crimes Commission: Resignation of
Joseph V. Hodgson 855
International Organizations and Conferences
Calendar of Meetings 856
Activities and Developments:
First Meeting of the International Fund and Bank .... 856
Conference on Non-Repatriable Victims of German Action . 857
PICAO 857
UNRRA Council: Fourth Session 857
FAO: Special Meeting on Urgent Food Problems 858
The Record of the Week
First Anniversary of V-E Day: Statement by the President . 859
The Inter-American Military Cooperation Act: Letter From
the President to the Congress 859
Addresses of the Week 860
Exchange of Messages on the Food Crisis in India:
Continuation of Combined Food Board Operations: Joint
Statement by the President and the Prime Ministers of
Great Britain and Canada 861
International Short- Wave Broadcasting Committee 862
*Anglo-American Rice Commission 863
♦Agreement Proposed With U.K. for Use of Leased Bases by
Civil Aircraft 864
Invitations Extended for Witness of Atomic-Bomb Tests . . 864
British Officials To Discuss Food Crisis With the President . 864
* Treaty Information.
(Continued on page 87 S)
U. S. Responsibilities in the European Food Crisis
Article by JAMES A. STILLWELL
MOKE THAN 100,000,000 people in Europe, and
at least as many in Asia, are now on the
verge of starvation. Unfortunately the horrors of
war do not end with the shooting, and there can be
no real peace in the world before we mobilize to de-
feat famine as we mobilized to defeat tyranny.
The people of Europe flooded their fields and de-
stroyed their bridges in order to help us defeat the
common enemy. Allied air forces concentrated
many bombs on continental railways and high-
ways, marshaling yards and locomotive factories,
so that opposition could be smashed and our troops
could move forward. The problem of helping our
Allies reconstruct their devastated lands and de-
velop an atmosphere in which the democratic spirit
may flourish is clearly one of joint responsibility.
The world's food shortages are now so serious
that every country must survey its own needs in
relation to those of less fortunate countries. The
world food shortage is now so alarming that all
nations must scale down the consumption and
shai'e the deficit if mass starvation is to be averted.
Hungry jjeople are not reasonable people. Their
thoughts are concerned with their own misery and
particularly with the tortured cries of their hun-
gry children. They are easy victims of mass hys-
teria. When people become frightened elements
of a mob, democratic precepts mean nothing.
Only a few short months ago the stated import
requirements of wheat for the deficit areas of the
world were 17,000,000 tons for the first six months
of 1946, but the severity of the drought in south-
eastern Europe and Mediterranean countries
turned out to be much greater than was realized.
Even greater has been the disappointment in the
collections from farmers and the conunercialization
of crops. Only a fraction of the amount that
should have been collected from farmers in order
to feed urban cities came under government con-
trol. Black markets, hoarding, feeding to live-
stock at a time when maximum efforts should have
been made to mobilize supplies for feeding human
beings, lack of interior transportation facilities —
all these were responsible for the crisis that de-
veloped at the end of last year and that threatens
to assume catastrophic dimensions this year.
Never during the past 40 or 50 years have so
many areas been hit simultaneously by severe
drought. During the months of November, De-
cember, January, and February the crop news
from India, South Africa, and various areas in
southeast Asia became progressively worse. Fail-
ure of the monsoon in India was accompanied
by a number of other extraordinarily unfavorable
developments which greatly reduced the prospects
of a favoi'able crop.
On the other hand, exportable supplies from
many countries failed to materialize in antici-
pated quantities. As a result the world import re-
quirements are now over 20,000,000 tons of grain.
The surplus-producing areas will have to exert
extraordinary efforts to provide even 11,000,000
tons before the next liarvest. This amount leaves
a total deficit of about 9,000,000 tons. The prob-
lem created by this deficit is the responsibility of
the whole world. It is obvious that the supply-
ing nations cannot do the job alone. Distribution
must be improved in every country and the fullest
use must be made of indigenous stocks and pro-
duction.
The United States, however, is the largest wheat-
surplus area. We are also fortunate to have here
a variety of other foods available for our own
consumption. As always, the greatest responsi-
bility falls to those who have the greatest re-
sources. People in the war-torn areas who have
watched the United States mobilize and send
across the ocean the greatest armada of tanks and
planes and ships that the world has ever seen can-
Mr. Stillwell is Adviser on Supplies in War Areas in the
OflSce of International Trade Policy, Department of State.
831
832
DEPARTMENT OF STATE BULLETIN
not understand why it is^ not jxjssible for us to
ship them any quantity of food that may be
needed. They reason that since we so successfully
supplied the world's largest expeditionary forces
and at the same time furnished tremendous quan-
tities of both military and civilian supplies to our
Allies, surely we can meet the present civilian de-
mands for food.
Up to now we have done a very creditable job.
Since D-Day our total exports of food and coal
alone have amounted to more than 28,000,000 tons.
Coal is as essential to economic existence in Europe
as wheat. In pre-war times the United States
shipped less than 50,000 tons of coal a year to
Europe; in the month of March we shipped
2,040,000 tons to the same area. In the first three
months of 1946 we have shipped over 5,500,000
tons of coal to the war-torn areas. To ship tliat
amount we have had to utilize port facilities that
were not designed for loading coal ships. We are
even shipping coal from Utah via Long Beach.
California, to Euroj^e. Unfortunately, our ship-
ments of coal for April dropped to less than 800,-
000 tons.
Even though we are exporting more wlieat a
month now than we exi)orted a year before the
war it is not enough. Last December we an-
nounced our intentions to provide 6,000,000 tons
of wheat to the deficit areas in the first six months
of 1946. That is 1,000,000 tons a month, but
in the first three months our shipments totaled
only 2,630,000 tons and our shipments in April
were only 582.000 tons. In ordinary times a
shortage of 650,000 tons in the shipment of
wheat — spread over a four-month period — would
not be so bad, but today it is tragic. In
January it was anticipated that the other major
supplying countries would ship at least 5,000,000
tons of wheat in the first half of this year. It
appears now that both Canada and Australia will
achieve their quotas but Argentina has not ex-
ported the amount anticipated. Even if all the
supplying countries succeed in sliipjiing the total
of the original quotas, the world import deficit
would still be about 9,000,000 tons. Unless this
deficit can be greatly decreased mass starvation
will most certainly develop in some areas.
None of us would be willing to accept the task
of deciding who shall starve. It has always been
the policy of this Govermnent to feed our Allies
first — but we cannot sentence our enemies to
starvation.
The food crisis threatens to undermine the very
foundation of order upon which we hoped to build
world-wide peace. There is only one prevention
for this threatening catastrophe — the shipment of
every possible ton of food to the areas of most
urgent need during the next few months. All
supplying countries, then, must greatly increase
the present rate of shipments. Certainly the
United States must not fail to meet its moral ob-
ligations. The American people have shown an
overwhehning willingness to do the job. Every
jjublic-opinion jjoll has clearly indicated that will-
ingness. Moreover, most of the citizens realize
that the meat consumj^tion in this country has
increased about 33l^ percent and that bread con-
smnption lias increased by about 15 percent over
the pre-war level. They are willing to reduce
consumption to pre-war levels, but they need the
(iovernment's help. This help is already being
given in the case of fats and oils and meats where
the Government sets aside a certain proportion of
production for foreign exi:)ort.
For the purpose of establishing an emergency
conservation program in this country, President
Truman requested several outstanding citizens in-
cluding former President Hoover and the former
War Food Administrator, Chester Davis, to estab-
lish a Famine Emergency Committee. The state-
ment of world import requirements has grown by
leaps and bounds because of continued droughts in
the various crop-growing areas of the world until
it now appears that over 21,000,000 tons of grain
will have to be shipped into the deficit areas in
order to maintain a very minimum diet until the
next crops are harvested. Under present condi-
tions it is apparent that the major supplying
countries will be able to procure and ship no more
than 11,000,000 tons. Under present circum-
stances this deficit amounts to 10,000,000 tons even
in the event that some of the importing countries
might possibly reduce their rations still further
and thereby cut down their requirements for im-
ported grain. It is not conceivable that the total
requirements could be reduced l)y more than
1,000,000 or 2,000,000 tons.
The fact that it now appears that we will export
less than 5,000,000 tons of grain from the United
States during the first lialf of 1046 is proof enough
that real action is necessary not only on the part
of the Government but also on the part of every
citizen of this country. The Famine Emergency
Committee has asked the American people to re-
i
MAY 19, 1946
833
duce their consumption of bread and other cereal
pro(hicts by 40 jjercent and to reduce their con-
sumption of fats and oils by 20 percent in order
that there may be enough supplies left in our
stocks to meet our export commitments.
This committee has formulated guiding prin-
ciples for the voluntary conservation of food. The
Department of Agriculture's Information Section
has published information which will be of help,
not only for the conservation of wheat, but also-
for fats and oils and other foods as well. This
information is designed for various groups and
makes valuable suggestions to farmers, house-
wives, wholesalers, and retailers who want to co-
operate. Suggestions are made on how bread may
be conserved, for if every American will save two
slices of bread a day, there will be enough to give
20,000,000 starving people their daily bread for
the next six months. Suggestions are made on the
saving of fats and oils, for it is estimated that a
teaspoon of fat a day saved by every man, woman,
and school child in the United States will mean
a total saving of at least 1,000,000 pounds of fat
a day which could be exported to the war-torn
areas.
The American people, no doubt, are both will-
ing and anxious to make more sacrifice.s in order
to provide additional food to the starving people.
The American people are not going to be satisfied
with anything short of the maximum effort on
the part of our Goveiiiment and every citizen of
the United States to provide and transport every
possible ton of food to the people of the war-torn
areas between now and the time the new crops are
harvested.
Grains are the backbone of a large pait of the
world's diet. In addition to the question of prefer-
ence, grains, particularly wheat, are much easier
to ship than other foods. From the financial point
of view they are also cheaper. Increased grain
shipments are, therefore, the only way of solving
the short-run problem, that is, the problem of
preventing starvation between now and the next
harvest.
This short-run problem is the one about which
President Truman spoke on February 6,^ and which
Mr. Hoover and the Famine Emergency Commit-
tee are striving to solve through the conservation
campaign. It is important that we cooperate to
the fullest with this voluntary campaign. It is
also important that we do not allow our remain-
ing wheat stocks to become dissipated. The time
is too short to institute a rationing system for the
mid-summer. It will be necessary to withdraw
grain from the distribution level if we are to
prevent a further excessive dissipation of our
dwindling supplies.
Even with these new measures, however, a most
vigorous ixirchasing program must be carried di-
rectly to the farms on a house-to-house canvass
basis if the quantities of wheat and corn required
are to be secured. In addition, the full coopera-
tion of the millers, food processors and bakers, as
well as all of the farmers of this country, is essen-
tial to assure the successful attainment of the ex-
port goals announced.
We must not overlook the longer-range prob-
lem— a world food shortage is likely to exist for the
next two or more years. Even though nature may
be kinder to us next year than this year, the short-
age of fertilizer and seed and the problem of soil
depletion and lack of adequate machinery and man-
power are such that subnormal crops must be
expected. The Emergency Economic Committee
for Europe, an emergency organization of the
governments of westein Europe, has been meet-
ing in London with the Director General of the
United Nations Food and Agriculture Organiza-
tion in an effort to tackle some of the long-run,
as well as the immediate, problems. They have
been discussing informally the best means of col-
lecting, analyzing, and disseminating statistical,
economic, and scientific information pertinent to
the work of the Food and Agriculture Organiza-
tion. Only the European area has been consid-
ered at this meeting, but similar meetings are
jjlanned in other parts of the world to discuss
problems of other areas such as the Far East and
the Americas.
The United Nations Food and Agriculture Or-
ganization plans to meet in Washington beginning
May 20 with a view to coordinating efforts to meet
world food needs in the winter of 1946-47 and
throughout the following year.
To speed the movement of wheat from the farms
in this country, the Department of Agriculture
on April 3 announced that it would buy wheat
from farmers, for immediate delivery to the Com-
modity Credit Corporation, at the market price on
any later date the seller might elect on or before
March 31, 1947 ; and on April 19 it added a bonus of
' Bulletin of Feh. 17, 1946, p. 246.
834
DEPARTMENT OF STATE BULLETIN
30 cents a bushel if delivered before May 25. This
should eliminate any tendency to hold present
wheat stocks in anticipation of higher prices. I
believe that most of our American farmers would
release their wheat without consideration for
price — if they realized the seriousness of the
situation.
Accordingly, the Secretary of Agriculture has
announced additional Government restrictions
which are designed to make it possible for this
Government to ship a total of 3,300,000 tons of
grain to the deficit areas by June 30. These new
measures include further restriction upon the in-
ventories of millers and food manufacturers and
provide for the Government's securing any stocks
in excess of 21 days' supply which such manufac-
turers may hold. The new orders also limit the
amount of wheat that can be used for domestic
food processing to 75 percent of the amount so
processed in comparable months of last year. This
order will directly reduce the amount of bread
which is being made available to the American
consumer by over 25 percent since the mills of this
country are presently operating at a higher rate
than they were in the same period last year.
Tlie recent order issued by the Department of
Agriculture on April 19 will reduce the domestic
consumption of wheat in this country. This order
does not affect the production of flour for export,
but will limit the amount of flour to be distributed
domestically in all channels to 75 percent of nor-
mal.
The first of these measures will bring more
wheat to market. The second will reduce the
amount of flour available to the American con-
sumer. These two measures supi^lement the Presi-
dent's nine-point program of February 6 and the
measures taken to implement it. The President's
nine-point program includes :
1. Campaign to conserve food — e specially
bread — by consumers, retailers, and bakers.
2. Stopping use of wheat and limiting use of
other grains for alcohol and beer. Saving : 20,000,-
000 bushels of grain by June 30.
3. Extracting more flour from wheat (80 per-
cent instead of 72 percent) and limiting distribu-
tion of flour. Saving : 25,000,000 bushels of wheat
by June 30.
4. Control over inventories of wheat and flour.
5. Rail priorities for wheat, corn, meat, and
other essential foods.
6. Control over exports of wheat and flour.
7. Export of 365,000 tons of fats and oils, 1.6
billion pounds of meat, and increase in exports of
dairy products, particularly cheese and evaporated
milk.
8. Additional shipping for food to Europe and
for movement of Philippine copra (for cocoanut
oil).
9. Conservation of grain used for feeding live-
stock.
The following measures were announced on
April 19 :
1. The Government is requiring millers to re-
duce the production of wheat flour for use in this
country to 75 percent of the amount they dis-
tributed for that purpose in the corresponding
months last j'ear.
2. Food manufacturers are required to limit
their use of wheat to 75 percent of the amounts
they used in the same months of 1945.
3. Millers and food manufacturers having in-
ventories of wheat in excess of an amount neces-
sary to operate 21 days will not be permitted to
grind unless they make this excess wheat or flour
equivalent available to the Government.
4. The fourth measure, a bonus of 30 cents a
bushel on wheat delivered under the certificate
plan before May 25, is to encourage immediate
delivery of increased amounts of wheat. Our ship-
ments abroad lagged badly in April — and we are
detei'mined to meet our goals.
5. The Department of Agriculture is inaug-
urating a corn-purchase program in order to divert
more corn from use as livestock feed to use as
human food. In buying for this purpose, the
Department will pay producers, until fui'ther
notice, a bonus of 30 cents a bushel above the mar-
ket price on the date of delivery.
6. This Government ofi^ers to buy an unlimited
amount of oatmeal from the millers of the United
States. Whole oats will also be purchased for
relief shipment.
In addition the Office of Defense Transportation
has given transportation priorities to foods that
are to be shipped abroad.
The Office of Price Administration has agreed
to a 10-percent reduction in the weight of bread
with no lowering of bakers' price ceilings. How-
ever, the sale of "underweight" bread in many
(^Contiiiiicd on page So})
MAY 19, 1946
835
Private International Air Law:
Fourteenth Plenary Session of CITEJA
Article by STEPHEN LATCHFORD '
THE 14TII PLENARY SESSION of the CITEJA
meetings which were held in Paris from Janu-
ary 22 to 29, 1916 — was tlie first session to be held
by the CITEJA since the outbreak of the war.= An
unusually large number of countries were repre-
sented. Prior to the war, the average attendance
was by representatives of from 15 to 20 countries.
According to a list fui-nished by the Secretary
General of the CITEJA, 34 countries were repre-
sented at the Januarj' 1946 meetings as follows:
Afghanistan, Argentina, Australia, Belgium, Bra-
zil, Bulgaria, Canada, Chile, China, Czechoslova-
kia, Denmark, Dominican Republic, Egypt,
France, Great Britain, Greece, Haiti, Iran, Italy,
Lebanon, Luxembourg, Mexico, the Netherlands,
Peru, Poland, Portugal, Rumania, Spain, Sweden,
Switzerland, Syria, Turkey, United States, and
Yugoslavia.^ Of the countries listed, Afghanis-
tan, Australia, Brazil, Mexico, Rumania, and Yu-
goslavia were represented by observers. Albert
Roper, Secretary General of PICAO and o,f
CINA, and E. R. Marlin, liaison officer of PICAO,
also participated in the meetings.
The United States Delegation consisted of the
following members:
Stephen Latchford, Chairman of the Delega-
tion ;
Arnold W. Knauth, Member of the United States
Section of CITEJA, and Chairman of the Ad-
visory Committee to the United States Section;
Emory T. Nunneley, Jr., Assistant General
Counsel, Civil Aeronautics Board;
Howard B. Railey, Civil Air Attache, American
Embassy, Paris.
The large attendance at the January 194G meet-
ings of the CITEJA was, it is believed, the result
of two factors : First, Resolution No. VII of the
International Civil Aviation Conference held in
Chicago in November and December 1944, in which
it was recommended that the various countries rep-
i-esented at Chicago give consideration to the de-
sirability of bringing about the resumption of the
CITEJA sessions and of appointing legal experts
to attend the CITEJA meetings ; and second, spe-
cial efforts made by the T'rench Government to in-
terest as many countries as possible in having rep-
resentation at the January 1946 meetings.
The CITEJA had an unusually extensive agenda
because of the fact that it considered not only im-
portant questions affecting the reorganization of
the CITEJA activities, but also the provisions of
proposed international conventions dealing with
specific jDroblems in connection with the develop-
ment of private international air law. The
CITEJA develops its projects through four com-
missions, known as the First, Second, Third, and
Fourth Commissions, which are, in effect, subcom-
mittees. Several projects wei-e completed by some
of these conunissions at their meetings in January
1946, and immediately thereafter proposed inter-
national conventions based on these completed
projects were adopted by the CITEJA in plenary
session.
Resolution VII of the Chicago Civil Aviation
Conference of 1944 also recommended that con-
' Mr. Latchford is Adviser ou Air Law, Aviation Divi-
sion, Office of Transport and Communications Policy, De-
partment of State, and Chairman of the United States
Section of the CITEJA.
''The Comity International Technique d'Experts Juri-
diques A6riens (usually referred to as the CITEJA) is
ti-anslated in the United States as the International Tech-
nical Committee of Aerial Legal Experts.
' The CITEJA has been engaged in the development of -
, a code of private international air lave since 1926. See
article by Mr. Latchford entitled "Private International
Air Law", BtnxETiN of Jan. 7, 194.5, p. 11. For the reor-
ganization of the United States section of CITEJA and
the organization of an advisory committee to the United
States Section, see Bm-LEriN of Feb. 3, 1946. p. 169,
836
DEPARTMENT OF STATE BULLETIN
sideration be given by the various governments to
tlie desirability of coordinating the activities of
CITEJA with those of the -Provisional Inter-
national Civil Aviation Organization (PICAO)
and with those of the permanent International
Civil Aviation Organization provided for in the
Convention on International Civil Aviation, drawn
np at Chicago on December 7, 1944, after the per-
manent organization comes into existence. The
CITEJA at its January meeting took up for con-
sideration a resolution adopted by the Interim
Council of PICAO at Montreal in November 1945,
in which the Council went on record as being in
favor of establishing a procedure for considering
CITEJA matters in coordination with CITEJA,
for maintaining liaison with that organization so
that the Council might be kept fully informed on
all mattei-s under consideration by CITEJA, and
for having the Assembly of PICAO hereafter con-
sidered as the international conference to consider
CITEJA draft international conventions instead
of having a government call an international con-
ference for that purpose as has been the prac-
' At a meeting of the Interim Council of PICAO at Mon-
treiil on Nov. 23, 1945, tlie Council approved the following
i-ecommendation of its Air Transport Committee :
"That, with respect to . . . matters under consideration
by CITEJA, or which ma.v arise in the future, the President
and the Secretariat establish a procedure for considering
such matters in coordination with CITEJA, and for the
purpose of maintaining liaison with CITEJA so as to keep
fully informed on all matters under consideration by
CITEJA, and that hereafter the Assembly should be con-
sidered as the international conference to consider CITEJA
draft conventions instead of calling special conferences for
that purpose."
The Air Transport Committee also recommended that
upon the coming into force of the International Convention
on Civil Aviation adopted at the International Civil Avia-
tion Conference at Chicago in 1944, steps should be taken
to bring about the merger of CITEJA with the new Inter-
national Civil Aviation Organization established by that
convention so that all matters relating to international
aviation may be under the jurisdiction of a single world
organization as far as pos.sible. The Council at its meeting
on November 23, 1945 took no action on this recommenda-
tion. It is understood that the Council felt that such action
would be premature. However, the CITEJA provided in
a resolution adopted by it at its Fourteentli Plenary Session
in January 1946 for a study of the conditions under which
the CITEJA might eventually be brought within the frame- "
work of the International Civil Aviation Organization.
° See article by Mr. Latehford entitled "Coordination
of CITE,JA with the New International Civil-Aviation
Organizations, Bitlletin of Feb. 25, 1945, p. 310.
tice in tlie past.^ Under this iDrocedure the As-
sembly would take such action on the CITEJA
drafts at it might deem appropriate. The dele-
gates to the Assembly might adopt and sign con-
ventions based on a study of the CITEJA drafts,
after which the conventions would be subject to
ratification or adherence by the interested govern-
ments, or they might decline to take any action
on the CITEJA drafts or refer them back to
CITEJA for further study.
The United States delegation at the CITEJA
meetings in January 1946 urged that the CITEJA
concur in the PICAO resolution and made par-
ticular reference to the desirability of having the
CITEJA draft conventions acted on by the As-
sembly of PICAO. The following were among
the arguments advanced in support of this plan.
The proposed procedure would make it unneces-
sary to wait for several years after the adoption
of CITEJA projects for a government to call a
diplomatic conference on private air law for the
purpose of acting on the CITEJA draft conven-
tions, and would tend to avoid the criticism that
some of the CITEJA projects do not fully take
into consideration the problems of the air trans-
port carriers or are not sufficiently coordinated
with the problems arising under international
public air law which have a vevy important rela-
tion to the drafts developed by CITEJA. The
plan proposed would also avoid the expense in-
curred by various governments in the past in
sponsoring or sending delegates to international
conferences on private air law.^ The CITEJA
adojDted a resolution agreeing in principle to liai-
son and cooperation with PICAO and to having
the PICAO call international conferences for the
purpose of giving consideration to draft conven-
tions adopted by CITEJA, but expressed the wish
that such conferences be open to the largest possi-
ble number of states. In other words, it was felt
that the states participating in the development
of a code of private international air law should
not necessarily be limited to those which are mem-
bers of PICAO. There appeared to be a reltic-
tance on the part of certain members of CITEJA
to the bringing about of any radical departure
from the procedure heretofore followed in calling
international conferences on private international
air law for completing action on CITEJA drafts,
and these members thought that the past pro-
cedure should in principle be retained. However,
MA\ 19, 1946
837
in view of tlie discussions at the January meetings,
it is believed that tliis point of view would be sub-
stantially met if the Assembly of PICAO should
at some stage of its proceedings resolve itself into
an international conference for the specific pur-
pose of taking action on CITEJA matters.'^
The CITEJA resolution also provides for a
study through its Secretariat, in collaboration with
the Secretariat of the PICAO, of the feasibility of
eventually bringing the CITEJA within the
framework of the International Civil Aviation
Organization, which would presumably be the
permanent organization under the Chicago civil
aviation convention after it comes into force. The
minutes of the CITEJA meetings included a state-
ment indicating that the plan of liaison and co-
operation with PICAO as agreed to by CITEJA
would not be limited to the Provisional Interna-
tional Civil Aviation Organization but would ap-
ply equally to the permanent International Civil
Aviation Organization after the Chicago civil
aviation convention comes into force.
Prior to the war the various governments rep-
resented on the CITEJA contributed only a nom
inal amount toward the expenses of the Secretariat.
In order to make it possible for the CITEJA to
function in a satisfactory and effective manner,
particularly in connection with the new duties
which it will assume, including collaboration with
PICAO, the CITEJA at the January meetings
agreed upon a larger budget. For the purpose of
contribution the participating countries will be
divided into groups paying diiferent quotas, in-
stead of each country's contributing the same
amount, as has been the practice in the past. The
United States will be placed in the groujj expected
to contribute about $1,800 a year. The increased
budget is subject, of course, to the willingness of
the governments to appropriate the necessary
funds.
Proposed Conventions Adopted at the January
1946 CITEJA Sessions
Prior to the war the CITEJA had under con-
sideration a proposed convention conferring upon
CITEJA the power to interpret private air law
conventions as adopted at international confer-
ences on private international air law and to pre-
pare texts of execution or application of sucli
conventions. The United States delegations to tlie
CITEJA meetings in the past have been opposed to
the project on the ground that interpretation of
conventions was principally a matter for decision
by courts in appropriate cases and was not a func-
tion that should be performed by an international
drafting connnittee concerned with the prepara-
tion of preliminary texts. At the January meet-
ings the reporter for this subject proposed three
separate projects conferring upon CITEJA cer-
tain powers of (1) interpretation, (2) preparation
of texts of execution of rules of international air
law and (3) arbitration of disputes concerning the
application of a rule of international air law. The
United States delegation participated with others
in the discussion of these projects with the result
that certain objectionable provisions were elim-
inated, including those which would have con-
ferred upon the CITEJA authority to make inter-
pretations, and to prepare texts of execution, with
resiDect not only to private air law but to public
air law as well. These projects were amended so as
to have the powers of interpretation and execution
apply only to private air law conventions. The re-
poi-ter's projects as submitted by him to the Janu-
ary meetings provided that the CITEJA could
render an opinion or prepare texts of execution at
the request of any state, or international organiza-
tion, national public authority, or interested in-
dividual. These provisions were amended in order
to eliminate the reference to interested individuals,
and an additional provision was inserted provid-
ing for the making by CITEJA of recommenda-
tions on the interpretation of any international
regulation on air law if requested by the Pro-
visional International Civil Aviation Organiza-
tion or by the International Commission for Air
Navigation, which is still functioning under the
Paris Air Navigation Convention of 1919. Witli
respect to interpretation and execution, the
projects adopted at the January meetings provide
that the CITEJA would act only in a consultative
capacity and that its recommendations would not
of themselves have any binding force. The proj-
ects on intei'pretation and execution as adopted by
CITEJA in January 1946 have been submitted by
"Since the iu'eparation of tlii.s article, the Department-
of State has been informed tiy the United States Repre-
sentative on the Interim Council of PICAO that it is
considered to be impracticable to have a separate interna-
tional conference alongside of the meeting of the Assem-
bly of PICAO, which is scheduled to hold sessions at
Montreal beginning on May 21, 1046. Therefore, the proj-
ects developed by CITEJA and referred to PICAO will Vie
considered as a part of the agenda of the Asseml)Iy,
838
DEPARTMENT OF STATE BULLETIN
CITEJA to the PICAO Secretariat for action by
an international conference on private air law.
The project on arbitration was held over for fur-
ther study by the CITEJA.
When the CITEJA was organized in 1926, pur-
suant to a resolution adopted at the First Inter-
national Conference on Private Air Law at Paris
in 1925 recommending the establishment of a per-
manent international committee to prepare the
preliminary texts of private international air law
projects, it adopted on its own initiative the regu-
lations defining its functions and setting forth
its rules of procedure. However, at the meetings
last January the CITEJA adopted a proposed
statute defining its functions. This contemplated
statute is in the form of a proposed international
convention which includes the following provi-
sions : the establishment of CITEJA on a perma-
nent basis; the maintenance of French as the offi-
cial language of CITEJA, but publication of docu-
ments and resolutions in English, French, and
Spanish instead of French only as at present ; the
rendering of opinions on questions of pi-ivate in-
ternational air law submitted to CITEJA by gov-
ernments, official international organizations, or
national public administrations; the granting by
each party to the proposed convention to the ex-
perts of the other parties of the privileges and
immunities necessary for the exercise of their
functions, and to the Secretary General and all the
other personnel of the privileges and immunities
which are accorded to corresponding personnel
of other public international organizations. The
draft convention contains also an interesting pro-
vision to the effect that the quarters occupied by
the CITEJA, its functions or its meetings, as well
as its archives, shall be inviolable. The proposed
statute as adopted by CITEJA in January has
been transmitted to the PICAO Secretariat for
appropriate action by an international conference
on private air law.
Prior to the interruption of the CITEJA meet-
ings as a result of the war, one of the CITEJA
commissions had on its agenda a proposed conven-
tion relating to assistance and salvage of aircraft
on land. This draft set forth the conditions under
which the commander of an aircraft would have a
limited obligation to go to the assistance of other
aircraft in distress, and it set forth the rules for
the payment of remuneration and indemnity to the
salvor rendering assistance. It also included pro-
visions whereby a government might designate
certain danger areas, such as desei't regions or un-
inhabited areas, which aircraft could not enter
without satisfactory arrangements having been
made with the local authorities for assistance in
case the aircraft should be in distress. A draft con-
vention on land salvage was adopted by CITEJA
in plenar}^ session in January, but during the dis-
cussions on this draft, the United States delegation
called attention to the fact that Annex L of the
technical regulations drawn up in provisional form
at the Chicago aviation conference contained pro-
visions relating to search and rescue of aircraft in
distress and that a new set of international stan-
dards and recommended practices dealing with
the subject of search and rescue, based upon a study
of the search and rescue provisions of Annex L,
has been developed in comiection with the delib-
erations of the Interim Council of PICAO. In
that connection the delegation suggested the de-
sirability of having close collaboration between the
CITEJA and PICAO in the development of a pro-
ject on land salvage, so that if an international
convention on land salvage within the field of
private international air law is to be adopted and
signed, it would not be in conflict with any rules
on search and rescue developed as the result of the
studies of the Interim Council at Montreal. It
was agreed that such collaboration would be nec-
essary.
The draft convention on land salvage adopted
by CITEJA at the meeting in January has been
submitted by CITEJA to the Interim Council of
PICAO with an understanding to the effect that it
is to be submitted to an international conference
provided that no modification in the draft is made
by PICAO befoi-e its submission to such confer-
ence. In view of the fact that heretofore the del-
egates to international conferences on private air
law are understood to have been free to take such
action as they deemed appropriate on draft con-
ventions on their agenda which were adopted by
CTTEJxV in plenary sessions, or to make recom-
mendations concerning the disposition of other
CITEJA drafts, this reservation on the part of
CITEJA appears to require some explanation. It
is believed from a study of the proceedings of the
CITEJA meetings in January that that organiza-
tion had in mind the fact that a study of search
and rescue had been instituted under the auspices
of the Interim Council at Montreal and that the
CITEJA felt that if the Interim Council con-
MAY 19, 1946
839
sideied that as a result of that study and of a
further study of the matter some modification
should be made in the CITEJA project on land
salvage, the CITEJA should have an opportunity
to reexamine its project in the light of any observa-
tions that might be made by the Interim Council
before it is submitted to an international confer-
ence on private air law for final adoption and
signature. It appears then that CITEJA con-
siders that where its projects are placed by PICAO
on the agenda for an international conference such
projects should be submitted to the conference in
the form developed by CITEJA.
The Warsaw Convention of 1929 contains pro-
visions relating to the liability of the air trans-
port operator for damages to persons and prop-
erty in international transportation. This Con-
vention was prepared by CITEJA in preliminary
form, and the CITEJA project was referred for
final adoption and signature to the Second Inter-
national Conference on Private Air Law (a dip-
lomatic conference) held in Warsaw in October
1929. The Convention as adopted at Warsaw has
been ratified or adhered to by many countries, in-
cluding the United States. At its plenary ses-
sion in January 1946 the CITEJA adopted a pro-
posed revision of the Warsaw Convention, and the
amendments have been transmitted by the
CITEJA to the Secretariat of PICAO ,for submis-
sion to an intei'national conference on jjrivate air
law.
The delegates to the Chicago aviation confer-
ence adopted a resolution recommending that con-
sideration be given to the early calling of an in-
ternational conference for the purpose of adopt-
ing a convention dealing with the transfer of title
to aircraft and that such conference include in
the bases of discussions two draft conventions
adopted by CITEJA in 1931 relating to (1) air-
craft mortgages and (2) the setting up of an aero-
nautic i-egister or airciaft property record ,for
recording the transfer of jiroperty rights in air-
craft. Since it was considered highly desirable
t to have in force as soon as possible conventions
i on aircraft mortgages and the aircraft property
I record, in view otthe anticipated increase in the
I sales of aircraft in international trade, the Gov-
ernment of the United States, shortly after the
Chicago aviation conference, requested the heads
of United States diplomatic missions to ascertain
whether the governments to which they were ac-
credited would authorize signature of the
CITEJA 1931 drafts with some modifications that
were suggested by the Government o,f the United
States. However, in view of the PICAO resolu-
tion adopted in November 1945, in which the In-
terim Council at Montreal went on record as being
in favor of having draft conventions adopted by
CITEJA in plenary sessions referred to the As-
sembly of PICAO — a procedure agreed to in prin-
ciple by CITEJA at its January 1946 sessions—
tlie 1931 CITEJA draft conventions on mort-
gages and the aircraft property record have been
included by the CITEJA with the draft conven-
tions adopted at the January meetings and trans-
mitted by the CITEJA to the Secretariat of
PICAO for consideration by an international con-
ference on private air law.
The CITEJA still has the following subjects on
its agenda :
1. Liability of air transport operators in the
event of aerial collisions;
2. Aviation insurance;
3. Abandonment;
4. Legal status of the aircraft navigating per-
sonnel ;
5. Legal status of the commander of the air-
craft ;
6. Arbitration;
7. Global limitation of liability;
8. Chartering of aircraft;
9. Tourist aircraft;
10. General average.
Most, if not all, of these subjects will be con-
sidered by CITEJA commissions which are sched-
uled to meet in Paris on Jlily 9, 1946.
Witli reference to the subject of abandonment,
it is understood that in maritime practice the term
has to do with the action of the insured in abandon-
ing damaged or lost property to the public au-
thorities as a constructive total loss, and it is
assumed that it is the intention of the CITEJA to
consider the extent to which the maritime practice
can be made applicable to aircraft.
The term global limitation of lixibility is mider-
stood to' refer to a possible situation whereby an
air transport operator might have an accumulation
of liability as a result of a single accident involv-
ing liability of the operator under several of the
conventions developed by CITEJA, such as the
(Continued on page 871)
840
DEPARTMENT OF STATE BULLETiy
Report on the West Indian Conference
Article by ELIZABETH H. ARMSTRONG'
THE SECOND SESSION of the West Indian Con-
ference, under the auspices of the Caribbean
Commission, was lield at St. Thomas, Virgin Is-
lands of the United States, from February 21 to
March 13, 1946. This Conference is notable for
the fact that it constitutes the only international
conference participated in by governments in
which the people of colonies and overseas terri-
tories are directly represented and in which the
views and aspirations of the peoples of such terri-
tories are freely expressed. Of the 29 delegates,
16 represented elected bodies or portions of elected
bodies and 23 were natives of the Caribbean.
The first session of the West Indian Conference
was held in Barbados in March 1944 under the
auspices of the Anglo-American Caribbean Com-
mission, which in December 1945 was expanded to
include France aiid tlie Xetherlands in its member-
ship and was renauied the Caribbean Commission.
The Coinmissioners and their advisers attended
plenary sessions of the Conference, but the com-
mittee and subcommittee meetings were conducted
exclusively by the delegates.
Two delegates from each of the following 15
Caribbean territories, accompanied by advisory
staffs, participated in the second session :
France — French Guiana. Guadeloupe, Mar-
tinique
Netherlaxds — CuraCj'ao, Surinam
United Kingdom — Bahamas, Barbados, Bri-
tish Guiana, British Honduras, Jamaica,
Leeward Islands, Trinidad, AVindward
Islands
United States — Puerto Rico, Virgin Islands
There was also a Canadian observer present.
In a letter of February 7, 1946 to Charles W.
' Miss Armstrong is Assistant in the Division of Inter-
national Organization Affairs, Oftieo of Special Political
.^It'airs, Department of State.
= Bulletin of Mar. 3, 194G, p. 332.
' Bulletin of Mar. 3, 1946, p. 333.
Taussig, U.S. Co-Chairman of the Caribbean Com-
mission and chairman of the second session of the
Conference, which was read to the Conference and
very favorably received, President Truman set
forth a message which established the tone of the
Conference.- He made it clear that the policy of
the United States with respect to the governments
and peoples of the Caribbean region would be
guided by the following basic tenets :
1. Encouragement of the effective application
by all practicable means of the fundamental prin-
ciples set forth in chapter XI of the Charter of
the United Nations to the end that the progressive
development of the peoples of the region in politi-
cal, economic, educational, and social matters
should be insured, this Government noting with
particular satisfaction that in all such non-self-
governing territories the interests of the inhabi-
tants are to be regarded as paramount.
2. Support of the work of the Caribbean Com-
mission to the end that problems of the region may
be approached as a whole and not piecemeal, the
Government of the United States looking with
satisfaction on the recent expansion of the Carib-
bean Commission to include the Governments of
France and the Netherlands and anticipating in-
creasing participation in the work of that Com-
mission by the peoples of the territories of the
four countries concerned.
3. Assistance by a^Dpropriate action in carrying
out the economic objectives recommended by the
first session of the West Indian Conference held in
Barbados in March 1944.
4. Support for anj^ suitable plan which would
bring the non-self-governing territories of the
Caribbean region into closer cooperation with eacli
other, with a view to developing the educational,
social, and cultural institutions of the region, im-
proving the standards of living of the people, and
strengthening the foundations upon which self-
governing institutions may be developed.
Mr. Taussig in his opening speech ^ stated that
MAY ]9. J<)4b
841
tlie objective before the delegates was the uchieve-
ment of "social, economic, and political progress"
and that these practical reforms might easily be-
come mere palliatiA'es unless built on the founda-
tion of essential human rights. He pointed out
tliat the only real defense against the misuse of
atomic energy would be found in the spiritual
awakening of mankind, and that the people of the
Caribbean in particular reciuired two well-defined
charters which should be basic for all that men
strive to attain. One of these charters would be a
bill of human rights, a simple statement of what
an individual might require of his fellow man to
live his life in security and happiness; the other
would be a bill of human obligations, a statement
of the sacrifices that must be made by an indi-
vidual to assure these basic rights to his neighbor.
The Plenary Session
The first 10 days of the Conference were devoted
to plenary sessions in which delegates took the
opportunity to consider regional problems along
broad and general lines. There was considerable
discussion of press policy for the Conference. It
was decided to admit the press to all plenary ses-
sions and committee meetings but to limit subcom-
mittee discussions to their own membership. The
Conference also discussed the question of proce-
dure and voluntarily decided to limit speeches to
eiglit minutes.
In the course of these plenary meetings, the Dele-
gation of Puerto Rico proposed that the Confer-
ence should set up a committee to draft a charter
of human rights and obligations for the Carib-
bean that should express the aspirations and hopes
of the peoples of the area on economic, social, and
political matters. The proposal led to consider-
able controversy among the delegates. The French
claimed that the proposed charter bordered on the
political field and thus would be beyond the terms
of reference of the Commission. The Netherlands
Delegation argued that they were unprepared to
discuss this new item. The British West Indian
Delegations were rather evenly divided as to the
wisdom of bringing up the matter. When it be-
came evident that the discussion of the proposed
charter would lead to considerable controversy
and delay, the Puerto Rican Delegation agreed to
table its resolution . It was decided that the matter
would not again come up at that session save by a
majority decision of the entire Conference, but
during the later plenary meetings the delegates
agreed to discuss the question at the next session
of the Conference.
The Meetings of Committees
On the conclusion of the first series of plenary
sessions the Conference split up into three main
committees and 12 subcommittees: Committee I
dealt with organization matters; Committee II
considered certain basic problems of the area ; and
Committee III took up recommendations for spe-
cific action.
The principal recommendations of Committee I
(Organization Matters) were:
1. That the West Indian Conference should
meet biannually.
2. Tliat a central secretariat headed by a sec-
retary general should be created.
3. That all the territories of the region should
be fully consulted as to the proposed agenda well
in advance of the o]3ening of any session of the
Conference and that the territories should seek
suggestions from theii' representative legislative
bodies or general councils, the final agenda thus
being based on the comments received from the
region.
4. That the Caribbean Research Council should
undertake a study of the economic potentialities
of the mainland territories of the Guianas and
British Honduras, with a view to the solution of
their problems of underpopulation.
It is interesting and significant to note that there
was considerable j^ressure in Committee I and later
during a jiublic debate in the plenary session for
a resolution proposed by the Delegate from Bar-
bados, himself an elected member, providing that
only elected members of the legislative bodies or
general councils should be eligible as delegates
to any future sessions of the West Indian Confer-
ence. The resolution received considerable sup-
port, especially from the more politically ad-
\'anced delegates from the British territories, and
was finally submitted as a minority recommenda-
tion in the committees' report to the entire
Conference.
Committee II (Consideration of Certain Basic
Problems of the Area) had six subcommittees
which dealt with:
a. Agricultural diversification
b. Industrial diversification
r. Trade and transportation
842
DEPARTMENT OF STATE BULLETIN
d. Health
e. Plant and animal quarantine
/. Research
Committee II made the following recommenda-
tions :
1. Endorsed the specific recommendations on
agricultural diversification made at the first ses-
sion of the West Indian Conference in Barbados.
2. Recommended that soil surveys should be
immediately initiated in those territories in which
this work had not been begun.
3. Recommended that a conference on industrial
development be convened by the Caribbean Com-
mission not later than February 1947, and that a
survey on industrial diversification should be made
prior to the calling of such a conference.
4. Suggested that the terms of reference of the
conference on industrial development should be
extended to cover trade and transportation within
the Caribbean.
5. Expressed the opinion that consideration
should be given by the appropriate authorities to
the possibility of inviting those territories not at
present associated with the work of the Caribbean
Commission (including the countries on the South
and Central American seaboards of the Caribbean
as well as Canada) to participate in the proposed
industrial conference.
6. Recommended that conferences of individuals
concerned with health education should be pro-
vided for by the Caribbean Commission and that
it should consider the advisability of appointing a
committee on health education with a view to for-
mulating a regional health-training program and
establishing training centers in the region.
7. Suggested that a survey should be made to
determine the nutritional needs of all children
whether in school or not.
8. Made a number of minor recommendations on
the subject of quarantine for humans as well as
for plants and animals.
9. Recommended that members of the Caribbean
Research Council should be appointed by the Car-
ibbeafi Commission from panels of suitable can-
didates submitted by both metropolitan and terri-
torial governments (primary consideration being
given to the technical qualifications of the can-
didates), that the secretariat of the Caribbean
Research Council should be a section of the Com-
mission's Central Secretariat, and that the Carib-
bean Research Council should be bi'ought into
formal relationship with the United Nations Edu-
cational, Scientific and Cultural Organization.
Committee III (Consideration of Suggestions
Recommended for Specific Action) dealt with:
a. The tourist project
h. Local crafts
c. Sociological aspects of the Caribbean prob-
lems
d. Conference of soil scientists
Committee III made the following recommenda-
tions :
1. Suggested that the feasibility of creating a
regional (tourist) organization should be consid-
ered in detail.
2. Supported the recommendation made by the
Anglo-American Caribbean Commission for a con-
ference of Caribbean tourist interests and sug-
gested that the proposed conference should be held
in New York not later than June 30, 1946.
3. Stressed that "an unusual opportunity exists
for the post-war development of a major tourist
industry in the Caribbean area" and endorsed the
so-called "regional approach" to Caribbean tourist
development, believing that such an approach
pointed the way to collective action by Caribbean
governments.
4. Recommended that the Caribbean Commis-
sion should arrange for the creation of a special
and permanent subcommittee of the Committee on
Industrial Technology of the Caribbean Research
Council to compile a bibliography of handicrafts
in the Caribbean, investigate the uses of plants and
trees for handicraft industries, et cetera.
5. Suggested that certain special studies on such
subjects as the variation in the course and levels
of living in the various Caribbean territories, over-
population and its remedies, unemployment, and i
producers' and consumers' cooperative movements \
in the region should be recommended to the Carib-
bean Commission and the Caribbean Research
Council and that the problem of standardizing the
methods of reporting on social and economic
matters be studied.
6. Suggested that the Caribbean Commission
convene an informal meeting of soil scientists.
Proposals for Future Agenda
At a plenary session held on March 8, 1946, the '
Conference appointed an ad hoc committee whose
duty it was to consider proposals for future agenda
MAY 19, 1946
843
and to make recommendations to the Conference.
After the delegates had made suggestions for fu-
ture agenda to this Committee, the Conference as
a whole accepted all of the recommendations except
one, a Puerto Rican suggestion for studies on bank-
ing investment opportunities in the Caribbean. At
a further plenary session held on March 11 the
Conference accepted proposals for the agenda of
the next session of the Conference, which included
consideration of problems of :
1. Health and sanitation
2. Trade, including desirable trade agreements
within the area
3. Welfare, including child delinquency, public
assistance, social insurance
4. Distribution and movement of population
within the area
5. Labor conditions
6. Education
7. Housing and city planning
8. The consideration and formulation of a bill
of human rights and obligations by the next ses-
sion of the Conference. (It was agreed that the
Caribbean Commission should compile useful con-
tributions of thought and opinion on this question
from all sources within the area to be made avail-
able to the next session as a part of the documenta-
tion on this item and that a proposed bill of human
rights and obligations based on this infoi'mation
should be formulated under the direction of the
Commission to serve as a basis for the deliberations
of the Conference.)
Meetings of the Caribbean Commission
In the course of the Conference, the Caribbean
Commission itself held frequent meetings at which
it considered such matters as the establishmeiit of
a central secretariat, the organization of future
West Indian Conferences, the functioning of the
Caribbean Research Council, and budgetary ar-
rangements for the Commission, as well as for its
two principal auxiliary organizations, the West
Indian Conference and the Caribbean Research
Council.
The Commission appointed a subcommittee on
organization matters under the chairmanship of
Ralph J. Bunche, United States Commissioner.
This subcommittee, consisting of four Commis-
sioners, one from each member nation, and three
advisers from the United Kingdom, France, and
the United States respectively, made the following
important recommendations, which were later
unanimously adopted by the Commission as
recommendations to the respective metropolitan
governments :
1. That the secretariat should have its head-
quarters in the region, that it should be inter-
national in character, and that the Secretary Gen-
eral and the members of the staff should be
responsible to the Commission and should not seek
or receive instruction from any government or
from any other authority external to the
Commission.
2. That each member of the Commission should
respect the international character of the respon-
sibility of the Secretary General and his staff and
should not seek to influence them in the discharge
of their responsibility.
3. That the Secretary General should be ap-
pointed by the Commission, be its chief adminis-
trative officer, and be selected on the basis of the
highest qualifications for the office.
4. That the personnel of the secretariat should
be selected on the basis of equitable representation
of the four nations which are members of the Com-
mission, having due regard for the highest stand-
ards of efficiency, competency, and integrity, and
should be recruited to the greatest extent prac-
ticable from the people of the region.
5. That the Secretary General should be respon-
sible for the preparation of an annual budget cov-
ering the expc:i«es of the Commission, its auxiliary
bodies, and the secretariat, which should be sub-
mitted to the Commission for its approval and for
eventual approval by the four metropolitan gov-
ernments.
6. That the Commission should recommend to
the metropolitan governments that, for the pur-
pose of meeting these expenses, an adequate joint
fund be established, which would be financed by
contributions from the four member nations of
the Commission in such proportion as might be
determined from time to time.
7. That the Secretary General should prepare
such reports, publications, memoranda, or other
papers as might be required by the Commission, as
well as agenda for meetings and conferences, and
should be responsible for the official records of all
meetings.
The Committee on Organization Matters also
recommended to the Commission that the secre-
tariat should consist initiallv of the Secretary
844
DEPARTMENT OF STATE BULLETIN
General; four assistants to the Seci'etary General,
responsible respectively for the Caribbean Re-
search Council, administration, social problems,
and economic matters ; two research secretaries for
the Caribbean Research Council; one adminis-
trative assistant; one librarian; two translators;
clerical and other staff — a total of 21 persons.
In its recommendations relating to the West
Indian Conference the Committee on Organization
Matters noted that the West Indian Conference
was an auxiliary of the Caribbean Commission de-
signed to provide consultation with representatives
of the Caribbean territories and colonies of the
four member nations. It was agreed that each
Caribbean territory, colony, or group of colonies
of the four member nations should be entitled to
send two delegates and such advisers as it might
consider necessary to each session of the Confer-
ence. The Conference should meet biannually, and
the location of each session should be based on the
principle of rotation of the four member govern-
ments of the Commission in the English alphabet-
ical order. The chairman of each session of the
Conference should be the co-chairman representing
the metropolitan government in the territory in
which the session is held.
The Committee also made suggestions to the
Commission in matters arising directly from the
establishment of the secretariat and the expansion
of the Commission itself. The most important of
these recommendations were :
1. That the present system of co-chairmen
should be retained, and that each co-chairman
should preside over Commission meetings accord-
ing to the English alphabetical order of the Com-
mission, irrespective of where the Commission
meeting is held.
2. That the Commission should hold not less
than two meetings a year and that such meetings
should be held at the headquarters of the secre-
tariat unless decided otherwise.
3. That during the periods between meetings the
Secretary General should obtain approval from the
four co-chairmen before taking action on impor-
tant matters.
4. That the Commission should proceed as far as
possible on the basis of unanimous agreement of
all the commissioners present. If this should
prove impossible, the decision or recommendation
should be by unanimity of the four member na-
tions. Decisions on procedural matters should be
considered approved if agreed to by at least three
of the four member nations.
The Committee on Organization Matters also
considered procedures for future Conference
agenda and held several meetings with the Con-
ference subcommittee dealing with the same sub-
ject. As a result of this happy collaboration, the
proposals for future Conference agenda eventually
adopted in plenary session represented the common
views of the Commission and of the delegates
themselves.
At the end of the Conference, Mr. Bunche in a
speech pointed out that it was clear that certain
fundamental principles for future sessions of the
West Indian Conference had been established by
general agreement. He stated that the most im-
portant of these principles were:
1. That there should be full and free expression
of opinion by freelj' selected representatives of
the people of the region within the bounds only of
reason, responsible utterance, and regional interest.
2. That there should be prompt review of the
recommendations of the Conference by the metro-
politan governments concerned, combined with ef-
fective action by these governments on the accept-
able recommendations, as well as public explana-
tion of the grounds for any rejection.
3. That there should be open, public, and well-
organized deliberations.
i. That there should be general agreement on
an unshakable determination that the Caribbean
people must enjoy higher standards of living,
greater income, better housing, health, sanitation,
clothing, education, and free political institutions,
as well as equal apportionment of respect for the
individual of whatever race, color, creed, or sex.
At the conclusion of the discussions by the tliree
main committees their recommendations were sub-
mitted to the Conference as a whole and unani-
mously adopted in the plenary session held on
March 12, 1946. Considerable discussion took
place concerning a proposal that the legislative
bodies of all the Caribbean territories should pass
laws forbidding any kind of racial discrimination
in hotels and other facilities open to tourists. Some
of the delegates argued that such legislation was
unnecessary and perhaps even undesirable, but
there was general agreement that it would be in
line with the accepted idea that the West Indians
themselves should have the same free access as for-
eign visitors to all tourist facilities.
MAY 19, 1946
845
The Conference closed in the same atmosphere
of mutual understanding and harmony which had
marked all of its meetings. The great majority of
delegates and advisers seemed to feel that this
second session of the West Indian Conference had
been instrumental not only in bringing together
representatives of all the Caribbean territories
but also in laying some conci'ete foundation for
the future collaboration of the territories them-
selves, as well as of the metropolitan governments
concerned.
Governor Tugwell of Puerto Kico, United States
Commissioner, stirred the delegates to enthusiasm
at the final session when he said : "If there are those
who hope quietly to assassinate your proposals and
to embalm them in the vastness of minutes and
pigeon-holes, I warn them from long experience
that this time the old methods will not work."
He spoke of surging demands raised by the masses
of the peoples everywhere for greater participa-
tion in the making of their own future and pointed
out that this was particularly true of colonial
peoples and those who, for one historical reason or
another, possess something less than full self-gov-
ernment. He added that the Caribbean Commis-
sion and the West Indian Conference were not
governing bodies, had no legislative, executive, or
judicial powers, but were nevertheless important
as a consultative and advisory body, as the reposi-
tory of local tradition and achievements, and as
the standard conscience of the region. Through
it pride might come to the most progressive and
shame to the most backward, and this in itself
might lead to progress. In closing. Governor
Tugwell expressed the hope that colonial oiEces
and chancellories would see in this institution not
a threat to their private prerogative and a crass
disturbance of their established methods but rather
a convenient device for meeting demands and as-
pirations which would otherwise overwhelm them
with their volume and persistence.
In his closing speech, Chairman Taussig ex-
pressed his admiration for the high type of repre-
sentation present at this second session of the West
Indian Conference. He traced the evolution of
the Anglo-American Commission through the diffi-
culties and strains of war, paying particular trib-
ute to the high caliber and vision of the men sent
to Washington by the Government of the United
Kingdom to assist in the establishment of the
Commission. Mr. Taussig ended by expressing
his unbounded faith in the future of the newly
expanded four-power Commission and spoke of
the urgent necessity of cooperation between the
four metropolitan governments in the era of peace
now opening before the world.
The West Indian Conference provided a clear
demonstration of the utility of regional commis-
sions in such areas as the Caribbean, inhabited
largely by non-self-governing peoples living under
adverse social and economic conditions. No one
who was present at the recent conference failed to
be impressed not only with the urgent need for
social and economic reform but also with the rea-
sonable spirit in which demands for social reforms
were jiresented by the great majority of the dele-
gates. Tlie West Indian Conference and the Carib-
bean Connnission itself can serve as an extremely
useful channel for the expression of the hopes and
desires of all the peoples of the West Indies. The
very existence of these institutions constitutes a
considerable guaranty of peaceful, orderly, and
evolutionary development. Their existence and
their functioning should do away with the old
cycle of neglect, riots, and disturbances, investiga-
tions, and again neglect which has marked the
course of West Indian history for too many years.
If the Caribbean Commission, properly supported
by the four metropolitan governments and by the
peoples of the territories themselves, can make at
least a beginning in the task of improving the
shockingly bad economic and social conditions of
the West Indies, its work will be an excellent
augury for the establishment of regional commis-
sions in other disturbed areas of the world, oc-
cupied largelj' b}' non-self-governing peoples.
694315—46-
846
DEPARTMENT OF STATE BULLETIN
Trial of Far Eastern War Criminals
THE INDICTMENT
Statement by Joseph B. Keenan ^
The Charter ^ divides the crimes over which the
Tribunal is given jurisdiction into three cate-
gories: (a) "Crimes Against Peace", (b) "Con-
ventional War Crimes" and, (c) "Crimes against
Humanity". Wliile this division is followed in
the indictment, it will be contended that the basic
justification for all of them is the same. It is that
breaches of international law, whether established
by custom or treaty, are crimes for which the per-
sonal responsibility lies not only upon the humbler
individuals who actually commit specific breaches
of the laws of war. That has always been recog-
nized, but on the same legal principle it lies also
upon those in higher positions who by their de-
cisions bring about breaches of international law
and treaties. The time has come to put into action
this principle which has been boldly asserted and
firmly established. The indictment involves no
new law.
The charges are divided into three groups.
In each case the charges are laid under the Char-
ter of the Tribunal, which is a restatement of in-
ternational law, and in the case of Group Two, also
under the domestic laws of the countries concerned
including Japan.
Group One: The charges are laid both under
article 5 (a) and 5 (b) of the Charter. All the
counts allege wai's both of aggression and in viola-
tion of international law, treaties, agreements, and
assurances. On the facts of this case it will- be
contended that the distinction is immaterial. The
first five counts charge conspiracies to wage such
wars ; the first comprehensively covering the whole
plan as one conspiracy, the remaining four deal-
' Chief of Counsel for the Prosecution.
- For the text of the Charter of the International Mil-
itary Tribunal for the Far East see Bulletin of Mar. 10,
1946, p. 361.
ing separately with various phases of it as it is
alleged to have developed.
Counts G to 17 inclusive charge the defendants
with the crime of planning and preparing such
war separately against each nation.
Counts 18 to 26 inclusive charge the crime of
initiating such wars separately against certain
parties.
Counts 27 to 36 inclusive charge the crime of
waging such wars separately against certain
parties.
Groivp Two: The charges of murder are laid
under all the paragraphs of article 5 of the Char-
ter. It will be contended that the intentional kill-
ing of a human being without lawful justification
is murder by the law of every civilized country
including Japan, by whose law even the intention
is unnecessary. Lawful belligerency, i.e., fighting
a war of defense according to the laws of war, is
such a justification, but Counts 37 and 38 allege
that the belligerency of Japan was unlawful be-
cause it was in breach of treaties and aggressive
in nature ; in Count 37, owing to the absence of a
declaration of war, and in Count 38, by reason of
breaches of treaties forbidding such aggression.
Counts 39 to 43 inclusive apply these contentions
to si^ecific instances of murder, in the various sur-
prise attacks made on December 7th-8th, 1941.
Count 44 charges a conspiracy to procure or
permit wholesale murder of prisoners of war and
civilians on land and sea. Counts 45 to 50 in-
clusive are specific charges of murder in some of
the most notorious of such cases, the "Rape of
Nanking", and other cities in China. Counts 51
and 52 contain similar charges with regard to at-
tacks on territories of the U.S.S.R. Examples
of such wholesale murders during the wars which
began in December 1941 are too numerous to be
made the subject of separate counts.
It may seem strange to include charges of mur-
der in an indictment before an international tri-
MAY 19, 1946
847
bunal. But, it is liigli time, and indeed was so be-
fore this war began, that tlie promoters of aggres-
sive, ruthless war, and treaty-breakers should be
stripped of the glamour of national heroes, and
exposed as wliat tlie}' reall)' are — plain, ordinary
murderers.
Group Three: Tlie charges are laid under para-
graphs (&) and (c) of article 5 of the Charter,
and it will be contended that paragraph (5) is
adequate to cover them all. They allege con-
sijiracy to commit and the actual commission of
large numbers of breaches of the laws and customs
of war, contained in or proved by tlie practice of
civilized nations and the various conventions gov-
erning the conduct of hostilities, the treatment of
prisoners of war, and of persons and property in
occupied territories. It appears that those who
framed the conventions never contemplated the
l^ossibility of sucli outrages as are alleged against
Japan in the conduct of her wars from 1931 to
1945, and dealt with under the charge of nuirder in
Counts 44 to 52 inclusive. So far as the}^ are re-
ferred to in this group tliey have to be dealt with
under such mild phrases as appear in the conven-
tions, e.g., "inhumane treatment", "failure to re-
spect individual life", etc.
The defendants named in these counts are al-
leged to be responsible for all these atrocities both
because they initiated tlie policies which led to
them, sometimes directly ordered their commission,
and in all cases recklessly neglected the duty which
lay upon them to take adequate steps to prevent
them, in spite of numerous warnings.
In the particulars of breaches under this group
in Appendix D, it is alleged that Japan habitually
violated almost every article of the conventions
and every known law of war.
There are five Appendices. Appendix A gives,
under ten subject-heads, an outline of the story
which will be related to the tribunal with regard
mainly to the charges in Group One. Appendix B
gives the text of the principal articles of treaties
which it is alleged that Japan violated in the course
of wars which she planned, prepared, initiated,
and waged between 1931 and 1945. Appendix C
gives a list of assurances similarly alleged to have
been broken. Appendix D gives an outline of the
main laws of war, conventions, and assurances al-
leged to have been violated by Japan in the charges
in Group Three, as well as the particulars of
breaches above-mentioned. Appendix E gives as
against each individual defendant particulars of
the principal grounds on which he is included in
the indictment, based mainly on the positions
which he held and the activities with which he was
connected during the period, especially during
1941.
It should be clearly understood that the omission
of any name from tlie indictment in no sense im-
plies that the individual is exonerated from com-
plicity in the charges or may not be charged here-
after. For convenience and clarity in presenting
tlie case it was found necessary to limit the num-
bers in this trial. Many of the principals are al-
ready dead. One, General Terauchi, has been
omitted solely on the ground that his mental and
physical condition makes it impossible to try him.
But the indictment includes the survivors of those
who, on the evidence at present available, appear
to have the major responsibility for most of the
phases and activities which contributed to the
crimes alleged against Japan.
JAPANESE WAR LEADERS INDICTED FOR WAGING WARS OF AGGRESSION AND
COMMITTING WHOLESALE MURDER
Twenty-eight military and political leaders of
Japan during the period from January 1, 1928
to September 2, 1945 are charged with planning,
preparing, initiating, and waging wars of aggres-
sion in violation of international law and treaties,
committing wholesale murder, and instigating
numerous "crimes against humanity", in a 55-count
indictment presented on April 29 to the Inter-
national Military Tribunal for the Far East.
The indictment, submitted by Joseph B. Keenan,
Cliief of Counsel for the prosecution, was signed
by Mr. Keenan on behalf of the United States and
by associate counsel representing 10 other nations
with which Japan was at war : China, United King-
dom, Union of Soviet Socialist Republics, Aus-
tralia, Canada, France, Netherlands, New Zealand,
India, and Philippines.
All 28 defendants are accused of paxticipating
as "leaders, organizers, instigators or accomplices"
in formulating or executing a conspiracy with Ger-
848
DEPARTMENT OF STATE BULLETIN
many and Italy to "secure the military, naval,
political and economic domination of the whole
world, each having special domination in its own
sphere". The accused are held responsible for "all
acts performed by themselves or by any person in
execution of this plan".
The defendants are :
Sadao Araki, former general, War Minister,
member of the Supreme War Council, and Educa-
tion Minister.
Kenji Dohihaka, former general, commander
of Special Service Section in Manchuria, chief
adviser to the North China autonomous govern-
ment, and Inspector General of Military Training.
KiNGORO Hasiiijioto, couimander of an artillery
regiment at the rape of Nanking and of Japanese
forces which shelled the Ladyhird and the Panay,
a founder of the Imperial Rule Assistance Asso-
ciation, and alleged to have been a promoter of
plots to remove politicians not considered suffi-
ciently aggressive.
Shunroku Hata, former general, member of
Supreme War Council, War Minister, and com-
mander in chief of the expeditionary force in
central China from July 11)40 to 1944.
KiiCHiRO HiRANUMA, Prime Minister in 1939,
former president of the Privy Council, and cabi-
net minister under Konoye.
KoKi HiROTA, Prime Minister from March 193G
to February 1937, and Foreign Minister under
Saito, Okada, and Konoye.
Naoki Hoshino, chief of general affairs in Man-
chukuo in July 1937, president of the Planning
Board under Konoye and Chief Secretary and
Minister of State under Tojo.
Seishiro Itagaki, former general, chief of staff
of Kwantung army, and War Minister under
Konoye and Hiranuma.
Okinori Kaya, Minister of Finance under
Konoye in 1937 and 1938, president of the North
Cliina Development Company, and Finance Min-
ister under Tojo.
Koiciii Ktdo, cabinet minister under Konoye
and Hiranuma, Lord Keeper of the Privy Seal
from 1940 to 1945, chief confidential adviser to the
Emperor and cliairman of meetings of ex-
premiers.
Heitaro Kimura, former general, chief of staff
of the Kwantung army. Vice War Minister under
Konoye and Tojo, and commander in chief of the
Japanese Army in Burma in 1944.
KuxiAKi Koiso, former general. Prime Minister
from July 1944 to April 1945, chief of staff' of the
Kwantung army. Overseas Minister under Hira-
numa and Yonai, and Governor General of Korea
in 1942.
IwANE Matstti, former general, commander in
chief of Japanese forces in central China in 1937
and 1938, member of the Cabinet Advisory Coun-
cil in 1938 and 1939, and president of the Greater
East Asia Development Society.
YosuKE Matsuoka, Foreign Minister under
Konoye in 1940 and 1941, chief delegate to the
League of Nations Assembly in 1933, and president
of the South Manchurian Railway from 1935 to
1939.
Jiro Mixami, former general, member of the
Privy Council from 1942 to 1945, War Minister
in 1931, and commander in chief of Kwantung
army from 1934 to 193G.
Akiua Muto, chief of the Military Affairs Bu-
reau of the War Ministry from 1939 to 1942, and
chief of staff' of the 14th Area Army in the Philip-
pines under Yamashita in 1944.
OsAJii Nacjano, former admiral. Navy Minister
under Hii'ota, commander in chief of the combined
fleet in 1937, and member of the Supreme War
Council in 1940.
Takasumi Oka, former vice admiral, chief of
the General and Military Affairs Bureau of the
Navy from 1940 to 1944, and Vice Navy Minister
under Koi.so in 1944.
SiiUMEi Okawa, an officer of the South Man-
churian Railway alleged to have been an organizer
of the Mukden incident on September 18, 1931,
and a propagandist for the expulsion of the white
races from Asia by aggressive war.
HiRosiii OsiiiMA, Ambassador to Germany in
1938 and 1939 and from 1941 to 1945.
Kenryo Sato, former lieutenant general, chief
of the Military Affairs Bureau of the War Minis-
try from 1942 to 1944.
Mamoru Shigemitsu, Foreign Minister under
Tojo and Koiso from April 1943 to April 1945,
and former Ambassador to U.S.S.R., Great Brit-
ain, and puppet government of Nanking.
Shigetaro Siiiii ADA, former admiral, Navj' Min-
ister under Tojo in 1941, and member of Supreme
War Council in 1944.
Tosiiio SiiiRATORi, Ambassador to Italy in 1939
and adviser to the Japanese Foreign Office in 1940.
(Continued on page 853)
The Security Council
SUMMARY STATEMENT BY THE SECRETARY-GENERAL OF MATTERS OF WHICH
THE SECURITY COUNCIL IS SEIZED AND OF THE STAGE REACHED IN THEIR
CONSIDERATION
Pursuant to Rule 11 of the Provisional Rules of
Procedure of the Security Council, I submit the
following Summary Statement of matters of
which the Security Comicil is seized and of the
stage reached in their consideration on 29 April
1946.
1. The Iranian Question.
The Iranian application, dated 19 January 1946,
was considered at the third and fifth meetings of
the Security Council in London. At the fifth
meeting, a resolution was unanimously adopted
I'equesting the parties to inform the Comicil of any
results achieved in negotiations between them.
The Council in the 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 representative of the
U.S.S.R. being absent and the representative of
Australia abstaining) that
". . . the Council defer further proceedings
on the Iranian apjilicatioii until 6 IMay, at which
time the Soviet Government and the Iranian Gov-
ernment are requested to report to the Council
whether the withdrawal of all Soviet troops from
tlie whole of Iran has been completed and at which
time the Council shall consider what, if any, fur-
ther proceedings on the Iranian aj^peal are re-
quired ;
"provided, however, that if in the meantime
either the Soviet Government or the Iranian Gov-
ernment or any member of the Security Council re-
ports to the Secretary-General any developments
694315—46 4
which may retard or threaten to retard the prompt
withdrawal of Soviet troops from Iran, in accord-
ance with the assurances of the Soviet Union to
the Council the Secretary-General shall immedi-
ately call to the attention of the Council such re-
ports which shall be considered as the first item on
the agenda." (Pages 458-459, Security Council
■Journal No. 24) }
By letter dated 6 April 1946 and addressed to
the President of the Council, Ambassador A. A.
Gromyko proposed that the Iranian question be
removed from the agenda of the Council.
By letter dated 9 April 1946 and addressed to the
Secretary-General, the Iranian Ambassador op-
posed this jjroposal.
By letter dated 15 April 1946 and addressed to
the President of the Council, the Iranian Ambas-
sador communicated the text of a telegram from
his Government stating that it withdrew its com-
plaint from the Council.
At the thirty-third meeting the Secretary-Gen-
eral submitted a memorandum to the President of
the Council concerning tlie legal effect of the above
letters from Ambassador A. A. Gromyko and the
Iranian Ambassador. The Council referred this
memorandum to the Committee of Experts.
At the tliirty-third meeting Mr. Bonnet moved
". . . that the Security Council request the
Se^-retary-General to collect the necessary infor-
mation in order to complete the Security Council's
report to the Assembly, in accordance with 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, not withdrawn, of the Govern-
ment of Iran."
' Bulletin of Apr. 24, 1946, p. 621.
8'19
850
DEPARTMENT OF STATE BULLETIN
At tlie thii'ty-sixth meeting, the Council consid-
ered the Eepoit of Dr. H. Saba, Chairman of the
Committee of Experts, setting out the conclusions
of the Committee of Experts after consideration
f)f the Secretarv-General's memorandum. The
Council continued its discussion of the issues
raised in the above letters from Amba.ssador A. A.
Gromyko and tlie Iranian Ambassador. Mr.
Gromyko associated himself with the above Reso-
lution proposed by Mr. Bonnet. Mr. Bonnet's
Resolution received three votes ( France, Poland,
and U.S.S.R.) and was declared lost. Mr.
tii-omyko said that the decision of the Council
to retain the Iranian question on its agenda was
contrary to the Charter. Accordingly, the Soviet
delegation did not consider it possible to take any
further part in the discussion of the Iranian ques-
tion in the Council.
2. 7'ke Spanish /Situation.
By letters dated 8 April 1946 and 10 April 194G
addressed to the Secretary-General, the Polish
Ambassador, under Articles 'M and 35 of the
Chai-ter, requested the Security Council to place
on its agenda the situation arising from the exist-
eiire and activities of the Franco regime in Spain
for considei'ation and for adoption of sucli meas-
ures as are i)rovided for in the Charter.
At the tliirty-fourth and thirty-fifth meetings
the Council considered this application and resolu-
tions suV)mitted by the Polish and Australian rep-
resentatives.
At the thirty-seventh and thirty-eighth meet-
ings the Council considered the resolutions and
amendments submitted by several representatives.
At the thirty-ninth meeting the Australian reso-
lution, as amended, was adopted by ten votes, the
Soviet representative abstaining. By this resolu-
tion the Comicil appointed a sub-committee of
five of its members and instructed this sub-com-
mittee to report before the end of May. It was
agreed that the sub-committee should be formed
of the representatives of Australia (Chairman),
Brazil, China, France and Poland. Dr. Lange
said that he did not withdraw his earlier resolu-
tion demandiiig collective breaking of diplomatic
relations with Spain. He understood that his
earlier resolution would again be considered after
the sub-connnittee had presented its report.
The sub-connnittee held its first meeting on 29
April 1946.
3. Special Agreements under Article 43 of the
Charter.
At its second meeting tlie Council adopted the
provisional agenda for its first meetings recom-
mended by the Preparatoi-y Commission. It de-
ferred consideration of Item 10 of that provisional
agenda :
"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 Coimnittee.
4. Rules of Procedure of the Security Council.
As instructed l)y the Council at its first and
twenty-third meetings, the Conunittee of Experts
submitted revised provisional Rules of Procedure
at the thirty-first meeting, together with recom-
mendations concerning communications from pri-
vate individuals and non-governmental bodies.
After minor amendments the Security Council
adopted these Rules of Procedure and reconnnen-
dations, the approved text being reproduced in
Document S/35.
It was agreed that the Committee of Experts
should fornuilate additional rules of procedure
for submission to the Council, and this work is
proceeding.
:"). Statute (Did Rules of Procedure of the Military
Staff Committee.
At the twenty-third meeting it was agreed to
postpone consideration of the Report of the Mil-
itary Staif Committee concerning its Statute and
Rules of Procedure (Document S/10) . The Com-
mittee of Exjierts was instructed to examine the
Report. It was also agreed that pending the ap-
jn-oval by the Council of the Report of the Military
Staff Conunittee, the Military Staff Committee
was authorized to carry on its business along the
lines suggested in its Report.
At the twenty-fifth meeting considei-ation of the
Report was further postponed pending examina-
tion by the Conunittee of Experts. The Com-
mittee of Experts has been engaged in considera-
tion of the Provisional Rules of Procedure for the
Security (Council and has not yet examined the
Report of the Military Staff Committee.
MAY 19, 1946
851
G. 77ie Application for the Admission of Alhania
(IK a Memher of t/ie United ^^^ations.
By letter addressed to the Acting Secretary-
General, Mr. Edvard Kardelj, Vice-Premier of
Yiiijoslavia requested that the Security Council
reconnnend 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' Re-
public of Albania, addressed to the President and
Vice-Presidents of the General Assembly applying
for the admission of Albania as a Member of the
United Nations.
At tiie third meeting it was agreed without ob-
jection that this application be placed on the
agenda (page 47, Security Council Journal No. 5).
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 Comicil convenes at the tem-
porary headcjuarters" (page 216, Security Council
Journal No. 14).
Seven -delegations voted in favour of this pro-
posal and the President declared that it was
adopted.
STATEMENT BY THE DELEGATIONS OF THE FOUR SPONSORING GOVERNMENTS ON
VOTING PROCEDURE IN THE SECURITY COUNCIL
Specific questions covering the voting procedure
in the Security Council have been submitted by
a Sub-Committee of the Conference Connnittee on
Structure and Procedures of the Security' Council
to the Delegations of the four Governments spon-
soring the Conference — the United States of Amer-
ica, the United Kingdom of Great Britain and
Noithern Ireland, the Union of Soviet Socialist
Republics, and the Republic of China. In dealing
with tliese cpiestions, the four Delegations desire
to nndce the following statement of their general
attitude towards the whole question of vnianimity
of i)ermaneut members in the decisions of the
Security Council.
1. The Yalta voting formula recognizes that the
Security Council, in discharging its responsibil-
ities for the maintenance of international peace
and security, will have two broad groups of func-
tions.^ Under Chapter VIII, the Council will have
to make decisions which involve its taking direct
measures in connection with settlement of disputes,
adjustment of situations likely to lead to disputes,
determination of threats to the peace, removal of
threats to the peace, and suppression of breaches
of the peace. It will also have to make decisions
wliich do not involve the taking of such measures.
The Yalta formula jDrovides that the second of
these two groups of decisioiis will be governed by
a procedural vote — that is, the vote of any seven
members. The first group of decisions will be
governed by a qualified vote — that is, the vote of
seven members, including the concurring votes of
the five permanent members, subject to the proviso
that in decisions under Section A and a part of
Section C of Chapter VIII parties to a dispute
shall abstain from voting.
2. For example, under the Yalta formula a pro-
ceduial vote will govern the decisions made under
the entire Section D of Chapter VI. Tliis means
tliat the Council will, by a vote of any seven of its
membei-s, adopt or alter its rules of procedure;
determine the method of selecting its President;
organize itself in such a way as to be able to func-
tion continuously; select the times and places of
its regular and special meetings; establish such
bodies or agencies as it may deem necessary for
the performance of its functions; invite a mem-
ber of the Organization not represented on the
Council to participate in its discussions when that
Member's interest are especially affected ; and in-
vite any state when it is a party to a dispute being
considered by the Council to participate in the
discussion relating to that dispute.
3. Further, no individual member of the Council
can alone ^jrevent consideration and discussion by
the Council of a dispute or situation brought to its
attention under paragraph 2, Section A, Chapter
VIII. Nor can parties to such dispute be pre-
vented by these means from being heard by the
Council. Likewise, the requirement for unanim-
ity of the permanent members cannot prevent
' BxTLLETiN of Mar. 11, 194.5, p. 304.
852
any member of the Council from reminding the
members of the Organization of their general ob-
ligations assumed under the Charter as regards
peaceful settlement of international disputes.
4. Beyond this point, decisions and actions by
the Security Council may well have major political
consequences and may even initiate a chain of
events wliich might, in the end, require the Council
under its responsibilities to invoke measures of
enforcement under Section B, Chapter VIII.
Tliis chain of events begins when the Council de-
cides to make an investigation, or determines that
the time has come to call upon states to settle their
differences, or makes recommendations to the
parties. It is to such decisions and actions that
unanimity of the permanent members applies with
the important proviso, referred to above, for ab-
stention from voting by parties to a dispute.
5. To illustrate: in ordering an investigation,
the Council has to consider whether the investi-
gation— which may involve calling for reports,
heai'ing witnesses, dispatching a commission of
inquiry, or other means — might not farther aggra-
vate the situation. After investigation, the Coun-
cil must determine whether the continuance of the
situation or dispute would be likely to endanger
international peace and security. If it so deter-
mines, the Council would be under obligation to
take further steps. Similarly, the decision to make
recommendations, even when all parties request
it to do so, or to call upon parties to a dispute to
fulfill their obligations under tlie Charter, might
be the first step on a course of action from which
the Security Council could withdraw only at the
risk of failing to discharge its responsibilities.
G. In appraising the significance of the vote
required to take such decisions or actions, it is use-
ful to make comparison with the requirements of
the League Covenant with reference to decisions
of the League Council. Substantive decisions of
the League of Nations Council could be taken only
by the unanimous vote of all its members, whether
permanent or not, with tlie exception of parties
to a dispute under Article XV of the League
Covenant. Under Article XI, under which most
of the disputes brought before the League were
dealt with and decisions to make investigations
taken, the unanimity rule was invariably inter-
preted to include even the votes of the parties to
a dispute.
DEPARTMENT OF STATE BULLETIN
7. The Yalta voting formula substitutes for the
rule of complete unanimity of the League Council
a system of qualified majority voting in the Secu-
rity Council. Under this system non-permanent
members of the Security Council individually
would have no "veto". As regards the permanent
members, tliere is no question under the Yalta
formula of investing them with a new right,
namely, the right to veto, a right whicli the per-
manent members of the League Council always
had. The formula proposed for the taking of
action in the Security Council by a majority of
seven would make the operation of the Council
less subject to obstruction than was the case under
the League of Nations rule of complete unanimity.
8. It should also be remembered that under the
Yalta formula the five major powers could not act
by themselves since even under the unanimity re-
quirement any decisions of the Council would have
to include the concurring votes of at least two of
the non-permanent members. In other words, it
would be possible for five non-permanent members
as a group to exercise a "veto". It is not to be
assumed, liowever, that the permanent members,
any more than the non-permanent members, would
use their "veto" power wilfully to obstruct the
operation of the Council.
9. In view of the primary responsibilities of the
permanent members, they could not be expected,
in the present condition of the world, to assume
the obligation to act in so serious a matter as the
maintenance of international peace and secui'ity
in consequence of a decision in which they had not
concurred. Therefore, if a majority voting in the
Security Council is to be made possible, the only
practicable method is to provide, in respect of non-
procedural decisions, for unanimity of the per-
manent members plus the concurring votes of at
least two of the non-permanent members.
10. For all these reasons, the four sponsoring
Governments agreed on the Yalta formula and
have presented it to this Conference as essential
if an international organization is to be created
through which all peace-loving nations can effec-
tively discharge their common responsibilities
for the maintenance of international peace and
security.
n
In tlie light of the considerations set forth in
Part I of this statement, it is clear what the an-
MAY 19, 1946
853
swers to the questions submitted by the Sub-
coiniuittee shouhl be, with the exception of Ques-
tion 1!). The iinswer to that question is as follows :
1. In the opinion of the Delegations of the Spon-
soring Governments, the Draft Charter itself con-
tains an indication of the application of the voting
l)rocedures to the various functions of the Council.
•2. In this case, it will be unlikely that there
will arise in the future any matters of great
impoi-tance on which a decision will have to be
made as to whether a procedural vote would apply.
Should, however, such a matter arise, the deci-
sion regarding the preliminary question as to
whether or not such a matter is procedural must
be taken by a vote of seven members of the Security
Council, including the concurring votes of the per-
manent members.
DISCUSSION OF SOVIET-IRAJNIAN MATTER AT 40TH MEETING
Remarks by the U.S. Representative -
The Securit}' Council, in its resolution of
April 4. requested the Soviet Government and
the Iranian Government to report to the Council
on ]\Iay 6 whether the withdrawal of all Soviet
troops from the whole of Iran had been completed.
The Soviet Union has not conqjlied with the re-
quest of the Council. The Iranian Government , on
its part, has comi^lied with the request, but only in
a preliminary manner, and apparently, as fully as
conditions have permitted. In its report, the
Iranian Government stated that it was not possi-
ble, at this time, for its representatives to make a
complete report because it had had no op[)ortunity
to ascertain through its own officials the conditions
prevailing in the Province of Azerbaijan.
In view of this statement of the Iranian Govern-
ment that it will report promptly to the Council
the true state of affairs in Azerbaijan as soon as it
is able, and to ascertain the facts through its own
official representatives, and recognizing the com-
munication and the travel difficulties in that re-
mote area, I wish to submit to the Council, for its
consideration, a resolution which I woidd like to
read to you at this time :
"The Security Council resolves, in view of the
statement made by the Iranian Government in its
preliminary report of May 6, submitted in com-
pliance with the resolution of April 4, 1946, that
it was not able as of May 6 to state whether the
withdrawal of all Soviet troops fi'oni the whole of
Iran had been comi^leted,
to defer further proceedings on the Iranian
matter in order that the Government of Iran may
have time in which to ascertain through its official
rejjresentatives Miiether all Soviet troops have
been withdrawn from the whole of Iran ;
that the Iranian Government be requested to
submit a complete report on the subject to the
Security Council immediately upon the receipt of
the information which will enable it so to do; and
that in case it is unable to obtain such information
by May 20, it report on that date such information
as is available to it at that time;
and that immediately following the receipt
from the Iranian Government of the report re-
quested, the Council shall consider what further
pi'oceedings are required." ^
WAR CRIMINALS— ConiinMed from page 848.
Tehchi Suzuki, president of the Cabinet Plan-
ning Board and Minister Without Portfolio under
Konoye and Tojo from 1941 to 1943.
Shigenori Togo, Foreign Minister under Tojo
from October 1941 to March 1942 and under
Suzuki in 1945.
HiDEKi Tojo, former general, Premier and War
Minister from December 2, 1941 to July 1944.
YosHiJiRO Umezu, former general, Vice War
Minister from 1936 to 1938, connnander of the
Kwantung army from 1939 to 1944, and chief of
the general staff in 1944 and 1945.
'Held on Ma.v 8. The Secunt.y Council has been in
.session in New York, N. Y., since Mar. 25. 1946.
• Edward R. Stettinius, Jr.
"Adopted at -10th meeting.
854
DEPARTMENT OF STATE BULLETIN
LETTER FROM THE IRANIAN AMBASSADOR TO THE PRESIDENT OF THE
SECURITY COUNCIL
6 May 1946
Sir:
On 4 April 194C> the Security Council resolved
"that the Council defer further proceedings on the
Iranian appeal until G May 194G at which time the
Soviet Govei'nment 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 pro-
ceedings on tlie Iranian appeal are required. . . .'"
The Iranian appeal set forth in the letter of
18 March 194G related to two matters which it was
stated were likely to endanger international peace
and security. The first of these referred to the
maintenance of Soviet troops on Iranian territory
after 2 March 194G; and the second (which was
first presented to the Council at its meetings in
London) referred to Soviet interferences in the
internal affairs of Iran.
With respect to the withdrawal of the troops,
the Soviet Union has oflicially informed the Se-
curity Council that the evacuation would be com-
pleted during a pei'iod of one and one half niontlis
from 24 March 194G.
For the reasons hereinafter stated it is impossi-
ble for me to make a complete report at this time.
On the basis of the infoimation received by me
from my Government up to five o'clock this after-
noon, I am able, however, to present to the Council
the following report :
Soviet troops have now been completely evacu-
ated from the Provinces of lOiorassan, Gorgan,
Mazanderan and Gilan. This information is based
upon investigations made by responsible officials
of the Government of Ii'an.
So far as the Province of Azerbaijan is con-
cerned, the Government lias been informed through
other sources that the evacuation of Soviet troops
from that Province has been going forward and
it is said will have been completed before 7 May
1946. These reports have not been verified by di-
rect observations of officials of the Iranian Govern-
ment. The reason for this is that, as isreviously
pointed out to the Council, the Iranian Govern-
ment has been unable because of the interferences
complained of, to exercise effective authoi'ity
within Azerbaijan since 7 November 1045, and
from that time to the present has had no oppor-
tunity to ascertain through its own officials what
are tlie conditions prevailing throughout that
Province. While it is hoped that arrangements
can be made which will remove the unfortunate
results of the interferences complained of, it is
impossible to forecast at this time with certainty
wliat tlie subsequent developments will be.
As soon as the Iranian Government is able to
ascertain through its official representatives- the
true state of affairs in the Province of Azerbaijan
the facts will be reported promptly to the Council.
I have the honor [etc.]
Hussein AlxV
Iranian Ambassador
His Excellency,
Dr. H.\FEZ Afifi Pasha,
PresMrnt of the Security Council
STILLWELL— Con/ijiued from page 834.
areas violates the State and the local weights and
measures laws. Secretary Anderson has asked
governors of all States to work out a plan whereby
underweight bread can be sold. Bread mislabeled
as to weight puts the baker in violation of the
Federal Food and Drug Act. The baking indust ry
has ]jointed out the impossibility, in the short time
remaining, of having wrappers printed showing
the actual weiglit. The Department of Agri-
culture is working with the Federal Security
Agency on means of complying with both the law
and the objectives of the President's program.
Tlie Commodity Credit Corporation will con-
sider the purchase of dehydrated white potatoes
produced from raw potatoes which are under loan
to the Commodity Credit Corporation under the
price-support program in Idaho, Oregon, Ne-
braska, Colorado, Minnesota, North and South
Dakota, and Wyoming. Dehydrated potatoes pur-
clmsed are intended for resale to India and other
deficit areas to help relieve the food shortages.
There are many more ways in which we can
conserve food. None should be overlooked for we
must supply every possible ton of essential food
whicli can be moved and shipped during the next
few months.
We cannot afford the extravagance of too little —
too late.
MAY 19, 1946
855
Proposal by the United States for the Establishment of a
Subcommission on Freedom of Information '
[Released to the press May 8]
The Commission on Human Rights has beefl
(lii-ectecl by the Economic and Social Council to
undertake among its first tasks the preparation
and submission of proposals, recommendations,
and reports to the Coimcil on freedom of informa-
tion.
It is tlie view of tlie Government of the United
States that :
(a) material progress toward the ultimate at-
tainment of miiversal freedom of information is
of tlie utmost importance if tlie United Nations
is to achieve the purposes for which it has been
established; (h) the Commission on Human
Rights will require special advice and assistance
in carrying out its responsibilities toward the
fulfillment of this important and complex task.
It is therefore proposed that the Commission on
Human Rights recommend to the Economic and
Social Council the establishment, at the Council's
next session, of a Subcommission on Freedom of
Information. This Subcommission should consist
of from ten to fifteen members, who need not lie
members of the Commission on Human Rights, to
be appointed by the Council and serving in an in-
dividual capai'ity. The following terms of ref-
erence are suggested for tlie Subcommission :
1. The Subcommission should submit proposals,
recommendations and reports to the Commission
on Human Rights regarding freedom of informa-
tion. In the discharge of this function, the Sub-
commission should
a. determine what rights, obligations and prac-
tices should, in the Subcommission's opinion,
lie included in the concept, freedom of informa-
tion;
h. consider and report on the extent to which
freedom of information as thus defined is accorded
to the peoples of the United Nations ; and the na-
ture and extent of obstacles thereto;
c. examine proposals for jnomoting or facil-
itating freedom of information and eliminating
obstacles thereto;
d. make recommendations to the extent deemed
appropriate for action by the United Nations, by
member states, and by UNESCO and other special-
ized agencies;
c. assume continuing responsibilities for dis-
cussing and preparing, with the assistance of the
Secretariat, a draft provision on freedom of infor-
mation to be incorporated in a bill of rights.
2. In the discharge of its fimctions the Subcom-
mission should maintain close working relations
with UNESCO and other specialized agencies
whose activities may be related to the field of its
competence.
3. Tlie Subcommission may submit proposals to
the Council, through the Commission on Human
Riglits, regarding its teiTns of reference.
United Nations War Crimes
Commission
RESIGNATION OF JOSEPH V. HODGSON
In a letter to Lt. Col. Joseph V. Hodgson dated
May 4. 194G, tiie President accepted his resigna-
tion as United States Commissioner on the United
Nations War Crimes Commission. For texts of
I lie letters exchanged between tlie President and
Lieutenant Colonel Hodgson, see White House
press release dated May G, 1946.
'Transmitted by the United States Delegation to the
United Nations on May S to the Seci'etary-General for
reference to the Commission on Human Rights, for con-
sideration during the Commission's current meetings in
New Yorlj.
International Organizations and Conferences
Calendar of Meetings
Council of Foreign Ministers :
Meeting of Deputies
Meeting of Foreign Ministers
Far Eastern Commission
Allied-Swiss Negotiations lor German External Assets
International Office of Public Health
PICAO :
European anil Mediterranean Air Route Services Conference
Annual Meeting of the Assembly
International Labor Organization : Metal Trades Committee
International Cotton Advisory Committee
rxURA Council: Fourth Session
FAG: Special Meeting on Urgent Food Problems
The United Nations :
Security Council
Military Staflf Committee
Special Committee on Refugees and Displaced Persons
International Court of Justice
Commissions of the Economic and Social Council
Economic and Social Council
Intel-national Health Conference
General Assembly : Second Part of First Session
London
January 18 — temporar-
ily adjourned
Paris
April 25
Washington
Febniary 26
Washington
March 18
Paris
April 24
Paris
April 24
Montreal
May 21
Toledo
May 2
Washington
May 7
Washington
May 9
Washington
May 20-28
New York
March 25
New York
March 25
London
April 8
The Hague
April 18
New York
April 29
New York
May 25
New Yoi-k
June 19
New York
September 3
The dates in the calendar are as of May 12.
Activities and Developments
First Meeting of the International Fund and
the International Bank. The Executive Direc-
tors of the International Monetary Fund held
their first meeting on May 6, and tlie International
Bank on May 7. These first meetings have been
concerned with organizational matters. The fol-
lowing Executive Directors liave been named to
the respective organizations :
For the International Monefari/ Fund .
Belgium, Camille Gutt
Brazil, Francisco Alves dos Santos-Filho
Canada, Louis Rasminsky
China, Y. C. Koo
Czechoslovakia, J. V. Mladek
Kgypf, Ahmed Zaki Bey Saad
France, Pierre Mendes-France
India, J. V. Joshi
Mexico. Kodrigo Gomez
The Netherlands, G. W. J. Bruins
United Kingdom, George Bolton
Unilcil States, Harry D. Wliite
For the International Bank
Belgium, Louis Gotlin (alternate)
Canada, R. B. Bryce
Chile, Victor Moller
China, Yuen-Ting Shen
Cnl)a, Luis Machado
France, Leonard B. Rist
Greece, Kyriakos Varvaressos
India, N. Sundaressan
The Netherlands, J. W. Beyen
Crena de Jong (alternate)
Poland. Dr. Leon Baranski
United Kingdom. Robert Brand
United States. Emilio CoUado
856
MAY 19, 1946
Conference on Non-Repatriable Victims of Ger-
man Action.^ The State Department anBounced
on May 9 the appointment by the President of Dr.
Eli Ginzberg of Cohnnbia University as tlie
United States representative at the forthcoming
conference, whicli will convene in Paris about the
end of May.
The Agreement on Reparation from Germany,
which was signed in January,- made special provi-
sion for those victims of German action who can-
not be repatriated. The details of a plan to re-
settle these refugees will be worked out in Paris
at a five-power conference among representatives
of the United Kingdom, France, Czechoslovakia,
Yugoslavia, and the United States.
The Agreement on Reparation provided that a
sum of 25 million dollars should be made available
from German assets in neutral countries and all of
the non-monetary gold found in Germany should
likewise be available for the rehabilitation and
resettlement of refugees. In addition, the assets
in neutral coimtries of victims who died without
heirs should also be made available.
This Government considei-s that the first 25
million dollars realized from German assets in
neutral countries should be made available to
speed work of rehabilitating and resettling these
refugees. Negotiations ai'e currently under way
with the Swiss Government on the subject of Ger-
man assets in Switzerland.
Dr. Ginzberg has been loaned for this mission
to the State Department by the War Department,
where he has been serving as special assistant to
the Surgeon General.
Irwin Mason and Jacob Kaplan of the Depart-
ment of State will assist Dr. Ginzberg at this
conference.
PICAO. In a letter to Gerald B. Brophy dated
ilay 4, 194:6, the President accepted his resigna-
tion, effective at the close of business on June 30,
1946, as the United States Representative to the
Interim Council of the Provisional International
Civil Aviation Organization. For texts of the
letters exchanged between the President and Mr.
Brojjhy, see "White House press release dated May
6, 1946.
UNRRA Council : Fourth Session. The Council
meeting is a resumption of the Fourth Session held
in Atlantic City, which adjourned on March 29.
857
As one of its final acts in March, the Council ad-
journed subject to a report from the new Director
General, to be made after he had had the oppor-
tunity to consult with the supplying goveiaiments
and the Combined Food Board upon the availabil-
ity of food for those countries in Europe and Asia
which UNRRA is feeding.
Mr. La Guardia has been almost constantly in
session with the principals of the food-supplying
nations of the world, in an endeavor to accelerate
the flow of bread grains, fats and oil, and fertilizers
to the famine-stricken areas and to establish the
fundamental facts.
The Council resolution of March requested the
Director General "to consult immediately and
continuously as long as the emergency lasts with
representatives of the supplying governments and
with the Combined Food Board to consider the
effectiveness of the steps being taken and to report
thereon to the Central Committee and the Council."
The resolution further provided :
"In view of the gravity of the present situa-
tion, the Fourth Session of the Council will remain
in session and, upon completion of its meeting in
Atlantic City, will be convened at "Washington,
D.C., as soon as the Director General can report
on the outcome of his consultations . . . but
in time to allow the Council to assess the position
regarding scarce supplies to be made available to
UNRRA to meet the grave emergency of this
spring and early summer."
Resolution on Food ^
"Whereas : Resolution 89 instructed the Director
General to consult with representatives of the
supplying governments and with the Combined
Food Board to consider the effectiveness of the
steps being taken to meet the present food crises
and to report thereon to the Central Committee
and to the Council,
Whereas : The Director General has submitted
to the Council a report which indicates that, in
spite of his vigorous and forceful efforts to secure
adequate quantities of essential foods, and despite
the adoption of emergency measures by the gov-
' Released to the press May 9.
' BtJLLETiN of Jan. 27, 1946, p. 114.
' Adopted at the Foiu-th Council Session in Washington
on May 9.
858
DEPARTMENT OF STATE BULLETIN
ei-nments concerned, the situation lias nevertlieless
become increasingly grave,
Whereas: The Council has noted the reconi-
mendattons of the Director General in this report,
Whereas : The Council has been informed that
the governments principally concerned are now in
consultation regarding plans to improve the inter-
national machinery for the allocation of foodstuffs
in short supply and regarding the development of
more adequate measures for implementing allo-
cations, and
Whereas : At the forthcoming special meeting
of FAO on May 20th there will be considered : "the
desirability of making recommendations to Gov-
ernments regarding a four or five year plan, de-
signed to carry the world through the present
crises and to assist in effecting a smooth transition
trom emergency measures to a permanent world
food policy."
Eesol\t.d: The Council recommends that, in
view of the prospect of continuing serious world
food shortages, the supplying and importing gov-
ernments concerned develop immediately plans for
the improvement of international machinery for
the allocation of foodstuffs in short supply.
The Council recommends further that the gov-
ernments concerned, in view of the present emer-
gency, develop immediately more adequate machin-
ery for making effective all allocations.
The Council recommends fuilher that in making
allocations the allocating authorities should con-
stantly seek to achieve a fair and equitable dis-
tribution of supplies among all the United Nations
according to their needs.
FAO: Special Meeting on Urgent Food Prob-
lems. The meeting is being convened by the Food
and Agriculture Organization as an outcome of
discussions in the United Nations Assembly in
London early this year. It will not deal with the
present phase of the emergency, which is being
handled by existing agencies, but will be a'^^ked
tu look ahead to the winters of 1946— i7 and
1947^8.
Governments that have major contributions to
make to the solution of the world food crisis have
been invited to send ministers or other responsible
officials to the May 20 meeting, which will be held
in the Chamber of Commerce building, Washing-
ton.
The international organizations invited to send
repiesentatives are the Combined Food Board,
UNRRA, the Emergency Economic Committee for
Europe, and the United Nations. The Interna-
tional Bank for Reconstruction and Development
and the International Labor Office have been in-
vited to send observers.
The Director General has proposed the follow-
ing agenda, enclosed with his letter, for the May
20 meeting :
I. (a) The implications of the factual picture
that has been jDrepared by working groups
drawn from the organizations dealing with
the food crisis.
. (b) Means whereby FAO with the coojjera-
tion of other organizations and governments
can keep the situation under continuous re-
view and report to governments concerned
on changes in harvest prospects in any part
of the world, and any other factors affect-
ing the production or distribution of food, so
that the necessary action can be taken with
a minimum of delay.
II. (a) Measures that can be taken to husband
the food available from the 1946 and 1947
harvests and to insure that it is used to the
best advantage.
(6) Measures to insure maximum output
from the 1047 harvest in all countries.
III. The desirability of making recommendations
to governments regarding a four- or five-year
l^lan, designed to carry the world through the
jjresent crisis and to assist in effecting a
smooth transition from the emergency meas-
ures to a jjermanent world food policy.
The Record of the Week
First Anniversary of V-E Day
STATEMENT BY THE PRESIDENT
[Released to the press by the White House May 8]
On the first anniversary of V-E Day the people
of the United States remember with grateful pride
the men and the women of the United Nations
whose luistinted sacrifices made the victory pos-
sible. The year that has passed has made us real-
ize with greater awareness the nature of their gift
to this and succeeding generations. They gave us
not justice but the ojiportunity to achieve it, not
security but the opportunity to win it, not peace
but the opportunity to make it. Let each of us
judge for himself how well in the past year we
have used what came to us at such great price.
These opportunities will not be ours forever.
Unless we take advantage of them fully, quickly,
and selflessly, they will slip from our grasp. A
year after V-E Day, the opportunities that it
brought to build a just, secure, and peaceful world
are still with us. To the extent that we maintain
our unity within ourselves and with other peoples,
and to the extent that we dedicate ourselves wholly
and unselfishly to the mighty tasks confronting
us, they will become on succeeding anniversaries
not narrowing but expanding vistas of the hopes
of man.
The Inter-American Military Cooperation Act
LETTER FROM THE PRESIDENT TO THE CONGRESS
[Released to the press by the White House May 6]
To the Congress of the United States :
I submit herewith for the consideration of the
Congress a bill to be entitled "The Inter- American
Military Cooperation Act" authorizing a program
of military collaboration with other American
States including the training, organization, and
equipment of the armed forces of those countries.
I recommend that the Congress give this bill its
favorable consideration and enact it.
For several years our Army and Navy have
maintained cordial relations of collaboration with
the armed forces of other American republics
witliin tlie framework of the Good Neighbor Pol-
icy. Under authorization of the Congress, mili-
tai'y and naval training missions have been sent to
various American republics. During the recent
war, even prior to Pearl Harbor, this collaboration
was intensively developed on the basis of inter-
American undertakings for hemisphere defense.
Training activities were expanded, and under the
Lend-Lease Act limited amounts of military and
naval equipment were made available to the other
American republics as part of the hemisphere
defense program. Forces from two of the Amer-
ican republics participated in combat overseas, and
others joined in the defense of the shores and seas
of the Americas at a time when the danger of
invasion of our continents was all too great.
More recently the American republics have as-
sumed new responsibilities, for their mutual de-
fense and for tlie maintenance of peace, in the
Act of Chapultepec and the Charter of the United
Nations. The close collaboration of the American
republics provided for in the Act of Chapultepec,
the proposed treaty to be based upon that Act, and
' H. Doc. 548, 79th Cong.
859
860
DEPARTMENT OF STATE BULLETIN
otlier basic inter-American documents, makes it
liiglily desirable to standardize military organiza-
tion, training methods and equipment as has been
recommended by the Inter- American Defense
Board.
Under the bill transmitted herewith, the Army
nnd Navy, acting in conjunction with the Depart-
ment of State, would be j^ermitted to continue in
the future a general program of collaboration witli
the armed forces of our sister republics with a view
to facilitating the adoption of similar technical
standards. Certain additional training activities,
not covered by existing legislation, would be per-
mitted. The President would also be authorized
to transfer military and naval equipment to the
(xovernments of other American States by sitle or
other method.
The collaboration authorized by the bill could
lie extended also to Canada, whose cooperation
with the United States in matters affecting their
common defense is of particular importance.
A special responsibility for leadership rests
upon the United States in this matter because of
the preponderant technical, economic and military
resources of this country. There is a reasonable
and limited purpose for which arms and military
equipment can rightfully be made available to the
other American States. This Government will
not, I am sure, in any way approve of, nor will it
jiarticipate in, the indiscriminate or unrestricted
distribution of armaments, which would only con-
tribute to a useless and burdensome armaments
race. It does not desire that operations under this
bill shall raise unnecessarily the quantitative level
of armament in the American republics. To this
end tlie bill specifies that amounts of non-standard
material shall be sought in exchange for United
States equipment.
It is my intention that any operations under this
Bill, which the Congress may authorize, shall be
in every way consistent with the wording and
spirit of the United Nations Charter. The bill
lias been drawn up primarily to enable the Ameri-
can nations to carry out their obligations to coop-
erate in the maintenance of inter-American peace
and security under the Charter and tlie Act of
Chapultepec which is intended to be supplanted
by a permanent Inter-American Treaty.
It is incumbent upon this Government to see
that military developments in which we have a
part are guided towards the maintenance of peace
and security and that military and naval estab-
lishments are not encouraged beyond what security
considerations require. In this connection the bill
provides that operations thereunder are subject
to any international agreement for the regulation
of armaments to which the United States may be-
come a party. In addition provision will be made
for continuing coordination of the actual opera-
tions under the legislation with developing plans
and policy in the field of armaments regulation.
In executing this progi'am it will be borne in
mind, moreover, that it is the policy of this Gov-
ernmeirt. to encourage the establishment of sound
economic conditions in the other American repub-
lics which will contribute to the improvement of
living standards and the advancement of social
and cultural welfare. Such conditions are a pre-
requisite to international peace and security. Op-
erations under the proposed legislation will be
conducted with full and constant awareness that
no encouragement should be given to the imposi-
tion upon other people of any useless burden of
armaments which would handicap the economic
impx'ovement which all countries so strongly de-
sire. The execution of the program authorized
by the bill will also be guided by a determination
to guard against placing weapons of war in the
hands of any groups who may use them to oppose
the peaceful and democratic principles to which
the United States and other American nations have
so often subscribed.
In entering into agreements with other Ameri-
can States for the provision of training and equip-
ment as authorized by the bill, the purposes of this
program will be made clear to each of the other
governments.
Harry S. Truman
The WnriE House
May 6, 1946
Addresses of the Week
Frank Whitsoii Fetter
Chief of the Division of Investment
;ind Economic Development.
Rebnilding Multilateral Trade; see
Dep;irtment of State press release
321 of May 11.
Made at the UniTersity of Michigan
in Ann Arbor, Mich., on May 1.3.
MAY 19, 1946
861
Exchange of Messages on the Food Crisis in India
(Released to the press May 12]
From the Viceroy of India {Lord Wavell) to the
President dated April 15, 19^6
Eeports indicating that quantities of wheat pro-
grammed for India by the Combined Food Board
are being cut down have caused great anxiety here.
I sincerely trust they are ill founded, and would
be grateful for an assurance. The impression
seems to have got about that late rains in northern
India have changed the whole position. This is
entirely incorrect. The rain came too late to pre-
vent serious damage, and the total rainfall for the
cold weather was about one-third to one-half of
the average. If the yields have improved in any
part of the country as compared with our estimates
(which remains to be seen) procurement cannot be
affected in any case until the second half of 19-16.
Our demands for the first half of 1946 relate to
the previous harvest in which our estimated de-
ficiency is 3 million tons against the 1.4 million tons
programmed for India by the Combined Food
Board. I can personally assure you that this quan-
tity of 1.4 million tons is urgently required to
prevent serious famine here. And I am sure you
will appreciate our feelings about any proposal
to transfer food grains so urgently needed in India
to ex-enemy countries.
From the President to the Viceroy of India dated
May 3, 19Jfi
I have received through the Indian Agent Gen-
eral in Washington your personal message with
regard to the critical food situation in India. You
may be sure that the gravity of the food shortage
in India is thoroughly recognized by the United
States Government and is receiving the fullest and
most sympathetic consideration on the highest
levels of the Government. I am aware that the
rains which occurred in some sections of India in
the latter part of February have done little to
ameliorate the seriousness of the situation as
pointed out to me by the distinguished Chairman
of the Indian Food Delegation which recently vis-
ited this country.
Continuation of Combined Food Board Operations
JOINT STATEMENT BY THE PRESIDENT AND THE PRIME MINISTERS OF GREAT
BRITAIN AND CANADA^
[Released to the press by the White House May 8]
Statement issved by tfie President of the United
States and the Prim^ Ministers of Great Britain
and Canada on May 8
We announced on December 10, 1945 plans to
terminate two of the combined supply boards but
stated that the food shortages continued to be such
that the Combined Food Board could not then be
dissolved.- It was thought at that time that the
Combined Food Board might finish its work by
June 30, 194<). More recently we have decided
that this Board should be continued until Decem-
ber 31, 1946, because of the deterioration that has
occurred in the world food situation in recent
months and the need to continue to control the dis-
' Released simultaneously in London, Ottawa, and Wash-
ington.
* Bulletin of Dec. 16. 194-5, p. 975.
tribution of many foods with a view to preventing
widespread suffering and starvation. The question
of whether it will be necessary to continue the
Board beyond the end of this year will be reviewed
after the food outlook for 1947 becomes clearer.
The recent deterioration in the world food situa-
tion has been due primarily to drought in many
countries and to the fact that grain was consumed
during the latter half of 1945 at a faster rate than
was justified by actual supply. These develop-
ments came at a time when the food situation had
already been undermined by factors attributable
to the war. During recent months it has become
apparent that serious shortages of basic foodstuffs
probably will continue beyond the coming harvest.
Under these circumstances it is essential that the
Combined Food Board should continue its opera-
(Continiifd on nc.rt poge)
862
DEPARTMENT OF STATE BULLETIN
International Short-Wave
Broadcasting Committee
[Released to the press May 11]
On May 11 Assistant Secretary of State Benton
announced the appointment of a committee to ad-
vise him and tlie State Department on the content
of the international short-wave broadcasting of the
United States.
The committee, which will meet for the first
time on May 13 (Monday) in New York, will con-
sist of eight or nine members and two consultants.
It will apprise the content of the overseas "Voice
of America" broadcasting, which is now carried
on in 24 languages and totals over 400 program-
hours a week. It will study this broadcasting in
terms of the quality, effectiveness, and objectivity
of tlie programs.
The members of the committee are :
Mark Ethridge, publisher of the Louisville
Courier- Journal and former president of the Na-
tional Association of Bi-oadcasters.
Don Francisco, vice president and director of
the J. Walter Thompson Advertising Agency, and
formerly Assistant Coordinator of Inter-Ameri-
can Affairs, in which position he developed and
directed the broadcasting activities of that office.
Gardner Cowles, Jr., publisher of the Des
Moines Register and Tribune, president of the
Cowles Broadcasting Company, and formerly di-
i-ector of OWI's domestic information progi-um.
Roy E. Larsen, president of Time, Inc., who pio-
neered in broadcasting through the development
of the "March of Time" broadcast series.
Professor Harold Lasswell, School of Law,
Yale University, director of War Communications
Eesearch, Library of Congress, from 1941 to 1944,
author of Democracy Through Puhlic Opinion
and other studies of communications and public
opinion.
Sterling Fisher, Assistant Public Service
Counselor, National Broadcasting Company, di-
rector of the "NBC University of the Air", and
director of the "NBC United Nations Project".
The Reverend Robert I. Gannon, president,
Fordham Universitv, and trustee of Town Hall,
New York, N. Y.
Edward R. Murroav, vice president of the Co-
lumbia Broadcasting System, in charge of public
affairs, formerly chief of CBS European
Operations.
The consultants of the Committee are :
Philip Cohen, supervisor of radio and televi-
sion, Ruthrauff and Ryan Advertising Agency,
formerly director of the American Broadcasting
Station in Europe, and formerly radio director,
U. S. Office of Education.
Victor Hunt, jjolicy coordinator. Office of
International Information and Cultural Relations,
Dejiartment of State.
Short-wave broadcasting is one of the principal
methods by which a full and fair picture of
America can be projected to the peoples of other
lands, Mr. Benton pointed out in announcing the
formation of the committee.
"It is estimated that there are now more than
20 million radio sets outside the United States
capable of receiving short wave." He said, "This
number is bound to multiply. In many areas there
is no other means of getting information directly
from the United States. It is obviously important
to the cause of international understanding and
peace that foreign peoples should get an accurate,
balanced picture of American life, and of the aims
and policies of the United States Government.
Broadcasting is a vital medium to this end.
"I am gTatified that this distinguished group
has agreed to advise the State Department on the
content of the 'Voice of America' broadcasting."
FOOD BOARD— Contmued Jrom page 861.
tions in order to promote the best possible utiliza-
tion of world food supplies.
The commodity committees, which carry on the
day-to-day work of the Board, consist of represent-
atives of major exporting and importing countries.
These coimnittees provide a forum in which the
greatest possible measure of agreement is sought
concerning the maximum of food which can be
made available for export and the pattern of its
distribution. The Board and the committees will
continue to provide a forum for the integration of
national programs and the assembly of the fullest
information on supplies and requirements for the
jjurpose of recommending allocation to the govern-
ments affected.
MAY 19, 1946
863
Anglo-American Rice
Commission
[Kelcasfil tii tlio pross May "J I
On May 6 there was signed at Bangkok a tri-
partite agreement between the Governments of
the United States, United Kingdom, and Siam
whereby there is established at Bangkok an Anglo-
American Rice Commission to assist the Siamese
Government in stimulating the production of rice
and to expedite the exj3ort of rice. The Commis-
sion will, in agreement with the Siamese Govern-
ment, determine the scale of prices to be paid for
various grades of rice and will have authority
over all actual exportation. The agreement pro-
vides that all exports shall be in accordance with
allocations recommended by the Combined Food
Board at Washington. The American and British
Governments agree to support Siamese member-
ship on the Rice Committee of the Combined Food
Board. The agreement runs to September 1, 1946
but is renewable at the request of the United States
and British Governments for two further periods ■
of six months each. The United States believes
that the Rice Commission will greatly accelerate
the movement of rice from Siam to deficit areas
in the Far East.
In this connection the United States Govern-
ment welcomes the recent action of the British
Government in abandoning the provision included
in the British-Siamese agreement signed at Singa-
pore, January 1, 1946, requiring Siam to contribute
free of cost to countries designated by the British
an amount of rice equal to the amount of surplus
rice in Siam at the conclusion of the war but not
exceeding 1,500,000 tons. This Government from
the first regretted the principle embraced in this
free-rice demand and has long felt that this was
one of the most serious impediments which has
delayed the procurement of Siamese rice so
urgentlj' needed in India, China, Malaya, the Phil-
ippines, and other areas in the Far East. This
delay has been especially unfortunate as Siam is
the only country in the Far East with any sub-
stantial exportable surplus of rice.
The new arrangement between Great Britain
and Siam provides that Siam will export 1,200,000
tons of rice between May 1, 1946 and May 1, 1947.
All such rice will be paid for, but if the full
amount stated is not exported Siam will make
a free contribution the following year of the
amount by which exports fall short of the target
figure.
In consultation with the Siamese Government
and American representatives in Bangkok, a basic
price for 35 percent broken rice has been estab-
lished at the equivalent of 12 pounds 14 shillings
ex mill (approximately $51) a ton. In addition,
as an added incentive for prompt exports, a pre-
mium of 3 pounds ($12) a ton is to be paid for all
rice delivered before June 1, and of 1 pound 10
shillings ($6) a ton for all rice delivered between
June 1 and June 15. Thereafter, it is intended
that prices for Siamese rice will remain unchanged
at least until about March 1, 1947, by which time
most of the 1946-47 crop will have been sold.
Dealers and farmers will thus have assurance as
to the prices which they may expect for their
rice.
Another factor which has retarded the export
of Siamese rice is the uncertainty in Siam as to
exchange rates and the lack of consumer goods
and transportation equipment. It is understood
that official exchange rates are being established by
the Siamese Government in accordance with which
10 Siamese baht or tical will equal approximately
one United States dollar.
Recognizing the urgent Siamese need for sup-
plies, this Government recently approved a sur-
plus-property contract of $10,000,000 with 20-year
credit at 2% percent and with a provision for an
additional $10,000,000 if items needed by Siam can
be seciu-ed from surplus property abroad. On
April 19 all Siamese assets in this country were
unfrozen. This Government has completed ar-
rangements for the sale of war-surplus garments
urgently needed by Siamese farmers and has taken
steps to arrange for the sale to the Siamese Gov-
ernment on long-term ci-edit of a number of meter-
gage locomotives and cars now in India which
had been lend-leased to the British Government
during the war.
The British Government is also arranging for
the importation into Siam of large quantities of
textiles, medical supplies, and hand farm tools.
The Siamese authorities, recognizing the ur-
gency of world food shortages, have pledged their
utmost efforts to expedite the export of Siamese
rice, and this Government hopes that the steps now
being taken will start the flov? of surplus rice,
which has been delayed so long, from Siam to the
other countries of the Far East where serious
famine exists.
864
Agreement Proposed With
U.K. for Use of Leased Bases
by Civil Aircraft
[Released to the press May 7]
Dean Aclieson. Acting Secretary of State, an-
nounced on May 7 that the British Government
has confirmed its willingness to conclude a formal
agreement based on the proposed arrangement
negotiated at the Bernuida Aviation Conference
witli respect to opening the 99-year leased bases
to civil airci-aft. Agreement was reached at Ber-
nuida on virtually all aspects of the problem, but
a few matters were reserved for further study by
the two Governments.^
Following conversations which have taken place
since the Bermuda conference, notes were ex-
changed on May 6 between the Department of State
and the British Embassy in which pending ques-
tions were settled in substance. It has been ar-
ranged that a formal agreement should be con-
cluded in the very near future, and it is expected
that a British delegation will shortly arrive in this
country to work out the final details. The agree-
ment will cover bases in the Caribbean area and
Bermuda.
The United States has made a reservation to
tlie effect that the agreement will not become ef-
fective luitil satisfactory arrangements are
reached with the Governments of Canada and
Newfoundland regarding the civil use of four air-
fields in Newfoundland and Labrador, two of
which are included in the 99-year-base category.
Discussions are proceeding with the Canadian and
Newfoundland authorities, and agreement is ex-
pected shortly.
The Department of State also calls attention to
paragraph 8 of the Final Act of the conference,
which reads:
"(8) That duly authorised United States civil
air carriers will enjoy non-discriminatory 'Two
Freedom' privileges and the exercise (in accord-
ance with the Agreement or any continuing or
subsequent agreement) of commercial traffic rights
at airjjorts located in territory of the United King-
dom which have been constructed in whole or in
part with United States funds and are designated
for use by international civil air cai-riers."
■ BTJLLETtN of Apr. 7, 1946, p. .'593.
DEPARTMENT OF STATE BULLETIN
Invitations Extended for
Witness of Atomic-Bomb Tests
[Released to the press May 7]
The Acting Secretary of State announced on
May 7 that, by authority of the President, invi-
tations are being extended to all nations having
membership in the United Nations Atomic Energj'
(.Commission to have governmental and press ob-
servers in attendance to witness the atomic-bomb
tests, known as "Operation Crossroads". These
tests will be conducted during the months of July
and August 1946 at Bikini Atoll in the :Marshal!s
Group, subject to the prior approval by Congress
of the allocation of naval ships for tliis purpose.
The test is, in its entirety, an undertaking of tlie
United States Government and is not a combined
or international operation.
The United Nations Atomic Energy Commis-
sion is composed of those nations members of the
United Nations Security Council, plus Canada,
as follows:
Australia
Netherlands
Brazil
Poland
Canada
Union of Soviet Social
China
ist Republics
Egypt
United Kingdinu
France
United States
Mexico
British Officials To Discuss
Food Crisis With the President
[Released to the press by the White House May 8]
Herbert Morrison has been charged by the Brit-
ish Government with a mission to the President to
discuss the world food crisis with the President
and his advisers and to explore further measures
which might be taken to meet the situation. The
President has indicated that he would welcome the
proposed mission. Mr. Morrison, who will be ac-
companied by officials of the British departments
concerned, is Lord President of the Council in the
British Cabinet. He is expected to leave England
by air on May 10 or 11.
MAY 19, 1946
865
Publication of Rej3ort of
Allied Mission to Observe
Greek Elections
[Released to the press liy the White House ^Fny 10]
There Mas made available to the public on ]May
10 the complete text of the unanimous report of
the Allied Mission to Observe the Greek Elec-
tions/ which was signed in Athens on April 10,
ten days after the Greek national elections, by rep-
resentatives of the three Governments which had
participated in the fi'iendly task of assisting an
Ally to restore democratic processes after many
years of jiolitical inactivity and enemy occupation.
Simvdtaneously this report was released by the
Britisli Government in London and by the Frencli
(iovernment in Paris, and a copy is being presented
on behalf of the three Governments to the Greek
Government in Athens.
Tlie Allied Mission to Observe the Greek Elec-
tions created a precedent in the diplomatic history
of free and independent countries. Following
the Yalta declaration on liberated Europe of Feb-
luary 11, 1945, in which the three participating
powers assumed responsibility for assisting liber-
ated nations to facilitate, where necessary, the
holding of free elections to establish governments
responsive to the will of the people, the British,
French, and United States Governments accepted
an invitation from the Greek Government to ob-
serve the Greek elections and to report the results
of their observation to the world.
For three months prior to the Gi-eek elections
on March 31, an Allied organization of approxi-
mately 1.200 persons made preparations for a sci-
entific observation of election procedures'; for
several weeks before and about one week after
the elections, Allied observation teams traveled
throughout Greece and the Greek islands, examin-
ing election lists, questioning officials and party
representatives, collecting other pertinent infor-
mation, and reporting to the central office of the
Mission any irregularities which warranted the
attention of the Greek Government.
Although the report as released contains the
complete text of the signed report and several im-
portant appendixes, it has not been feasible to in-
clude in it all supplementary documentation,
charts, maps, tables, and lists. It is contemplated
that at some time in the future the report will be
published in volume form with full documentation
as a valuable contribution to specialists in inter-
national affairs.
' Department of State publication 2522, copips of which
may be obtained from tlie Division of Research and Pub-
lication, Department of State.
Comments on U.S. Proposals
for New Agency To Handle
Resettlement of Displaced
Persons
At Acting Secretary Acheson's press and radio
news conference on May 3 a correspondent asked
for comment on press dispatches from London
that the United Nations Committee on Refugees
voted 12 to 6 to recommend the United States
proposal for creation of a new agency outside of
the LTnited Nations framework to handle reset-
tlement of displaced persons still on the UNRRA
rolls. Mr. Acheson replied that George L. Warren,
Adviser on Refugees and Displaced Persons in the
Department of State, attended the London meet-
ing which opened April 8, and at the meeting he
proposed on behalf of the United States that a
new agency be created which, although fostered
by the United Nations, would be entirely separate
from that organization and financed separately.
The United States proposal, he said, is for a new
agency to take over the problem of displaced per-
sons and refugees from the Intergovernmental
Committee on Refugees, from UNRRA when it
terminates the limited work it is doing in this
field, and from the High Commissioner's Office of
the League of Nations on Displaced Persons and
Refugees. He added that the United States pro-
posal had been apjDroved by a vote of 12 to 6 and
that the action presumably would be referred to
the meeting of the Economic and Social Council
of the United Nations which opens May 25 in New
York. This conference recommendation, in turn,
would be passed on to the General Assembly when
it opens September 3. Mr. Acheson commented
that it was a very discouraging job in connection
with the resettlement of the refugees ; that we had
been working on it for years and had made
discouragingly little progress.
A correspondent asked whether it would be the
866
DEPARTMENT OF STATE BULLETIN
policy of the United States to encourage immigi-a-
tion to other countries of displaced persons, sug-
gesting that many of them would go to Latin
American counti'ies if the individual countries
would be willing to receive them. Mr. Acheson
replied that he thought it would not only be the
policy but tliat the United States would be most
grateful for people who would coo^Derate in that
effort. Asked if he would be willing under such
circumstances to have some sort of arrangement
whereby their transportation costs would be shared
on a like basis instead of being borne by the coun-
tries to which they were to go, Mr. Acheson replied
that he thought something could be worked out,
that we had a temporary arrangement which was
voted in the last UNRRA Council meeting by
which they would bear the transportation expenses
of resettlement.
Estimate for UNRRA
Appropriation
PRESIDENT'S LETTER OF TRANSMITTAL
TO CONGRESS 1 .
The White House,
Washington, May 1, 1946.
The Speaker of the House of Representatives.
Sir : I have the honor to transmit herewith 'for
the consideration of Congress a supplemental es-
timate of appropriation for the fiscal year 1946
in the amount of $600,000,000 for the United Na-
tions Relief and Rehabilitation Administration.
The details of this estimate, the necessity there-
for, and the reasons for its submission at this time
are set forth in the letter of the Director of the
Bureau of the Budget, transmitted herewith, in
whose comments and observations tliereon I
concur.
Respectfully yours,
Harry S. Truman
[Enclosure]
' H. Doc. 543, 79th Cong.
Executive Office of the President,
Bureau of the Budget,
Washington 25, D. C, Ap7yl 30, 1.946.
The President,
The White House.
Sir: I have the honor to submit herewith for
your consideration a suijplemental estimate of ap-
propriation for the fiscal year 1946 for the further
pai'ticipation of the United States in the work of
the United Nations Relief and Rehabilitation
Administration in the fiscal years 1946 and 1947
in the amount of $600,000,000 as follows:
united nations relief and rehabilitation
administration
For an additional amount to enable the
President to carry out the provisions of
the Act of March 28, 1944 (Public Law
267), as amended, to be consolidated with
the appropriations for the same purix>se in
the United Nations Relief and Rehabilita-
tion Administration Participation Appro-
priation Act, 1945, the United Nations
Relief and Rehabilitation Administration
Participation Act, 1946, and the First De-
ticiency Appropriation Act, 1946, $600,-
000,000, to remain available until June
30, 1947: Provided, That said consoli-
dated funds may be expended witho\it re-
gard to the limitations in the proviso
clause of the first paragraph of the
United Nations Relief and Rehabilita-
tion Administration Participation Act,
1946 $600, 000, 000
The United Nations Relief and Rehabilitation
Administration is in urgent need of additional
funds at this time in order to continue its program.
Congress has authorized the appropriation of
$2,700,000,000 for United States participation in
the UNRRA activities, of which amount $2,100,-
000,000 have already been appropriated. The
$600,000,000 herein requested will complete the au-
thorized contribution.
The foregoing supplemental estimate of appro-
priation is made necessary by reason of contingen-
cies which have arisen since the transmission of
the Budget for the fiscal year 1946. I recommend
that it be transmitted to the Congress.
Very resjiectf uUy yours,
Harold D. Smith,
Director of the Bureau of the Budget.
MAY 19, 1946
867
Visit of Manuel Roxas
to United States
STATEMENT BY THE PRESIDENT
[Releaseil to the press by the White House May 10]
I was happy to meet today the newly elected
President of the Philippine Commonwealth, who
will, on July 4, be proclaimed President of the
Republic of the Philippines.
General Roxas will have, as President Osmeiia
has had, the full and heart-felt cooperation of the
United States Government in the many mutual
concerns of Philippjne-American relations. The
United States is committed to the advancement of
the national welfare of the infant Republic. We
sympathize with the plight of the heroic Philip-
pine people. We shall continue to do wdiatever
we can to help them on the road to economic re-
covery and national prosperity.
We discussed some of the more immediate needs
of the Commonwealth. President-elect Roxas was
authorized by President Osmeiia to speak for the
Philippine nation in these discussions. I expect to
see General Roxas again befoi'e he leaves. The
discussions will go forward with other officials of
this Government.
Visit of Bolivian Educator
[Released to the press May a]
Enrique Baldivieso, professor of constitutional
law and of Greek philosophy in the University of
La Paz, Bolivia, is visiting the United States at
the invitation of the Department of State.
While in the United States Dr. Baldivieso plans
to visit some of the universities, especially their
law schools, industrial establishments, and certain
Government agencies. He is interested in a study
of the social-security and social-service programs
of the United States and, in connection with his
visit to the Department of Labor, hopes also to be
able to visit a State Labor Department.
During his three months in the United States,
Dr. Baldivieso will visit New York, New Haven,
Boston, Buffalo, Niagara Falls, Detroit, Ann Ar-
bor, Chicago, and Washington.
Protocol for Extension of Inter-
American Coffee Agreement
[Released to the press May 9]
President Truman on May 7, 1946 proclaimed the
protocol for the extension of the Inter- American
Coffee Agreement for one year from October 1,
1945. The protocol was open for signature at
Washington from October 1, 1945 to November 1,
1945, and during that period was sign^ed for the
United States of America (subject to ratification)
and the 14 other American republics parties to the
Inter- American Coffee Agreement of November 28,
1940, namely: Brazil, Colombia (ad referendum),
Costa Rica, Cuba (subject to ratification by its
Senate), Dominican Republic, Ecuador (ad refer-
endum). El Salvador, Guatemala (ad referen-
dum), Haiti, Honduras, Mexico, Nicaragua (ad
referendum), Peru (ad referendum), and Vene-
zuela (ad referendum). The protocol was ap-
proved by the Senate on April 11, 1946 and was
ratified by the President on April 29. The instru-
ment of ratification by the United States was de-
posited with the Pan American Union on May 1,
1946.
The protocol retains the framework of the Inter-
American Coffee Agreement for a one-year period
but suspends the provisions of ai'ticles I to VIII,
inclusive, of that agreement, which relates to cof-
fee quotas, with the exception that under emer-
gency conditions those articles of the agreement
shall again become effective upon a motion ap-
proved by at least 95 percent of the total vote of
the Inter-American Coffee Board.
Article 3 of the protocol provides that during
the one-year period for which the protocol extends
the agreement the Inter-American Coffee Board
shall undertake to prepare a thorough analysis of
the world coffee situation and shall formulate rec-
ommendations, for the consideration of the govern-
ments now participating in the agreement and of
other governments which might be interested in
participating in a revised agreement, regarding
the type of international cooperation that appears
most likely to contribute to the development of
sound, prosperous conditions in international trade
in coffee equitable for both producers and consum-
ers. Those recommendations are, however, to take
account of any general principles of commodity
policy embodied in any agi-eement which may be
concluded under the auspices of the United Nations
prior to the submission of the recommendations.
868
DEPARTMENT OF STATE BULLETIN
Costa Rican Journalist
Visits U.S.
[Reloaspd to the press April 10]
Otilio Ulate, owner and publisher of the Diai'io
de Costa Rica, largest newspaper in Costa Rica,
and the evening paper, La Hora, both published
in San Jose, Costa Eica, is in the United States
at the invitation of the Department of State under
its travel-grant xerogram. Mr. Ulate, for many
years a distinguished journalist and writer in his
country, has recently returned from Europe,
where he spent several months as a war corre-
spondent accredited by the United States War
Dejiartment.
Mr. Ulate M-ill spend two months in the United
States, during which time he will visit Washing-
ton, New York, Knoxville, Chicago, San Fran-
cisco. Los Angeles, Xew Orleans, and Miami.
Visit of Argentine
Mathematician
[Released to the press May 10]
Cortes Pla. who has been for many years Vice
Rector of the University of the Litoral, Santa Fe,
Argentina, and dean of the faculty of mathematical
sciences in that institution, is visiting the United
States to observe university administration and or-
ganization and to confer with colleagues in mathe-
matics and physics, at the invitation of the De-
partment of State.
Dr. Pla was president of the Association of Pro-
fessors of the University of the Litoral. In 1937
he went to Rio de Janeiro as ifelegate to the South
American Engineering Congress.
During his three months in the United States
Dr. Pla plans to visit the following universities:
Johns Hopkins, Princeton, Columbia, Cornell,
Yale, Harvard, Massachusetts Institute of Tech-
nology. Michigan, Illinois, and Wisconsin.
Agreement With Turkey for Final Settlement of Lencl-Lease
[Released to the press May 8]
The United States and Turkey on May 7 signed
an agreement providing for the final settlement
of Turkey's lend-lease account. The agreement,
which was negotiated in Ankara by United States
Ambassador Edwin C. Wilson, calls for cash pay-
ment by Turkey of $-1,500,000 within 30 days.
Turkey thus becomes the first country which re-
ceived substantial quantities of supplies as lend-
lease aid to agree with this Government on an im-
mediate cash liquidation of its entire financial ob-
ligation for lend-lease suiDplies.
To strengthen Turkey's capacity to resist Axis
pressure and to meet such demands for Turkish
assistance as Allied strategy might require, the
United States and Great Britain delivered sub-
stantial (juantities of war material to Turkey dur-
ing the war. Under the authority of the Lend-
Lease Act, the United States delivered nearly
$90,000,000 worth of military equipment under
straight lend-lease. Additional quantities of sup-
plies for the civilian economy were delivered to
Turkey under cash-reimbursement lend-lease for
which the Turks paid at the time of shipment.
Under the settlement just negotiated, Turkey is
to pay for lend-lease equipment of a civilian nature
now located in Turkey, and receives full title to
this equipment, which had an original cost value
of $5,728,000. INIilitary items still in the possession
of the Turkish armed forces are not being paid
for, but are subject to the right of recapture, al-
though the United States stated in the agreement
that it does not intend generall}' to exercise this
right. The settlement made with Turkey also
covers all outstanding claims between the two
Governments arising from the war. The agree-
ment is expected to receive final ratification by the
Turkish Grand National Assembly within a few-
days.
All unsold United States Army surpluses lo-
cated in Turkey, which had an original cost value
of just under $700,000, were purchased late last
month by the Turkish Government for $500,000.
Turkey has also recently concluded an agreement
with the United States covering civil-aviation
riglits. containing terms i-egarded as satisfactory
by the Department of State. Turkey is a member
of the United Nations and the United Nations
Relief and Rehabilitation Administration, and has
applied for membership in the International Bank
and tlie International Monetary Fund.
MAY 19, 19-16
869
Entry Into Force of Protocols Prolonging the 1944
Sanitary Conventions
[Released to the press May 3]
On April 30, IDiO protocols prolonging the In-
torncational Sanitary Convention, 1944, and the In-
ternational Sanitary Convention for Aerial Navi-
gation, 1944, beyond the expiration date of July
15, 1946, came into force between the Governments
of Australia, Canada, China, France, Greece,
Haiti, Luxembourg, Nicaragua, New Zealand, and
the United Kingdom of Great Britain and Nortli-
ern Ireland on behalf of which tliev were signed.
The two protocols were signed also, with a reserva-
tion requiring ratification, on behalf of Belgium,
Ecuador, and the United States of America. These
protocols were opened for signature in the Depart-
ment of State on Api'il 23, 1946.
The two protocols are identical with the excep-
tion of the titles and references to the respective
conventions to which they relate. Following is
the English text of the Protocol to Prolong tlie
International Sanitary Convention, 1944 :
Protocol To Prolong the Interxational Saxitaky Convention, 1944
Modifying THE International Sanitary Convention of June 21, 192G
The Governments signatory to the present Pro-
tocol,
Considering that, unless prolonged in force by
action taken for that purpose by the interested
Governments, the International Sanitary Conven-
tion, 1944, Modifying the International Sanitary
Convention of June 21, 1926, will expire on July
15, 1946, the expiration of eighteen months from
the date on which the said 1944 Convention en-
tered into force ; and
Considering that it is desirable that the said
1944 Convention shall be prolonged in force after
July 15, 1946 between the Governments parties
thereto ;
Have appointed their respective Plenipotenti-
aries who, having deposited their full powers,
found in good and proper form, have agi'eed as
follows :
Article I
Subject to the limitation provided for in Article
II of the present Protocol, the International Sani-
tary Convention, 1944, Modifying tlie Interna-
tional Sanitary Convention of June 21, 1926, shall
be prolonged in force on and after July 15, 1946, in
resj^ect of each of the Governments parties to the
present Protocol, until the date on which such
Government shall become bound by a further Con-
vention amending or superseding the said 1944
Convention and the said 1926 Convention.
Article II
The United Nations Eelief and Eehabilitation
Administration (hereinafter referred to as
UNRRA) shall continue to perform the duties and
functions assigned to it by the said 1944 Conven-
tion, as prolonged by the present Protocol, until
such time as a new International Health Organiza-
tion shall be established, at which time such duties
and functions shall be transferred to and shall be
assumed by such new International Health Or-
ganization, provided that if the new International
Health Organization has not been formed or, hav-
ing been formed, is unable to perform the above
duties and functions by the date on which UNRRA,
owing to the termination of its activities in Europe
or for any other reason, ceases to be able to perform
them, those duties and functions shall be entrusted
to the Office International d'Hygiene Publique and
the countries signatory to this Protocol will, in
that event, make appi'opriate financial provisions
so as to enable the Office to perform those duties
and functions.
Article III
The present Protocol shall remain open for sig-
nature until May 1, 1946.
Article IV
The present Pi'otocol shall come into force when
it has been signed without reservation in regard to
ratification, or instruments of ratification have
870
DEPARTMENT OF STATE BULLETIN
been deposited or notifications of accession have
been received on behalf of at least ten governments.
The present Protocol shall come into force in re-
spect of each of the other signatory Governments
on the date of signature on its behalf, unless such
signature is made with a reservation in regard to
ratification, in which event the present Protocol
shall come into force in respect of such Govern-
ment on the date of the deposit of its instrument of
ratification.
Abticle V
After May 1, 1946, the present Protocol shall be
open to accession by any Government which is a
party to the 1944 Convention and is not a signatory
to the present Protocol. Each accession shall be
notified in writing to the Government of the United
States of America.
Accessions notified on or before the date on
which the present Protocol enters into force shall
be effective as of that date. Accessions notified
after the date of the entry into force of the present
Protocol shall become effective in respect of each
Government upon the date of the receipt of that
Government's notification of accession.
In witness whereof, the undersigned Plenipo-
tentiaries sign the present Protocol, on the date
indicated opposite their respective signatures, in
the English and French languages, both texts be-
ing equally authentic, in a single original which
shall be deposited in the archives of the Govern-
ment of the United States of America and of which
certified copies shall be furnished by the Govei'n-
ment of the United States of America to each of
the signatory and acceding Governments and to
each of the Governments parties to the said 1944
Convention or the said 1926 Convention.
Done at Washington this twenty-third day of
April, 1946.
Sanitary Conventions
For New Zealand :
C. A. Beebndsen April 23, 1946
For Belgium :
Sous reserve de ratification.
SiLVEBCKUYS April 24, 1946
For Canada :
Lester B Pearson April 25, 1946
For Nicaragua :
Alberto Seviixa Sacasa April 2G, 1946
For the United Kingdom of Great Britain and Northern
Ireland :
Halifax April 29, 1946
For the United States of America :
Subject to ratification.
Dean Acheso.n
For Greece :
P. ECONOMOU-GOURAS
For China :
Wei Tao-Min(;
For Luxembourg :
HUGUES Le Gallais
For Ecuador :
Subject to ratification.
L. N. Ponce
For Australia :
Subject to the reservations with
ceded to the 1944 Convention to
relates.
J. B. Brigden
Haiti :
Dantes BeU-BGARDE
France :
H Bonnet
For
For
April 30, 1946
April 30, 1946
April 30, 1946
April 30, 1946
April 30, 1946
which Australia ac-
which this Protocol
April 30, 1946
April 30, 1946
April 30, 1946
Venezuelan Tuberculosis
Specialist Visits United States
Dr. Pedro Iturbe, president of the Federation
of Associations for the Prevention of Tuberculosis
in Venezuela, is visiting in this country at the invi-
tation of the Department of State. He will confer
with colleagues and observe recent developments
in his special field of interest.
He was president of the Second Venezuelan
Congress for Tuberculosis and attended the Sixth
Pan American Congi'ess on Tuberculosis. In 1940
he attended a conference for hospital administra-
tors held in Puerto Rico-
Safety Consultant Arrives
in Uruguay
John W. Welch of Lincoln, New Hampshire,
has arrived in Montevideo, Uruguay, to serve as
consultant to the Banco Nacional de Seguros.
He will work with them on training factory in-
spectors and developing safety education methods
for management and woi-kers. Mr. Welch is one
of a group of distinguished educators who have
received travel grants, under the program admin-
istered by the Department of State for the ex-
change of professors and technical experts be-
tween this country and the other American
republics.
MAY 19, 1946
871
LATCHFOim— Continued from page 839.
Warsiiw Convention of 1929 relating to the lia-
bility of air transport operators for damages to
persons and property in international transporta-
tion, the Air Salvage at Sea Convention of 1938
under which the operators of aircraft would be
liable for the payment of salvage awards, the Rome
Convention of 1933 relating to damages caused by
aircraft to persons and property on the surface,
and the proposed convention relating to the lia-
bility of the air transport operator in the event of
aerial collisions. The question arises in this in-
stance whether, in the event there should be an
accident in which the air transport operator might
be liable under a series of these conventions,
it would be feasible to scale down the operator's
over-all liability in order to relieve him of the full
burden of an accumulated liability under the
terms of several conventions.
It is understood from the proceedings of the
January 1946 sessions of CITEJA that the sub-
ject of arbitration mentioned on the agenda has
to do with a proposal to confer upon CITEJA the
power to arbitrate disputes as to the application of
a rule of international air law when such disputes
arise between governments, and under certain con-
ditions between individuals.
Although it is difficult to give a satisfactory
brief definition of the term general average, in
maritime practice the principle of general average
is that the voluntary loss of one interest resulting in
saving other interests from loss is apportioned
among all the interests. It is understood that the
CITEJA will consider the extent to which the
maritime principle of general average might be
made applicable to air navigation.
The CITEJA decided in January 1946 to hold
its next plenai-y session at Cairo beginning on No-
vember 4, 1946. It is expected that the CITEJA
will then pass upon such projects as may be ready
for submission by the appropriate CITEJA com-
missions. It has been the practice in the past for
one or more of the commissions to meet at the time
of the holding of the plenary session of the
CITEJA. It is altogether likely therefore that
some of the CITEJA commissions to which sub-
jects on the agenda have been assigned will con-
sider some of these subjects at Cairo before they
are finally referred to the CITEJA in plenary
session.
Atomic Energy Act of 1946. S. Rept. 1211, 79th Cong.,
to accompany S. 1717. 125 pp.
Department of State Appropriation Bill for 1947 : Hear-
ings Before the Subcommittee of the Committee on Appro-
priations, House of Representatives, Seventy-ninth Con-
gress, second session, on the Department of State Appro-
priation Bill for 1947. ii, 700 pp. [Indexed.]
Second Deficiency Appropi'iation Bill, 1946. S. Rept. 1236,
79th Cong., to accompany H. R. 5S90. 11 pp. [Department
of State, pp. 9-10.]
An Act To authorize the President to appoint Lieuten-
ant General Walter B. Smith as Ambassador to the Union
of Soviet Socialist Republics, without affecting his mili-
tary status and perquisites. Approved March 15, 1946.
H. R. 5020. Private Law 428, 79th Cong. 1 p.
Lt. Gen. Walter B. Smith. S. Rept. 1040, 79th Cong., to
accompany H. R. 5520. 3 pp. [Department of State, p. 2.]
[Favorable report.]
Providing For the Detail of United States Military and
Naval Missions to Foreign Governments. H. Rept. 1753,
79th Cong., to accompany H.R. 5433. 6 pp. [Favorable
report.]
Authorizing the Use of Naval Vessels To Determine
the Effect of Atomic Weapons Upon Such Vessels. S.
Rept. 1071, 79th Cong., to accompany H.J. Res. 307. 4 pp.
[Favorable report.]
An Effective Wool Program. Letter from Hon. Harry
S. Truman, President of the United States, to Hon. Joseph
C. O'Mahoney, a Senator from the State of Wyoming,
Chairman, Special Committee To Investigate Production,
Transportation, and Marketing of Wool, Submitting a
Memorandum on the Proposed Wool Program. S. Doc.
140, 79th Cong., ii, 6 pp.
Hearings on Science Legislation (S. 1297 and Related
Bills) : Hearings Before a Subcommittee of the Commit-
tee on Military Affairs, United States Senate, Seventy-
ninth Congress, first session, pursuant to S. Res. 107 (78th
Congress) and S. Res. 146 (79th Congress), authorizing
a study of the possibilities of better mobilizing the na-
tional resources of the United States. Part 5, including
statements submitted for the record, November 1 and 2,
1945. vii, 272 pp. Part 6, March 5, 1946, Testimony of
Science Talent Search Finalists, ii, 14 pp.
National Science Foundation : Report from the Commit-
tee on Military Affairs, United States Senate, pursuant to
S. 1850, a bill to promote the progress of science and the
useful arts, to secure the national defense, to advance the
national health and welfare, and for other purposes. S.
Rept. 1136, 79th Cong., iii, 56 pp. [Favorable report.]
Philippine Trade Act of 1946. H. Rept. 1821, 79th Cong.,
to accompany H. R. 5856. 69 pp. [Favorable report.]
Implementation of the Financial Agreement Dated De-
cember 6, 1945, Between the United States and the United
Kingdom. S. Rept. 1144, 79th Cong., to accompany S.J.
Res. 138. 23 pp. [Favorable report.]
872
DEPARTMENT OF STATE BULLETIN
Providiug for Membership by the United States in the
United Nations Educational, Scientific, and Cultural Or-
ganization. H. Kept. 1927, 79th Cong., to accompany H.J.
Res. 305. 10 PP- [Department of State, p. 2.] [Favor-
able report.]
Second Deficiency Appropriation Bill, 1946. H. Rept.
1817, 79th Cong., to accompany H.R. 5S90. 27 pp. [De-
partment of State, pp. 9, 24.]
State, Justice, Commerce, and the Judiciary, Appropria-
tion Bill, Fiscal Year 1947. H. Rept. 1890, 79th Cong., to
accompany H.R. 6056. 47 pp. [Department of State, pp.
5-15; 33-37.]
Second Deficiency Appropriation Bill for 1946: Hearings
Before the Subcommittee of the Committee on Appropria-
tions, United States Senate, Seventy-ninth Congress, Sec-
ond Session, on H.R. 5890, an act making appropriations
to supply deficiencies in certain appropriations for the
fiscal year ending June 30, 1946, and for prior fiscal years,
to provide supplemental appropriations for the fiscal year
ending June 30, 1946, and for other purposes, ii, 299 pp.
[Indexed.] [State Department, pp. 174-204; 290-91.]
Atomic Energy Act of 1946: Hearings Before the Special
Committee on Atomic Energy, United States Senate,
Seventy-ninth Congress, second session, on S. 1717, a bill
for the development and control of atomic energy. Part
1, January 22 and 23, 1946. iii, 100 pp. Part 2, January
25, 28, 29, 30, 31, and February 1, 1946. iii, 179 pp. Part
3, February 7, 8, 11, 13, and 14, 1946. iii, 140 pp. Part 4,
January 24, 1946. ii, 9 pp.
Atomic Enei-gy : Hearings Before the Special Committee
on Atomic Energy, United States Senate, Seventy-ninth
Congress, Second Session, pursuant to S. Res. 179, a resolu-
tion creating a special committee to investigate problems
relating to the development, use, and control of atomic
energy. Part 5, February 15, 1946. iii. 111 pp.
Foreign Educational Benefits and Surplus Property :
Hearing Before a Subcommittee of the Committee on
Militarv Affairs. United States Senate. Seventy-ninth
Congress, second session, on S. 1-140, a bill authorizing
use of credits established through the sale of surplus
properties abroad for the promotion of international good
will through the exchange of students in the fields of
education, culture, and science, and S. 1636, a bill to amend
the Sun)his Property Act of 1944 to designate the Depart-
ment of State as the disposal agency for surplus property
outside the continental United States, its territories and
possessions, and for other purposes. February 25, 1946.
vli, 56 pp.
The Foreign Service
Consular Offices
The American Consulate at Taipei (Taihoku), Taiwan
(Formosa), which was reestablished on April 11, 1946, is
now being administered as a part of China (rather than
of Japan as prior to the end of the war).
The status of the Consulate at Casablanca, Morocco, was
changed to that of Consulate General on May 4, 1946.
Reference is made to a previous notice of the establish-
ment of an American Consulate General at Berlin, Ger-
many, on March 1, 1946. The Department of State has, in
view of recently received recommendations from the Po-
litical Adviser at Berlin, now decided to consider that a
consular sectifm of the Office of the U. S. Political Adviser
on German Affairs was established on March 1, rather
than a separate ollice.
The American ( 'onsulate at Foynes, Ireland, was closed
on April 30, 1946 and removed to Limerick. The Consulate
at Limerick is considered to have been established on
May 1.
The American Consulate at Bremen, Germany, was
opened on Jlay 1, 1946.
Contents— Continued
Page
Publication of Report of Allied Mission to Observe CJreek
Elections 865
Comments on U.S. Proposals for New Agency To Handle
Resettlement of Displaced Persons 865
Estimate for UNRRA Appropriation: President's Letter of
Transmittal to Congress 866
Visit of Manuel Roxas to United States: Statement by the
President 867
Visit of Bolivian Educator 867
*Protocol for Extension of Inter- American Coffee Agreement. 867
Costa Rican Journalist Visits United States 868
Visit of Argentine Mathematician 868
♦Agreement With Turkey for Final Settlement of Lend-Lease . 868
*Entry Into Force of Protocols Prolonging the 1944 Sanitary
Conventions 869
Venezuelan Tuberculosis Specialist Visits United States . . . 870
Safety Consultant Arrives in Uruguay 870
The Congress 871
The Foreign Service:
Consular Offices 872
* Treaty Information.
PUBLISHED WITH APPROVAL OF DIBECTOR OF BOBEAU OF THE BUDGET
U. S. GOVERNMENT PRINTING OFFICE: 1946
THE DEPARTMENT OF STATE
VOL. XIV, NO. .^60
MAY 26. 1946
Recommendations for the Council of Foreign
Ministers
statement bv THE SECRETARY OF STATE page 891
Former Proclaimed List Nationals and American Foreign
Trade
Article by GEORGE N. MONSMA
pase 875
Germany and the Occupation
A RADIO BROADCAST . . . .
page 910
American Strength: Our Share in World Peace
By ACTING SECRETARY ACHESON page 893
For complete contents
see inside cover
THE DEPARTMENT OF STATE
BULLETIN
^. 8. SUPeRlNTENDENT Of DOCUMENT*
JUN 19 1946^0 Mfe /Its
_^^«NT O*.
Voi.XIV'No. 36r»
Publication 2538
*>•<„, o' '
May 26, 1946
For sale by llie Superintendent of DocumentB
XJ. S. Governn-ent Printing Oflfice
Wa8binglon25, D. C.
Subscripiion:
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Special offer: 13 weeks for S 1-00
(renewable only on yearly basis)
The Department of State BVLLETIIS,
a xjceehly publication compilftl and
edited in the Division of Researt h and
Publication, Office of Public Affairs,
provides the public and interested
agencies of the Covernment uith
information on developments in the
field of foreign relations and on the
uork of the Department of State and
the Foreign Service. The BVLLtllN
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 uell as
special articles on various phases of
international affairs and the functions
of the Department. Information con-
cerning treaties and international
agreements to uhich the United States
is or may become a party and treaties
of general international interett is
included.
Publications of the Department, cu-
mulative lists of uhich are published
at the end of each quarter, as uell as
legislative material in the field of inter-
national relations, are listed currently.
General Policy
Recomniciidations for the Council of Foreign Ministers
Statement by tlie Secretary of State
President-Elect of Coloml^ia To Visit United States. . . .
American Strength: Our Share in W orld Peace
By Acting Secretary Aclieson
U. K.-U. S. Guiding Principles for Solving World Food
Problems
Famine Report to the President
Re]3ort of the Hoover Mission
Request to Yugoslavia for Submitting Testimony in Trial
of General Mikhailovich
Reply to View of Arab Countries on Anglo-American Com-
mittee of Inquiry Report
Diplomatic and Commercial Agreement With the Yemen. .
Economic Affairs
Former Proclaimed List Nationals and American Foreign
Trade
Article by George N. Monsma
U. S. Delegation to PICAO
The Fifth Meeting of the International Cotton Advisory
Committee
Final Resolution of the Fifth Meeting of the International
Cotton Advisory Committee
Principles of Trade for Peace and Prosperity
Statement by the Secretary of State
Policy on Trade Privileges in Ex-Enemy States: Corre-
spondence
Lend-Lease and Surplus Property Settlement With India .
Occupation Matters
Far Eastern Commission: Policy Statements
Charter of the International Military Tribunal for the Far
East:
Changes Made in Text .
Admiral Leahy Consults with British Chiefs of Staff
Germany and the Occupation. A Radio Broadcast.
Policy on Japanese Internal Political Activities. . .
Summations of Activities on Japan and Korea . . .
Page
891
892
893
895
897
909
International Information
Status of American International Broadcasting: Corre-
spondence
International Broadcasting — A National Responsibility
Article by W illiam T. Stone
The United Nations
Proposed Resolution on Membership Applications
Letter from U. S. Representative to Secretary-General . .
Progress Made by Subcommittee on Franco
Functions of International Organizations
International Organizations and Conferences
Calendar of Meeting
Activities and Developments
The Department
Statements, Addresses, and Broadcasts of the \\ eek . . .
{Continued on page 920)
917
917
875
886
887
888
892
908
916
884
890
892
910
915
915
900
905
881
881
882
884
884
920
Former Proclaimed List Nationals and
American Foreign Trade
Article by GEORGE N. MONSMA ^
THE Department of State on March 29, 1!)46.
issued a statenient on behalf of the Govern-
ment ufiencies concerned with the Proclaimed List
of Ccrfahi Blocl'ed Nationals informing Ameri-
can businessmen tliat before establishing or resum-
ing commercial or financial relations abroad with
ex - Proclaimed List nationals they may check
with the Commercial Intelligence Branch of the
Commerce Dejaartment as to the desirability of
such relations.-
To understand fully this Government's service
in this regard it would be well to trace the origin
and growth of the Proclaimed List, its purposes,
and its contribution to the war eilort.
Establishment of the Proclaimed List
As the sunnner of 194 1 was apprt)aching. various
agencies of this Government were administering
controls related to the economic defense of
this country. The agencies administering these
controls naturally took into account the persons
who miglit be involved in the transactions subject
to control. For example, the Office of the Admin-
istrator of Export Control when deciding whether
to license or not to license a particular transaction
was interested in the pei'sons abroad who were
parties to the transaction ; similarly, the Treasury
Department in administering Executive Order
No. 8389 and other foi'eign funds controls was in-
terested in the persons abroad who were party to
any particular transaction which might be under
consideration by the Treasurj' Department. Thus,
various departments and agencies of this Govern-
ment were becoming increasingly interested in the
political sympathies and activities of persons
abroad as they related to the defense of this coun-
try. Various sources of information were avail-
able to the agencies requiring information con-
cerning persons abroad, but there was no ma-
chinery for coordinating the views of the various
agencies concerning such individuals nor was there
a list which could guide American businessmen in
theii' dealings with persons abroad. It thus be-
came evident that it would be necessary to specify
2>ublicly those persons whom this Government con-
sidered undesirable and with respect to whom all
transactions with the United States would be sub-
ject to control by the United States Govermnent.
Under the President's proclamation of July 17,
1941 such a list Mas established and has since been
known as the Proclaaned List of Certain lilocked
Nationals.^ The President of the United States
acting under and by virtue of authority vested in
him by Section 5 (b) of the Act of October G, 1917
(40 Stat. 415) as amended and. Section 6 of the Act
of July -J, 1940 (54 Stat. 714) as amended and by
virtue of all other authority vested in him and by
virtue of the existence of a jaeriod of unlimited
national emergency and finding that the j)roclama-
tion was necessary in the interest of national de-
fense ordered the Secretary of State acting in con-
junction with the Secretary of the Treasury, the
Attorney General, the Secretary of Commerce, the
Administrator of Export Control, and the Cooixli-
nator of Commercial and Cultural Relations be-
tween the American Republics to cause to be pre-
Ijared an approjDriate list of "(a) certain persons
deemed to be, or to have been acting or purporting
to act, directly or indirectly, for the benefit of, or
under the direction of, or under the jurisdiction
' Mr. Monsnia is Acting Assist.Tiit Chief of tlie Division
of Economic Seeurit.v Controls, Office of Economic Security
Policy, Department of Slate.
- Bulletin of Apr. 7, 1946, p. .579.
' Bulletin of July 19, 1941, p. 42.
875
876
DEPARTMENT OF STATE BULLETIN
of. or oil behalf of, or in collaboration with Ger-
many or Ital}' or a national thereof; and {b) cer-
tain persons to whom, or on whose behalf, or for
whose acconnt, the exportation directly or indi-
rectly of any article or material exported from the
United States is deemed to be detrimental to the
interest of national defense." The proclamation
also provided that additions to and deletions from
the list should be made from time to time.
On the same day, July 17. ID-tl, the departments
and agencies of the Government mentioned in the
proclamation issued the original Proclaimed List
consisting of 1,834 names. Several supplements
containing additions to and deletions from the list
were made before Pearl Harbor. On December 9,
1941, just two days after Pearl Harbor, the Pro-
claimed List authorities issued a supplement add-
ing 505 Japanese names to the Proclaimed List.
With the attack on Pearl Harbor and the entry of
the United States into the war, economic defense
changed to economic warfare, and the list became "
an instrument of economic warfare rather than
economic defense. The first indication of this
change was the publication of the Japanese supple-
ment two days after Pearl Harbor.
During the first half year of the operation of the
Proclaimed I.iist it contained only names of persons
in the Western Hemisphere. On January 14, 1942
a supidement was issued which contained for the
first time names of persons in the Eastern Hemi-
sphere. At that time 1,824 names of persons and
concerns in the Eastern Hemisphere were added to
the list. The British had been maintaining for
some time a list similar to the Proclaimed List
known as the Statutory List. Fi-om this time on
the British and American authorities cooperated
very closely in the issuance of their respective lists
so that the lists have been virtually identical.*
•The Depiirtiiient of State issues periodically all revi-
sions and cuniulative supplements of tbe Proclaimed List
of Certain Blocked Nationals. Since the list was proniul-
Siited on July 17. 1041, the DPiiartnient has issued tlie
orisinal list and its Supplements 1-7 which have been
sui)erseded l>y Revision I ; Revision I and its Supplements
1— t, by Revision II: Revision II and its Supplements l-."i,
by Revision III; Revision III and its Supplements 1-4, by
Revisicm IV : Revision IV and its Supplements 1-6, by
Revision V: Revision V and its Supplements 1-6, by Re-
vision VI; Revision VI and its Supplements 1-6, by Revi-
sion VII ; Revision VII and its Supplements 1-6, by Revi-
sion VIII ; Revision VIII and its Siuiplements 1-6. by
Revision IX ; Revision IX and its Supplements 1-8, by
Revision X and its current supiilements.
The Proclaimed List and the Elimination of
Axis Economic Penetration in the Western
Hemisphere
It is so well known by this time as to l.e almost
axiomatic that the Nazi government of Germany
useil Genua u commercial and financial concerns
abroad as a tool to further tlie Nazi cause. Ger-
man economic penetration into the economic life
of the other American republics was so expensive
as to present a real threat to the security of the
Hemisphere, particularly in the drug and pharma-
ceutical, dye and chemical, and construction,
electrical, and engineering fields. In these fields
such names as Bayer, Merck, Schering, I. G.
Farben, A. E.G.. and Siemens-Schuckert have be-
come almost sjaionymous with Axis economic
penetration. The Banco Aleman Transatlantico
and Banco Germanico de la America del Sud were
important factors in the financial world of the
AVestern Hemisphere. The Germans had also
made considerable inroads into the shipping and
air transportation fields. These thoroughly Ger-
man concerns were used as propaganda outlets,
financial agents, espionage centers, suppliers of
critically needed foreign exchange, soui'ces for
smuggling of urgently needed war materials to
German}', and in many other ways were the mis-
sionaries of the Nazi gospel and supporters of the
Nazi cause. These prominent German enterprises
with their numerous subsidiaries and affiliates also
exerted influence over many other enterprises
which supported the German concerns thus in-
creasing the economic penetration to a consider-
able extent. Concerns owned by locally resident
Germans also represent part of the German eco-
nomic strength which in many cases could and did
aid the Nazi machine.
The American republics early realized the ex-
isting and jjotential danger in this German eco-
nomic penetration and in Resolution 5 of the
Fiiuil Act of the Third Meeting of Ministers of
Foreign Affairs of the American Republics held
at Rio de Janeiro, Brazil, in February 1942 rec-
ommended that tb.e American republics adopt
immediately measures nece.s.sarv to cut off all com-
mercial and financial intercourse between the
Western Hemisphere and the Axis and to eliminate
all other financial and commercial activities preju-
dicial to the welfare and security of the American
republics. Resolution (i of the same meeting rec-
ommended that a conference of re|)iesentatives
MAY 26, 7946
877
■ of the central hanks or anah)>zous institutions of
the American repuhlics he convoked for the pur-
> pose of drafting- standards of procedure for eco-
nomic and financial control. Such a conference
was held from June 3(1 to July 10, 1942. at Wash-
ington, D. C. Resolution 7 of this conference rec-
ommended that each of the American repuhlics
ado])t all necessary measures as soon as possible
to eliminate from the commercial, agricultural,
industrial, and financial life of the American re-
publics all influence of governments, nations, and
jiersons within such nations who by any means
were acting against the political or economic in-
dependence or security of the American republics.
To implement this recommendation the resolution
recommended that the business and projierty of
persons or concerns acting against the political
and economic independence or security of the
American republics be subjected to forced transfer
or total liquidation, or in some cases to blocking,
occupation, or intervention. The Final Act of
the Inter-American Conference on War and Peace
held in Mexico City during Feliruary and March
1945 reaffirms, with respect to (Tcrmany and Ja-
pan, Resolution 5 of the Third Meeting of Minis-
ters of Foreign Aii'airs of the American Republics
as later developed in the Inter-American Confer-
ence on Systems of Economic and Financial Con-
trol held in Washington in June and Jidy 1942.
On the basis of these resolutions the American
republics initiated extensive programs for the elim-
ination oi Axis economic penetration. The elim-
ination of these interests is usually accomplished
by liquidation of the business if it is not essential
to the economy of the country or forced sale to
unobjectionable interests if the concern is an es-
sential part of the economy of the country. Where
part of an enterprise is owned or controlled by
undesirable interests and the other part is in the
hands of unobjectionable interests, the enterprise
is usually reorganized to eliminate only the objec-
tionable interests. The programs for economic
and financial control and elimination of Axis eco-
nomic penetration have come to be known as the
"local controls programs" or "replacement pro-
grams". This Government has repeatedly indi-
cated to the other American republics that it de-
sii'es to coordinate its Proclaimed List policy with
the local controls programs of the various Ameri-
can republics. It was only logical that such coor-
dination should be made. When any country
eliminated an Axis concern it was possible to de-
lete not only the name of this concern but also the
names of any persons or firms which had lieen
included in the list primarily because of theii'
association with or activities on behalf of the major
Proclaimed List entity. Since the major Pro-
claimed List entity was eliminated, the reason for
the listing of such names no longer existed and
accordingly such names could be I'emoved from
the list. Moreover, as the local controls programs
progressed it was possible in some cases to remove
certain of the lesser offenders even though not
primarily listed for connection with one of the
large or spearhead Axis entities, because the secu-
rity reasons for listing changed as the local controls
program in any given country became more effec-
tive. The coordination of the Proclaimed List
policy with the local controls programs was so
effective that the Proclaimed List for many West-
ern Hemisphere countries had already been con-
siderably reduced when the cessation of hostilities
in the European theater occurred.
Post-Hostilities Listing Policy
In the summer of 1944 the authorities charged
with the maintenance of the Proclaimed List gave
extensive consideration to the policy which should
be followed upon the .successful termination of hos-
tilities in the European theater. The list had
been keyed more particularly to the war in Europe
than to the war in the Pacific. It was therefore
inevitable that a decision with respect to the con-
tinuation of the list would have to be made once
hostilities had ceased in the European theater.
As a result of these deliberations it was decided
that the list should continue after cessation of hos-
tilities in Europe, and a public statement was is-
sued by this Government and the British Govern-
ment on September 26, 1944 announcing this deci-
sion.^ There were many reasons why it was de-
cided to continue the list after ces.sation of hostili-
ties in Europe. One important consideration was
the fact that certain concerns in neutral European
countries felt that they could trade with Germany
with impunity during the war, and that immedi-
ately upon cessation of liostilities they could con-
tinue trading with Germany if it should be the
victor or could turn to trade with the United Na-
tions if Germany should be defeated. On the othei'
hand, firms in neutral countries who refused to
engage in war trade with Germany were faced
' Bulletin of Oct. 1, 1944, p. 340.
878
DEPARTMENT OF STATE BULLETIN
with a possible boycott by Germany if she should
be victorious. Moreover, in the event of a German
defeat the firms which were willing to forego large
profits in war trade with Germany during the war
because of friendliness to the United Nations'
cause would have to compete for United Nations'
trade with enterprises which had flourished during
the war through extensive trade with Germany.
Thus these friendly concerns stood to lose after the
war no matter which side won, unless some means
were contrived to give them the first opportunity
to obtain a substantial share in the revived post-
hostilities United Nations' trade. If such means
could be devised, friendly firms would have some
incentive, in addition to their loyalty to the dem-
ocratic cause, to refrain from establishing war
trade with Germany. This was a strong i-eason for
the announcement in September 26, 1944 that the
Proclaimed List would continue after the cessa-
tion of hostilities in Europe, thus giving firms
friendly to the democratic cause the edge over firms
which had gone out of their way to assist the enemy
during the war. Among the other reasons why it
was decided the list should go on in the post-hostil-
ities period was the fact that considerable German
assets were leaving Germany and seeking safe
haven in neutral countries in Europe and to some
extent in the Western Hemisphere. Some of these
assets represented the funds of important German
officials and commercial enterprises ; others repre-
sented assets looted in the German-occupied terri-
tories. It was felt that the list could serve a useful
purpose in connection with the uncovering and
identifying of such assets. It was also felt that
the list could serve a useful purpose in controlling
subsidiaries of German enterprises whose head
office would be placed under Allied control at the
termination of hostilities.
At the same time it was felt that after V-E Day
the changed security situation made revision of
the list desirable. This revision actually took
place in two stages. Following the cessation of
hostilities in Europe the names of minor offenders
were culled from the list and deleted in June 194.5.
The announcement issued at the time these names
were deleted indicated that the names were deleted
only because of the changed security situation and
that their deletion did iu)t constitute any change
in attitude of this Government with respect to
their undesirability.'' The second phase of this
" Bulletin of June 24, 1945, p. 1167.
post-hostilities revision consisted of a thorough
review of the facts of every case remaining on the
list and the selection of the worst offenders to
remain on the list. After this "hard core of worst
offenders" had been selected on the basis of the
case-by-case study, all other names were removed
from the list in November of 194,5.
The November supplement contained 5,081 de-
letions, which left 6,053 names on the "hard core"'
list. This figure represents a substantial reduc-
tion of the list from its peak of 15,446 names.
Since the November supplement, there have been
relatively few deletions from the list, wluch is
only natural in view of the fact that the whole
list was reviewed case-by-case before the issuance
of the November supplement. The list, however,
is not a frozen list, which is attested by the fact
that there have been some deletions and even more
by the fact that there have been additions to the
list. It is not contemplated that this Government
will ever wish to operate a frozen list. It may
be expected that there will always be additions
and deletions to the list where good reason exists.
It is not hard to understand, however, that dele-
tions will be few since the list has been reduced
to a "hard core of worst offenders.''
From the foregoing, it is obvious that there are
two types of deletions : the one based on the merits
of the individual case; the other, on the changed
.security situation following the cessation of hos-
tilities or the effectiveness of the local controls
programs of the country where the individual is
resident or the concern is located. The so-called
"merit'' deletions occur after a reorganization
eliminating undesirable elements in the firm or
after it has been demonstrated on the merits of the
case that listing is no longer necessary. Deletions
of the second type do not depend on the facts of
the individual case nearly so nuich as on the
changed security situation or the local controls of
a given country. Such deletions are referred to
as "group" deletions. As far as deletion in such
cases has any reference to the merits of the indi-
vidual case, it simply indicates that the Pro-
claimed List authorities do not consider the person
or concern to be one of the worst offenders.
Attitude Toward Former Proclaimed List
Nationals
Since some firms were deleted from the list for
merit and some for reasons other than the merits
of the individual case, it was inevitable tliat the
MAY 26, 1946
879
question of the attitude which should be adopted
toward persons or firms deleted from the Pro-
claimed List for reasons other than merit should
arise. In the first place, American exporters
wished to know whether there was any objection
to American business reestablishing previous trade
connections and forming new trade connections
with former Proclaimed List nationals. At the
same time, questions were arising abroad. Obvi-
ously, there was no problem where a firm had been
deleted for merit. The problem arose in connection
with firms which wei-e deleted for reasons other
than the merits of the individual case. It was
felt by many that persons who had worked against
us all during the war should not immediately upon
the cessation of hostilities be received back into the
family of American business enterprise and that
the concerns which had been friendly to us all
during the war when supplies were limited should
have the first opportunity for establishing or re-
establishing trade connections with American
business in the post-war period when supplies were
increasing. As indicated previously, one of the
reasons for continuing the list was to give friendly
firms the first opportunity to obtain American
business contacts. For similar reasons it was felt
that firms which had been friendly to us all during
the war should also have an advantage over the
concerns deleted for reasons other than merit.
If the American firms wei'e to give agencies to
former Proclaimed List nationals deleted for rea-
sons other than merit, the general public in a
friendly country would scarcely understand how
this could occur. Suppose, for example, that a
firm which represented important United States
firms had been included in the Proclaimed List
during the major portion of the war, the firm then
being deleted in a group deletion. If the United
States firm were to reestablish its connection with
this agent or business representative the sequence
of events would not be hard to imagine. The
ex-Proclaimed List concern would immediately
advertise extensively its reinstatement to a sur-
prised public. The business establishment would
soon have a lai-ge sign advertising the American
connection, and our friends in that republic would
not be able to understand how the leopard had
changed its spots.
Not only is the general public in a friendly
country concerned with the policy which this
Government follows with regard to former Pro-
claimed List nationals but cooperative and
friendly govermnents which have imposed vigor-
ous wartime controls to effect the elimination of
the Axis war potential from their countries also
have a live interest in this subject. When Axis
firms are liquidated, reorganized, or sold by
friendly governments, it is frequently necessary to
discharge former employees who were actively en-
gaged in pro-Axis activities. Many of such dis-
charged employees liave been deleted from the
Proclaimed List in group deletions. If such em-
ployees should be placed in charge of local sales
organization of a United States firm, it would ob-
viously be difficult indeed for the cooperative gov-
ernments to understand such an appointment.
There are indications that German businessmen
abroad feel that now that Germany has been de-
feated it is for them to preserve (ierman assets,
technical skills, culture, and ideologies against the
day when the homeland can rise again. In some
countries the Nazis are doing their work surrepti-
tiously; in others there is a bold, outspoken, public
program. Obviously, American firms do not wish
to assist this smouldering flame of Nazism by ac-
cepting its proponents into the bosom of American
foreign commerce, allowing the profits derived
therefrom to be used for such nefarious ends.
From a purely commercial standpoint former
Proclaimed List nationals are not the most desir-
able trade contacts. Many have suffered consid-
ei-ably during the war years by being on the Pro-
claimed List so that their ability to properly rep-
resent American firms has been greatly impaired.
Many have lost the respect of their neighbors and
the good-will of their community because they
have been publicly identified as unfriendly to the
United Nations during the war. Both of these fac-
tors would impair their sales ability. There is evi-
dence too that former Proclaimed List nationals
are willing to disparage American products and
praise German products and to sabotage Ameri-
can commercial interests by approaching their cus-
tomers in somewhat the following vein. The im-
plication is sometimes made that the American
products sold are inferior and a temporary line,
pending reestablishment of "solid" German lines.
It is obviously not in the interests of the United
States or its manufacturers to chance being repre-
sented by persons of this type — -those who are, in
truth, unfriendly to the United States and United
States concerns, though professing friendship.
880
DEPARTMENT OF STATE BULLETm
After careful consideration of facts such as the
foregoing it was felt that the most feasible ap-
proach to this jirohleni would be to inform Ameri-
can businessmen ui)on their request whether or not
a former Pioclaimed List national had been de-
leted on the merits of the individual case. Ameri-
can ex])(irters had indicated that they desired this
information and that they were eager to cooperate
in this regard. The logical agency of the Govern-
,ment to furnish such information is the Depart-
ment of Commerce, which has for many years pro-
vided commercial information to the American
businessman and has during the war been a great
help to American businessmen by furnisliing infor-
mation concerning and explaining various Govern-
ment wartime controls. The Commerce Dei)art-
ment, in the Foreign Commerce Weekly of August
4, 1945, stated that the Commerce Department was
prepared to furnish this service to American busi-
nessmen. The service has been in operation since
that time.
The statement mentioned in the first paragraph
of this article was issued on March 20 in order
to give wider jjublicity to the fact that this service
is available. In this statement American business-
men are informed that before establi.shing or re-
suming commercial or financial relations abroad
with former Proclaimed List nationals they may
check with the Commercial Intelligence Branch
of the Department of Commei'ce as to the desira-
bility of such relations. The statement goes on to
say that such connections with former Proclaimed
List individuals and firms, except those who have
been deleted from tlie Proclaimed List without
prejudice, would have to be a factor considered
in cases arising for the protection of American
interests abroad and that while our Government
always will protect the legitimate rights and in-
terests of American business abroad it would not
wish to take any action which would assist those
who had formerly worked against our vital na-
tional interests and who might do so again if op-
portunity offered.
It should be noted tluit the program with respect
to former Proclaimed List nationals is essentially
a service. American business enterprises are not
prohibited from dealing with former Proclaimed
List nationals. Rather information is made
available to American businessmen and their co-
operation is solicited.
It should also be noted that the program is not
designed to prevent American goods reaching the
1 ands (if former Proclaimed List nationals de-
leted for reasons other than merit. Tiie program
is not designed to prevent such former Proclaimed
List nationals from riding in American-made au-
tomobiles, smoking American-made cigarettes, or
wearing American-made shirts. The program is
not aimed at preventing individual sales to such
ex-Proclaimed List nationals. The program is
rather aimed at agency relationships, representa-
tions, distributorships, and similar continuing
trade connections or contacts. Although the pro-
gram is not designed to prevent ex-Proclaimed List
nationals deleted for reasons other than merit
from buying American goods, it is aimed at dis-
couraging and if possible preventing a situation
where the nationals of a friendly and cooperative
country nuist go to such persons to obtain Ameri-
can goods. The program is designed to prevent
such persons from being accepted into the family
of American business and being in on the money-
making side of American business. Thus the
new program is not a trade barrier. It does not
stop the flow of American merchandise abroad. It
does not atfect the flow of American merchandise;
it affects only the channel which this flow takes. It
does not involve export controls, nor does the plan
interfere with trade promotion policy or programs.
It is based on the conviction of government and
business that it is more desirable from all points of
view to have American goods distributed by per-
s(Mis or ctincerns friendly to American democratic
ideals and institutions rather than to have such
goods distributed abroad by persons who were un-
friendlj' toward us during the recent conflict and
who might be unfriendly toward us again if op-
l)ortunity afforded.
It took a great deal of "blood, sweat, and tears"
to defeat the Nazi and Japanese war machines in
Europe and the Pacific, and a great deal of time,
energ}', and money has gone into the effort to elimi-
nate Axis economic penetration abroad. Of these
facts the American foreign trader is well aware,
and it is believed that when establishing trade
contacts abroad he will wish to act accordingly.
The United Nations
Proposed Resolution on Membership Applications
LETTER FROM UNITED STATES REPRESENTATIVE TO SECRETARY-GENERAL '
10 May 1946.
My Deak Mr. Secretary-General :
On instructions from my Government. I liave
the honour to request that the matter of establish-
ing general arrangements whereby the Security
Council may receive and consider membership ap-
jilications with a view toward reconnnending to
the General Assembly at its forthcoming meeting
on September 3. 194(), the admission of any quali-
fied apjilicant States to membership pui'suant to
Article i of the Charter, be placed on the agenda
of the next meeting of the Security Council.
I attach hereto a copy of a resolution - which I
shall propose for the consideration of the Security
Council.
Sincerely yours,
E. R. Stettinius
The Security Council
taking into account the fact tliat, under Article
4 of the Charter, membership in the United Na-
tions is open to all peace-loving states which accept
the obligations contained in the Cliarter, and, in
tiie judgment of the Organizations, are able and
willing to carry out these obligations; and
taking into account the fact that the General
Assembly, which' acts to admit applicant states to
membership on the recommendation of the Secu-
i-ity Council, will meet for the second part of its
first session on September 3, 1946,
Resolves that :
1. Applications for membership wliich have
been or may be received by the Secretary-General
shall be considered by the Security Council at a
meeting or meetings to be held in August 1946 for
this specific purpose.
2. Applications for membership which have
been or may be received by the Secretary-General
not later than July 15. 1946; shall be referred to a
committee composed of a representative of each
of the members of the Security Council for exam-
ination and report to the Council not later than
August 1, 1946.
Progress Made by Subcommittee on Franco
The subcommittee on Franco at its meeting on
May 10 concluded its jjreliminary studies on the
scope of evidence necessary and the method of con-
ducting the inquiry entrusted to it by the Security
Council.
To date the following communications had been
sent b_\ the Secretary-General on the instruction
of the subcommittee to member governments of
the United Nations and to inter-Allied bodies re-
questing information on the Franco regime:
1. Apnl i25 Letter containing general request to
and 30 all members of the United Nations
for information on Spain.
2. May 3 Cable to the Chairman of the United
Nations War Crimes Commission in
695136—46 2
London requesting information re-
garding the presence of German war
criminals on Spanish territory.
3. May 6 Letter enclosing the "Statement of
and 7 the Nature of the Evidence Required
by the Sub-Committee" to all the
United Nations, asking for all rele-
vant information to the questions in-
cluded in the statement.
' S/.56, JIa.v 10, 1946.
"This resolution was adopted unaiiimousl.v Ij.v the Se-
curity Council at its 42d meeting on Ma.v 17, 1946.
been or may be received by the Secretary-General
'' Established by the Security Council by its resolution as
adopted at its 39tli meeting on Apr. 29. 1946. For test of
the resolution see Bulletin of May 12, 1946, p. 796.
881
882
DEPARTMENT OF STATE BULLETIN
■i. May 8 Cable to the cliief prosecutors of the
U.S.A., U.K., U.S.S.R., and France
of the International Military Tribu-
nal at Niirnberg-, requesting sijecific
information concerning the attitude
of the Franco regime during the re-
cent war to the Axis powers and the
Allied powers.
5. May 8 Cable to the Chairman, Allied Coun-
cil for Japan, Tokyo, requesting spe-
cific information concerning the sub-
vei'sive activities of Falange and
Franco organizations in Japan on
former Japanese occupied territories
directed against the United Nations.
6. May 8 Cable to the Cliairman of the Allied
Control Council in Germany. Berlin,
requesting specific information re-
garding the extent to which the
Franco regime continues to harbor
German agents, organizations, war
criminals, etc., and the attitude of
the Franco regime during the recent
war to the Axis powers and the Al-
lied powers.
7. May 8 Cable to the League of Nations in
Geneva requesting unpublished docu-
ments and information in regard to
Spain, including records of private
sessions of commissions and commit-
tees.
8. May 8 Cable to the Chairman of the Allied
Commission for Italy, Rome, request-
ing information regarding the atti-
tude of the Franco regime during the
recent war to the Axis powers and
the Allied powers.
9. May 9 Letter to the United States Govern-
ment requesting specific information
Functions of International Organizations ^
FUNCTIONS
I. L. O.
F. A. 0.
UNESCO
WORLD HEALTH
ORGANIZATIONS
(Proposed)
!. Collect and disseminate
information.
Collects and publishes in-
formation.
Collects, analyzes, interprets,
and disseminates information.
Uses all means of mass com-
munication.
Maintain epidemiological
and statistical service for
collection and dissemina-
tion of information.
2. Conduct special studies.
Makes investigations.
Scientific, technological, social,
and economic research relating
to nutrition, food, and agiicul-
ture. Initiates special studies
and surveys on specific prob-
lems related to welfare of rural
people.
Seel.
Promote research in the field
of health.
3. Issue reports on specific
subjects within scope of
organization.
Issues special reports.
Makes reports.
Seel.
Central information services.
4. Hold conferences on sub-
jects within scope of
organization.
Holds conferences.
Organization includes a confer-
ence.
Has a general conference. The
general conference shall
summon international con-
ferences on education, etc.
Hold world conferences.
5. Develop standards.
Adopts statements on prin-
ciples.
Formulates policies.
Recommends to the nations
concerned the necessary
international conventions.
Develop international stand-
ards.
6. Formulate recommenda-
tions, draft conventions,
and international agree-
ments.
Adopts recommendations,
resolutions, and conven-
tions.
Adopts international premises.
Adopts recommendations, in-
ternational conventions, and
agreements.
Promote conventions, regula-
tions, and agreements.
7. Provide technical assist-
ance:
a. to other international
organizations;
b. to governments.
Gives technical assistance.
Furnishes such technical assist-
ance as governments may
request.
Collaborates with members,
at their request, in the de-
velopment of educational
activities.
Furnish appropriate techni-
cal assistance.
' Document E/TSC/19, May 7, liltfi.
MAY 26, 1946
^8.3
10. Mai/ 8
coiiceniino; the subversive activities
of the Fahinge and other Franco or-
ganizations in the Spanish-speaking 11. -Vr/y ,v
it'])iil>lics of Cential and South
America and in the Philippine Com-
monwealth; specific information on
jii'odiiction by the Franco regime of
war materials, etc. ; documents from
German and Italian archives con-
taining information on Spain: docu-
ments which served as the basis of 12. Moi/ S
the preparation of the report pub-
lislu'd by Foreign Economic Admin-
istration.
Letter to the Governments of all
Central Anu'i'ican and South Amer- 13. M<ii/ 0
ican republics and the Philippine
Commonwealth requesting specific
information concerning the attitude
of the Franco regime during the re-
cent war to the Axis powers and the
Allied powers, with particular ref-
erence to any subversive activities of
the Falange and Franco organiza-
tions in the countries mentioned.
Letter to tiie British Government
requesting s])ecific information re-
garding the use during the war of
Spanish bases by German subma-
rines and concerning the documents
from German and Italian ai'chives
CQUtaining information relevant to
Spain.
Letter to the Italian Govermnent
requesting information concerning
the attitude of the Franco regime
during the recent war to the Axis
powers and the Allied powers.
Letter to tlie Soviet Government re-
ciuesting information regarding the
participation of the Spanish "Blue
Division'' in the war against the
Soviet Union and concerning docu-
ments from German archives con-
taining information relevant to
SjDain.
Functions of International Organizations — Continued
WORLD HEALTH
FUNCTIONS
I. L. 0.
F. A. 0.
UNESCO
ORGANIZATIONS
(Proposed)
8. Promote international co-
Makes international legisla-
Promotes and recommends in-
Promotes collaboration among
International collaboration
operation and initiate
tive proposals.
ternational action.
the nations. Encourages
and mutual a-ssistance; co-
inetliods of collaboration
cooperation among the na-
ordinating authority.
among nations.
tions in all branches of in-
tellectual activity.
9. Cooperate with other in-
Has had liaison otScers on
Cooperates with professional
Cooperates with other special-
Establish effective relation-
ternational organizations.
other committees.
groups and other organiza-
ized inter - governmental
ship with inter-govern-
tions in rm*al welfare, with
agencies whose activities
mental and other interna-
specialized international agen-
are related to its purposes.
tional organizations.
cies in related fields, and with
other international agencies.
10. Promote and initiate in-
Encourages the international
Improve standards of teach-
ternational cooperation
exchange of persons active
ing and training by means
in the training and
in education, science, and
of fellowships, courses,
exchange of technical
culture.
study tours, and exchange
personnel.
of visits.
11, .\dminister services and
Takes all appropriate action to
Provide, upon request,
activities.
implement the pm-poses of
the organization.
health services and facili-
ties to special gi'oups.
Assist governments.
12. Other.
Organizes missions needed to
fulfil their obligations arising
from their acceptance of the
recommendations of the
UNFA Conference. Takes all
appropriate action to im-
plement purposes.
Suggests educational methods.
Give necessary aid at the re-
quest of governments.
Take all necessary and
appropriate action.
Calendar of Meetings
Council of Foreign Ministers:
Meeting of Deputies
London
January 18 — •
t emporarily
adjourned
Meeting of Foreign Ministers
Paris
April 25— ad-
journed on
May 16 un-
til June 15
Far Eastern Commission
Washing-
ton
February 26
Allied-Swiss Negotiations for
Washing-
March 18
German External Assets
ton
International Labor Organiza-
Toledo
Mav 2-1 1
tion: Metal Trades Com-
mittee
International Office of Public
Paris
April 24-
Health
Mav 6
PICAO:
European and Mediterranean
Paris
April 24
Air Route Services Con-
ference
Meeting of the First Annual
Montreal
Mav 21
Assembly
International Cotton Advisory Washing- May 7-14
Committee ton
The dates in the calendar are as of May 19.
FAO: Special Meeting on LTr-
gent Food Problems
International Labor Office:
Ninety-eighth Session of
the Governing Body
The United Nations:
Security Council
Military Staff Committee
Special Committee on Ref-
ugees and Displaced
Persons
International Court of Justice
Conunissions of the Economic
and Social Council
Economic and Social Council
International Health Con-
ference
General Assembly: Second
Part of First Session
Washing- May 20-28
ton
Montreal May 23-28
New York March 25
New York March 25
London April 8
The Hague April 18
New York Ajiril 29
New York May 25
New York June 19
New York Septembers
Activities and Developments
I. The Far Eastern Commission unaiiiinoiisly
approved on May 13 two initial policy statements
■which will form parts of the over-all Interim
Reparations Policy for Japan, which the Commis-
sion is still considering. (Texts printed below.)
Both of these policies are based on the original
Pauley report to the President recommending an
Interim Reparations Removal Program for Japan.
The statement on Army and Navy arsenals, air-
craft industrj', and light-metals industry is a
modification of a proposal submitted to the Com-
mission by the ITnited States Government. This
policy should be understood as constituting but one
part of an Interim Reparations Program; the
Reparations Committee has for several weeks been
considering other industries too, such as machine
884
tools, iron and steel, and shipbuilding, and the
Commission will i-elease additional policies on
these as agreement is reached.
II. The. second of these policy .statements (Re-
moval of Facilities From Japan for Reparations —
Priority According to Ownership or Control) was
also proposed to the Commission by the United
States Government and. after modification, was
agreed to by the Commission. This statement re-
lates reparations removals to the general policy
under which the Suprente Commander for the
Allied Powers has been directed to dissolve mo-
nopolies, cartels, and combinations of economic
power. The present statement, of course, is only
an incidental part of the complete program to be
determined with respect to the Zaibatsu.
MAY 26, 1946
III. The CDinmission also unanimously ap-
proved the attaelied policy with respect to criteria
for the adoption of a new Japanese Constitution.
(Text printed below.) The Commission is study-
ing the matter of the Constitution further with
the view of reaching agreement on additional poli-
cies in this regard.
/. Interim Reparations Removal Program Army and
Navy Arsenals; Aircraft Industry: Light Metals Industry
The action specified below should be taken with
respect to facilities identified in the three listed
categories of Japanese industry. !Such action, un-
der tlie Interim Reparations Removal Program,
should be taken without prejudice to further re-
movals that may be ordered under a final repara-
tions program.
1. Army and Navy Arsenals
( Definitions : "Plants and establishments owned
and operated by the Japanese Army or Navy en-
gaged in the development, production, mainte-
nance, testing or storage of equipment or supplies
for use in war or warlike purposes. (Arsenals as
defined herein embraces a broad category of facili-
ties distinguished by their ownershij) rather than
by the nature of the operation and departs from
the more usual connotation of ordnance manufac-
the more usual connotation of ordnance manufac-
in a separate paper.")
(I. All facilities within this category should be
made available for claim, subject to the following
limitations:
(i) Special Purpose Machinery and Equipment
All nuxchinery, equipment and accessories which
by virtue of initial design, construction, or major
structural change are, as individual items, special
purpose in nature and functionally limited to use
in connection with equipment or supplies for war
or warlike purposes, should be held pending fur-
ther instructions concerning their disposition.
(2) Shipyards
Shipbuilding and ship repair facilities should
be disposed of in accordance with policy to be de-
cided later.
(S) Non-annament Facilities
Those facilities which have been engaged in the
production of such non-durable consumer goods
as textiles, clothing, processed foods, and pharma-
ceuticals, should be left for disposal under the final
reparations program, and not be made available
885
for claim luider the Interim Reparations Removal
Program.
( 4 ) Fertilizer and Fuel Facilities
Those facilities which can be readily used in the
jn-oduction of fertilizer and fuel, other than syn-
thetic oil, should be left for disposal later and not
be made available immediately for claim under the
Interim Reparations Removal Program.
2. Aircraft Industry
(Definitions : "Plants and establishments prima-
lily engaged in the manufacture or assembly of
finished aircraft, airframes, aircraft engines, and
aircraft propellers, or in supplying fabricated
materials semi-finished, or finished parts, com-
ponents, or accessories, (exclusive of arms and
armaments, i n s t r u m e n t s and commimication
equipment) especially designed for incorporation
in finished aircraft.")
a. All facilities in plants and establishments
originally designed, constructed, and equipped, or
converted through major change in the nature of
installed machinery and equipment to serve in this
category should be made available for claim.
b. Plants and establishments within this cate-
gory, other than those covered in (a) above, the
use of whose products by the aircraft industry
represents merely a diversion during the war with-
out major change in character of product from
former peacetime civil consumption, or in the na-
ture of installed machinery and equipment, should
not be made available for claim pending Allied
decision as to the final disposition of the industry
with which they are normally associated.
3. Light Metals Industry
(Definitions: "Plants and establishments pri-
marily engaged in the production of alumina, pri-
mary or secondary alinnimnu and magnesium, and
in the rolling, extruding, tlrawing, forging and
casting of aluminum and magnesium and their
alloys.")
a. All facilities identified within this category
should be made available for claim, subject to the
following limitations :
(1) No facilities engaged in remelting light
metal scrap into secondary ingot should be made
available for claim.
(2) In cement plants converted to produce
r.lumina from clays or shales, only the equipment
introduced to effect such conversion should be made
available for claim.
886
DEPARTMENT OF STATE BULLETIN
{3) Sufficient rolling and drawing equipment
should be retained to handle 15,000 metric tons per
annum of fabricated aluminum. Such equipment
should be of a general purpose character and can
be obtained from any surplus available in other
branches of the non-ferrous metals industry.
//. Removal of Facilities From Japan or Reparations —
Priority According to Ownership or Control
Among the criteria to be employed in the selec-
tion of individual plants and items of equipment
for removal from -Japan as reparations should be
the principle of reinforcing the occupation ob-
jective of dissolving large industrial and banking
corporations which have exercised control over a
great part of Japanese trade and industry.
The following interests, combinations, and con-
cerns, which assisted in Japanese aggression, and
their subsidiaries and affiliates, should be included
with others which have been or may be designated :
Mitsui ; Mitsubishi : Sumitomo ; Kuhara ; Okura ;
Yasuda; Mori; Rikken; Nissan; Mangyo; and
Nakajima.
///. Criteria for the Adoption of a New Japanese Consti-
tution
1. The criteria for the adoption of a new Con-
stitution should be such as to ensure that the
Constitutit>n, when finally adopted, is, in fact, a
free expression of the will of the Japanese people.
To this end, the following principles should be
observed :
a. Adequate time and ()i)poi,tunity should be
allowed for the full discussion and consideration
of the terms of a new Constitution.
b. Complete legal continuity from the Consti-
tution of 1889 to the new Constitution should be
assured.
c. The new Constitution should be adopted in
such a manner as to demonstrate that it affirma-
tively expresses the free will of the Japanese
people.
U. S. Delegation to PICAO '
Dean Acheson, Acting Secretary of State, an-
nounced on May 17 that the President had ap-
pi-oved the composition of the United States
Delegation to the First Annual Assembly of the
Provisional International Civil Aviation Organi-
' Releasfd to the press May 17.
zation ( PICAO) scheduled to convene at Montreal,
Quebec, Canada, May 21, 1946. This is the first
anmial meeting of the Pi-ovisional Organization
as provided in the Interim Agreement which was
accepted bj' the United States on February 8, 1945.
The Assembly will review the work of the Coun-
cil and Secretariat since the organization was es-
tablished last June and will determine PICAO's
financial arrangements as well as lay preparatory
plans for the permanent International Civil Avia-
tion Organization (ICAO). It will also discuss
matters in the technical, economic, and legal fields
of international civil aviation.
In order that the views of aviation labor and
industry may be made properly available, invita-
tions to participate as advisers to the delegation
have been extended to the following: Air Trans-
port Association, Aircraft Industries Association,
Air Line Pilots Association, American Overseas
Aiiiines, Pan American Airways, Pan American-
Grace Airways, Inc., and Trans World Airline.
Membeis of the U. S. Delegation are :
CliiiiniKiii :
William A. M. Burden. .\.ssistant Secretary of Commerce.
Mce Chdirmnii:
L. Welch Pogue, t'hairmaii, Civil Aeronautics Board.
Uclc/ates:
Harllee Branch, Member, Civil Aeronautics Board.
Gerald B. Brophy, U. S. Representative on the PICAO
Council.
Garri.son Norton. Deputy Director, Office of Transport
and Connnnnications Policy, Department of State.
Alteniiitr Dclei/ntts:
Paul T. David, Assistant Chief, Fiscal Division. U. S.
Bureau of the Budget.
Stok'eley W. Morgan, Chief, Aviation Division, Dfpiirt-
ment of State.
George C. Neal, General Counsel. Civil Aeronautics
Board.
Lieutenant Conmiander Paul A. Smith. Assistant to
Director, USCGS, and U. S. Air Navigation Representa-
tive to PICAO.
Charles I. Stanton, Deputy Administrator, Civil Aero-
nautics Administration.
Coiifiiiltdnts:
John L. Sullivan, Assistant Secretary of the Navy for
Air, Navy Department.
W. Stuart Symington, Assistant Secretary of War for
Air, War Department.
Allmnitc Coiisiiltdiitx:
Cliarles O. Cary, Office of the Assistant Secretary of the
Navy tor Air, Navy Department.
Colonel T. C. Odom. Executive Officer, Office of the Assist-
ant Secretary of War for Air, War Depai'tment,
MAY 26, J 946
887
Adri!<irs:
Russell B. Adams, Direetoi- of Economic Dnreau, Civil
Aeronautics Board.
Lieutenant Colonel Morris R. Dowd, Civil Aviation
Branch, Office .of the Assistant Chief of Air Staff,
Flans. War Department.
Terrell Drinkwater, Vice President, American Overseas
Airlines.
R. E. Elwell, General Counsel, Civil Aeronautics Admin-
istration.
Eleanor H. Finch, Assistant to the Adviser on Air Law,
Aviation Division, DeilSrtment of State.
John J. Gillen, Director of International Postal Service,
Post Office Department.
Glen A. Gilhert, Consultant to the Administrator, Civil
Aeronautics Administration.
Frank K. Hefner, Budget Examiner, Estimates Division,
U. S. Bureau of the Budget.
Robert D. Hoyt, Coordinator of International Regula-
tions, Civil Aeronautics Board.
Captain Howard B. Hutchinson, Naval Air Transport
Service, Office of Chief of Naval Operations, Navy
Department.
A. S. Koch, Assistant Administrator for Field Opera-
tions, Civil Aeronautics Administration.
Stephen Liitchford, Adviser on Air Law, Aviation r>ivi-
sion, Department of State.
Arthur L. Lebel, Chief, Aviation Communications Sec-
tion, Aviation Division, Department of State.
Lieutenant Colonel John A. McCrary, Assistant Liaison
Representative for Air Coordinating Committee, War
Department.
Emory T. Nunneley, Assistant General Conn.sel, Civil
Aeronautics Board.
Lawrence E. Ring, Principal Budget Examiner, Esti-
mates Division, U. S. Bureau of the Budget.
Donald W. Nyrop, Official PICAO Repre.sentative for
Air Transport Association.
Captain Frank o'Beirue, Chief, Civil Air Agencies Sec-
tion, ( ifflce of Deputy Chief of Naval Operations (Air) ,
Navy Department.
Lieutenant Colonel A. S. Raudabaugh, Civil Aviation
Branch, Office of Assistant Chief of Air Staff, Plans,
War Department.
John T. Shannon, Vice President, Pan American-Grace
Airways Inc.
John Sherman, PICAO Coordinator for Air Transport
Matters, Civil Aeronautics Board.
James H. Smith, Assistant Vice President, I'an Amer-
ican Airways.
Constantin de Stackelberg, Assistant to Chairman of
Board, Trans World Airline.
A. E. Stockburger, Assistant Administrator for Busi-
ness Management, Civil Aeronautics Administration.
Colonel Carl Swyter, Office of Air Communications Offi-
cer, Headquarters, Arm.v Air Forces.
Colonel Lawrence M. Thomas, Air Transport Connu.ind,
Army Air Forces.
Stuart G. Tipton. General Counsel, Air Transport
Association.
Richard K. Waldo, Special Assistant on I'ICAO Matters,
Aviation Division, Department of State.
Lieutenant Colonel Earl B. Yoiuig, Executive Officer,
Office of Assistant Chief of Staff, Plans, Headquarters,
Air Transport Command.
Press Ofpcer:
Joseph W. Reap, Assistant to the Special Assistant to
the Secretary of State on Press Relations, Department
of State.
Assistant to the Press Offieer:
Virginia Hudson
TeclniictiJ l^ecretarij:
Alfred Hand, Director, Plans and Performance Staff,
Civil Aeronautics Administration.
Seeretaries :
William L. Breese, Division of International Confer-
ences, Department of State.
Lawrence W. Taylor, American Consul, Montreal,
Canada.
Assistfiiit to Cluiiriiian:
Mrs. Giulietta Metcalfe, Air Transport Economist,
Office of Assistant Secretary of Commerce, Depart-
ment of Commerce.
Admiiiistnitire Assistant:
Miss Dorothy King, Division of International Confer-
ences, Department of State.
Stenographers:
Alice Blucher, Aviation Division, Department of State.
Mrs. Jewell Carraway, Civil Aeronautics Board.
Mary E. Hoult, Office of Representative to PICAO.
Yolanda Kiraly, Civil Aeronautics Administration.
Olga Shopa, Office of Representative to PICAO.
Mrs. Alice S.tahl, Coast and Geodetic Survey.
The Fifth Meeting of the International Cotton
Advisory Committee.
T\venty-seven of the United Nations govern-
ments having substantial interests in cotton, as
exporters or importers, were represented at the
fifth meeting of the International Cotton Advisory
Committee in Washington, D. C, from May 7 to 14.
A more formal and permanent organization for
the International Cotton Advisory Committee,
witli a secretariat in Washington, was provided for
in the final act of that meeting.
The Committee's final resolution also found
"that although the world cotton situation is cur-
rently undergoing improvement, a substantial sur-
plus of cotton still exists," that the situation should
be kept under review, and that "the .study of pro-
posals for international collaboration in respect to
the world cotton surplus should be pursued and
that a medium should be provided for the consid-
eration of current international cotton problems."'
An executive committee consisting of represent-
atives of six importing and six exporting countries
888
DEPARTMENT OF STATE BULLETIN
was created to serve until the next meeting of the
ICAC. L. A. Wheeler, Director of the Office of
Foreign Agricultural Eelations. U. S. Department
of Agriculture, who continues as chairman of
ICAC, was requested to convene the executive
committee.
The executive committee, upon acceptance of
the resolution by at least 12 member governments,
is to set up a secretariat, draw up a budget not
exceeding $50,000 for the fiscal year beginning July
1, 1946, propose a budget for the following year
and reconnnend a basis for contributions by mem-
ber governments in future years, and fix the date
and place of the next meeting of the ICAC. Each
member government was requested to make an
initial contribution of $2,500.
Governments whose representatives compose the
executive committee are Argentina, Belgiiun,
Brazil, Canada, China, Czechoslovakia. Egypt,
France, India, Peru, the United Kingdom, and
the United States.
A subcojnmittee headed by S. K. Kirpalani of
India reviewed and reported upon the world
cotton situation, calling attention to the need for
"complete and accurate information on the world
cotton situation [as] a prime requisite for the
solution of cotton problems through cooperation
on an international scale.'' Such information, it
was stated, "must be timel3^ It should be in terms
of comparable quality measurements and it should
be exjjressed in the same terms as to quantity or be
in such terms as can readily be converted on a uni-
form basis.''
A subcommittee headed by C. D. Walker of the
United States reported favorably upon ''continua-
tion of work on international arrangements for
dealing with world cotton problems." The chair-
man said the subcommittee felt that "particular at-
tention might be given in any continuing study
to the following:
"Consumption of raw cotton and measures for
increasing it ; criteria for determining when a bur-
densome surplus exists; criteria for estimating
efficiency of production and methods for the ad-
justment of production; claims of producers of
special staples to be outside any scheme of quotas;
basis for establishing quota shares including con-
sideration of seasonal and shipping factoi's; buffer
stock ojierations; freedom of markets in presence
of a quota scheme; development of, and competi-
tion from, substitute fibers."
The subcommittee headed by R. D. Fennelly of
tJie United Kingdom reported upon the form of
organization which the ICAC accepted and agreed
to reconnnend to member governments.
Governments represented at the fifth meeting
were: Argentina, Australia, Belgium, Bolivia,
Brazil, Canada, Chile, China, Colombia, Cuba,
Czechoslovakia, Egypt, France, Greece, India,
Iran, Mexico, the Netherlands, Nicaragua, Para-
guay, Peru, Turkey, the Union of Soviet Socialist
Republics, the United Kingdom, the United States,
Venezuela, and Yugoslavia.
Opening and closing sessions of the committee's
meeting were held in the State Depai'tment, other
sessions in the Department of Agriculture. The
delegates at the opening session were welcomed
by Mr. Wheeler on behalf of the Government of the
United States. At the session's close, on a motion
by Cuba's delegation, the committee expressed
thanks for the facilities made available and serv-
ices rendered by the United States and by the
committee officials and chairmen of the subcom-
mittees.
Final Resolution of the Fifth Meeting of the
International Cotton Advisory Committee
Whereas :
It has been fovnid that although the world cot-
ton situation is currently undergoing improve-
ment, a substantial surplus of cotton still exists,
and,
Whereas :
There are found to be present conditions which
make it desirable that the world cotton situation be
kept under continuous review, and,
Whereas :
It is believed that the study of proposals for
international collaboration in respect to the world
cotton surplus should be pursued and that a medi-
um should be provided for the consideration of
current international cotton problems.
It is resolved:
1. That an Executive Committee con.sisting of
representatives of 12 member governments divided
equally between cotton exporting and importing
countries be established; and that 8 members of
the Executive Committee shall constitute a
quorum.
MAY 26, 1946
889
2. That the niemhers of the Executive Com-
mittee who shall serve until the next meeting of the
International Cotton Advisory Committee shall
be lepresentatives designated by the Govern-
ments of
Argentina
Belgiiun
Brazil
Canada
Cliina
Czechoslovakia
Egypt
France
India
Peru
United Kingdom
United States of America
and that these Governments be requested to com-
numicate in writing to the Chairman of the In-
ternational Cotton Advisory Committee through
appropriate diplomatic channels the names of
their representatives on the Executive Committee.
3. That the Executive Committee be authorized
to fill vacancies in its own membership, having in
mind the principle that the governments of export-
ing and importing countries should be equally
represented.
4. That the Chairman of the International Cot-
ton Advisory Committee be requested to convene
the Executive Committee in its first meeting.
5. That upon the approval of this Resolution
by not less than 12 member governments of the
International Cotton Advisory Committee, the
powers and duties of the Executive Committee
shall l)e:
a. To establish practical cooperation with
the Food and Agi-iculture Organization
of the United Nations and with other
international organizations concerned
with the world cotton situation;
h. To provide a medium for exchange of
views in regard to current developments
in the international cotton situation ;
e. To develop further the work on an in-
strument of international collaboration
to deal with the world cotton situation;
(/. To create and maintain at Washington
a secretariat for the purpose of supply-
ing complete, authentic, and timely
statistics on world cotton production,
trade, consumption, stocks, and prices;
e. To employ sucii staff as it may deem
necessary for the purpose, having in
mind the desirability of drawing quali-
fied personnel as broadly as possible
from participating countries;
/. To determine the number, nature, and
distribution of reports to be issued;
ff. To receive contributions of funds from
member governments of the Interna-
tional Cotton Advisory Committee; to
draw up a budget for the fiscal year
beginning July 1, 1946, not to exceed
fifty thousand ($50,000.00) dollars;
and to arrange for and supervise the
expenditure of such funds ;
/*. To propose a budget for the next fol-
lowing fiscal year and to recommend a
basis for contributions by member gov-
ernments in future years;
/. To determine and fix the date and place
of the next meeting of the International
Cotton Advisory Committee; prepare
the draft agenda ; and make recommen-
dations as to the composition of future
Executive Committees.
6. That each member government of the Inter-
national Cotton Advisory Committee be requested
to make an initial contribution to the Executive
Committee of two thousand five hundred ($2,-
500.00) dollars in United States funds; that the
ultimate basis for the assessment of contributions
be decided upon by the International Cotton Ad-
visory Committee at its next meeting following the
establishment of the secretariat; and that adjust-
ments be made to take account of the initial pay-
ment of $2,500.00 by any member government.
7. That each member government of the Inter-
national Cotton Advisory Committee be requested
to cooperate fully with the Executive Committee
and the secretariat in developing and supplying
such national statistics as may be essential to the
work of developing and supplying complete, au-
thentic, and timely cotton statistics on a world
basis.
8. That the official and working languages of
the International Cotton Advisory Committee be
the same as those adopted by the United Nations.
6931 3(i — 4li-
890
DEPARTMENT OF STATE BULLETIN
Charter of the International Military Tribunal for the Far East
CHANGES MADE IN TEXT
General Orders No. 1, General Headquarters,
Supreme Commander for the Allied Powers, 19
January 1946, subject as below, is superseded.
The Charter of the International Military Tri-
bunal for the Far East established by Proclama-
tion of the Suj^reme Commander for the Allied
Powers, 19 January 1946, is amended, and as
amended, reads as follows :
[Tlie following changes should be made in the text
of the Charter as printed in the Bulletin of March
10, 1946, pp. 361-t.]
Section I
CONSTITUTION OF TRIBUNAL
Article 2. Members. The Tribunal shall con-
sist of not less than six members nor more than
eleven members, appointed by the Supreme Com-
mander for the Allied Powers from the names
sul)mitted by the Signatories to the Instrument of
Surrender, India, and the Commonwealth of the
Philippines.
Article k- Convening and Quorum, Voting
and Absence.
a. Convening and Quorum. When as many as
six members of the Tribunal are present, they may
convene the Tribunal in formal session. The
presence of a majority of all members shall be
necessary to constitute a quorum.
c. Absence. If a member at any time is absent
and afterwards is able to be present, he shall take
part in all subsequent proceedings; unless he de-
clares in open court that he is disqualified by rea-
son of insufficient familiarity with the proceedings
which took place in his absence.
From General Headquarters, Supreme Commander for
the Allied Powers, APO .^00, 26 -April 1946, General
Orders No. 20.
Section III
FAIR TRIAL FOR ACCUSED
Article 9. Procediire for Fair Trial. In order to
insure fair tiial for the accused the following pro-
cedure shall be followed:
a. Indictment. The indictment shall consist of
a plain, concise, and adequate statement of each
offense charged. Each accused shall be furnished,
in adequate time for defense, a copy of the indict-
ment, including any amendment, and of this
Charter, in a language understood by the accused.
b. Language. The trial and related proceedings
shall be conducted in English and in the language
of the accused. Translations of documents and
other papers shall be provided as needed and
requested.
c. Counsel for Accused. Each accused shall
have the right to be rej^resented by counsel of his
own selection, subject to the disapproval of such
counsel at any time by the Tribunal. The accused
shall file with the General Secretary of the Tri-
l)unal the name of his counsel. If an accused is
not represented by counsel and in open court re-
quests the appointment of counsel, the Tribunal
shall designate counsel for him. In the absence of
such request the Tribunal may appoint counsel for
an accused if in its judgment such aiDpointment is
necessary to provide for a fair trial.
d. Evidence for Defense. An accused shall have
the right, through himself or through his counsel
(but not through both), to conduct his defense, in-
cluding the right to examine any witness, subject
to such reasonable restrictions as the Tribunal may
determine.
e. Production of Evidence for the Defense. An
accused may apjDly in writing to the Tribunal for
the production of witnesses or of doctiments. The
application shall state where the witness or docu-
ment is thought to be located. It shall also state
the facts proposed to be proved by the witness of
the document and the relevancy of such facts to
the defense. If the Tribunal grants the applica-
tion the Tribunal shall be given such aid in ob-
taining i^roduction of the evidence as the
circumstances require.
Article 10. Applications and Motions before
7' rial. All motions, applications, or other requests
addressed to the Tribunal j^rior to the commence-
ment of trial shall be made in writing and filed
(Coutimicil on i>tiiic i>0~i )
The Record of the Week
Recommendations for the Council of Foreign Ministers
STATEIMENT BY THE SECRETARY OF STATE '
[Released to the press May 15]
The Council should frankly face the facts -which
it confronts. There are several minor treaty prob-
lems whicli require further study by our deputies
or by special commissions which have them under
inquiry. There is every prospect of agreement
when these studies are concluded. But decisions
nuist invait this event. There are also a few major
treaty iiroblems upon which the Council is pres-
ently divided. Decisions must await further clari-
fication and mutual studj- in a spirit of good will.
In some instances, these decisions may be favorably
affected by the I'eports which we await from our
deputies. Our whole pui'pose is to seek and to find
agreement as quickly as possible.
Under these circumstances, it is likelj- to facili-
tate our work if the present session of the Council
recesses until June 15, permitting each of us to
give undivided attention to reexamination of our
positions in the liope of finding means of recon-
ciling them. Such use of our time is calculated
to be more fruitful than to extend our present
session.
The American Delegation has made it clear that
it believes we owe our Allied nations an obligation
to fix at this time the date of a peace conference.
At Moscow, we agreed it should be held not later
than May 1. We did not comply with that prom-
ise. Tlie United States now urges the peace con-
ference be called either July 1 or July 15, and that
we should then submit our agreements and our
disagreements, if any, to the advice of our war
partners. The Soviet rej^resentative has declined
so far to agree to this course. Invitations to the
Conference cannot be sent except bj' unanimous
agreement. Therefore, the American delegation
believes the time has come to recess the Council
until June 15, and, if we cannot agree on the date
of the peace conference now, to conmiit to that
session the responsibility for calling a peace
conference.
Because we cannot hope for the ratification of
a peace treaty with Italy for some months, we
should immediately sign the revised armistice with
Italy which was agi-eed in principle ten day ago,
so as to release her recuperative efforts as far as
possible.
We would urgently recommend also that Austria
be put upon the June 15 agenda and our deputies
instructed to prepare a draft treaty for considera-
tion of the Council on June 15, so that it may be
submitted to the peace conference along with the
other treaties.
If we can agree to the above and if we also con-
template the wide area of agreement we have
already reached, we may look to the future with
confidence that our indispensable unity will be
strengthened and preserved.
Therefore, the United States Delegation
recommends :
Fi/'tit. That, after considering the German ques-
tion, this session recess until June 15 ;
Secoml. That we now call a peace conference
for July 1 or July 15. If this is not agreed to, that
we leave to tlie next session of the Council the deci-
sion as to the date of the peace conference ;
Third. That we immediatel}' sign the revised
armistice with Italy ;
Fourth. That there be placed on the agenda for
the June 15 session the drafting of a treaty with
Austria, the deputies being instructed to prepare
in the meantime draft proposals for the considera-
tion of tiie Council.
' Made on May 14, 1946 at Paris, France.
891
892
DEPARTMENT OF STATE BULLETIN
Principles of Trade for
Peace and Prosperity
Statement by the
SECRETARY OF STATE'
[Kf'leased to the press May 18]
The interest of the Government of the United
States in foreign trade is twofold.
First, tlie Government is interested in whatever
promotes tlie peace of the world. Second, it is
interested in whatever promotes tlie prosperity of
the United States.
It is quite obvious that trade between nations
may promote either peace and prosperity or their
oi^posites. Tlie kind of trade conducted by Nazi
(xermany before the war promoted nothing but the
power of the Nazis to make war.
Trade will certainly go on. Whether it pro-
motes peace and prosperity or the reverse will de-
pend on the way in wliich it is conducted.
The responsibilitj' of the United States Gov-
ernment is not to conduct trading operations —
which under our system is the business of private
enterprise — but to establish those rules and prin-
ciples under which trade will most clearly promote
peace and jirosperity.
The rules which govern traders are necessarily
made by governments. Since all foreign trade in-
volves at least two countries, the laws of both are
necessarily involved. It is important, therefore,
that tlie action of governments affecting foreign
trade should be consistent. That means that they
should be based upon agreement.
After the other war this was not understood.
The United States acted independently in the reg-
idation of its foreign trade and so did other coun-
tries. The results were neither prosperity nor
peace.
Th.e world now has a second chance to take a
wiser road. It is essential that we reach agree-
ment on sound principles while conditions are still
fluid.
It is for this reason that the United States pub-
lished last December the American Proposals for
Expansion of World Trade and Employments and
obtained the concurrence of the British Govern-
ment in their main heads.
' Made on May 19 in connection with the observance of
Xntional Foreign Trade Week, May l{>-25, 1946.
" Deiiartnieiit of State ijublu'atioii 2411.
It is for this reason also that the Economic and
Social Council of the United Nations has decided
to call an International Conference on Trade and
Employment, and has appointed a preparatory
committee to lay the groundwork for it. When
the ju'eparatoiy committee meets it will have be-
fore it the American Projiosals and any other sug-
gestions or recommendations made by any other
government.
In the meantime the American Proposals should
be studied by every businessman. They state the
principles to which it seems to us nations should
agree if foreign trade is to contribute to prosperity
and peace. We need to know, before international
negotiations start, whether the principles sug-
gested are supported by the businessmen of the
United States.
The world is at the crossroads. It might move
either forward to an era of better understanding,
increased oj^portunity, and peace, or backwards
to a new dark age.
Tlie voice of the United States will not be un-
important in the decisions that are taken. It is
essential that we speak with wisdom, firmness,
moderation, and internal imity.
Admiral Leahy Consults with
British Chiefs of Staff
Fleet Admiral William D. Leahy, Chief of Staff,
left for England on May !."> to consult with mem-
bers of the Bi'itish Chiefs of Staff in regard to
expediting details of complete withdrawal of
American troops from areas in the Pacific which
are now under British Command and repatriation
of Japanese in those areas.
President-Elect of Colombia
To Visit United States
[Releasetl to the press May 161
The President-elect of Colombia, Mariano Os-
pina Perez, has been invited to visit Washington
to be the guest of the Government at Blair House
during his forthcoming trip to the United States.
The President-elect is expected in Washington on
June 5. During his visit he will be received by
the President and other high officials of the
Government.
MAY 26, 1946
893
American Strength: Our Share in Workl Peace
BY ACTING SECRETARY ACHESON
THE Organizatk)X for Rehabilitation through
Training approaches its task of helping human
beings in the world with deep understanding and
the conviction that survival is not enough.
Of course that is the right way to approach
the task. Mere survival does not comprehend the
capacities or the aspirations of mankind. Mere
survival is existence at the animal level, and that
is not man's purpose on earth.
The standards by wiiich we act must certainly
be sufficient to measure the broader gage of our
talents and our hopes.
My father once told me of a visit he had made
as a minister of the Gospel to an old man in the
connnunity who was very ill. My father asked
if there was anything the dying man wished to
tell him, and he received the surprising reply that
there was nothing to tell. The answer was so un-
usual that my father said he had never met any-
one before who had led a blameless life and that
he was very glad to have met one at last. The
old man insisted that it was true that his life had
been blameless and added, "Why, I've never spent
a night in jail."
The proper standard to apply in judging the
results of a lifetime is variable as the story indi-
cates. But we can choose one of many standards
in whatever field we operate. Certainly this is true
in the conduct of foreign affairs.
I know that survival is not enougli ; we all want
to use a much higher standard in determining our
foreign policy. However, we are sometimes com-
pelled by events to measure our achievements b^'
the yardstick of an unpleasant reality. I am
afraid that the events of the last decade and the
prospects of the years just ahead present us witli
a situation so disturbing that we must use our ut-
most strength to be sure that tens of millions of
people will survive at all.
Dui'ing the years before the war people in some
parts of the world planned and schemed for con-
quest and people elsewhere lived in fear. These
threats and fears conununicated themselves to all
of our activities. Nations built concrete defenses
and great armies and navies, and they constructed
trade barriers and tried to hide behind them.
Governments sought special advantages for their
businessmen and their products and made seo'et
and discriminatory deals to gain advantage at the
expense of their neighbors. Country after coun-
tiy turned to all of the devices of economic war-
fare in an effort to pre^Dare for the coming armed
conflict. Germany and Japan converted their
economies to war production, and other nations
out of fear followed suit. The result of all of
these things was the lowering of living standards
and the deterioration of the health standards of
millions of people.
And then the war came, and for five years the
enemy systematically plundered and starved enor-
mous ai'eas of the world. People everywhere lived
on less and worked harder than ever before. Mil-
lions died, and millions more suffeied and starved.
When peace finally came, exhaustion, malnutri-
tion, illness, and confusion gripped the people of
Europe and Asia and left them weakened and ill-
equipped for the task of rebuilding their countries
and again carrying on their usual pursuits. Then
came the crushing blow of drought in Europe,
Africa, and Asia.
The structure of the New Order and Co-Pros-
])ei'ity Sphere crumbled away, but no new struc-
ture arose as if by magic to take its place. Only
now are the beginnings of a new life emerging
from the chaos; only now are governments and
economies beginning again to function and to
produce.
We had hoped, and I think expected, that with
the end of the war things would change ra]iidly.
that shipments of food would move to the hun-
gry, that raw materials would be found to I'egen-
erate industrial production and that men, freed
from the necessities of war, would turn their atten-
tion to peace with vigor and alacj'ity. What we
liad not counted on while the war lasted was that
droughts would destroy the promise of new liar-
An address delivered before the Women's American Or-
ganization for Reliahilitation througli Training on May 13
in New York, N. Y., and released to the press on tlie same
date.
894
vests from the Mediterranean to the rice-produc-
ing areas of Asia. What we had not counted on
was that farmers and workmen debilitated by
years of stringency and coercion could not resume
immediately their full activities, and that a little
time would be x-equired before they could reap the
rich crops and produce the goods for which the
woild waited.
Only a few days ago the Director General of
the Food and Agriculture Organization of the
United Nations published a preliminary appraisal
of the world food situation. In that appraisal
it is stated that the critical world food shortage
which we now face will continue at least until the
crops are harvested in 1947.
Not until the fall of 1947 is there any hope that
world food supplies will come into balance with
the urgent needs. The famine emergency will not
pass this summer; it will not even pass next sum-
mer. World food stocl<s have been seriously de-
pleted in order to meet the current crisis. Even
though some croji improvement is in prospect if
we can assume average weather conditions, any
wide-spread droughts in the months ahead may
be more disastrous than those experienced during
the last year. But even if this year's crops and
next year's crops come up to expectations, and a
point is reached at which the supply of cereals is
sufficient to avert starvation on a large scale, the
report states, our difficulties will not end. We
shall still be faced with a serious shortage of ani-
mal products because of decrease in cattle, and
it will be several years more before we shall be
able to attain a level of world food supply even
equal to the tmsathfaetovy levels of the years im-
mediately preceding the war. At that time we
may be able to restore health and working effi-
ciency, but it will be far from the abundance for
which a hungry world yearns.
Much of the world went on lean rations late in
the 30's while the Nazis and the Fascists drove
towerd wax*. For more than five years the fighting
ran like a prairie fire fronx area to area leaving
waste and starvation iix its path. And xxow we
face five years of famine. These are the dry and
barrexx statistics of catastrophe. The effects of
proloixged hxmger in coxmtries which sxxffer fronx
conditions left unstable by the course of war, aixd
the inxpact of a continxiing food crisis on a world
ecoixomic system still shuddering froixx assaults
upoix it, ax-e frightening to contemplate.
No, sux'vival is not eixough; but today the ques-
tioix tliat is overwhelming in its inxplications is
un^r/mi mt,n 1 ur si/iic^ dul,l,cj.iii
whether mankind can survive, whether civilization ^
can survive. Paralyzing years of axx uxxsteady
peace, yeax's of war and years of famine : these are \
the conditions with which we nxust deal, conditions
under which the Four Horsemen of the Apocalypse
x-ide across the areas of destruction and put the
very existeixce of life in danger.
The compulsions of ixxere survival shape and
guide ixxuch of our foreigix policy today. These
compulsions are so sti'ong that nearly eVex-ything
we do is directed to the preservation of life and
to the preservatioxi of society. In Italy aixd
Gx'eece and eastern Europe people approach the
verge of starvation. In India and China faixxine
creeps xxpon the heels of our efforts at relief. If
hundreds of millions of men must fight and scratch
for their daily bx-ead, they will cax-e little for the
aspirations of the United Nations, they will con-
tribute little to the plans for a fx-eer and more
secure world.
AVe could ixot do otherwise thaxx devote ourselves
to the task of seeing that ixxen live aixd that our
civilizatioix survives. That must coixie first.
Even before the war ended, the United States
took the lead in the organization of UNRRA. We
wanted to be x-eady to nxeet the requix'ements of
relief aixd rehabilitation iix the areas devastated by
the wax-. For moi-e than a year UNRRA supplies
have gone froixx the contributing countries to those
who are suffering, but these needs have not been
satisfied. They could not be: they are much too
large. The President has established the Famine
Emergency Committee and called upoxx the Ameri-
can i:)eople to conserve every possible ouxxce of food
in an effort to meet the xxeeds and narrow the dif-
ference between survival and extinction. We have
joined the Intex-national Bank for Reconstruction
and Development and ax-e makixig a subscription
of billions of dollars to it in ox-der to aid in the re-
coixstruction and development of the United Na-
tions. We have negotiated an agreement for a
credit to Britain to assist Britain iix the reconver-
sion of her industries and the i-ebuilding of her
economy so that international trade can again be-
gin to spread and expand for the prosperity of
all of the world. We are a member of the Food
and Agriculture Oi-ganization of the United Na-
tions, whose task is to study and report on the food
and agricultui-al problems which clanxor for atten-
tion. The repox-t of the Dii-ector General of this
Organization, which I have already referred to,
will give you some measure of the problems we
shall have to solve.
(Continued on prif/c Ol.'i)
MAY 26, 1946
895
U. K.-U. S. Guiding Principles for Solving World Food Problems
[Released to the press May 17]
British and American officials announced
jointly on May 1" tliat they had reached agree-
ment on guidin<r principles which their two Gov-
ernments should adojDt in their common effort to
solve the many immediate and longer range prob-
lems arising in connection with the world food
crisis.
The announcement was made on the departure
of Herbert ^Morrison, M.P., Lord President of the
Council, who had flown from London early this
week to discuss the wheat crisis with President
Truman and other high oiBcials of the United
States Government including Clinton Anderson,
Secretary of Agi-iculture, and William Clayton,
Assistant Secretary of State for Economic Affairs.
L. B. Pearson. Canadian Ambassador in Washing-
ton, and other Canadian officials were also present
at the conference. Herbert Morrison is now pro-
ceeding to Ottawa where he will discuss with the
Canadian Government the matters discussed in
Washington and other food problems.
The object of Mr. Morrison's visit to Washing-
ton was to review the efforts which the two Gov-
ernments of the United Kingdom and the United
States have been making to combat world famine,
to agree on general lines of future policy, and
to solve certain -immediate problems of common
concern.
The two Governments are agreed that even more
energetic measures are needed throughout the
world to secure effective and complete removal of
all threat of world famine and that their plans in
this respect must be based on the assumption that
this threat will continue at least through the sum-
mer harvest of 1947. The two Governments are
further agreed to consult together in the future,
as in the past, on the initiation or removal of any
measures of major importance undertaken by
them as a contribution to the world effort to
prevent famine.
The two Governments have reviewed the re-
quirements and availabilities of bread grains for
the jieriod May-September 1946. The maximum
supplies presently in sight for this period amount
to only 10 million tons. The total stated require-
ments for this period were 13.4 million tons.
There is an indicated deficiency, therefore, of 3.4
million tons, or about 25 percent.
This deficiency makes it ijievitable that severe
cuts should be made in requirements previously
stated. Eecommendations to this end will be sub-
mitted to the Combined Food Board by the two
Governments. Even after severe cuts there would
be a gap of something under 1 million tons be-
tween such requirements and available supplies.
It will have to be recognized that the cuts proposed
in the recommendations must inevitably cause
hardship, and a risk of famine remains. This risk
can be reduced in so far as other sources of supply
can be found in addition to those at present in
sight and the two Governments are resolved to
do everything in their power to secure these
additional supplies.
The United Kingdom representatives have re-
ported fully on the measures of consumer rationing
and other economies currently in effect in the
United Kingdom, which may be briefly summar-
ized as follows :
Consumer rationing has been continued, and in
the case of fats, bacon, dried eggs, meat and pre-
serves, rations have been reduced below the austere
low wartime levels. Kations of the British forces
in the United Kingdom have twice been cut since
V-E Day.
Since the beginning of 194G, the following mea-
sures have been introduced :
(a) Increase in the extraction rate of flour:
(i) from 80 percent to 821/2 percent on
February 24.
(ii) from 82i/^ percent to 85 percent on
March 10.
(iii) from 85 percent to 90 percent during
the most critical period May-September.
(b) Reduction in supplies of grain for spirit
distilling from 300,000 tons to 130,000 tons.
(c) Reduction in the size of the standard loaf
from 2 lb. to 1% lb.
896
DEPARTMENT OF STATE BULLETIN
(d) Reduction of 2.") ])eiTent in production of
biscuits and similar products.
{e) Reduction of production of cake and flour
coiifectionery by reduction of 25 percent in allo-
cations of sugar and fats for this purpose.
(/) Reduction of beer production to 00 percent
of pre-war production in terms of standard barrels.
(</) Inauguration of a caui])aigu to secure a re-
duction in wastage of food.
In order to increase the outiuit of bread grains,
the United Kingdom has continued its wartime
policy of laud utilization, croj) production and
disposal with the effect of encouraging cereal pro-
duction at the expense of livestock. The feeding
of millable wheat to livestock continues to Ije pro-
hibited.
The following measui'es liave been introduced
since the beginning of 194G :
(i) Payment of a. grant of t'2 ($S) per acre in
respect of the ploughing up for tlie 1946 harvest
of grassland which has been down for three years
or longer.
(ii) Increase of one shilling ninepence (0.35if)
per cwt. in price of wheat from the 1947 harvest.
(///) Reintroduction of directions to grow wheat
for 1947 harvest in order to secure a minimum tar-
get of '2.5 million acres. This means return to the
position prevailing up to and including the 1945
harvest. Directions to grow potatoes and sugar
beets have been maintained thi-oughout.
{iv) Reduction in rations for pigs and poultry
as from May 1 from the basis of one quarter of
pre-war numbers to one sixth of pre-war numbers
and to one twelfth as from July 1. ( It had been
originally intended to increase the rations as from
May 1 to the basis of one third of pre-war num-
bers) .
As a part of the measures necessary to reduce
the deficit in world supplies, the United Kingdom
has agreed to reduce its stated requirements, al-
ready screened to the minimum necessary to main-
tain its lowered consumption level, by another 200,-
000 tons. This may involve : either a reduction in
l)ipe-line stocks to a point at Miiich distribution
may be interrupted, with consequent disruption of
the industrial economy, or still further restrictions
on the austere diet maintained in the United King-
dom for the six years since the beginning of the
Mar.
The United States representatives reported on
the measures taken in the United States to achieve
greater production and to switch agricultiu-e and
available supplies away from the wartime empha-
sis on livestock products and over to a maximum
i:)roduction of bread grains directed to human con-
sumption. Among other measures the United
States has takeu the following steps to attain maxi-
nuun exports of grain :
1. Substantial increases in the ceiling prices of
grain for export, to replace earlier export pre-
miums of 30 cents per bushel on Avheat and corn.
2. Increase of the extraction rate of flour to
80 percent.
.'). Limitation on millers' inventories, including
grain purchased and in transit, to a 21-day supply.
Actual inventories are in many cases even less,
averaging two weeks' supply, with some of the big
mills already shut down.
4. Prohibition of the use of wheat and wheat
ju'oducts for alcoholic beverages and severe cur-
tailment of such use of other grains, including limi-
tation to 24 hours' run per month in the manufac-
ture of alcohol and a cut in beer production to
70 percent of the 1945 level.
5. Restriction on the purchase of grain and grain
products by livestock feeders to amounts designed
to limit the Meiglit of hogs and cattle and the
numbers of poultry.
6. Limitation of the use of grain by mixed-feed
manufacturers to 80 percent of the 1945 use.
7. A similar 80 percent limitation on the use
of coru or sorghum gi-ain in syrups, etc.
The United States production problem differs
from the British in that it requires an extensive
change from agricultural policy- established to
meet wartime demand, instead of a further de-
velopment along wartime lines as in the case of
Great Britain. The measures recently adopted for
diverting grains into human consumption and for
cutting down consumption by livestock are oidy
now beginning to have their full effect.
The two governments reaffirm their belief that
connnon measures should be takeu in all zones
of Germany with respect to the collection of in-
digenous foodstuffs, the setting of common ration
standards and the adoption of a common basis for
calculating import requirements. Since the tim-
ing of these measures must be left to agreement
in the fiehl, the British and American Zone com-
manders will be inunediately requested to set in
nuition the necessarv consultations to achieve
MAY 26, 1946
897
these objectives in their respective zones and the
French Zone (these being the areas for which the
Combined Food Board makes allocations). It
was also deemed desirable that the ration scale in
the British and Fi'ench Zones of Germany should
be adjusted upwards to the level prevailing in the
United States Zone at the earliest feasible date
and to this end full and intensified efforts should
be continued in each Zone to achieve maximum
utilization of food resources. It is also agreed
that special emphasis should be placed on miners'
rations in order to secure a maximum output of
coal.
The United States Govermuent lias reviewed
the Japanese import program in order to insure
that except to the extent that the Supreme Com-
mander of the Allied Powers determines that im-
ports are essential immediately for the safety of
the occupation forces, no imports shall be per-
mitted which will have the effect of giving to the
Japanese a priority or preferential treatment
over the requirements of the people of any Allied
pf)wer or liberated area. The conclusion has been
reached in the discussions that the low level of
feeding contemplated by the current program may
not suffice, even if fully met, to provide the mini-
mimi essential for the safety of the occupation
forces.
Famine Report to the President
REPORT OF THE HOOVER MISSION
[Ueleasfd to the piess by the Depaitment of AgricuUure May 14) ^^joj^ ^f bread CaU be assured, and as mucll fatS and
Mai/ 13, 19Jf6 children's food as possible, mass starvation can
Dear Mr. President : Ije prevented.
We have completed vour instructions to survey At the time of our departure, the Combined Food
the principal nations affected by food shortages Board's estimate of the available cereal supplies
which have resulted, or mav result, in widespread fi-om surplus countries showed a deficit as com-
f amine; to evaluate the minimum needs of these Pfn"'^'^ ^^itli stated requirements of 11,000,000 tons,
areas until the next harvest ; and to discover such ^^ 43 per cent.
additional food resources as possible. In accord- Requirements - We attach hereto (Table I) a
ance with vour instructions, we have also presented country-by -country, month -by -month minimum
the American point of view on the food problem program of required cereal imports to the deficit
to these nations and the interest and understanding fn^^ famine areas from May 1st to September 30th.
of our people in their plight. Finallv. we have '^^'^'^^ programs represent a considerable reduc-
constantly advised American officials and the tion from the hitherto stated requirements of the
American public as to the situation as we found it. various nations. The amounts have in most cases
We have traveled some 35,000 miles, visited been agreed upon by their governments. In the
twenty-two countries which have a deficiency of case of China, we regret to say our program is less
food, and informed ourselves of the situation in tl^^'i minimum need but is all, or more, than can
several others. The only country of large reported ^^^ transported inland to the famine areas. The
deficiency we did not visit was the Union of South totals are :
Africa. We visited five self-sufficient or surplus Europe 8, 390, 000 tons
countries and informed ourselves of the situation Latin America 1, 000, 000 tons
in other consequential surplus nations. South Africa and New
The dominant need of the world in this crisis is Zealand 198, 000 tons
cereals, particularly wheat and rice. There is great Middle East 100, 000 tons
need of fats and special food for children, but as Indian Ocean area 2, 886, 000 tons
cei-eals can furnish 8.5 per cent of an emergency Pacific Ocean area 1, 910, 000 tons
diet, we considered cereal requirements were the
first concern, and the best indicator. If a foiinda- Tot.\l 14, 484, 000 tons
895
Of course, every country would be better off if
mure could be furnished.
SuppUe-s - AVe have found some increases in
supplies possible during the crisis through de-
velopment of certain new sources of supply;
through additional loans of cei-eals from early-
crop countries which ma}' not themselves have an-
nual surpluses; through substitution of other
cereals for wheat and rice; and as a result of con-
servation up to this tijne.
Our estimate (Table II) of Probable Supplies
as of May 1st to September 30th are :
From
United States 4,220,000 tons
Canada 2,300.000 tons
Australia 992.000 tons
United Kingdom 200.000 tons
Argentine 2,375,000 tons
Brazil 200, 000 tons
Other Western Hemisphere
States 40.000 tons
Burma 75.000 tons
Slam 195,000 tons
Russia to France 300, 000 tons
Total 10, 897, OOO tons
Therefore the gap in supplies between May 1st
and September 30th can be reduced to about 3.600,-
000 tons, as against an 11,000,000 tons gap in the
earlier appraisals.
In addition to the above supplies there is a
"possible"' about 1,500,000 tons more, as indicated
in Table III.
We are confident that if until the end of August,
there can be further vigorous conservation in sur-
plus countries, mainly wheats and fats, and more
energetic cooperation between nations, the re-
maining deficit can be largely overcome. The
cooperation of Russia and the Latin American
States would greatly aid in meeting the problem.
If mass starvation is to be prevented it will re-
quire constant effort.
It is of interest to note that the quantities which
are provided by UNRRA as charity comprise
about 20 per cent of the world's cei-eal needs,
whereas nations representing 80 percent are being
financed by the importing countries themselves.
But the need in these latter is no less urgent.
You will recognize that these statements aie
estimates. They, however, comprise a reasonable
basis upon which to formulate policies.
DEPARTMENT OF STATE BULLETIN
We wish to express our especial appreciation of
tlie unfailing aid and courtesy of the Secretaries
of Agriculture, State and War, and the American
officials abroad. We are also deeply indebted to
Generals George and Saville of the Air Transport
Command, their efficient crews, and for their pro-
visions for our comfort and safety.
Yours faithfully,
Hkhbert Hoover
I). A. Fitzgerald
Hugh Gibson
AV. Hallam TtiCK
Perrin C. Galpin
Maurice Pate
TABLE I
Cereal Requireivients (Including Rice)
EUROPE
Miuimiini Arrivals Required During Crisis Period
(Loadings at seaboard about 30 days earlier)
Based on not to exceed 300 grams cereals per person per day
Country
Popu-
lation
Mil-
lions
(Thousands of Tons)
May
June
July
Aug.
Sept.
Total
■39.1
12.0
41.5
4.2
1.3.5
23.5
3.8
3.0
47.5
8.0
9.0
18.0
23.3
6.0
7.0
26.0
8.0
1.0
16.0
7.5
350
100
225
350
350
350
350
1,750
100
225
225
30
60
85
25
100
30
60
85
40
30
40O
60
30
50
40
30
400
60
80
60
180
30
30
50
55
775
90
•Czechoslovakia
60
85
60
85
290
340
• Finland
105
60
•United Kingdom
400
60
400
60
400
60
2,000
300
•Holland
80
•Germany:
Am Zone
50
180
30
30
60
30
5
50
55
50
180
45
Data
65
60
30
5
50
55
50
180
45
unkn
55
60
30
5
50
55
65
180
45
>wn
65
60
30
5
50
56
275
900
195
Russ. Zone - --
•Austria
225
240
120
20
260
•Greece
275
Europe Totals
317.9
1,770
1,710
1,765
1,700
1,445
8,390
LATIN AMERICA
Latin-America 200 200 200 200 200 1,000
•Visited by the Mission.
MAY 26, 1946
NEW ZEALAND AND SOUTH AFRICA
899
CouDtry or Province
Popu-
lation
Mil-
lions
(Thousands of Tons)
May
June
July
Aug.
Sept.
Total
Kew Zealand
9
40
9
40
0
30
0
30
18
40
180
40
49
49
30
30
198
NEAR EAST
N'i-;u- East.
INDIAN OCEAN
{Loiidings from Eastern Hemisphere 1 month and Western Hemisphere 2
months earlier)
•India (Provinces af-
fected)-
22.0
7.6
51.4
6.5
1.5
2.9
37.9
57.6
61.3
14
210
IS
8
43
19
24 .
55
25
170
10
7
19
14
85
25
170
10
7
19
20
95
25
170
10
7
19
20
60
106
50
60
50
95
25
170
10
7
19
20
60
106
50
60
60
330
Mysore -
114
890
Tranv
58
Cochin
36
119
Bchar.
I'n. Provinces
93
144
Bengal
Other
60
60
50
50
60
50
90
50
60
50
302
250
Oe.vlon.. .
7.0
3.6
300
Malaya & Straits Set-
250
TOUL
496
460
586
672
672
2,886
PACIFIC OCEAN
•Philippines
14.0
220.0
75.0
14.0
12
120
50
15
197
12
150
250
30
442
12
200
270
45
527
12
200
200
10
422
12
200
100
10
322
60
•China '
870
•.Tapan
870
•Korea 2 . .
110
1,910
2,723
2,881
3,147
3,044
2,689
14, 484
SURPLUS OR SELF-SUFFICIENT COUNTRIES
'Sweden
6.2
3.8
9.1
12.1
6.6
17.3
4.0
14.0
Rumania.
•Egypt.. .
•Siam
Total
73.0
TABLE n
Possible Wokld Cereal Supplies From Surplus
Areas (May 1 to Sept. 30)
Second Quarter Load-
ings (April-May-
June)
Loadings in July and
August
Total
(Thousands of tons)
Wheat
Coarse
grains
Rice
Wheat
Coarse
grains
Rice
U.S. A
Canada
2,200
1, 0.50
700
200
500
500
160
800
50
20
17
60
40
40
75
1,400
400
275
275
100
100
4,220
2,300
992
United Kingdom. _.
Argentine
Brazil
800
50
40
200
2,375
200
Other Western
Hemisphere States
40
35
. 120
105
Russia to France
150
160
300
5,400 1 1,500 252 1 2. ,500
Gkand Total: (Wheat— 7,900; Coarse grains— 2,65C
1.050
; Rict—
195
147)
10, 897
10,897
TABLE III
Further Supplies Possible
Second quarter
loadintis (April-
May-June)
Loading.s in July and
August
(Thousands of tons)
Remarks
-b3
CO
CO a
a 2
O
. 8
O M
O
s
«
Indo-China
60
50
50
225
200
200
115
300
75
200
125
100
200
Surplus Prov-
Punjab and
Sind
100
30
300
75
100
50
inces.
Could be bor-
Egypt
United King-
dom
10
25
rowed.
Could be bor-
rowed.
R e I e"'a s e d
Russia to France
stocks.
200
505
125
60
150
300
226
1,365
140
1, 605
1 utmost capacity of inland transportation.
2 American Zone.
*Visited by the Mission.
900
DEPARTMENT OF STATE BULLETIN
TABLE IV
Provisional Balance Sheet of AVoklii Require-
ments AND Supplies
(Tliousands of tons)
Minimum Cereal Requirements
Eui-oi)e S, 390
Latin-America 1,000
Southern rJritish Empire 198
Middle East 100
Indian Ocean 2,886
Pacific Ocean 1,910
Cereal Suiiplies Probable
April-May-Juue Loadings 7, 202
July-August Loadings 3, 695
14, 484
10,897
TABLE V
Comparison of the Combined Food Board Bal-
ance Sheet or March 1, 1946 (retrospective to
Jan. 1, 19-16) and Hoo\i;r Mission Balance
Sheet as of May 1st, 1946
(Thousands of tons)
Stated
Require-
ments
Esti-
mated
Supplies
Deficit
Defleil
Percent
Combined Food Board
2.5.900
7,000
14,900
7,000
11.000
42.5
Original Balance as at May 1_
As Revised by Hoover Mission:
May l-Sept. 1
18,900
14,484
7,900
10, 900
11,000
3,687
58
24
-4, 000
4-3,000
-7, 413
Deficit Probable 3, 587 tons or 24 percent
Further Possible Cereal Supijlies 1, 505
Thus, the requirements were revised doiomoard bij 4,000,000 tons and the supplies revised upward, through nerc
sources developed, effect of conservation, drafts on earlier crops in some countries, etc., 3,000,000 tons.
The estimated gap as of May 1st, 3,600,000 tons.
Status of American International Broadcasting
[Released to the press May 18]
Assistant Secretary of State William Benton
made public on May 18 statements from five radio
executive.s on the status of American international
broadcasting and the importance uf maintaining
adequate programs in the future. He released also
statements from Charles R. Denny, Acting Chair-
man of the Federal Connnunications Commission,
and Paul Porter, former Chairman of the
Commission.
In releasing the statements Mr. Benton pointed
out that the House of Representatives recently cut
the State Department's requested appropriation
for international-information M'ork from $19,284,-
778 to $10,000,000. He stated that if this cut is
sustained by the Senate the Department will be
compelled to abandon all support for international
short-wave broadcasting, because the large fixed
engineering costs cannot be fitted into the reduced
budget.
Tlie statements were made in response to an
inquiry by Mr. Benton for reactions to this con-
tingency. They have been submitted to the Senate
Appropriations Committee.
The five radio executives, all of whom are officers
of private licensees which have done pioneering
work in the short-wave field and are now broad-
casting under contract with the State Department,
are:
J. D. Shouse, Vice President in Charge of Broad-
casting, The Crosley Corporation, Cincinnati,
Ohio.
Frank Stanton, President, Columbia Broadcast-
ing System, New York, N. Y.
Philip D. Reed, Chairman of the Board, General
Electric Company, New York, N. Y.
Walter Evans, Vice President, Westinghouse
Electric Corporation, Baltimore, Md.
Brig. Gen. David Sarnoff, Chairman of the Board
of the Radio Corporation of America, New
York, N. Y.
"These are the people who have had the most
experience in international short-wave broad-
casting, who have studied it most carefully and
are in the best position to judge its value", Mr.
Benton said in releasing the statements. The
statements follow :
MAY 26, 1946
90i
Letter from the Vice President in Charge of
Broadcasting, The Crosley Corporation
May 6, 19^6.
Dear Mr. Benton :
Long before Pearl Harbor our Company liad
been deejjly and vitally interested in international
shortwave broadcasting;. We have been exceed-
ingly proud of certain pioneer contributions which
we have been able to make in the field of high-
power broadcasting in the international band.
Prior to our entry into the war, as a matter
of private initiative, we operated WIWO, designed
and built by our organization at powers from
seventy-five to one-hundred kilowatts. The oper-
ation and programming of this station was quite
expensive, and involved a loss to us of between
.^Ti^OOO to $100,000 a year.
Shortly before our entry into the war, we ad-
vocated strongly the plan under which the opera-
tion and programming of the shortAvave stations
in the United States were taken over by the Office
of War Information. In the considered belief
that international shortwave broadcasting, during
either times of conflict or during times of inter-
national stress, might best be conducted as an ad-
junct of those agencies of our government charged
with the official delineation of our policies, with
reference to the other nations and peoples of the
world, our Company, I feel, has made one of its
great contributions to the country during the war
years in the design, development and construction
of the tremendous transmitting plant and facili-
ties at Bethany, Ohio.
I am writing this letter to reaffirm our belief
in the continuing importance of international
broadcasting as a matter of national policy. I feel
it extremely difficult to believe that private indus-
try can, at the. present time, assume the terrific
operating loss which would ensue if international
broadcasting were to be turned back to private
industrj'. Every broadcaster faces the likelihood
and the necessity of making, during these next few
3'ears, large capital investments in the fields of
Television and Frequency Modulation.
I feel fearful that regardless of how strongly
some of us may feel about the need for retaining the
position which our country finally developed in
the field of international broadcasting, the finan-
cial burden would be impossible for many of us to
absorb without a great and perhaps tragic diminu-
tion of the effectiveness of j^ortraying to the rest
of the world United States policy and thinking on
matters of international import.
These international stations represent the only
sure and certain means by which this country can
make sure that in the years to come the people of
(jtlier countries can learn directly what the United
States stands for, what our people believe in, and
why our jtosition on any matter of international
misundeistanding or controversy has been taken.
All other means of mass communication are sus-
ceptil)le to either censorship or can be refused
entry at the border of any country. This is true
of cable communication. It would be true of point
to point connnunication. It is certainly true in
the case of newspapers, magazines, pamphlets and
periodicals, as well as in the field of literature
itself.
The United States, from the standpoint of
radio broadcasting as a means of mass communi-
cation, is already at a tremendous disadvantage
geographically. As inefficient and ineffective,
perhaps, as international shortwave broadcasting
is, we still must recognize that because of our geo-
graphical position with reference to both the
Asiatic and European popiUation masses, we suffer
a tremendous handicap. Certainly England, in
her location just off the continental coast, need not
rely on international shortwave frequencies to
propagandize, in the proper sense of the word, the
many nationalistic pojiulation masses in Europe.
Because of her location, she can do a much better
job in the medium and long wave bands, and no
continental government would have very much
chance of preventing her from using mediiun and
long wave transmitters located in England to
further England's interests, both politically and
ideologically on the continent.
The same thing, of course, would apply to any
other continental power. So, too, in the Far East.
Our ability to control, and on long and medium
wave transmitters to reach the big Asiatic popula-
tion masses, is far from being secure. This re-
duces the United States then to the sole and pecu-
liar position of being forced to rely upon direct
international shortwave broadcasting — a poor
saibstitute, admittedly, but nevertheless the only
broadcasting facility completely in our hands and
under our control.
Then, too, in times of stress, agreements which
migiit now be negotiated to provide for rebroad-
902
casting, in any particular country, of programs
beamed point to point from this country might
be arbitrarily withdrawn, in which event, of
course, we would, from a broadcasting standpoint,
be left completely defenseless.
We, therefore, advocate strongly, because of the
factors enumerated above, and as the result of our
close experience with and familiarity with the
field of international transmission, a proper pro-
vision to insure adequate facilities in this field for
the United States.
We wish to assure you, as a result of the fore-
going, that we have no fear, whatever, of our
government using a continuing subsidy of inter-
national shortwave broadcasting as a means of
encroaching upon our American system in the
domestic field. Further, I am sure that from
what I have said my interest and concern with
this problem is apparent. Both during the war
and immediately after the war, I had occasion to
spend some time in England. I have had the op-
portunity of discussing the importance of inter-
national shortwave broadcasting with the repre-
sentatives of a great many other nations, who
have, from time to time, visited Cincinnati to
study our transmission facilities.
Feeling as strongly as I do about this subject, I
wish to assure you of my desire to cooperate with
your department in any possible way that might
be constructive.
Very sincerely,
J. D. Shouse
Letter from the President, ColumMa Broadcasting
System
April 30, 1946.
Deak Mr. Bentox :
The Columbia Broadcasting Sj^stem believes
that democratic shortwave international broad-
casting is important to the United States in its
world relations.
CBS has had a long and continuing interest in
shortwave international radio. Prior to the out-
break of World War II it seemed to us that a defi-
nite and intelligent plan of regular broadcast serv-
ice to foreign countries could play a most impor-
tant part in improving the world position of the
United States. It was with this thought in mind
that Columbia organized La Cadena de la Amer-
icas, the Network of the Americas, and inaugu-
rated at its own expense a multi-lingual prewar
DEPARTMENT OF STATE BULLETIN
program service both to Latin America and to
Europe.
Columbia's work in the international field dur-
ing the war in association with the various services
of the Government has further convinced ns thtit
one of the best ways of enhancing and maintaining
the prestige of the United States among the peoples
of the world is by making available to these peo-
ples day-by-day uncolored, undistorted and truth-
ful information about our own country and our
own people. We believe that shortwave broad-
casting is a most essential instrument for the di-
rect and imcensored dissemination of such infoi-
mation in peace as well as during war.
How this instrument can be used to the best ad-
vantage of our country may well require further
study by our Government, by the broadcasting in-
dustry and others interested in the problem. It
seems to us of paramount importance, however,
that the present scale of operations not be aban-
doned or diminished while a permanent peacetime
plan of operation is being developed. Otherwise
we believe that the favorable position of our coun-
try in the international field may be seriouslj-
jeopardized.
The dangers incident to even a temporary in-
terruption of international shortwave broadcast-
ing are so great that we feel it both proper and
necessary for us to make this recommendation to
you, even though the present plan of operation is
definitely a wartime emergency system and sub-
ject, perhaps, to entirely i^roper criticism on that
ground.
Sincerely yours,
Frank Staxtox
Letter from, the Chairman of the Board, General
Electric Company
May 3, 1946.
Dear Mr. Benton :
You have asked for my view as to the importance
of continuing the Government's foreign broadcast-
ing activities pending full consideration by the
Congress of the State Department's proposed pro-
gram in the field of foreign informational
activities.
As you know, I spent two and a half years dur-
ing the war in the European theater of operations
as Chief of the United States Mission for Eco-
nomic Affairs, in London. In that connection I
had an opportunity to observe at first hand the
MAY 26, 1946
903
work of our governint'ut. both civilian and mili-
tary, in the broadcasting field. I was able also to
comjjare it with corresponding activities of other
governments.
I am convinced that our country must maintain
adequate foreign information broadcast service.
The presentation of a factual, colorful chiy-to-day
I^icture of the American scene is, in my judgment,
an essential part of any program for maintaining
friendly relations abroad. If we do not do so,
we shall fail to derive the benefits of the tremen-
dous advances in international communications to
the development of which American scientists
have made such notable contributions.
I believe that the operation of an international
broadcasting service should be in private rather
than in governmental hands. The immediate
problem appears to be that the private owners of
international broadcast facilities would be unable
to render anything like an adequate foreign broad-
cast service without incurring very large operating
deficits. In other words, program sponsorship by
commercial organizations would not, in their judg-
ment, produce sufficient income to cover more than
a small fraction of the cost. This means that, for
the present at least, if an adequate broadcasting
program is to be maintained the Government will
have to shoulder most of the cost.
In my judgment it would be a great mistake to
discontinue the present foreign broadcasting ac-
tivities pending careful study of the entire problem
and adoption of a permanent plan. I very much
hope that Congress will appropriate sufficient
funds to permit the present service to be continued
on an interim basis which I would hope need not
exceed one year.
Sincerely yours,
Philip D. Reed
Letter from the Vice President, Westinff house
Electric Corporation
May 1, 19Jfi.
Deae Me. Benton :
It has recently come to my attention that the
appropriation requested by the State Department
including an item for shortwave broadcasting
has been reduced to the point where International
broadcasting may have to be eliminated from the
program.
The Westinghouse Company has been operating
shortwave International broadcasting stations
since 1925 and with these years of experience we
are firmly convinced that shortwave is one of the
most effective ways to reach the people of other
nations. It would seem to us to be a great mistake
for the Government to abandon at this time the
use of shortwave facilities which is one of the very-
few ways that wide coverage can be attained for
the story which our nation has to tell during
these troubled days.
Opinions differ as to the manner in which these
stations should be o^jerated. Whether or not they
are maintained by private enterprise, by Gov-
ernment subsidy, by a holding company or by a
department or bureau of the Government, we feel
that nevertheless the use of shortwave to reach
the people of other nations should be preserved.
Sincerely yours,
Walter Evans
Excerpts from a Memorandum to the Secretary
of State in January 19Jf3 hy Brig. Gen. David
Sarnoff, President of the Radio Corporation of
America. General Satmoff reports that this
memorandum still represents his views.
If it is good reasoning to conceive that in the
postwar world our interests will require no less an
effort than the present one, and quite probably an
even greater one, we shall need at the start not less
than $15,000,000 or $20,000,000 a year for inter-
national radio activities, as well as unification of
purpose and policy. Where can the money come
from, and who will unify our purpose and policy?
1. Private industry cannot be expected to sup-
ply the necessary service on an adequate basis,
because it can supply services only from income
derived therefrom. No such income is foreseeable
if the total income of United States concerns from
all international broadcasting was $200,000.
2. Moreover, there are many questions of na-
tional and international policy to be considered in
financing international broadcasting on a basis of
commercial advertising. Some nations do not per-
mit commercial advertising on the radio in their
own territory. They are, therefore, likely to re-
sent the "importation" of such advertising when
they deny that right to their own nationals at
home.
3. Those seeking to extend their international
export markets are expected to take local advertis-
ing in the local press and on the local radio : hence,
international broadcasting mav be considered to
904
be competing, and denyin<>; revenues to the radio
and the press of the countries where the markets
are sought.
It does not seem that international broadcasting
with all its national and international implica-
tions constitutes a field, for private competition, or
even if it did, that it represents a field with ade-
quate connnercial revenue to provide the very
large sums needed to render a public service of
genuine Avorld magnitude.
Letter from the Acting Chairman, Federal
Communications Commission
May 7, 19Jf6.
My Dear Mr. Bexton :
This will confirm the conversation which I had
this morning with Mr. Bracken of your Depart-
ment on the subject of inteimational broadcasting.
As I told Mr. Bracken, it appears to ns here at
the Commission that the Congress must make the
decision as to -whether the United States shall en-
gage in international broadcasting, the extent to
which such operations shall be carried on, and the
proper agency for conducting such operations.
This particularly involves a settlement of the
question of whether shortwave broadcasting
should in the future be conducted by an instru-
mentality of the Federal Government or whether
responsibility in this field should be turned back
to the radio broadcast industry. I understand
that in the near future the State Department,
through the Bureau of the Budget, will recom-
mend to the Congress specific legislation on this
point. While this Commission has not yet been
asked to take a position on the specific proposals
that are to be made, we do feel that it is important
that some concrete proposal be made jjromptly to
the Congress so as to afford a basis for considera-
tion, discussion and settlement of these important
problems. In the meantime, that is until Congress
shall have had an opportunity to consider the leg-
islation which you are about to propose, it is the
view of the Commission that it is important that
Congress maintain the status quo by providing
sufficient appropriations for the continuance be-
yond June 30, 1946 of the present arrangements
whereby the United States Government, through
the De])artment of State, leases and programs this
country's shortwave broadcast transmitters.
If Congress does not provide for the continued
DEPARTMENT OF STATE BULLETIN
State Department operation beyond June 30, then
this Commission would on that date be confronted
with the question of whether it should authorize
a resumption of shortwave broadcast operations
by the seven private corporations which wei'e li-
censed ju'ior to our entry into the war and whether
additional private operations should be authorized.
This would involve the decision by the Commission
of a very fundamental cpiestifni of policy which
we believe Congress to be in the best position to
decide. Accordingly, it is our hope that Congress
provide for the preservation of the status quo
until it has had an opportunity to consider the
bill that your Department is about to present.
Hearings on this bill will afford an opportunity
for obtaining the views not only of the State De-
partment, the Commission and other interested
government agencies, but also the views of the
broadcast industry and other groups which are
interested in seeing the proper solution of tliis
very important problem.
The Commission, of course, is not at this time
taking any position on the question of how these
problems should ultimately l)e resolved, nor do
we take any position on the amount of funds that
will be required in order to preserve the status
quo long enough to afford an adequate opportunity
for Congress to decide these questions. For the
l)resent we simply take the view that the problems
are so fundamental and so important that they
should be decided by the Congress and that in
the meantime the status quo should be preserved.
By direction of the Commission
Charles R. Denny
Letter from the Administrator^ Office of Price
Administration
May 7\ lOIfi.
Dear Mr. Benton :
I believe that sufficient funds should be appro-
priated to permit international radio to continue
until such time as the Congress has had the oppor-
tunity for considering the whole matter of inter-
national broadcasting through the medium of
legislation.
It is my understanding that this legislation is
now being drafted for submission to the Congress
i)y the State Department.
Sincerely yours,
Paul Pouter
MAY 26, 1946
905
International Broadcasting — A National
Responsibility
Article by WILLIAM T. STONE '
THK InTEKXATIONAL BROADCASTING DIVISION
of the State Department is engaged in edu-
cational radio. Many people today are concerned
principally with the education of our own people,
who shai'e at least a common backgi'ound and
vocabulary. Our international student body, how-
ever, lacks the background and the elementary in-
formation which permit an undei-standing of even
the most commonplace aspects of American life.
From a technical viewpoint, short-wave radio
has come of age and is now accepted as a reliable
means of broadcasting over distances impossible
for medium wave. Much of the early work done
on these frequency bands was by experimenters and
amateurs who in many cases obtained amazing re-
sults. The potentialities of high frequencies for
broadcasting long ago were recognized by com-
mercial conununication organizations, but until re-
cently there was no urgent need for short wave.
Before the war short-wave broadcasting in this
country was conducted by six private licensees
with 13 transmitters. In the early stages of the
war our Government recognized that short-wave
broadcasting was strategically important as a
medium for expressing hope and encouragement to
support our war effort. New facilities were con-
structed and modern, powerful installations were
built. Short-wave transmission proved its abil-
ity to serve remote parts of the world.
In Latin America all of our feature programs —
that is, progiwms designed especially to inform
the listener of how our Government operates and
of how our people live — were rebroadcast over the
130 local stations aiRliated with the NBC and the
CBS. Many of our programs outstripped local
productions in popularity and brought a dramatic,
realistic interpretation of the good-neighbor
polic}' into the homes of our southern neighbors.
AVith tlie defeat of Germany, we began to swing
(jur whole mechanism into dealing with post-war
problems. As an agency of peace inteniational
broadcasting became more important than ever
before. Having proved its reliability through
contributions to the war effort, it was in a strategic
position to work for the peace.
The immense expansion of our overseas broad-
casting during the war gave us an effective means
of reaching peoples of many lands regardless of
national boundaries or censorship. Through in-
ternational radio we express the ideals of the
American people through factual news and com-
mentary, music, drama, and special events. We
explain the functioning of democracy. We
describe our customs and our institutions, and we
document the myriad aspects of our everyday life
in city and country.
What M'ill hajjpen to American short-wave radio
in the years ahead will of course depend upon
our elected lawmakers in the Congress. The State
Department recognizes the "Voice of America" as
an effective instrument of peace and good-will and
regards its operation as a national responsibility.
The position that our country has gained as a
result of the war charges us with a responsibility
which we cannot refuse to assume.
Why should we bother with international broad-
casting? For one thing, short-wave radio is the
only medium of information which can operate
throughout the world without regard for inter-
national boundaries. It is the most effective
means of putting the facts of America before the
' This article is luised on an address tliat Mr. Stone gave
in Columbus, Ohio, on May 4, 1946 before the Institute
for Education by Radio. Mr. Stone Is Director of the
Office of International Information and Cultural Affairs,
Department of State.
906
DEPARTMENT OF STATE BULLETIN
bar of world public opinion and of conibuting mis-
information. Here is an example :
Recently a Belfji'ade newspaper dramatically
reported six million unemployed in the United
States. The article pictured chaos in America.
(Pre-war Yugoslavia had a population of 15,703.-
000 people.) The Belgrade newspaper did not
report that we had 50,000,000 people gainfully
employed in the United States. In addition the
figure was incorrect ; actual unemployment at the
time was estimated to be 2,700,000 by the Bureau
of Labor Statistics. Our job, of course, was to
i-eport the facts.
To do a job commensurate with the needs of the
American people, short-wave radio must be geared
to serve the entire world. Adequate global short-
wave coverage requires a broad and complicated
language pattern and embraces mmierous prob-
lems of dialect, program types, and frequencies and
facilities use. Many areas of the world present
political problems which have repercussions all
over the world and with which the United States
must reckon. Some of these areas are now
shielded l)y the curtain of censorship, through
which only radio can pass. In many areas the
short-wave program represents the only source of
news which cannot be censored or controlled locally
at the receiving location.
The public interest requires that international
radio be adequately financed. As a means of ex-
pressing America, its culture and its ideals, short-
wave radio will pay incalculable dividends to the
American taxpayer. The United States camiot
afford to do a second-rate job on a first-class medi-
um of information which other nations use so
extensively and intelligentlj' to i)resent their views
to the world.
International broadcasting is not confined to the
Soviet Union, the British Empire, and the United
States. The French, Spanish. Dutch. Swedes,
Finns, Chinese, and Latin Americans — 49 nations
in all — are in the international-broadcasting field.
Out of 18 hours a day beamed to North America,
the BBC originates specifically fo;' the North
American audience 12 hours and 45 minutes a day
of programs. To do this, BBC uses nine trans-
niitteis throughout the day beamed to the United
States. The French are beaming 1 hour and 45
minutes a day on the North American circuit. The
Swedish radio beams 1 hour a day on North Amer-
ica, and the Finns have nearly 5 hours weekly
beamed to the United States.
Perhaps most of you are not familiar with our
programs. News — factual reports of the news of
the day — constitutes about 15 percent of our out-
l)ut. The balance of our programing embraces a
variety of program types. News commentaries^
which are a presentation of American opinion
gleaned from editorial comments from throughout
the country, are dedicated to the purpose of prop-
erly orienting the listener so that he can evaluate
the news as factually given to him. Special events,
of which the United Nations Security Council
broadcasts are a good example, give full treatment
of significant events and of people of importance
to the United States. Musical programs embrace
the finest music of our country. Expert informa-
tion proyram.s — panels of experts from American
business and Government — impart expert infor-
mation to answer the questions of the listeners.
Documentations of progress of American science,
medicine, arts, and crafts are presented by skilful
dramatizations. Special features, employing two
or more voices, are designed to bring the daily oc-
currences in American life which are of keen in-
tei'est to foreign listeners.
In international bi'oadcasting we have from the
beginning recognized the great potentialities for
educational programs. During the war there were,
of course, great limitations on educational radio
via short wave. But even then we were able to
present, especially for our Latin American listen-
ers, educational programs which were of tre-
mendous influence.
One of our most successful educational pro-
grams now is Radio University. This program,
started in December 1944, enjoys the enviable dis-
tinction of having been on the air 350 times. Radio
University, broadcast by short wave and relayed
locally in Italy, consists of lectures, discussions,
and round tables pi-esented by eminent authorities
in the fields of agriculture, Americana (biogra-
phies. Constitution, courts, industry. Government,
civil law. public law. philosophy), art. books, eco-
nomics, education, international affairs, medicine,
pure science, applied science, and social work.
Prominent educators. Government experts, econ-
omists, writers, critics, and artists contribute to
this educational series. Radio University enjoys
gi-eat popularity in Italy.
Radio University was introduced recently in
Polish-language broadcasts to Poland, where
listener clubs carry on the discussion after the
broadcasts, and plans are complete now for intro-
MAY 26, 1946
907
diiciii<r Radio Uiui'cr.sifi/ to all other International
Broaik'asting Division European-language pro-
grams and to Latin America.
We are now broadcasting once weekly in all
European languages a script entitled Care of the
ChUd. Prepared by a physician who is acquainted
with conditions in post-war Europe, and with the
counsel of UNRRA, these scrijits instruct Euro-
pean listeners on the care of children under ab-
normal conditions.
One of our most popular dramatic series on
American literature was Cuenfos de America
(Stories of America), which was broadcast to our
vast Latin American audience. Other important
educational programs on the Spanish American
beam are Ilacia un nundo mejor (Toward a New
World) and Pregunfajs y respuestu>i (Questions and
Answers).
Programs like the French A Vos Ordre^ and the
German Wir AntwoHen are devoted entirely to
answering questions received from listeners.
With our limited resources and air time, we
have by no means exhausted the potentialities for
doing educational work by international radio.
We have just made a beginning.
We regard it as a task of international radio to
contribute generously toward the development of
good citizenship throughout the world, just as
domestic radio plays a leading role in the develop-
ment of good American citizenship. By educat-
ing the vouth of the world along such vital themes
as tolerance, by developing a broader understand-
ing of each other and each other's institutions, by
supplying the tools of education, the information,
the knowledge, the objectivity of education — by a
carefully planned and systematic presentation of
such ideas — international radio can help in Imikl-
ing good world citizenship.
An important phase of our operations is the
coverage of the United Nations Security Council
hearings in New York. The International Broad-
casting Division has established an exclusive
sliort-wave network for this service. The United
Nations Network presents a running translation
and description in French and English. In addi-
tion, our different language programs with estab-
lished short-wave audiences throughout the world
have been designated to cover the United Nations.
Recapitulations of the day's Security Council
happenings, background and descriptive material,
statements by delegates and other speakers, plus
special events are carried. The United Nations
Network embraces five stations using eight fre-
quencies.
That is roughly the picture of international
broadcasting from the United States. As we
stand now on the threshold of peace, we recognize
short-wave radio as a powerful instrument of in-
ternational information. Through experience we
have obtained a perspective on international radio.
We know its potentialities and we know how to
use it.
MILITARY TRIBUNAL— Co;i^/(»(</ imw imye 890.
with the General Secretary of the Tribunal for
action by the Tribunal.
Section IV
POWERS OF TRIBUNAL AND CONDUCT OF TRIAL
Under Article 13, Evidence
d. Judicial Notice. The Trilnuial shall neither
require proof of facts of common knowledge, nor
of the authenticity of oiRcial government docu-
ments and reports of any nation nor of the pro-
ceedings, records, and findings of military or other
agencies of any of the United Nations.
Under Article 15. Course of Trial Proceedings
c. The prosecution and each accused (by counsel
only, if represented) may make a concise opening
statement.
e. The prosecution and each accused (by counsel
only, if represented) may examine each witness and
each accused who gives testimony.
/. Accused (by counsel only, if represented) may
address the Tribunal.
By command of General MacArthur :
RiCH.\RD J. Marshall
Major General, General Staff Corps. Chief of
Staff.
Offici.\l :
/s/ B M FrrcH
/t/ B. M. Fitch.
Bi-igartier General. AGD,
Adjutant General.
908
DEPARTMENT OF STATE BULLETIN
Policy on Trade Privileges in Ex-Enemy States
[Released to the press May 13]
Te.vf of letter dated May 9 from Acting Secretary
of State Dean Acheson to Mr. Jack Frye, Presi-
dent, Transcontinental a/id Western Air, Incor-
porated
My Dear j\Ir. Frye :
Keference is made to correspondence with re-
spect to tlie agreement between your company and
the Italian Government for the organization and
ojjeration of an air line to conduct air transport
services within Italy.
The Department has given very careful consid-
eration to your request that steps be taken to pro-
tect your interest in Italy, in the light of the over-
all interests of the T'nited States. It has come to
the conclusion that in view of the policy of the
United States Government which is opposed to
granting or obtaining of exclusive trade privi-
leges in ex-enemy states by the interests of any one
power, the Department cannot intercede on behalf
of your company with the Italian Government as
long as the contract provides that Linee Aeree
Italiane will have the exclusive right to conduct
air transport operations over the extensive routes
specified therein.
In the event that the contract should be modi-
fied to omit this exclusive feature, the Department
is prepared on behalf of the United States Gov-
ernment to urge the Italian Government to pro-
ceed with the implementation of the agreement.
The position of the United States in this connec-
tion is being made known to the British Govern-
ment.
Sincerely yours,
Dean Acheson
. Acting Secretary
[Released to the press May 13]
Text of note from Acting Secretary Acheson to
the British Ambajisador
The Acting Secretary of State presents his com-
pliments to His Excellency the British Ambassa-
dor and has the h(nior to refer to an aide-memoire
from the British Embassy dated April 5, 1946 re-
garding British particii)ation in Italian civil avia-
tion. The aide-memoire expresses the hope that
the United States Ambassador at Kome will be
instructed to inform the Italian Government that
the United States Government would welcome the
amendment of the contract between the Italian
Government and Transcontinental and Western
Air, Inc., along the lines suggested by the British
Government.
This Government understands that the Com-
bined Chiefs of Staff on ]\Iarch 16, 19-16 approved
without qualification a request by the Italian Gov-
ernment tluit Italy be allowed to resume internal
civil air transport. The effect of this action was
in the opinion of this Government to permit com-
plete freedom of action to the Italian Government
in the organization and conduct of such operations.
The British Government suggests that this Gov-
ernment join it in endeavoring to persuade the
Italian Government that it should modify the con-
tract which it has concluded with a United States
carrier to provide for joint United States-British
participation with Italian interests in the opera-
tion of an air service. This Government is advised
that the United States carrier involved does not
consider that such an arrangement would be prac-
ticable from the point of view of an effective oper-
ation and that it is opposed to a mixed company
such as has been suggested. As the British Gov-
ernment is aware, this Department is without au-
thority to compel a private United States corpora-
tion to modify contractual arrangements wliich it
has made legally.
Xotwithstanding the foregoing, the United
States Government is not prepared to exercise its
good offices with the Italian Government looking
toward the implementation of the contract between
the Italian Government and Transcontinental and
Western Air, Inc., unless and until the contract
has been modified to omit the exclusivity features,
which this Government regards as objectionable.
In the event that the contract is so modified, the
United States Government would then feel justi-
fied in advising the Italian Government that the
latter should j^roceed with the implementation of
its agreement with the United States carrier.
Once the contract has been so modified, it would be
possible for the Italian Government to enter into
MAY 26, 1946
909
such furtlier arranjienients as it deemed advisable
which might provide iov the establishment of a
joint British and Italian company to operate air
transport services between points in Italy.
It is this Government's view that the opportu-
nity for participation in the internal civil aviation
of ex-enemy states should not be restricted to any
one state or any combination thereof to the exclu-
sion of others. However, the United States Gov-
ermnent does not consider that such participation
necessitates the joining of foreign interests in a
single enterprise.
Department or State,
Washington
May 9, 1946
A])piopriate instructions have been transmitted
to the American Emba.ssv in Rome.
Request to Yugoslavia for
Submitting Testimony in Trial
of General Mikhailovich
[Released to the press May 14]
Note delivered to thi Yuc/oxhiv Mln/Kfn/ of For-
ei(/n Affairs on Men/ 7 hij the American Charge
(F Affaires ad interim at Belgrade^ Yugoslavia
The American Embassy presents its compli-
ments to the Ministry of Foreign Affairs and
mider instructions from its Government has the
honor to transmit the following reply to the Min-
istry's note No. 3663 of April 4, 1946.i
On March 30, lO-tfi. the United States Govern-
ment informed the Yugoslav Government that a
number of persons in the United States who were
closely associated with General Draza Mikhailo-
vich possess first-hand knowledge of his activities
during the Axis occupation of Yugoslavia which
would appear to l)e material to judicial determina-
tion of General Mikhailovich's case.- The United
States Government stated that it would appreciate
an indication of the place and time of trial of
General Mikhailovich and of the steps the Yugo-
slav Government was prepared to take to facili-
tate the presentation of such evidence by persons
who mieht so desire.
The Government of the Federal People's Repub-
lic of Yugoslavia replied to that connnunicatitm
under date of April 4, 1946, stating that it re-
gretted that it is unable to comply with the desire
of the United States Government and that it is
"solely up to the military court, which will deal
with this case, to summon any witness whom it
might deem necessary and the Government of the
Federal People's Republic of Yugoslavia are not
entitled to exercise any influence upon the court."'
The Yugoslav Government's reply also contained
the statement which the United States Govern-
ment has difficulty reconciling with the principle
of judicial determination of culpability, "that the
crimes of General Mikhailovich 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."
Meanwhile, representations have been made to
the United States Government by various indi-
viduals and groups in the United States who have
em))hasized their readiness to testify on behalf of
General Mikhailovich. A large majority of such
persons are United States aviators who were shot
down over Yugoslavia and were rescued and re-
turned to Allied lines by Mikhailovich's forces.
As an example, a group of 20 United States air-
men who thus parachuted into Yugoslavia between
January and December 1944 have called personally
at the Department of State and have expressed
their desire to make available the information
they possess either by attending the trial in person
or by submitting testimony in writing if consid-
ered appi'opriate. Numerous approaches to the
same end have also been made by mail.
In the cii-cumstances, the United States Govern-
ment desires to renew its request to the Yugoslav
Government that arrangements be made whereby
the evidence of such persons may be presented in
the trial of General Mikhailovich and that the
United States Government be informed as a mat-
ter of urgency concerning those arrangements.
The Embassy of the United States of America
takes the opportunity to renew to the Ministry of
Foreign Affairs of the Federal People's Republic
of Yugoslavia the assurances of its highest con-
sideration.
' Bulletin of Apr. 21, 1946, p. 669.
■ Bulletin of Apr. 14, 1940, p. 034.
910
DEPARTMENT OF STATE BULLETIN
Germany and the Occupation
Excerpts from a discussion on our occupation policy in Germany by Assistant Secretary of State Jolin
H. Hilldring and Assistant Secretary of War Howard C. Petersen wfiich was broadcast on May 18. The
broadcast was one in a group of State Department programs in the NBC University of the Air series en-
titled "Our Foreign Policy". Sterling Fisher, Director of the NBC University of the Air, was chairman of
their discussion, and Selden Menefee adapted it for radio.
F18JIER: How has the four-power Allied Con-
trol Council in Berlin actually worked out? Gen-
ei'al Hilldring. hasn't it been a rather awkward
arrangement, to say the least?
Hilldring: Its workability has exceeded our
fondest expectations. It wasn't our idea in the
first place to slice Gernniny into four sectors. We
accepted this plan with great reluctance; but with
V-E Day coming up we fuitl to find a formula
acceptable to all the major ])owers. However, the
Allied Control Council has worked out better than
the most optimistic U.S. officers believed possible
a year ago. In a steady, unspectacular way the
Control Council has been a forum in which four
great powers — Russia, Britain. France, and our-
selves— have for a year worked together on the
most complex and vital problems. Let me be very
specific : I'd like to recall the dire and gloomy pre-
dictions quite a few observers made about a year
ago, that the four-power arrangement would fall
to pieces over two problems — reparations and the
German standard of living. Yet we were able to
get agreement on both of these questions, and
many others.
Fisher: How far can you permit production
essential for her minimum needs without restoring
Germany's war-making potential ?
Hilldring: After a full and frank debate, the
Allied Control Council found a middle ground.
The case of steel was typical. One of our partners
in the Control Council wanted practically no post-
war steel industry in Germany ; the other wanted
a 12-million-ton industry. Both sides exposed
their views to the light of logic and of facts. In
the end, thanks largely to the perseverance and
ability of Gen. Lucius Clay, we were able to bring
the two sides together. This to my mind was an
historic jjoint in international negotiations.
Fishek: How did you work out the steel ques-
tion ?
Hilldring: We did it by developing a plan
which took account of Germany's miiiinuim domes-
tic and export needs. The Control Council agreed
to reduce German steel capacity, which had been
around 20 million tons before the war, to 7.5 mil-
lion tons. But tlie German steel industry never
runs at 100 percent of capacity, and we are limiting
actual production to only 5.8 million tons.
Petersen : You can compare that to our own
steel industry, which has a capacity of 75 to. 80
million tons a year. It's pretty obvious that 6
million tons or so of steel a year could never be a
l>ase for a major German war effort — particularly
with careful controls over the types of steel ])rod-
ucts which Germany will be permitted to
manufacture.
Hilldring : So the British and the Eussians —
and the French — agreed on a formula completely
in accord with our policy. But this is only one
example of the way the Allied Control Council
has operated. It has a long list of impressive
achievements. The reestablishment of trade un-
ions, judicial reorganization, the de-Nazificatioii
program, and many others could be mentioned.
Of course I do not mean to make light of the
difficulties inherent in four-power occupation, nor
to assert that there are no unresolved problems
remaining for continued discussion. What I want
to emphasize is that in the Control Council we have
a machine already in operation where the four
powers can and must and do reconcile the most
divergent ideas in an intelligent and friendly
spirit.
Fisher : Now, several writers have alleged that
under the four-power system the British and Rus-
sian zones are rapidly becoming armed camps, di-
rected at each other, while we sit up in the hills of
Bavaria looking on. Mr. Petersen, what about
that ?
Petersen : I don't believe that. Take the recur-
rent story that the British have not disarmed the
MAY 26. 1946
911
German armies they captured in northwest Ger-
many. That's simply not so. It's based on the
fact that some former German Army units have
been disarmed but kept intact as work forces, like
prisoners of war, to serve under the Military Gov-
ernment in the British zone. We don't follow that
practice in our zone, but it's a very different thing
from an armed German force.
Fisher: I have talked to some people who be-
lieve that we may be on the wrong track when we
woi'ry so nuich about disarming Gerauiny. They
believe German strategy now is to play the major
powers against each other.
Petersen: I don't doubt that some Germans
would like to do just that. They want to end the
occu[)ation, and probably figure that encouraging
Allied differences may be their best strategy for ac-
complishing that. But I don't think there is any
organized effort along those lines.
FisHEK : General Hilldring. what do you think
of the suggestion that we work toward applying
the American policy of political decentralization
to all of Germany i
HiLLDBiNG : This Government is connnitted to
destroy the concentrated power of Prussia in Ger-
many. In the U. S. zone we have made very rapid
strides in developing local responsibility in the
Lander, or states, in permitting free elections of
local officials, and in encouraging the formation
of decentralized political agencies in numerous
ways. The peace and prosperity of all of Europe
rest in large part on solving the historic problem
of the rule of Prussia, and we have encouraged
and will continue to encourage the gi-eatest au-
tonomy in municipal, county, and pi'ovincial
administration. It is our purpose to urge our
partners to do the same.
Fisher: The commonest criticism is that we
have been too easy on the Germans, or on the Nazis.
As Assistant Secretary of State, General Hilldring,
do you think we have been tough enough in the
actual application of our policy?
Hilldring: I have wanted for a long time to say
something about whether our policy in Germany
was too tough or too soft. I think softness and
toughness are completely irrelevant considerations
in the determination of the policy we follow or
don't follow in Germany. I think that to weigh
our policy by its toughness or its softness is just
about as sensible as to debate whether Texas is too
big or too small. It has nothing whatever to do
with the problem. Here's the real question : Does
the policy we follow in Germany serve the ends
we hope to achieve in Germany — namely, to de-
militarize and democratize the country? That
question I can answer. The answer is yes.
Fisher: Can you give us an over-all picture,
Mr. Petersen, of how our Military Government is
getting rid of Gernumj^'s war potential?
Petersen : The basic policy was laid down at
Potsdam. The Military Government authorities
of course worked through the Control Council, as
in the case of steel. The first step was to eliminate
all war industries — ammunition, planes and so on.
Then the question was, how nuich of what was left
should be kept in order to permit a German level
of living no higher than the average of the other
European countries, as provided in Potsdam?
Once that question was answered, everything over
and abt)ve that level was available for reparations.
Fisher: General Hilldring, you mentioned ex-
ports of steel. Isn't there a danger that in rebuild-
ing their foreign trade the Germans may reestab-
lish ties with foreign cartels that will be useful
to them if another war comes?
Hilldring : I don't think so. We shall control
Germany's export trade completely. We won't
give them a chance to build their fences for an-
other war. Our policy is four-square against any
revival of the German cartel system.
Fisher: Mr. Petersen, what about the charge
that our Military Government authorities have
played ball with some of the cartel interests in the
Amei'ican zone ?
Petersen : That's absolutely false. Our policy
is to destroy cartels, and that we are proceeding to
do. Some correspondents have seen factories of
these cartels still in operation, but this doesn't
mean they are not under strict control. In the
case of the largest German cartel, I. G. Farben,
only 15 percent of its activities are in the Ameri-
can zone, but we have removed the Farben man-
agement from these plants. We have destroyed
four or five of the Farben munitions plants. We
have kept those which are needed in the German
economy — but not as a part of a cartel structure.
One is a pharmaceutical plant— the biggest as-
pirin factory in the world. Others are nitrate
plants, which are needed for making fertilizer.
912
DEPARTMENT OF STATE BULLETIN
These plants are still ruiuiiiiji. but uiitler our close
supervision. And I might add, the Control
Council has agreed upon a law wiping out the
Farben cartel in all four zones.
Fisher : There have been some stories out of
Germany claiming that in recent months the Nazis
are ctiniing back into jiositions of impoi'tance.
General Hilldring. what about that ?
HiLi.DRiNG : There may be a few individual
cases which haven't yet been dealt with. But I'd
like to point out that we have thrown over 300,000
Nazis out of positions oi importance, in the govern-
ment, industry, the press, and education, in the
American zone alone. De-Nazification has been
more vigorously cai'ried out in tlie American zone
than in the other zones.
Fisiier: General Hilldring. one American cor-
respondent said recently that there is no master file
of Nazis and Nazi sympathizers in Gennany. Is
that true?
Hilldring: It was true at one time. But we
now have a master file. We had to piece it to-
gether from 90 tons of wreckage we found at
Marburg. The files were in a complete mess, and
it took time to reassemble them. But we have had
a master file for nearly three months now. We
have used it in two ways. We presented a list of
American Nazis to the Kilgore committee, and we
have ))een employing the tile in tlie de-Nazification
program.
Fisher: And what's the next step in that pro-
gi-am ?
Hilldring: To turn over as much of this work
as we can to trustworthy Germans. Our business
is to cleanse the German mind — 1'> democratize
Gernuiny. Now, we can't spoon-feed the German
people indefinitely. So local boards are being set
up to finish the job of de-Nazification under our
strict supervision.
Fisher: But do you think they will really do
the job?
Hilldring: I think the prospects are pretty
good, especially since we shall oversee the process,
call the tune, and watch every move.
Petersen : I think it would be a good idea. Gen-
ei"al, for you to tell how the final delousing will
operate.
Hilldring: General Clav directed the three
provincial Minister Presidents in the American
Z')ne to work out a de-Nazification law. They
did — and General Clay told me that the provisions
of the law they produced were even tougher than
those Military Government had in mind. The
Germans also devised a questionnaire which every
adult German in our zone must fill out and sign.
These will be checked against our files of Nazis and
pro-Nazis. On the basis of this information, the
Iccal boards will finish cleaning house, under our
supervision.
Fisher : Let's hope they will really catch the
hidden Nazis. Of course, Mr. Petersen, the con-
spiracy that was recently uncovered among Nazi
youth was not very encouraging.
Petersen : That was a very limited movement.
To be perfectly frank, Mr. Fisher, it's still too
early to expect much underground activity. Most
of the Germans are still too busy with the daily
problems of living in their devastated country.
Problems of food, fuel, and shelter come first.
But we are not oveidooking the possibility of at-
tempts of this kind in the future.
Fisher : That's a fair warning. But General
Hilldring, if this is true wouldn't it be pretty risky
to withdraw our troops and depend on a system
of inspection to keep the Germans in line, as Sec-
retary Byrnes is said to have pi'oposed in Paris?
Hilldring: The Secretary's proposal was for
a '2,5-year military alliance to guarantee German
disarmament. It did not call for the withdrawal
of our f(U'ces. But we have got to face the fact
that we can't stay in Germany forever.
Fisher: Meanwhile, General, what is being
done to reeducate the Germans?
Hilldring: We're concentrating on reeduca-
tion now. I think we can say the schools have been
completely screened and all pro-Nazi teachers
thrown out. The worst of the Nazi text books
liave been eliminated.
Fisher: Mr. Petersen, how do you account for
the stubborn Nazi tendencies among German
youth ?
Petersen : What can you expect in a year, Mr.
Fisher? Let's not be too naive or too optimistic
about this. After all. Hitler was supreme dicta-
tor for 12 years. That means a German youth
who graduated from the equivalent of high school
last year spent his entire student life in Hitler
schools, from the day he entered the first grade.
MAY 26, 1946
913
There's no mapic wand that can purge German
youth of Nazi ideas in one year.
HiLLDRiNG : Especially since our Military Gov-
ernment had to spend a good part of that first
year de-Nazifying the Germans, destroying mili-
tary installations, taking custody of Nazi pro])-
erty, restoring loot, re]3atriating displaced per-
sons, and starting a reparations ])rogram. AVe're
just entering the period when we can spend a
major part of our energy on reeducation.
Fisher: Now, General Hilldring, about the
elections held last month in the American zone in
Germany —
Hii.LDKiNG : They were more than anything else
a ]iart of our training jn'Ogram fen- democracy.
Pktersen: The Christian Social Union won the
election. It is really a party of the center, by our
standards. The Communists got only about 5
percent of the vote.
Fisher : There have been some reports that this
Christian Social Union has furnished a haven for
Nazis and Nazi sympathizers — such men as Dr.
Friederich Schaeft'er, who was fired from a key
position in the Bavarian Government when his
Nazi connections were exposed.
Petersen : He has also been barred from leader-
ship in the Christian Social Union. All Nazis are
l)rohibited from political activity.
Fisher: Mr. F'etersen. one of the most disturb-
ing reports to come out of Germany recently was
about conditions in the camps where D. P.'s — dis-
placed persons — are kept.
Petersen : These people are a matter of grave
concern to us. There were a number of criticisms
about conditions in the camps shortly after V-E
Day, when the Ai'my was in the midst of the tre-
mendous job of maintaining and repatriating
about three million displaced persons. I haven't
heard such criticism recently. Conditions in the
Jewish camps were investigated not long ago by
Judge Simon Rifkind, General McNarney's ad-
viser on Jewish affairs.
Fisher : 'What did he have to say ?
Petersen : His report was very favorable. He
said that Jewish displaced persons were allowed
broad freedom of movement and their camps were
more like communities than concentration camps.
He si^oke of ''the Army's warm-heartedness in
dealing with all displaced persons".
Fisher : Mr. Petersen, I'd like to ask you about
the rather alarming i-eports concerning the morale
of our occupation forces.
Petersen: There's been a good deal of exag-
geration in these stories of low morale. We've
had our troubles, of course — mainly because of
the tremendous turnover of personnel. 'We've had
to demobilize so rapidly that a certain amount of
confusion was inevitable. We had green men, new
units with new officers, men who hadn't been
welded together in combat. They haven't been
together long enough to develop any pride in their
units.
Fisher: Couldn't they have been indoctrinated
a little better, so they would understand the im-
portance of their assignment ?
Petersen: With the rapid demobilization and
the hurried need for replacements, we haven't had
nuich time for indoctrination, but we are work-
ing on it. General McNarney has an excellent,
orientation program under way. Conditions
should improve from here on in. General Eisen-
hower, speaking of conditions in the Pacific,
recently said that the morale and efficiency of
the Army has passed the low point and is definitely
on the upswing. I think that is true of Ger-
many, too.
Fisher : I'd like to ask you to tell us a little
about your occupied-area office in the State
Department.
Hilldring : For the first time a single office has
been charged by the Secretary of State with co-
ordinating all State Department policy for occu-
pied enemy territories — not only Germany but
Austria, Japan, and Korea as well. Our purpose
is to establish clearly the leadership of the State
Department in policy making.
Fisher: General Hilldring, has this new ar-
rangement given rise to any reorganization in the
State Department ?
Hilldring : No fundamental changes. It's main-
ly a matter of coordinating the activities of each
division that deals with occupied territories. The
work of the State Department's political, eco-
nomic, and information branches has to be coordi-
nated. With coordination at the top, you get
policy and you get it on time.
Fisher: Then, Mr. Petersen, j-our representa-
tives are charged with executing or administering
State Department policy.
Petersen : That's right. A policy decision goes
914
DEPARTMENT OF STATE BULLETIN
first to "SWNCC". tlie State-War-Navy Coordi-
iiaUng Committee, on wliicli I am the War De-
partment member and General Hilldring repre-
sents the State Department as chairman. From
tliere the policy is passed on — in the case of Ger-
many—to "OMGUS" for execution.
Fisher : YouVe overwhelming us with initials,
Mr. Petersen. 'Wliat is "OMGUS"?
Petersen : "Office of Military Government, U.S.
Zone". There are about 5,000 Military Govern-
ment personnel in the American zone under Gen-
eral Clay. The War Department has tried to get
State to take responsibility for these forces. At
one time a date was even set for the transfer —
June 1. We felt that a single agency should handle
both policy and administration of Military Gov-
ernment.
HiLLDRiNG : I had long urged State Department
responsibility for Military Government, as a sol-
dier and an individual.
Fisher: Why then. General Hilldring, hasn't
the State Department taken over the whole works?
Hilldking: The Department didn't feel able to
take on an additional job of such magnitude. So
the AVar Department will continue to administer
Military Government in Germany.
Fisher: But, General, what about the decision
to introduce civilian control of Military Govern-
ment ?
Hilldring : The War and State Departments
are agreed on eventual civilianization. This
means that a civilian administrator in Berlin will
report to a civilian agency in Washington. Of
course, in the meantime the replacement of Mili-
tary Government oificers by civilians is also going
on rapidly.
Petersen : As a matter of fact, by June 30 two
thirds of our Military Government personnel will
be civilians.
Hilldring: But some military personnel will
stay on, of course. There are some things they can
do best — such as looking after public safety and
civilian supplies. One thing I'd like to make
clear is. Military Government is quite separate
and distinct from the occupation forces. General
McNarney heads both the occupation forces and
the Military Government of Germany.
Fisher : Mr. Petersen, how large are the occupa-
tion forces today ?
Petersen : I don't know about today, Mr. Fisher,
but a week or two ago our forces in Europe to-
taled about 400.000.
Fisher: Mostly in Germany, I suppose.
Petersen : Well, there are about ()0,000 Ameri-
can troops in Italy and Austria, and nearly all the
rest are in Germany — about 340,000. We will
bring this figure down to 300,000 by next June 30.
and we expect to make further reductions during
the year following.
Fisher: Those seem to me very modest figures
considering the policing job they have to do.
Petersen : Of course they are. We could do a
better job in almost all fields if we had more man-
power. That is why we are so terribly concerned
about the recent sham extension of the draft. I
say "sham" because it forbids us to induct the only
substantial group that is available, the 18 and 19
year olds. We fear we will not be able to meet even
our minimum requirements in Germany.
Hilldring: Our job is to make sure that Ger-
many will never again be a threat to the peace of
the world. We've got to have manpower to do that.
Hilldring : We might as well face it : This is not
a job we can do in one year, or two, or five. It
may take a generation. The American public must
api^roach this task with understanding, patience,
and vip-or.
ACHESON— Co?i((nMed/TO?n page 894.
It is our earnest desire and the goal of Secretary
Byrnes' unremitting eiiorts to establish peace in
Europe so that many countries may be freed of
occupation forces and their people enabled to di-
rect their eiiorts more completely toward the in-
crease of vitally needed supplies. General Mar-
shall is striving day and night toward the same
goal of peace in China. Armies can give no assur-
ance of security if the chill of starvation overtakes
continents and reduces the populations to the level
of the Dark Ages.
Of course survival is not enough. We want to
work in and through the United Nations toward a
better and fuller life for all men everywhere, but
we cannot blind ourselves to the appalling condi-
tions which make life itself precarious and doubt-
ful today for hundreds of millions of people
throughout the world. Our first objective, our
greatest concern, is to use our great jiower and
resources so that men and civilization will survive,
and so that once again we can begin to build the
kind of world in which man's talents will have free
])lay and his hopes a chance of realization.
MAY 26, 1946
915
Policy on Japanese Internal
Political Activities
[Releaseil to the press May 17]
In answer to inquiries on May 17 at his news
conference, Actin<j Secretary Acheson authorized
publication of the remarks of Mr. George Atche-
son, deputized by General MacArthur as Ameri-
can Representative and Chairman of the Allied
Council for Japan at its meeting of May 16 :
"Supreme Commander for the Allied Powers is
constantly in receipt of petitions from Japanese
individuals or groups of individuals. This peti-
tion is one of a hundred of various kinds recently
received.^ It is without signature and we cannot
say definitely from exactly whom it emanated ex-
cejit that, we understand, it was presented by a
group during the course of the various parades and
mass gatherings on May 1st. According to our
information, the allegations in the document are
not based on fact. Such allegations or complaints
are of course made the subject of investigation. I
repeat again that if any member of the Council
has any concrete and definitive information bear-
ing on these allegations, the Supreme Commander
would wish to have it without delay.
According to the translators, the document is
not written in idiomatic Japanese but rather gives
the clear impression that the original had been
drawn up in a foreign language and then trans-
lated into Japanese for presentation. It seems
to me to be a document which is essentially con-
cerned with internal politics in Japan. It has
been the firm policy of the Supreme Commander
not to interfere with internal political activities
except in cases of extreme necessity. The attitude
of the Supreme Commander toward the activities
of various political groups in Japan has rightly
been one of great generosity in permitting every
IJossible freedom of expression and action. By
directive, political prisoners have been released
from prisons in which some of them have been
incarcerated for manj' years. These prisoners
have included avowed leaders and members of the
Connnunist Party. I do not need to tell you that
the United States does not favor Communism in
the United States or Japan. But it has been our
firm belief that, in accoixlance with provisions of
the Potsdam Declaration, Japanese people should
be as free as people of the United States to develop
their political activities. Communist Party is not
suppressed in the United States and has been al-
lowed in Japan the same rights as other political
parties and members of Connnunist Party have
been elected to the Diet. The document which
we have under consideration contains the sign
marks of C/ommunistic propaganda.
We are met here for friendly and frank discus-
sions of matters brought before us. And while
I wish to offer my opinion in the friendliest way
I feel that it is an obligation upon me also to be
frank. It is my frank opinion that the efforts of
the members of this Council should be toward the
democratization of Japan and that it is not con-
sistent with our clear duty in that respect for
any member of the Council to give support in
public meetings of the Council or otherwise to any
one Japanese political party. There is one fur-
ther remark I would like to make in regard to the
document. It seems to me patent that it consti-
tutes essentially an attack upon the present Japa-
nese Government. As that Government resigned
some time ago and is carrying on only pending a
formation of a new government, the attack seems
pointless and the document accordingly merely
seems to be an attempt to spread Conununistic
propaganda."
Mr. Acheson stated that the Department con-
curred in the remarks of Mr. Atcheson.
Snmmations of Activities in
Japan and Korea
Sunuuations No. 0 for the Month of March
194(1 of Non-Military Activities in Japan and of
United States Army Military Government Activ-
ities in Korea consisting of information on polit-
ical, economic, and social activities were released
to the press by General Headquarters, Supreme
Connnander of the Allied Powers, and by the Com-
mander in Chief, United States Army Forces,
Pacific, respectively, and on May i by the War
Department in Washington.
Excerpts from Summation No. 5 for the Month
of February were printed in the Bulletin of May
5 and May 1^. . The Bulletin plans from time to
time to carry excerpts from the summations.
'The clofument referred to was one drawn up at a May
Day iiia.ss meeting held In Tokyo.
976
DEPARTMENT OF STATE BVLLETiy
Lend-Lease and Surplus Property Settlement With India
[Released to the press May 16]
Representatives of the Govenuuent of the
ITiiited States and the Government of India signed
on May Hi an a<rieenient representing an over-all
settlement of lend-lease, reciprocal aid, and sur-
plus prcjperty questions between the two coun-
tries.' The agreement was signed on behalf of
the Government of the United States by Acting
Secretary Acheson, and on behalf of the Govern-
ment of India by A. A. Waugh. Member for Indus-
tries and Supplies in the Viceroy's Executive
Council.
Discussions between the Department of State
oflicials and the Government of India lend-lease
delegation have been in progress in Washington
since the first week of April.
The agreement with India is a comprehensive
and final settlement for lend-lease, reciprocal aid,
and surjjlus war property located in India, and for
the financial claims of each government against
the other arising as a result of World War 11.
India served as a supply base for the Southeast
Asia Command during the war and, while a great
volume of lend-lease supplies were shipped to
India, the larger part was for the use of the Brit-
ish Government in India and Southeast Asia.
India supplied reciprocal aid liberally to the
United States, both in the form of supplies and
services to United States armed forces in India,
and in raw materials shipped to the United States
for war production. In view of the approximately
equal benefits received by the United States and
India from this interchange of mutual aid, which
aggregated over a billion dollars in value, it was
agreed that no dollar payments would be required
in the settlement between the two Governments
and all obligations arising out of lend-lease and
reverse lend-lease were balanced against each other
and canceled, excejit for the pre-exi.sting agree-
ment under which India will return to the United
States the silver received during the war.
Under the agreement the United States receives
' Not printPfl. For text of agreement, see Department
of State press release 3:U of Ma.v 16, 19-16.
full title to all unconsumed articles received from
India during the war under reverse lend-lease.
India agrees to cancel the outstanding obligation
of the United States to pay about 4.5 million dol-
lars in (-ash for supplies delivered to the United
States armed forces in India after V-J Day. The
agreement further provides that India receives
full title to all articles in the civilian lend-lease
inventory as of V-J Day and to a relatively small
quantity of articles which were in the lend-lease
"pipeline" for delivery after V-J Day. The ar-
ticles in the Indian military lend-lease inventory,
which were acquired by the Indian forces when
serving with the British Army and other articles
delivered to the Indian Army by the British forces
in India are retained by India subject to a right
of recapture by the United States. The United
States, however, has stated that it does not intend
to exercise generally such right of recapture.
The agreement replaces previous understand-
ings relative to the disposal of United States Army
and Navy surpluses in India. Title to all unsold
United States surpluses passes to India, and
India agrees to dispose of them on an equal basis
with war surpluses of Indian and United King-
dom origin.
As part of the over-all settlement the United
States will receive one half of all proceeds in
excess of 50 million dollars realized from such
disposals. The United States share of such pro-
ceeds will be available for the acquisition of real
estate and buildings for United States Govern-
ment agencies in India and for cultural and edu-
cational purposes of mutual benefit to the United
States and India. In the disposal of United States
surpluses by the Government of India, United
States veterans, government agencies, businesses,
and UNRRA will be accorded the same priorities
as are accorded to other buyers in India of like
character.
The bulk disposal of United States surpluses to
India has greatly speeded the final evacuation of
United States troops from India. It will also
result in very substantial savings to the United
(Continued on next page)
MAY 26, 194<>
917
Reply to View of Arab Countries on Anglo-American
Committee of Inquiry Report
[Relcaspil to the press J[:i.v 17]
Tlie Depiutnient of State on May IT trans-
mitted identical notes to the Chiefs of ^Mission
in Washington of the Governments of Egypt,
Ii'uq. Lebanon, Saudi Arabia, and Syria in reply
to their notes of May 10, 1946, setting forth the
views of the Arab countries with regard to the
report of the Anglo-American Committee of
Inquiry on Palestine which were handed to the
Acting Secretary of State on that date. The text
of the Department's reply follows :
3Ia!/ 17, 19JtG.
Sir:
I have the honor to acknowledge the receipt of
your note of May 10. 1946 with which you trans-
mitted a memorandum regarding the question of
Palestine, with particular reference to the report
of the Anglo-American Committee of Inquiry.
The views of your Government relative to tliis
matter as set forth in the memorandum in question
have been carefully noted by the appropriate
officials of the Government of the United States.
As you are aware, the report of the Anglo-Ameri-
can Committee of Inquiry is now being examined
by the Governments of the United States and
Great Britain which have been in communication
with each other in this regard. I wish to take
this opportunity to renew to you the assurances
which I expressed to you during our conversation
on May 10 when you handed me youi- note, and
when I stated that it was the intention of the
Government of the United States to consult with
Arabs and Jews before taking any definite deci-
sion relative to the Committee's report.
Accept [etc.]
Dean Acheson
Acting Secretary of State
Diplomatic and Commercial Agreement with the Yemen
[Released to the press May 14]
The Government of the United States and the
Kingdom of the Yemen concluded at San'a on May
4, 1946 a provisional agreement covering diplo-
matic and consular representation, juridical pro-
tection, and commerce and navigation, following
the recent recognition of the independence of the
Yemen by this Government.
The agreement, effected through an exchange
of notes, provides that subjects of His Majesty
the King of the Yemen and nationals of the
United States are to be treated in accordance with
the requirements and practices of international
law and are to enjoy most-favored-nation treat-
ment in respect of their persons and property.
Both parties agree to the most-favored-nation
principle in its unconditional and unlimited form
as the basis of their commercial relations. Provi-
sion is also made for exchange of diplomatic rep-
resentatives and consular officers at some future
time. The agreement became effective May 4, 1946
and is to remain in force indefinitely, subject to
termination on 30 days' notice, or until superseded
by a more comprehensive commercial agreement.
The Yemen already has treaty relations with a
number of other countries, including Belgium,
Egypt, Ethiopia, France, Great Britain, Iraq, the
Netherlands, Saudi Arabia, and the Union of
Soviet Socialist Republics.
LEND-LEASE— ('"'"'"'"''' from ihujc 9 Id.
States by elimination of the operating costs of the
United States Army in India at least a year earlier
than would have been the case if the United States
had handled the actual sales itself.
This settlement is especially significant because
it is the first formal agreement between India and
the United States, and its harmonious completion
is an auspicious opening for relations between the
United States and an India now on the verge of
independence. The successful conclusion of these
negotiations augurs well for the future of rela-
tions between the United States and India.
918
DEPARTMENT OF STATE BULLETIN
Training Announcements
Orientation Conferences
M^ednesday eleven O'cloch series
Professor Owen Lattiiuore. Director,
Walter Hines Page School of Interna-
tional Studies, Johns Hopkins Univei'sity,
and noted authority on China, will dis-
cuss "Our Problems in the Far East" at
11 a.m., Wednesday, June 5. Dr. Latti-
more is the author of Solution in Asia;
he was adviser on Fur Eastern affairs to
OWI; and he served as President Roose-
velt's s])ecial representative to General-
issimo Chiang Kai-shek,
Departmental series
Mi-s. Ruth B, Shipley, Chief of the
Passport Division, will speak on "The
AVork and Problems of the Passport Divi-
sion" at 10 a,m,. Wednesday, June 5,
Foreign. Sendee training series
Dr. William P, Maddox, associate pro-
fessor of political science, Princeton Uni-
versity, now on leave with the War De-
partment with the rank of Colonel in the
Office of the Assistant Secretary of War,
has recently returned after three years of
intelligence work in the European The-
ater of Operations. Dr. Maddox will dis-
cuss "The Background of World Politics"
at !) a.m., Ttiesday, June 4.
These lectures will all be held in room
474, Main State Department Building.
Foreign Service Officer Training
Since 1941 the Department has organ-
ized programs of training primarily for
auxiliary Foreign Service officers. The
first course in five yeai's for career
Foreign Service officers will get under
way on Monday, June 3, The officers in
this group have been selected from the
many thousand candidates who took the
Foreign Service examinations while in
the armed services. Intensive training is
conducted at Lothrop House, 2001 Con-
necticut Ave.
Publication of 'Papers Relating
to the Foreign Relations of the
United States, the Paris Peace
Conference, 1919", Volume VII
[Itcleaseil to the press May 18]
On May 19 the Department released the first of
three volumes containing the minutes of the Coun-
cil of Heads of Delegations at the Paris Peace
Conference of 1919. The other two volumes of
these minutes are in advanced stages of prepara-
tion and will be released later this year.
The Heads of Delegations is the designation
given to the Supreme Council in the form it as-
stuned after the signing of the Treaty of Versailles
witli Germany on June 28, 1919 antl the return
home of President Wilson and Prime JNIinister
Lloyd (leorge. Clemenceau continued as chief of
the French delegation, while the British were
headed by Arthur Balfour. Secretary of State
Robert Lansing remained a short time as head of
the American delegation, and then Henry White
filled in until the arrival of Frank Polk, who had
been Acting Secretary of State during Mr. Lan-
sing's absence from Washington. Herbert Hoover
frequently presented his views regarding food and
other economic problems, Italy and Japan were
also represented on the Council.
While the treaty with Germany had been signed,
th.e other treaties of the peace settlement had still
to be completed and political and economic prob-
lems of the moment had to be dealt with. Then as
now, hunger followed in the wake of war and the
return to stability in eastern Europe was slow.
With such matters the Heads of Delegations were
concerned.
The present volume carries the story from July 1
to August 28, 1919; volume VIII will continue the
record through November 5, 1919; and volume IX
^yill complete these minutes through the final meet-
ing of the Heads of Delegations on January 10,
1920.
The Department plans to fill the gaji in the Paris
Peace Conference series caused by the delay in
l)ublication of volumes V and VI containing the
minutes of the Council of Four by the release of
tliese volumes as soon as they can be printed and
bound.
(Continued on next page)
MA) 2h, 194()
919
Treaty of Friendship and Mutual Assistance
Poland -Yugoslavia
The AiKirivdii Enibansj/ tit Warxinr transmitted to tlic
Dcitiirtiiiciit the text of the I'olLsh-Yugoslav Treaty of
Friendship and Mutual Assistanee which teas signed at
M'lirsaio on March IS, lO.'iG. The text as it appeared in
the M'arsaw press of March 20, li>.',l! follows
The President of the National Council of the Homeland
of the Polish Republic on tlie one part and
The Presidium of the National Skupstina of the Fed-
erated Yugoslav Peoples Republic on the other jiart ;
Drawing conclusions from the exijeriences of the past
war, which, as a result of the aggression of Germany and
licr allies, caused great destruction in Poland as well as
in Yugoslavia,
r>esiring to strengthen the bonds of eternal friendship
between the brotherly Slav nations of both states, par-
ticularly strengthened and established during the joint
comb.it for freedom, independence and democracy against
Germany and her allies during the past war.
Acting on the conviction that the strengthening and
deepening of friendship between Poland and Y'ngoslavia
is advantageous for the most vital interests of both
countries and will most vitally serve the cause of Poland's
and Yugoslavia's cultural and economic development,
Striving for the strengthening of peace and security for
Poland and Yugoslavia and general peace and security,
Have decided to consummate a treaty of friendship and
mutual aid and for this purpose have designated their
plenipotentiaries.
The president of the National Council of the Homeland
of the Polish Republic has designated the Premier of the
Government of National Unity of the Polish Republic,
Edward 0.sobka-Morawski,
The Presidium of the National Skupstina of the Fed-
erated Yugoslav Peoples Republic has designated the
Marshal of Yugoslavia, Joseph Broz-Tito.
Who after exchange of their credentials, recognized as
valid and prepared in proper form.
Have agreed to the following points :
Article 1
Each of the high contracting parties agrees to refrain
from concluding any alliance and from taking part in any
action directed against the other high contracting party.
Article 2
In the event of a threat against peace and the security
of either country, the high contracting parties undertake
to con.suIt each other concerning their conduct just as in
more important cases concerning the interests of the re-
construction of their countries.
Article 3
In the event one of the high contracting parties .should,
as a result of aggression, be involved in war activities
against Germany, or against a state which was allied with
Germany in the past war or against any other state which
would ally itself directly or in any form with Germany or
with her ally in such aggression, the other high contract-
ing party will immediately give the other mihtary and
other aid and supi»rt by all means at its disposal.
Article 4
This treaty in no way violates obligations undertaken by
both high contracting parties in relation to third states.
The high contracting parties will carry out this treaty
in accordance with the statute of the United Nations
Organization and will supiwrt every initiative tending to
remove the centers of aggression and to establish peace
and security in the world.
Article 5
This treaty comes into force on the day of signature and
will remain in force for 20 years.
If nf)tice of dis.solution is not given by one of the high
contracting parties at least one year before the expira-
tion of the agreed period and so on.
The treaty is subject to ratification. Exchange of rati-
fication documents will take place in Belgrade at the
earlie.st po.ssible time.
In evidence of the above, the named plenipotentiaries
have signed this treaty and affixed their seals thereto.
Done in Warsaw. March IS, 1946, In two copies, both
authentic, each in the Polish and Serbo-Croatian lan-
guages.
By authorization of the President of the National Coun-
cil of the Homeland of the Polish Republic
Premier of the Government of National Unity Edward
OSOBKA-MORAWSKI
By authorization of the Presidium of the National
Skupstina of the Federated Yugoslav Peoples Republic
Premier of the government and Marshal of Yugoslavia
JozEF Beoz-Tito.
PUBLICATION— Continued
Foreign. Relations of the United State,s, The
Paris Peace Conference, 1,919, is jDrepared for pub-
lication ill the Division of Research and Publica-
tion under the direction of Dr. E. Wilder Spauld-
ing, Chief of the Division, and Dr. E. R. Perkins,
Editor of Foreign Relations. Volume VII (985
papes) is for sale by the Superintendent of Docu-
ments, Government Printing Office, Washington,
D.C., for $2..50 a copy.
920
DEPARTMENT OF STATE BULLETIN
Statements, Addresses, and Broadcasts of the Week
The Secretary of State
The Secretary of State
Acting Secretary Acheson
Assistant Secretary Braden
Donald D. Kennedy
Chief, Division of Interna-
tional Resources
Assistant Secretary of State
Hilldring
Assistant Secretary of War
Petersen
Reccwnmendations for the Council of
Foreign Ministers. Printed in this
issue
Principles of Trade for Peace and Pros-
perity. Printed in this i.ssue
American Strength: Our Share in World
Peace. Printed in this issue
On the suljject of the development of
economic stability among the Amer-
ican republics. Not printed. Text
issued as press release 326 of May 14
Foreign Policy Aspects of International
Trade in Hides and Skins. Not
printed. Text issued as press release
319 of May 10
Germany at\d the Occupation. Text
issued as press release 337 of May
17. Excerpts printed in this issue
Statement made at Paris, France, on May
14, 1946
Statement made on May 19, 1946 in con-
nection with the observance of Na-
tional Foreign Trade Week, May
19-25
An address made before the Women's
American Organization for Rehabilita-
tion Through Training on May 13,
1946 in New York, N.Y.
An address delivered on May 15 in New
York, N.Y., before the Conference of
Insurance Company Executives under
the auspices of the Chamber of Com-
merce and the Inter-American Council
of Commerce and Production
An address delivered on May 13 in Hot
Springs, Va., before the Tanners'
Council of America
A radio program broadcast over the NBC
Network on Mav 18
Coilten ^S— Continued
PlTBLICATIONS Page
Publication of "Papers Relating to the Foreign Relations of
the United States, the Paris Peace Conference, 1919,"
Volume VII 918
Treaty Information
Charter of the International Military Tribunal for the Far
East
Changes Made in Text- 890
Lend- Lease and Surplus Property Settlement With India . . 916
Diplomatic and Commercial Agreement With the Yemen . . 917
Treaty of Friendship and Mutual Assistance: Poland and
Yugoslavia 919
Training Announcements 918
PUBLISHED WITH APPROVAL OF DIRECTOR OF BUREAU OF THE BUDGET
0. S, GOVERNMENT PRINTING OFFICE: I94S
'!HE DEPARTMENT OF STATE
VOL. XIV, NO. 361
JUNE 2, 1946
\
1
r
Report by the Secretary of State on the Paris
Conference of Foreign Ministers . . page 950
The Rnssell Plan for the Reorganization of Positive
Intelligence Research in the Department of
State Page 928
Rubber and World Economy
Article by WILLIAM T. PHILLIPS Page 932
German Documents on Hitler's Plans for Norway
and Denmark, 1942 Page 936
Regional Arrangements and the United Nations
Article by WARD P. ALLEN Page 923
iL Z3 -,0
•+I0
For complete contents
see inside cover
Vl«^NT o^
'^tes o
tf.i
THE DEPARTMENT OF STATE
BULLETIN
Contents
Vol. XIV •No. 361*
Publication 2541
June 2, 1946
For sale by the Superintendent of Documents
U. S. Governmest Printing Office
Washington 25, D. C.
Subscription:
52 iesues, $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 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
work of the Department of Slate 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 tvell as
special articles on various phases of
international affairs and thefunctions
of the Department. Information con-
cerning treaties and international
agreements to tvhich the UnitedStates
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
legislative material in the field of in ter-
TUitional relations, are listed currently.
General Policy
The Far Eastern Commission
Existing International Organizations Concerned Witii Food
and Agriculture
Report by tlie Secretary of State on tlie Paris Conference of
Foreign Ministers
Confirmations : Pliilippine War Damage Commission . .
U. S. and Britisli Governments To Consult With Arab Lead-
ers on Palestine
Shipments of Grain to India
Herbert Hoover To Visit Other American Republics . . .
German Documents
German Documents on Hitler's Plans for the Future of Nor-
way and Denmark, 1942
Economic Affairs
Rubber and AVorld Economy.
Article by William T. Phillips
ILO : 98th Session of Governing Body
FAG : Sijecial Meeting on Urgent Food Problems :
Statement by the President
Excerpts from Statement by the Director-General . . .
Allied-Swiss Negotiations : Agreement of French, British,
and U. S. Delegations With the Swiss Delegation . .
Appointment of U. S. Representative for Negotiations on
German External Assets
UNRRA Mission to Turkey
The United Nations
Regional Arrangements and the United Nations.
Article by Ward P. Allen
The Security Council :
Soviet-Iranian Matter. Letters From the Iranian Am-
bassador
Provisional Rules of Procedure of the Security Council .
International Organizations and Conferences
Calendar of Meetings
Activities and Developments
The Department
The Russell Plan for the Organization of Positive Intelli-
gence Research
Transfer of Lend-Lease EMnctions
Addresses and Statements of the Week
Appointment of OflScers
Resignation of Stokeley W. Morgan
Departmental Regulations
The Foreign Service
Confirmation
Publications
Foreign Commerce Weekly
Treaty Information
Prosecution of War Criminals
Invalidity of Commercial Agreements: Czechoslovakia . .
Anglo-Siamese Peace Treaty
Soviet-Mongolian Treaty and Agreement
(Continued on page 972)
946
94>J
950
955
956
957
958
93'J
93?
94^
948.
94^
95-'^
96i'
0i(3
941
942
(■ '
4^
I
928
959
967
969
969
969
971
954
960
963
Regional Arrancrements and the United Nations
Article by WARD P. ALLEN
Coexistent with the development of the concept
of the modern nation state as the highest mani-
festation of sovereign policy organization, the
idea of an even wider organization of which the
Slates themselves would be component parts began
tf) manifest itself. Based on racial and cultural
'Similarities and a concomitant geogi'aphical
proximitj', these interstate arrangements were
naturally regional in character. Where the at-
tracting forces were great and the still growing
concept of national sovereigiity not too firmly im-
bedded, these regional arrangements became the
tLprerunner of closer organization which resulted
ill union.
The Germanic Confederation of thirty-eight
Central European States and free cities, estab-
lifhed by the Congress of Vienna in 1815, is an
example. Although it was formally dissolved in
1866 by Prussia as a part of its struggle for
supremacy with Austria, this regional system was
t]ie working political organization which held the
^r'ies of central Europe together and constituted
tW, basis upon which, after the exclusion of
Austria, the modern Germanic state was created.
The inter- American system, on the other hand,
whose beginning as a grouping of Spanish Amer-
ican states may be traced back to 1820, has evolved
more slowly and, for sound historical reasons, not
on the basis of an all-embracing constitution, but
ratlier by the gradual accumulation of traditions,
the creation of a complex of specific agencies and
institutions, and the effect of the resolutions,
treaties, and conventions of inter-American as-
semblies.
Brief mention of some of the modern tendencies
toward the development of regional or subregional
systems in other geographical areas may provide
a setting for the subsequent consideration of the
problems of the United Nations Charter.
The Covenant of the League of Nations gave
wide latitude to the establishment of regional
arrangements by providing in Article 21 that
"Nothing in this Covenant shall be deemed to
affect the validity of international engagements,
such as treaties of arbitration or regional under-
standings like the Monroe doctrine, for securing
the maintenance of peace."
Thus there was virtuallj' complete freedom for
the operation of almost any type of regional
arrangement.
AVith respect to the European region as a whole,
the idea of a general European federation, stimu-
lated particularly during the inter-war period by
the proposals of M. Briand to the League Assem-
bly in 1929, resulted in the establishment by the
League of a "Commission of Inquiry for European
Union" composed of the European members.
However, little concrete action emerged from its
discussions. At the present time the idea appears
again to be gaining some currency.
Within Europe one of the outstanding examples
of regionalism following the first World War was
the Little Entente. Composed of Czechoslovakia,
Yugoslavia, and Rumania and created shortly
after the conclusion of the war, it grew out of a
series of bilateral mutual assistance treaties
among the three countries. It gradually devel-
oped into a broader political organization and,
after 1933, came to approximate a close diplo-
matic confederation with definite organizational
structure. The Entente played a significant role
in helping to stabilize conditions in Central
Europe.
The five Balkan countries and Turkey, despite
the differences among them, have exhibited sig-
Mr. Allen is a Specialist on International Organiza-
tion Affairs in tlie Division of International Organiza-
tion Affairs, Office of Special Political Affairs, Depart-
ment of State. Mr. Allen served on Committee IV of
Commission III on Regional Arrangements at the San
Francisco conference.
923
Q24
DEPARTMENT OF STATE BULLETIN
nificant tendencies toward close economic collab-
oration and political understanding as bases for
the formation of a regional system. The four
Balkan conferences of rei^resentatives of these
states (1930-32), although semi-official in char-
acter, did much to pave the way toward Balkan
union along jDolitical, social, and economic lines
and created or stimulated the establishment of a
number of organizations and commissions. The
Balkan Entente (Yugoslavia, Rumania, Greece,
Turkey) created by the pact of 1934, although not
realizing the broader aims toward which the
conferences had been working, was an effort at
regional security within the Balkan area, later
supplemented by agreements to give organiza-
tional structure to the Entente.
With regard to eastern Europe in general, al-
though in 1942 attempts through agreements be-
tween Poland and Czechoslovakia and between
Greece and Yugoslavia to work toward groupings
of small states did not meet with success, a broader
regional grouping of the nations of eastern Europe
under the leadership of the U. S. S. R. is gradually
but effectively evolving through a series of bilateral
arrangements and agreements. The possibility of
a closer union of the Baltic states — Denmark, Nor-
way, Sweden, Finland, Latvia. Lithuania, and
Esthonia — led to a series of confeiences of repre-
sentatives of these states, beginning in 1920 in
Helsinki, Riga, and other capitals, l)ut the efforts
proved unproductive. Again in 1938-39 Finland
and Sweden proposed a limited defensive alliance
with Norway and Denmark, but the arrangement
was not completed. As recently as February 1940
an article in the Soviet publication Pravda stated
that certain interests were agitating for the for-
mation of a "Northern Bloc" which presumably
would include Sweden, Norway, Denmark, and
Finland. Concern was expressed in the article
that the proposed bloc might also include "a recon-
structed Germany."
The idea of a closer union of the western Euro-
pean states is at the present time enjoying certain
advocacy. As set forth by Leon Blum, in Septem-
ber 1945, such an arrangement would have an
Anglo-French alliance as its basis and would in-
clude the "democratic" states of northern and
western Europe as well as "futuie i-epublics" of
Italy and Spain.
In the Near East a recent and highly significant
development in regional ari'angements is the crea-
tion of the League of Arab States composed of
Syria, the Transjordan, Iraq, Saudi-Arabia, Leb-
anon, Egypt, and Yemen. It was given formal
existence upon the signing of the pact of the
League of Arab States at Cairo, on March 22, 1945,
as a I'esult of a series of preliminary meetings
stinuilated bj' war conditions and special problems
arising in that area. The constituent states have
made full use of this League as a vehicle for com-
mon action in the Palestine situation.
In the Far East, the Japanese attempt to create
a "Co-prosperity Sphere", although based on sup-
pression and conquest and ruthless domination by
one power, constituted, nevertheless, an attempt to
form a regional system.
There have likewise been various moves toward
what may be termed "sub-regional" groupings.
The proposal for a union of the states of Centra^
America and for the closer association of the Boli-
varian countries (Venezuela, Colombia, and Ecua-
dor) are examples within the inter-American field.
The British Commonwealth of Nations, in
which the Dominions are free and sovereign al^
though closely associated nations, is not a "rei
gional system" within any definition involving-
geographical limitations, but is, nevertheless, a
special groupment of states which share in com-
mon with the regional arrangements mentioned
a somewhat similar status in terms of relationshiip
with a world organization. There have been in
the i)ast few years a number of semi-official and
non-official suggestions for a closer association of
the United States with the United Kingdom an(|
the other nations of the Commonwealth whic^li
would convert this association into an Angf.y-
Saxon group. Mr. Winston Churchill's plea 'to
this effect in his Fulton, Missouri, speech on March
5, 1946 brought this issue sharply to the fore.
In addition to all of these developments which
in general envisage arrangements involving po-
litical, security, economic, social, and cultural col-
laboiation in varying degrees and in most cases a
definite organizational structure, there are like-
wise existing or proposed arrangements, often
regional in character, for more limited military
and security purposes. They may in some in-
stances be the precursors of broader, regional sys-
tems; but they do not necessarih' rest upon the
same ethnic or cultural bases or the same consider-
ations of geograjihical proximity as the latter.
The present Russo-British ti-eaty of May 26, 1942,
the Franco-Russian treaty of December 10, 1944,
and tlie Sino-Kiissian treatv of August 14, 1945
JUNE 2, 1946
925
are, together with similar treaties between Eussia
and Czechoslovakia, F'oland, and Yugoslavia, per-
haps the most outstanding examples of this more
limited arrangement. That these bilateral agree-
ments between the U.S.S.R. and various states of
east-central Europe may be the skeleton for a more
extensive network of alliances which would de-
velop into a regional system is indicated by the
conclusion of a Yugoslav -Polish Alliance on May
18, 1946 and a Czechoslovak- Yugoslav treaty of
friendshiji ori May 9, 19-1:6. These agreements,
reminiscent of the beginnings of the Little En-
tente, may be significant indications of the future
jiattern of development in this area.
II
The significance of all such regional and special
associations of nations and of the forces mani-
fested by the tendencies toward these regional
groupings have been intensified and sharpened by
the creation of the new world organization. The
establishment of the United Nations has required
a consideration of all regional arrangements in the
light of the role which the Charter provides for
them and their appraisal from the point of view
of consistency with its terms.
The framers of the Dumbarton Oaks Proposals
and of the Charter were confronted with a funda-
mental decision in determining the extent to which
the world organization should be erected upon the
basis of regional federations. There were many
^id prominent advocates, both in this country
ajid abroad, of the view that such semi-autonomous
gioups of states would provide the soundest
foundation for the organization. It was urged
that a pyramiding of authority, leading from the
nation to the regional organization, with the
world organization concerning itself only with
inter-regional affairs, was the only consistent and
practicable method to give full representation and
protection to the interests of the smaller nations,
to avoid burdening the general organization with
local controversies and situations more easily
solved within the region, and to lessen economic
rivalry and encourage constnictive economic and
financial policies among the states in each area.
The decision on this basic issue was made early.
It was agreed that the organization must be a
world unity of individual states and not an asso-
ciation of regional federations.
This basic pattern is reflected in the Dumbarton
Oaks Proposals, particularly in Chapter VIII,
Section C. This section, although not seeking
affirmatively to promote regional arrangements,
stated that nothing in the proposed Charter
should preclude their existence for dealing with
appropriate matters relating to international
security, "provided such arrangements or agencies
and their activities are consistent with the pur-
poses and principles of the Organization."
With this as a frame of reference the problem
was carried to the San Francisco conference where
the relationship between regional and world sys-
tems became one of the most delicate of the con-
ference issues.
It is, of course, impossible to seek to analyze any
nnijor Charter provision in isolation or on the ex-
clusive basis of a particular set of interests, so
complex are the factors motivating the positions
of the various countries and so interrelated are
the provisions of the Charter. At the San Fran-
cisco conference, however, the approach of the
vai-ious countries to the problem of regional ar-
rangements may be said to have been conditioned
in part by one or another of five points of view, all
of which operated in favor of varying degrees of
autonomy for regional or other limited arrange-
ments within the general framework of the United
Nations :
1. The desire of the American republics to safe-
guard the inter-American sy.stem;
2. The similar feeling on the part of the states
of the Arab League, for whom Egypt acted as
spokesman, that the state of that League be pre-
served ;
?>. The wish of the U.S.S.R. to except fi-om any
restrictive control under the Charter the system of
bilateral mutual assistance pacts;
4. France's concern over possible renewal of
German aggression, leading her to seek freedom
of action against ex-enemy states without the
necessity of awaiting prior action by the Security
Council ;
5. The general uneasiness of the small states
over the power granted the Security Council in
the light of the Yalta voting formula.
These factors are, of course, reflections of cer-
tain of the regional developments referred to in
Part I. Notably absent from the picture were the
points of view of the Balkan and Baltic states not
represented at the conference, whose previous
926
DEPARTMENT OF STATE BULLETIN
tendencies toward regionalism have been particu-
larly noteworthy.
These five factors manifested themselves in a
variety of ways in the amendments offered to this
portion of the Dumbarton Oaks Proposals. Eight
of the American republics proposed that the
inter-American system be specifically mentioned
and approved in the Charter. Seven suggested
that the right of Security Council intervention in
the settlement of regional disputes be limited to
cases where all regional measures had been at-
tempted and had failed or wliere the regional
group itself requested Council action.
The Egyptian delegation introduced a series of
amendments to limit the term regional arrange-
vient by definition to a grouping of several coun-
tries in a given geographical area which, by reason
of community of interests or historical or other
affinity, make themselves jointly responsible for
the maintenance of peace and security within the
region, for the safeguarding of their interests, and
for the development of their economic and cultural
relations.
The four sponsoring powers (China, United
Kingdom, Union of Soviet Socialist Kepublics,
and United States) proposed as an amendment the
language finally incorporated into Article 53 of
the Charter to the effect that regional or other
joint action should be permitted without prior
authorization from the Security Coimcil in the
case of measures to prevent renewed aggression by
the enemy states in the then present war, until
responsibility therefor should be transferred to
the United Nations by the governments concerned.
This was similar to an amendment first separately
presented by France which, proposed, in addition,
a provision to the effect that authorization slioidd
not be required for measures of an urgent nature
provided for in treaties of assistance of which the
Security Council has been advised, subject, how-
ever, to an obligation to give an account to the
Council of the measures taken.
A precursor of the provisions of Article 51 was
offered by the Australian delegation which pro-
posed that measures, regional or otherwise, taken
in self-defense should become permissible in case
of an emergency if the Security Council failed
either to authorize such action or to take action
itself.
Illustrative of the interrelation between the
' Italics are the autlmr's.
problems of regional arrangements and the issue
of the provisions on voting in the Security Council
were amendments offered by Australia, Belgium,
and Venezuela proposing that special voting rules
be adopted for decisions of the Council regarding
enforcement action by regional arrangements.
These and other i^roi^osals and suggestions, sim-
ilar in character and based on similar considera-
tions, are reflected in varying degrees in the final
provisions of the Charter.
Ill
The final language of the Charter adds to the
basic approach of the Dumbarton Oaks Proposals
two significant provisions which allow both eni-
forcement or punitive action and preventive mea?l-
ures to be taken by regional agencies or other col-
lective arrangements without the authorization of
the Security Council, under defined circumstances.
Articles '.^',^ and 51 to 5-1, which set forth the re-
lationship of such agencies and arrangements to
the world organization in the security field, in
conjunction with other pertinent provisions of the
Charter, may be summarized as follows :
1. In general, nothing in the Cliarter "pre-
cludes the existence of regional arrangements or
agencies for dealing with such matters relating to
the maintenance of international peace and secu-
rity as are appropriate for regional action, pro-
vided that such arrangements or agencies and
their activities are consistent with tlie Purpose^',
and Principles of the United Nations." (Art. 52,
par. 1.)
2. With respect to the pacific settlement of dis-
putes,^ the Charter imposes upon the members
of regional arrangements or agencies the obliga-
tion to "make every effort to achieve pacific settle-
ment of local disputes" through such institutions
before referring them to the Security Council
(Art. 52, par. 2). This is reinforced by a similar
injunction upon ''The parties to any dispute, the
continuance of which is likely to endanger the
maintenance of international peace and security"
to seek first of all a solution for peaceful means
of their own choice, including "resort to regional
agencies or arrangements" (Art. 33, par. 1). The
obligation is laid upon the Scmirity C'ounciJ to
"encourage the development of pacific settlement
of local disputes" through such regional arrange-
ments or agencies (Art. 52, par. 3) , and the Council
"shall, when it deems necessary, call upon the
JUI^/E 2, 1946
927
parties to settle" a specific dispute by peaceful
means of their own choice, including regional ar-
rangements (Art. 33, par. 2).
3. Beyond the realm of peaceful measures, the
power of the regional system to take action in case
of threats to or breaches of the peace or acts of
aggression is at the same time both greater and
less than its authority in the case of pacific settle-
ment. The Security Council is directed to utilize
regional arrangements or agencies for carrying
out enforcement measures. But the authorization
of the Council is required before measures which
may be deemed "enforcement action" may be taken
under regional arrangements or regional agencies
(Art. 53, par. 1).
There are, however, two important exceptions
to the above rule: one depending upon the state
against which action is taken and the other upon
the nature of the aggression against which action
is sought. Authorization is not necessary if the
measures, whatever their nature, are to be taken
against any ex-enemy state of the second World
War, either as provided for pursuant to Article
107 ^ or in accordance with "regional arrange-
ments directed against renewal of aggressive policy
on the part of any such state". (Art. 53, par. 1.)
This exception ceases to exist only after the or-
ganization itself, "on request of the Governments
concerned," is "charged with the responsibility
for preventing further aggression by such a state".
(Art. 53, par. 1.)
The second exception becomes operative if the
lireach of the peace or act of aggression takes the
form of "an armed attack". Article 51 provides
that nothing in the Charter "shall impair the
inherent right of individual or collective self-
defense if an armed attack occurs against a Mem-
ber of the United Nations, until the Security
Council has taken the measures necessary to main-
tain international peace and security."
4. These two exceptions, granting or recog-
nizing the right to take action outside the machin-
ery of the organization, do not refer exclusively
to regional systems as does Article 52 concerning
pacific settlement. The exception relating to
■ ''Nothing in the present Charter shall Invalidate or
preclude action, in relation to any state which during the
Second World War has been an enemy of any signatory to
the present Charter, taken or authorized as a result of that
war by the Governments having responsibility for such
action."
measures against ex-enemy states encompasses as
well action pursuant to agreements among the
Allied Powers arising out of the war, such as the
Franco-Russian Mutual Alliance Treaty. The
exception of the right of "individual or collective
self-defense" similarly M-ould include such a col-
lective arrangement as is represented by the
British Commonwealth of Nations.
5. However, the Charter makes it equally clear,
that while the region may be expected to be the
normal theater for the pacific settlement of at
least "local" disputes, while regional agencies will
be looked to in an important way in resolving such
controversies by peaceful methods, and while
Security Coxmcil authorization is not always nec-
essary for enforcement action, nevertheless, the
rights of the Security Council to take action at
any time regarding any dispute remain unim-
jDaired. These include the right of investigation
(Art. 34) and of recommending "at any stage of a
dispute" "appropriate procedures or methods of
adjustment" taking into account any procedures
adopted by the parties (Art. 36).
In the second place, the existence or functioning
of regional arrangements or agencies does not
operate to prevent a member state from bringing
any situation which might lead to international
friction to the attention of the Security Council or
the General Assembly (Art. 35) . (Indeed Article
62 specifically states that it in no way impairs the
application of Articles 34 and 35).
Thirdlj^, the right of the General Assembly to
discuss and make recommendations concerning
any matter relating to the maintenance of inter-
national peace and security (Art. 11) is not con-
tingent upon action by regional agencies.
These various provisions establish the pattern
for the integration of regional and other collec-
tive arrangements in the security field with the
general system of international security. How-
ever, the scope of certain terms such as "regional
arrangements of agencies" and "enforcement ac-
tion" is not explicitly set forth. In the case of an
armed attack, the integration of regional forces
already in operation with those operating under
the authority of the Security Council will have to
be worked out. Only by the implementation of
these provisions and their application to specific
situations will their precise limitations and im-
plications become clear.
(Continued on i>nf>c 959)
928
DEPARTMENT OF STATE BULLETIN
The Russell Plan for the Organization of Positive
Intelligence Research in the Department of State
I. Basic Philosophy
On April 22, 1946 the Secretary of State issued
a series of regulations activating the Russell Plan '
for the organization for research and intelligence
in the Department of State.- In principle, the
plan is simple. Organizationally, it is predicated
in the fact that the Department of State is set up
on a geographic basis.
The political policy finally formulated, however,
with respect to a given coimtry or area must in-
clude considerations of an economic, military,
sociological, and even domestic character. Al-
though policy, in the last analysis, must be ac-
comjjlished on a geographic basis by the geographic
offices as line or operating units, the analysis and
evaluation of non-political or functional compo-
nents of foreign policy are correlated through the
offices under the jurisdiction of the Assistant Sec-
retary for economic affairs and the Assistant Sec-
retary for public affairs.^ In performance of this
function, these two offices operate as staff agencies.
Intelligence research to be most useful must be
integrated into this general organization. It must
be organized so as to serve the geographic offices in
a "staff" capacity but at the same time serve the
other "staff" echelons of the Department under the
Assistant Secretaries for economic affairs and
public affairs.
All research carried on must fit into a balanced
departmental program of positive intelligence that
is related to authoritatively determined intelli-
gence requirements and objectives.
" Program planned by Donald S. Russell, Assistant Sec-
retary for administration.
' Bm^UETiN of May 12, 1946, p. 826.
° Exceptions to this principle of organization are found
in the Office of Special Political Affairs and Otiice of the
Assistant Secretary for occupied areas, where, because
of the prospective military and multilateral relations in-
volved, a special service organization is required.
' Btn-LETiN of Feb. 3, 1946, p. 174.
II. Organizational Objectives
The forthcoming regulations are intended to
accomplish certain basic objectives:
1. To establish the Special Assistant for Re-
search and Intelligence as the "staff arm" of the
Secretary in the formulation and implementation
of the Department's internal and interdepart-
mental programs of positive foreign intelligence.
2. To establish under the Special Assistant for
Research and Intelligence an Advisory Committee
on Intelligence which will through a strong sub-
committee formulate a departmental progi-am of
intelligence research and assign project priorities.
3. To build up within each geographic office a
Research Division which will provide strong re-
search facilities at the point where political deci-
sions are made or action is taken.
4. To build up as an office under the Special As-
sistant for Research and Intelligence a strong
central coordination and liaison group which in
order to implement the decisions of the subcom-
mittee will —
(a) coordinate, monitor, and review all depart-
mental research studies initiated anywhere in t^e
Department ;
(b) undertake such special research studies as
may be required;
(c) be responsible for carrying out those duties
assigned to it by the Special Assistant for Research
and Intelligence with relation to the National In-
telligence Authority * and anj' other Government
agency concerned with the field of positive intelli-
gence.
5. To establish as an office under the Special As-
sistant for Research and Intelligence a central
group for the collection and dissemination of posi-
tive intelligence data and materials.
III. Organizational Pattern
7. The Geographic Offices
Under the plan a Division of Research is at-
tached to each geographic office. This is a self-
IVNE 2, 1946
929
contained, non-operating "staff" unit at the office
level, under its own chief who reports and is re-
sponsible to the director of the geographic office.
The chief of the Research Division is responsible
to the office director for the research program of
the office and for the due accomplishment of the
segment of the departmental research program as-
signied to the office by the Advisory Committee on
Intelligence, through its Subcommittee on Pro-
grams and Priorities. The chief of the Division of
Reseaich should be the representative of the office
director on the Subcommittee on Programs and
Priorities. Though the chief of the Division of
Research reports to the office director, he and
his staff are expected to maintain the closest tech-
nical liaison on all matters of research with the
Office of Intelligence Coordination and Liaison
and other research units of the Department.
The purjjose of establishing strong research
units in the geographic offices is twofold: to pro-
vide balanced research facilities at the points where
political policy is made or action taken; and to
make the intelligence operation sensitive to, yet
independent of, the policy-determining political
divisions. In this manner, the office director is pro-
vided with an automatic system of checks and bal-
ances as between his "staff" or research division and
his ''line'" or policy divisions.
3. The Advisory Committee on hiteUigence {AC I)
The Russell Plan calls for the establishment of
an Advisory C(mimittee on Intelligence composed
of the Assistant Secretaries for political affairs and
the Assistant Secretary for administration, under
the chairmanship of the Special Assistant for Re-
search and Intelligence. It is expected that this
committee will meet only to consider matters of
broad general policy in the field of positive in-
telligence. It will, however, have a working sub-
committee with representation from the geo-
graphic and other appropriate offices of the De-
partment. The job of the working subcommittee
will be to formulate a balanced departmental pro-
gram of research and to assign such priorities as
will assure the optimum utilization of all depart-
mental research resources so that departmental and
interdepartmental intelligence requirements are as-
sessed and fulfilled on the basis of essentiality and
relative urgency.
The necessity for a working group of this charac-
ter, which must be staffed by a strong secretariat,
is illustrated by a partial listing of research con-
sumers whose competing requests for service will
have to be evaluated and phased :
Geographic Offices
Economic Offices
Information and Cultural Offices
Special Political Affairs
Occupied Areas
National Intelligence Authority
Military Intelligence Agencies
(Military Intelligence Service
(MIS), Office of Naval Intel-
ligence (ONI), Joint Intelli-
gence Committee (JIC), etc.)
To accomplish its mission effectively, the sub-
connnittee of the ACI, that is the Subcommittee on
Programs and Priorities, nuist be a responsible
group, representative of the Department as a whole,
each member of which must be authorized to speak
for and bind his office. Each member of the sub-
committee must be acceptable to the Special As-
sistant for Research and Intelligence.
3. The Speci-al Assistant for Research and In-
telligence
The Special Assistant is the principal adviser
to the Secretary with respect to all matters of
positive intelligence. The ACI and its subcom-
mittee are his consultative and advisory instru-
ments for the formulation, planning, and phasing
of the Department's research-intelligence program.
Although the Special Assistant exercises direct
"line" authority only over his own staff and the
offices immediately under his jurisdiction (OCL
and OCD), he has effective technical supervision
over the Department's research program through
the programming and priorities functions of
ACI.
4. Office of Intelligence Coordination and Liaison
{OCL)
The mission of OCL is vital to the success of
the Russell Plan. It is expected, inter alia —
(a) to provide a permanent secretariat for the
ACI and its subcommittee;
{h) to function, at the technical level, as the
instrument for coordinating and correlating
intelligence research in accordance with the pro-
grams formulated by the ACI and its subcom-
mittee, for example by administering research
priorities assigned in such programs and by ap-
plying in editorial review the research standard
formulated by the ACI and its subcommittee;
930
(c) to operate as the center for distribution
of research papers produced in the Research Divi-
sions, so as to secure the maximum utilization
compatible with security ;
(d) to conduct specialized research on technical
matters not within the cognizance of other re-
search units; to organize and supervise coopera-
tive research projects cutting across geographic
and economic lines; to undertake such special
studies as may be required of it by the Special
Assistant for Research and Intelligence;
(e) to participate, as directed by the Special
Assistant for Research and Intelligence, in the
Department's relations with the Central Intelli-
gence Group of the National Intelligence Author-
ity (NIA) and other Government agencies in the
field of positive intelligence.
As the liaison group of the Department with
the Central Intelligence Group of the NIA and
as the secretariat of ACI and its subcommittee,
OCL is in a key position to coordinate the execu-
tion of the research program in its departmental
and interdepartmental aspects. Because of this
organizational vantage-point, it is in a position
to provide ACI and its subcommittee with in-
foi-med recommendations to guide its formulation
of the research program or the assignment of
priorities. It will be in a unique position to pro-
vide invaluable assistance to other research units
of the Department with respect to the initiation,
feasibility, or status of research projects.
5. Office of InteMgence Collection and Dissemina-
tion {OCD)
The functions of OCD are —
(a) to procure for the Department intelligence
materials through various channels;
(6) to maintain files of intelligence materials
for reference use by all offices of the Department ;
(c) to collect factual information and opinions
on important individuals in foreign countries
whose activities or views are important in de-
termining and implementing foreign policy and
to maintain files of such material for use by all
offices of the Department ;
{d) to acquire and allocate to various govern-
mental agencies foreign publications received
through the Foreign Service establishment;
" Office of the Assistant Secretary of State, Mr. Benton ;
Office of the Assistant Secretary of State, Mr. Clayton;
Office of Special Political Affairs.
DEPARTMENT OF STATE BULLETIN
(e) to prepare visual materials such as charts,
freehand illustrations, and mechanical drawings
for all offices of the Department.
IV, The Plan in Operation
As soon as the ACI or its Subcommittee on Pro-
grams and Priorities establishes a basic research
program for the Department and makes assign-
ments thereunder, the intelligence operation will
be on a current basis and every research project
can be evaltiable with respect to its importance and
relative urgency.
1. Clearance of Projects
All projects to be undertaken by the Research
Divisions, by OCL, or by other units of the De-
partment except the Division of Research and
Publication must be cleared through the program
and priority mechanism. Several channels will
be available, depending upon the origin of the
project proposal. In the case of the geographic
offices, the office director will send to the project
unit of OCL any project proposal approved by
him or, if he so authorizes, by his Research Divi-
sion chief. If the project falls within the frame-
work of the over-all departmental program tliis
unit may immediately agree to the propriety and
feasibility of the proposal and give clearance; in
case of doubt the unit would consult with the di-
rector or his chief of research. If no agreement
can be reached, the OCL project unit will present
the case at the next session of the Subcommittee
on Programs and Priorities (on which the initiat-
ing office would be represented) for decision.
Other offices of the Department such as A-B,
A-C, or SPA = will submit projects to the project
unit of OCL directly or through the channel of the
geographic offices when prior conversations with
them make it appropriate. These offices will be
represented on the Subcommittee on Programs
and Priorities, will have access to the project
unit of OCL directly, and will have access to the
research facilities of the geographic Research Divi-
sions, OCL, and OCD in accordance with the
general program and priorities established by
ACI or the Subcommittee on Programs and
Priorities.
If requestors from outside the Department de-
sire the Department to undertake research on their
behalf they will send proposals to OCL through
JUNE 2, 1946
931
established liaison channels. The project unit of
OCL will then submit the proposal before clearance
to the appropriate office of the Department for an
opinion as to feasibility in relation to work load
and to the office program.
2. M oMlization of Resources .
A useful feature of the clearing process is that
the ACI and OCL, being familiar with all re-
sources of the research staffs, will be able to ar-
range joint action of various research units upon
appropriate projects, thus in effect adding to the
resources at the service of any one office. When
necessary, tlie_y can negotiate with office dii'ectors
for the formation of interoffice research teams for
temporary action on specific projects. The De-
partment in this \\&y will make the most effective
use of expert personnel no matter where the in-
dividuals may be located.
3. Project Lists
Further advantages flow from this centralized
clearing procedure. It will be possible for the
OCL to issue a list of projects actually under M'ay
and thus at once inform all parts of the Depart-
ment about forthcoming work, always recognizing
that producing units may for security reasons wish
to limit such advertising of certain projects.
Thereby the attention of various offices will be
called to studies which may be of use to them, and
dui^lication will be largely eliminated. While
scanning a project, the staff can also prepare a
proposed distribution list for the anticipated re-
port which, if agreed to by the producing office,
will facilitate rapid dissemination of the report
when it is finished. The balance of maximum
utilization with security considerations will be
further guaranteed by locating in OCL the center
for physical distribution of research studies.
4. Standards
Another concern of ACI, for the benefit both of
the Department and of its "customers", is to main-
tain the quality and standardize the form of in-
telligence-research reports. For this purpose, ACI
or its Subcommittee on Programs and Priorities
will establish standards and expect OCL to ex-
amine all finished drafts before they are repro-
duced, to insure adherence to those standards.
Only such editorial review can assure the continu-
ous application of sound scholarship and critical
method throughout the intelligence organization.
Actual procedures would parallel closely those of
preliminary project clearance, with the same
mechanism for reference to office directors or to
the ACI in cases of disagreement.
In this fashion the ACI and OCL staff, in col-
laboration with the office directors and their Di-
visions of Reseaich, will formulate a coordinated
program of intelligence research. It will accom-
plish that program through the mechanism of
priorities; it will facilitate production by organ-
izing task groups where necessary ; it will maintain
quality in the product by fixing standards and ex-
ercising editorial review; it will assist in making
the product effective by furnishing regular project
reports and by proposing and effecting dissemi-
nation of studies.
V. Activating the Plan
It is essential that the plan be put into effect
promjjtly. Subject to availability of funds for the
fiscal year of 1947 this appears readily feasible
with the exception of the transfer of the geographic
divisions of the old Office of Research and Intelli-
gence (ORI) to the appropriate geographic offices
of the Department. The controlling factors here
are availability of space and the necessity of pre-
serving these research groups as functioning units
until the geographic offices are in a position to ac-
complish organizational integration as called for
by the plan.
To i^rovide flexibility during the transitional
period, the phasing of the transfer is to be de-
termined by the Assistant Secretary for admini-
stration in the best interests of the Department of
State as a whole.
Pkoceduke on Typical Ekojects
1. Project Initiated in a Geographic or Research Division
(e. g. The Oouin Cabinet — samiile of a fairly routine
project)
(/. Project initiation
(1) Project outlined by appropriate operatiivg division
cliief.
(2) Project discussed witli eliief of Research Division
and cleared by office director, with tentative dis-
tribution list.
(3) Project cleared by OCL coordination staff, which
recommends and arranges with the ofiBce for its
collaboration with Biographical Intelligence Divi-
sion of OCD.
(4) Distribution list discu.ssed if necessary between
OCL and office.
(Continued on paijc fl}5)
932
DEPARTMENT OF STATE BULLETIN
Rubber and World Economy
Article by WILLIAM T. PHILLIPS '
THE IMPORTANCE of rubber to the world econ-
omy is evidenced Ijj^ the dependence of
motor transport and aviation upon this commod-
ity. Eubber consumption has increased remark-
ably the world over. From 1917 when world rub-
ber consumption first passed 200,000 tons to 1939
when world consumption reached 1,108,000 tons,
the increase has been almost continuous except
during the periods of depressed business condi-
tions. From 1914 to 1925 the United States con-
sumed approximately two thirds of the world rub-
ber. This proportion, however, declined to about
50 percent during the immediate pre-war years as
foreign consumption rapidly increased. The de-
clining proportion of rubber consinned by the
United States is attributable, in part, to the estab-
lishment by United States rubber manufacturers
of foreign manufacturing plants with a conse-
quent reduction in exports of finished rubber
products.
With the outbreak of war in Europe in 1939, it
became apparent that the conflagration might
spread and the natural rubber-producing areas of
the Far East might be lost. Consequently, in-
dustry and government spokesmen early in 1940
began active advocacy of a government-financed
synthetic I'ubber program as a military security
measure. The complexity of the synthetic rubber
program and the conflicting interests of various
patentees led to i^rotracted preliminary negotia-
tions. The first definite agreement regarding the
establishment of a government synthetic rubber
program was reached on May 15, 1941 when the
Reconstruction Finance Corporation entered into
a contract with four rubber companies for the con-
struction and operation of copolymer plants (syn-
thetic rubber plants). Each plant was designed
for an initial annual capacity of 2,500 long tons,
which, however, was expandable to 10,000 tons
each. On July 3, 1941 the Rubber Reserve Com-
' Mr. Phillips is special assistant to the Chief, Interna-
tional Resources Division, OflBce of International Trade
Policy, Department of State.
Y>any authorized the expansion of these four
plants to 10,000 tons each. Facilities for the pro-
duction of the butadiene and styrene (materials
for making synthetic rubber) necessary for the
opei'ation of tliese expanded plants were also au-
thorized.
During 1941 the natural rubber stockpiling
program and the rubber-cotton barter agreement
brought rapid increases in United States natural
rubber stocks (from 125,000 tons at the end of
1939 to 533,344 tons at the end of 1941). The
progress of the Japanese in the Pacific quickly
indicated the urgency of providing for far greater
synthetic rubber capacity; and the capacity au-
thorized in July of 1941 by the Rubber Reserve
Company was expanded, immediately after Pearl
Harbor, to a total of 120,000 tons. On January 12,
1942 plans were approved for the construction of
additional plants to bring total United States
capacity up to 400,000 tons of general purpose
synthetic rubber, known as GR-S, and shortly
thereafter increased to a 600,000 tons annual
capacity.
Following the fall of Singapore and the Nether-
lands East Indies, a program was formulated
which provided for 877,000 long tons of synthetic
rubber a year including 705,000 tons of GR-S,
132,000 tons of butyl, and 40,000 tons of neoprene.
The recommendations of the Rubber Survey
Committee, appointed in August 1942 and headed
by Bernard Baruch, resulted in the freezing of
synthetic rubber production into the established
processes. Protluction of all types of synthetic
rubber during the year ending December 31, 1945,
approximated 820,000 long tons.
Tlie establishment of this tremendous synthetic
rubber industry within the United States, coupled
with the potentialities for rubber production in
the Far Eastern natural rubber-producing areas,
provided a situation of considerable concern to
the Department of State due primarily to the
serious surplus rubber situation which threatened
to develop during the post-war 3'ears. In order
JUNE 2, 1946
933
more ailequately to appraise the rubber situation
aiul to assist the Department in the formuUition
of rubber policy, an announcement was made in
June 1!)44 tliat a Rubber Advisory Panel had
been formed.- This panel, composed of leaders of
the rubber manufacturing industry and govern-
ment officials most intimately concerned with
rubber atlairs, was designed to provide a forum
from which the Department could obtain factual
information and the individual opinions of panel
membei-s on rubber matters of an international
character.
Concurrent with the establishment of the Rub-
ber Advisory Panel of the State Department the
Governments of the Netherlands and the United
Kingdom expressed to the United States Govern-
ment concern regarding the potential post-war
rubber situation, since they had produced 95 per-
cent of the world's supply of natural rubber
during pre-war years. In order to explore the
possible post-war rubber situation, arrangements
were made by the three Governments to hold
exploratory rubber talks in London during early
August 1944. At this meeting the representatives
of the participating Governments — United King-
dom, Netherlands, and United States — attempted
to forecast the probable post-war rubber supply-
demand situation. It became immediately ap-
parent during the course of this meeting that none
of the three Governments had available adequate
information. The participants therefore agreed
to recommend to their Governments that more
detailed analyses be made and that periodic meet-
ings be held in order that the three Governments
might have the advantage of the information and
advice of one another regarding problenis of
mutual concern.
Consequently on September 21, 1944, by means
of simultaneous press releases, the three Govern-
ments announced that they were prepared to par-
ticipate in a Rubber Study Group. This group
operating on a completely informal basis had the
following terms of reference :
1. To meet from time to time to discuss com-
mon problems arising from the production, manu-
facture, or use of rubber (crude, synthetic, and
reclaimed) ;
2. To initiate studies which bear on these com-
mon problems;
3. To examine these and other relevant studies,
and to consider and suggest possible solutions.
The group, as such, was not authorized to make
any recommendations; instead the members were
to report severally to their Governments. Each
Government would then have the advantage of all
available information in arriving at unilateral
policj' decisions. Arrangements were also made to
keep other interested governments informed of
the studies made and of the results of the discus-
sions of the group. The Rubber Study Group
was to meet periodically and to function during
such period as, in the opinion of each of the par-
ticipating governments, it continued to serve the
purposciS for which it was designed.
In order to provide a means whereby the United
States could obtain the best available statistical
evidence in this country, there was established a
technical subcommittee of the Rubber Advisory
Panel composed of research people both from in-
dustry and from Government agencies. The tech-
nical subcommittee undertook an extensive survey
of post-war rubber affairs and prepared for the
Rubber Advisory Panel a document embodying
its estimates of the potential post-war rubber situ-
ation.
In January 1945 the first meeting of the newly
constituted Rubber Study Group was held in
Washington. Each of the several governments
presented to the group the fruits of its individual
studies (the document prepared by the technical
subcommittee was presented as the U. S. Delega-
tion's contribution). The Rubber Study Group
analyzed and reviewed the various documents
which had been presented and prepared a joint
document which embodied the consensus of the
three delegations. In accordance with the terms
of reference this statistical document was made
available to 34 other interested governments. The
Rubber Study Group delegates agreed on the de-
sirability of periodic reconsideration of the post-
war rubber potentialities, so that each of the mem-
ber governments might undertake its own unilat-
eral policy determinations based upon the best in-
formation available.
The principal points which emerged from this
meeting were the following:
(a) Discussion of these extensive studies re-
vealed that there was great uncertainty about the
future supply and demand, particularly the sup-
ply because of the occupation of the Far Eastern
Bulletin of Jtiiie 10. 104-1, p. 544.
934
producing territories and the donbts about condi-
tions likely to prevail after their liberation.
(h) Despite the uncertainties, however, the
group concluded that, within three to four years
after liberation, production in the natural rubber
areas of the world could, if required, reach an
annual figure in the neighborhood of 1^ million
tons; synthetic rubber production capacity being
1 to ll^ million tons annually.
(c) Taking into account consumption trends
and pi'obable future consumption of around IV2
million tons annually, the group concluded that
a marked disequilibrium between productive cap-
acity and consumption demand could develop in
the course of a few years after liberation.
Following V-J Day and the liberation of the Far
Eastern rubber producing areas including areas of
Indochina, the Rubber Study Group held a meet-
ing in order that the factors relating to natural
itubber supplies might be reappraised and the
world peacetime rubber consumption pattern ex-
amined. The Governments of the United King-
dom, United States, and Netherlands invited the
French Government to participate in this second
meeting. This invitation was accepted by the
French Govermnent. This meeting of the Rubber
Study Group, held in London during November
1945, was thus attended by representatives of the
United Kingdom, the United States, Netherlands,,
and France. The United States was particularly
anxious that a meeting be held at this time, since
the Interagency Policy Committee on Rubber has
been formed to make recommendations on United
States policy with respect to rubber affairs. It was
felt desirable to have the advantage of the latest
possible information from all sources when con-
sidering the United States position on such mat-
ters as the disposition of synthetic rubber plants,
natural rubber stockpiling, and the amount of
synthetic to continue in production and use for
purposes of national security.
The Group concluded that:
1. Stocks of natural rubber in the Far East
upon liberation would amount to some 290,000
long tons ;
2. Arrivals of natural rubber in consuming
■ areas would approximate 625,000 long tons for
1946; 920,000 long tons for 1947; and 1,320,000
long tons in 1948 ;
3. Annual rubber consumption (synthetic and
natural) was likely to be of the order of 1,500,000
long tons for the next few years ;
DEPARTMENT OF STATE BULLETIN
4. Natural rubber arrivals coupled witli poten-
tial synthetic production could result in a serious
surplus sometime after 1947.
Following the return of the U. S. representa-
tives from the November meeting of the Rubber
Study Group, the Interagency Policy Committee
on Rubber, under the chairmanship of William L.
Batt, undertook an exhaustive study of all aspects
of the rubber situation preparatorj' to the making
of recommendations on the rubber policy of the
United States. This committee, established by
John W. Snyder, Director of War Mobilization
and Reconversion, was instructed to survey plans
and programs and make recommendations on:
1. The maintenance of a synthetic rubber in-
dustry;
2. The maintenance of stand-by rubber plants;
3. The disposal of surplus rubber plants;
4. The encouragement of rubber research and
developnient ;
5. The establishment of a strategic stockpile of
rubber ;
6. The development of wild and cultivated
natural rubber in South America ;
7. The establishment and maintenance of a
mutually advantageous program for importing
natural rubber from the Far East.
After some months of investigation, research,
consultation, and hearings, the Interagency Pol-
icy Committee on Rubber presented its first report
to Mr. Snyder. The complexity of rubber affairs
and the requirement of more study on some as-
2)ects of the problem made it desirable to defer
recommendations on those aspects in which the
future seemed unclear. However, the first report,
made public March 18, 1946, included much of in-
terest to the public, to Congress, and to foreign
governments — particularly to natural rubber pro-
ducers.
The Committee's findings were divided into the
following short-run and long-run recommenda-
tions.
Sho rt- ru n Recommenda tions :
1. The synthetic rubber industry should, and
will of necessity, continue to operate at a high
level in order to supjaly the large demand for new
rubber.
2. In order to distribute natural nibber supplies
equitably throughout the world, international
pooling and allocation of natural rubber should
be continued.
JUl^E 2, 1946
3. Until ample supplies of natural rubber are
assured, all but the least efficient synthetic rubber
plants should be maintained in operation or
stand-by condition.
i. Stocks of natural rubber in the United
States should be increased in this early period in
which new supplies are likely to be uncertain, so
that adequate stocks will be available to support a
somewhat higher rate of natural rubber consump-
tion and to safeguard the national interest.
5. Government powers to allocate rubber to
manufacturers and to control specifications of
rubber products should be continued as long as the
demand for natural rubber exceeds the supply.
These powers expire on June 30, 1946, the present
termination date of the Second War Powers Act.
The powers of that act relating to rubber should
therefore be extended.
6. Consistent with natural rubber receipts and
the necessity for building up an inventory of
natural rubber, the proportions of natural rubber
permitted to be used in civilian products should
be gradually increased.
7. Manufacturers should be allotted small
amounts of natural rubber for experimental pur-
poses, since throughout the war little experimen-
tation was possible to determine the most desirable
proportions of natural and synthetic rubber to
use in a given rubber article.
8. Until such time as private enterprise assumes
the responsibility, the Government must of neces-
sity continue to own and operate sufficient syn-
thetic i-ubber facilities to meet the needs of the
domestic economy.
9. The Government should continue to sponsor
broad rubber-research programs. It should also
encourage private industry to undertake research
with private funds.
10. Some form of national rubber supervision
should be established in which all Government
agencies having responsibility in the iiibber field
would be represented. This body should coordi-
nate all governmental activities pertaining to
rubber. It should also keep the rubber situation
under continuous review in order to recommend to
the President and the Congress desirable changes
in the national rubber policy.
Long-run Recommendations :
1. There should be continuously maintained in
production and use, regardless of cost, sufficient
935
synthetic rubber capacity to meet at least one
third of our general purpose rubber requirements.
This involves a minimum consumption of general-
purpose synthetic rubber in the neighborhood of
250,000 long tons per year. The plants maintained
in production should comprise the most efficient
and low-cost facilities existing at present. Conse-
quently, the inclusion of plants using alcohol as a
raw material is not now indicated.
2. The Committee's recommendation as to the
best method of assuring a minimum use of syn-
thetic rubber will be submitted in a supplemental
report. The necessary legislation should be based
on a policy of minimum government interference
and of maximum scope for private enterprise.
3. Private ownership and operation of the syn-
thetic rubier industry should be a major objective,
if practicable. The Committee feels that this will
provide an important incentive to research and
development. In the interest of developing com-
petitive conditions in the synthetic rubber in-
dustry, it is desirable that the amount of produc-
tion capacity in private hands should exceed the
amount of guaranteed use.
4. Such efficient general-purpose synthetic rub-
ber plants as are in excess of those required for the
minimum program should, if not acquired by pri-
vate industry and available for the production of
synthetic rubber, be maintained by the government
in adequate stand-by condition. After natural
rubber is in ample supply and as long as these
plants are owned by the government, they should
not be operated except in a national rubber emer-
gency. In order to avoid complete reliance upon
IDetroleum as a raw material, at least one plant
using alcohol feedstocks should be included in the
capacity maintained in adequate stand-by condi-
tion. The total of general-purpose synthetic rub-
ber plants in operation or stand-by would ap-
proach about 600,000 long tons yearly capacity in
the light of present estimates. This total is about
60 percent of our present existing capacity.
5. Broad research programs for quality and
cost improvements in the synthetic rubber field
should be continued by government and private
industry. The Department of Agriculture should
continue experiments with the cultivation and
processing of botanic sources of natural rubber
capable of being cultivated in the United States
and tropical America.
(Continued on page 961 )
936
DEPARTMENT OF STATE BULLETIN
German Documents on Hitler's Plans
For the Future of Norway and Denmark, 1942
Foreign Office Memorandum
Berlin, February 17, 1942.
I. Minister President Quisling, who was seated
near me at dinner today at one of the ceremonies
in his honor, described to me his visit to the
Fiilirer. He had left with the Fiihrer a memoran-
dum which might also be of interest to the Foreign
Office. So that I might read it at leisure he handed
me a copy which he had with him, which is en-
closed herewith. Naturally I took no stand with
respect to Quisling's ideas, but was entirely re-
ceptive.
II. From Ministerialdirektor Kritzinger of the
Eeich Chancellory I have heard that Reich Min-
ister Lammers will take up with the Foreign Of-
fice for further attention the points raised in the
memorandum. In Reich Minister Lammers' view
the memorandum goes far beyond the bounds of
possibility. Possibly, however, a compromise so-
lution could be reached on the following bases :
1. Establishment of peace without conclusion of
a peace treaty.
2. Establishment of a consular office in Berlin
and of mutual consular representation in several
other countries.
Referred, via the Secretary of State, to the Reich
Foreign Minister.
WOERMANN
[Enclosure]
These are translations of documents on Hitler's plans
for the future of Norway and Denmark, secured from Ger-
man GDvei'umeiit files, and are anionj; the German official
papers which the Bulletin is currently publishing; Ger-
man documents on the invasion of Norway appeared in the
Bulletin of Apr. 28, 1946. For an article on and excerpts
from a German handbook of propaganda directives and for
German documents on Sumner Welles' mission in 1940, see
BULLSTHN of Feb. 24, 1946, p. 278; Mar. 3, 1946, p. 311;
Mar. 10, 1946, p. 365 ; and Mar. 24, 1946, p. 459.
These documents have been selected and translated by
J. S. Beddie, an oflieer in the Division of Research and
Publication. Office of Public Affairs, Ds'partment of State.
Memorandum on the New Order in Norway
The decision on the New Order in Europe, and
therefore in Norway as well, lies, of course, with
the German Fiihrer and Reich Chancellor. But as
the one responsible for the national interests of
Norway I consider it my duty, for the common
interests of Germany and Norway to set forth the
following :
1. Immediate prelhninarn pence
If the then existing Norwegian Government on
April 9, 1940 had acceded to the wishes of the
Reich Chancellor, peace would have been main-
tained between the two countries. Account would
have been taken fully of all German requirements
made necessary by the war. The Quisling Govern-
ment wishes to i:)roduce sncli a condition now and
thereafter to proceed with the laying of founda-
tions for a Great Germanic League.
The situation of the German forces in Norway
would certainly be improved by the restoration of
peace.
Those who now struggle in vain for the freedom
and independence of Norway at the side of Eng-
land and to this end carry on. espionage and acts
of sabotage, through the reestablishment of inde-
pendence and peace would find all grounds for
their activities removed. No one can rightfully
keep on fighting for a thing which has been al-
ready attained. This would be of added impor-
tance in case of possible attack on Norway. The
attackers could then count on no support on the
part of the population, but on the contrary on a
negative attitude.
In this connection it may be of interest to cite
what President Roosevelt said in his last New
Year's address before the American Congress :
"Our overwhelming superiority of armaments
must be adequate to put weapons of war at the
proper time into the hands of those men in the
conquered nations, who stand ready to seize tUe
first opportiniity to revolt against their German
and Japanese ojjpressors, and against the traitors
in their own ranks, known by the already infamous
JUNE 2, 1946
937
name of Quislings. (Applaiise.) And I believe
it to be no rash iiropliec}', when I state that as we
get guns to the 2)ati'iots in those lands, they, too,
will fire shots heard round the world." {Ap-
plmtse.)
Since there now exists in Norway a Government
recognized by Germany, made up of men who
never wanted war with Germany, but did every-
thing to prevent it, which strives for close friend-
ship w'ith Germany and now is collaborating with
Germany in the closest manner, it would seem un-
understandable to all if Germany did not desire
immediate ijeace with a Norway led by such a
Government.
Through the reestablishment of independence
the Norwegian people will gain confidence in Ger-
many and the conclusion of peace will quiet the
general situation.
As indicated this course would only strengthen
the military position of the German armed forces
in Norway. The war requirements of the German
forces would continue to be cared for without
change and the necessary freedom of operations
■would for the duration of the war, be not only
assured, but supported by all the strength of the
National Government.
By the declaration of Norwegian independence
and the restoration of peace Germany would take
the offensive politically and seize the initiative.
From the propaganda point of view this would
represent a great success for Germany. England
and America would be deprived of their great
propaganda weapon, the charge that "Germany
wishes to deprive nations of their independence
and to opiDress them." The effect which this would
liave on the greater part of public opinion, in
Europe, North and South America, even in the
whole world, could not be overestimated. Of this
one can get an idea, if he follows the world-wide
blasts of propaganda hostile to Germany on the
subject of the establishment of the Quisling Gov-
ernment in Norway. They fear nothing more than
that this Government should receive its unquali-
fied independence.
It is essential to mobilize all Norwegian national
forces for cooperation with Germany and for the
New Order in Europe, which can only be achieved
through the conclusion of peace and reestablish-
ment of independence. A contrary course pro-
duces uncertainty and doubt in the population and
forces many good national elements along false
paths.
695951—46 3
To lead all desirable elements along the right
road is especially important in the case of Nor-
way, which forms a foundation stone of the New
Order in Europe and to a certain extent has be-
come regarded in world-wide propaganda as an
example. Just so will the fate of Norway serve as
an example for the other Nordic and Germanic
states of what they in future may have to expect
or fear from Germany.
The Quisling Government through the conclu-
sion of peace would be in a position to reestab-
lish legations, which also would have a favorable
result for Germany, since tliereby, among other
effects, the dangerous influence wliich the present
legations of the Nygaardsvold emigre government
exercise, would be largely eliminated. For ex-
ample a Norwegian national legation in Stock-
holm would produce for Germany an immediate
result of importance for the war. In Sweden
there are (a) about 300,000 tons of seaworthy Nor-
wegian shipping, (6) at least 100,000 tons of
Norwegian shipping not seaworthy at present.
Under present conditions the Norwegian emigre
government in London exercises control over these
ships.
A Norwegian legation recognized by Sweden
and established at Stockholm would not only mini-
mize at once the influence in Stockholm of the
Norwegian emigre government, but would secure
the immediate availability of Norwegian shipping
lying in Sweden, needed urgently for war trans-
port requirements.
The solution indicated by the present arrange-
ment, namely that our foreign representation be
assimilated to the German legations, and in Ber-
lin to the office of the Reichskomissar, would
bring the Quisling Government into a very dif-
ficult position with the Norwegian people.
By the establishment of independent Norwe-
gian legations our common interests would secure
a double representation abroad (through Ger-
many and through Norway), which must cer-
tainly be considered a strengthening of German
influence.
The independent legations are actually both de-
sirable and necessary. Foreign policy carried out
in common would be aided by mutually confiden-
tial and secret information furnished both For-
eign Offices.
As soon as the Germanic League under German
leadership is established, a Germanic League
Council would meet periodically in Berlin mider
938
DEPARTMENT OF STATE BULLETIN
German chairmanshiix To this the Germanic
countries would send their Minister Presidents or
Foreign Ministers as plenipotentiaries.
The League Council would set up the basic
principles o,f the common Germanic foreign
policy.
A Norwegian Foreign Minister is necessary
since Sweden and Denmark both have one. These
countries would not be prepared voluntarily to
give up their own Foreign OiRces, since these are
symbols of independence. Germany would attain
the same end by coordination of foreign policies
through the Germanic League Council. If Ger-
many considers it important to establish the Great
German League, the proper line of development
must not be hindered by unsuitable measures,
which would arouse the greatest opposition in all
of Scandinavia.
The conditions of a preliminary peace agree-
ment should be determined at once and commis-
sions on the part of Germany and of Norway for
the arrangement of a definitive treaty should be
formed. (A draft, in which appear proposals for
the principal points of the preliminary peace
agreement, is added as an enclosure.)
2. Final conclusion of peace
I assume that the peace negotiations on all
points in question will not need to consume too
long a time and if the definitive conclusion of peace
between Germany and Norway could be pro-
claimed on April 9, the anniversary of the occu-
pation, it would be very desirable.
3. Reciprocal representation
The influence of Germany in Norway is assured
through the establishment of the present Norwe-
gian Government and the movement standing be-
hind it. A close and friendly cooperation between
the German and Norwegian ministries can be pro-
vided through the exchange of officials.
To underline the idea of alliance it would be
very desirable if the reciprocal representations
could be designated as Embassies.
4. Cooperation with the German armed forces
The idea mentioned in an official pronouncement
from Berlin of a lease of bases (parallel to the 99-
year lease of English bases by America) contra-
dicts the Germanic idea conceived of by Reich
Chancellor Adolf Hitler and myself. Between
Germanic states there are no leased bases, but only
common defense of the common Germanic area
against the common enemy. Norway voluntarily
puts at the disposal of the German Reich as the
leader of the Germanic League of States the neces-
sary harbors and air fields for the common defense
and the carrying on of offensive warfare, for the
Navy and Air Force will be in future in the Ger-
manic League of States a common league Navy
and Air Force. The coast defense and the Nor-
wegian National Army remain under Norwegian
command.
This arrangement, which is considered as a goal
for after the war, should be announced at present.
It would be desirable, by application of the exist-
ing basic laws on general obligatory military serv-
ice, to begin at once the organization of a Norwe-
gian army corps of three divisions, as well as to
bring the volunteer Norwegian Legion up to the
strength of an enlarged regiment.
Attention should also be given at once to a bet-
ter liaison between the German armed forces and
the Norwegian Government in order to assure the
necessary confidential collaboration. I therefore
request the naming of armed-service attaches. It
is also necessary that all Wehrmacht units in Nor-
way be directed to support the NS [Nasjonal
Samling] in every way with all their power.
5. With the conclusion of peace Norway will at
once adhere to the Anti-Comintern Pact, and also
to the Three Power Pact, as soon as the National
Government feels strong enough to undertake the
obligations accompanying it.
6. Concerning economic and supply questions a
separate memorandum will be forwarded.
Oslo, February 10, 191^2.
[Enclosure]
DRAFT
Principal Points of Preliminaky Peace
Agreement
Point 1. Germany recognizes Norway as a free
and independent state, with equal rights.
Point %. Germany waives war damages.
Point 3. The German Wehrmacht is assured
for the duration of the war necessary freedom
of operation in Norway.
Point Ji.. The Norwegian economy for the dura-
tion of the war will operate to its full capacity in
the interests of the European war against England.
Point 6. In the peace negotiations with Eng-
land Germany will support with all its force the
justified demands of Norway upon England for
indemnity on account of
(a) the involvement of Norway in the war as
a result of England's war policy,
JUNE 2, 1946
939
{i) the theft o,f Norwegian gold and of the
Norwegian merchant and whaling fleet,
(c) other related war damage.
Point 6. There will be established as soon as
possible between Germany and Norway an alliance
which will serve as a basis for a Great Germanic
League. Principal points of the alliance :
(a) Active reciprocal participation in the de-
fense of both states under the supreme command
of the supreme German commander.
(&) A common Germanic Navy and Air Force,
but an independent Norwegian Army and a coastal
defense, apart from the necessary larger bases and
air fields under the control of the common Navy
and Air Force.
The expenses of the common Navy and Air Force
will be allotted in proportion to the population
of the two states.
(c) The necessary common foreign policy will
be conducted through reciprocal confidential and
intimate exchange of information on the part of
both Foreign Offices.
Point 7. There will meet at once a commission
named on the part of both Germany and Norway
for the arrangement of the definitive terms of
peace and the final peace treaty.
Reich Minister Lammeks to Minister President
Quisling
Berlin, 17 Sepemler 19Jf2.
Secret Air Mail
Honorable Minister President !
By my letter of June 22, 1942 I informed you
that the Fuhrer did not consider that the existing
stage of the war was a suitable time in which to
adjust finally the relationship between the Great
German Reich and Norway. The Fiihrer has
delegated me to inform you further that the defin-
itive adjustment of these relations can only be
achieved after the end of the war. The FLlhrer
accordingly desires that during the war no nego-
tiations or discussions occur on the subject of a
final or temporary peace settlement between the
Great German Reich and Norway, or on the subject
of other steps which might affect in any way the
relationship of Norway to the Reich after the war.
For the duration of the war the existing situation
of Norway politically, as well as the situation in
law and international law, shall be maintained, so
that the matter of diplomatic representation, or
even of commercial representation, shall not arise.
Accordingly Norwegian interests abroad should be
taken care of by the competent authorities of the
German Reich, vis-a-vis the Reich Government
through the Reich Commissar, in the occupied ter-
ritories through the German administration of
these territories, in friendly countries through the
existing diplomatic missions of the Reich therein
or thi-ough the Foreign Office.
The Fiihrer requests that all political questions
affecting Norway, which require discussion with
the Reich, be taken up exclusively with the Reich
Commissar as the sole responsible representative
of the Fiihrer for the field of Norwegian civil af-
fairs, and also that any requests which you may
wish to bring before the Fiilirer personally, be
channeled regularly by way of the Reich Com-
missar. In the protection of Norwegian interests
in the occupied territories and abroad, the Reich
Commissar through the competent German au-
thorities, would be glad to know of those Norwe-
gians who belong to or axe favorable to the NS,
who might be used as advisers. If matters are not
so handled, I would be compelled where required
to act in the sense of this directive.
The Fiilirer would be especially grateful to you,
Honorable Minister President, if you on your side
would take steps to suppress any discussion which
may arise within your organization aimed at an
alteration of the position of Norway politically or
in international law, since such discussions under
the prevailing conditions of German-Norwegian
relations could only be detrimental.
The Fiihrer hopes that it will be possible within
a reasonable time to see you again for a conference
in person and he asks that his faithful regards be
conveyed to you.
With the expression of my highest regard I
remain,
Yours very respectfully.
Dr. Lammeks
Foreign Office Memorandum
State Secret
Counsellor of Legation Hensel of the Legation
at Copenhagen, who arrived here by airplane this
afternoon, at the request of the Acting Plenipo-
tentiary Charge d'Affaires Barandon, informed me
verbally as follows :
The new Commanding Officer of the German
troops in Denmark, General von Hannecken on
October 2, 1942, the day of his arrival in Copen-
940
DEPARTMENT OF STATE BULLETIN
hagen, visited the Acting Plenipotentiary Charge
d' Affaires Barandon at the Legation and in the
presence of SS Brigade Commander Kanstein and
Lt. Col. Count Brandenstein-Zeppelin, Chief of
Staff to the Commanding General, informed him
of the instructions which he had received from the
Fiihrer verbally on October 1. The essential con-
tent of these instructions is as follows :
The Fiilirer proceeded on the principle that the
declarations of April 9, 1940, on which the rela-
tionship of Germany and Denmark hitherto
rested, had, through the developments of the past
years and the conduct of the Danes themselves,
become obsolete. He had for some time regarded
these commitments as troublesome and unsuitable.
These declarations had had their justification in
a time when a long duration of the war was not
expected and when the developments which had
occurred in the meantime had not been foreseen.
Now they must be eliminated. For the future it
was impossible that in the New Europe established
under German leadership there should exist a form
of state with a democratic government and under a
royal house which up to now had displayed noth-
ing but ill-will. For the future it was entirely
impossible that he, the Fiihrer, should restore
Denmai'k in its previously existing form (mean-
ing that German troops should leave Denmark).
On the contrary, he needed Denmark, as he needed
Norway, to hold England in check and for this
the possession of Denmark was essential. Den-
mark must become a German province.
For the fact that things had gone as far as they
had, the Danes themselves, with their King and
Government, were to blame. The King and the
royal house had never concealed their unfavorable
attitude and tlieir preference for Sweden and
England. A Danish Minister had been allowed
to leave the country and the volunteers of the
Freikorps Diinemark had been ridiculed and mis-
treated. The Danish Government and the King
had let the opportunity escape and had never
made us an offer of North Schleswig. The royal
house and the present form of government were
disturbing factors in developments as a whole
and therefore he had finally come to the conclu-
sion that both should be put aside.
For the way things had gone, so the Fiihrer ex-
pressly declared, no blame could be cast on either
' Refers to the incident of the King's reply to Hitler's
birthday greeting.
the Plenipotentiary von Kenthe-Fink or on Gen-
eral Liidke. They had within the lin;its of their
respective spheres acted correctly according to
their instructions then in force. From now on,
however, there would be new basic pi-inciples.
As Plenipotentiary Avould come a hard-fisted
National Socialist and the Military Commanding
Officer as well as the armed .forces would regard
tliemselves as not in a friendly, but in a hostile
country. He forbade the Commanding General
to make a call on the King. He could let the
Foreign Minister know through a message from
his adjutant that he had taken over command
(which procedure had already been followed).
In case the King wished to confer with him or
see him personally, the Commanding General
should not be available. The members of the
armed forces must break off all relationshiia with
Danes.
As regards the government the aim must be to
establish as soon as possible a regime under the
leadersliip of the Danish National Socialists.
Whether the party leader of the Danish National
Socialists, Dr. Frits Clausen, was the right person
or whether he had a large or small proportion of
the Danish people behind him was completely un-
important. The Fiihrer needs in Denmark a pup-
pet government which will do everything he re-
quires of it. Even the English have set up puppet
governments in Iran and Iraq. The head of this
government must always be conscious that in case
of a possible withdrawal of German troops he
would be hanged to the nearest lamp post. The
Fiihrer in this connection would see that the new
PlenijDotentiary to be appointed would receive the
necessary instructions.
Any resistance, even the slightest, must be sup-
pressed by force. Should it appear that the Dan-
ish police force does not suffice or does not act in
accordance with our desires, additional military
forces, possibly also SS troops will be made avail-
able.
In connection with the expression of the King's
regrets,^ the Fiihrer declared that he wished that
the Danish Government be only informed that he
had taken note of the King's regrets. A visit by
the Crown Prince need not be discussed.
On the subject of the royal family the Fiihrer
added that he did not consider an abdication of
the King appropriate at present.
Berlin, October 3, 194^. Yos Ghundhere
The United Nations
The Security Council
SOVIET-IRANIAN MATTER
Letters From the Iranian Ambassador to the
President of the Security Council and to
the Secretary-General ^
20 May 194.6
Sir:
I have the honour to submit herewith the report
of such information as is available on this date,
20 May, to the Government of Iran with respect
to tlie matters brought by Iran to the attention of
the Security Council.
I remain. Sir,
Your obedient servant
Hussein Ala
Iranian Anibassador
His Excellency, Mr. Trygve Lie,
Secretary-General of the United Nations
W May, 1946
Sir,
In compliance with the resolutions of the Se-
curity Council of 4 April and 8 May 1946 and with
reference to the report submitted on 6 May 1946 on
behalf of the Government of Iran, I beg to state
that there is not sufficient first hand information
available to my Government as to the true state of
affairs throughout Azerbaijan to make the com-
plete report requested by the Security Council.
Such information as is available to me up to
5 o'clock this afternoon is to the effect that as a
consequence of the interferences previously com-
plained of, the Iranian Government is still being
prevented from exercising anj' effective authority
in the Province of Azerbaijan and that Soviet in-
terference in the internal affairs of Iran has not
ceased. It has, therefore, not been possible to make
such investigation as is required to establish that
all of the Soviet troops have been withdrawn from
the whole of Iran and, in particular, to investigate
reports that Soviet soldiers have been left in Azer-
baijan in civilian clothes and that military equip-
ment had been placed at the disposal of those who
challenge the sovereignty and territorial integrity
of my country.
While a commission has been appointed and is
now stated to be in the city of Tabriz to make in-
quiries about conditions throughout the Province
of Azerbaijan, it is doubtful that an adequate in-
vestigation can be conducted or a satisfactory re-
port made by the Government of Iran until this
Government is ^n a position to exercise its full
authority throughout the Province of Azerbaijan.
The deep concern of Iranians regarding the
presei'vation of the independence and territorial
integrity of Iran and the maintenance of interna-
tional peace and security is a matter of common
knowledge. The disputes which my Government
had believed would end by reason of the assurances
of the Soviet Union given to the Security Council
cannot be said, in reality, to have been resolved in
a manner consistent with the purposes and prin-
ciples of the Charter of the United Nations. In
the report of 6 May, 1946, 1 stated :
"While it is hoped that arrangements can be
made which will remove the unfortunate results
of the interference^ complained of, it is impossible
to forecast at this time with certainty what the
subsequent developments will be."
Unfortunately, the course of events since this state-
ment was made has demonstrated that the threat
to the integritj^ of Iran and to international peace
has grown more serious.
I have not received from my Government au-
thentic information with respect to the reported
clashes between Iranian Troops and the military
forces in Azerbaijan organized during the period
of Soviet occupation. If the reports of armed con-
flict in this strategically critical area are true, ob-
" Security Council Documents S/66 and S/68 21 May
1946.
941
942
DEPARTMENT OF STATE BULLETIN
viously the danger to international peace and
security is both serious and imminent.
I have the honour [etc.]
Hussein Ala
Iranian Anibassador
His Excellency, M. Alexandre Parodi,
President of the Security Council
m May, me
Sir:
In further compliance with the resolutions of
the Security Council of 4 April and 8 May, 1946,
I have the honour to submit herewith a report of
additional information with respect to the matters
brought by Iran to the attention of the Security
Council.
I remain. Sir,
Your obedient Servant,
Hussein Ala
Iranian Ambassador
His Excellency, Mr. Trtgve Lie,
Secretary-General of the United Nations.
m May, 19 k6
Sir,
Yesterday I reported on behalf of my Govern-
ment such information as was available to me up
to 5 o'clock in the afternoon of 20 May, 1946, with
respect to the question of the evacuation of Soviet
troops from the whole of Iran and Soviet inter-
ferences in the internal affairs of my country. I
referred to the Commission appointed to make
inquiries about conditions in Azerbaijan and have
now received further information based upon tele-
graphic dispatches sent by the members of the
Commiasion in Azerbaijan to my Government in
Teheran.
The information as transmitted to me at 4 o'clock
this afternoon is, in translation, as follows :
"In order to obtain information on the circum-
stances of evacuation of all parts of Azerbaijan,
I despatched a commission of investigation from
Teheran and in the course of one week it investi-
gated carefully the regions of Azerbaijan such as
the following important centres: Tabriz and its
suburbs, Marand, Julfa, Khoy, Salmas, Maju,
Rezacyeh and Mianduab.
The telegraphic reports are to the effect that
no trace whatever of Soviet troops, equipment or
means of transport was found, and that according
to trustworthy, local people, who were questioned
in all these places, Soviet troops evacuated Azer-
baijan on 6 May."
(Sgd.) Qavam-es-Saltaneh
I have the honour [etc.]
Hussein Ala
Iranian Ambassador
His Excellency, M. Alexandre Parodi,
President of the Security Council
PROVISIONAL RULES OF PROCEDURE OF THE SECURITY COUNCIL
[After Rule 23, printed in Buixetin of April 21, 1946,
p. 663, add the following additional rules. TUe Annex
printed on page 664 remains the same.]
VI. Conduct of Business
Rule U
The President shall call upon representatives in
the order in which tliey signify their desire to
speak.
Rule 26
The Security Council may appoint a commission
or committee or a rapporteur for a specified
question.
Rule 26
The President may accord precedence to any
rapporteur appointed by the Security Council.
The Chairman of a commission or committee, or
the rapporteur appointed by the commission or
committee to present its report, may be accorded
precedence for the purpose of explaining the
report.
Rul^ 27
If a representative raises a point of order, the
President shall immediately state his ruling. If
it is challenged, the President shall submit his
I'uling to the Security Council for immediate de-
cision and it shall stand unless overi-uled.
Rule 28
Proposed resolutions, amendments and substan-
tive motions shall normally be placed before the
representatives in writing.
' These rules were adopted by the Security Council at its
41st and 42d meetings on May 16 and 17, 1946 (Security
Council Document S/62 of 17 May l&i6).
JUNE 2, 1946
943
Rule 29
Principal motions and draft resolutions shall
have precedence in the order of their submission.
Parts of a motion or of a draft resolution shall
be voted on separately at the request of any rep-
resentative, unless the original mover objects.
Rule 30
The following motions shall have precedence in
the order named over all principal motions and
draft resolutions relative to the subject before the
meeting :
1. to suspend the meeting;
2. to adjourn the meeting;
3. to adjourn the meeting to a certain day or
hour ;
4. to refer any matter to a committee, to the
Secretary-General or to a rapporteur;
5. to postpone discussion of the question to a
certain day or indefinitely; or
6. to introduce an amendment.
Any motion for the suspension or for the simple
adjournment of the meeting shall be decided with-
out debate.
Rule 31
It shall not be necessary for any motion or
draft resolution proposed by a representative on
the Security Council to be seconded before being
put to a vote.
Rule 32
A motion or draft resolution can at any time
be withdrawn, so long as no vote has been taken
with respect to it.
If the motion or draft resolution has been sec-
onded, the representative on the Security Council
who has seconded it may require that it be put
to the vote as his motion or draft resolution with
the same right of precedence as if the original
moves had not withdrawn it.
Rule 33
If two or more amendments to a motion or draft
resolution are proposed, the President shall rule
on the order in which they are to be voted upon.
Ordinarily, the Security Council shall first vote on
the amendment furthest removed in substance
from the original proposal and then on the amend-
ment next furthest removed until all amendments
have been put to the vote, but when an amendment
adds to or deletes from the text of a motion or draft
resolution, that amendment shall be voted on first.
Rule 3i
Any member of the United Nations which is not
a member of the Security Council may be invited,
as the result of a decision of the Security Council,
to participate, without vote, in the discussion of
any question brought before the Security Council
when the Security Council considers that the in-
terests of that Member are specially affected, or
when a Member brings a matter to the attention of
the Security Council in accordance with Article 35
(1) of the Charter.
Rule 35
Any Member of the United Nations invited in
accordance with the preceding Rule or in applica-
tion of Article 32 of the Charter to participate in
the discussions of the Security Council may submit
proposals and draft resolutions. These proposals
and draft resolutions may be put to a vote only at
the request of a representative on the Security
Council.
Rule 36
The Security Council may invite Members of
the Secretariat or other persons, whom it con-
siders competent for the purpose, to supply it with
information or to give other assistance in examin-
ing matters within its competence.
VII. Voting
Rule 37
Voting in the Security Council shall be in ac-
cordance with the relevant Articles of the Charter
and of the Statute of the International Court of
Justice.
VIII. Languages
Rule 38
Chinese, English, French, Russian and Spanish
shall be the official languages of the Security
Council, and English and French the working
languages.
Rule 39
Speeches made in either of the working lan-
guages shall be interpreted into the other working
language.
Rule W
Speeches made in any of the three other official
languages shall be interpreted into both working
languages.
944
DEPARTMENT OF STATE BULLETIN
Rule 41
Any representative may make a speech in a
language other than the official languages. In
this case he shall himself provide for interpreta-
tion into one of the working languages. InterjDre-
tation into the other working language by an
interpreter of the Secretariat may be based on
the interpretation given in the first working
language.
Rule 42
Verbatim records of meetings of the Security
Council shall be drawn up in the working lan-
guages. At the request of any representative a
verbatim record of any speech made in an official
language other than the working languages shall
be drawn up in the original language.
Rule Jf3
All resolutions and other important documents
shall forthwith be made available in the official
languages. Upon the request of any representa-
tive, any other document shall be made available
in any or all of the official languages.
Rule 4k-
Documents of the Security Council shall, if the
Security Council so decides, be published in any
language other than the official languages.
IX. Publicity of Meetings. Records
Rule 45
Unless it decides otherwise, the Security Council
shall meet in public. Any recommendation to the
General Assembly regarding the appointment of
the Secretary-General shall be discussed and de-
cided at a private meeting.
Rule 46
Subject to the provisions of Rule 48, the ver-
batim record of each meeting of the Security
Council shall be made available in the working
languages to the representatives on the Security
Council and to the representatives of any other
States which have pai-ticipated in the meeting not
later than 10 A.M. of the first working day follow-
ing the meeting. The verbatim record of any
speech made in any other of the official languages,
which is drawn up in accordance with the provi-
sions of Rule 42 shall be made available in the same
manner to any of the above mentioned representa-
tives at his request.
Rule 47
The representatives of the States which have
participated in the meeting shall, within two work-
ing days after the time indicated in Rule 46, inform
the Secretary-General of any corrections they wish
to have made in the verbatim record.
Rule 48
The Security Council may decide that for a pri-
vate meeting the record shall be made in a single
copy alone. This record shall be kept by the Sec-
retary-General. The representatives of the States
which have participated in the meeting shall,
within a period of ten days, inform the Secretary-
General of any corrections they wish to have made
in this record.
Rule 49
Corrections that have been requested shall be
considered approved unless the President is of
the opinion that they are sufficiently important to
be submitted to the representatives on the Security
Council. In the latter case, the representatives on
the Security Council shall submit within two work-
ing days any comments they may wish to make.
In the absence of objections in this period of time,
the record shall be corrected as requested.
Rule 50
The verbatim record referred to in Rule 46 or
the record referred to in Rule 48, in which no coi'-
rections have been requested in the period of
time required by those rules or which has been
corrected in accordance with the provision of
Rule 49, shall be considered as approved. It shall
be signed by the President and shall become the
official record of the Security Council.
Rule 51
The official record of public meetings of the Se-
curity Council, as well as the documents annexed
thereto, shall be published in the official languages
as soon as possible.
Rule 52
At the close of each iJrivate meeting, the Security
Council shall issue a communique through the
Secretary-General.
Rule 53
The representatives of the Members of the
United Nations which have taken jjart in a private
meeting shall at all times have the right to consult
the record of that meeting in the office of the Sec-
retary-General. The Security Council may at any
JUNE 2, 1946
945
time grant access to this record to authorized repre-
sentatives of other Members of the United Nations.
Rule 5Jf
The Secretary-General shall, once each year,
submit to the Security Council a list of the records
and documents which up to that time have been
considered confidential. The Security Council
shall decide which of these shall be made available
to other Members of the United Nations, which
shall be made public, and Avhich shall continue to
remain confidential.
X. Admission of New Members
Rule 55
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 obligations contained in the Charter.
Rule 56
The Secretary-General shall immediately place
the application for membership before the repre-
sentatives on the Security Council. Unless the
Security Council decides otherwise, the applica-
tion shall be referred by the President to a com-
mittee of the Security Council upon which each
member of the Security Council shall be repre-
sented. The committee shall examine any applica-
tion referred to it and re^Jort its conclusions
thereon to the Comicil not less than thirty-five days
in advance of a regular session of the General As-
sembly, or, if a special session of the General
Assembly is called, not less than fourteen days in
advance of such session.
Rule 57
The Security Council shall decide whetlier in its
judgment the applicant is a peace-loving State,
and is able and willing to carry out the obligations
contained in the Charter, and accordingly whether
to I'ecommend the applicant State for membership.
In order to assure the consideration of its recom-
mendation at the next session of the General As-
sembly following the receipt of the application, the
Security Council shall make its recommendations
not less than twenty-five days in advance of a legu-
lar session of the General Assembly, nor less than
four days in advance of a special session.
In si^ecial circumstances, the Security Council
may decide to make a recommendation to the Gen-
eral Assembly concerning an application for
membership subsequent to the expiration of the
time limits set forth in the preceding paragraph.
RUSSELL PLAN Continued from page 931
b. Finished text
(1) Report cleared for substance by Research Division
chief and office director.
(2) Report cleared editorially by OCL, sent by OCL
for reproduction, and distributed in accordance with
agreed list.
(3) Requests for the report received after original dis-
tribution to be handled by OCL in consultation with
oflBce.
2. Regional Project Requested by a Division of A-B or
A-C (e. g. The 19JiS-.'t9 Unemployment Level in Germany)
a. Project initiation
(1) Prior discussion will normally have taljen place
between A-C and DRE representatives on the work-
ing level.
(2) Request goes to OCL through A-C representative
on subcommittee or through EUR/DRE.
(3) OCL approves or disapproves after consultation
with EUR/DRE and the A-C representative.
(4) Distribution list agreed by EUR/DRE, A-C, and
OCL.
6. Finished test
(1) Report cleared for substance by DRE and EUR.
(2) Report cleared editorially by OCL, whicli arranges
reproduction and distribution.
695951—46 4
3. An Inter-Regional Project Requested by A-B, A-C, JIC,
NIA, or other authorised agency (e. g. World Opinion on
the U. S.; Reactions to British Loan in China, France,
U. S. S. R.)
a. Project initiation
(1) Request goes to OCL.
(2) OCL, if It approves and is assured of the participa-
tion of other interested offices, arranges for a
project coordinator from one of the offices or its
own staff.
(3) Project coordinator arranges for cooperation of
division analysts through appropriate directors and
division chiefs, constructs distribution list.
h. Finished text
(1) Report approved by appropriate division and office
cBiefs and by OCL ; reproduction and distribution
arranged by OCL.
Note: Projects 1 and 2 would be done entirely in geo-
graphic Research Divisions, except for collaboration of
BI on 1.
Project 3 might be done entirely within OCL, but more
likely a large contribution of services would be needed
from personnel working within their geographic Re-
search Divisions.
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
PICAO:
European and Mediterranean Air Route Services
Conference
Meeting of the First Annual Assembly
FAO:
Special Meeting on Urgent Food Problems
ILO:
Ninety-eighth Session of the Governing Body
Twenty-eighth (Maritime) Session of the International
Labor Conference
Inter-American Copyright Conference
The United Nations:
Security Council
Military Staff Committee
Special Committee on Refugees and Displaced Persons
International Court of Justice
Commissions of the Economic and Social Council
Economic and Social Council
Commission on Atomic Energy
International Health Conference
General Assembly: Second Part of First Session
Paris
May 27
Paris
April 25 — adjourned on May 16
until June 15
Washington
February 20
Washington
March 18
Paris
April 24
Montreal
May 21
Washington
May 20-28
Montreal
May 23-28
Seattle
June 6
Washington
June 1
New York
March 25
New York
March 25
London
April 8
The Hague
Informal Session April 3— May 4
Inaugural Sitting April 18
New York
April 29
New York
May 25
New York
June 14
New York
June 19
New York
September 3
The dates in the calendar are as of May 26.
Activities and Developments
The Far Eastern Commission on May 23 unani-
liioiisly approved a policy statement concerning
three additional industries, which will form part of
the over-all Interim Reparations Removals Pro-
gram for Ja[)an. These policies, on the machine-
tool industry, the sulphuric-acid industry, and
the shipbuilding industry, supplement the two
initial policy statements which the Commission
approved and released to the press last week.^ The
Reparations Committee of the Commission still
^ Bulletin of May 26, 1946, p. 884.
946
has additional policies relating to the Interim
Reparations Removals Program under considera-
tion, and the Commission will continue to release
these statements as agreement is reached. The
Commission has now taken action on six of the 10
industries covered by the Pauley report.
The Commission also unanimously agreed to
request its chairman to secure certain informa-
tion as to the extent to which certain policies and
directives relating to civil liberties in Japan had
been implemented. The request arose in Com-
mittee No. i of the Commission, which has been
considering the broad subject of civil liberties.
JUNE 2, 1946
947
Tlie C'oiiiiuisyioii received on May 17. 1946 the
reply of the United States Government to the Com-
mission's earlier policy decision on the subject of
"Food Supply for Japan'', which was released to
the press on April 25, 1940. (Text of Assistant
Secretary of State Hilldring's letter printed be-
low.) The steering committee of the Commission
considered the reply of the United States Govern-
ment and nnanimously agreed to lay the subject
on the table.
3Iay 17, 1946
My Dkar Mr. Johnson :
Reference is made to your letter of Aj^ril 26,
1946 forwarding a policy statement of the Far
Eastern Conmiission ^Yith respect to the import of
food into Japan, in which the Commission re-
quested the United States Government immedi-
ately to review the food import program for Ja])an
in the light of the policy set forth in the statement
and in consultation with the United Nations Relief
and Rehabilitation Administration, the Combined
Food Board, and other allocating authorities.
I note that the United States representative on
the Commission pointed out that the statement of
principles embodied in the first paragraph of the
Commission's statement is fully in accord with the
principles upon which the United States Govern-
ment in the past has acted. I wish to reaffirm
that statement. So that the Commission may have
before it a review of the action taken by the United
States Government in implementing those prin-
ciples, I request that the following information be
brought to the attention of the Commission.
In March, the Supreme Commander for the
Allied Powers, after having been fully apprised
of the severity of the world food crisis, certified
that it \Yould be necessary to import an absolute
minimum of '200,000 tons of cereal per month from
March through June to pi'event such disease and
unrest as would endanger the occuisying foices.
According to information sujjplied by the Supreme
Commander, imports of 200,000 tons per month
plus indigenous resources still available would pro-
vide the non-self-supplying population in Japan
with only 800-900 calories per day from May to
Sejatember. Controlled ration distribution would
be still smaller and, any reduction in the 200,000
tons per month would lower the nutrition level
still more.
In view of the acute world food shortage which
has produced disastrous conditions even in terri-
tories of Allied Powers, the United States Govern-
ment approved the shipment of 1.50,000 tons per
month fnnn April through June instead of the
200,000 tons iisked by the Supreme Commander.
Even this program has not been fulfilled. Actual
shipments through March amounted to a total of
107,000 tons, while in April only 48,000 tons were
shipped. During the same period obligations of
the United States for the export of cereal to liber-
ated areas were more fully met than were
"the commitments for shipment to the Supreme
Commander in Japan.
Inevitably there will be a very low level of
mitrition in Japan, and the above figures clearly
indicate that no prefeiential tieatment or priority
has been given to that country.
The Far Eastern Commission has requested the
United States Government to review its program.
Because of the desperate nature of the crisis and
the threatened failure to meet over-all export goals,
the entire food prograni is constantly under re-
view. The resolution of the Commission was kept
in mind duiing the re\'iew of the program of May
shipments which is now at 25,500 tons of wheat,
82,000 tons of flour and 34,000 tons of other grain.
Part of the Japanese allocation must be used to
meet emergency needs in Korea. It has also been
the practice of this Government to discuss the food
program with the Combined Food Board and with
its Cereals Conunittee at which the United Nations
Relief and Rehabilitation Administration and
major importing countries are represented, a pro-
cedure which was followed in consideration of the
May program.
The Far Eastern Commission will be informed
if requirements of food imports essential for the
safety of the occupying forces in Japan change,
or if further review of the progi-am by the United
States Government in consultation with the Com-
bined Food Board and the United Nations Relief
and Rehabilitntion Administration results in a
change in the program for Japan.
Sincerely yours,
For the Acting Secretary of State :
J. H. HiLLDRING
Assistant Secretary
Mr. Nelson T. Johnson
Secretary General
Far Eastern Commission
948
ILO: 98th Session of Governing Body': The
Secretary of State announced on May 22 that
the President has approved the designation
of Frieda Miller, Director of the Women's Bureau,
Department of Labor, as United States Kepre-
sentative on the Governing Body of the Inter-
national Labor Organization at its ninety-eighth
session which is scheduled to convene at Montreal,
Canada, May 23, 1946.
Bernard Wiesman, Chief, International Labor
Organization Branch, Division of International
DEPARTMENT OF STATE BULLETIN
Labor, Social and Health Affairs, Department of
State, is accompanying Miss Miller to advise on
matters of political, financial, and broad economic
concern. Miss Miller and Mr. Wiesman will also
attend the session of the Conference Delegation
on Constitutional Questions, which will be held in
conjunction with the ninety-eighth session, and are'
now attending the jjreliminary meetings of the
Governing Body Committees which convened at
Montreal May 14.
FAO: Special Meeting on Urgent Food Problems'
STATEMENT BY THE PRESIDENT
[Released to the press by FAO May 2U]
I am most happy to welcome to Washington the
delegates to the world-wide meeting on urgent
food problems that is being convened by the Food
and Agriculture Organization of the United Na-
tions. I wish that it were possible for me actually
to be with you to deliver my greeting.
In meeting at this critical period you have
heavy responsibilities and great opportunities.
What this conference accomplishes or fails to ac-
complish will make its mark not only in the areas
where jieople are hungry as the aftermath of war,
but in all parts of the earth and for a long time
to come. Any step toward feeding the world's
families better and making the fullest use of the
products of farms and fisheries is a step toward
winning and securing the peace. Food touches
everyone in the world more directly and more
keenly than most boundary settlements and other
primary political actions that are often local or
regional in their effects.
It is not necessary in a message to this group
to go into the details of the serious world food
situation. Everyone realizes now that the world-
wide scarcity of cereals cannot be completely over-
come with the 1946 harvest; that deficits in live-
stock products will continue for a long time. The
remaining weeks before the 1946 grain harvest in
the Northern Hemisphere are especially critical,
and the United States and other countries in a
' Released to the press May 22.
' Meeting in Washington from May 20 to 28. The Presi-
tlent's statement was made at the first meeting.
position to help must continue and heighten their
efforts.
In this country Ave have raised progressively our
export program as world needs became more ur-
gent, reducing progi-essively, at the same time, our
own consTunption of wheat. In this wheat market-
ing year we already have shipped more than 300
million bushels of wheat, which is close to 40 per-
cent of the total world exports of wheat. Our ex-
port program covering 400 million bushels of
wheat for the entire marketing year represents
over a third of our total production from the 194.5
crop. The people of this country have shown an
admirable willingness to do their share in the
great humanitarian task of preventing famine in
other lands.
During the war we have learned valuable lessons
in cooperation with the rest of the world. T\niat
the people of this country have done is ample
evidence that they recognize the necessity for
progressive and effective action in achieving for
the world, freedom from want, that they are con-
scious of the world's needs and are ready to coop-
erate in a program to meet them. In my message
to the conference at Quebec, where FAO was es-
tablished last fall, I said that my country's dele-
gation came "prepared to work together with the
delegations of other nations for the good of all,
and to bear their full share of the responsibility
for a successful outcome."
We bring the same spirit to this conference,
which I view as the first great test for FAO. I
extend to all the delegates present, and to FAO's
great director-general, Sir John Boyd Orr, my
best wishes for success. Harry Tkumak
JUNE 2, 1946
949
EXCERPTS FROIVI STATEMENT BY THE
DIRECTOR-GENERAL '
There are certain issues on which decisions must
be taken without delay. I suggest that the con-
ference should consider these:
1. How the 1946 harvest can be husbanded to
cover the period until the next harvest ; how it can
be used to the best advantage and distributed ac-
cording to needs. Decisions on this should be
taken before the first blade of grain is cut.
2. How to get maximum production in the 1947
harvest. Decisions must be taken immediately for
the autumn sowings, and arrangements must be
made for priority for fertilizers and equipment
needed to provide the food to save life, with the
same sense of urgency as was shown in the pro-
duction of munitions during the war. This is a
war against starvation and we must have the
weapons to fight it.
3. Then arrangements must be made to keep the
Avhole position under continuous review and to
keep the governments and people of the world in-
formed from time to time of what the position is
so that action can be taken immediately on the
appearance of any adverse factor aifecting pro-
duction or distribution. This is the intelligence
service in the war against hunger, and it can oper-
ate efficiently only if all governments are prepared
to give full information.
4. Consideration must also be given to the ma-
chinery for facilitating the procurement of food
and its allocation on an equitable basis, and also
for advising governments on programs of pro-
duction. The functions of the present organiza-
tions must be coordinated in a single international
organization, probably on the lines recommended
by the Director-General of UNRRA. This organ-
ization must have the resources and the authority
to deal with the whole anticipated period of the
food shortage.
There is another aspect which must be kept in
view. The measures taken to meet the present
emergency must as far as possible be such as may
merge smoothly into a permanent world food
policy. In this connection I hope that it will be
possible to make arrangements, either through
deferred payments, long-term credits, or other
means, so that relief measures may as soon as pos-
sible be put on a business footing. No nation
which for a long period depends upon the charity
of another nation for food for its citizens can
retain its self-respect.
Existing International Organizations
Concerned With Food and Agriculture
The Combined Food Board consists of repre-
sentatives of the Governments of the United States,
the United Kingdom, and Canada. The function
of the Board is to make recommendations as to the
allocation of scarce foodstuffs and fertilizers.
The recommendations are based upon the reports
of its 13 commodity committees, which include
representatives of the main importing and export-
ing countries for the commodities covered. (The
Board was scheduled to terminate its work on
June 30, but the date has now been set forward to
December 31, 1946).=
The Emergency Economic Committee for
Europe consists of representatives of several
European governments. A subcommittee of the
Council is concerned with the food and agricultural
problems of Europe.^
The Food and Agriculture Organization of the
United Nations is the permanent international
organization set up by the United Nations to deal
with the problems of food and agricultui-e. Its
objectives include increased consumption, in-
creased production, stabilization of prices, and
adequate returns foi' producei's. FAO can supply
information and advise governments and other
international organizations, but has no executive
powers.
United Nations Relief and Rehabilitation Ad-
ministration is the international emergency relief
agency, and its field of operations is restricted to
those countries devastated by the war and unable
to pay for supplies. (It is contemplated that
UNRRA will complete its shipments to the receiv-
ing countries in Europe not later than the end of
1946 and in the Far East three months thereafter.)
' Made by Sir John Boyd Of r before the Special Meet-
ing on Urgent Food Problems in Washington on May 20.
' See joint statement by the President and the Prime
Ministers of Great Britain and Canada as printed in Btj]>
LETiN Of May 19, 1946, p. 861.
' For a recent review by the BECE see Buixetin of Feb.
17, 1946. p. 248.
The Record of the Week
Report by the Secretary of State on the Paris Conference
of Foreign Ministers '
I wish to talk with you about the meeting of the
Council of Foreign Ministers at Paris. On that
mission I was accompanied by Senator Connally,
Chairman of the Senate Foreign Kelations Com-
mittee, and Senator Vandenberg, a Republican
member of that Committee. I cannot adequately
express my appreciation of their wise counsel and
loyal cooperation. Senator Connally was exceed-
ingly heljDf ul. Senator Vandenberg by his whole-
hearted cooperation let the world know that re-
gardless of how much he and his party may dis-
agree with the administration about domestic is-
sues, in our relations with foreign governments we
have but one policy, the policy of the United
States.
Building the foundations of a people's peace in
a war-shattered world is a long, hard process. A
people's peace cannot be won by flashing diplo-
matic triumphs. It requires patience and firm-
ness, tolerance and understanding. We must not
try to impose our will on others, but we must make
sure that others do not get the impression they can
impose their will on us.
The progress made towards peace at the Paris
meeting of the Council of Foreign Ministers was
disappointingly small in light of the expectations
we had when it was agreed at Moscow last De-
cember that the Council should resume the work
which had been interrupted by our inability to
agree at London last September.
But the progress towards peace at Paris was
' A radio address delivered by tlie Secretary of State on
the occasion of his return from the Paris Conference of
the Foreign Ministers of France, tlie Union of Soviet
Socialist Republics, the United Kingdom, and the United
States which took place between April 25 and May 16,
1946. The address was broadcast over the national net-
works of the American Broadcasting Company and the
National Broadcasting Company on May 20, 1946. The
address was rebroadcast, by transcription, over the Mu-
tual Broadcasting Company and released to the press on
the same date.
950
infinitely greater than I expected when I sug-
gested that the Council should meet in Paris
preparatory to the prompt calling of a peace con-
ference. The Ministers did come to Paris seri-
ously intending to pave the way for a peace con-
ference. We differed considerably on a number
of fundamental points ; but we did come to know
wliat those fundamental points were and the vary-
ing weight the different Ministers attached to those
l^oints.
We found that there were three basic issues out-
standing on the Italian treaty : reparations, the
colonies and the Italian- Yugoslav boundary, par-
ticularly as it concerns the Italian city of Trieste.
In summarizing the significance of these basic
issues, I shall deliberately seek to avoid intensify-
ing the conflict in viewpoints.
Our position on reparations is simple. To en-
able the Italian nation to live we have already
advanced directly or indirectly $900,000,000. We
should prefer in the interest of peace to forget
about reparations. But we are willing to agree
to limited reparations, provided these do not de-
prive Italy of resources necessary to enable her
to subsist without external assistance.
If Italy requires help from others she will look
to us. And we made it clear we are not going to
advance millions of dollars to enable Italy to pro-
duce goods to be paid as reparations to any of
our Allies.
The Soviet Government has insisted on repara-
tions for itself of $100,000,000. We have pointed
out certain sources from which reparations can
be taken which would not seriously affect the Ital-
ian economy and which would yield substantially
the amount which the Soviets claim. But the
Soviet Government is unwilling to count what she
will obtain from some of these sources as repara-
tions.
For example, she insists that some of the naval
ships surrendered by Italy to the navies of the
JUNE 2, 1946
951
United States and Britain be shared with her.
She declares the ships are war booty. But war
booty belongs to the nation capturing it. The
Soviet Union has never shared with Allied Na-
tions any war booty captured by her. We are will-
ing to give to her in lieu of reparations some of the
naval shi^Ds surrendered to us. She demands the
ships but refuses to consider them as a substitute
for reparations. She insists upon being paid out
of current jDroduction. We would have to finance
the production, and therefore I refused to agree
to the proposal.
Differences regarding the colonies have been
narrowed but not resolved. The Soviet Govern-
ment receded from its claim for a trusteeship of
Tripolitania, first in favor of a joint Soviet-Ital-
ian trusteeship and later in favor of an Italian
trusteeship as originally proposed by the French.
Our position has always been that the colonies
should be placed under United Nations trustee-
ship, having as its objective the welfare of the
inhabitants and their independence at the earliest
practicable date. The Trusteeship Council should
appoint a neutral administrator responsible to it,
thus avoiding all possible rivalry between the
powers. Libya and Eritrea should be granted in-
dependence in ten years.
It is open to question whether Italy is in an
economic position to assume the responsibility of
trusteeship and whether the return of the colonies
to Italy as trustee takes sufficientlj' into account
the wishes of the inhabitants. For these reasons
it was with considerable reluctance that I indi-
cated my willingness to yield to the French sug-
gestion of an Italian trusteeship if that would
bring about an agreement in the Council, and if
it were agreed that a definite date would be fixed
for the independence of Libya and Eritrea. But
the French Government was unwilling to agree
to a fixed date for indepeiidence.
The British felt that because of their promises
during the war they could not agree to an Italian
trusteeship for territory occupied by the Senussi
tribes. For security reasons they also proposed a
British trusteeship for Cyrenaica.
When no agreement was reached, I again urged
the original American proposal for a United
Nations trusteeship.
It was my imjiression that agreement on repara-
tions and the colonies as well as on a host of other
questions would not be long delayed if only a
solution of the Trieste problem could be found.
The Soviet Kepi'esentative finally indicated that
there would be no serious question on the cession
of the Dodecanese Islands to Greece but he refused
to approve it until the other territorial dispositions
could be agreed upon.
The experts appointed to investigate the Italian-
Yugoslav frontier did not differ as to the facts.
But the Soviet Representative differs from the
other members of the Council as to the conclusions
to be drawn from the facts. It is his position
that Venezia Giulia must be treated as an in-
separable whole, and that so treated the claim of
Yugoslavia to the area is superior to that of Italy.
The other representatives believe that wise states-
manshij^ as well as the explicit decision taken by
the Council at London requires a boundary line
which will in the main be an ethnic line leaving
a minimum of people under alien rule.
It was wrong to give Italy the whole of Venezia
Giulia after World War I. It would be equally
wrong to give Yugoslavia the whole of Venezia
Giulia now. It would transfer from Italy to
Yugoslavia approximately 500,000 Italians.
The British and French experts proposed
ethnic lines more favorable to Yugoslavia than
our own. In an effort to reach agreement we
stated we were willing to accept the British or
French line or any other ethnic line that could
be justified upon the basis of the London decision.
The American Delegation suggested a plebiscite
for the area between the line proposed by the
United States and the line proposed by the Soviet
Union — but the Soviet Delegation would not con-
sider a plebiscite except for the whole Venezia
Giulia area. All of us are agreed that Yugoslavia
and the countries of Central Europe which have
for years used the port of Trieste shall have free
access to Trieste at which there shall be a free
port under international control. But we will
continue to appeal to the Soviet Government and
the Yugoslav Government not to press for a boun-
dary line which will needlessly violate ethnic
principles and will breed trouble in the future.
Agreement on the Balkan treaties is blocked
principally by the inability of the Council to agree
upon the economic clauses. Agreement on these
provisions may have been delayed as part of a
bargaining process, although so far the Soviet
Government has stood out against the inclusion
in the treaties of any provision which would prom-
ise freedom of commerce on the Danube, the gate-
way to Central Europe.
952
If the Soviet Government is opposed, as the
United States Government is opposed, to the for-
mation of exchisive political and economic blocs,
they will not persist in their refusal to permit the
countries of Central Europe to open their gates to
the commerce of all nations.
It is regrettable that our outstanding differ-
ences on the treaties could not have been adjusted
at our I'ecent meeting in Paris. A short recess
to allow a calm re-examination of our respective
positions should expedite agreement when we re-
convene. But when a world short of goods and
short of food is crying for the return of conditions
of peace, we cannot indefinitely delay the making
of peace and the withdrawal of troops from occu-
pied areas. The four Allied governments cannot
indefinitely delay the making of peace with coun-
tries which they have long ceased to fight, simply
because they cannot agree among themselves on
peace terms. The Council of Foreign Ministers
was formed to facilitate and not obstruct the
making of peace.
It was for that reason that the American Dele-
gation proposed that the Council at its next meet-
ing on June 15 should conclude as far as possible
its work on the proposed drafts, but that the date
for the peace conference should be definitely fixed
for July 1 or July 15 and invitations should be
issued at once.
It was our view that the Council had taken suffi-
cient time to try to narrow their differences and
at this stage with the principal issues defined, we
should not deny to our other war partners their
right to participate. The making of peace is not
the exclusive prerogative of any four govern-
ments.
The Soviet Delegation insisted that invitations
for the conference could not be sent until we had
reconvened and agreed on all fundamental ques-
tions. Unanimous agreement was necessary and
we were forced, therefore, to recess without agree-
ment for the actual calling of the peace conference.
While the American Delegation will, when the
Council reconvenes, make every effort to reach
agreement on fundamental questions, it will renew
its demand for the calling of a peace conference
on July 1 or July 15.
If we cannot have a peace conference until the
four nations agi-ee on every subject deemed fun-
damental by any one of tiiem, that will give to one
member of tlie Council the power to stop all efforts
toward peace. It would be better for the Council
DEPARTMENT OF STATE BULLETIN
to submit to the peace conference a single draft
of each treaty and to set forth in this draft both
the matters on which agreement had been reached
and those on which agreement had not been
reached. This would permit free discussion in the
peace confei'ence by all the nations that did the
fighting, and world opinion will then point the
way to a final settlement.
If a peace conference is not called this summer,
the United States will feel obliged to request the
General Assembly of the United Nations under
Article 14 of the Charter to make recommenda-
tions with respect to the peace settlements. But
I confidently expect a peace conference to be called
this summer.
The situation which we will face in the coming
months will be a test not only of others but of
ourselves. There are now and there will be in the
future many occasions which might impel us to
say as we did after the last war that, much as we
would like to cooperate in the restoration of
Europe, cooperation as a practical matter is im-
possible without the sacrifice of our principles and
that we must be content to cultivate and defend
our own hemisphere.
But we must not forget that if we fail to co-
operate in a peace which is indivisible we may
again find that we will have to cooperate in a war
which is world-wide. Whether we like it or not,
we live in one world.
I am unwilling to admit that we cannot co-
operate without sacrifice of our principles. If we
are going to play our part we must take the offen-
sive for peace as we took the offensive for war.
But the victories of peace like those of war re-
quire sacrifice not of principle but for principle.
They require faith in ourselves and in our ideals.
They require initiative, resourcefulness, and un-
relenting effort. There is no iron curtain that
the aggregate sentiments of mankind cannot pene-
trate.
The American Delegation at Paris did not
hesitate to start the offensive for peace.
Security is the concern of every nation. But
the effort of one nation to increase its security
may threaten the security of other nations and
cause them in turn to try to increase their own
security. The quest for security may lead to less
rather than more security in the world.
It is in truth extremely difficult to know to what
extent the action of any nation may be ascribed
to its quest for security or to its desii'e to expand.
JUNE 2, 1946
953
But some so-called security moves on the diplo-
matic checkerboard have not contributed to a gen-
eral sense of security.
Many of these moves are said to originate in
the fear of the revival of German military
might.
On our way to Potsdam last summer President
Truman and I discussed this situation and agreed
that it should be American policy to disarm
Germany and keep her disarmed and to do what
we can to prevent a struggle between the powers
for the control of Germany which might give
Germany the chance to divide and conquer.
Those principles were stated in the Potsdam
agreement. But President Truman and I thought
at that time that the policy of disarming Germany
and keeping Germany disarmed for a definite
period of years should become a part of a solemn
treaty between the principal Allied powei's. Our
policy should be to prevent war and not to wait
until aggi'ession gets out of hand.
It was not a new thought. It had been fore-
shadowed in the Moscow Declaration of 1943.
Others had discussed it, but no one more force-
fully than Senator Vandenberg in a speech in the
Senate in January, 1945.
At the London meeting of the Council of For-
eign Ministers when the Soviet Foreign Secretary
seemed greatly concerned about the Soviet se-
curity requirements in the Balkans, I suggested a
twenty-five year four-power treaty, to keep Ger-
many disarmed as a means of preventing any real
threat to Soviet security. I explained that we
contemplated a similar joint guaranty of the dis-
armament of Japan.
I again proposed such a treaty in a talk with
Generalissimo Stalin on December 24 while I was
in Moscow. The Generalissimo said that if the
United States made such a proposal he would
whole-heartedly support it.
Later I also spoke to Mr. Bevin who advised me
that he personally was most sympathetic to the
suggestion.
In February I sent a working draft of the pro-
posed treaty for German disarmament to the So-
viet, British and the French Governments and the
proposed treaty for Japanese disarmament to the
Soviet, British and Chinese Governments. I in-
vited their suggestions as to the draft.
I was informed by Mi\ Bevin and M. Bidault
that they favored the proposal in principle but
would have a few suggestions to make. I did not
hear from Mr. Molotov. Just before the Paris
meeting I advised the Ministers I would like to
discuss the proposal at F'aris. The Soviet Minis-
ter agreed to discuss it informally but stated with-
out specification that there were serious objections
to tlie draft.
At Paris the Soviet Representative stated he
first wanted to know if Germany was being dis-
armed as contemplated by the Potsdam agi-eement
and he feared the treaty might delay immediate
disarmament. I pointed out that our proposal
could not fairly be so construed; that it did not
lessen the obligation to disarm Germany now but
provided machinery to keep Germany disarmed.
To remove any question as to our purpose I
asked General Clay to request the Allied Control
' Council to appoint representatives with power
to go into every zone and make a report as to the
disarmament of Germany.
Later the Soviet Representative stated that
when Generalissimo Stalin agreed with me to
support the treaty I did not have a draft of it.
He said that as it could not become effective until
after a German treaty was signed, consideration of
it could be delayed.
It is our sincere hope that after the Soviet
Union studies our proposal and comes to appre-
ciate our earnest desire to see Germany disarmed
and kept disarmed, the Soviet Union will support
it whole-heartedly.
Wlrile the making of the German peace settle-
ment may take some time, we took the initiative
at Paris to propose the immediate appointment of
special deputies to prepare a peace settlement
which could be considered at a general Allied
conference, the date of which should be fixed by
the Council at its next session.
While there is no German government yet which
could accept the settlement, agreement among the
Allies on the nature of the eettlement is necessary
to enable the Allies to know the goal towards
which the Allied occupation and administration
should be directed and the kind of German gov-
ernment which should be created to accept the
settlement.
I also asked that the Special Deputies on Ger-
many be instructed to report on several pressing
problems, including boundary and economic ques-
tions. We cannot, for example, continue to carry
out the reparation program if Germany is not to
954
be administered as an economic unit as agreed upon
at Potsdam. Whatever boundaries are agreed
upon for Germany, she must be able to subsist
without external assistance. We cannot subsidize
Germany to enable her to pay reparations to other
nations.
I regret that the Soviet Eepresentative was not
prepared to act upon my proposal for the appoint-
ment of Special Deputies without further study.
I shall renew my proposal when the Council re-
convenes.
Important as the German questions are and
eager as we are to press for their speedy solution,
we must not and cannot delay the peace settle-
ments with other countries. At Potsdam it was
agreed that the start should be made with Italy,
Bulgaria, Hungary, Rumania and Fiivland.
While Germany must remain under occupation
for some time, we cannot fail to do our part to rid
the rest of Europe of the burden of the forces
of occupation. There can be no recovery in
Europe until we do.
It is particularly important that we press for-
ward vigorously with the Austrian treaty. The
Moscow Declaration on Austria contemplated that
Austria should be regarded more as a liberated
than as a satellite country. It was agreed at Pots-
dam that no reparations would be taken from her.
She was one of the first countries in Central
Europe to have free elections following the libera-
tion. The continuance of foreign troops in
Austria is an undue burden on her economy..
In February we asked that the Austrian treaty
be prepared along with other treaties for satellite
states. At Paris I insisted upon its preparation
but the Soviet Eepresentative declined to discuss
the Austrian treaty or say when he would con-
sider it.
The making of peace with Austria is essential
to the restoration of anj'thing like conditions of
peace in Europe. As long as there is no peace
with Austria and foreign troops remain on her
soil, military communication lines will continue
to be maintained in Rumania and Hungary and
possibly Italy.
If peace could be made with Austria concur-
rently with the treaties now under consideration.
DEPARTMENT OF STATE BULLETIN
there would be no necessity or excuse for a single
soldier on foreign soil in Europe with the excep-
tion of Germany and a line of communication
through Poland. European States would have a
chance to live and breathe.
It is American policy to press unremittingly
for the conclusion of peace settlements to make
jDossible the withdrawal of ti'oops from countries
where they do not belong and where they impose
unjustified economic and social difficulties upon
the people. And even without waiting for the
conclusion of peace treaties it is American policy
to press for the reduction of occupation troops in
all counti'ies.
Our jjolicy of continuing to press for the return
of conditions of peace, without regard to the
making of formal peace treaties, finally yielded
some constructive results in the case of Italy. For
months we have been urging the revision of the
Italian armistice so as to restore virtually complete
sovereignty to Italy except in the colonies and
in the controversial Venezia Giulia area. At
Paris this revision was agreed to.
While the absence of a peace treaty still handi-
caps Italy in her effort to rebuild her broken
economic and political life, the revised armistice
gives the Italian Government the largest possible
freedom that can be given to it without a formal
peace treaty.
Our problems ai'e serious, but I am not dis-
couraged. Our offensive to secure peace has only
begun. We are determined to work for political
and economic peace in Europe, in the Near East
and in the rest of the world. We shall work for
it in the peace conferences and in the councils of
the United Nations. The objective of our offen-
sive is not territory or reparations for the United
States. The objective is peace — not a peace
founded upon vengeance or greed, but a just peace,
the only peace that can endure.
'Executive Agreement Series 472. Buuj-.tin, Aug. 12,
1945, p. 222.
Prosecution of War Criminals
The British Foreign Office has informed the De-
partment that India and Uruguay have acceded
to the agreement for the prosecution and punish-
ment of the major war criminals of the European
Axis signed at London August 8, 1945.^ The ac-
cession was effective for India on December 22,
1945 and for Uruguay on December 11, 1945.
JUNE 2, 1946
955
Allied-Swiss Negotiations
AGREEMENT OF FRENCH, BRITISH, AND
U.S. DELEGATIONS WITH THE SWISS
DELEGATION
[Released to the press May 21]
The Delegations of France, Great Britain, and
the United States have arrived at agreement with
the Swiss Delegation on two fundamental ques-
tions with which they have been concerned during
the past several weeks. The decisions relate to
the division of German holdings in Switzerland
and to gold received by Switzerland from
Germany.
The agreement is in general terms, and some
details remain to be worked out in Washington
on a technical level.
The accord provides that :
(1) Holdings of Germans in Germany or Ger-
mans subject to repatriation will be identified and
liquidated or transferred to j)ersons acceptable to
all concerned. This work will be done by a Swiss
agency, which the Swiss Government will set up.
The Swiss agency will cooperate with a joint com-
mission composed of representatives of the three
Allied Governments and of Switzerland. Doubt-
ful or controversial cases will be referred to ar-
bitration.
(2) The proceeds of liquidation will be divided
equally between the Allies as trustees for the coun-
tries claiming reparations, and Switzerland. On
their side, the Allies will turn the funds they obtain
over to the Inter-Allied Reparation Agency for
the rehabilitation of countries devastated or de-
pleted by Germany. Procedure for the distribu-
tion of these funds was provided in the Paris
Reparation Agreement signed in Paris in January
of this year.
(3) The Allies will accept a payment of 250,-
000,000 Swiss francs in consideration of which
the governments signatory to the Paris Reparation
Agreement will waive their claim and those of
their central banks for restitution from Switzer-
land of monetary gold. This amount will also be
divided in accordance with the Paris Reparation
Agreement. The amount equals approximately
$58,140,000.
The accord reached on the above questions pro-
vides the basis for concluding in the near future
the negotiations which began in Washington on
March 18. It provides a satisfactory method of
preventing the use of German assets for the financ-
ing of a new war. It also settles amicably differ-
ences of principle between the Allies and the Swiss
on the gold issue and the allocation of the proceeds
of liquidation.
The negotiations are being conducted by Walter
Stucki for the Swiss Government, Paul Chargue-
raud for the French Government, F. W. McCombe
for the British Government, and Randolph Paul,
Special Assistant to the President, for the United
States Government.
Appointment of U.S. Represen-
tative for Negotiations on
German External Assets
[Released to the press May 24]
The appointment of Seymour J. Rubin as the
United States representative for the forthcoming
Allied-neutral negotiations on the subject of Ger-
man external assets and related problems was an-
nounced on May 24.
Mr. Rubin will tjikfftlie place of Randolph Paul
in negotiations with neutral countries other than
Switzerland. Substantial agreement on the Swiss
negotiations has already been announced, and
other commitments make it impossible for Mr.
Paul to conduct further negotiations.
Mr. Rubin is Deputy Director of the Office of
Economic Security Policy in the Department of
State. He has been closely associated with Mr.
Paul in the conduct of the negotiations with a
Delegation of the Swiss Government. Mr. Ru-
bin's duties in the Department of State have con-
cerned questions of German holdings in other
countries, and he participated in the Potsdam Con-
ference as a member of the staff of Ambassador
Edwin W. Pauley.
Confirmations
Philippine War Damage Commission
On May 22, 1946 the Senate confirmed the nomi-
nations of Francisco A. Delgado, Frank A.
Waring, and John S. Young to be members of the
Philippine War Damage Commission.
956
DEPARTMENT OF STATE BULLETIN
U. S. and British Governments To Consult With
Arah Leaders on Palestine'
[Released to the press May 21]
The Department of State announced on JVIay 21
that the Government of the United States, in con-
junction with the British Government, has taken
steps to initiate the consultations with Jewish and
Arab leaders regarding Palestine to which both
Governments have been committed.
Instructions were issued to American represen-
tatives in the Near East to furnish on May 20
copies of the Report of the Anglo-American Com-
mittee of Inquiry to oeitain governments and
organizations, together with copies of a memoran-
dum outlining this Government's position in the
matter, and to state that this Government would
ajjpreciate receiving within thirty days the views
of the interested parties relative to the Report.
Concurrent action has been taken by British rep-
resentatives at the Near Eastern capitals. On
May 20, the Department of State also addressed
letters to cei'tain American organizations, which
have shown a particular interest in the problem
of Palestine, with a similar request for their
views.
The governments and organizations whicli the
American Government has approached in this con-
nection are: The governments of Egypt, Iraq,
' The Department of State has been asked the question
whether the statement of May 10 of the then Acting Secre-
tary of State regarding the initiation of consultation with
Jews and Arabs on the recommendations of the Anglo-
American Committee of Inquiry on Palestine represents
a withdrawal from the statement issued by the President
on Apr. 30.
In reply the Department said on May 22 that there is no
conflict and can be no conflict in the two statements. It
must be clear that the President's statements are con-
trolling upon all the departments of government. In his
statement of Apr. 30 the President reaffirmed the urgency
of the transference of the 100,000 .Tews as recommended
by the Committee and previously by him.
It is precisely because of the urgency of this problem
that, under the direction of the President, the State De-
partment has agreed to and inaugurated immediate con-
sultations with Jews and Arabs as well as with the British
Government as the best and quickest means of reaching
an eifective solution of the problems dealt with in the
report.
Lebanon, Saudi Arabia, Syria, Trans-Jordan and
the Yemen, the Arab Higher Committee, the
League of Arab States, the Jewish Agency, the
American Zionist Emergency Council, the Ameri-
can Jewish Committee, the American Jewish Con-
ference, the American Council for Judaism, the
American Jewish Congress, the Institute for Arab
American Affairs, Agudas Israel of America, the
New Zionist Organization of America, and the
American League for a Free Palestine.
The Department's letters to the organizations in
this country and the memoranda transmitted by
this Government to the interested governments
and organizations listed above read as follows:
May 20, 1H6.
Sirs:
I am enclosing under instructions from the
President a copy of the report of the Anglo-
American Committee of Inquiry, together with
a memorandum outlining certain considerations
which have prompted the Government of the
United States to consult Jewish and Arab repre-
sentatives regarding this repoi't.
I should be glad to receive any comments or
suggestions which your organization may wish to
furnish regarding the various matters discussed in
the report of the Committee, and I need hardly
assure you that the views of your organization will
receive the close attention of this Government. It
would be appreciated if the comments and sugges-
tions of the interested parties, which it is hoped
may be of a constructive nature, might be received
within thirty days from today.
Very truly yours,
For the Secretary of State:
De.^n Acheson
Under Secretary
[Enclosure]
Memorandum
In inviting comments and suggestions on the
report of the Anglo-American Committee of In-
quiry, the Government of the United States desires
to make the following observations :
JUNE 2, 1946
957
1. The report is iidvisory in cliaracter ; conse-
quently, its recommendations are not binding.
However, the United States Government is giving
careful consideration to the report in view of the
standing of the members of the Committee, of the
fact that the report was unanimously approved by
them and of the fact that they were entirely free
to arrive at any conclusions which to them seemed
fair and reasonable. The United States Govei-n-
ment will also give careful consideration to the
views of the Governments and organizations
which it is now consulting. Judging from pre-
liminary reactions to the report in various quar-
ters, criticism is to be expected. In view of the
importance of this problem and the sincere desire
of the United States to arrive at a policy with
regard to Palestine which will be both humane
and just, this Government greatly hopes that the
general character and trend of the observations
and suggestions may, so far as possible, be of a
constructive nature.
2. By means of the participation of American
citizens in the work of the Committee, and
through the present consultation, the Government
of the United States is seeking information and
assistance looking to the formulation of its policy
on severaJ difficult and complex problems. It
readily recognizes that other Governments and
organizations will have their own respective atti-
tudes in regard to these questions which may or
may not be similar to the attitude which shall be
adopted by the United States. The United States '
Government is grateful for the cooperation and
help which have already been accorded to the
Committee of Inquiry and hopes that assistance
and collaboration will continue to be forthcoming
as tliese matters develop. The United States
Government, for its part, will be prepared at all
times to reciprocate to the best of its ability the
many courtesies which have been afforded to its
citizens and representatives by the interested gov-
ernments and gi'oups.
3. The interest of the United States in the
questions considered in the report is believed to
be legitimate and is based upon the following :
(a) Compassion for and a desire to assist vic-
tims of Nazi and Fascist persecution, both Jews
and non-Jews.
(h) The fact that for a number of years
American citizens have been contributing sub-
stantial assistance to the upbuilding of the Jewish
National Home in Palestine, and that there is
every I'eason to expect that their interest will
continue.
(c) The deep interest which the American Gov-
ernment and its citizens have in maintaining and
promoting mutually beneficial and harmonious
relations between the United States and the coun-
tries of the Near East in the political field, in
education and other cultural activities, in trade,
and in economic development.
( d) The value placed by the United States upon
the contributions which the Near Eastern coun-
tries liave made and will doubtless continue to
make to the cause of world peace and prosperity
and to the upbuilding and effectiveness of the
international organization created for these pur-
poses.
4. This Government will be glad to receive
comments and suggestions regarding the report as
a whole or any part of it, and would be grateful
if these could be received, at the latest, thirty days
from today.
Shipments of Grain to India
[Released to the press May 24]
It has been said that the United States has sup-
plied no grain to India. This is incorrect, since
105,000 tons of grains and flours were shipped from
the United States to India during the first four
months of 1946 and further shipments of 59,500
tons of American grain to India are planned for
May. Shipments from the United States are pro-
grammed in the light of information developed in
discussions with representatives of other major
supplying countries concerning their export pro-
grams. American attempts to alleviate famine in
India and other countries are thus coordinated
with similar efforts by Great Britain and Canada,
Australia, and a number of other countries. A few
weeks ago the United Kingdom agreed to divert
shipments and reduce its stocks of wheat by 200,000
tons, thus making available 60,000 tons to India
alone. This was made possible only because the
United States guaranteed to replace, after July 1,
the amounts withdrawn from British supplies to
meet the present emergency. Geographic location
is, of course, an important factor in accounting
for the sources from which importing countries
obtain suj^plies. For example, a large poition of
958
Australian wheat goes to India rather than to
Europe, since the United States is nearer to Europe
than is Australia.
There appears to be a mistaken but wide-spread
belief in India that the Combined Food Board
agreed to make 1,400,000 tons of wheat and wheat
substitutes available to India during the first half
of 1946. No six months' allocation has been made
to any country, wheat shipments being pro-
grammed for a month at a time by the major
exporting countries on the basis of information
made available to the Combined Food Board and
its Cereals Committee. Belief that a 1,400,000-ton
allocation was made to India apparently arose
from a misunderstanding of a tentative wheat-dis-
tribution table under discussion but not formally
presented when the Government of India Food
Delegation met with the Combined Food Board in
March. It was explained at the time that the pro-
posed distribution table did not in any sense repre-
sent agreed figures of the Combined Food Board
Cereals Committee and was not to be regarded as
an allocation. In fact the tentative nature of the
table was indicated by its failure to present a com-
plete balance between available supplies and indi-
cated distribution.
In the Combined Food Board Rice Committee
the United States has collaborated with seven other
countries in planning the world distribution of all
significant expoi't surpluses of rice. The Govern-
ment of India has recently accepted membership on
this committee and is now participating directly
in its activities. The difficulties confronting this
group during the first six months of 1946 are indi-
cated by comparison of world import requirements
for this period of 3,454,000 metric tons of milled
rice with export availabilities of only one third as
much, namely 1,139,000 metric tons. Rice is the
major staple grain in the customary diet of a con-
siderable portion of the population of the southern
United States. Yet, for the months of April- June
when the United States had 133,000 metric tons
to allocate, it assigned only 23,000 to United States
civilians.
As announced on May 9,^ the United States has
associated itself with the Governments of Siam
and the United Kingdom in a Rice Commission
to supervise and expedite the orderly and maxi-
mum movement of Siamese rice exports in accord-
ance with Combined Food Board requirements.
' Bulletin of M.iy 19, 1946, p. SB.^.
DEPARTMENT OF STATE BULLETIN
In the Department's press release concerning the
Rice Commission, for the establishment of which
this government has been pressing for many
months, it was stated that :
"This Government from the first regretted the
principle embraced in this free-rice demand, and
has long felt that this was one of the most serious
impediments which has delayed the procurement
of Siamese rice so urgently needed in India, China,
Malaya, the Philippines, and other areas in the
Far East. This delay has been especially un-
fortunate as Siam is the only country in the Far
East with any substantial exportable surplus of
rice."
In addition it was pointed out that the United
States has been active and successful in arranging
for the supply of transportation equipment needed
to move Siamese rice, and for textiles badly needed
as an incentive for the production and marketing
of this rice so necessary in Far Eastern areas such
as India. The United States has also been active
in arranging for the transfer to Burma of trans-
portation facilities required for the movement of
Burmese rice.
The attitude of the United States Government
toward the Indian food situation was summarized
as follows in a recent communication from the
President of the United States to the Viceroy of
India :
"You may be sure that the gravity of the food
shortage in India is thoroughly recognized by the
United States Government and is receiving the
fullest and most sympathetic consideration on the
highest levels of the government."
Herbert Hoover To Visit
Other'American Republics
[Released to the press by the White House May 23]
At the request of President Truman, Mr. Herbert
Hoover', Honorary Chairman of the Famine Emer-
gency Committee, will leave Saturday, May 25, on
a trip to the other American republics. Included
in the party are —
Hugh Gibson, formerly American Ambassador
to Brazil, Belgium, and Poland :
Julius Klein, formerly Assistant Secretary of
Commerce ;
D. A. FitzGerald, U. S. Department of Agri-
culture food expert;
JUNE 2, 1946
959
Maurice Pate, an executive of the International
Red Cross ; and
Frank Mason, who will act as press assistant
for the party.
Mr. Hoover plans to arrive in Mexico City on
Sunday, May 26, and after spending several days
there, to proceed to Panama, arriving on the 29th.
The itinerary from that point will depend on
weather conditions, the progress of Mr. Hoover's
discussions, and other factors, but it is tentatively
planned to proceed down the west coast of South
America and return along the east coast of that
continent. It is expected that the party will return
to Washington about June 22.
In each of the countries visited, Mr. Hoover will
discuss ways in which the other American re-
publics may participate in alleviating the critical
famine conditions prevalent in large areas of the
world. This will include a review of the import
requirements of each country visited. In those
cases where surplus production is available, Mr.
ALLEN — Continued from page 927.
IV
The above discussion of the relationship between
regional systems and the world organization has
been confined to matters in the field of security,
because it is only in this field that the Charter
contains specific guides. It is silent on the powers
of and relations with regional arrangements and
agencies in the economic, social, and cultural fields.
Certain criticisms have been leveled at the Charter
for this omission.
It may, however, be pointed out that certain
indirect guides do emerge from the Charter for
solving problems of organizational relationship
between regional and world-wide agencies in other
than the security field. Not only may the pattern
of security relationships discussed be considered as
a general frame of reference for working out non-
security relations, but likewise those Articles (57
and 63) which provide for bringing world-wide
specialized organizations into relationship with
the United Nations through special agreements
with the Security Council may furnish helpful
analogy for the relations of regional agencies in
the economic, cultural, and other fields with both
their world-wide counterparts and the organs of
the United Nations themselves. However, the
Hoover will otTer each nation an opportunity to
make its full contribution to the relief of world
distress. The program that Mr. Hoover will dis-
cuss is a broad one, and he is confident that each of
the other American republics will want to share in
all ways that are available to them.
Transfer of Lend-Lease
Functions
On May 17, 1946 the President signed Executive
Order 9726 ^ transferring all functions with respect
to the maintenance of accounts and other fiscal
records relating to lend-lease and reverse lend-
lease matters from the Department of State to the
Treasury Department, which functions shall be ad-
ministered under the supervision and direction of
the Secretary of the Treasury. The Department of
State shall continue to administer all other func-
tions relating to the administration of the act
which are now under its jurisdiction.
complex of such agencies included, for example,
within the inter-American system suggests a host
of problems of relationship for which gradual
solutions will have to be found. It will be a task
primarily for the Economic and Social Council
to seek to mark out the general lines along which it
is believed that these relationships might be
worked out. With respect to inter-American
agencies, the Ninth International Conference of
American States will occupy itself with these
problems from the regional point of view.
Beyond these organizational problems of rela-
tionship in the non-security field, however, lie the
deeper issues of the economic and commercial
aspects of regionalism. Again the Charter, per-
force because it was setting up a political organ-
ization, does not touch upon these; and considera-
tion of this complex field is beyond the scope of the
present article. Nevertheless, a realization of the
significant role of economic factors in the con-
scious development or discouragement of tenden-
cies favoring or opi^osing a regional approach to
international security relations is necessary to
give perspective to the political and security
aspects of regionalism sketched in this discussion.
' 11 Federal Register 5437.
960
DEPARTMENT OF STATE BULLETIN
Invalidity of Commercial
Agreements
Czechoslovakia
The American Ambassador to Czechoslovakia
lias transmitted to the Department a translation
of a Notice of the Czechoslovak Minister of
Foreign xVffairs of February 4, 1946, as published
February 19, 1946 muler No. 27 of the Collection
of Czechoslovak Laws and Decrees, which declares
the invalidity of commercial agreements between
Czechoslovakia and enemy countries.
Tlie Notice declares tlint "all the commercial
treaties, agreements and conventions including
supiDlementary agreements and protocols between
(lie Czechoslovak Eepublic on one side and Ger-
many, Italy, Hungary, Finland, Bulgaria, Ru-
mania and Japan on the other side are considered
invalid since the outbreak of war and are, there-
fore, no more in effect in the territory of the
Czechoslovak Republic since the state of war ex-
isted with the signatories", and that "'all the com-
mercial treaties, agreements and conventions in-
cluding the supplementary agreements and pro-
tocols concluded at the time of serfdom by un-
constitutional organs exercising power in the ter-
ritory of the Czechoslovak Republic, are also
invalid."
Opportunity for Study at
the University of Montevideo
[Released to the press April 29]
The Department of State has recently been in-
formed by the American Embassy in Montevideo,
Uruguay, that the University of Montevideo has
approved a new statute which provides for the ac-
ceptance by the University of graduat« students
from the other American republics, including the
United States. This action of the University is
in response to an increased number of requests
from American students.
The University of Montevideo will accept quali-
fied xVmerican students for one oi' more courses and
will issue official certificates for the successful com-
jiletion of the courses.
Students interested in attending the University
of Montevideo under the provisions of this new
statute should apply direct to the University.
UNRRA Mission to Turkey
[Released to the press by UNRRA May 18]
A diplomatic mission of the United Nations Re-
lief and Rehabilitation Administration to Turkey,
whicli recently became the forty-eighth member
nation of UNRRA, is flying to Ankara to discuss
witli that country problems of supply and the best
means by which Turkey can cooperate with
UNRRA. The mission will also visit Egypt, Iraq.
and Iran to discuss similar matters with the gov-
ernments of those countries.
Headed by Cornelius Van H. Engert of Berke-
ley, Calif., acting diplomatic adviser, the mission
consists of Ira Hirschmann of New York, N.Y..
special consultant ; George Mason of Canada, sup-
ply negotiator and procurement coordinator; and
Jessie Stoiy of Canada, secretary.
Agriculturist To Visit in Other
American Republics
Skuli Rutford of St. Paul, Minn., is one of a
group of distinguislied educators who has received
a travel grant under the program administered by
the Department of State for the exchange of pro-
fessors and technical experts between this country
and the other American republics.
At present on leave from his post as Assistant
State Director of Extension in Minnesota, Mr.
Rutford will confer with agricultural officials and
teclmicians in certain Latin American countries
concerning current problems in the collaborative
programs between the United States and these
republics to promote production of complementary
and strategic crops. He will also consult with
such officials and technicians concerning the train-
ing of personnel in the technical phases of agri-
culture in order that the training program, as now
provided by extension for foreign nationals, can
be improved. He will also spend some time visit-
ing selected agricultural areas in order to famil-
iarize himself with the agricultural problems in
these countries. The program of activities for
Mr. Rutford lias been planned with the cooperation
of the United States Department of Agriculture.
Mr. Rutford will proceed to Guatemala for six
weeks and before returning to the United States
will visit El Salvador. Peru, and Mexico. He
expects to be gone approximately 18 weeks.
]LiSE 2, 1946
961
American Students To Partici-
pate in Archaeological Excava-
tions in Great Britain
[Released to tlie press May 21]
Tlirouj;li the American Council of Learned So-
cieties, the London Institute of Archaeology has
invited 25 American students to participate in
archaeological excavations which are to be made
in the "blitzed" areas of Great Britain, including
London, Canterbury, and Exetei'. The excava-
tions are to be made in the summer of 11)46 in order
that they may be completed before these areas are
rebuilt.
The London Institute of Archaeology offers to
provide for the students' expenses and accommo-
dations while in Great Britain, and at the conclu-
sion of the excavations the British Council invites
the students for a two-week tour of the United
Kingdom at its expense.
American students wishing to participate in the
excavations would have to leave the United States
not later than the middle of July and would have
to furnish their own transportation expenses to
and from Great Britain. Interested students
should communicate with the American Council
of Learned Societies, 1219 Sixteenth Street NW.,
Washington 6, D.C., in order to be considered for
inclusion in the group of American students going
to Great Britain.
Simon S. Kuznets To
Visit China
Dr. Simon S. Kuznets, professor of economics
and statistics at the University of Pennsylvania,
has been invited by the National Resources Com-
mission of China to visit China in June for a period
of four months in the capacity of Economic Ad-
viser and to assist the commission in research pol-
icies and projects and in the training of research
personnel. Dr. Kuznets, an expert on national in-
come statistics, is a vice-president of the American
Economic Association and a former vice-president
of the American Statistical Association. He
served as Associate Director of the Bureau of Plan-
ning and Statistics, War Production Board, during
1942 and 1943.
Since December five young Chinese economists
have been making preliminarj' studies, under the
direction of Dr. Kuznets, in preparation for his
vi.sit to China. These economists, having com-
pleted their graduate training at universities in
the United States, are returning to China to work
with the Xational Resources Commission.
Visit of Chinese Meteorologist
[Released to the press April o]
Dr. Jeou-jang Jaw (Chao Chui-chang), acting
director. Institute of Meteorology, Academia
Sinica, Chungking, China, arrived on March 31
for a six months' visit in the United States under
the Department's cultural-cooperation xerogram.
Dr. Jaw has been attending the International
Meteorological Conference at London for the past
month.
While in tliis country Dr. Jaw will visit uni-
versities and colleges, scientific institutions, and
weather observatories.
PHILLIPS — Continued from page 935
6. The government should accumulate and
maintain a strategic stockpile of natural rubber.
Tliis stockpile should Vie held wholly apart from
stocks in commercial channels and, except for ro-
tation requirements, should be retained for rubber
emergency use exclusively.
7. With the certain prospects of a changing
rubber situation, continuous review of the prob-
lem should be maintained.
The Interagency Policy Committee on Rubber
indicated in its report that there were several
areas in which further work needed to be done in
order to provide the mechanism for carrying out
its recommendations. It therefore proposed to
continue its work preparatory to issuing a sup-
plementary report on the following subjects :
1. The administrative method by which a min-
imum use of general-purpose synthetic rubber can
best be assured ;
2. Methods of assuring continuing research and
development ;
3. Further plans for plant disposal :
4. The recommended structure for national rub-
ber supervision, together with a moi'e precise defi-
nition of the proposed administrative, coordinat-
ing, and advisory functions.
962
U. S. Engineer To Serve in China
[Released to the press May 22]
Richiud C. Darnell, consulting engineer on in-
strument design and application, has been ap-
])ointed by the Department, imder its cultural-
tooperation program, to serve in China as u spe-
cialist in scientific instruments and laboratory
equipment. Mr. Darnell, organizer and president
of the Washington Instrument Society, was en-
gaged in development and research on instruments
for the Army and Navy during the war years. He
w as active in the formation of the National In-
strument Society and has lectured on physics,
ensrineerine, electronics, and instruments at the
George Washington, Catholic, and Maryland
Universities.
He is going to China, in response to a request
made to the Department by the Chinese Ministry
of Education, to assist in the selection of modern
scientific instruments needed to replace those worn
out or looted from luiiversities and research
organizations.
Mr. Darnell plans to leave for China early in
June and will remain for approximately six
months.
Visit of Paragnayan Pathologist
[Released to the press April 3]
Dr. Juan Boggino. former rector of the Na-
tional University, Asuncion, Paraguay, and at
present professor of pathology at that institution,
is visiting universities and medical centers in this
country at the invitation of the Department of
State, under its program of cultural cooperation
with the other American republics.
Dr. Boggino is interested in acquainting him-
self with medical schools, their organization and
methods of instruction, with university organi-
zation in general, and especially with work that
is being done in clinical pathology in this country.
During his three months' stay in this country
Dr. Boggino plans to visit universities and medi-
cal centers in Washington, D.C., Baltimore, New
York, Boston, Chicago, Ann Arbor, Minneapolis,
St. Louis, San Francisco, and New Orleans.
Dr. Boggino has served in his country in the
DEPARTMENT OF STATE BULLETIN
capacity of adviser to the National Department
of Hygiene, president of the City Council of
Asuncion, president of the Paraguayan section
of the League Against Cancer, and president of
the Rotary Club of Asimcion.
Physical Education Instructor
To Visit in Chile
Kenneth W. Davidson, of Oakland, Calif., has
been appointed visiting instructor in physical edu-
cation at the Catholic University in Santiago,
Chile. He is one of a group who has received a
travel grant under the program administered by
the Department of State for the exchange of pro-
fessors and technical experts between this country
and the other American republics.
John B. Biesanz Accepts
Professorship to Panama
Dr. John Biesanz of Winona, Minnesota, has
arrived in Panama, where he will serve as visit-
ing professor o,f sociology in the Inter- American
University at Panama. He will conduct classes
in introductory sociology and social psj'chology
in the Spanish language. Dr. Biesanz is one of
a gi-ouji of distinguished educators who have re-
ceived travel grants for visiting professorships
under the progi-am administered by the Depart-
ment of State for the exchange of professors and
technical experts between this country and the
other American rej^ublics.
Visit of Costa Rican Inspector
of Indian Schools
Humberto Miranda Vega, inspector of Indian
schools in Costa Rica, member of the National In-
dian Institute and o,f the Administrative Council
on Indian Affairs, is visiting Indian schools and
other centers interested in Indian problems in
this comitry at the invitation of the Department
of State.
JUNE 2, 1946
963
Anglo-Siamese Peace Treaty
PEACE AGREEMENT WITH SIAM
Text of the agreement terminating the state of loar hetween the United Kingdom and India on the one
hand and Siam on the other which was signed at Singapore January 1, 1946, as released iy the Foreign
Office in London January 1
Whekeas by a proclamation made in Bangkolc on the 16tli
August, 1945, the Regent of Siam did, in the name of His
Majesty tiie King of Siam, prochiim the declaration of
war made by Siam on the 25th January, 1942, against
the United Kingdom to be null and void in that it was
made contrary to the will of the Siamese people and in
violation of the Constitution and Laws of Siam, and
Whereas the proclamation of the 16th August 1945 afore-
said was the same day unanimously ajiproved by the
National Assembly of Siam, and
Wheeeas the Siamese Government have repudiated the
Alliance entered into by Siam with Japan on the 21st
December, 1941 together with all other treaties, pacts, or
agreements concluded between Siam and Japan, and
AVhereas the Siamese Government are anxious to play
their full part in mitigating the effects of the war, par-
ticularly in such measures as may be designed to assist
in the restoration of international security and general
economic welfare, and
Whekeas the Government of the United Kingdom and the
Government of India, in consideration of the acts of repu-
diation already carried out by the Siamese Government,
and not unmindful of the services rendered by the Re-
sistance Movement In Siam during the war with Japan,
desire to bring the state of war to an immediate end.
Now THEREFORE the Government of the United Kingdom
and the Government of India on the one hand and the
Siamese Government on the other being desirous of re-
newing the relations of close friendship which existed
before the war, Have resolved to conclude an agreement
for these purposes and have accordingly appointed as
their plenipotentiaries : —
Government of the United Kingdom of Great Britain and
Northern Ireland :
Mr. M. E. Denlng, C.M.G., O.B.E.
Government of India :
Mr. M. S. Aney
Siamese Government :
His Serene Highness Trince Viwatchai Chalyaut
Lieutenant-General Phya Abliai Songgram
Nai Serm Vlnlcchayakul
Who, having communicated their full powers, found in
good and due form, have agreed as follows : —
RESTITUTION AND READJUSTMENT
Article 1
The Siamese Government agree to repudiate all meas-
ures pursuant to the above-mentioned declaration of war
made on the 25th January, 1942, and to take the necessary
legislative and administrative measures to give effect to
that repudiation.
Article 2
The Siamese Government declare as null and void all
IJurported acquisitions of British territory made by Siam
later than December 7, 1941, as well as all titles, rights
properties and interests acquired in such territory since
that date either by the Siamese State or by Siamese sub-
.jects. The Siamese Government agree to take the neces-
sary legislative measures to give effect to the foregoing
declaration and in particular
(a) to repeal and declare null and void ab initio all
legislative and administrative measures relating to the
purported annexation by, or incorporation in, Siam of
British territories effected after the 7th December, 1941.
(6) to withdraw as may be required by the competent
civil or military authority all Siamese military personnel
from all such British territories and all Siamese oflScials
and nationals who entered these territories after their
purported annexation by, or incorporation in, Siam.
(c) to restore all property taken away from these ter-
ritories including currency except to the extent to which
it can be established that fair value has been given in
exchange.
(d) to compensate loss or damage to property, rights
and interests in these territories arising out of the occupa-
tion of these territories by Siam.
(e) to redeem in sterling out of former sterling re-
serves current Siamese notes collected by the British au-
thorities in British territory occupied by Siam since the 7th
December 1941.
Article S
The Siamese Government agree to assume responsibility
for safeguarding, maintaining and restoring unimpaired,
British property, rights and interests of all kinds in Siam
and for payment of compensation for losses or damage
sustained. The term "property, rights and interests" shall
include, inter alia, the oflScial property of the Government
of the United Kingdom and of the Government of India,
Ijroperty whose ownership has been transferred since
the outbreak of war, pensions granted to British nationals,
stocks of tin, teak anil other conunodities, shipping and
wharves, and tin, teak and other lea.ses and concessions
granted to British firms and individuals prior to the 7th
December, 1941, and still valid at that date.
964
DEPARTMENT OF STATE BULLETIN
Article 4
The Siamese Government agree to desequestrate Brit-
ish banking and commercial concerns and permit them to
resume business.
Article 5
The Siamese Government agree to accept liability, with
the addition of Interest, at an appropriate percentage, in
respect of payments in arrears, for the service of loans
and for payment of pensions in full since the date when
regular payments ceased.
SECURITY
Article 6
The Siamese Government recognise that the course of
events in the war with Japan demonstrates the impor-
tance of Siam to the defence of Malaya, Burma, India and
Indo-China and the security of the Indian Ocean and South
West Pacific areas and the Siamese Government agree to
collaborate fully in all international security arrange-
ments approved by the United Nations Organisation or
its Security Council which may be pertinent to Siam and
esi)ecially such international security arrangements as
may relate to those countries or areas.
Article 7
The Siamese Guvernment undertake that no canal
linking the Indian Ocean and the Gulf of Siam shall be cut
across Siamese territory without the prior concurrence of
the Government of the United Kingdom.
COMMERCIAL AND ECONOMIC COLLABORATION
Article 8
The Siamese Government agree to take all possible
measures to re-establish import and export trade between
Siam on the one hand and neighbouring British territories
on the other, and to adopt and maintain a good neighbourly
policy in regard to coastal shipping.
Article 9
The Siamese Government undertake to negotiate with
the Government of the United Kingdom as soon as prac-
ticable a new Treaty of Establishment, Commerce and
Navigation and a Consular Convention based on the recip-
rocal application of the principles in Article 11 below.
Article 10
The Siamese Government undertake to negotiate with
the Government of India as soon as practicable a new
Treaty of Commerce and Navigation based on the recipro-
cal application of the principles in the following Article.
Article 11
(1) Pending the conclusion of the Treaties and Conven-
tion referred to in Articles 9 and 10 above and subject to
paragraph (2) of this Article, the Siamese Government
undertake to observe the provisions of the Treaty of Com-
merce and Navigation signed at Bangkok on the 23rd
November 1937, and further undertake, except where the
Treaty specifically authorizes .such action, not to enforce
any measures excluding British commercial or industrial
interests or British professional men on grounds of na-
tionality from participation in Siamese economy and trade,
or any measures requiring them to maintain stocks or
reserves in excess of normal commercial, shipping, indus-
trial or business practice.
(2) The above-mentioned undertakings of the Siamese
Government (a) shall be subject to such exceptions, if
any, as may at any time be agreed to between the Govern-
ment of the United Kingdom or the Government of India, as
the case may be, and the Siamese Government; (6) shall,
unless prolonged by agreement, lapse if the Treaties and
Conventions referred to in Articles 9 and 10 have not been
concluded within a period of three years from the coming
into force of tliis Agreement.
(3) Nothing in this Article shall be deemed to preclude
the grant of equally favourable treatment to nationals
and enterprises of any or all other United Nations.
Article 12
The Siamese Government undertake to participate in
any general international arrangement regarding tin or
rubber which conforms with such principles regarding
commodity arrangements as may be agreed by the United
Nations Organisation or Its Economic and Social Council.
Article 13
Until a date or dates not later than 1st September 1947
the Siamese Government undertake to prohibit, except in
accordance with the recommendations of the Combined
Boards in Washington, or any successor body, and in the
case of rice, under the direction of a special organisation
to be set up for the purpose, any exports of rice, tin, rub-
ber and teak and to regulate trade in and stimulate
production of these commodities.
Article 14
The Siamese Government undertake to make available
free of cost at Bangkok to an organisation to be indicated
by the Government of the United Kingdom, and as quickly
as may be compatible with the retention of supplies ade-
quate for Siamese internal needs a quantity of rice equal
to the accumulated surplus rice at present existing in
Siam, subject to a maximum of 1% million tons, or, if so
agreed, the equivalent quantity of paddy or loonzain. It
is agreed that the exact amount of rice to be made avail-
able under this Article shall be determined by the organi-
sation above-mentioned and that the rice, paddy or loon-
zain delivered under this Article shall conform to the
agreed standards of quality to be determined by the same
authorities.
Article IS
Until a date not later than the 1st September 1947 the
Siamese Government agree to make available to the Rice
Organisation mentioned in Articles 13 and 14 all rice sur-
plus to the internal needs of Siam. Such rice, with the
exception of rice delivered free in accordance with the
undertaking given in Article 14, will be supplied in such
manner as the special organisation mentioned in Articles
JUNE 2, 1946
965
13 and 14 shall indicate and at ijrices fixed in agreement
with it, having regard to the controlled prices of rice in
other Asiatic rice-exporting areas.
CIVIL AVIATION
Article 16
The Siamese Government shall accord to the Civil Air
Services of the British Commonwealth of Nations by means
of agreements to be negotiated with Governments of
Members of the liritish Commonwealth of Nations treat-
ment in regard to establishment, maintenance and
operation of regular air services not less favourable than
that accorded to Imperial Airways by the Notes exchanged
at Bangkok on the 3rd December 1937.
WAR GRAVES
Article 17
The Siamese Government undertake to enter into an
agreement with the Government of the United Kingdom
and the Government of India for the mutual upkeep of
war graves with a view to the permanent establishment
and future care of British and Indian war graves and of
Siamese war graves in their respective territories.
MISCELLANEOUS
Article 18
The Siamese Government agree to regard as in force
such bilateral treaties between the United Kingdom and
Siam and India and Siam as may respectively be specified
by the Government of the United Kingdom and the Gov-
ernment of India, subject to any modifications the Govern-
ment of the United Kingdom or the Government of India
may indicate and to regard as abrogated any such treaties
not so specified.
Article 19
The Siamese Government agree to regard as being in
force between the United Kingdom and Siam and be-
tween India and Siam all multilateral treaties, conven-
tions or agreements concluded prior to 7th December 1941
(a) to which Siam and the United Kingdom or India,
as the case may be. were then and still are parties (6) to
whicli the United Kingdom or India, as the case may be,
was then and still is a party but to which Siam has not
become a party and which .shall be notified to the Siamese
Government by the Government of the United Kingdom or
the Government of India.
On the receipt of such notification the Siamese Govern-
ment shall immediately take the necessary steps, in ac-
cordance with the provisions of any such treaty, convention
or agreement to which Siam is not a coutr.acting party, to
accede thereto, or if accession is not possible, shall give
effect to the provisions thereof in respect of the United
Kingdom or India, as the case may be, by such legislative or
administrative means as may be appropriate. The Siamese
Government agree also to accept any modifications thereto
which may have come into effect in accordance with the
terms of such instruments since that date.
Article 20
Pending admission to any international organisation
set up since the 7th December 1941, being an organisation
of which the United Kingdom or India is a member, the
Siamese Government agree to carry out any obligations
arising out of, or in connexion with any such organisation
or the instrument constituting it, as may at any time be
specified by the Government of the United Kingdom or
the Government of India as the case may be.
Article 21
In consideration of the above undertakings made by
the Siamese Government, the Government of the United
Kingdom and the Government of India agree to regard
the state of war as terminated and to proceed at once
to the resumption of friendly relations with Siam and to
exchange of diplomatic representatives.
Article 22
The Government of the United Kingdom and the Gov-
ernment of India also undertake to support Siam's can-
didature for membership of the United Nations.
DEFINITIONS AND DATE OF ENTRY INTO FORCE
OF AGREEMENT
Article 23
It is agreetl b,\' the contracting parties tliat the term
"British" in this Agreement (1) when applied to physical
persons shall mean all subjects of His Majesty the
King of Great Britain, Ireland and the British Dominions
beyond the .seas, EmiJeror of India, and all per.sons un<ler
His Majesty's protection; (2) when applied to territory
shall mean any territory under His Majesty's sovereignty,
suzerainty, protection or mandate, as the case may be :
(3) when applied to legal persons shall mean all legal
persons deriving their status as .such from the law in
force in any such territory; and (4) when applied to
property, rights or interests shall mean the property,
rights or interests of persons specified under (1) or (3)
above, as the case may be.
Article 24
This Agreement shall enter into force as from to-day's
date.
In witness whekrof the undersigned have signed the
present Agreement and have affixed thereto their seals.
Done in triplicate at Singapore this 1st day of January,
in the 1946th year of the Christian Era, corresponding
to the 2,489th year of the Buddhist Era In the BnglLsh
language.
Great Britain and Northern Ireland
M. E. Dening
India
M. S. Aney
(This signature is appended in agreement with His
Majesty's Representative for the exercise of the
functions of the Crown in its relations with Indian
States.)
Siam
Viwat
Phya Abhai Songgram
Lieut.-Gen.
S. Vinicchayakul
966
DEPARTMENT OF STATE BULLETIN
EXCHANGE OF NOTES BETWEEN THE GOVERNMENTS OF SIAM AND AUSTRALIA'
Colonel A. J. Eastman to Prince Viwatchai Chaiyant
Commonwealth of Australia
SiNGAPOEE
1st January 19^6
Tour Sesiene Highness,
With reference to our discussions at Government House,
Singapore, on 11th., 15th., 19th., and 31st. December 1&45
and to the verbal agreement reached between us on the
last mentioned date, I have the honour to request, on be-
half of the Government of the Commonwealth of Aus-
tralia, that you forward to me a letter signed by yourself
and the other plenipotentiary members of your Delegation
confirming the undertaking of the (Tovernment of Siam
that it will :—
(1) take promptly all action necessary for the com-
plete repudiation of the declaration of war made against
Great Britain on 25th. January 1942, the Alliance with
Japan made on 21st. December 1041 and all measures oper-
ating to the detriment of Gke.\t Britain, Australia and
their Allies ;
(2) when called upon to do so at any time before 14th.
March 1946, conclude a treaty with the Government of the
Commonwealth of Australia
(a) certifying that the Government of Siam has taken
all action necessary for the complete repudiation of the
declaration of war, the Alliance and the measures referred
to in Clause 1 above and
(6) obliging the Government of Siam :—
(i) to assume responsibility for the maintenance and
good upkeep of all Australian war graves in Siam ;
(m) to assume responsibility for complying with the
directions of the Government of the Commonwealth
of Australia with respect to the well-being and
interests of all Australian residents detained or
interned in Siam since 8th. December 1941 :
(ill) to undertake full assistance in the apprehension
and punishment of persons guilty of war crimes
against Australians;
{ir) to assume responsibility for compensating the Gov-
ernment of the Commonwealth of Australia and
Australian citizens for all losses and damage sus-
tained by them directly or indirectly since 8th.
December 1941 in Siam or as a result of Siamese
activity outside Siam ;
(r) to undertake measures of regional, political and
economic cooperation consistent with the principles
of the United Nations Charter and designed to
ensure the security of South East Asia and the
South West Pacific area ; and
'Also included in the Siamese print of the above
agreement.
*N. B. For the enclosure mentioned see Formal Agree-
ment with Great Britain.
ivi) to carry out such of the obligations specified in the
formal agreement entered into this day between
the Government of the United Kingdom and the
Government of India on the one hand and the Gov-
ernment of Siam on the other (copy of which is
attached to this letter and initialled by me) * as
the Government of the Commonwealth of Aus-
tralia considers to be applicable in principle to
Australian policy and interests and requires the
Government of Siam to undertake.
Such treaty to oblige the Government of the Common-
wealth of Australia to terminate the state of war existing
between Austraua and Siam.
I have the honour to confirm that, upon the completion
of the action mentioned in Clause 1 above and upon the
coming into force of the treaty mentioned in Clause 2,
the Government of the Commonwealth of Australia will
be prepared to terminate the state of war existing between
it and the Government of Siam.
I avail myself of this opportunity to express to Your
Serene Highness the assurance of my high consideration.
A. J. Eastman
Plenipotentiary to the Government of the Com-
monwealth of Australia for the conclusion of
arrangements relative to the termination of the
state of war with Siam.
His Serene Highness
Prince Viwatohai Chaiyant,
Head of the Siamese Delegation,
Singapore.
Prince Viwatchai Chaiyant to Colonel A. J. Eastman
Singapore
1st January 1946.
Sir,
We have the honour to acknowledge your letter of 1st
January 1946 and to state that we are instructed by His
Majesty's Government to undertake on their behalf that
they will : —
(1) take promptly all action necessary for the complete
repudiation of the declaration of war made against Great
Britain on 25th January 1942, the Alliance with Japan
made on 21st December 1941 and all measures operating
to the detriment of Great Britain, Australia and their
Allies ;
(2) when called upon to do so at any time before 14th
March 1946, conclude a treaty with Government of the
Commonwealth of Australia
(o) certifying that the Government of Siam has taken
all action necessary for the complete repudiation of the
declaration of war, the Alliance and the measures referred
to in Clause (1) above, and
JUNE 2, 1946
967
(6) obliging the Government of Siam : —
(i) to assume responsibility for tlie luaiiitetiance and
good upkeep of all Australian war graves in
Siam;
(I'O to assume responsibility for complying with the
directions of the Government of the Common-
wealth of Australia with respect to the well-
being and interests of all Australian residents
detained or interned in Siam since 8th De-
cember 1941 ;
(m) to undertake full assistance in the apprehension
and punishment of persons guilty of war
crimes against Australians;
(iv) to assume responsibility for compensating the
Government of the Commonwealth of Aus-
tralia and Australian citizens for all losses and
damage sustained by them directly or indirectly
since Sth December 1941 in Siam or as a result
of Siamese activity outside Siam ;
{v) to undertake measures of regional, political and
economic co-operation consistent with the prin-
ciples of the United Nations Charter and de-
signed to ensure the security of South East
Asia and the South West Pacific area ; and
(r/) to carry out such of the obligations specified in
the Formal Agreement entered into this day be-
tween the Government of the United Kingdom
and the Government of India on the one hand
and the Government of Siam on the other, (copy
of which is attached to this letter and initialled
by us)* as the Government of the Common-
wealth of Australia considers to be applicable
in principle to Australian policy and interests
and requires the Government of Siam to under-
take.
Such treaty to oblige the Government of the Common-
wealth of Australia to terminate the state of war existing
between Australia and Siam ;
In this connection we have the honour to confirm that
His Majesty's Government has already taken all necessary
action to repudiate the declaration of war and the alliance
referred to in Clause (1) and all other treaties, pacts and
agreements between Siam and Japan ; and that in the in-
terval between the date of this letter and the conclusion
of the Treaty mentioned in Clause (2), His Majesty's
Government will take immediate steps, as far as possible,
to put into effect the terms set out in that Clause and in all
respects to act in accordance with their spirit.
His aiajesty's Government note that, upon completion
of the action mentioned in Clause (1) above and upon the
coming into force of the treaty mentioned in Clause (2),
the Government of the Commonwealth of Australia will
be prepared to terminate the state of war existing between
it and His Majesty's Government.
We avail ourselves of this opportunity to express to you
the assurance of our high consideration.
Viwat
Phta Abhai Sorggram
S. Vinicchatakul
Plenipotentiaries to the Oovcrnment of Siam
for the conclunion of arrangements relative to
the termination of the state of war between
Australia and Siam.
Colonel .\. J. Eastman,
Plenipotentiarj/ to the Oovernmeiit of the Common-
wealth of Australia.
*X.B. For the enclosure mentioned see Formal Agree-
ment with Great Britain.
Addresses and Statements of the Week
The President
The President
The Secretary ot State
Assistant Secretary Braden
Francis Russell
-\cting Director, Oflfice of Pub-
lic .\ffairs
Welcome to the Economic and Social
Council. Not printed
Statement made at the first meeting of F.-\0
on Urgent Food Problems. Printed
in this issue
Report on the Paris Conference of Foreign
Ministers. Printed in this issue
The Challenge of Liberalism. Text issued
as press release 336 of May 15; not
printed
On the subject of our economic foreign
policy. Text issued as press release
346 of May 21; not printed
Read by John G. Winant, V. S. Repre-
sentative, at the opening meeting
in Mew York on May 2.5
Meeting held in Washington on May 20
Broadcast on May 20 from Washington
Commencement address at Clark Uni-
versity. Worcester, Mass., on May
26
Made at the New Brunswick Forum at
New Brunswick, N. J., on May 21
968
DEPARTMENT OF STATE BULLETIN
Soviet-Mongolian Treaty and Agreement
The American Embassy at Moscow has trans-
mitted to the Department the texts of the Treaty
of Friendship and Mutual Assistance and the
Agreement on Economic and Cultural Collabora-
tion between the Union of Soviet Socialist Re-
publics and the Monjiolian People's Republic,
signed on February 27, 1946. The texts of the
treaty and agreement as published in the Moscow
News March 2, 1946, are as follows :
TREATY OF FRIENDSHIP AND MUTUAL ASSISTANCE
BETWEEN THE UNION OF SOVIET SOCIALIST
REPUBLICS AND THE MONGOLIAN PEOPLE'S
REPUBLIC
In view of the expiration of tlie ten-year term of
operation of the Protocol on Mutual Assistance con-
cluded between the Union of Soviet Socialist Republics
and the Mongolian People's Republic, the Presidium of
the Supreme Soviet of the USSR and the Presidium of
the Small Hural of the Mongolian People's Republic have
decided to convert the following Protocol of March 12,
1936, into a Treaty of Friendship and Mutual Assistance
valid for ten years :
"The Governments of the Union of Soviet Socialist
Republics and of the Mongolian People's Republic, in
view of the relations of invariable friendship which have
existed between their countries .since the liberation of
the territory of the Mongolian People's Republic in 1921
with the assistance of the Red Army from the detach-
ments of White Guards who were connected with the
armed forces which invaded the territory of the Union
of Soviet Socialist Republics, guided by the desire to
maintain the cause of peace in the Far East and con-
tribute to the further consolidation of the friendly rela-
tions existing between them, have decided to embody
in the present protocol the gentleman's agreement
existing between them since Nov. 27, 193-1, providing for
mutual support by every means in averting and iJre-
venting the threat of military attack, and also for
rendering each other assistance and support in case of
attack by any third party on the Union of Soviet Socialist
Republics or the Mongolian People's Republic, for which
purpose the present protocol is to be signed.
Article J
"In case of the threat of attack on the territory of the
Union of Soviet Socialist Republics or of the Mongolian
People's Rep\iblic by a third state, the Governments of
the Union of Soviet Socialist Republics and of the Mon-
golian People's Republic undertake immediately to
discuss jointly the situation that has arisen and to take
all such measures as might be necessary to safeguard the
security of their territory.
Article II
"The Governments of the Union of Soviet Socialist
Republics and of the Mongolian People's Republic under-
take in the event of the military attack on one of the Con-
tracting Parties to render each otiier every assistance,
including military assistance.
Arficle III
"The Governments of the Union of Soviet Socialist
Repulilics and of the Mongolian People's Republic deem
it self-understood that the troops of one of the Parties
stationed by mutual agreement on the territory of the
other Party, in fulfillment of undertakings under Article I
or II, will be withdrawn from the territory in question
without delay when the necessity for this is over, as was
tlie case in 192."> with regard to tlie withdrawal of Soviet
troops from tlie territory of the Jlongolian People's Re-
public."
The present Treaty comes into force from the moment
of its ratification, which must be effected within as short
a time as possible. The exchange of ratification instru-
ments will take place in Ulan Bator.
Unless one of the High Contracting Parties one year
prior to the expiration of the term of the present Treaty
gives notice of its desire to denounce the Treaty, it will
remain valid for the next ten years.
Done in Moscow, Feb. 27, 1946, which corresponds to
the 27th day of the second moon of the 36th year of the
Mongolian calendar, in two copies, each in the Russian
and Mongolian languages, both texts being equally valid.
On authorization of the Presidium of the Supreme Soviet
of the USSR.
V. MOLOTOV
On authorization of the Presidium of the Small Hural
of the Mongolian People's Republic.
CHOIBALSAN
AGREEMENT ON ECONOMIC AND CULTURAL COL-
LABORATION BETWEEN THE GOVERNMENT OF
THE UNION OF SOVIET SOCIALIST REPUBLICS
AND THE GOVERNMENT OF THE MONGOLIAN
PEOPLE'S REPUBLIC
The Goveriunent of the Union of Soviet Socialist Repub-
lics and tlie Government of the Mongolian People's Repub-
lic, considering that economic and cultural collaboration
between the Soviet Union and the Mongolian People's
Republic established since the time of the foundation of
the Mongolian People's Republic has proved extremely
fruitful and corresponding to the interests of both coun-
tries, have decided to conclude the present Agreement and
agreed on the following:
Ji\E 2, 194b
969
Article J
Both Contraetiiig Parties agree to develop and consoli-
date collaboration in the fields of economy, cultnre and
education existing lietween tlie Union of Soviet Socialist
Republics and the Mongolian People's Republic.
Article II
On the basis of the pivsent Agreement, anti in pursuance
iif it, separate treaties and agreements will be concluded
between the respective economic, scientitic, and c\iltural
and educational institutions and organizations of the
USSR and the Mongolian People's Republii-.
Article III
The present Agreement comes into force from the mo-
ment of its signing and will be valid for ten years.
Unless one of the Contracting Parties one year before
the expiration of the term of the present Agreement gives
notice of its desire to denounce the Agreement, it will
remain in force for the subsequent ten years.
Done in Moscow, Feb. 27, 1946, which corresixinds to
the 27th day of tlie second moon of the ?>6th year of the
Mongnlian calendar, in two copies, each in the Russian and
Mongolian languages, both texts being equally valid.
On authorization of the Goveriunent of tlie USSR.
V. MOLOTOV
Oil authorization of the Government of tlie Mongolian
People's Republic
CHOIBALSAN
The Department
Publications
Foreign Commerce Weekly
The following articles of interest to readers of the Bul-
letin appeared in the May 11 issue of Foreign Commerce
Weekly, a publication of the Department of Commerce,
copies of which may be obtained from the Superintendent
of Documents, Government Printing Office, Washington 25,
D. C, for 10 cents each :
"Shanghai Suffers From Onerous Living Costs", based
on reports from A. Bland Calder, commercial attach^.
American Consulate General, Shanghai.
"Iceland's Cooperatives", based on a report from Joseph
H. Rogatnick, economic analyst, American Legation,
Reylijavik.
The following article apjjeared in the May 25 issue:
•Brazilian Vegetable Oils Form Source of Big Trade",
by Kenneth Wernimont, agricultural commissi/jner, Amer-
ican Embassy, Rio de Janeiro.
Appointment of Officers
C. Tyler Wood, Special Assistant to the Assistant Sec-
retary for Economic Affairs, as the official in the Depart-
ment of State to represent the Assistant Secretary on
UNRRA affairs, effective March's, 1946.
Cecil Wayne Gray as Chief of the Division of Foreign
Service Personnel, effective April 1.5, 1946.
Frederick B. Lyon as Director of tlie Office of Controls,
effective April 29, 1946.
.lack D. Neal as Chief of the Divi.sion of Foreign .\c-
tivity Correlation, effective April 29, 1946.
Resignation of Stokeley W. Morgan
The Department of State announced on May 15 the
resignation of Stokeley W. Morgan as Chief of the Aviation
Division of the Office of Transport and Communications
Policy, to become effective June 15, 1946.
Departmental Regulations
232.1 Liaison Between the Department of State and the
National Archives: (Effective 3-1— 16 1
I Liaison Responsibility of the Division of Re-
search AND Publication (RP). The responsibility for
maintaining liaison with the National Archives is vested
in RP, and the Chief of RP serves as the Liaison Officer
for the Department and is a member of the National
Archives Council. With completion of the transfer of tlie
decimal file, 1910-1920, the liaLson activities of RP now
include various functions relating to the files of the De-
partment from 1789 to 1929, inclusive, which are in the
custody of the Division of State Department Archives
of the National Archives.
II Procedukes for the Use ok the Liaison Facilities
OF RP. Persons desiring to utilize the records in the
National Archives, or desiring to transfer or otherwise
dispose of records, will follow the procedures outlined
below :
A To obtain information or to borrow records from
the National Archives (including records from Govern-
ment agencies other than the Department of State), either
telephone or address a memorandum to the Archives
Liai-son Unit (KP).
B To request RP to perform research based on the
records now in the National Archives and to prepare
memoranda incorporating the results of such research,
either telephone or address a request to the Archives
Liaison Unit (RP).
C To arrange for the transfer of records to the
custody of the National Archives, either address a memo-
970
DEPARTMENT OF STATE BULLETIN
raudum to the Chief of RP or teleiihone the Archives
Liaison Unit (RP).
D To arrange for the preparation of disposal lists or
schedules of i-ecords for the purpose of obtaining authori-
zation for destruction or other disposal of records, either
address a memorandum to the Chief of RP or telephone
the Archives Liaison Unit (RP).
E To return records borrowed from the National
Archives, send the material to the Archives Liaison Unit.
Material from the decimal file, 1910-December 31, 1929,
borrowed from Records Branch, Division of Communica-
tions and Records (DC) prior to January 1946, will be
returned to the Archives Liaison Unit (RP).
232.2 Contacts With the Department of Justice Regard-
ing Immigration and Visa Matters: (Effective 5-1-46)
The responsibility for maintaining liaison with the De-
partment of Justice with regard to immigration and visa
matters is vested in the Visa Division. As questions con-
cerning these matters are of a highly teclmical nature and
require special knowledge of the rules and regulations as
well as a familiarity with the technical application of
these rules, all questions which are brought to the atten-
tion of other officers of the Department, either from for-
eign embassies or legations or from other sources, will
be referred to the Visa Division. Officers will not, in any
instance, contact the Department of Justice direct.
1S3.7 Passenger Shipping Committee (PSC): (Effective
5-1^6)
I Composition. PSC shall be composed of:
A Representative of the geographic (political) offices
of the Department.
B Repre.sentative of the functional (economic) offices
of the Department.
C Representative of the administrative ofBces of the
Department.
D Secretary provided by the Central Secretariat of
the Executive Staff Committees (ESC).
II Functions. The functions of PSC shall be as
follows :
A To coordinate all interests of the Department in
tlie procurement and allocation of passenger space on ocean
transijortation facilities.
B To establish and to enforce where necessary rela-
tive priorities among projects for use of such space, whicli
the Department may be called upon to sjionsor by reason
of public need, Congressional mandate, or essential
political or economic considerations.
C To take the necessary steps for the procurement
of space for approved projects.
D To establish where necessary relative priorities
among categories of passengers who might be accommo-
dated in space procured.
E To designate and provide representation of the
Department upon an interdepartmental committee which
will serve in a comparable capacity for the Federal Gov-
ernment as a whole.
III Matters Not Within The Scope Of Rbsi-onsibility
Of PSC. The Shipping Division (SD) and the Trans-
portation Section of the Division of Central Services
(CS/T) will advise the Committee on matters concerning
their respective fields whenever necessary. PSC shall not
concern itself with the following matters, which are the
responsibility of SD and CS/T, respectively :
A Questions of broad shipping policy.
B Aviation priorities and the procurement accom-
modations for the transportation of employees of the Der
partment or the Foreign Service and their effects. On
- facilities inbound to the United States CS/T shall check
with the Committee as to previous allocation before
authorizing space.
IV Pkocedure. The procedure outlined below will be
followed in the procurement and allocation of space for
ocean transportation for individuals, groups, or categories
of persons :
A Any officer of the Department desiring to initiate
a project for the procurement of ocean transportation fa-
cilities, or receiving from a source outside the Department
a request for assistance in such a project (whether or not
such a request is to be granted), shall notify the Secretary
of PSC in writing specifying :
1 Nature of project, including number, breakdown
by sex, nationality, and location of passengers.
2 Political, economic, or other factors weighing
for or against acceptance of project.
3 Proposed means of financing project in United
States dollars. If Departmental funds or financing are
concerned, the paper, must be concurred in by the Office
of Budget and Finance (OBP).
4 Recommendation as to urgency and merit of
project.
B Any officer of the Department desiring to request
of a field office special consideration for the transportation
of a designated individual, or individuals, shall, before
undertaking such action, consult the Secretary of PSC in
order to insure that any draft prepared to initiate action
shall conform in purpose, form, and content to the pro-
gram of the Committee ; he shall further insure that the
file contains a written record of such consultation with
the Secretary, whether consultation was by telephone or
memorandum. Arrangements for persons travelling out-
bound in accordance with orders issued by CS/T and
for seamen being repatriated by SD are excepted from
the foregoing provisions of this paragraph.
C The Division of Coordination and Review (CR),
the Division of Foreign Reporting Services (FR), and
the Distribution and Liaison Section of the Division of
Communications and Records (DC/L) shall make sure
that outgoing correspondence from the Department,
transmitted through their media, conform to the require-
ments of paragraphs IV A and B.
D Persons outside the Department desiring infor-
mation regarding the Department's program with respect
to passenger shipping shall be referred for such informa-
tion to the Secretary of PSC.
183.4 Policy Information Services: (Effective 3-22-46).
There will be maintained within the Department such
policy information services as will from time to time be
JUNE 2, 1946
971
determined by the Secretary or his Staff Committee as
necessary for the proper functioning of the Department
and of its missions abroad. The policy information serv-
ices will be distinct from the public information services
maintained under the supervision and guidance of the
public information and liaison officers of the Department,
and will in large part be based on classified information
nut available to the public and to the press.
I Functions. The policy information services will
include tlie :
A Circulation within each Office of such informa-
tional material as may, in the determination of each
Director, be necessary to the proper coordination and
functioning of his Office.
B Circulation among missions, and between the De-
partment and the missions of such informational material
a.s may be determined as necessary to the proper func-
tioning of the missions.
C Circulation between Offices within the Depart-
ment of such informational material as may be deemed
necessary for the proper coordination and functioning of
the Department as a whole.
D Circulation from the Offices to the Office of the
Secretary of informational material for the background
information of the Secretary, and through him, of the
I 'resident.
E Dissemination from the Office of the Secretary
and from his Staff Committee, of such policy decisions
and other developmental data as may be necessary for the
guidance of officers in the Department and of chiefs of
missions abroad.
F Exchange between U. S. Government Agencies of
material of mutual interest.
II Policy Information Committee.
A Functions. The Policy Information Committee
will :
1 Direct the organization of the policy informa-
tion services flowing out of the several Offices of the
Department for the use of officers both within the De-
partment and in missions abroad, and determine policy
as to the form and use of such services.
2 Review constantly the entire field of internal
information services, both classified and unclassified, in
whatever form.
a In carrying out its reviewing function, the Com-
mittee will have as its objective the maintenance of an
integrated series of concise, comprehensive and timely
information services both classified and unclassified,
meeting the individual requirements of the Secretary,
the Under Secretary, the Assistant Secretaries, Office
Directors, and Division Chiefs in the Department, and
ambassadors and ministers and their assistants in the
field.
3 Initiate action for the improvement of the en-
tire field of internal information services when such
action is deemed advisable.
4 The Chairman and Vice Chairman of the Com-
mittee, with such assistance as they may require, will
serve as Editorial Board of the Committee. The Board
will be charged with the task of collecting, collating,
and editing such informational material as may be use-
fully made known to U.S. missions throughout the
world, as well as, on an inter-Office basis, to appropriate
officers within the Department ; and in certain instances,
to high officers in other departments and agencies of
the Government. The circulation of this edited infor-
mational material may be in any one of several ap-
proved forms. In its work the Editorial Board shall
rely on and receive the full cooperation of the members
of the Policy Information Committee who shall see that
full information on the activities of their respective
offices is made available to it.
B Composition.
1 The Committee shall be composed of Policy In-
formation Officers, designated by the several Office
Directors to represent them on the Committee. Offices
above the administrative grade of Director's Office may
al.so, in their discretion, appoint reiiresentatives to the
Committee.
2 The Briefing Officer to the Secretary will be
Chairman of the Committee ; and his principal assistant,
who will act in his absence, will be Vice Chairman.
3 The Committee may .select its secretary and may
create such ad hoc subcommittees as from time to time
may be found necessary.
4 The Secretariat of the Committee will operate
administratively as a part of the Office of the Secretary.
5 The symbol of the committee will be S/I.
Ill Policy Infokmation Officers.
A Functions. The Chief Policy Information Officer
in the office of each Office Director within the Depart-
ment, responsible to and representing the Director will :
1 Maintain the fiow of policy information material
from the various Offices of the Department to the Brief-
ing Officer to the Secretary, and to the Editorial Board
of the Committee. Each Policy Information Officer
will carry on his activities within his office as a member
of the staff of the Director, working administratively
in such manner and with such assistance as the Di-
rector shall determine.
2 In addition to the maintenance of the services
set forth above, the Chief Policy Information Officers
and their staffs will fulfill such other related functions
within their Offices as their individual Directors shall
assign to them. Among these functions may be policy
liaison with other specified offices working in close col-
laboration with the Office ; office liaison on the policy
level with other departmental committees requiring
the representation of the Director ; and policy informa-
tion liaison with other departments or agencies of the
Government.
The Foreign Service
Confirmation
On May 3, 1946 the Senate confirmed the nomination
of Walter Thurston to be Ambassador Extraordinary and
Plenipotentiary of the United States to Mexico.
912
DEPARTMENT OF STATE BULLETIN
Training Announcements
Arrangements for Military and Naval
Attaches
The Divi.sicin of Tvaining Services has entered
into an arrangienient wltli the Military Intelli-
gence Service and the Office of Naval Intelligence
to assist in the orientation of military attaches
and naval attaches in the course of their prepara-
tion for field duty. It will be the responsibility
of the Training Division to make appointments
in the Department of State for the attaches to see
desk officers who can give them useful back-
ground and information in regard to their country
of assignment. Military and naval attaches will
also attend area seminars conducted by the Train-
ing Division and selected lectures in the Depart-
mental Orientation Series. Special conferences
may be organized to meet needs of some groups
of attaches.
Foreign Service Orientation Series
Edward Achesou. director of the school of for-
eign service, George Washington University, will
speak on "The Relation of the Foreign Service
to the National Welfare'", Wednesday, June 12,
at 9 a.m.. Room 474, Main State Department
Building. Dr. Acheson is very much interested
in the future development and growth of the For-
eign Service and in his capacity as director of
the school of foreign service at George Washing-
ton University is developing special courses for
candidates for the Foreign Service examinations.
Departmental Orientation Series
Isaac N. P. Stokes, former Solicitor of the War
Production Board and now Associate Chief, Divi-
sion of International Organization Alfairs, De-
partment of State, will speak on "The United Na-
tions". Tuesday, Jime 11, at 11 a.m.. Room 474,
Main State Department Building.
Contents — Contin ued
Cultural Cooperation pa^^.
(•pportuiiity for Study at the University of Montevideo . . 960
Agriculturist To Visit in Other American Republics . . . 960
American Students To Participate in Archaeological Exca-
vations in Great Britain 961
Simon S. Kuznets To Visit China 961
Visit of Chinese Meteorologist 961
U. S. Engineer To Serve in China 962
Visit of Paraguayan Pathologist 962
Physical Education Instructor To Visit in Chile .... 962
John B. Biesanz Accepts Professorship to Panama .... 962
Visit of Costa Ricau Inspector of Indian Schools .... 962
Training Announcements f72
PUBLISHED WITH APPROVAL OF DIHECTOR OF BUREAU OF THE BUDGET
U. S. GOVERNMENT PRINTING OFFICE: 1946
THE DEPARTMENT OF STATE
VOL. XIV, NO. 362
JUNE 9, 1946
Inter-American Military Cooperation
statement by THE SECRETARY OF STATE page 1001
U. S.-Frencli Economic and Financial
Agreements page 994
German Docnments on Hungary .... page 984
Pursuit of Happiness in the Economic and Social
World
By JOHN G. WINANT page 975
The Philippines Prepares for Independence
• Article by EDWARD W. MILL page 980
Vl^NT o^
for complete contents
see inside cover
THE DEPARTMENT OF STATE
BULLETIN
Vol. XI V. No. 362 •
Publication 2544
June 9, 1946
For Bale by the Superintendent of Documents
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 basis)
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 dei-elopments in the
field of foreign relations and on the
work of the Department of State and
the Foreign Service. The BULLbllN
includes press releases on foreign
policy issued by the If 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 u;ell 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
at the end of each quarter, as well as
legislative material in the field of inter-
national relations, are listed currently.
Am 19 1946
Contents
Economic Affairs
Agreements on Economic and Financial Problems Reached ^^se
by U. S. and Provisional French Governments .... 994
Inter-American Copyright Conference 992
Allied-Swedish Negotiations for German External Assets . 992
LLO: 28th (Maritime) Session of the International Labor
Conference 993
Release of Property of German and Japanese Refugees . . 1011
General Policy
The Philippines Prepares for Independence 980
Article by Edward W. Mill
Inter-American Military Cooperation 100]
Statement by the Secretary of State
Intergovernmental Refugee Committee: Exchange of Let-
ters Between Senator Vandenberg and Under Secretary
Achesen 1003
Protest to Rumania Against Non-fulfillment of Assurances
to Tripartite Commission 1007
Statement on Repatriation of Germans in Spain 1011
Letters of Credence: Minister of Ethiopia 1000
Occupation Matters
Far Eastern Commission 990
Consultation with General MacArthur on Japanese
Constitution 991
Report of Textile Mission to Japan 1009
Parcel Post Service to U. S. Zone in Germany 1012
German Documents
German Documents on Hungary 984
The United Nations
Pursuit of Happiness in the Economic and Social World. . 975
By John G. Winant
Meeting of the Security Council: Discussion of Soviet-
Iranian Matter 987
Remarks by the U. S. Representative 987
L^nited Nations Documentation 987
Resignation of Edward R. Stettinius, Jr.: Exchange of
Letters Between Mr. Stettinius and the President . . 988
International Trade Conference: Announcement by the
Secretary-General 988
International Organizations and Conferences
Calendar of Meetings 990
Activities and Developments 990
The Department
Surplus Property in Foreign Areas 1000
Responsibility for Institute of Inter-American Affairs and
lutcr-American Educational Foundation 1012
Remarks by Assistant Secretary Braden
Termination of President's War Relief Control Board . . . 1015
Statements, Addresses, and Broadcasts of the Week . . . 1010
Departmental Regulations: UNRRA Division; Board of
Examiners for the Foreign Service; Information from
Axis Archives; Authority of Foreign Liquidation Com-
missioner; Advice on Treaties; International Organiza-
tions Imnuuiities Act 1015
{Continued on page 1020)
JUNE 9, 1946
975
Pursuit of Happiness in the Economic and Social World
By JOHN G. WINANT
MAY I BEGIN by thanking yon for yovir kind in-
vitation to make my first public statement,
on returning- lionie, to the members of the Ameri-
can Association for the United Nations. I am very
Iiappy to do tliis because those who are gatliered
here liave been interested for a long time in world
cooj)eration to prevent war. Yon have known
M-hat it lias meant to represent minority opinion
as well as the privilege of accepting the convictions
of the majority.
Some years ago I sent to President Roosevelt a
quotation from John Stuart Mill which had been
given to me. He used it in a speech he made in
one of the Carolinas. There was some question at
the time as to the exactness of the quotation. I
myself was interested in the sense of it. There-
fore, with apologies for any inaccuracies which
were the outcome of reporting a century ago, I will
restate it as it was given to me :
"History shows that great economic and social
forces flow like a tide over communities only half
conscious of that which is befalling them. Wise
statesmen foresee what time is thus bringing and
try to shape institutions and mold men's thoughts
and purposes in accordance with the change that
is silently coming on.
"The unwise are those who bring nothing con-
structive to the process, and wlio greatly ijnperil
the future of mankind, by leaving great questions
to be fought out between ignorant change on one
hand, and ignorant oi^position to change, on the
other."
Last week I was talking with General Smuts,
whom I believe to be the great pliilosopher-states-
man of our time. I have always greatly admired
him because in defeat he had the magnanimity of
Robert E. Lee, and in reorienting the position of
South Africa, he faced and overcame the divided
ideologies there, the inherited diffei'ences of lan-
guage and of race, and brought into this recent war
a united Dominion, gallantly defending the rights
of free men. The statesmen of Europe had failed
to achieve such unity, and yet the brave leadership
of a wise man has proved that it could be done.
We were talking about the impact of modern
science on the lives of people everywhere and the
adjustments necessary to accommodate life to
global living. The cutting down of distance in
relation to time, both in communication and
travel, and the development of the atomic bomb
are two present and pressing examples of what
I mean. The first has brought peoples of differ-
ent languages, races, and continents into daily
contact with one another. The other has released,
through the advances of science, the power to de-
stroy the civilization of which it is a product.
We agreed this means that there must be an aware-
ness of changing values and the recognition of
new obligations if we are to realize the benefits
of a progi-essive civilization. The future calls
for a greater degree of tolerance and understand-
ing than has as yet been required of us and that
rare combination of restraint and pioneering drive
if we are to look forward to peace on earth.
We are trying to reconcile our different social,
political and economic standards. While there
is enough in the world for everj'one, there have
been great areas of want. We know that science
must aid us, not destroy us. Had atomic energy
come in the form of power plants instead of
bombs it would have given us confidence instead
of fear. AVe must have a world of hope and not
of fear.
Nine days from noAv the Economic and Social
Council of the United Nations meets here in New
York for its second session. To my mind, the
work of the Council is of fundamental importance
to the world's future.
It is the task of the Security Council — and one
which it has been shouldering squarely — to bring
An address delivered before the American Association
for the United Nations in New York Cit.v and broadcast
over the Columbia Broadcasting System on May 16, 1946.
Mr. Winant is U. S. Member of the Economic and Social
Council.
976
DEPARTMENT OF STATE BULLETIN
about the solution of political situations which
are likely to endanger international peace and se-
curity. Equally important is another task the
United Nations has undertaken — that of estab-
lishing a basis for a civilization in which imder-
lying economic and social difficulties are resolved
before they reach the stage of conflicts which may
threaten the peace, and that is the main job of this
Economic and Social Council.
While the Security Council is concerned pri-
marily with freeing the peoples of the earth from
fear, the Economic and Social Council deals more
directly with the rights of man — and that wide
area of human needs which is contained in the
phrase "freedom from want". The four freedoms
are, of course, interrelated. President Truman
said the other day :
"The roots of democracy, however, will not draw
much nourishment in any nation from a soil of
poverty and economic distress."
We know, and generations before us have known,
that economic and social injustice is closely bound
to political disturbances.
The Economic and Social Council is charged
with the positive and constructive work of deal-
ing directly with the basic needs of human be-
ings— and so with the foundations of jDeace itself.
Its task can be simply stated.
Peace, if it is to be real and lasting, means more
than resolving conflicts between nations. It means
jjositive action to lift the levels of human welfare,
for a world divided against itself cannot stand.
Resentment and fear are aroused in the hearts
of men by gross economic inequalities within coun-
tries and between nations. Resentment and fear
easily grow into hatred, and we have seen how
quickly these emotions can be played upon by the
unscrupulous to make a people go to war against
their fellowman.
In our age peace cannot be secured by political
action unaccompanied by economic cooperation.
If we are not to drift backward to catastrophe, we
must go forward together toward a fuller life for
all jDeoples everywhere.
By the Charter, we the peoples of the United
Nations have bound ourselves to take "joint and
separate action" to obtain these objectives.
We have undertaken to employ "international
machinery for the promotion of the economic and
social advancements of all peoples".
The composition and mode of operation of the
Economic and Social Council are thoroughly dem-
ocratic. It is composed of 18 nations, elected by
the General Assembly for terms of three years.
Each nation appoints its representative. Retiring
member nations are eligible for immediate reelec-
tion. Each member nation has one vote. Votes of
large and small countries are equal. Decisions
are taken by simple majority vote.
The Council under the Charter reports to the
Genei'al Assembly, and has powers to make recom-
mendations, to prej^are draft conventions, and to
call international conferences on the subjects with
which it deals. It may furnish information to the
Security Council and assist that Council upon its
request.
The Economic and Social Council has been made,
in brief, one of the principal organs of the United
Nations. I believe that this emphasis on human
progress and economic development is something
new in history. It is particularly significant that
in the first paragraph of the preamble of the
Charter — and I hope the words of that preamble
will become as familiar to every school child as
the words of the Declaration of Independence — the
United Nations affirm their faith — and I am quot-
ing— in "the dignity and worth of the human per-
son". This is more than the old language of
diplomacy.
The preparations made during the war by the
Allies for post-war economic and social reconstruc-
tion were by no means complete. But much more
was done before the war ended than was done dur-
ing the First World War, and the main lines were
firmly established. A number of specialized inter-
governmental agencies were planned, each to cover
a specific and limited economic or social subject.
In addition, the International Labor Office was a
survivor, and the only major survivor, of the
war period. The new agencies are the Food and
Agriculture Organization, the International Mone-
tary Fund, the AVorld Bank for Reconstruction
and Development, the Provisional Intei'national
Civilian Aviation Organization, the United Na-
tions Educational, Scientific and Cultural Organi-
zation, an international organization dealing with
health and one dealing with international trade.
The last two are not yet established, but confer-
ences have been called with a view to their estab-
lishment.
The Economic and Social Council has a direct
JUNE 9, 1946
977
interest in tlie work of these specialized agencies,
and one of the major tasks assigned to it under
the Charter is coordination of the agencies.
President Roosevelt realized that in reaching
out to the peoples of the world on an international
basis you had to start with a common denominator
of interest. He believed that food was the best
common interest on wliich to begin the work of
establishing international, economic, and social
cooperation, and he called the Hot Springs con-
ference of 1943 which led to the formal establish-
ment of the permanent Food and Agriculture
Organization at Quebec in 1945. The wisdom of
tliis action has been demonstrated by recent events.
The Organization right at the beginning of its
existence has called a special conference to meet
in Washington, May 20, to grapple with a des-
perate world food shortage which constitutes the
gravest economic problem immediately facing the
world. The first task of the new Organization
is to assist in removing the danger of outriglit
starvation over large areas of the world, and the
success of all other forms of international economic
and social cooperation depends on the solution of
the present world food crisis. Wlien this is ac-
complished, the Organization will take up its long
run tasks of assisting in the prevention of star-
vation and all forms of malnutrition and thereby
increase the demand for agricultural products and
raise the incomes of those engaged in agriculture,
which still employs a greater number of persons
than any other industry. The International Mone-
tary Fund is designed to tide over temporary bal-
ance of payments difficulties. If the Fund had
been established at the end of the last war, we
might have escaped tlie serious international finan-
cial crisis in the early thirties, which set in motion
a chain of new restrictions on international ex-
change and the movements of goods across
frontiers and which prolonged the widespread un-
employment of the thirties. Tlie countries which
had immediate deficits in tlieir balance of pay-
ments but which were solvent from a longer-run
point of view would have been able to obtain liquid
funds to meet the immediate emergency.
The International Bank for Eeconstruction and
Development will facilitate the provision of capital
for purposes of reconstruction and long-term eco-
nomic development. It should play a particularly
important part in raising standards of living and
purchasing power in countries whose resources are
as yet in an early stage of development and develop
a larger volume of trade between them and the
older industrialized countries. If the Bank had
been established after the last war we should have
had a more intelligently directed flow of invest-
ment funds tliau tliat which occurred in the twen-
ties. The Provisional International Civil Avia-
tion Organization is already in operation with
headquarters in Montreal. Its purpose is to make
possible the orderly and coordinated expansion of
civil aviation around the globe.
The constitution of the United Nations Educa-
tional, Scientific and Cultural Organization was
framed in London by 44 states last year, and
UNESCO will come into existence upon acceptance
of that constitution by 20 nations. Its purpose is
to encourage cooperation among nations in all
branches of intellectual activity, to facilitate ex-
change of scientific information, and to promote
uuitual understanding through such mass media as
the press, radio, motion pictures. The Interna-
tional Labor Organization, which I had the honor
of serving as director, has been in existence a far
longer time. The ILO was created at the Peace
Conference of 1919, and it has directly influenced
the labor and social legislation of many countries
for over 20 years by sending qualified experts to
assist the governments concerned. Through its
annual conferences of representatives of govern-
ments, employers, and workers it has promoted
international agreement on industrial safety and
welfare and other conditions of work and employ-
ment. Effective action resulted from these agree-
ments when the countries concerned ratified the
conventions recommended by the conference and
in effect bound themselves by treaty to adopt legis-
lation implementing them.
The Economic and Social Council at its first ses-
sion set up a Preparatory Commission to prepare
the ground for an international health conference
to be held in June. The Commission has com-
pleted its report i-ecommending the establishment
of a world health organization, and this report will
be considered at the Council's forthcoming ses-
sions. The date of the international health con-
ference has been fixed for June 19, and the Con-
ference will be held in New York. At that time
another specialized agency will be organized which
will develop services to figlit epidemics and pro-
mote the international advance and exchange of
medical and public-health knowledge and
techniques.
The Economic and Social Council took steps a<^
978
its first meeting also to initiate a conference on
trade and employment. It recognized the relation-
ship of employment to trade. It appointed a Prep-
aratory Commission for a full conference and it
put forward suggestions concerning the subject
matter to be covered. The outcome of these steps
is of profound importance to the world's future.
The whole structure of international economic or-
ganization which has already been set up will stand
or fall on the ability of the nations which take part
in future conferences to reach agreement on meas-
ures which will strike off the chains which have
shackled the exchange of goods and services be-
tween nations in the recent past. The advantages
of Bretton Woods would be largely nullified if the
trade conference failed in its purposes.
The trade problem is not simply a matter of re-
ducing tariffs. The restrictions on trade have gone
much further than tariffs alone, and means must
be found of progressively eliminating the strangle-
hold of quantitative restrictions on imports. We
must also recognize that there are differences be-
tween the social systems of coimtries which give
rise to differences in the methods of trading. Some
countries have adopted, in whole or in part, state
trading in respect to imports or exports or both,
and this necessitates international agreement con-
cerning the principles and methods of state trad-
ing, particularly with a view to removing suspicion
that discrimination and favoritism might be ex-
ercised under cover of such trading.
It is also proposed that the conference and the
International Trade Organization should take up
two further subjects which have not always been
recognized as directly bearing on trade barriers
but which in fact have marked effects on trade
policy and practices. First, there is the question
of "burdensome world surpluses" of certain raw
materials. In the past, wide fluctuations in the
prices of certain raw materials have been an im-
portant factor in business instability, and the ac-
cumulation of unsold stocks has led to restrictions
and sometimes to dumping without regard to the
general international welfare. Second, there is the
question of restrictive practices by private business
in respect to commodities which enter into inter-
national trade. Such activities may run counter
to tlie publicly declared policies in the countries in
which they occur, and we cannot afford in the
future to ignore them in the formulation of inter-
national commercial policy agreements. Agreed
iieasures are necessary to insure that the purposes
DEPARTMENT OF STATE BULLETIN
of the future international trade organization are
not frustrated by private monopolistic action.
One of tlie first examples of international eco-
nomic cooperation was in the field of international
relief. The United Nations Relief and Rehabili-
tation Administration was set up in 1943 as a
temporary organization whose functions were to
supply tlie goods and services necessary for imme-
diate relief and early rehabilitation in Europe and
the Far East. No agency has ever before carried
out relief operations on such a scale or procured
and shipped relief goods in such quantities.
UNRRA also provides the staff for the majority
of the assembly centers in Germany and Austria
in which the millions of persons who were up-
rooted from their homes during the war and forced
into other localities and other countries have been
housed. The work of repatriating the displaced
persons and refugees has been strikingly success-
ful but some 800,000 or 900,000 still remain in
assembly centers outside their countries of origin
in the care of UNRRA and the militarj^ authori-
ties.
The Economic and Social Council at its first ses-
sion set up a special committee on refugees and
displaced persons which has been meeting in Lon-
don to draw up a report for the forthcoming ses-
sion of the Council. Among otlier aspects of the
subject, the committee has considered what form of
international organization is needed to handle the
problem of refugees and displaced persons when
UNRRA's activities terminate.
The Economic and Social Council, when it meets
May 25, will also have before it reports of six of its
commissions, which have been meeting here in New
York. They are the Economic and Employment
Commission ; the Temporary Social Commission :
the Temporary Transport and Communications
Commission ; the Statistical Commission ; and the
Commission on Hvmian Rights with its subcommis-
sion on the status of women.
I shall have time to point out the potential im-
portance of just two of these commissions, that on
human rights and the Economic and Employment
Commission. International action in the basic
field of human rights is a new departure in history.
It was considered of such importance by the f ram-
ers of the Charter that this is the only Commis-
sion which the Economic and Social Council was
specifically directed to create. I should like to
pay tribute to the consultants to the United States
]UNE 9, 1946
979
Delegation in San Francisco who played an im-
portant 2iait in getting this provision in the
Charter.
The ultimate aim of tliis commission is to bring
into existence an international Bill of Rights for
all peoples. The United States has proposed and
the Commission will recommend that as an effec-
tive start toward this objective the second session
of the Economic and Social Council set up a sub-
commission on freedom of information. Tliis
body would determine just what obstacles exist to
that free flow of information which is essential to
enliglitened world public opinion and how these
obstacles can be eliminated. The right of all peo-
ple to know has long been a part of our tradition.
The importance of higher standards of living,
continuous economic development, and full em-
ployment in the maintenance of a peaceful world
was recognized by the Economic and Social Coun-
cil when it created the Economic and Employ-
ment Commission. Its main task is to advise the
Council on the promotion of world-wide full em-
l^loyment and the maintenance of economic sta-
bility.
Nor has the Council overlooked the importance
of the welfare of those millions in the underde-
veloped parts of the world, who have had to strug-
gle for mere existence. The Economic and Em-
plo\inent Commission has been given the further
mandate of advising the Council on ways and
means of assisting the development of the econo-
mies of these areas. It is to concern itself also
with the immediate problem of the economic re-
construction of devastated ai'eas so that the peo-
ples of these countries may be aided in hastening
their return to a decent basis of life.
This Commission has been direct and specific
in its approach to its problems. It has inter-
preted its aims as "continual world economic ex-
pansion and reasonable economic stability and se-
curity", a goal which in the words of its report
to the Council implies "employment opportunity
at adequate wages for all who desire to be em-
ployed".
The Commission's investigations and surveys
will center around this primal"}^ end and to as-
sure itself that its work will fit into the practical
realities of the modern world, it is recommending
to the Council that it be technically equipped so
as to be able to advise individual countries in the
development of their resources and in improving
their methods and patterns of productions.
These and the other four Commissions have been
concerned in their meetings in organizing and de-
veloping their recommendations to the second ses-
sion of the Council regarding the work which
should be undertaken in these specialized fields.
These Commissions must deal with important
matters of substance and therefore they are com-
posed of specialists in their respective fields.
The Economic and Social Council named these
commission members because of their competence
as experts to bring their independent judgment
to bear on world problems from a world, rather
than a national, point of view. They serve in
their individual capacity and are not bound by
any instructions from, their governments. The
four distinguished United States citizens who are
serving on these commissions are Mi's. Eleanor
Roosevelt on the Commission on Human Rights,
Mr. Isador Lubin on the Economic and Employ-
ment Commission, Mr. Stuart Rice on the Statis-
tical Commission, and Mr. George P. Baker on the
Temporary Transport and Communications Com-
mission.
There are two other important organizational
matters which the second session of the Council
will take up. One is the report of its committee
on negotiating specific agreements with the major
specialized intergovernmental agencies so that
they may be brought into effective relation with
the Council.
And the other is a similar report of the com-
mittee on arrangements with certain non-govern-
mental organizations. This cooperation is pro-
vided by article 71 of the Charter which is a
direct bridge between the formal organs of the
United Nations and the peoples of the world.
This committee will begin its sessions May 20
to arrange the way for such private groups to co-
operate with the Council, and insure that the
Council will benefit by the experiences of organi-
zations which do not represent governments, but
which reflect the aspirations of gi'oups of people
directly.
Tlie major objectives we seek to attain can be
no more clearly stated than by the Charter of the
United Nations. I quote them from the Charter :
"Higher standards of living, full employment,
and conditions of economic and social progress and
development ;
(Continued on, page 1010)
980
DEPARTMENT OF STATE BULLETIN
The Philippines Prepares for Independence
Article by EDWARD W. MILL ^
ON July i one of the most unique and fruitful
experiments in the history of dependent gov-
ernments will enter on a new and decisive stage.
On that day the United States, which has exer-
cised sovereign power over the Philippines for
almost half a century, will voluntarily relinquish
its sovereignty, and the Philippines will be pro-
claimed an independent nation.
From the moment of the silencing of Dewey's
guns in Manila Bay to the present the United
States has made it abundantly clear that it was
not in the Philippines for purposes of exploitation
but that rather it very clearly envisaged the day
M-hen the Philippines would be declared an inde-
pendent nation. The instructions given by Presi-
The Pattern of Philippine -American
Relations
dent McKinley to the First and Second Philippine
Commissions concerning the course to be estab-
lished by the Commission in establishing civil
government in the Islands set a pattern for gov-
ernance of the Philippines which was to be fol-
lowed closely during the next 48 years. In his
instructions to the Second Commission, the Presi-
dent warned that "the commission should bear in
mind that the government which they are estab-
lishing is designed not for our satisfaction, or for
the expression of our theoretical views, but for the
happiness, peace, and prosperity of the people
of the Philippine Islands. . . ." -
On August 29. 1916, a decisive step of impor-
tance in the granting of self-govermnent to the
Filipinos took place when the Jones law became
etfective. In the Jones law, the Congress of the
1 Mr. Mill is Acting Assistant Chief of the Division of
Philippine Affairs, Office of Far Eastern Affairs, Depart-
ment of State.
' Instructions of the Presiilent of the United States to
the Second Philippine Commission, Apr. 7, 1000.
'Organic Act for the Philippine Lslands, Public Law
240, 64th Cong., approved Aug. 29, 1916.
United States stated that ''it is, as it has always
been, the purpose of the people of the United
States to withdraw their sovereignty over the
Philippine Islands and to recognize their inde-
pendence as soon as a stable government can be
established therein'".^
In 1931 the Congre.ss recognized that the Philip-
pines was ready for the independence promised in
the Jones law. The Tydings-McDuffie act of that
year provided for a final ten-year transitional pe-
riod, at the end of which time the Philippines was
to be given its outright independence. During
that transitional period the Philippines was to
enjoy virtual autonomy in the conduct of most of
its domestic affairs. The United States continued
to retain control over all foreign affairs of the
Philippine Commonwealth.
As a result of that act the Filipinos met in a
Constitutional Convention to frame a new Consti-
tution. This new Constitution was duly framed
and ratified in a national plebiscite by the Filipino
people. It is to be noted that this Constitution
was intended to be not only the fundamental law
of the Philippine Commonwealth but also that of
the Republic to be established on July 4, 1946. The
Constitution is the "Constitution of the Philip-
pines", not simply the "Constitution of the Philip-
pine Commonwealth", and the President is re-
ferred to as the "President of the Philippines", not
simply of the Philippine Commonwealth.
Impact of the War on Philippine-
American Relations
Although Philippine-American relations were
close before the war, since that time the two coun-
tries have been brought closer together than ever
before. The heroic joint sacrifices of the two
peoples on Bataan and elsewhere during the early
clays of the war and the subsequent bitter resistance
of the mass of the Filipino people to the Japanese
occupation amply justified the faith of the United
JVI\IE 9, 1946
981
States in the capacity of the Filipinos for self-
government. President Koosevelt, taking cogni-
zance of the contributions of the Filipino people to
the common effort, declared on December 28, 1941
that "the people of the United States will never
forget what the people of the Philippine Islands
are doing this day and will do in the days to come.
I give to the people of the Philippines my solemn
pledge that their freedom will be redeemed and
their independence established and protected." *
Throughout tiie war years the President reiterated
this pledge to the Filii^ino people, and on October
6, 1943 the President in a message to the Congress
recommended that authority be given him to ad-
vance the date of Philippine independence. Con-
gress acted on this request by passing Public Law
380 (approved June 29, 1944), which authorized
the President, "after proclaiming that constitu-
tional processes and normal functions of govern-
ment have been restored in the Philippine Islands
and after consultation with the President of the
Commonwealth of the Philippines, to advance the
date of the independence of the Philippine Islands
by proclaiming their independence as a separate
and self-governing nation prior to July 4, 194G."
Though Public Law 380 was never employed to
advance the date of the independence of the Phil-
ippines, it was fitting recognition of the part of
the Congress and President of the United States
that the Filipino people had earned their right to
indejjendence even before July 4, 1946.
Restoration of Civil Government
to the Philippines
Shortly after the return of American forces to
the Islands in October 1944, the Philipi^ine Com-
monwealtli Govermnent took over the responsi-
bility for civil government in the Islands. Follow-
ing the liberation of Manila, after one of the most
vicious battles of the war, the Philippine Com-
monwealth Government, headed by President Ser-
gio Osmeiia, returned to its pi-e-war seat of govern-
ment.
The Philippine Congi'ess, meeting for the first
time in four years, assembled in special session in
June 1945. President Osmeiia addressed the Con-
gress asking for cooperation in a program of re-
construction and rehabilitation. Philippine re-
covery, however, continued at a slow pace, and
sharp political divisions, particularly over the col-
696662 — 46 2
laboration question, tended to divert attention
from the more pressing economic problem.
April Elections
The Congress of the United States in Public
Law 258 of December 14, 1945 and the Philippine
Congress in Commonwealth Act 725 of January 5,
1946 provided for the holding of the first general
election in the Philippines since 1941. As a result
some three million Filipinos went to the polls on
April 23, 1946 to vote on the question of who should
be President of the Philippines during the next
four years and who should represent them in the
Philippine Congress.
Manuel A. Eoxas, President of the Senate and a
leader in Philippine politics for many years,
emerged as the choice of the Philippine electorate
for President, though his rival, the incumbent
President, Sergio Osmeiia, polled a substantial
number of votes. Elected along with Roxas was a
Philij^pine Congress wliich was believed to be gen-
erally sympathetic with his aims.
One of the first acts of the new President-elect
of the Philippines was to come by air with U. S.
High Commissioner McNutt to the United States
for conferences with President Truman and other
American officials on the many pressing problems
facing the Philippines as a result of independence.
The Philippines Faces Independence
1. Economic Adjustment
Foremost among the problems facing the Philip-
pines has been the question of economic rehabilita-
tion and reconstruction. Tlie war brought tremen-
dous destruction and dislocation to the nation's
economic life. Manila, the capital city, was virtu-
ally destroyed. High Commissioner McNutt,
summing up the economic dislocation in the
Islands, said on February 23, 1946: "The Jap-
anese shattered that Philippine economy. . . .
Today there are no crops for export. There is
almost no economy. The sources of income for
local government have been virtually wiped out.
The currency tied by law to the American dollar
is sound, but values are unbelievably inflated.
Communications among the 7,000 islands of the
Philippines are still paralyzed." ^
' BuiXETiN of Jan. 3, 1942, p. 5.
" Radio address by Paul V. McNutt, Feb. 23, 1946. For
another graphic description of the damage brought to the
982
DEPARTMENT OF STATE BULLETIN
In the face of this disaster to the economic life
of the countiy, assistance from tlie United States
has been imperative. The recent passage by the
Congress of the United States of the Philippine
Trade Act (Public Law 371— H.E. 587G) and
the Philippine Rehabilitation Act (Public Law
370— S. 1610) has provided such assistance. The
Trade Act provides for free trade between the
Pliilippines and the United States for eight years
(to 1954), after wliich incoming Philippine prod-
ucts ai'e to be taxed at the rate of 5 percent pro-
gressively over a span of 20 years until at the end
of the period full duties are being assessed Philip-
pine goods. The Rehabilitation Act provides for
the granting to Philippine war-damage claimants
of $400,000,000 in war damages, provides for the
disposal to the Commonwealth Government (and
Republic) without reimbursement of $100,000,000
in surplus property, and for the spending of
$120,000,000 in various rehabilitation and training
projects."
These bills represent an important start in le-
habilitating Pliilippine economy, but they must
first be implemented with other action before be-
coming fully effective. The Trade Act, for ex-
ample, before becoming generally effective, must
PiuUiipines liy the war see the Repoi't on the rhilifiiiine
Islautlss by Senator Millard Tydings made after his return
from the Islands on June 7, 1945 ( S. Doc. 53, 79th Cong.).
" Both these acts are exceptional from the standpoint of
reguhir American policy. President Truman, in a state-
ment on the occasion of his signing H.R. 5S76 and S. 1610
on Apr. 30, 1946, declared:
"In H.R. 5876, we are providing for the establishment,
tlirough an executive agreement, of an unprecedented plan
of preferential trade relations witli the Philippines to last
for twenty-eight years. We have never entered into simi-
lar agreement with any foreign government: Preferential
trade relations are alien to the policy of this administra-
tion. In substance, however, H.R. 5876 is a rehabilita-
tion act. Its sole purpose and guiding philosophy is to
furnish a formula for the rehabilitation of the Philippine
national economy. . . ."
Likewise the House Committee on Insular Affairs in
reporting out S. 1610 stated :
"This legislation is unique in .\merican history. Never
before has the United States Government appropriated
funds to pay war damages suffered by its citizens or
natiimals in war. But United States relations with the
Philippines are likewise unique not only in our own his-
tory, but in the history of the world. Never before has
a .sovereign voluntarily granted independence to a colonial
dependency. S. 1610 recognizes that unique relation-
ship. . . ." (See H. Rept. 1921, 79th Cong., 2d sess.)
first be translated into an Executive agreement.
Sec. 401 of title IV of the Trade Act authorizes the
President of the United States to enter into such an
agreement, and succeeding sections carefully de-
fine the mode and manner of the agreement to be
effected.
Since certain sections of the Trade Act, par-
ticularly those (title III, sec. 341) concerning the
future rights of United States citizens and business
enterprises in natural resources, make necessary the
amendment of the Philippine Constitution and
have as a result come in for heavy criticism in
some quarters in the Philippines, some uncertainty
has resulted regarding the attitude to be taken
by the Filipinos towards this Executive agreement.
President-elect Roxas in his press conference in
Washington on May 11, 1946, stated that one of
the purposes of his visit to the United States was
the "implementation of the legislation passed by
j'our Congress" and indicated that the trade
formula provided for in the Trade Act "is. in
general, acceptable to us." On his return to Manila
on May 22, General Roxas is also reported to have
defended the trade legislation as the best legisla-
tion that could be devised and passed by the United
States at this time. Speaking of the so-called
"equal rights" provision, the President-elect is re-
ported to have declared : "The Americans have had
equal rights with the Filipinos since they have been
here. If their intention had been to exploit the
country as imperialists they would have done it
while they owned our country. How can you feel
now that they are preparing to exploit us after
independence? We can adjust our own laws to
prevent that." Meanwhile attempts are being
made to reach a mutually satisfactory agreement
on the Executive agi-eement in question.
At the same time that the Trade Act awaits im-
plementation to become full}' effective the Rehabil-
itation Act stands in need of similar implementa-
tion to become effective. Title YI of the
Rehabilitation Act stij^ulates that "No payments
under Title I of this Act in excess of $500 shall be
made until an executive agreement shall have been
entered into between the President of the United
States and the President of the Philippines, and
such agreement shall have become effective
according to its terms, providing for trade re-
lations between the United States and the
Phililipines . . ." This stipulation means that
i^ayment of claims for war damage in excess of
Jl^E 9, 1946
983
$500 must await the conclusion of the aforesaid
Executive agTcement jarovided for under the Trade
Act." Similarly title III of the Rehabilitation Act,
which authorizes an expenditure of $120,000,000
and certain additional sums for the restoration and
improvement of public property and essential
public services in the Philippines, is incomplete
without Congress next actually appropriating the
funds for the projects already authorized. It is
believed, however, that congressional assent to
tliese appropriations will not be long in coming.
Although these Acts (370 and 371) are vitally
important in the rehabilitation of the Philippine
economy, they represent in actuality but a start
in the restoration of Philippine economy. It will
take many years before the wartime economy of the
Philippines achieves anything like normalcy.
During this time the Philippines will undoubtedly
make efforts to diversify and reorient its economy,
and attempts will be made to shift the Philippines
away from its position of almost absolute depend-
ence on the American market.
2. Treaty Arromgements
In addition to economic preparations for inde-
pendence, intensive political preparations are be-
ing made. The Tydings-McDufhe act contains a
number of provisions relating to the establislnnent
of the independent Philippine Republic. Among
these are provisions calling for the recognition
on the part of the United States of the independ-
ence of the Philippines as a separate and self-
governing nation, notification to other governments
by the United States of such independence and
provision for the assumption by the Philippine
Republic of all continuing obligations assumed by
the United States under the treaty of peace ceding
the Philippine Islands.
It is expected that the foregoing and other pro-
' President Truman in his statement of Apr. .''.0, 1946
concerning the Rehabilitation Act minimized the impor-
tance of tliis provision of the act, however, declaring:
"While it is nnfortunate that the Congress saw fit to
provide in S. 1010 that no war damage payment in excess
of $.500 shall be made until the executive agreement shall
have been entered into betwen the President of the United
States and the President of the Philippines under the
terms of H.R. 5876, to all practical purposes this provision
is surplusage, as the benefits which will flow under the
enactment of these two bills are so great as to ensure exe-
cution of the executive agreement b.y the Republic of the
Philippines."
visions will be included in a treaty of general re-
lations to be concluded between the two countries.
This treaty, incidentally, will be somewhat of a
pioneer treaty since examples of the voluntary re-
linquishment by one power of sovereignty over
another are not i^lentiful.
In addition to the basic treaty of general rela-
tions between the two countries, a number of other
treaties defining the relations between the two
countries will be drawn up. Among the most im-
jDortant of this group will be a treaty of friendship,
commerce and navigation. This treaty will cover
such matters as the ownership of personal prop-
erty, the ownership of real property, succession
to property, freedom of commerce and navigation,
recognition of the juridical status of corporations,
and shipping matters.
As a result of Pul)Iic Law 380 of the U. S. Con-
gress which authorizes the President of the United
States to negotiate with the President of the
Pliilippines for the retention of militarj^ bases in
the Philippines and Joint Resolution No. 4 of the
Joint Session of the Philippine Congress of June
22, 1945 which concurs in such negotiations, dis-
cussions have been held concerning the conclusion
of some military-base agreement between the two
countries.
The more usual treaties will also be entered into.
These include a consular convention, an extradi-
tion treaty, an arbitration treaty, and others.
Since by the very nature of the constitutional
requirements involved, it will not be possible to
have all these treaties ready by July 4, it is thought
probable that a provisional agreement covering in-
terim relations between the two countries pending
the coming into force of the regular treaties will
be signed on July 4.
3. Foreign Affairs of the New Republic
Although the United States has allowed the
Filipinos a great measure of self-government dur-
ing our 48 years in the Islands, this country has at
all times retained control over the foreign affairs
of the Philippines. The new Republic will con-
sequently be greatly lacking in experience in this
field.
In an effort to meet the need for trained Filipino
Foreign Service officers after independence the De-
partment of State has for some time been conduct-
(Oontinued on page 10 H)
984
DEPARTMENT OF STATE BULLETIN
German Documents on Hungary
Foreign Office Memorandum
Berlin, September 16, 1938.
The Hungarian Minister informed me on his
visit of today that Field Marshal Goring had in-
vited him to come today to Karinhall. The prin-
cipal reason for this invitation was the Field
Marshal's impression that Hungary was not doing
enough in the present crisis. The Hungarian press
was keeping comparatively silent. In the Hun-
garian minority areas in Czechoslovakia it was
completely cahn in contrast to the situation in
the Sudeten German areas, and the Hungarian
Ministers in the various cajsitals were not, in con-
trast to their Czechoslovakian colleagues, going to
visit the Foreign Minister two or three times a day.
Finally neither the Hungarian Government nor
the leaders of the Hungarian minorities had clearly
demanded the surrender of the Hungarian areas
by Czechoslovakia. The Hungarian Minister de-
fended himself against these charges, but had by
his own admission acknowledged that they were
partially true by presenting, at the same time,
certain reasons for the Hungarian conduct.
The Field Marshal then returned to the inatter
of Hungarian-Yugoslav relations. He told the
Hungarian Minister that he, the Field Marshal, as
the second ranking personage in the state, could
give him the definite assurance that Yugoslavia
would remain quiet if Hungary took no military
action on the first day, but only after three or four
days. He, Herr Sztojay, indicated that he was
skeptical of this view. He could not see why Yugo-
slavia would, in case of a Hungarian attack, on the
first day regard it as a case under the treaty of
alliance and take military steps, but, on the con-
trary, would not do so on the third or fourth day.
The Field Marshal told him, however, that in a
conversation with a Yugoslav personality —
The.se are translations of documents on Hungary, se-
cured from German Government files, and are among the
German official papers which the Bulletin is currently
publishing.
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.
whom he did not name — he had gotten complete
assurance on the point. In this connection I in-
formed the Hungarian Minister in strict confidence
that according to a telegram from our Ambassador
at Rome, the Yugoslav Minister in that capital, on
orders of Stojadinovitch, had expressed himself
in a similar fashion to the Italian Government
concerning which Budapest had already been in-
formed by Count Ciano.
The Field Marshal finally gave Herr Sztojay
almost as complete information about the Berchtes-
gaden conference as had been set forth in the in-
formation telegrams to our own missions. The
Field Marshal seemed to have given Herr Sztojay
no information beyond that.
The Hungarian Minister, after the conversation,
telephoned to Budapest and talked with Herr
Csaky and, in the course of the afternoon, received
orders from Herr Kanya to make -the following
statement to the Field Marshal and at the same
time to the Foreign Ministry :
1. The Hungarian press and the Hungarian
national elements in Czechoslovakia would, from
then on, be more active, especially the Hungarian
press would, in the next few days, express itself in
much diffeient terms than previously.
2. The Hungarian Ministers in Prague and
London would be ordered to inform the Govern-
ments there that Hungary demanded a popular
decision in the Hungarian minority areas. He,
Sztojay, had received the same orders for Berlin,
and he made use of the interview with me to carry
out this commission. He was also ordered to bring
\rp the point both with the Field Marshal and also
at the Foreign Ministry, of whether the Fiihrer
could not do something to indicate that he re-
garded the Hungarian demands as his own also.
Thereupon I told the Minister that it would
naturally be difficult for the Fiihrer to speak for
other national elements in the same way as for the
Germans.
3. Between Hungary and Poland complete un-
derstanding prevailed. In that connection Herr
Sztojay remarked, in the course of the conversa-
tion, that Poland was making no demands for Slo-
JUNK 9, 1946
985
vakia, but only for the territory of Teschen and
for certain limited frontier adjustments in Slo-
A^akian territory, concerning which agi-eements
could be made regarding the details. It was as-
sumed that Slovakia would receive a considerable
degree of autonomy within the framework of the
Hungarian state.
The Hungarian Minister will carry out this com-
mission in an interview with the Field Marshal
tomorrow (Saturday). It was his intention to
travel to Budapest Saturday night and to arrive
liere again on Monday. Woermakn
Foreign Office Memorandum
Berlin, September 2J, 1938.
Counselor of Legation Briicklmeier just in-
formed me by telephone about yesterday's inter-
view between the Fiihrer, Premier Imredy and
Foreign Minister Kan3'a.
The Fiihrer first made objection to the Hun-
garians about the undecided attitude of Hungary
in the present crisis. He, the Fiihrer, was de-
termined to settle the Czech question, even at
the risk of a world war. Germany demanded all
German territories. He was convinced that Eng-
land and France would not move. It was now the
last minute for Hungary to join in, as otherwise
he would not be in a position to look out for Hun-
garian interests. In his opinion it would be best
to destroy Czechoslovakia. Certainly this air-
plane mother ship in the heart of Europe could not
be endured permanentlj'. He urged the Hunga-
rians (1) to demand a plebiscite in the territories
requested by Hungary, (2) to give no guaranty
of any sort for the possible new boundaries of
Czechoslovakia. If necessary Hungary should
threaten to withdraw from the League of Nations
and to create irregular troops (Freikorps). The
Czechoslovakian question would be settled by the
Fiihrer in three weeks at the most. Premier Im-
redy answered that the pace of the settlement sur-
prised Hungary. In Hungary a solution within
one or two years had been expected. In the mean-
time the Hungarian minorities had alreadj- asked
for a plebiscite and the Hungarian Government
would back u^d this request. In addition, Hungary
would start militarj^ preparations at once, but
these could be only partially completed within two
weeks. Regarding the attitude of Yugoslavia
Premier Imredy declared the present regime there
was weak, but the Francophile military class
would have to be taken very seriously. Perhaps
something could be accomi^lished there by money
and threats.
The Fiihrer declared further that he had made
the German demands on Chamberlain with brutal-
ity. In his opinion the only satisfactory solution
would be military action. There remained the
danger that the Czechs might accept everything.
Prime Minister Imredy declared that Hungary
would only guarantee a new Czechoslovakian
boundary if all Hungarian demands were met.
The Fiihrer declared that Germany would give
no guaranty unless all the states concerned
agreed. In the further course of the conversation,
the Fiihrer amplified the German position by ex-
plaining that such a possibility could exist only
after the solution of all problems, including that
of the Iglau language enclave. The Fiihrer then
again declared that he had presented the German
demands at Godesberg in the most brutal manner.
In case disorder should break out in Czechoslo-
vakia over the question, he would take military
action. It would be better, however, if the pretext
should be given by Czechoslovakia.
Erich Kordt
Telegram from the German Foreign Minister
to tfte German Minister in Hungary
Venice, June 16, 1941, 9: 40 j). m.
No. 552 of June 15.
For the Minister personally.
I would like you to inform the Hungarian
Premier as follows :
In view of strong grouping of Russian troops
on the eastern German frontier it would appear
that the Fiihrer by the beginning of July at the
latest will be forced to clear up definitely the
German-Russian relations and in that connection
to make certain demands. As the outcome of such
negotiations cannot be foreseen, the German Gov-
ernment regards it as necessary that Hungary on
her part should likewise take steps to secure her
frontiers.
The foregoing request is of a strictly confidential
character. I request that you briiig this also to
the attention of the Hungarian Foreign Minister.
RiBBENTROP
986
DEPARTMENT OF STATE BULLETIN
Telegram from the Office of tJie Foreign Min-
ister aboard Hitler's Special Train to the For-
eign Ministry
Special Train, January 17, 194^, •0; 10 a. m.
[Received January 1,7, 2 : 35 a. ra.]
No. 75 of January IG, 1942.
Teletype to the Ministerbiiro.
There follows the text of the minutes of the con-
versations of tlie Reich Foreign Minister in Buda-
pest from January 6-1), 1942.
In the course of the conversations with the Hun-
garian Regent as well as with the Minister Presi-
dent Bai'doss}' fx'om January 6-9 of this year, the
Reich Foreign Minister went into the following
subjects with the Hungarian Government :
1. The Reich Foreign Minister declared to the
members of the Hungarian Government the abso-
lute certainty of victory held by the Reich Gov-
ernment. At the same time, however, he showed
them that as a result of the course of development
of the war and especially through the common
struggle against Bolshevism, there had arisen a
commimity of European destiny which must be
considered in the handling of all questions affect-
ing both their countries. The Reich Foreign Min-
ister, in that connection, Iiad especially emphasized
the necessity of finally beating down Bolshevism
during this year, in which struggle, as in the past
year, tlie German armed forces would again have
to take the leading role and would have to make
the necessary sacrifices connected therewith. That
brought with it, for the armies of her Allies, the
obligation of cooperating to the best of their abil-
ity. Proceeding along this line of thought the
Reich Foreign Minister advanced the request tliat
Hungaiy, in the present year, should make avail-
able her entire Army for the realization of the
goals which had been set.
Regent Horthy and Minister President Bar-
dossy, after several discussions concerning the
matter with the other members of the Hungarian
Government, on the last day of the conference gave
the Reicli Foreign Minister the answer that Hun-
gary could not make her Army 100 percent avail-
able for the eastern campaign, but she was ready to
go to the extreme limit of her capabilities, with the
intention of participating in the campaign to a
far greater extent than previously. Details about
the strength of the Hungarian participation were
not gone into, but were left to the forthcoming
meetings between the military authorities, espe-
cially to the approaching visit of Field Marshal
Keitel in Budapest.
The entire course of the conversation with the
Hungarians on these matters took place in an ex-
tremely friendly spirit. Before the Hungarians
were readv to commit themselves to makino; their
Army available to a far-reacliing extent, it was,
however, necessary to sjDeak rather emphatically
since, on the part of the Himgarians, every possible
objection to participating unreservedly in the
eastern campaign was brought forward, especially
the presence of Rumania in the field.
2. The Hungarian-Rumanian question was not
gone into thoroughly. However, the Reich For-
eign Minister emphasized the necessity of uncondi-
tional observance of the Vienna Award and asked
the Regent for the explicit promise that Hungary
would not undertake anything against Rumania.
3. The Reich Foreign Minister also discussed
with the Hungarian Minister President the ques-
tion of making available 20,000 Yolksdeutsche
from Hungaiy for the Armed SS. The Minister
President indicated that he was not opposed to this
request in principle. He considered it necessary,
liowever, to consult the other members of the
Hungarian Govermnent. The result of this con-
sultation appears already in the telegram from
Budapest, No. 49 of January 15, in an affirmative
sense.
4. Finally the Reich Foreign Minister pointed
out to the Hungarian Minister President the
necessity of appreciably increasing the deliveries
of oil from Hungary to the Reich in comparison
with deliveries up to this time. The Hungarian
Minister President expressed himself in a favor-
able sense on this point also, but he stated that the
Hungarian Government alread}- was doing all that
it could in this direction and would continue to
do so.
Weeer, Ministerbiiro
Telegram from the German Foreign Minister
to the German Minister in Hungary
Special Train, Jamiain/ 19, 19^2, 7 :10 p. m.
No. 93 of January 19, 1942 [Relayed to Budapest
as No. 123].
{Continued on page 0S9)
The United Nations
Meeting of the Security Council
DISCUSSION OF SOVIET-IRANIAN MATTER
Remarks by the U. S. Representative ^
I would like to suggest that the Council again
defer action on the Iranian matter. My Govern-
ment does not feel that the Council has sufficient
basis for taking definite action today. In view of
the conflicting reports relating to the current
troubled situation in Iran, and in view of the
record of the Soviet-Iranian difficiilties and differ-
ences, my Government would consider it most un-
fortunate for the Security Council at this time to
drop the Iranian question from the list of matters
on which the Council is seized.
It will be recalled that in the Council's resolu-
tion of 4 April the Council requested the Soviet
Government and the Iranian Government to re-
port by 6 May whether the withdrawal of all Soviet
troops from the whole of Iran had been completed.
The Soviet Government has made no report to the
Council and no statement on this subject. The
Iranian Government has been unable until today to
report any official findings as to Azerbaijan. It has
today made a report which on its face value is not
complete since it deals with only a portion of the
province of Azerbaijan.
I would like to pause a moment to read from the
telegram submitted to us by Ambassa'dor Ala, in
which it is stated that "The telegraphic reports are
to the effect that no trace whatsoever of Soviet
troops, equipment or means of transport was found
in certain localities and that according to trust-
worthy local people who were questioned in all
these places, Soviet troops evacuated Azerbaijan
on 6 May."
I wish to point out that the statement has been
made relative to only five communities in the
western part of Azerbaijan by trustworthy local
people. In the view of my Government, that is not
conclusive evidence, nor the final, definite, specific
evidence that we felt was to be submitted to the
'Made by Edward R. Stettinius, at the foity-third meet-
ing of the Security Council on May 22.
Council at the time that the Council last deferred
this Iranian matter.
Moreover, we must bear in mind that the pres-
ence of Soviet troops on Iranian territory has
been only one of the subjects which has been a mat-
ter of dispute between the Soviet and Iranian
Governments. For these reasons my Government
earnestly believes that the Security Council should
postpone further consideration of the matter at
this time.
I wish to add that my Government, as is well
known, has followed developments in the Iranian
matter with the greatest concern and has recently
been giving careful consideration to requesting,
upon its own initiative, an investigation by the
Council of the situation in northern Iran in order
to assist the Council to determine whether the con-
tinuance of the situation there is likely to endanger
international peace and security.
I do not want to suggest at this time however
that the Council take action along this line. I do
wish to emphasize the feeling of my Government,
that it is most desirable that the Council continue
to remain seized of the Iranian matter, indicating
thereby its continuing concern in this potentially
dangerous and as yet unclarified situation.
United Nations Documentation
To give a more complete picture of the work of
the United Nations, including the present sessions
of the Security Council and other bodies, and to
supply convenient reference, the Bulletin prints
certain available documents. The Statement by
the Delegations of the Four Sponsoring Govern-
ments on Voting Procedure in the Security Council
of June 7, 1945 as reprinted in the Bulletin of
May 19, 1946, p. 851, was first announced in San
Francisco as Document 852, III/1/37 (1), dated
June 8, 1945 (See Bulletin of June 10, 1945,
p. 1047) and is also Security Council Document
S/Procedure/79 May 4, 1946.
987
988
DEPARTMENT OF STATE BULLETIN
International Trade Conference
ANNOUNCEMENT BY THE SECRETARY-GENERAL
Mr. President and Members or the Economic and
Social Council :
The Economic and Social Council approved a
Resolution on 18 February 1946, concerning the
calling of an International Conference on Trade
and Employment.
As you know, paragraph 1 of this Resolution
stated that the Conference would be called in the
latter part of 1940. Paragraph 2 concerned the
constitution of a Preparatory Committee to elabo-
rate an annotated draft agenda, including a draft
Convention, for consideration by the Conference.
Finally, paragraph 5 requested the Preparatory
Committee to report to a subsequent session of the
Council recommendations regarding the date and
place of the Conference, as well as other important
points.
In view of the scope and complexity of the pre-
paratory work which will be necessary before the
International Conference on Trade and Employ-
ment can be held, it will not be possible to hold the
Conference until next year. A decision must, how-
ever, be taken now in connection with the calling
together of the Preparatory Committee; I have,
therefore, the honor to announce that arrangements
are being made for the Preparatory Committee of
the Conference on Trade and Employment to meet
in London on the 15th of October next, so that a
further constructive step may be taken towards
freeing the productive forces of the world.
Resignation of Edward R. Stettinius, Jr., as
U. S. Representative to U. N.
EXCHANGE OF LETTERS BETWEEN MR. STETTINIUS AND THE PRESIDENT
[Released to the press by the White House May 31]
Dear Mr. President :
The day after Mr. Roosevelt's funeral, a little
more than a year ago, when I submitted my resig-
nation as Secretary of State, you asked me to carry
on for a time longer. The San Francisco Confer-
ence to write a Charter for the United Nations was
then less than two weeks away. President Roose-
velt, under whom I had been privileged to serve,
was gone. Secretary Hull, that great statesman,
was ill. I felt that it was my obligation to do all
within my power to carry the San Francisco Con-
ference through to a successful conclusion. I ac-
cepted your assignment.
Nine weeks later I talked with you again at the
Fairmont Hotel in San Francisco. The Charter
had been completed and agreed upon unanimously
by all the 60 countries represented.
' Made to the Ecouomic and Social Council on May 28
and released to tlie press by the United Nations on the
same date.
I liad entered government service at the begin-
ning of the war emergency in May, 1940, at Mr.
Roosevelt's request, with the purpose of remaining
in the service of my Government only as long as
I might be needed during the period of the war.
At San Francisco, I told you this.
You accej^ted my resignation as Secretary of
State, but you asked me to accept appointment as
United States Representative to the United Na-
tions. You asked me specifically to take charge
of the Administration's case for ratification of the
Charter by the United States Senate ; to represent
the United States in the Preparatory Commission
at London ; to be chairman of the United States
delegation to the first Assembly; to serve on the
Security Council and to organize the United States
representation to the United Nations. You asked
that I carry on with the United Nations until the
institution was a going enterprise.
I have now completed what you asked me to do.
The Charter was overwhelmingly approved liy the
JUNE 9, 1946
989
United States Senate and ratified by every other
count r jr. The fii-st Assembly has completed its
organizational meeting and the various councils
and commissions of the United Nations are at
work. The Organization is functioning at its in-
terim headquarters and the permanent United
States delegation is established.
The ship whose keel was laid at Dumbarton
Oaks and launched at San Francisco lias put to
sea — fully equipped and manned.
Having now completed what you asked me to
do, I believe that the time has arrived when I can
rightfully ask you to accept my resignation as
United States Kepresentative to the United
Nations, to take effect as early as circumstances
permit.
As I submit iny resignation I want you to know
how deeply I appi'eciate tlie opportunities you
have given me for service in tlie cause of peace.
You may be sure that my faith in the United
Nations and my devotion to the cause it represents
will always remain uppermost in my heart and
mind.
With kindest personal regards and best wishes,
I am,
Yours faithfully,
Edward K. Stettinius, Jr.
[Releaspd to the press by the White House June 3]
Dear Ed :
When I received your letter of resignation a few
days ago I stated that I did not want to accept it
and hoped that I might persuade you to remain in
office.
This morning when you reminded me of my
statement that I would relieve you after the United
Nations organization was establislied and func-
tioning I still hoped that I might induce you to
withdraw your resignation. Only because of your
earnest insistence have I decided to comply with
your request and accept your resignation.
In doing so I wish to express to you my sincere
appreciation of your cooperation and of your
splendid service. As Under Secretary and later
as Secretary of State you made a valuable contri-
bution to the United Nations, serving at Dum-
barton Oaks and San Francisco. In the Security
Council you have represented our Govei-nment in
a manner reflecting credit upon yourself and upon
the United States.
I accejjt without question the statements in your
letter as to the reasons for your wishing to resign
at tliis time and wish you good fortune in what-
ever you may determine to do.
Sincerely yours,
Harry S. Truman
GERMAN DOCUMENTS— Conrjnwed from page 986.
Urgent. State Secret. For the Minister person-
ally.
In connectif)n with the forthcoming visit of
Field Marshal Keitel to Budapest, at which the
details with regard to the participation of the
Hungarian Army in the eastern campaign will be
settled between the German and the Hungarian
military authorities, I note for your information
that I, personally, have informed Field Marshal
Keitel here about the course of my conversations
in Hungary. As is known to you, these conver-
sations led to the result that the Hungarian Gov-
erimient declared that their forces could not par-
ticipate fully 100 percent in the eastern campaign,
but that in their participation they wanted to go
to the limit of their capabilities. I took this
promise to mean that, in any case, there could be
counted on the participation of two thirds of the
Himgarian forces in the eastern campaign and
Field Marshal Keitel will carry on his own con-
ferences tliere proceeding on the same assumption.
In case, in course of the conversations, the necessity
arises for reenforcing the efforts of Field Marshal
Keitel from the political side by a new presenta-
tion of the matter to the Minister President, I re-
quest you take the necessary steps. If necessary,
I request that you let me know by telephone or
telegraph whether it seems desirable to you that
I should enter once more into the conferences, in
which case I would then request you on my direct
orders, to obtain assurances from the head of the
govei-nment concerning the pledges given to me.
RiBBENTROP
696662—46-^
International Organizations and Conferences
Calendar
of Meetings
Council of Foreign Ministers:
Meeting of Foreign Ministers
Meeting of Deputies
Far Eastern Commission
Allied-Swiss Negotiations for Gorman External Assets
PICAO :
European and Mediterranean Air Route Services C'ln-
ference
Meeting of the First Annual Assembly
Allied-Swedish Negotiations for German External Assets
Inter-American Conference of Experts on Copyright
ILO: 28th (Maritime) Session of the International Labor
Conference
The United Nations :
Security Council
Military Staff Committee
Special Connnittee on Refugees and Displaced I'ersons
Commissions of the Economic and Social Council
Economic and Social Council
Commission on Atomic Energy
International Health Conference
General Assembly: Second I'art of First Session
I'aris
I'aris
Washington
Washington
I'aris
Jlontreal
Washington
Washington
Seattle
New York
New York
London
New Y'ork
New York
New York
New York
New York
April 2") — ad.iduriied on May
16 until June To
May 27
February 20
Marcli IS
April 24
.May 21
.May 31
June 1
.Time G
.March 2.5
March 25
April 8
April 29
Jlay 25
June 14
June 19
September 3
The dates in the calendar are as of June 2.
Activities and Developments
I. The Far Eastern Commission on IMay 2!)
itnaniiiioiisly approved a policy .'-statement with
resi)ect to the ball- and roller-beaiino: industry
which will form part of tlie over-all Interim Repa-
rations Removals Program for Japan. ( Text not
printed.) This policy supplements the policy
statements which the Commission approved and
released to the press. The Commission has now
approved ])o]icy statements on seven of the ten in-
dustries covered by the Patdey Report on an in-
terim removals program.
II. The Commission today approved a paper en-
titled "Standard Procedures for Formal Commis-
sion Action", which further perfects the internal
organization of the Commission's affairs. The pa-
per describes the principal formal actions of the
Commission as (17) Policy Decisions provided for
in ])aragraph II, A, 1, of the Terms of Reference,
and (h) Formal Requests to the Chairman of the
Commission for consultation with the Supreme
Commander for the Allied Powers, provided for
in paragraph VI, 1. of the Terms of Reference.
The paper then describes proper form and style
as a guide to the Secretariat and the various com-
mittees of the Commission in the preparation of
documents of these types.
III. Sometime ago the Far Eastern Commission
requested considtation with the Supreme Com-
990
]U^E 9. 194h
991
inaiuler for the Allied Powers with respect to pro-
cedures for the adoption of a Japanese Constitu-
tion. (Text enclosed.)
The Chairman on May 2!) reported to the Com-
mission that he iiad received the following from
the Department of State:
■"The retjuest of the Far Eastern Connnission
that (leneral MacArthur send to Washington a
start' officer to confer with the Commission on the
matter of Japanese constitutional ref(jrm con-
tained ill your letter of April 12, 1946, has been
referred to the Supreme Commander and a reply
has now been received from General MacArthnr
in which he states that he is in full agreement with
tiie need for a closer working arrangement, and
understanding between SCAP and tlie Commis-
sion and stands ready to do everything in his
power to further this end. He states, however,
that it is imi)ossible for him to send an officer to
act as his de])uty in the broad matters involving
constitutional reform, as he has given his personal
attention to this question and there is no officer in
a position to express in detail his views. Further-
more, due to the rapid demobilization of officer
personnel, the release of a key officer for this pur-
pose could iKjt be effected without impairment to
the Command. He also adds tlnit the situation in
Japaiiis a fluid one, necessitating constant on-the-
ground observation to permit a comprehensive
understanding of it from day to day."'
The Commission referred tlie reply to Commit-
tee No. 3 for consideration and icport at the next
meeting of the Commission.
The Chairman informed the Commission that
he was engaged in completing arrangements
whereby there might be closer liaison between the
Connnission and the Supreme Commander, who
had agreed that a closer working arrangement and
niiderstaiidiiig was desirable.
1 Enclosure, extract |
Consultation With the Supreme Commander
for the Allied Powers on Procedures for
the Adoption of a Japanese Constitution
1. The Far Elastern Commission has a responsi-
bility to ensure that any new Japanese Constitu-
tion conforms to the principles of the Pofsdam
Declaration. The Commission has under consider-
ation a draft of a set of principles by which any
in-oposed Constitution should be judged in tiie
light of the Potsdam Declaration. To discharge
appropriately its duties in tliis respect, the Far
Eastern Commission is concerned, however, not
only with the actual content of a Constitution,
finally adopted by the Japanese people, but also
with the method and machinery by which the Con-
stitution is adopted in order to ensure that the
Constitution embodies the "freely expressed will
of the Japanese jjeople". The Commission is also
of the opinion that sufficient time should be allowed
for the mature consideration of all these constitu-
tional problems by as wide a section of the Japa-
nese peojDle as possible.
2. In the meantime, the Conmiission believes
that as regards the method, machinery, and i^ro-
cedure for the adoption of a new Constitution,
there are many different paths by which the basic
objective of a democratic Constitution embodying
the will of the Japanese people could be reached.
Accordingly, the Commission considers that it is
most important that it should be kept informed of
the plans of the Japanese Government in this re-
spect, and of the hopes and ideas of the Japanese
people as voiced by individuals or associations,
in the press, or in public discussion.
3. It is not an easy matter f(n- the Commission
to formulate exactly the specific inf oi-mation which
it requires, because the Commission lacks much
of the necessary knowledge of current develop-
ments and plans of the Japanese Government. In
order to assist the Supreme Commander for the
Allied Powers to appreciate the scope of the in-
formation desired, the following are some in-
stances of matters upon whicli the Commission
would like to l)e informed :
a. To what extent and in wliat manner have
other drafts of constitutions been brt)Ught to the
knowledge of the Japanese people and how have
they been discussed?
h. What evidence have the Japanese people
shown of applying democratic principles in con-
sidering a new proposed Constitution?
c. In what manner have the Japanese people
been encouraged to abolish the Imperial institution
or to reform it along more democratic lines ?
d. Ave the various methods for adoption of a
new Constitution being discussed irrespective of
the limitations imposed by Article 73, of the Con-
stitution of 1889? In particular, and only by way
of example, are the following possible methods
of adoption being considered :
992
DEPARTMENT OF STATE BULLETIN
(1) By the Diet,
(2) By constitutional convention,
(3) By plebiscite?
4. For these reasons the Far Eastern Commis-
sion requests its Chairman to ask the Supreme
Commander to send a member of his staff to Wash-
ington to inform the Commission on the plans of
the Japanese Government for the adoption of a
Constitution, and also to discuss with the Com-
mission board questions relating to a new Consti-
tution for Japan. The Commission would also
profit greatly if the deputed officer were also in
a position to communicate to it the Supreme Com-
mander's own views on these matters.
Allied-Swedish Negotiations for German Ex-
ternal Assets : '
Negotiations on the disposition of German assets
in Sweden and related problems were convened at
10: 30 a.m. on May 31 in the Department of State
between Delegations of the United States, the
United Kingdom, and France, and the Delegation
of the Royal Swedish Government.
William Clayton, Assistant Secretary of State,
welcomed the Swedish Delegation and introduced
S. J. Rubin as Chief Negotiator for the United
States. Mr. Rubin has recently been appointed bj'
the President as the United States Representative
to conduct these negotiations.
The Swedish Delegation is headed by Justice
Emil Sandstrom. Other members of the Delega-
tion are : Tage Gronwall of the Swedish Foreign
Office and Leif de Belfrage, Commercial Counselor
of the Swedish Legation in Washington.
The British and Frencli Delegations are headed
by F. W. McCombe (U.K.) and Christian Valensi,
Financial Counselor of the French Embassy in
AVasliington.
Additional discussions will be lield beginning
Monday, June 3.
Inter-American Copyright Conference
The U. S. Delegation to the Inter- American
Conference of Experts on Copyright,^ which was
approved by the President, was announced liy tlie
Secretary of State on May 29.
' Released to the press May 31.
^ Released to tlie press May 29.
'Released to tlie press by the Pan Anieritan Union
May 31.
Delegate:
Luther H. Evans, Librarian of Congress.
Advisers:
Richard C. de Wolf, Former Assistant Register of Copy-
right, Library of Congress.
Waldo Lelaud, Director, American Council of Learned
Societies.
William Sanders, Associate Chief, Division of Interna-
tional Organization Affairs, Department of State.
Sam Ba.ss Warner, Register of Copyrights, Library of
Congress.
S/iccial Assistants:
Charles I. Bevans, Assistant Clilef, Treaty Bramh, Divi-
.slon of Research and Publication, Department of
State.
James L. Brown, Legal Adviser to the Bureau of For-
eign and Domestic Commerce, Department of Com-
merce.
Harry Warfel, Acting Assistant Chief, Division of In-
ternational Exchange of Persons, Department of State.
Simon N. Wilson, Division of Research for American
Republics, Department of State.
The members of the United States Delegation
will have the benefit of the advice and counsel of
the following representatives of national organiza-
tions interested in copyright problems who will
serve as consultants to the Delegation :
Herman Finkelstein, Resident Counsel of ASCAP, New
York, N. Y.
Sidney Fleisher, Legal Counsel, Authors' League, New
York, N. Y.
Justin Miller, President of the National Association of
Broadcasters, Washington, D. 0.
Edward A. Sargoy, Chairman of the Section of Patent,
Trade-mark, and Copyright Laws of the American Bar
Association, New York, N. Y.
Benjamin H. Stern, Counsel for Book Publishers" Asso-
ciation, New York, N. Y.
The United States was invited to be represented
at the forthcoming Conference by tlie Pan Ameri-
can Union. The object of the Conference is to
improve the inter-American copyright system by
means of a new or revised multilateral convention.
Copyright experts ^ from all countries of the
Western Hemisphere will assemble on June 1 at
the Pan American Union for the opening session
of the Inter-American Conference of Experts on
Copyright.
Tlie primary purpose of this meeting is to study
and I'eview all previously existing multilateral
agreements in an effort to draw up a more gen-
erally comj^rehensive document which will then
be submitted to the governments of the 21 repub-
lics for ratification.
JUNE 9, 1946
993
Many efforts have been made to bring about
a uniform system for the protection of intellec-
tual works in the Americas, but because of the
complexity of the problems progress has been slow
and inadequate. The great number of existing
agi-cements and the different points of view in-
volved can be harmonized only by free discussion
at a special conference of experts on the subject,
and it was in i-ecognition of this fact that the
Eighth International Conference of American
States in 1938 proposed the present meeting. It
has been delayed until the present by the war and
transportation difficulties.
This Conference, during the course of which
the delegates will make a thorough study of copy-
right as it affects all fields of intellectual endeavor,
is the culmination of many years of preparatory
work.
Assistant Secretary of State Clayton will ad-
dress the delegates on June 1.
ILO: 2Sth (Maritime) Session of the Interna-
tional Labor Conference :^ The President on May
'29 approved the designation of those whose names
appear on the following list as members of the
United States Delegation to the Twenty-eighth
(Maritime) Session of the International Labor
Office, which is scheduled to convene at Seattle,
Washington, on June 6, 1946.
The Twenty-eighth Session of the International
Labor Office will be devoted entirely to the con-
sideration of matters pertaining to social policy
in the maritime industry. The groundwork for
this Conference was laid by the Maritime Prepar-
atory Technical Conference at Copenhagen, No-
vember-December, 1915. Among the major items
of social policy pertaining to seafarers to be con-
sidered at Seattle will be the question of establish-
ing an international minimum-wage standard.
Other topics which will receive consideration are :
the problem of hours, of working standards, of
manning procedures, crew accommodations, holi-
days with pay, continuation of employment, food
and catering on board, and social security for sea-
farers. The agenda planned for the Conference
will entail entry, training, and promotion as well
as recognition of seafarers organizations.
Representing the Government of the United States
Delegates:
Lewis B. Scliwellenbacli, Secretary of Labor.
' Released to the press b.y the White House May 29.
Henry M. Jackson, Member of the Marine and Fisheries
Committee, House of Representatives.
Special Assistant to the U. S. Govkenment Dei-eoates
John L. Salter, Technical Expert, Marine and Fisheries
Committee, House of Representatives.
Advisers:
Clara M. Beyer, Assistant Director, Division of Labor
Standards, Department of Labor.
Wilbur J. Cohen, Technical Adviser to the Social Secu-
rity Board.
Substitute:
Ida C. Merriam, Chief, Division of Coordination
Studies, Bureau of Research and Statistics, Social
Security Board.
L. James Falck, Assistant Chief, Shipping Division,
Department of State.
Thomas W. Holland, Associate Chief, Division of Inter-
national Labor, Social and Health Affairs, Depart-
ment of State.
Capt. H. T. Jewell, Chief, Merchant Marine Personnel
Division, U. S. Coast Gnard.
Dagny Johnson, Office of the Solicitor, Department of
Labor.
William K. McComb, Deputy Administrator, Wage-Hour
& Public Contracts Division, Department of Labor.
Erich Nielson, Special Assistant to the United States
Maritime Commission.
Capt. Mortimer K. O'SuUivan, Joint Crews' Quarters
Committee, Maritime Commission- War Shipping Ad-
ministration.
Harold S. Roberts, Assistant Cliief, Industrial Relations
Branch, Bureau of Labor Standards, Department of
Labor.
Charles W. Sanders, Special Assistant to the Adminis-
trator, War Shipping Administration.
Comdr. Paul N. Savonis, U.S.N.R., U. S". Coast Guard.
Commodore H. C. Shepheard, Special Assistant to the
Commandant, U. S. Coast Guard.
Richard J. Welch, Member of tlie Merchant Marine and
Fisheries Committee, House of Representatives.
Reipresenting the Employers of the United States
Delegate:
Maitland S. Pennington, Vice President, National Fed-
eration of American Shipping, Washington, D. C.
Advisers:
Oliver Burnham, Lake Carriers' Association, Cleveland,
Ohio.
J. B. Bryan, President, Pacific American Steamship Com-
pany, San Francisco, Calif.
Hugli Gallagher, Vice President, Matson Navigation Com-
pany, San Francisco, Calif.
Joseph A. Gibson, Lukenbach Steamsliip Company, New
York, N. Y.
Gilbert Johnson, General Counsel, Lake Carriers' Asso-
ciation, Cleveland, Ohio.
{Continued on page lOOS)
Agreements on Economic and Financial Problems Reached
by U. S. and Provisional French Governments
[Keleased to the press May 28]
The representatives of the Government of the
United States of America and the Provisional
Government of the French Republic on May 28
concluded their discussions of the economic and
financial problems of interest to their respective
countries.
Texts of the agreements reached follow :
1. A joint declaration by the President of the
United States and the President of the Provisional
Government of the French Republic.
DECLARATION MADE IN WASHINGTON BY
AND IN PARIS BY THE PRESIDENT OF
FRENCH REPUBLIC ON MAY 28, 1946
The two Governments have reached complete
agreement for the final settlement of all lend-lease
and recii)rocal aid, including military and civilian
supplies furnished by each Government to the
other. They have also agieed on the acquisition
of United States army and navy surjjlus property
located in France and certain French overseas
territories. Under this Agi'eement. credits of $720
million have been provided for the purchase of
surplus property and for goods supplied to France
since the end of the war.
Discussions are taking place for an additional
credit, subject to the provisions of the Merchant
Ship Sales Act of 1940. whereby France will ac-
quire approximately 750,00(1 tons of merchant
shipping owned by the Government of the TJnited
States.
The two Governments believe that the results
of the discussions which have now been concluded
will help France in reconstructing and moderniz-
ing the French economy and are a substantial step
towards the achievement of the international eco-
nomic cooperation which is the prerequisite of a
2. A joint declaration on commercial policy and
related nuitters.
3. A memorandum of understanding regarding
the settlement of lend-lease, reciprocal aid, surplus
war property, and financiid claims arising out of
the conduct of the war.
4. Understanding of the Govermnent of the
United States of America and the Provisional
Government of the French Republic with respect
to the exhibition of American motion pictures in
France.
THE PRESIDENT OF THE UNITED STATES
THE PROVISIONAL GOVERNMENT OF THE
peaceful and prosperous world. They welcome the
support of all of the United Nations in establish-
ing a world trading and monetary system wliicli
will assure a full fiow of commerce to the benefit
of the peoples of all countries.
Eejj resent atives of the Govermnent of the
United States and the Provisional Government
of the French Republic have met together in Wash-
ington and have discussed important economic
and fimincial problems of common interest. These
problems have included the need for foreign
credits for reconstructing and modernizing the
French economy, the settlement of lend-lease, re-
ciprocal aid and other war accounts, the purchase
of United States surplus property situated in
France and certain French overseas territories, the
purchase of ships owned by the United States, and
international commercial policj'.
The discussions have brought out clearly the
full agreement of the two Governments on co-
operation in the fulfillment of the economic objec-
tives which both Governments recognize as essen-
994
J LINE V, 1946
995
t i.il III world peiice and proHperity. Tlu> well-bciiiji'
of the people of all nations can be advanced
through a full flow of trade which enables each
country to maintain higher levels of production
and better standards of living. These benefits of
woild trade can be realized only as the markets
of the world are opened to all countries on fair and
equal terms. The twt) Governments are deter-
mined to work together in securing general inter-
national acceptance of the world trade proposals
of the TTnited States to be considered by a confer-
ence of the United Nations.
The reconstruction and modernization of the
French economy will facilitate the integration of
Europe in the world economy and enable France
to resume her place as a great producing and trad-
ing nation. The French Delegation has presented
a program for reconstructing and modernizing
the ectjnomy of France. The innnediate objective
is to restore French production to the pre-war
level ; the ultimate objective is to expand French
production to higher levels connntiisurate with the
technical progress of the ])ast two decades. One
requisite for the fulfillment of this program is an
adecjuate and assured supply of coal, not only from
increased French production, but also from im-
ports of German coal. The United States Govern-
ment will continue to assist France in securing an
adequate supply of coal from Germany.
In the opinion of the American representatives,
attainment of the objectives of increased produc-
tion and trade presented by the French Delegation
is necessary to the full and eifective participation
of France in the world economy. In furtherance
of the efforts of the French people to this end, the
United States lias agreed to the extension of addi-
tional ci'edits to France.
At the end of 1945 the Export-Import Bank
made a loan of $550 million to France. The Board
of Directors of the Export-Import Bank have now
approved a new line of credit of $fi5(J million.
This action has been taken pending the time when
the International Bank for Reconstruction and
Development will be in full operation.
DECLARATION BY THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE
PROVISIONAL GOVERNMENT OF THE FRENCH REPUBLIC ON COMMERCIAL POLICY
AND RELATED MATTERS
The Government of the United States of Amer-
ica and the Provisional Government of the French
Republic, having concluded comprehensive discus-
sions on connnercial policy and related matters,
find themselves in full agreement on the general
principles which they desire to .see established to
achieve the liberation and exj)ansi()n of interna-
tional trade, which they deem to be essential to
the realization of world-wide prosperity and last-
ing peace.
The French Government has made known to the
United States Government the measures which it
has taken and intends to take to make ])ossible the
attainment of this common objective. The French
Government has also made known to the United
States Government its plan for the reconstruction
and modernization of the French economy. In ac-
cordance with the letters exchanged on November
8. 1045. the two Governments have examined this
plan and have agreed that the attainment of its
objectives should make possible full participation
by France in the cooperative achievement of an
expanding world econom}^
The two Govermnents have studied the problems
involved in the construction of a general frame-
work for world trade anf! have also examined a
lunnber of specific questions relating to connner-
cial policy and other matters wdiich are of interest
to themselves and to other countries. The
following joint statement liy the two Governments
summarizes the understandings reached in these
discussions.
I
The two Governments are in complete agree-
ment, at all important points, on the principles
expressed in the "Proposals for Consideration by
an International Conference on Trade and Em-
]doyment" submitted to the French Government
by the Government of the United States. They
have therefore resolved to continue discussions
between themselves and with other like-minded
countries in order to give effect to these principles
in the Charter of the proposed International Trade
Organization. The two Governments are of the
opinion that the prior conclusion of agreements
among the major trading nations of the world for
the substantial reduction of tariffs and other bar-
riers to trade and for the removal of discrimina-
tory arrangements would contribute greatly to the
success of the World Conference.
996
DEPARTMENT OF STATE BULLETIN
II
The French Government has advised the United
Stales Government of the following policies :
(a) A new French tariff is being prepared which
will contain ad valorem duties only and which will
not increase the degree of protection over the level
which existed prior to the war. This new tariff
will serve as the level from which i-eciprocal reduc-
tions will be negotiated in the forthcoming multi-
lateral conference.
(b) France has definitely abandoned its pre-war
policy of protecting French producers with import
quotas.
(c) The French Government has reiterated that
it has abandoned the price equalization (perequa-
tion) procedure which it was compelled to use pro-
visionally during the period prior to the revalua-
tion of the franc in o/ der to facilitate exports.
Ill
The French Government has made clear that it
must maintain import controls within the frame-
work of an impoi't program but that it will main-
tain such controls only so long as they are neces-
sary to safeguard the equilibrium of its balance
of payments and to achieve in an orderly way its
plan of reconstruction and modernization. The
French Government will administer the issuance
of import licenses under the French import pro-
gram without discrimination as among 'foreign
sources of supply as soon as France possesses, or is
able to earn, sufficient free foreign exchange so that
it is no longer necessary for her to make her pur-
chases within the limits of bilateral trade and fi-
nancial arrangements.
IV
The two Governments have reached a mutually
satisfactory understanding on the return to pri-
vate channels of trade between France and the
United States. The French Government has al-
ready restored to private channels a large part of
the import trade of France and its colonies, and
will continue to curtail the foreign procurement
activities of the Government.
French Government procurement in the United
-States will be limited to equipment for public
corporations and agencies. For the time being,
Government procurement will also be continued for
a restricted list of items, such as short supply food-
stuffs, steel, lumber, fires and certain medical
supplies.
Temporarily, a part of French imports will be
handled by associations of private ti-aders, groupe-
ments) until the difficulties of loading, shipment,
and transport of essential supplies and their dis-
tribution in France are overcome.
The French Supply Council in the United States
will continue to operate on a reduced scale, engag-
ing principally in the liquidation of outstanding
contracts and governmental j^i-ocurement as indi-
cated above. It will limit its purchases to the
satisfaction of essential civilian requirements; it
will make the maximum practicable use of normal
trade channels ; it will pursue methods consistent
with commercial practices and it will cease opera-
tions as soon as possible.
V
The two Governments have agreed that impor-
tant benefits would acciue to both countiies from
a substantial expansion of French exports to the
United States. They have discussed certain United
States laws and regulations, which, in the opin-
ion of the French Government, tend to hamper
unduly the importation of French products into
the United States. Special attention has been
given to trade mark and copyright legislation, the
use of geographic names related to particular prod-
ucts, price control of imported goods, aild valua-
tion of imported goods for the assessment of cus-
toms duties. The various agencies of the United
States Government which are concerned with these
matters have agreed to give careful and sympa-
thetic consideration to the views of the French
Government, and to study the possibility of alter-
ing their administrative procedures or recommend-
ing to the Congress the revision of existing
legislation.
VI
The two Governments have agreed, subject to
participation in the program by other important
industrial nations, each to license freely and with-
out royalty to the nationals of the other, on condi-
tions of reciprocity, all former German-owned
jjatents which have come into the full possession
of either Government, reserving only those rights
which have already bee.i granted with respect to
such patents. The two Goverimrents believe that
the general adoption of this policy will eliminate
an important barrier to international trade and
will contribute substantially to the achievement of
expanding world economy. In accordance with
these objectives, they have agreed, at some future
JUNE 9, 1946
997
time, jointly to consider other questions rohiting
to German patents.
VII
Tlie Frencli (irovernment will accord to Ameri-
can nationals who have suffered damage to their
properties in France, through causes originating
in the war, compensation equal to that payable to
French nationals having the same types and extent
of losses. The United States Government has in-
formed the French Govermnent that equality of
treatment is accorded to French and American
nationals with reference to war damages to prop-
erty in the United States.
VIII
In order to provide a sound framework for the
expansion of mutually beneficial economic rela-
tions between their two countries, the Govern-
ments of France and the United States have agreed
to begin negotiations as soon as possible looking
toward the conclusion of a modern and compre-
hensive Treaty of Establishment, Commerce and
Navigation.
DoxE at Washington, in duplicate, in the Eng-
lish and French languages, this 28th day of May,
1946.
For the Government of the United States of
America :
James F. Byrnes
For the Provisional Government of the French
Republic:
Leon Blum
MEMORANDUM OF UNDERSTANDING BETWEEN THE GOVERNMENT OF THE UNITED
STATES OF AMERICA AND THE PROVISIONAL GOVERNMENT OF THE FRENCH RE-
PUBLIC REGARDING SETTLEMENT FOR LEND-LEASE, RECIPROCAL AID, SURPLUS
WAR PROPERTY, AND CLAIMS
1. The Government of the United States of
America and the Provisional Government of the
French Republic have reached an understanding
for the final settlement of lend-lease and recipro-
cal aid, and of the French obligation to the United
States Government under the military supply
program (Plan A) ; the acquisition by the French
Government of certain United States Army and
Navy surplus property, including installations,
located in France and certain French overseas
territories, and for the final settlement of other
financial claims of each Government against the
other arising out of the conduct of the war. In
arriving at this understanding both Governments
have recognized the considerations expressed in
Article VII of their Preliminary Agreement of
February 28, 1945, on the principles applying to
mutual aid, as well as the benefits accruing to each
from the contributions of both to the defeat of
their common enemies. In the light of the fore-
going, both Governments agree that no further
benefits will be sought as consideration for lend-
lease and reciprocal aid.
2. The net amount due from the French Gov-
enmient to the United States Government for the
foregoing, including all indebtedness arising from
provisions of the lend-lease and reciprocal aid
agreements of February 28, 1945, is $720,000,000,
made up in part of amounts now agreed upon and
in part of estimated amounts subject to revision.
The latter, for which the best available figures
have been used pending their final determination
by agreed accounting procedures, represent in the
main transfers after September 1, 1945.
3. The French Government will pay interest
on the net amount due to the United States Gov-
ernment from July 1, 194G, at the rate of two per-
cent per annum. Such interest payments will be
made annually on the first day of July of each of
the years 1947 to 1950, inclusive. Beginning on
July 1, 1951, interest and principal will be paid
in thirty (30) equal annual installments. Each
installment shall consist of the full amount of the
interest due for the year preceding the July 1 on
which the payment is made, and the remainder
of the installment shall be the principal due in
that year. Nothing herein shall be construed to
prevent the French Government from anticipat-
ing the payment of any of such installments, or
of any part thereof. If, by agreement of both Gov-
ernments, it is determined that because of extraor-
dinary and adverse economic conditions arising
during the course of payment, the payment of any
installment would not be in the joint interest of
998
DFJ'ARTMENT OF STATE BULLETiy
both Govenunents. payincnl may be postponed
for an agreed upon jieriod.
To the extent that the terms of payment pro-
vided in this paragraph ."> are inconsistent with
those contained in jnevious agreements, the pro-
visions of this paragrajjh shall i)revail.
4. The two Govermnents have agreed ni)on ar-
rangements and procednres for the settlement of
past and fntnre troop pay and procnrement of
Tnited States Armed Forces in France and
French overseas territories.
5. As and when requested by the United States
Government from time to time prior to January
1, 1950, the French Government will transfer to
the United States Government real property to be
nuitually agreed upon and not to exceed a total
dollar value of $15,()0U.O()0. In addition, the
Fi'ench Government will provide, at the i-equest
of the United States Government, francs repre-
senting an aggregate dollar value not in excess of
$10.()0(),()00. Any francs so transferred will be
fiu-nished at the exchange rate established in con-
formity with procedures of the International Mon-
etary Fund, or if no such rate exists, at the rate
used in official French Government transactions at
the time of such transfer. The United States Gov-
ci-nment will use francs so transferred exclusively
to ai'cpiire or improve real i)r()peity for United
States Government use or to carry out educational
programs agreed between the two (iovernments.
Transfers made in accordance with this para-
graph 5 will l)e credited first to interest then due
and then to installments of principal in direct
order of maturity.
6. The two Governments have also agreed upon
the following:
a) All claims and financial obligations lietween
the two Governments arising out of the acquisition,
operation, disposition or loss of French vessels and
cargoes of such vessels wliile under United States
control will be settled by the United States for
$17,500,000 in accordance with the provisions of
an agreement relating to the purchase bj' France
of up to 75 Liberty ships.
b) Both Governments express their intention of
entering into a maritime claims agreement, pro-
viding for the mutual waiver of intergovernmental
claims arising from maritime accidents, and for
the handling by each Government of claims as-
serted in its cotu'ts by its nationals against the
other Government and based on maritime accidents
occurring prior to November 1, 1945.
c) As part of the general settlement, the French
Government has agreed to process and pay all un-
paid claims of French residents against the United
States Government arising out of the use or in-
fringement in war production of patent rights held
by them, out of the requisitioning by the United
States Government for use in the war program of
any pi'oi)erty interest owned by French residents,
and out of acts or omissions prior to July 1. 194(i.
in France or French overseas territories of mem-
bers of the United States Armed Forces or civilian
persomiel attached to such Forces.
d) During the course of the negotiations botli
Governments have reached agreement on the dis-
position of certain specific claims of one Govern-
ment against the other. All other financial claims
of either Govermnent against the other, except
where liability has heretofore been acknowledged
and the method of computation agreed, which ( 1 )
arose out of lend-lease or reciprocal aid, or (2)
otherwise arose on or after Sejjtember 3, 1939, and
prior to Sejitember 2, 1945, out of or incidental
to the conduct of the war. not otherwise dealt witli
in this Memorandum of Understanding, are hereby
waived.
e) A])propi'iate non-discriminatory treatment
will be extended by the French Government to
United States nationals in the use and disposition
of installations in the building of which there has
been a United States Government contribution and
which are transferred under this settlement.
f) The United States Government reserves its
right of recapture of any lend-lease articles held
by the French Armed Forces, except petroletun
products and an agreed list of non-combat air-
craft. The Ignited States Government has indi-
cated that it does not intend to exercise generally
this right of recapture, exce]3t that vessels of the
United States Navy and lend-lease merchant ves-
sels are to be returned to the United States Govern-
ment unless otherwise agreed.
g) Disposals for military use to forces other
than the French Armed Forces of lend-lea.se ar-
ticles held on September 2, 1945. or received thei'e-
after by the French Armed Forces, and disposals
for civilian use other than in France and French
overseas territories of such lend-lease articles, will
JLNF. 9. 1946
999
be niadc only witli the consent of the United States
(irovernineut and any net proceeds will be paid to
the Ignited States Government. The French (iov-
ernnient will not, except to a very limited extent,
release for civilian use in. or export from, France
and French overseas territories lend-lease articles
held by the French Armed Forces.
h) Excei)t as otherwise provided in this Memo-
randum of Understanding, the French Govern-
ment and the United States Government receive
full title to lend-lease and recipi'ocal aid articles
respectively held as of September 2, l!l4ri, or trans-
fei-red thereafter. If any United States surjilus
installation not transferred under this IMemoran-
dum of I'nderstiinding contains a lend-lease in-
terest, such lend-lease interest is retained liy the
Ignited States. •
i ) The United States Government will under-
take to make available to the French Govei'nment
])art of the United States Government's share of
captured German and Jajjanese surface naval ves-
sels when such vessels become excess to United
States needs and are no longer needed for any task
connected with the implementation of the (Terman
and Japanese .surrenders.
7. The two Governments agree to conclude such
specific agreements as may be necessary to imple-
ment this general understanding.
8. This Memorandum of Understanding will be
effective upon signature, and instruments of rati-
fication will be exchanged as soon as possible.
Done at Washington, in duplicate, in the Eng-
lish and French languages, both texts being equally
authentic, this 28th day of May, 1946.
For the Government of the United States of
America:
James F. Bykn?:s
For the Provisional Governuwnt of the French
Republic:
Leon Blum
UNDERSTANDING BETWEEN THE GOVERNMENT OF THE UNITED STATES OF
AMERICA AND THE PROVISIONAL GOVERNMENT OF THE FRENCH REPUBLIC
WITH RESPECT TO THE EXHIBITION OF AMERICAN MOTION PICTURES IN
FRANCE
The Government of the United States of Amer-
ica and the Provisional Government of the French
Republic, in the light of their broad agreement of
this date on commercial policy objectives, and with
special regard to changes brought about by the
war. have reexamined certain problems relating to
the exhibition in France of dubbed American mo-
tion picture films. As a result of these conversa-
tions, the French Government has informed the
American Govermnent that it will take the follow-
ing measures which will be applied in the customs
territory of France :
Effective July 1, 19-16, all previous provisions
concerning the number of dubbed films permitted
to be shown in France will be abandoned. On the
same date, a "screen quota" system will be insti-
tuted, as a temporary protective measure, to assist
the Frencli motion picture industry to I'ecover
from the disorganization caused by enemy occupa-
tion of France. Under this system, motion pic-
ture exhibitors in France will be required to ex-
hibit French films for a certain number of weeks
per quarter. During the remaining weeks, French
exhibitors will be allowed free choice of films, for-
eign or domestic.
Beginning July 1, 1946, the screen quota reserved
for French films will be not more than four (4)
weeks per quarter.
The screen quota shall continue at the level of
four (4) weeks i^er quarter unless reduced to three
(3) weeks per quarter by the operation of the fol-
lowing automatic formula :
If, in any two-year period ending on June 30,
1948. or on June 30 of any subsequent year, feature
films produced in Fiance should obtain total play-
ing time in French theatres equal to or greater
than an average of five (5) weeks per quarter, the
screen quota shall automatically be reduced to thi'ee
( o) weeks per quarter effective October 1 following
the expiration of such two-year period.
If, through the oiieration of the above formula,
the screen quota should be reduced to three (3)
weeks per quarter, it shall continue at that level
unless terminated entirely by the operation of the
following automatic formula:
If, in any two-year period ending on September
1000
DEPARTMENT OF STATE BULLETIN
30, during the whole of which period a screen quota
of three (3) weeks per quarter is in effect, feature
films produced in France should obtain total play-
ing time in French theatres equal to or greater
than an average of five (5) weeks per quarter, the
screen quota shall be entirely abolished effective
January 1 following the expiration of such two-
year period.
The French Government has agreed that, in the
period during which the screen quota remains in
force, it will impose no restrictions whatever on
the importation of American films into France,
and no restrictions other than the screen quota
on the exhibition of American films in France, ex-
cept such restrictions as are also ai^plied to French
films. If, through the operation of tliis plan, the
screen quota should be entirely abolished, there
will be, on and after the effective date of such
abolition, no restrictions on the importation of
American films into France, and no restrictions
on the exhibition of American films in France,
except such restrictions as are also applied to
French films.
The United States Government has noted with
satisfaction that the new measures to be taken by
the French Government contemplate the complete
elimination of protection when the French pro-
ducing industry has regained its competitive
strength.
If, in the opinion of either Government, this
plan should, at some f utui'e time, be inappropriate
to the conditions then prevailing in the French
motion picture producing industry or in the
French motion picture market, each Government
has reserved the right to request the other to un-
dertake negotiations looking toward its modifica-
tion or termination. If, upon the expiration of six
months from the date of such a request, these nego-
tiations shall not have reached a conclusion satis-
factory to both Governments, the terms of the
Reciprocal Trade Agreement which is then in
effect between them shall apply.
Done at Washington, in duplicate, in the
English and French languages, this 28th day of
May, 1946.
For the Government of the United States of
America :
James F. Byrnes
For the Provisional Government of the French
Repithlic:
Leon Blum
Surplus Property iu Foreign
Areas'
Amendment of Executive Order No. 9630 of
September 27, 1945, Redistributing Foreign
Economic Functions and Functions With
Respect to Surplus Property in Foreign
Areas
By virtue of the authority vested in me by the
Constitution and the statutes, including Title I of
the First War Powers Act, 1941, and as President
of the United States and Commander in Chief of
the Army and Navy, I hereby amend paragraph 8,
Part II, of Executive Order No. 9630 of Septem-
ber 27, 1945, entitled "Redistribution of Foreign
Economic Functions and Functions with Respect
to Sui-plus Propery in Foreign Areas," by adding
thereto the following sentence :
"Nothing in this order shall be construed to limit
the authority of the Department of State to engage
such personnel and make such other expenditures
as the Secretary of State may deem necessary to
the discharge of the functions and responsibilities
of the Department of State under this Part or any
functions and responsibilities assigned to it under
the Surplus Property Act of 1944."
Harry S. Truman
TuE White House,
May '21,, 19 k6.
'Ex. Or, 9730 (11 Federal Register 5777).
Letters of Credence
INHNISTER OF ETHIOPIA
The newly appointed Minister of Ethiopia, Ras
H. S. Imrii, presented his letters of credence to
the President on May 15. For the texts of the
translation of the Minister's remarks on the occa-
sion of the presentation of his credentials and
the President's reply, see Department of State
press release 327.
JUNE 9, 1946
mil
Inter-American Military Cooperation
STATEMENT BY THE SECRETARY OF STATE
Mr. Chaikman :
I appreciate the opportunity of meeting with
the members of the Committee on Foreign Affairs
today in regard to the Inter-American Military
Cooperation Bill. H. R. G326.
The subject matter of the bill which you are
considering has been given extended considera-
tion by the State, War and Navy Departments.
Representatives of the War and Navy D.^part-
ments liave discussed with you the purposes of the
bill in the light of military and naval policy, and
have presented from the military viewpoint the
princii^al explanation of why passage of the bill
is considered desirable in the interests of the
United States. I must, of course, limit my remarks
to consideration of the objectives and purposes of
the bill as they affect the foreign relations of the
United States in general.
The purpose of the proposed legislation is to
clarify the authority of the President, and through
him of the executive departments of the Gov-
ernment, to extend training facilities, and to trans-
fer military equipment, subject to certain condi-
tions, to other American states, as a means of im-
plementing the cooperation of the American
nations in military and naval matters. Present
legislation authorizes such activities only to a
limited and inadequate extent.
The long range objective of the military cooper-
ation which this bill would authorize is the con-
tinued and closer coordination of the efforts which
the American nations have made over many years
to promote their mutual security and preserve
their peace.
The basis for the cooperation among the Amer-
ican states in the military field lies in the obliga-
tions they have assumed for their mutual defense
and for the maintenance of peace in the Western
Hemisphere. In the Act of Chapultepec which
was signed by the American republics in March
of 1945, these 21 countries stated that an attack
by any state against any one of them would be
considered an attack against all of them. If such
an attack occurs, the Act of Chapultepec provides,
the American republics will consult with each
other to agree upon measures it may be advisable to
take. The measures which the Act of Chapultepec
authorized the American republics to take in-
cluded, for the first time in inter-American agree-
ments, the use of armed force if necessary.
The Act of Chapultepec thus represents a dis-
tinct advance over previous inter-American secu-
rity arrangements. It created for the first time a
system for maintaining the peace and security of
the American republics regardless of whence an
attack might come.
The Act of Chapultepec also provided that the
arrangements made under it should be consistent
with the United Nations, tlie Charter of which
had not j^et been drafted when the Act of Chapul-
tepec was signed. Since that time the United
Nations has become a reality. The Charter of the
United Nations recognizes that regional arrange-
ments for the maintenance of peace and security,
which are consistent with the Charter, may exist,
and stipulates the conditions under which such
regional ai-rangements as the Inter-American Sys-
tem may act in the maintenance of international
peace and security.
In case of an armed attack, all members of the
United Nations may exercise, under the Charter,
their rights of individual and collective self-
defense until the Security Council acts. If aggres-
sion is threatened — without an armed attack hav-
ing occurred — it is possible for regional arrange-
ments to be directed by the Security Council to
enforce the peace or to be authorized to take en-
forcement action on their own initiative. The
chief restriction upon the activity of a regional
arrangement such as the Inter-American System
is that it may not, except in the case of an armed
attack, undertake any enforcement measures
without the authorization of the Security Coun-
'Made at Hearings before the House Foreign Affairs
Committee on H. R. 6326 on May 29 and released to the
press on tlie same date.
7002
DEPARTMENT OF STATE BULLETIN
cil. By virtue of this provision the Sei'iuity Coun-
cil remains the supreme authority in regaid to the
enforcement of international peace and secni'ity.
I am sure that you are familiar with the fact
that the complete fulfillment by this Government
of the terms <>f the Act of Chapnltepec depends
upon the exercise of the war powers of the execu-
tive. The American republics have announced
tlieir intention, which this CJovernment shares, of
signing a treaty, as called for by the Chapnltepec
agreement, which will, when ratified, give perma-
nent validity to the principles of mutual defense
and collective action for the maintenance of peace
and security in the Americas as a regional ar-
]-angenient under tlie United Nations.
The Act of Chapultepec places upon each of the
American republics a responsibility to collaborate
in the conmum effort to maintain the peace and
security of all the Americas. The perfection of
the entire structure of this regional arrangement
is still in the future in that there remains to be
concluded the basic treaty called for in the Act of
Chapultepec. However, the advantage of cooper-
ative relations among the military establishments
which the American governments will continue to
nuiintain, and of the acceptance of common techni-
cal standards as a means of facilitating those rela-
tions, is obvious. I trust that the passage of this
legislation will do much to place this Government
in a position to play its part in this general coop-
erative undertaking. It will be an indication to
the other American states that the United States
desires to go for\vard with such collaboration sub-
ject to the overriding considerations of our gen-
eral foreign policy — particulaidy our support of
the United Nations as the supreme international
authority for the maintenance of peace and
security.
The bill has been drafted so as to permit this
Government to extend the same cooperation to
Canada, with whom our relations in all matters,
including defense, are of special importance.
The President clearly indicated, in his message
of May 6 to the Congress concerning the legislation
Under discussion, other aspects of our foreign pol-
icy which bear upon this inter-American military
cooperation. I should like to express very strongly
the opinion that it would not be in the interests of
the XTnite<l States to enter upon an extensive pro-
gram of adding to the armaments of other coun-
tries. It would be in conflict with oui' jvaceful
aims to stimulate an arms race with all the disas-
trous consequences which such a development
might bring about. It is a jiurpose of our foreign
policy to work for a regulation of armaments in
the light of requireiuents for the maintenance of
interiuil order and of international peace and
security. AVe desire to see the world freed from
both the fears and the economic burdens which the
maintenance of unnecessarily large armed forces
imposes upon peoples, whose energies and resources
must be directed to world reconstruction and im-
l^rovement of living staiulards. There has not yet
been time since the cessation of hostilities to estab-
lish any svu'h system of arms regulation. I am con-
fident, however, that this objective which we so
sincerely desire can be achieved. With respect to
the American republics, the cooperation which this
Government will be empowered to extend if the
bill under discussion is passed will be guided by
our purpose of keeping armaments down to the
mininumi. The authority to extend such coopera-
tion will, I hope, place this Government in a better
position to work out with the other-American gov-
ernments arrangements both for the regulation of
armaments and for the maintenance of continental
peace and security.
The bill itself explicitly recognizes that any op-
erations which this Government carries out under
it will be subordinate to any international agree-
ment for the regulation of armanu-nts to which the
United States is a party. It further calls for the
exchange wherever possible of non-standard arms
for those which this Government may make avail-
able, indicating that the objective of such transfers
shall be the standardization, rather than the in-
crease, of arms in the possession of other countries.
The initiative in planning specific activities un-
der this bill will, of course, rest with the "War and
Navy Departments. However, the Department of
State will have a part in that it will negotiate with
other countries the agreements called for in the
bill. Moreover, the Department of State will con-
tinue to work in the closest collaboration with the
War and Navy Departments with regard to any
activities under this bill which may touch upon our
foreign policy. On the basis of the discussions
which the three Departments have had in the past
on this subject, I am sure that I can sjDeak not only
for the State Department, but for the War and
Navy Departments also, in saying that any activi-
ties which we may recommend to the President in
}V!\E 9, 1946
1003
the event this bill is passed will be gDVerned by the
basic i)bjectives of our policy towanl the countries
immediately concerned. Those objectives include,
along with the protection of the peace and security
of the Americas, assistance to our sister American
nations in the raising of living standards for their
peoples and in the pi-ogrcssively greater acliieve-
ment of the jjolitical, economic and cultuial oljjec-
tives of a democratic society. Through continuing
consultation among the State, War and Navy Ue-
]3artments I am confident that these objectives can
be given constant and full consideration in plan-
ning the cooperation in military affairs wliicli the
proposed bill would authorize.
Intergovernmental Refugee Committee
Exchuitf/e of L('tfer>< Betweev Sintator Vaiidenbei'g
(/in/ T'ndcr Secietai'tj Ac/iesoii
United States Sex.\te
April 9, 1946
Honoialile Ja.mes F. Byknes,
Siriiiiirij of St-ate,
Wiixhingfoiu D. ('.
]My Dear Mu. Secretary :
The "National Committee of Americans of Po-
lish Descent" and the ''Polish American Congress"
is distressed by certain published statements re-
garding American policy attributed to our repre-
sentative (Mr. Wood) in the recent UNRRA Con-
ference. He is charged with recommending that
control over Polish D.P. camps, in the American
zone in Gernuiny, shall be sliifted to representa-
tives of the Polish Provisional Gt)vernment. I
shall be indebted to you if I may have an early
report from your Department regarding the ac-
tual fdftx in this connection.
It occui's to me that any such order would violate
the position which we took at London (and which
UNO ratified) in opposition to the Soviet proposal
that all such D.P. and refugee camps should be
in the hands of representatives of the government
of which the D.P.'s and the refugees are nationals.
We took this position for obvious leasons which
apply with [Particular force to displaced Poles who
decline to trust themselves to the Polish Provi-
sional Government.
Inasmuch as the UNO "Conunittee on Refugees
and Displaced Persons" is now opening its consid-
eration of this whole subject at London, it would
seem to be specially important that this matter be
cleared up at once. I shall appreciate an early
report from your Department.
In connection with this London meeting, I want
to urge again tiiat our Government earnestly con-
sider whether it would not be greatly helpful to the
D.P. problem if our representative at London were
instructed to propose a renewal, in some appropri-
ate form, of the so-called "Nansen Passports"
which were issued after World War One by the
League of Nations. I should also welcome your
conuuents upon this matter.
With warm personal regards and best wishes,
Cordially and faithfully,
Arthur H. A^axoexberg
Mm/ 14. 1!)'/;
M\ Dear Senator A'axdexberg :
Thank you for bringing to my attention, in your
letter of April 9, the distress felt by certain of the
Polish groups in this country concerning United
States policy in coiuiection with Displaced Persons
camps, as they understand it.
Yoiu- recollection of the official United States
jiosition taken in London on the control of refugee
camps is, of course, perfectly correct. We opposed
then and continue to oppose any requirement that
the controlling personnel of such camps should be
comprised of representatives of states of which the
Displaced Persons are citizens.
The question under discussion at the recent
UNRRA conference in Atlantic City was. however,
a different one; it concerned the liaison officers. who
are stationed in these camps to assist the repatria-
tion of those refugees who wish to return to tlieir
countries. These officers are in no way in control
of the camps. In view of the functions of the
liaison personnel, it has appeared to the Depart-
ment obviously desirable that they should be ac-
ceptable to the governments of the countries to
which the Displaced Persons are returning. For
your information, I am enclosing a co]\v of that
1004
DEPARTMENT OF STATE BULLETIN
portion of UNRRA Resolution No. 92 bearing on
this subject.
We recognize that the position of the liaison offi-
cei's allows them an opportunity to influence those
with whom they are in contact to some extent. To
the extent that tlie influence of the new liaison offi-
cers in Polish Displaced Persons cami)s facilitates
repatriation of those willing to return to Poland,
we feel the whole problem of Displaced Persons
may be reduced to manageable proportions, and
the Army thereby relieved of some of its respon-
sibilities in this connection. To the extent that
this opportunity for influencing the displaced per-
sons is misused by the liaison officers, you may be
sure that this Government will exert pressure for
a correction of the situation.
Your letter further discusses the possibility of
renewing the so-called "Nansen Passport" system.
As vou doubtless know, the subject of the renewal
of the system of issuing Nansen passjiorts or sim-
ilar documents has been under consideration by the
Intergovernmental Committee on Refugees for
some time j^ast. A comprehensive report on this
subject has been prepared and I am enclosing a
copy herewith. The Department has at no time
objected to the issuance of documents of this nature
and I will be glad to instruct the representative
of this Government at any meeting concerning this
subject actively to favor the adoption thereof.
I trust the foregoing will be useful to you and
!-egret the delay in responding to your letter. II
there are any further points on this or related
matters on which we could be helpful, please let
me iinow.
With best personal wishes.
Sincerely yours.
Dean Acheson
Acting Secretary of State
Chicago Convention on International Civil Aviation
STATEMENT BY ASSISTANT SECRETARY CLAYTON
On March 12. 1945 President Roosevelt sent to
the Senate for its advice and consent the Chicago
Convention on International Civil Aviation. On
March 19, 1945 I appeared before a subcommittee
of this Conunittee during the hearings then in
progress to urge the ratification of the Convention
on International Civil Aviation. Under Secretary
of State Dean Acheson, William A. M. Burden,
Assistant Secretary of Commerce for Aviation
Matters, L. Welch Pogue, Chairman of the Civil
Aeronautics Board, Edward Warner, Vice Chair-
man of the Civil Aeronautics Board, Robert
A. Lovett, Assistant Secretary of War for Air,
ArtemusL. Gates. Assistant Secretary of the Navy
for Air, Gen. H. R. Harris, Chief of Stal! of Air
Transport Command, all likewise testified in sup-
port of ratification of the convention. I am firmly
convinced that the rapid expansion of air trans-
port throughout the world has made the need for
the convention greater and more urgent than ever.
The Convention on International Civil Aviation
Made before the Senate ("onimittee on Foreign Rela-
tions on May i!9 and released to tlie press on the same date.
was drawn up at the International Civil Aviation
Conference which was held in Chicago. November
1, 1944 to December 7. 1944. Because of the fact
that three other agreements i-elating to inter-
national aviation were drawn up at the same con-
ference, there has been some confusion concerning
the relationship between the four documents and,
in some respects, concerning just what is provided
for in the convention. For this reason I wish to
speak briefly about all four documents before di-
recting my remarks to the specific provisions of
the convention.
The convention is entirely independent of the
other three agreements. It is a treaty or conven-
tion which will come into force on the thirtieth
day after twenty-six countries have ratified it. Its
provisions are in no way dependent upon the pro-
visions of the other three agreements and a state
which becomes a party to the convention does not
thereby become a party to any of the other agree-
ments, nor does it obligate itself to do so. If the
other agreements had never become effective, in
fact even if they had never been drafted, the con-
A
JUNE 9, 1946
1005
vention would still be necessary and could still be
ratified as it stands.
Among the other three documents drafted at
Chicago is the Interim Agreement on Interna-
tional Civil Aviation. It is independent of the
other two and of the convention. It could have
been drawn up in its present terms and become
effective without eitlier the convention or the other
two agreements having been drafted.
The Interim Agreement provides ,f or the estab-
lishment of a provisional organization whose prin-
cipal function is to prepare aviation standards for
the consideration of the permanent organization
envisaged by the convention. The provisional or-
ganization, known as PICAO, is already function-
ing in Montreal where a meeting is currently being
held on these questions. The provisional organi-
zation, however, under the terms of the agreement,
can only remain in existence for approximately
two more years or until the convention establishing
a permanent International Civil Aviation Organ-
ization comes into force.
The remaining two agreements drawn up at
Chicago are the International Air Services Tran-
sit Agreement, known as the "two freedoms'"
agreement, and the International Air Transport
Agreement, known as the "five freedoms" agree-
ment. Tlie first exclianges the rights to fly over
and make non-traffic stops in the territory of the
other parties, and the second agreement grants in
addition to those included in the "two freedoms"
agreement commercial traffic rights to the parties
which have accepted. Both of these agreements
relate exclusively to scheduled airline services.
The "two" and "five freedoms" agreements are in-
dependent of each other and a nation may be a
party to either one without being a party to the
other or may be a party to both without violating
its obligations under either.
In order to illustrate the distinctions between
the convention and the other three agreements, I
have brought with me a chart illustrating the chief
purposes of each of the documents. It will be
noted that 45 nations have become parties to the
Interim AgTeement; 8 nations have ratified the
convention and in several other nations the process
of ratification is in its final stages; 27 nations have
accepted the "two freedoms" agi-eement; and 15
nations have accepted the "five freedoms" agree-
ment.
Since the convention is independent of the other
three agreements, we can examine its provisions
without further reference to the others. The con-
vention provides for an International Civil Avia-
tion Organization, known as ICAO, having an
assembly on which every nation a party to the con-
vention is entitled to be represented, as well as a
21-member council to be elected by the assembly,
due regard being given to the importance of each
nation in the field of international aviation, to the
contributions of each nation to the development of
international aviation, and to representation of all
geogi-aphic areas of the world. The convention
also provides a basic set of standards and practices
to govern modern international civil aviation.
The principles contained in the convention apply
to air navigation, air transport, and their related
technical phases but do not cover the rights of
connnercial entry of scheduled airlines into the
territory of contracting parties. The convention
is the most recent development in a field in which
some progress has already been made.
In 1931 the United States ratified the Conven-
tion on Civil Aviation, signed at Havana in 1928.
This convention was adhered to by 10 other nations
all in the Western Hemisphere. In addition tliere
is tlie Convention Eelating to the Kegulation of
International Air Navigation, which was signed
in Paris in 1919. The United States is not a party
to the Paris convention.
In many respects the Paris and Havana con-
ventions contain similar principles, but there was
a divergence between their provisions that made
for confusion in the operation of air services be-
tween the points of the Western Hemisphere and
the points in Europe. A comparison of the Chi-
cago, Paris, and Havana conventions was set forth
in last year's hearings before the subcommittee of
this Committee. Today air navigation is world-
wide in scope and involves routes traversing all
continents. To avoid confusion between two pre-
war arrangements adhered to by different sets of
countries, it is important to have a single agree-
ment which would have wide acceptance and the
Chicago convention is intended to fill this role.
Let us turn now to a more detailed examination
of the provisions of the convention drafted in Chi-
cago which is now before you.
Part I contains general provisions pertaining to
air navigation and restates a number of the basic
principles appearing in the Paris and Havana con-
ventions which in the light of experience have
1006
been found to be satisfactory. These principles
relate to matters such as the following :
—exclusive sovereignty of each state over the
air space above its territory;
— reservation by each state to its own aircraft
of the exclusive privilege of carrying traffic be-
tween any two points in the territory of such state ;
— requirement that foreign aircraft will com-
ply with the rules and regulations of the country
flown over or into;
— agreement by each state to keep its aeronauti-
cal regulations uniform to the greatest possible
extent with those established under the conven-
tion; provision for adoption and amendment of
such regulations, standards, and procedures;
—exchange of the rights of transit and non-traf-
fic stop among contracting states with respect to
non-scheduled services, and the exchange of rights
of commercial entry for such non-scheduled serv-
ices subject to whatever conditions or limitations
each state considers desirable ;
— provision that scheduled international serv-
ices cannot be operated except by special permis-
sion of the state concerned ;
—rules of the air established by convention shall
apply to flights over the high seas ;
— measures to prevent spread by means of air
navigation of cholera, typhus, smallpox, yellow
fever, plague, and other communicable diseases;
— non-discriminatory charges for airports and
facilities ;
— agreement to adopt all practicable measures
for facilitating and expediting air navigation ;
— provision for practicable measures to assist
aircraft in disti'ess;
— investigation of accidents ; and
—conditions to be fulfilled with respect to air-
craft, such as documents, certificates of airworthi-
ness, licenses of personnel, and use of radio equip-
ment.
Part II provides for the establishment of the
International Civil Aviation Organization and de-
fines the duties of its constituent assembly and
council. All of the contracting states are to be
represented on the assembly, which is scheduled to
meet annually and take appropriate action upon
reports of the council. It may also deal with mat-
ters referred to it by the council, and refer other
matters to the council for appropriate action.
The council is a smaller 21-member body which
DEPARTMENT OF STATE BULLETIN
functions largely in an executive capacity.
Among other things, it will set up an Air Trans-
port Committee and an Air Navigation Commis-
sion to make studies in those fields ; it will collect,
study, and disseminate information on air-navi-
gation and air-transport matters ; and it will pass
upon and refer to the contracting states the ap-
proved technical annexes together with their
amendments.
These technical annexes, which comprise inter-
national standards and recommended practices,
are intended to reflect recent developments in the
art of flying; they will enable aircraft to fly all
over the world following signals and practices
which will be understood everywhere. They will
come into force as such unless a majority of the
contracting states signify their disapproval. A
contracting state is privileged to withliold per-
mission from those foreign aircraft which do not
satisfy these accepted international practices.
The Air Navigation Commission, wliich will op-
erate under the council, is to be composed of quali-
fied and experienced persons charged with the duty
of making studies of technical aviation opera-
tional matters and the findings of this commission
are to be submitted to the council for action.
Among the matters dealt with would be such prob-
lems as radio-communication procedures, air-navi-
gation aids, rules of the air, air-traffic control, air-
worthiness of aircraft and aeronautical meteorol-
ogy. The gi'eat advantages of such a study of
these questions on a world-wide basis will be appar-
ent. The fast increasing number, size, and speed
of aircraft using the airspace makes it more and
more necessary to simplify, improve, and stand-
ardize air-navigation procedures.
Part III of the convention is entitled "Inter-
national Air Transport", but does not cover the
grant of any rights for scheduled air-transport
services. I have already mentioned the provision
in part I which specifically states that no sched-
uled international air service may be operated
over or into the territory of a contracting state ex-
cept with the specific permission of that state.
Part III does contain important provisions em-
powering the council to assist contracting states,
at their request, to construct, improve, or maintain
airports and air-navigation facilities for the use
of international air-transport services, and under
financial arrangements agreed upon by the inter-
ested states.
JUNE 9, me
1007
Part IV contains the final provisions of the con-
vention, providing for the abrogation of conven-
tions and agreements inconsistent with tlie Chi-
cago convention; for the registration witli the
council of existing and future arrangements to
which the contracting states are parties ; the settle-
ment of disputes arising under the convention ; the
method of ratification, adherence, amendment, and
denunciation of the convention. The convention
also provides that the International Civil Aviation
Organization to be established may, by vote of the
assembly, enter into appropriate arrangements
with any world organization for the preservation
of peace.
I should like to repeat that international avia-
tion is developing very fast and is spurred on by
the present need for rapid and safe communica-
tion between the various parts of the world. If
this growth is permitted to continue without the
ajjplication of general uniform principles which
will make the development an orderly process, the
world may shortl}' be faced with confusion of regu-
lations, techniques, and practices which cannot
help but deprive us of the many advantages which
aviation can offer. For these reasons, we believe it
to be urgently necessary for the Chicago Conven-
tion on International Civil Aviation to come into
force quickly.
A number of the foreign delegates to the provi-
sional organization at Montreal have informally
expressed surprise that, in view of our leadership
in aviation matters, we have not yet ratified the
convention. As has been noted, eight nations al-
ready have deposited their ratifications, and several
other nations are about ready to clo so. The
present PICAO Assembly meeting in Montreal un-
doubtedly will stimulate additional countries to
take similar action, and it is the opinion of many
obsei-vers that the required number of countries
will complete ratification within the very near
future.
If the convention comes into force without ratifi-
cation by us and tlie Council of the Permanent
Organization begins to function, we will be de-
prived of exerting our considerable influence in
the development of standards and techniques at a
most critical time, which is bound to affect the
expansion of our airlines throughout the world.
It is therefore my earnest recommendation that
the Senate give its advice and consent for the
ratification by the United States of the Convention
on International Civil Aviation.
Protest to Rumania Against Non-fulfilment of
Assurances to Tripartite Commission
[Released to the press June 1]
On Monday, May £7, the Representative of the
United States in Rumania, Burton T. Berry, de-
livered to the Rumanian Minister for Foreign
A fairs a note of protest against the non-fulfilment
of the assurances given hy the Rumanian Govern-
ment in January of this year to the Tripartite
Commission which was sent to Bucharest pursuant
to the decisions of the Moscoxo Conference of For-
eign Ministers, December 1946, with regard to
Rumania. The text of the note is as follows:
Upon instructions from my Government, I wish
to draw to your Government's attention two as-
pects of political life in Rumania that ai'e giving
concern to the Government of the United States.
First, the fact that no election law has been pro-
mulgated or date set for the elections, and, sec-
ondly, the abuses of the freedoms and particulai'ly
the increasing frequency of actions of violence
which mock at the application of the freedoms
guaranteed by the Eunumian Government through
its acceptance of the Moscow decisions.
It is now more than four months since the reor-
ganization of the Government and not only has no
date been fixed for the elections but no electoral law
for such elections has been promulgated. This
situation, incompatible with the Moscow decisions,
gives the impression tliat the Government is pro-
crastinating in the fulfilment of its promise.
While a measure of free expression has been pro-
vided bj^ the authorization of the National Peasant
and National Liberal Parties to publish news-
papers, the exercise of censorship has in certain
notable instances prevented the free dissemination
of public announcements, and the suspension or
suppression of papers has restricted the free ex-
pression of political views. Thus a form of cen-
sorship prevented the prompt and full distribution
1008
DEPARTMENT OF STATE BULLETIN
of the address of the United States Secretary of
State on February 28. Important passages were
also deleted by eensoi-ship from the address of
Senator Vandenberg on February 27. In addi-
tion to such official impediments to the free dis-
semination of news, I have been infoi-med of cases
where the printers union has exercised an effective
censorship and of others where an unequal distri-
bution of newsprint acts as a means of censorship.
Access to the state broadcasting facilities, ac-
cording- to my information, remains a monopoly of
certain parties within the Government contrary to
the Government's commitments under the Moscow
decisions.
An increasing number of instances have been
brought to the attention of this Mission where or-
ganized bands of hooligans have broken up meet-
ings called by the National Peasant and National
Liberal parties or interfered with movements of
members of those parties when going to attend
such meetings. While there is little point in list-
ing all such instances, I do desire to state that a
sufficient number of them have been investigated
or witnessed by Amei'ican officers to establish be-
yond any doubt the fact that political violence is
on the increase.
The legal proceedings against the National
Peasant and National Liberal Party members
charged as being responsible for incidents on No-
vember 8 are continuing, according to Bucharest
newspapers dated April 15, in spite of the Prime
Minister's assurance to Ambassador Harriman
and Sir Archibald Clark Kerr that they would be
dismissed.
The Ministers of State representing the Na-
tional Peasant and National Liberal Parties have
not been given opportunity to cooperate fully with
the Government. Full cabinet meetings are rarely
called and important pending legislation fre-
quently is not discussed in them ; in many instances
Ministers are not given adequate time to study
draft laws and in some other important cases de-
cree laws are published without having been sub-
mitted to these Ministers for their study.
In bringing these matters to your attention, it
is my purpose to point out that a definite impres-
sion is being created abroad concerning the pres-
ent Rumanian Government. The impression is
that through the Government's actions and inac-
tions, while trying to give the appearance of carry-
ing out the assurances of the Moscow decisions, it
is in reality circumventing commitments which it
has made. My Government, being a party to the
Moscow Agreement, has an interest in seeing that
this impression is dispelled. I therefore urge you
to take the necessary steps without delay to see
that it be dispelled.
Accordingly, it is believed that a different im-
pression will be attained through prompt action
on the part of the Rumanian Government in im-
plementing the assurances given the Allied Com-
mission in January by promulgating an electoral
law and setting a date for elections, at the same
time taking adequate measures during this period
prior to elections that all democratic parties may
put forward their candidates with the assurance
that the freedoms set forth in the Moscow deci-
sions apply equally to members of all sucli parties.
ILO — Continued from page 993.
Capt. John Raymond Jones, Standard Oil Company of
California, San Francisco, Calif.
A. R. Lintner, President, American Mail Lines, San Fran-
cisco, Calif.
Walter Maloney, Associate General Counsel, American
Merchant Marine Institute, New York, N. Y.
Thomas G. Plant, Vice President, American-Hawaiian
Steamship Company, San Francisco, Calif.
C. E. Shaw, Standard Oil Company of New Jersey, New
York, N. Y.
Paul Warfield, United States Lines, New York, N. Y.
Representing the Wokke3)s of the United States
Delegate:
Harry Lundeberg, President, Seafarers' International
Union of North America, San Francisco, Calif.
Advisers:
Dave Beck, Vice President, International Brotherhood
of Teamsters, Chauffeurs, Warehousemen and Help-
ers, Seattle, Wash.
Herbert L. Daggert, Port Agent, Marine Engineers Na-
tional Association, Seattle, Wash.
Joseph Harris, Port Agent, National Marine Cooks and
Stewards Association, Seattle, Wash.
Seth Levine, CIO Maritime Committee, Washington,
D.C.
Capt. C. F. May, A^ice President, National Organiza-
tion of Masters, Mates, and Pilots of America, San
Franci.sco, Calif.
Andrew McDonald, Chairman, Radio Officers' Union,
Commercial Telegraphers Union of North America,
Baltimore, Md.
Jack Wlnocur, Acting Vice Pi-esident, American Com-
munications Association, New York, N.Y.
Seceet.aey op the U. S. Dei-egation
Clarke L. Willard, Assistant Chief, Division of Inter-
national Conferences, Deijartment of State.
JUNE 9, 1946
1009
Report of Textile Mission to Japan
[Released to the press May 29]
Japan's textile industry now has one fifth of its
23ie-war cotton textile capacity and one third of its
pre-war rayon capacity, according to the report
of the recent International Textile Mission to
Japan, released May 29 by the State and War De-
l^artments. Tlie Mission's 50-page report is the
result of a lO-week survey of tlie Japanese textile
industry made while the members were attached
to General MacArthur's headquarters.
The five United States representatives on tlie
mission were : Fred Taylor, Department of State,
Chairman ; Harry L. Bailey, retired chairman of
Wellington-Sears Company; H. Wickliffe Rose,
American Viscose Company; Frank E. Eowe,
Riverside and Dan River Cotton Mills, Inc. ; and
Stanley Nehmer, Department of State. Observers
from the United Kingdom, China, and India were :
Frank Winterbottom, British member of the Com-
bined Textile Committee, United Kingdom; S. Z.
Yang and Andrew Young, China; and Bharat
Ram, Managing Director, Delhi Cloth and General
Mills, India. The following conclusions sum-
marize their findings.
The installed spindleage of the Japanese cotton
textile industry in February 1946 was 2,150,000,
of which 1,115,000 were operable. It is estimated
that by the return of stored equipment and repair
of damaged machinery, this installed spindleage
will increase by Jamiary 1947 to 3,285,000, of
which an estimated 2,990,000 will be operable. Be-
yond this date, an additional 235,000 spindles may
be added tlirough further repairs. The recent
USCC-CCC ^-War Department raw-cotton import
program is based on this current capacity. The
Mission is satisfied that the maximum output in
1946 from workable spindles is sufficient to take
care of the 225,000 short tons of cotton to be im-
ported. Tlie Mission believes it is unable to pre-
sent a realistic appraisal of the 1947 position until
its estimates of production in 1946 from installed
and operable spindles are proved. The Mission
assumes a continuation of sliipments of cotton
during 1947 including sufficient supplies to build
up a workable stock equal to at least two months'
consumi^tion. By the end of November, 144 mil-
lion pounds of yarn are estimated to be produced
for the export part of the USCC-CCC-War De-
partment agreement. .This should produce in 1946,
in addition to 900,000 pounds of knit goods and 30
million pounds of yarn, approximately 350 million
square yards of cloth.
Japan's current potential productive capacitj'
of rayon is 354 million pounds annually, of which
306 million pounds represents machinery in place.
Of the present potential capacity, 120 million
pounds represents rayon yarn and 234 million
pounds rayon staple. The present shortages of raw
materials have reduced the output of the industry
to about 13 million pounds a year. The pounds of
rayon staple would represent more than the total
capacity of spindles available for processing.
About 118 million pounds is tlie maximum which
could be spun on all existing worsted, woolen, and
silk spindles, together with those cotton spindles
in the hands of the rayon companies. Beyond
these 118 million pounds, there would be a possi-
bility of export of rayon staple; on the basis of
pre-war markets the United States, China, and
Mexico might offer a potential.
Tlie reliability of estimates of reconversion and
production in the woolen and worsted industry in
1946 is more uncertain than in the case of cotton.
Woolen and worsted manufacturers have esti-
mated that they could produce about 25 million
pounds of woolen yarn and 35 million pounds of
worsted yarn in the next 12 months if raw ma-
terials are made available. No import pro-
gram has as yet been set up and the rate of con-
sumi^tion of the present stocks of raw wool and
substitute fibei's has yet to be determined. The
mixture cloths made from the materials at pres-
ent available in Japan are unlikely to be of use for
exjDort since 100 percent wool and worsted cloths
form the bulk of such demand. The modern tend-
ency in the United States and the United Kingdom
is to develop wool and rayon staple mixture cloths.
The Mission is of the opinion that any wool import
program should be carefully considered along with
that for other fibres.
In the Mission's survey of Japan's stocks of
clothing, raw materials, yarn, and cloth, incom-
^ U. S. Commercial Company — Commodity Credit Cor-
poration. ,
1010
DEPARTMENT OF STATE BULLETIN
plete reports show that as of the end of Februai'j-
Japan had stocks of 575 million squai'e j'ards of
cloth and raw materials and yarn sufficient to pro-
duce an additional 425 million square yards of
cloth. The availability of a part of these stocks
for export will depend upon an estimation of
Japan's clothing requirements, which the Mission
suggests should be based upon a survey of the
actual clothing being worn by the Japanese today.
The INIission has not found direct evidence of un-
due clothing shortage in comparison with other
countries.
Japan's four major textile machinery manufac-
turers, who account for approximately 75-85 per-
cent of new machinery production, have the capac-
ity to increase Jaj^an's spindleage and loomage in
1946 by 290,000 and 11,300, respectively. In 1947
they will be able to produce over 785,000 spindles
and 16,800 looms. The peacetime reconversion of
Japan's textile machinery manufacturers is com-
plicated by the problems of reparations and re-
moval of Japan's war potential.
A i^roblem facing the Japanese textile industry
is the availability of labor. The jaresent shortage
is due directly to the shortage of the food which the
mills make available to their workers, who are girls
and who prefer to remain in rural areas where food
is plentiful. Mill owners have been forced to
dej)end ujDon the black market to secure additional
food for their workers.
WIJ^ANT—Confinucd from page 979.
''Solutions of international economic, social,
health, and related problems; and international
cultural and educational cooperation; and
"Universal respect for, and observance of, human
rights and fundamental freedoms for all without
distinction as to race, sex, language, or religion."
Taken together, these constitute a large order,
but the jseoples of the world will be satisfied with
nothing less.
To obtain these objectives the Economic and
Social Council has the power of making recom-
mendations to the governments of the world. This
power to recommend, to draw up draft treaties and
conventions for putting the recommendations into
effect, to focus the spotlight of world opinion on
violations of human rights, on economic failure
and social injustice, can be a very great power if
rightly used.
The Council's task is a continuous one and it will
never be finished. The "economic and social ad-
vancement of all peoples" is limited by no horizon.
This is the very substance of peace itself.
We stand at the crossroads of our civilization
on a brave front with the greatest future of all
time before us and the gravest responsibility with
us and, I believe, a faith and a capacity, if organ-
ized, to drive "through hardship to the stars'".
Statements, Addresses, and Broadcasts of the Week
The Secretary of State
Assistant Secretary Braden
Assistant Secretary Clayton
John G. Winant
U.S. Representative to the Eco-
nomic ami Social Council
Estlier C. Brunaiier
U.S. Representative to UNESCO
Preparatory Commission
Charles Thomson
Adviser on UNESCO Relations, Of-
fice of International Informa-
tion and Cnltural Affairs
Inter-American Military Cooperation.
Printed in this issue.
"Policy Based on I'rinciples." Not
printed. Text issued as press re-
lease 376 of May 31.
Chicago Convention on International
Civil Aviation. Printed in this
issue.
"Pursuit of Happiness in the Econom-
ic and Social World." Printed in
this issue.
'Is UNESCO the Key to Internation-
al Unde;-standing?" Not printed.
Text issued as press release 374
of May 31.
Statement made on May 29 at Hear-
ings before the House Foreign Af-
fairs Committee on H. R. 6326.
Address made at the Albright College
Commencement at Reading, Pa.,
on June 2.
Statement made on May 29 before the
Senate Committee on Foreign Re-
lations.
An address made before the American
Association for the United Na-
tions on May 16 in New York,
N. Y.
A radio program over the NBC net-
work on June 1.
]U!\E 9, 1946
1011
Statement on Repatriation
of Germans in Spain
[Released to the press May 29]
On May 18 the United States Government pre-
sented to the United Nations Security Council
Subcommittee on S^Dain a statement which in-
chided information on the Germans remaining in
Spain. There still remain in Spain il,-20i> Nazis,
exchisive of families, whose repatriation the
United States Government wishes to effect as
soon as 250ssible. These Germans include 931
officials, 794 intelligence agents, 450 technicians,
scientists, engineers, and businessmen, and 30
border guai'ds. To expedite the removal of
these Germans the United States Government is
making available a War Shipping Administra-
tion vessel, the Marine Perch, capable of carry-
ing 947 passengers, which will arrive on June
6 at the Spanish port of Bilbao on its wa}^ to Ger-
many. The American Embassy in Madrid, in co-
operation with the British and French representa-
tives there, has made available to the Spanish Gov-
ernment this information, giving that govei'n-
ment one month advance notice in which to con-
centrate an adequate number of Germans for
removal.
Release of Property of
German and Japanese Refugees
[Released to the press May 29]
Refugees from Germany and Japan who are not
residing in Germany, Japan, Ital3% Rumania, Hun-
gary, or Bulgaria may now secure the release of
their property in the United States from the spe-
cial blocking restrictions imposed by reason of
their German or Japanese nationality, according
to a joint announcement issued May 29 by the State
Department, Treasury Department, and the Alien
Property Custodian. Accordingly such refugees
may avail themselves of all the liberal general and
blanket licenses issued by the Treasury Depart-
ment once their status as ho7ia fide refugees has
been established.
This new step is in conformity with the Govern-
ment's policy of giving immediate assistance to
those groups who were the victims of Nazi and
Japanese oppression as soon as information con-
cerning them becomes available, despite the fact
that such persons may technically be enemies of
the United States. Applications for the removal
of property belonging to these i^ersons from the
special restrictions of Treasury's General Ruling
No. IIA should be filed with the Treasury Depart-
ment through the appropriate Federal Reserve
Bank by banks and other persons in the United
States holding the property. Refugees in foi-eign
countries should supplement such applications by
submitting to the American Mission in the country
in which they reside affidavits or statements by
responsible organizations and other evidence
which indicates that the refugees did not act in a
manner inimical to the Allied cause during the
war. The applications will be considered jointly
hy the Treasury Department and the Office of the
Alien Property Custodian.
It was also pointed out that refugees living in
European countries which have concluded defrost-
ing arrangements with this Government — namely,
France, Belgium, the Netherlands, Czechoslovakia,
Luxembourg, Norway, and Finland — may obtain
unrestricted use of their property upon the joint
recommendation of the appropriate authorities of
such countries and the American Missions therein.
Philip K. Hitti To Visit
Near East
The Department of State and the Lebanese Le-
gation announced on April 30 that Philip K.
Hitti, head of the department of oriental lan-
guages at Princeton University, Princeton, N. J.,
is leaving shortly for a four months' lecture and
research tour in the Near East under the sponsor-
shi^J of the Lebanese Government and the De-
partment's cultural-cooperation program.
As one of the United States foremost oriental
scholars, Dr. Hitti will lecture in Lebanon, Syria,
Iraq, and Egypt on Near Eastern history, with
particular emphasis on the contributions of Amer-
ican scholarship to that field. He will bring up
to date an almost completed exhaustive history
of a section of the Near East and will investigate
further possibilities for American archeological
and historical research in the area. As an Amer-
ican of Lebanese origin who is making significant
scientific and cultural contributions to American
life, Dr. Hitti will also be able to report on the
contributions of other Arab-Americans to the
United States.
1012
DEPARTMENT OF STATE BULLETIN
Responsibility for Institute of Inter- American Affairs
and Inter-American Educational Foundation
REMARKS BY ASSISTANT SECRETARY BRADEN
[Released to the press May 28]
On May 20, as you know, under the provisions
of President Truman's order, the Institute of
Inter-American Affairs and the Inter-American
Educational Foundation became direct responsi-
bilities of the Department of State. This means
that if in the past the Department's interest in the
programs conducted by tliese corporations under
the sponsorsliip of tlie Office of Inter-American
Affairs was less direct, although always of the
deepest concern, it is now by its nature immediate
and of even greater concern. This interest can
best be expressed by the fact that Secret ai'y Byrnes
has asked Assistant Secretaries Benton, Clayton,
Russell, and me to sit on the Boards of the Institute
and the Foundation to shape their policies and
assure the successful accomplishment of their
programs.
The past success of these important cooperative
programs in the fields of healtli and sanitation.
agriculture, and education is due in no small mea-
sure to the zeal and enthusiasm shown by each and
every one of you in your daily work here in Wash-
ington and the equally fine spirit demonstrated by
the workers who are carrying out these programs
in the field. These unremitting efforts must neces-
sarily continue if these programs are to succeed,
and succeed they must if the good-neighbor policy
of which they are a concrete and tangible expres-
sion is to represent what it actually does mean —
continuous and permanent cooperation among the
countries of this hemisphere. This is a real chal-
lenge to each and every one of us and particularly
to you who are the laborers in this vineyard of
inter-American solidarity. I know that Mi*.
Byrnes can count on your continued and loyal sup-
port, and I am certain that he would want you to
know that he and everyone in the Department are
fully behind the important work that you are
accomplishing.
Parcel Post Service to U. S. Zone in Germany
[Released to the press May 281
Effective June 1, a limited one-way parcel-post
service will be established from the United States
to the American Zone of Occupation, Germany,
except the American sector of Berlin.
This service is limited to ordinary (uni-egistered
and uninsured) gift parcels not exceeding 11
pounds in weight. Only one parcel per week may
be sent by or on behalf of the same sender to or
for the same addressee. The contents of the par-
cels will be limited to such essential relief items
as non-i:)erishable foods, clothing, soap, mailable
medicines, and other similar items for the relief of
human suffering. The inclusion of writing or
printed matter is prohibited.
Each parcel must be conspicuously marked
"Gift Parcel"', and the sender must attach a cus-
toms declaration in which the contents and value
of the parcels are properly itemized. The postage
rate will be 14 cents per pound or fraction thereof.
The iDarcels should bear the name of the ad-
dressee, street and house number, town, postal dis-
trict number (if known), province, American
Zone, Germany.
The indication "American Zone, Germany" is
essential, since the service is to that zone only.
Box numbers may be used as pnvt of the address,
provided the name of the box holder is shown.
Parcels will not be accepted for mailing when
addressed "General Delivery" or when addressed
for delivery in Berlin.
Parcels may be mailed to the following prov-
inces and cities which are located in the American
Zone of Occupation :
Provinces. Northern Baden, except Kreis of
JUNE 9. 1946
1013
Rastatt and Buhl, Northern Wiirttemberg, Ba-
varia, Land Hessen, Kurhessen, Nassau.
Cities. Bremen, Bremerhaven.
Parcels which are undeliverable will not be re-
turned to the sender, but will be turned over to
authorized German relief organizations for distri-
bution to the needy.
The export control regulations of the Office of
International Trade Operations of the Depai'tment
of Commerce are applicable to the service.
Fui'ther information concerning this service
may be obtained at local post offices.
The question of the resumption of parcel-post
service between the United States and Austria is
under active consideration and it is expected that
an announcement to that effect will be made in the
near future.
English Language and Orientation Courses
for Foreign Students and Trainees
A number of colleges and universities are plan-
ning to conduct English language and orientation
centers during the summer of 1946 for the instruc-
tion of foreign students and trainees who expect
to enter American institutions in the fall or take
up training in government or industry. These
courses are especially designed to meet the require-
ments of foj'eign students and trainees for inten-
Insliiuiion
Bucknell Universit)', Lewis-
burg, Pa.
Colorado School of Mines,
Golden, Colo.
University of Indiana, Bloom-
ington, Ind.
Louisiana State Univ., Baton
Rouge, La.
University of Michigan, Ann
Arbor, Mich.
Mills College, Oakland, Cahf.
Orientation Center, Wilson
Teachers College, Washing-
ton, D. C.
Queens College, Flushing,
N. Y.
Swarthmore-Hamilton, Hamil-
ton College, Clinton, N. Y.
Wellesley College, Wellesley,
Mass.
Inclusive Dates of Session
July 8-Aug. 31
Begins June 3 for about
12 weeks
June 19-Aug. 16
July 10-Sept. 3
July 1-Aug. 23
July 6-Aug. 17
Continuous; entrance any
Monday for required
length of time
June 3-Aug. 23
July 1-Sept. 21
July 28-Sept. 7
The total cost of the sessions varies according
to the place but will range between $200 and $250,
including tuition, room, and board.
The language and orientation centers at Welles-
ley College, Louisiana State University, Bucknell
University, and Mills College may accept, free of
tuition, not more than 2.5 foreign students or train-
ees who come to the United States under the spon-
sive refresher courses in tlie English language
prior to regular academic work in this country. In
addition, the courses generally provide orienta-
ti(m in American customs and civilization and uni-
versity organization.
The following information has so far become
available to the Department :
Name of Director
Dr. C. Willard Smith
Dr. Harry M. Crain
Mr. Wihiam J. Jansen
Dr. John A. Thompson
Dr. Charles C. Fries
Dr. Dominic Rotunda
Mrs. Margaret L. Em-
mons (Acting Director)
Mr. W. Virgil Nestrick
Mrs. Helen Hall
Miss Carol M. Roehm
Kind of Instruction
English for foreign students
English for foreign engineering
and scientific students
English for foreign students and
Latin American teachers
English for Latin Americans
English for Latin Americans and
Chinese
English for Latin Americans
English for foreign students and
trainees, under Government
auspices
English for foreign students
English for foreign students
English for foreign students
sorship of a United States Government agency or
a recognized private institution acting as agent
for a Government program.
Further information may be obtained by com-
mmiicating direct with the institution in question
or with the Student and Trainee Branch, Division
of International Exchange of Persons, Depart-
ment of State.
J014
DEPARTMENT OF STATE BULLETIN
MILL — Continued from page 983.
ing a Philippine Foreign Affairs Training Pro-
gram.* Selected groups of Filipinos have been
brought to this coimtry to participate in sessions
arranged jointly by the Division of Training Serv-
ices and the Division of Philippine Affairs. A
number of the graduates of the Pliilippine Foreign
Affairs Training Program are now serving abroad
at Ajnerican Foreign Service establishments where
they are receiving valuable experience.
With independence it is expected that Philip-
pine foreign relations will be patterned closely
after American practice. The Department will in
all probability continue its Philippine Foreign Af-
fairs Training Program, and it is probable that
this country will represent Philippine interests
abroad while the Philippine Foreign Service is be-
ing developed.
Inevitably the Philippines will develop close
working relations with the peoples and countries
of Southeast Asia and China. At the same time
the Philippines will be expected to play an active
part in the deliberations of the United Nations
of which it is already a member.
4- Inauguration Ceremonies
Plans are now being completed for the July 4
independence ceremonies of the Philippine Re-
public in Manila. Invitations will be extended
jointly by the United States and Philippine Com-
monwealth Government to all nations with whom
the United States maintains diplomatic relations.
It is hoped that President Truman may be able
to attend these ceremonies. The event is being
planned with its historic significance clearly in
mind.
Philippine Future
With the ushering in of the new independent
Republic of the Philippines, a historic era in
American-Philippine relations will have come to
an end and a new era in such relations will be-
gin. The Philippines has during the present cen-
tury been the voice of America in the Far East.
'For an article by Mr. Mill on the Philippine Foreign
Affairs Training Program, see Buixetin of Feb. 3, 1S>46,
p. 148.
The Far East has tended to judge us by what we
have done or not done in the Philippines. The
fact that we will have kept our promise to the
Filipinos to gi'ant them independence cannot but
fail to make a deep impression on the peoples of
Asia and further increase the reservoir of good
will we have built up in that area.
But the granting of independence to the Philip-
pines will by no means indicate that the United
States is severing itself completely from the Phil-
ipjjines. Our ties with the Islands will continue
to be extremely close after independence. Eco-
nomically, politically, militarily, the two coun-
tries will be on common ground for many yesivs
to come.
Even the most optimistic do not deny that the
Philippines is being given its independence at
a very critical time in its history. The United
States is keenly aware that the Philippines faces
major problems in the days to come. The coun-
try's economic life must be restored and put in
better balance ; a broad program of social reform
must be put in effect; the prosecution of collabo-
rators must be carried forward; the country's
badly depleted revenues must be restored; and
law and order under democratic processes must be
maintained. In all these matters, however, the
United States is jirepared to give the Pliilippines
the maximmn assistance possible to another sov-
ereign nation. Thus aided and encouraged there
is no doubt that the Philippines will be able to
meet the challenee of the future.
Foreign Commerce Weekly
The following article of interest to readers of
the Bulletin appeared in the June 1 issue of the
Foreign Commerce Weekly, a publication of the
Department of Commerce, copies of which may
be obtained from the Superintendent of Docu-
ments, Government Printing Office, for 10 cents
each :
"Italy's Tobacco Trade : Critical Problems
Faced" by .John I. Kross, agricultural economist,
American Embassy, Rome.
JUNE 9, 1946
1015
Termination of the President's
War Relief Control Board
[Released to the press by tbe White House May 14]
The President's War Kelief Control Board,
which had expected to cease its activities on March
31 but M'hich, at the request of the President and
executive agencies, was continued, completed its
work on May 14; and on its recommendation the
President signed an Executive order ^ terminating
the activities of the Board as a wartime agency.
The President's War Eelief Control Board for
five years has supervised relief agencies, handling
more than one billion dollai's contributed by the
American public for foreign and domestic war
relief. Regulations of the Board were effective
in reducing the number of agencies from 700 to
less than 100, and it was through the Board that
the National War Fund was conceived and oper-
ated. The Board also was instrumental in re-
ducing the overhead costs of relief agencies from
as much as 80 percent in some cases to less than 5
percent in many, thereby saving for charitable
purposes approximately 20 million dollars out of
the contributors' dollars.
The Board assisted in the development of a
non-profit program of food-package relief through
the establishment by 24 American voluntary relief
agencies of the Cooperative for American Remit-
tances to Europe (CARE), which is now engaged
in sending several million packages to individuals
and institutions in the food-deficit countries of
Europe.
Joseph E. Davies, former United States Am-
bassador to Russia, has served as the Board's chair-
man since its establishment on March 13, 1941.
Charles P. Taft was also an original member.
Charles Warren succeeded Dr. Frederick P.
Keppel in December 1943, ujion the death of the
latter.
The Board is notifying the various agencies con-
cerned that no further reports will be required for
the period subsequent to March 31, 1946 and that
the use of the phrase President's War Relief Con-
trol Board Registration should be discontinued.
" Ex, Or. 9723 (11 Federal Register 5345) .
• Functions transferred from War Areas Economic
Division.
' These functions were transferred from the UNRRA
Operations Branch of the Office of the Foreign Liquidation
Comml.ssioner.
The Departiiiejit
Departmental Regulations
131.2 Special Assistant to the Assistant Secretary for
Economic Affairs: (Effective .3-115^6)
I RESPONSiBir.iTiES. The Special Assistant to the
Assistant Secretary shall have the following respon-
sibilities :
A General. Advise and assist the Assistant Secre-
tar.v on assigned aspects of the relations of the Department
of State witli other departments and agencies, interna-
tional bodies, and representatives of other Government
bodies.
B United Nations Relief and Rehabilitation Ad-
ministration Affairs ( UNRRA ).-
1 Act as alternate for the Assistant Secretary on
all UNRRA matters.
2 Be the primary liaison point for the Department
with UNRRA.
3 Establish or approve, and provide general
guidance in the execution of, all policies and programs
governing the operations of the UNRRA Division (UD),
Office of Budget and Finance (OBF).
4 Exercise the authority and perform the
functions relating to the expenditure of funds and the
provision of supplies and services in connection with
United States participation in UNRRA except for the
functions specifically assigned to OBF by Departmental
Regulation 124.4, and the functions carried on by UD.
5 Execute such documents on behalf of the
Department of State as may be necessary in the dis-
charge of the responsibility delegated to him in respect
to UNRRA. The Special Assistant may redelegate this
authority.
124.4 UNRRA Division (UD) of the Office of Budget and
Finance (OBF) : ' (Effective 3-S-46)
I Functions. UD, under the general direction of the
Director of OBF and in accoi'dance with policies and pro-
grams established or approved liy the Special Assistant to
the Assistant Secretary for Economic Affairs (designated
to represent the Assistant Secretary on United Nations
Relief and Rehabilitation Administration (UNRRA)
affairs), shall :
A Have general responsibility for directing the var-
ious phases of the UNRRA supply operations tlirough the
facilities of U. S. Government procuring agencies.
B Provide such assistance in regard to the formula-
tion of policies and programs in connection with U. S.
participation in UNRRA as may be requested by the
Special Assistant.
C Assist UNRRA in processing relief supply-require-
ments.
D Process UNRRA requisitions for supplies to be
procured from U. S. contributions to UNRRA.
B Prepare commitment letters and other procure-
ment documents.
1016
DEPARTMENT OF STATE BULLETIN
F Maintain continual liaison witli UNRRA and the
procuring and servicing agencies on procurement and
movement of relief supplies.
G Maintain adequate accounting and operating
records.
H Prepare periodic and special reports as required
by the Special Assistant, and Government agencies and
the Congress.
122.8 Secretariat of the Board of Examiners for the For-
eign Service (Effective 3-1-46). The Board of Ex-
aminers for the Foreign Service conducts examinations
to determine the eligibility of candidates for the Foreign
Service of the United States. It is composed as follows :
the A.ssistant Secretary of State for Administration who
shall be Chairman; the Director of tlie Office of the For-
eign Service (OFS) who shall act as Chairman in the
absence of the Assistant Secretary ; the Chief of the Divi-
sion of Foreign Service Personnel (FP) ; the Executive
Director of the Board of Examiners for the Foreign
Service ; an officer of the Department of Commerce desig-
nated by the Secretary of Commerce and acceptable to
the Secretary of State; an officer of the Department of
Agriculture designated by the Secretary of Agriculture
and acceptable to tlie Secretary of State; and the Chief
Examiner of the Civil Service Commission.
I Functions. The Secretariat will assist the Board
of Examiners for the Foreign Service in the formulation,
coordination, and administration of all matters pertaining
to the Written and Oral Examinations for admission to
the Foreign Service of the United States. Its functions
will include :
A Preparation of the Written Examinations to in-
sure that they constitute a suitable means of selection of
candidates for the Foreign Service.
B Supervision of the printing of the Written Exam-
inations.
C Preparation and direction of a suitable program
of publicity to insure that all interested individuals and
institutions are informed of the times and pl.ices of
examinations, of their general character, and of the pro-
cedures to be followed in making application for designa-
tion to take the examinations.
D Supervision of all arrangements in the United
States and abroad for the actual conduct of the Written
Examinations and the Oral Examinations. This func-
tion will include liaison with tlie War Department, the
Navy Department, the Civil Service Commission, the Col-
lege Entrance Examination Board, private institutions
and organizations and with Foreign Service establish-
ments and will include the organization, direction, and
administration of examining panels to conduct Oral Ex-
aminations in the United States and abroad.
E Supervision of the scoring, grading, and averaging
of the Written Examinations, including the making of all
neceissary arrangements with the Civil Service Commis-
sion, the College Entrance Examination Board, and experts
selected to read and score examinations.
F Handling of all necessary correspondence and in-
terviews with prospective applicants and with candidates.
G Maintenance of liaison with the Committee on the
Revision of the Foreign Service Examinations and with the
College Entrance Examination Board in respect to matters
dealt with by these organizations in connection with the
preparation of, and the administration of the examinations.
H Maintenance of liaison with universities and col-
leges which educate candidates for the Foreign Service.
I Maintenance of the records of the Board.
II Organization. Tlie Secretariat will function under
the direction of the Board of Examiners for tlie Foreign
Service, but will be considered a part of OFS for admin-
istrative and budgetary purposes. The Executive Direc-
tor of the Board of Examiners for the Foreign Service will
also serve as Executive Director of the Secretariat.
230.1 Requests for Information From German, Italian-
Fascist, and Japanese Archives: (Effective 2-15-46).
I In the interest of security and in order to expedite
the flow of essential policy information from the flies of
German, Italian-Fascist, and Japanese official and quasi-
official organizations to interested Divisions and Offices
of the Department, and to facilitate arrangements with
other Allied Governments on investigative procedure foi
combined exploitation of enemy documents, the Depart-
ment hereby centralizes responsibility of supervising the
collection and processing of information from these
sources in the Division of Foreign Activity Correlation
(FC), Office of Controls (CON).
II All requests from other Offices and Divisions of the
Department, regardless of the nature, for information
from the sources mentioned above shall be made to FC.
III All i-equests to assign investigative personnel to
this project, regardless of the purpose, shall be submitted
to FO for approval.
IV All instructions to our diplomatic missions abroad
concerning the review of enemy diplomatic and consular
records shall continue, as in the past, to be made by or
with the full approval of FC.
V Liaison with the War, Navy, and Justice Depart-
ments on all matters relating to the archives mentioned
above shall continue to be the responsibility of FC.
322.1 Employment of Aliens: (Effective 1-28^6).
The Department of State has adopted the following policy
with regard to the employment of aliens in the depart-
mental and field services : (This does not apply to the
Foreign Service.)
I No alien may be employed in the Department to
serve within the continental limits of the United States.
II Naturalized citizens may be considered for
employment in the Department within the continental
limits of the United States: Provided, That they have
received their naturalization papers prior to the date of
their application for employment.
III Aliens may be employed on a temporary basis and
for specific service outside the continental limits of the
United States: Provided, That no qualified American
citizen is available. The recommendation for such an
appointment must be accompanied by a statement to the
effect that no qualified American citizen is available for
appointment.
i
JUNE 9, 1946
1017
139.1 Delegation of Authority to the Special Assistant to
the Secretary of State and Foreign Liquidation Commis-
sioner: (Effective 4-22— 16) .
[To information printed in Bulletin of October 28, 1945,
p. 704, and BuiXErriN of December 30, 1945, p. 1061, add
the following information:]
II RESPONSIBnJTT FOR FUNCTIONS AStsUiNED TO THE SEC-
RETARY OF State by Execittive Order tfrt. The Commis-
sioner shall be responsible for initiation and coordina-
tion of policies and action in connection with the
functions assigned to the Secretary of State by Executive
Order 9689, dated January 31, 1946, and the preparation
of such regulations or other documents requiring action
by tlie Secretary in the discharge of his responsibilities
under that order.
III AuPHOKiTY To Execute Contracts and Othek
Documents. The Commissioner is authorized to execute
such contracts and other documents on behalf of the
United States or the Department of State as may be neces-
sary or desirable in the performance of the functions
delegated to him, including, without derogating from the
generality of the foregoing:
A Commitment letters authorizing the procurement
and transfer of materials, equipment or services, the
charging of the cost thereof to program allocations to the
extent that funds are available, the releasing for export
and the retransfer of any such materials, equipment, and
services.
B Allocation letters authorizing the allocation and
transfer of funds.
C Revocation letters revoking any authority granted
under paragraphs III A and B.
139.2 Authorization to the Special Assistant to the Sec-
retary of State and Foreign Liquidation Commissioner
To Effect Sales of Surplus Property Through Disposal
Agencies of Foreign Governments: (Effective 4-22-46).
II The Commissioner is authorized to effect the sales
of lend-lease property located in the Africa-Middle East
Theater and Persian Gulf Command areas through estab-
lished British disiwsal agencies and to delegate to these
agencies authority to dispose of surplus property in single
transactions not exceeding $25,000 in reported cost,
subject to the following conditions :
A Disposal of United States property will be made
with the same care and favor accorded to property of
other origins.
B The United States representatives will have the
right to reclaim any property prior to final disposition.
C Due consideration will be given to the needs of
United States medical, educational or philanthropic
institutions.
D Consideration will be given to the legitimate in-
terests of United States manufacturers by affording them
a prior opportunity to acquire at competitive prices any
items readily identifiable as of their manufacture.
E Disposal will be made subject to such conditions
as will prevent reexport to the United States.
F All proposed sales will be submitted to the United
States representative for his prior approval or veto as to
price, purchaser, and condition.
G Custodial responsibility for the care and main-
tenance of projjerty pending disposition will remain with
the appropriate British disposal agency.
251.1 Advice and Assistance on Treaties and Other In-
ternational Agreements: (Effective 4-15-46). This
Departmental Regulation is issued with a view to facilitat-
ing use of the background information and technical serv-
ices of the Treaty Branch of the Division of Research and
Publication (RP) on matters pertaining to treaties and
other international agreements.
I Negotiation of New Treaties and Agreements.
Whenever the negotiation of a new treaty or other inter-
national agreement is being considered, the policy Office
concerned will request of the Treaty Branch background
material and advice regarding relevant provisions in exist-
ing treaties and agreements, the general treaty relations
of this Government with the government concerned, and
other pertinent information. As soon as tentative provi-
sions may be considered or drafted, the Treaty Branch
will be requested to make available to the policy Office the
services of a technical adviser on treaties to insure that
the agreement is properly drafted and agreed policy is ex-
pressed clearly and fully. The Treaty Branch will pre-
pare a draft in the first instance upon the request of
another office. Before a proposed treaty or other agree-
ment is submitted to the Central Secretariat (ESC) of the
Executive Staff Committees for consideration, it will be
cleared with the Treaty Branch. Before any agreement is
prepared for signature in tlie Department incorporated
into an exchange of notes or an instruction to the field,
the draft of the agreement will be initialed, in addition to
any other relevant Divisions or Offices, by the Office of the
Legal Adviser (Le) and the Treaty Branch.
II International Conferences and so forth.
A In connection with preparations for international
conferences or meetings at which new treaties or other
international agreements may be formulated or existing
ones considered, the Treaty Branch will be called upon
for background material and advice, and for assistance in
the preparation of instructions to representatives of this
Government. Wherever necessary, technical assistance
from the Treaty Branch will be provided at such confer-
ences.
B No text of any treaty or other international agree-
ment formulated at an international conference or meet-
ing shall be agreed upon as acceptable to the United States
until such text shall have been reviewed by the appropriate
offices, which shall, in all instances, include Le and the
Treaty Branch.
III Signing. The signing of treaties and other inter-
national agreements or acts is a technical matter on which
the Treaty Branch will be consulted in every instance in
which tlie United States is to be a party or is to serve as
depositary. Requests for the preparation of full powers
or other authorizations for persons to sign such instru-
ments for the United States will be made to the Treaty
Branch. Full powers and other authorizations for for-
1018
DEPARTMENT OF STATE BULLETIN
eign plenipotentiaries to sign under the auspices of tbis
GoveruQient sucli instruments and any questions resjiecting
such documents will be referred to the Treaty Branch for
consideration. Likewise, the Treaty Branch will be con-
sulted before any commitments are made as to who will
sign an international instrument. If the instrument is to
be signed by someone other than the Secretary or Under
Secretary or an ambassador or minister, there may be a
question regarding the appropriateness of signature which
should be resolved by the appropriate offices in the Depart-
ment, which shall in all instances include Le and the
Treaty Branch. The Treaty Branch will be requested to
make all arrangements for the signing of treaties or other
international agreements by the Secretary or the Under
Secretary, or by any other person authorized to sign for
this Government, as well as arrangements for foreign
plenipotentiaries to sign.
IV Tkansmission to Senate. Requests for the prep-
aration of reports by the Secretary of State to the Presi-
dent and for messages by the President for the
transmission of treaties to the Senate for its advice and
consent to ratification will be directed to the Treaty
Branch. Such requests will be accompanied by any
background information and .suggestions which the office
concerned may consider helpful in explaining the purposes
and provisions of the treaties involved.
V Status of Existing Agreement.s. Inquiries with
re.spect to the existence, status, and application of inter-
national agreements, including agreements to which this
Government is not a party as well as those to which it is
a party, will be made of the Treaty Branch which com-
piles and maintains authoritative analytical and docu-
mentary records on such instruments. To insure that
these records are at all times complete and up-to-date, it
is of the utmost importance that all relevant papers be
referred to the Treaty Branch. The Treaty Branch will
initiate any inquiries that should be made of other gov-
ernments or international organizations, as the case may
be, in the event that the records of the Department are
not clear or complete with re.spect to a particular inter-
national agreement.
VI Ratifications. Adherence, and so forth. Re-
quests for the preparation of, and advice and assistance
respecting instruments of ratification, instruments of ad-
herence, and notifications of acceptance or approval of
treaties or other international agreements will be made
to the Treaty Branch.
VII Exchange or Deposit of Ratifications, and so
forth.
A Arrangements for the exchange or deposit of in-
struments of ratification, the dejiosit of instruments of
adherencBj and the receipt of notifications of acceptance
or approval of treaties and other international agree-
ments will be handled by the Treaty Branch. Instruc-
tions to American diplomatic missions abroad and
communications to foreign diplomatic missions in Wash-
ington respecting such matters will be prepared in the
Treaty Branch.
B Inquiries from representatives of foreign diplo-
' Bui.i-KTiN of Mar. .3, 1946, p. 348.
matic missions in Wa.shington and from American diplo-
matic missions abroad with respect to the preparation or
deposit of such instruments relating to any multilateral
agreement of which the United States is depositary will
be referred to the Treaty Branch. The Treaty Branch
will be notified immediately of the receipt of any such
document anywhere in the Department, inasmuch as a
depositary is required to ascertain whether those docu-
ments are properly executed before accepting them for
deposit, and is required to keep accurate records on and
inform other governments concerned of the order and
date of receipt of such documents.
VIII Proclamations. Policy officers will contact the
Treaty Branch with respect to proclamations of treaties
and other international agreements. Proclamations pre-
pared l)y other offices with respect to the application of
an existing treaty or other international agreement will
be referred to the Treaty Branch for consideration
before being transmitted to the President for signature.
IX Agreements Negotiated by Other Agencies.
A Officers re.sponsible for lijti.son with other agencies
of this Government will consult with the Treaty Branch
regarding procedures to be followed with respect to the
drafting and approving of international agreements nego-
tiated by such other agencies and regarding the custody of
the originals of those agreements. While other agencies
primarily interested in particular agreements may often
conduct initial negotiations and preliminary drafting, the
Department has the over-all responsibility for foreign
relations. The final tests of all international agreements
must therefore conform to approved and established De-
partment procedure. Originals of such international
agreements and extensions, modifications, and amend-
ments thereto will be retained in the permanent files of the
Department of State. In the event that the liaison officer
concerned is unable to arrange for the Department to have
custody of the signed original of a ijarticular agreement
which commits the United States, either on a Government
level or through any agency of the Government, that officer
shall be held responsible for insuring that the Department
has at least a certified copy of any such agreement.
B In all other respects, the general principles out-
lined in paragraphs I through VIII above will be observed.
240.1 Responsibilities Under the International Organ-
izations Immunities Act:' (Effective 2-21—46). The
International Organizations Immunities Act, enacted De-
cember 29, 1945 (Public I-aw 291, 79th Congress) provides
that certain privileges, exemptions, and immunities shall
lie extended to such public international organizations and
to their officers and employees as shall have been desig-
nated by the President through appropriate Executive
( )rdpr as being entitled thereto. By Executive Order 9698
of February 19, 1946, the President designated the follow-
ing organizations as being entitled to the privileges pro-
vided in the Act of December 29, 104.5 :
Food and Agriculture Organization
International Labor Organization
Pan-American Union
United Nations
United Nations Relief and Rehabilitation Administra-
tion
]U!\E 9, 1946
1019
The Executive Order designated the Department of State
as the agency to receive applications and authorized the
Secretary of State to require such information as he may
deem necessary from those international organizations
which apply to receive the privileges conferred by the
Act, and to prepare recommendations to the President as
to whether the applicant organizations should be desig-
nated by Executive Order as public international organiza-
tions entitled to enjoy the privileges, exemptions, and
immunities conferred by the Act.
I Responsibilities or the Diwsion of Protocol (PR),
Office of Departmental Administration (ODA). The Di-
vision is given responsibilities for the performance of the
Department of State under the International Organiza-
tions Immunities Act, as follows :
A Receiving, in belialt of the Secretary, applications
of organizations desiring privileges, exemptions, and im-
munities provided in the Act.
B Reviewing in the first instance, such applications
to a.ssure that tliey satisfy the announced requirements
for consideration by the Department.
C Maintaining a complete record of organizations and
individuals accorded privileges, exemptions, and immuni-
ties provided in the Act.
D Serving as the center of information and services
for the administration of the Act, and acting as liai-son
with other Government agencies concerned with the execu-
tion of the Act.
II Responsibilities of the Division of Interna-
tional Organization Affairs (OA), Office of Special
Political Affairs (SPA).
A The Division is given responsibilities for the per-
formance of the Department of State under the Interna-
tional Organizations Immunities Act, as follows :
1 Reviewing applications which PR has founil to
.satisfy the announced requirements for consideration
in order to determine eligibility of organizations for
benefits envisaged by the Act.
2 Drafting the necessary Executive Orders, and
submitting recommendations to tlie Secretary for his
approval and transmittal to the President.
B In the performance of the foregoing responsibili-
ties, OA will consult when appropriate, with PR, the
Office of the Legal Adviser (Le), the Division of Inter-
national Conferences (IC), the Visa Division (VD), the
geographic Divisions, and other Divisions whose responsi-
bilities or interests are directly concerned with the ap-
plicant organizations.
121.10 Division of Protocol. (PR): (Effective 2-21-46).
I Functions. PR is given responsibility for the per-
formance, in behalf of the Secretary, and in collabora-
tion with the Division of International Organization
Affairs (OA), of the Department's responsibilities under
the International Organizations Immunities Act. (See
DR 240.1 for a statement of the general provisions of the
Act and PR's responsibilities thereunder. )
115.11 Division of International Organization Af-
fairs (OA) : (E^ffective 2-21-46).
I Functions. OA is given responsibility for the per-
formance, in behalf of the Secretary, and in collaboration
with the Division of Protocol (PR), of the Department's
responsibilities under the International Organizations
Immunities Act. (See DR 240.1 for a statement of the
general provisions of the Act and OA's responsiliilities
thereunder. )
The Congress
Joint Resolution To Authorize the Use of Naval Vessels
To DeteiTiiine the Effect of Atomic Weapons upon Such
Vessels : Hearing Before the Committee on Naval Affairs,
United States Senate Seventy-ninth Congress, second ses-
sion, on H.J. Res. 307, a joint resolution to autliorize the use
of naval ves.sels to determine the effect of atomic weapons
upon such vessels. Part 2, April 18, 1&46. ill, 24 pij.
Atomic Energy Act of 1946: Hearings Before the Spe-
cial Committee on Atomic Energy, United States Senate,
Seventy-ninth Congress, second session, on S. 1717, a bill
for the development and control of atomic energy. Part 5,
April 4 and 8, 1946. iii, 43 pp.
Authorizing ApiX)intment of Additional Foreign-Service
Officers in the Classified Grades. H. Rept. 1590, 79th
Cong., To accompany H.R. 5244. 3 pp. [Favorable re-
port.]
Second Deficiency Appropriation Bill, 19^6. H. Rept.
1977, 79th Cong., To accompany H.R. 5890. 6 ijp. [De-
partment of State, p. 5.]
Facilitating the Admission into tlie United States of the
Alien Fiancees or Fiances of Members of the Armed Forces
of the United States. H. Rept. 21 OS, 79th Cong., To accom-
pany H.R. 6279. 4 pp. [Favorable report.]
Sixth Report to Oingress on Operations of UNRRA.
Message From the President of the United States Trans-
mitting the Sixth Report to Congress on UNRRA Opera-
tions for the Quarter Ending December 31, 1945. H. Doc.
533, 79th Cong, m pp.
Supplemental Estimate of Appropriation t'op United
Nations Relief and Rehabilitation Administration. Com-
munication from the President of the United States trans-
mitting supplemental estimate of appropriation for the
fiscal year 1946 in the amount of $600,000,000 for the
United Nations Relief and Rehabilitation Administration.
H. Doc. 543, 79th Cong. 2 pp.
Draft of Propo.sed Provision Pertaining to Existing Ap-
propriations, Together With Supplemental Estimate of
Appropriations for the Department of State. Communi-
cation from the President of tlie United States transmit-
ting draft of proposed provision pertaining to existing ap-
proiiriations, togetlier with supplemental estimate of
appropriations for the fiscal year 1946 in tlie amount of
$37,261.42, for the Department of State. H.Doc. 591, 79th
Cong. 2 pp.
Reorganization Plan No. 1 of 1946. Message from the
President of the United States transmitting Reorganiza-
tion Plan No. 1 of 1946, prepared in accordance with the
provisions of the Reorganization Act of 1945. H.Doc. 594,
70th Cong. 13 pp. [Department of State, pp. 1, 7-8.]
1020
DEPARTMENT OF STATE BULLETIN
Training Announcements
Wednesday 11 o'clock Orientation Series
Prof. Frederick L. Scluiman of Williams College, a
widely known author in the field of foreign affairs,
will speak on "United States - Soviet Relations and
World Affairs" at 11 a.m., Wednesday, June 19.
Departmental Orientation Series
Gen. John H. Hilldring, Assistant Secretary of State
for occupied areas, will speak at 10 a.m., Wednes-
day, June 26, instead of on the previously an-
nounced date of June 17. General Hilldring will
discu.ss "American Policies in Occupied Areas."
Mr. Willard L. Thorp. Deputy to Assistant Secretary
for economic affairs, will outline the "Economic
Objectives of American Foreign Policy" at 10 a. m.
and 11 a. m. on Tuesday, June 18.
Economic Pi'oblems of Occupation in Japan will be
explained by Mr. Roswell H. Whitman, Assistant
Chief, Division of Japanese and Korean Economic
Affairs, on June 21 at 11 a.m.
Foreign Service Orientation Series
The "I'ulitical Objectives of American Foreign Pol-
icy" will be outlined on June 20, at 9 a. m., by Mr.
Robert McClintock. Foreign Service Officer and
Special Assistant to the Director, Office of Sijecial
Political Affairs, for Foreign Service per.sonnel in
training. This lecture, as well as the other lec-
tures in the Foreign Service Orientation Series, is
open to personnel of other Government departments
who are assigned to foreign duty upon special ar-
rangement, in advance, with the Registrar of the
Training Division, and to Department of State per-
sonnel interested in tlie subjects covered.
rhe.se lectures will be held in Room 474, main State
Department building.
Contents— Continued
Treaty Information
Agreements on Economic and Financial Problems Reached ^^"^'^
by U. S. and Provisional French Governments. . . . 994
Inter-American Military Cooperation 1001
Statement by the Secretary of State
Chicago Convention on International Civil Aviation. . . . 1004
Statement by Assistant Secretary Clayton
Cultural Cooperation
English Language and Orientation Courses for Foreign
Students and Trainees 1013
Philip K. Hitti to Visit Near East 1011
Publications
Foreign Commerce Weekly 1014
The Congress 1019
Training Announcements 1020
PUBLISHED WITH APPROVAL OP DIRECTOR OF BUREAU OP THE BUDGET
U. S. 60VERNMENT PRtHTING OFFICE: 194S
THE DEPARTMENT OF STATE
VOL. XIV, NO. 363
JUNE 16, 1946
"Random Harvest"
Address by UNDER SECRETARY ACHESON page 1045
Proposals for Ameiidinent of ILO Constitution
Article ))y BERNARD WIESMAN page 1028
German Documents on Relations With Japan . page io38
The Paris Agreement on Reparation From Germany
Article by JOHN B. HOWARD page 1023
Selective Service Processing of American Citizens
Outside the U. S page 1035
VveNT o^
For complete contents
see inside cover
THE DEPARTMENT OF STATE
BULLETIN
Vol. XIV •No. 363*
Publication 2552
June 16, 1946
for gale by the Superintendent of Documents
U. S. Government Printing Office
Washington 25, D. C.
SuBSCmiTloN;
S2 iesues, $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 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
work of the Department of State and
the Foreign Service. The BVLLETIIS
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 towhich the VnitedStates
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
legislatit^e material in the field of inter-
national relations, are listed currently.
JUL 8 i94«
Contents
Economic Affairs Page
The Paris Agreement on Reparation From Germany
Article by John B. Howard 1023
Proposals for Amendment of ILO Constitution
Article by Bernard Wiesman 1028
Election of Bank and Fund Officials lO-l-l
The Proclaimed List • 1052
Signing of Protocol Modifying the Income-Tax Convention
Withthe United Kingdom 1052
General Policy
"Random Harvest"
By Under Secretary Acheson 1045
Rumanian Reply to U.S. Note on General Elections and
Public Liberties 1048
Mission To Observe Revision of Greek Electoral Lists . . . 1050
Letters of Credence:
Ambassador of the U.S.S.R 1050
Ambassador of Haiti 1050
Ambassador of Great Britain 1050
Philippine Independence Day Ceremonies 1051
Occupation Matters
Far Eastern Commission 1042
Policy Statement Regarding Aliens in Japan 1042
German Documents
German Documents on Relations With Japan 1038
The United Nations
Representative on Commission on Narcotic Drugs .... 1052
Treaty Information
The Paris Agreement on Reparation From Germany
Article by John B. Howard 1023
Treaty Obligations and Philijipine Independence:
Exchange of Notes between the U.S. and Bolivian Gov-
ernment 1049
Signing of Military Mission Agreement With Venezuela . . 1050
Transit Use of Azores Airports 1051
Signing of Protocol Modifying the Income-Tax Convention
With the United Kingdom 1052
International Organizations and Conferences
Calendar of Meetings 1042
Activities and Development.s 1042
Cultural Cooperation
Visit of Haitian Economist 1053
Visit of Chinese Scientist 1053
The Department
Resignation of George P. Baker 1054
Appointment of Officers 1054
The Congress 1053
The Foreign Service
Selective Service Processing of American Citizens Outside
the U.S 1035
Confirmations 1053
Consular Offices 1053
Training Announcements 1054
The Paris Agreement on Reparation From Germany
Article by JOHN B. HOWARD
THE EiGiiTEEN-powER Pai'is Conference on Repa-
ration was in session from November 9 to De-
cember 21, 1945. It was convened upon the invi-
tation of the Governments of the United States,
the United Kingdom, and France, as the powers
occupying the three western zones of Germany.
The otlier participating coiaitries were Albania,
Australia, Belgium, Canada, Czechoslovakia, Den-
mark, Egypt, Greece, India, Luxembourg, the
Netherlands, New Zealand, Norway, the Union of
South Africa, and Yugoslavia. James W. Angell,
United States representative on the Allied Com-
mission on Reparation — Germany, was the Dele-
gate of the United States at the Conference. D.
Maynard Phelps, deputy United States repre-
sentative on the Allied Commission was Deputy
Delegate.
The Paris Conference recommended to the par-
ticipating governments the adoption of the Paris
Agreement on Reparation.^ This agreement was
signed on January 14, 1946 by a sufficient number
of governments to bring it into force on that date
and has now been signed by all of the 18 gov-
ernments which participated in the Paris Con-
ference.
The basic program of the United States and its
Allies for the satisfaction of their reparation
claims against defeated Germany is contained in
two complementary agreements — the tripartite
Potsdam x4.greement ^ of August 2, 1945 and the
18-power Paris Agreement on Reparation of Jan-
uary 14, 1946 resulting from the Paris Confer-
ence on Reparation.
At the Potsdam Conference the Govermnents
of the United States, the Union of Soviet So-
cialist Republics, and the United Kingdom agreed
upon the principles of a plan for the exaction of
reparation which formed an integral part of a
coordinated Allied political and economic pol-
icy toward Germany. The AVorld AA'ar I con-
ception of reparation as the maximum obtain-
able financial comi:)ensation in fixed sums of
money for the staggering costs of war to the
Allies was abandoned. The application of this
conception had actually transferred much of the
real -burden of German reparation to the Al-
lies, in the form of repudiated loans. Instead,
the Potsdam Agi-eement established two major
new principles. First, it was agreed that the
primary objective should be the establishment
of military and economic security against renewed
German aggression, not the maximizing of repara-
tion receipts. Second, it was agreed that repai-a-
tion should be paid by Germany in kind, rather
than in cash, the payment in kind to be made out of
such German assets as would, if left under German
control, constitute an economic base for future ag-
gression by Germany but would, if received as
reparation, hasten the economic recovery of the
United Nations. The total amount and dura-
tion of reparation and, to some extent, the char-
acter of the reparation assets to be made avail-
able by Germany were not fixed in advance but
were made dependent upon subsequent determina-
tions to be reached by the Control Council for
Germany with respect to the establishment of the
German economy on a peaceful basis.
Agreement was also reached at Potsdam upon a
plan for the division of German reparation as.sets
between the Union of Soviet Socialist Republics
and Poland, on the one hand, and the United
States, the United Kingdom, and other countries
entitled to reparation, on the other hand. Under
this plan and subsequent decisions the principal
' Special Adviser to James W. Angell, U. S. representa-
tive on the Allied Commission on Reparations for Germany
and U. S. Delegate to the Paris Conference on Reparation.
Mr. Howard also acted subsequently as alternate to the
V. S. Delegate to the Inter-Allied Reparation Agency.
'For test of the Paris Agreement on Reparation, see
Bulletin of Jan. 27, 1946, p. 114.
= For text of the Potsdam Agreement, see Buluh'in of
Aug. 5, 1945, p. 153.
1023
1024
DEPARTMENT OF STATE BULLETIN
assets out of which the reparation claiins of the
countries in the hitter group are to be satisfied
include :
1. German enemy assets witliin the jurisdiction
of these countries.
2. German external assets within the countries
which remained neutral in the war against
Germany.
3. 75 percent of the industrial capital equip-
ment to be removed from the western zones of
Germany.''
4. Two thirds of the German merchant marine.^
5. The commodities to be delivered by the Union
of Soviet Socialist Republics (referred to liere-
after as Russian reciprocal deliveries) in ex-
change for receipt of 15 jiercent of the industrial
capital equipment to be removed from the western
zones of Germany."
At the Paris Conference on Reparation the gov-
erning principles and the mechanism were estab-
lished for the division of these reparation assets
among the 18 governments which participated in
* Of the 2.5 percent which is to be allocated to the U.S.S.R
and Poland, 10 percent represents reparation to these coun-
tries and 15 percent is to be paid for liy the U.S.S.R. in
food, raw materials, and other products.
" The Potsdam Agreement ijrovided for e(inal distribution
of the .surrendered German merchant marine among the
tJ.S.S.R., United States, and United Kingdom. It pro-
vided furtlier tliat the U.S.S.R. would provide out of its
share for Poland and that the United States and United
Kingdom would provide, from their shares, appropriate
amounts for other Allied countries whose merchant ma-
rines have suffered heavy losses in the war against Ger-
many. The .ships allocated to the United States and United
Kingdom, in accordance with their respective one-third
shares, have been made available by these countries to the
Inter-Allied Reparation Agency, referred to below, for
ilistribution by the Agency among the 18 member gov-
ernments in accordance with the principles of alloca-
tion established in the Paris Agreement.
" Although the Potsdam Agreement does not expressly
so provide, it has been decided that Russian reciprocal de-
liveries should constitute a source of reiiarution to the
countries other than U.S.S.R. and Poland.
'For text of the report on the Crimea (Yalta) Confer-
ence, see Bm,i,ETiN of Feb. 18, 194.5, p. 213.
* Reparation assets were divided into two categories
because of the decision of the United States, discussed
below, not to claim so large a share of industrial equip-
ment as of other forms of reparation assets and because
of the greater administrative convenience of allocating
individual items of reparation in accordance with sepa-
rate shares for these two categories.
the conference. Arrangements are under consider-
ation whereby certain other governments which are
entithnl to receive reparation from Germany and
whicii did not participate in the conference will
.meet tlieir reparation claims from German ex-
ternal assets within their several jurisdictions.
II
Several major results were achieved by the
Paris Conference and by the Paris Agreement:
1. Agreement was readied among the 18 gov-
ernments on their respective shares in all assets
available to these governments collectively as
reparation from Germany.
In the establishment of reparation shares the
Paris Conference was guided by the principle,
agreed upon at the Yalta Conference of February
1945," that reparation ,from Germany should be
received in the first instance by those countries
which have borne the main burden of the war,
have suffered the heaviest losses, and liave organ-
ized victory over the enemy. To insure the at-
tainment of an equital)le distribution of repara-
tion assets in the light of this principle, the
conference examined extensive data submitted by
the participating governments relating to their
reparation claims against (Jermany. Tlie data
covered a number of categories such as war dam-
age, war expenditures, costs of German occupa-
tion, man-years spent in the armed forces and
war jH-oduction, and loss of life. The sum total
of claims for direct damage, war expenditures,
and occupation costs alone amounted to almost
$300 billion, an anioinit obviously tremendously
in excess of the total value of any probable avail-
able German reparation assets.
This statistical data necessarily provided much
of the basis for determining the rehitive sizes of
the reparation shares of tlie several countries.
Nevertheless, it was clear to the delegates to the
conference that no single formula could be de-
vised which would adequately take into account
the statistical non-comparability of the different
categories of lo.sses and the numerous non-statis-
tical factors inherent in tlie Yalta principle for the
equitable division of reparation assets.
The reparation shares agreed upon assign sep-
arate percentage shares to each government in
two different categories of reparation assets.* One
category, designated A, includes all reparation
]UNE 16, 1946
assets" except iiulustrial and other capital equip-
ment removed from Germany and merchant ships
and inhmd water transport. The latter types of
assets comprise the other category, designated B.
These percentage shares for the 18 governments
are as follows :
Table of Shares
Percentage share
Couiitrii Category A Category B
Alliaiiia 0.05 0. 35
United States of America 28. 00 11. 80
Australia 0. 70 0. 95
Belgium 2. 70 4. 50
Canada .3. 50 1. 50
Denmark 0. 25 0. 35
Ks.vpt 0. 05 0. 20
France 16. 00 22. 80
I'nited Kingdom 28. 00 27. 80
Greece . .' 2. 70 4. 35
India 2, 00 2. 90
LiUxeml>ourg 0. 15 0. 40
Norway 1. 30 1. 90
New Zealand 0. 40 0. 60
Netherlands 3. 90 5. 60
Czechoslovakia 3. 00 4. 30
Union of South Africa 0. 70 0. 10
Yugoslavia . 6.60 9.60
100. 00 100. 00
The reparation receipts to which the United
States is entitled, as a consequence of its jjercent-
age shares as shown above and of the special pro-
visions of the Paris Agreement applying to
German external assets and- to receipts of German
merchant ships, may be summarized as follows : ^^
(a) All German external assets within the ju-
risdiction of the United States, estimated at some
$200 million ;
(&) 28 percent of German external assets in
neutral countries;
(c) A share of German merchant shipping pro-
portionate to the relative tonnage losses of the
United States ; "
{(l) 11.8 percent of industrial and other capital
equipment removed from the western zones of
Germany and made available to the governments
participating in the Paris Conference ; and
{e) 28 percent of the value of all other German
assets made available for reparation to these gov-
ernments, including such assets as Eussian recip-
rocal deliveries.
At the Paris Conference the United States did
not claim so large a percentage share of industrial
equipment as of other types of reparation assets.
This decision was based on the fact that the early
receipt of such equipment is especially impoi'tant
to the war-devastated countries of Em-ope,
whereas the United States, as a capital exjjorting
102^
nation, has only a limited intei'est in such equip-
ment. The share of the United States is large
enough to cover equipment which may be removed
from Germany as reparation in which there are
l^rivate American pre-war financial interests of a
substantial character,^- and also to make possible
the receipt of a relatively small volume of special
items likely to be desired by the United States and
its nationals. Canada and the Union of South
Africa likewise decided at the Paris Conference
not to claim so large a share of industrial equip-
ment as of other types of reparation assets. It is
quite likely, in view of the restricted class of Ger-
man industrial equipment and of German mer-
chant ships which the United States will wish
to receive as reparation, that the United States
will not submit requests to IAEA to the full extent
of its share of these items.
"The Potsdam Agreement does not determine wliether
current production and labor shall be regarded a.s sources
of reparation. The agreement does provide, however,
tliat the proceeds of exports from current production
and stocks shall be available in the first place for pay-
ment for imports. The reparation shares assigned at
the Paris Conference have been adjusted in recognition
of the benefits accruing from past use and the then an-
ticipated future use b.v the participating governments of
German ijrisoner-of-war labor.
" In order that countries, such as the United States and
Canada, which decided not to claim so large a share of
industrial equipment as of other forms of reparation as-
sets, should not be penalized in their receipt of other assets
as the result of these decisions, section G of article 1 of
part I of the Paris Agreement was adopted. Under this
section such a country, in accounting for receipts of mer-
chant ships and of German external assets within its
jurisdiction, is entitled to regard its Category B percentage
share of ships as equal to its larger Category A percentage
share and to charge off excess external assets (as provided
in section E of the same article) against the additional
share to which the country would have been entitled if its
share in Category B were equal to its Category A per-
centage share. The statements in paragraplis a and c in
the text are based on the United States percentage of
losses of ships and on a reasonable assumption regard-
ing the minimum total value of industrial equipment
removals envisaged by the Potsdam Agreement. Para-
graph 6 results from section C of article 1, part I, of
the Paris Agreement.
" The Paris Agreement provides that the German mer-
chant ships available as rejjaration to the signatory gov-
ernments shall be distributed among them in proportion
to the respective over-all losses of merchant shipping, on
a gross-tonnage basis, of the signatory governments and
their nationals through acts of war.
'- See the allocation principle discussed below, which
gives priority to a claimant country having a substantial
interest in industrial eqtiiiunent removed from Germany.
1026
DEPARTMENT OF STATE BULLETIN
In order to insure an equitable distribution of
individual items of industrial equipment among
tbe several governments, within the limits of their
respective reparation shares, and to promote the
effective use of industrial equipment for recon-
struction purposes, the Paris Conference adopted
certain general principles to govern the allocation
of industrial equipment as reparation. One is that
no government shall request allocation to it of
industrial equipment except for use in its own
territory or for use by its own nationals outside its
own territory. A second principle adopted is that
items of industrial equipment in which a country
has a substantial pre-war financial interest shall
be allocated to that country if it so desires."
Under these principles, a property may not be
requested merely for resale to another country;
and if a property is removed from Germany in
which a substantial American interest existed,
that property will be allocated to tlie United
States upon its request, regardless of competing
claimants, and may be relocated in western Eu-
rope or elsewhere under American ownership.
The allocation of an item of industrial equipment
between two or more countries having substantial
interests in the item, or between claimant coun-
tries none of which has such an interest, is to be
guided by certain general criteria such as the
urgency of need for economic rehabilitation, the
extent of loss of similar property, the relation
of the item to the claimant country's pre-war econ-
omy and post-war development, requirements of
countries with small shares for specific items, and
the maintenance of a reasonable balance among
the rates at which the reparation shares of the sev-
eral claimant governments are satisfied.
It is worth noting that although the reparation
shares assigned by the Paris Agreement are based
in part on a consideration of private losses re-
sulting from war damage to property, as well as of
in part on a consideration of private losses re-
a public or general character, the allocation of
German assets as reparation is made, not to the
individual persons who suffered losses, but to the
several governments involved. The compensation
of private persons who hold claims against Ger-
" The term substantial is not defined by the Paris Agree-
niout, and the definition must he supplied by the Inter-
Allied Reparation Agency, which is responsible for the
allocation of industrial equipment among the .signatory
governments.
many arising out of the war is a matter for the
several Allied governments, to be handled in ac-
cordance with their respective governmental pro-
cedures. It should also be noted that the repara-
tion mechanism is independent of the procedures
which have been agreed upon for the restoration,
by way of restitution, of property which was
looted by Germany and subsequently recovered
and identified.
2. Agreement was reached by the governments
participating in the Paris Conference that their
respective shares of reparations shall be regarded
by each of them as covering all its claims and those
of its nationals against the former German Gov-
ernment and its agencies arising out of the war.
By virtue of this agreement the several govern-
ments undertook not to present reparation claims
against Germany for satisfaction outside the
framework of the reparation program envisaged
under the Potsdam Agreement. This undertaking
was without prejudice to the final determination
of the total amount of reparation and the right
each government may have in the final settlement
of German reparation, which may become the sub-
ject of negotiations at the peace settlement with
Germany.
o. The Paris Agreement also established the
principle that no signatory govermnent shall
assert or support claims against any other signa-
tory government or its nationals in respect of
property received by that government as repara-
tion. Accordingly, where a signatory government
receives property in which other signatory gov-
ernments or their nationals have financial interests,
the latter governments will not support any claims
of their nationals, and will not assert any claims
of their own, against the receiving government or
its nationals. The giving of clear title to repara-
tion assets received, to which this j^rinciple con-
tributes, is desirable in order to help avoid j'ears
of complex litigation over such property iia the
courts of the recipient coinitries involving the
nationals of other countries. Sucli litigation would
engender friction, and tlie possible later assertion
of claims against property removed might impede
the reparatit)!! plant-removal program.
4. The charter was written for an Inter- Allied
Reparation Agency which would allocate specific
items of German reparation among the member
govermnents. All of the 18 governments which
participated in tlie Paris Conference have since
become members of the Agency, which has been in
JUNE 16, 1946
operation several months with headquarters at
Brussels."
5. Agreement \^as reached on a series of provi-
sions implementing the United Nations effort to
remove all German foreign assets from German
control. Each government shall hold or dispose of
German enemy assets within its jurisdiction in
manners designed to achieve this end. In addi-
tion, each government undertook to charge the net
proceeds of liquidation of all German enemy
assets within its jurisdiction against its i-eparation
account and to provide the Inter-Allied Repara-
tion Agency with all information for which it asks
as to the value of such assets and the amounts
realized from their liquidation.
It was further agreed that German assets in the
neutral countries shall be liquidated or disposed of
in accordance with the authority of the United
States, the United Kingdom, and France, pursuant
to arrangements to be negotiated with these coun-
tries. The net proceeds of such liquidation or
disposition shall be made available to the Inter-
Allied Reparation Agency for distribution among
the member govermnents on reparation account.
Switzerland, the first neutral country to reach
agreement on this subject with the United States,
France, and the United Kingdom, has recently
undertaken to make available 50 percent of the
proceeds from German assets within Switzerland.'^
Similar negotiations are being or will be held with
other neutral countries.
6. A share of German reparation was allocated
to the large number of non-repatriable victims of
German persecution, who are not in a position to
turn to an Allied government for present help
through the reparation mechanism.
The group of non-repatriable persons for whom
this aid is intended, estimated to number hundreds
of thousands, is made up, in part, of German and
Austrian refugees and, in part, of nationals of
countries formerly occupied by the Germans who
were victims of Nazi concentration camps. All of
this group have suffered severely from German
action, and many have lost not only all their
property but also their families, friends, and con-
nections in the wholesale massacres carried out by
the Nazis.
The share of reparation set aside to aid this
"An article in a following issue of the Bulletin will
describe the Agency and its role in the Allied reparation
program.
' ■ Bulletin of June 2. 194G. p. 955.
1027
group of persons consists of all the non-monetary
gold found by the Allied armed forces in Europe —
in particular the boxes of SS loot collected from
Nazi crematories and composed primarily of
tooth-fillings, rings, and other items removed by
tlie Nazis from their victims — a sum of $25 mil-
lion to be met out of the proceeds of German
assets in neutral countries, and also assets in neu-
tral countries of victims of Nazi action who have
since died and left no heirs. Representatives of
the Governments of the United States, France, the
United Kingdom, Czechoslovakia, and Yugo-
slavia are presently meeting in Paris to work out,
as provided in the Paris Agreement, a general plan
for the use of the fund thus to be made available.
The fund is to be used to further the rehabilitation
and resettlement of eligible persons and does not
prejudice their claims against a future German
Government for compensation or other benefits.
7. Agreement was reached upon a method for
the restitution of the monetary gold looted by or
wrongfully removed to Germany and subsequently
recovered by the United Nations. The bulk of the
gold recovered was captured by United States
armed forces in Germany. The gold recovered is
being restored to the countries from which it was
looted or removed, in recognition of their right to
restitution under the principles of the Allied
Declaration on Axis Acts of Dispossession of
January 5, 1943, and the United Nations Gold
Declaration of February 22, 1944. These declara-
tions— particularly the Gold Declaration — warned
the neutral countries that Germany was looting
property in the occupied areas and that she had
exhausted the legitimate gold reserve with which
she had entered the war, with the result that gold
offered to the neutrals after these declarations
must, of necessity, have been looted. Under this
assumption, gold found in Germany by the Allied
forces must likewise have been looted.
The so-called "gold pot" principle of restitu-
tion was adopted, under which all monetary gold
found in Germany by the Allied forces, or re-
covered from a third country to which it was trans-
ferred by Germany, is to be pooled for distribution
as restitution among the countries participating
in the pool in proportion to their respective losses
of gold through looting or by M'rongful removal
to Germany. The monetary gold thus accruing
to a country will be accepted in full satisfaction
of all its claims against Germany for restitution
(Continued on paye lOo.i)
1028
DEPARTMENT OF STATE BULLETIN
Proposals for Amendment of ILO Constitution
Article by BERNARD WIESMAN
Ar A TIME when new public international
agencies are beginning their activities or are
being established, especial interest attaches to the
l^roiDosed revision of the constitution of the Inter-
national Labor Organization which was originally
adopted in 1919 as part XIII of the Treaty of
Versailles. For the past two years a continuing
discussion of possible alterations has been carried
on at meetings of the Governing Body and its
Committee on Constitutional Questions and at the
International Labor Conferences of Philadelphia
in 1941 and Paris in 1915. At the latter meeting
it was voted to place the approximately one hun-
dred such suggestions in the hands of a small
"Working Party" for the purpose of achieving
specific reconmiendations for the consideration of
member governments and subsequent submission
to the 1916 International Labor Conference which
will convene at Montreal on September 19.
In keeping with the tripartite character of the
Conference, the government, employers' and
workers' delegates respectively selected repre-
sentatives to serve on the Working Party, with
the understanding that they would seek to reach
agreement on a practicable constitution acceptable
to the three groups. Six governments were named
to i^articipate, each to name its representative, and
three employer and three worker representatives
were elected. The Working Party convened on
January 21 in the offices of the Ministry of Labor
and National Service, St. James Square, London,
and adjourned on February 15. The following
individuals composed the group, with the Chair-
man of the Governing Body of the ILO, Mr. G.
Myrddin Evans, presiding:
Government Representatives :
United States of America; Miss Frieda Miller,
Chief of the Women's Bureau, Department of
Labor.
Mr. Wlesman Is Chief of the International Labor Or-
ganiiiations Branch, Division of International Lalior,
Social and Health Affairs, Department of State.
Adviser: Bernard Wiesman, Chief, Interna-
tional Labor Organizations Branch, Depart-
ment of State.
China: Pao Hua-Kuo, Member of the Planning
Commission, Ministry of Social Affairs.
Adviser: Djang Tien Kai, Chief of the Bureau
of Factory and Mining Inspection, Ministry
of Social Affairs.
Cuba: Orlando Aranalde, Chief of Statistics Sec-
tion, Secretary of National Minimum Wage
Committee.
France: Henry Hauck, Director of Labor Rela-
tions and Social Questions in the Ministry of
Labor and Social Security.
Adviser : Jean Morellet, Member of the Council
of State.
United Kingdom of Great Britain and Northern
Ireland: G. Myrddin Evans, C.B., Deputy
Secretary, Ministry of Labor and National
Service, Chairman of the Governing Body of
the ILO.
Adviser: H. M. Phillips, Assistant Secretary,
Ministry of Labor.
Union of /South Africa: A. D. Lee, Workmen's
Compensation Commissioner, Department of
Labor.
Employers' Representatives :
F. Yllanes Ramos, Member of the Executive Com-
mittee of the Confederation of Chambers of
Industry, Mexico.
P. Waline, General Secretary of the Federation of
Metal and Mining Industries, France.
Sir John Forbes-Watson, Director of the British
Employers' Confederation.
Substitutes: D. S. Eridkar, Chairman of the In-
dian Chamber of Commerce in Great Britain.
Jules Lecocq, Secretary-General, International
Organization of Industrial Employers.
Workers' Representati\'es :
Joseph Hallsworth, General Secretary of the Na-
tional LT^nion of Distributive and Allied
Workers, United Kingdom.
JUNE 16, 1946
1029
Leon Jouhaux, General Secretary of the General
Confederation of Labor, France.
Eobert J. Watt, International Representative,
American Federation of Labor.
Substitute: Gunnar Andersson, President of the
Swedish Confederation of Trade Unions.
For the discussions on the sections dealing with
the representation and the seat of the organiza-
tion, the Belgian Government participated
through Mr. Fernand Dehonsse and the Swiss
Government through Prof. William Rappard and
Ml-. Max Kaufmann. The International Labor
Office Mas represented by the Assistant Director,
Mr. Lindsay Rogers, and the Legal Adviser, Mr.
C. Wilfred Jenks, whose skill in draftsmanship
I^roved of particular value in expediting the work
of the delegation.
The proposed revision and accompanying re-
port were agreed to by all members of the delega-
tion on February 15 except that the French Gov-
ernment representative dissented on the section
concerning representation and that both Mr.
Jouliaux and Mr. Andersson were unable to be
present on the closing days of the session. It
was understood, of course, that individual govern-
ments Avere not bound by the actions of their rep-
resentatives and that, in the event that the draft
should prove generally unacceptable to the con-
ference, individual meimbers would be free to
withdraw their assent to particular proposals or
to resubmit i^roposals which were yielded in the
W^orking Party's discussion.
Before analyzing the recommendations of the
Working Party reference should be made to the
action of the Twenty-seventh Session of the In-
ternational Labor Conference at Paris in adopting
three amendments foi' submission to member gov-
ernments to assure continuance and autonomy of
the organization upon the dissolution of the
League of Nations, with which cei-tain structural
ties were established in the treaty of 191!). The
first of these changes provided that amendments
to the constitution could henceforth be adopted by
two-thirds majority vote of the conference and
acceptance or ratification by two thirds of the
members of the organization including five of the
eight states members of chief industrial impor-
tance. This provision also required ratification
by each member of the Council of the League of
Nations and by three foui'ths of the ILO mem-
bers, a requirement which involvetl a delaj' of
several years in the adoption of the onlj' amend-
ment of the inter- war period.
The second proposal of the conference was that
the International Labor Organization should be
authorized to make appropriate financial and
budgetary arrangements with the United Nations
and that, until or except when such arrangements
are in effect, the conference by two-thirds vote
might arrange for approval, allocation, and col-
lection of the budget with expense allocation
among members to be determined by a committee
of government representatives. This amendment
would also introduce a general rale that members
in arrears for an amount of contributions due for
the preceding two full years should have no vote.
The third major amendment eliminates the
present arrangement whereby membership in the
League of Nations carried with it membership
in the ILO and provides that any member of the
United Nations may become a member of the ILO
upon communicating to the Director its formal ac-
ceptance of the obligations contained in the ILO
constitution. Other states may be admitted by
a vote of two thirds of the delegates including two
thirds of the government delegates present and
voting.
These amendments have been transmitted to the
House of Representatives and the Senate of the
United States for acceptance since it was on the
basis of Public Resolution 43 of 193-1 that the Pres-
ident was authorized to accept membership.
Relations With United Nations
In addition to the jiroposed amendments as to
financing and as to the right of membership in the
ILO on the part of members of the United Nations,
a resolution was adopted at Paris expressing the
desire of the ILO to enter into relations with the
United Nations on mutually acceptable terms and
authorizing the Governing Body to enter into such
necessary or desirable agreements with the appro-
priate authorities for this purpose, subject to the
approval of the conference. The Working Party,
noting that a pledge of cooperation is already con-
tained in the Declaration of Philadelphia, agreed
that an additional explicit declaration should be
proposed for inclusion within the constitution
stating that "the International Labor Organiza-
tion shall cooperate within the terms of this Con-
stitution with any general international organiza-
tion entrusted with the coordination of the activi-
ties of public international organizations having
1030
DEPARTMENT OF STATE BULLETIN
specialized responsibilities and with piiblic inter-
national organizations having specialized resjion-
sibilities in related fields." In the accompanying
report it is made clear that the tei'm piihlic inter-
national organisations refers to intergovernmental
agencies and has been so nsed in several interna-
tional instruments of this sort.
In addition, amendments have been propo.sed to
authorize arrangements for the non-voting partici-
pation in ILO deliberations by representatives of
public international organizations, in accordance
with the general jjattern for such collaboration
contained in the report of the Preparatory Com-
mission of the United Nations. The Governing
Body would be required to consider any sugges-
tions for the agenda item of the conference which
may be made by any public international agency
under a proposed insertion in the text of article 14.
Pending actual negotiations with the United
Nations, the Working Party concluded that the
present and proposed provisions would be suffi-
ciently broad and flexible to meet the probable
constitutional requirements for entering into the
desired relation with the United Nations.^
Effectiveness of Code
The central unique character of the ILO is found
in the formulation through its tripartite Inter-
national Labor Conference of international stand-
ards which member governments are bound to
submit for possible ratification or legislative im-
plementation. Toward that objective the major
work of the organization is directed, with expert
committees and the highly skilled research and ad-
visory staff of the office both prepai-ing the \\ay
for and following up after the discussions and
decisions of the representatives of member gov-
ernments, employers, and workers. These stand-
ards are embodied in conventions or recommen-
dations which became major influences upon the
social legislation of member and even non-member
nations during the inter-war period.
' Terms of a draft agrpement between the United Nations
and the International Labor Organization were agreed
upon by the negotiating committee of the ELOnomic and
Social Council of the United Nations and the negotiating
committee of the International Labor Organization at
New York City on May 28 and 29 and were initiated by
the respective chairmen on May 30. Thi.s agreement will
be snbniitted for apiiroval by the Economic and Social
Council and the General Assembly of the I'nited Nations
and by the International Liibor Conference before becom-
ing effective.
Under the existing constitution each member is
obligated to bring each convention and recommen-
dation before the authority or authorities within
whose competence the matter lies for the enactment
of legislation or other action.
The appropriate action involves ratification,
except in the case of federal states which may treat
conventions as recommendations if constitutional
limitations upon legislative authority of the
federal state prevent such ratification. During
the United States period of membership, the
President has submitted only eight ILO conven-
tions to the Senate for advice and consent to
ratification, five of which concerning maritime
labor were ratified. If the competent authority
fails to ratify, there is no further obligation under
the present constitution. Similarly, no obligation
except that of submission now exists with respect
to recommendations. When a convention has been
ratified, formal notification must be made, and
any necessary legislative implementation pro-
vided. Periodic reports as to the aj^plication of
ratified conventions are required.
More than 900 ratifications of the 67 conven-
tions have been registered bj' the approximately
50 members during the inter-war period, despite
the extreme economic difficulties during the latter
half of the period and the tenseness of the political
atmosphere preceding the outbreak of war in 1939.
The influence of these conventions iipon social
legislation in member countries is probably re-
flected in but scanty fashion by the actual count
of ratifications, but the high value and pervasive
influence of the international labor code thus
created have been beclouded by the failure of some
members to ratify or adequately to implement
their formal acceptance.
The Working Party accepted the thesis pro-
pounded by the British employers' representative
that the moral obligation with respect to conven-
tions must be fully reenforced without impair-
ment of sovereign authority and that the major
test of effectiveness must be sought in tlte extent of
application even more than in the number of
ratifications.
Although Mr. Jouhaux and some other members
of the Working Party asserted that the world
must move toward an international authority in
economic as well as political fields, it was agreed
unanimously that previous proposals for seeking
to make conventions mandatory upon members
would be entirely imi^racticable at this time.
JUNE 16. 1946
1031
Hence the AVorking I'arty sought a formula to
increase government responsibility vmder both
conventions and recommendations without en-
croachment upon the legislative sovereignty of
member nations.
These clianges include one to remove the am-
biguity inherent in the existing term "draft con-
vention" which has led to a conception in some
circles that submission for ratification was op-
tional. Since the position was taken that a con-
vention adopted by the International Labor Con-
ference but not yet ratified is the equivalent of a
diplomatic convention signed but not yet ratified
rather than of an unsigned and unratified instru-
ment, the "Working Party agreed that the word
"draft" should be deleted.
Significant new obligations would be imposed
upon members under the following four amend-
ments designed to emphasize and implement the
quasi-legislative character of the conference and
yet not to limit in any way the freedom of decision
by member nations. Thus it is proposed first that
members shall report on the measures taken to
submit conventions and recommendations to the
competent authority or authorities and give par-
ticulars as to the agencies regarded as competent
and as to the action taken by them.
Secondly, it is proposed to amend the present
provision that if a convention is not ratified by
the competent authority, "no further obligation
shall rest upon the Member". The amendment
would add "except that it shall report to the Di-
rector of the International Labor Office, at appro-
priate intervals as requested by the Governing
Body, the position of its law and practice in regard
to the matters dealt with in the Convention and
showing the extent to which effect has been given
or is proposed to be given to any of the provisions
of the Convention by legislation, administrative
action, collective agreement or otherwise and stat-
ing the difficulties which prevent or delay the rati-
fication of such Convention."
The third change would provide, in the case of
reconmiendations upon which no i-eports are now
constitutionallj' required, a similar obligation to
report upon request "the position of the law and
practice in their country in regard to the matters
dealt with in the Recommendation and showing
the extent to which effect has been given or is pro-
posed to be given to the provisions of the Recom-
mendation and such modifications of these provi-
sions as have been found or may be found necessary
to make in adopting or applying them."
It is then proposed that each member be obli-
gated to communicate copies of such information
and reports to its country's most representative
organizations of employers and workers, which
constitutionally must respectively be consulted for
the selection of delegates from each of the two
groups.
Two other closely associated changes are pro-
posed. To clarify the appropriate use of recom-
mendations, a test is proposed to describe them as
designed "to meet circumstances where the sub-
ject, or aspect of it, dealt with is not considered
suitable or appropriate at that time for a Conven-
tion." The existing clause that the adoption of
a convention or recommendation shall not serve to
lessen the protection of existing law to workers
concerned would be strengthened under a proposed
clarifying amendment.
CoiXECTivE Agreements Recognized
The proposed requirements for reporting con-
stitute the major change in the ILO constitution
recommended by the Working Party. It was felt
by the group that the completeness of the report-
ing program would not only give impetus to the
ratification of conventions and recommendations
but would also afford a realistic yardstick of the
effectiveness of the ILO in stimulating interna-
tional improvement of working conditions. The
proposed changes, if adopted, would focus the at-
tention of national organizations as well as their
counterparts in other countries upon the real
standards of working conditions as distinguished
fi'om statutory minima.
The proposals are especially significant in that
they represent a recognition, it is believed for the
first time on an intei'governmental basis, of the
effectiveness of collective-bargaining agi'eements
as a substitute for or supplement to governmental
action in improving conditions of employment.
Although the ILO is the only major public inter-
national agency in which employers and workers
together have the authority and responsibility of
voting on a par with governments, the focus of
its efforts to improve conditions has been through
the governmental implementation of international
mininuun standards. Like any minimum-wage
legislation, the level has been below that generally
in practice in industrialized countries, at least
for the members of the labor unions from which
1032
DEPARTMENT OF STATE BULLETIN
the delegates and advisers are chosen. Within
the United States where exceptional effort to se-
cure Federal action would be necessary on matters
at least traditionally regarded as witliin the com-
petence of State rather than of the Federal Gov-
ernment, labor unions liave lacked any real incen-
tive to seek ratification of conventions which set
forth standards below those established through
collective agreement. Furthermore, many trade
unionists here believe that collective agreements
rather than legislation pi-dvide the proper medium
for improvement of working conditions. In in-
troducing the concept of collective agreements as
one of the measurements of national progress
toward social goals, the ILO thus makes a limited
but significant step towards official recognition of
employer-union responsibility for social progress
and suggests a tendency away from reliance upon
government intervention.
Recognition of existing liigh standards based
on legislation or administrative action is also im-
plicit in the proposed procedure for reporting on
unratified conventions.
These steps are not proposed as substitutes for
ratification. The Working Party recognized that
conventions constitute a relatively long-range
commitment among ratifying states to maintain
standards and that neither statutory provisions
nor collective agreements can provide the same
assurance to competing nations that established
standards will be maintained for a stated period,
usually of ten years.
The emphasis upon reporting, if adopted, will
impose an administrative burden upon tlie United
States wliere tlie legislation of 48 States plus the
District of Columbia and Territoi-ies would have
to be analyzed for such reports. At the same time,
however, it will provide recognition of the rela-
tively high levels in force here which are ignored
under the present criteria of the number of
ratifications.
Other Questions on Conventions
Proposals to amend the present provisions con-
cerning federal states were held in abeyance
pending a session of the ^Vorking Party at Mon-
treal to which tlie representatives of federal gov-
ernments are to be invited. Since this Govern-
ment was the only federal state among the six
governments represented at London, it was felt
unwise to attempt a decision on the proposal which
would i-equire federal govermnents to transmit to
the states or provinces such conventions as appear
outside the competence of the federal government.
It is proposed to delete present provisions to
authorize commissions of enquiry to indicate
measures of an economic character wliich might
be taken by other members against a defaulting
government. Tlie Governing Body deemed such
references inappropriate in view of the highly
political character of such moves and in view of
the terms of the Charter of the United Nations.
Suggestions for the establishment of interna-
tional inspection agencies appeared inappropri-
ate, but the Working Party agreed that great em-
phasis should be placed upon the development of
competent national inspection services. Sugges-
tions for early consideration of a convention on
the subject are therefore to be placed before the
Governing Body. A model clause for use in fu-
ture conventions requiring use of adequate inspec-
tion services is also proposed. Also the Working
Party proposes that article 10 of the constitution
be amended to authorize the office, subject to Gov-
erning Body directions, to provide technical as-
sistance to member governments, on request, in
the framing of laws and regulations and in the
improvement of systems of administration and
inspection.
Projjosals are also included for referral of ques-
tions concerning the constitution or conventions
to the International Court of Justice and for the
appointment of a tribunal for expeditious deter-
mination of questions affecting the interpretation
of conventions.
Governing Body
New provisions concerning the Governing Body
are designed to recognize the responsibilities and
authority which, in practice, are already lodgeil
in that group and to assure the authority of the
Governing Body in controlling the work of the
office without any undue interference with its
effectiveness. No changes in composition are
reconunended.
Regional Activities
With general agreement existing as to the de-
sirability of strengthening regional activities, such
as that represented in the April 1, 1946 Third Con-
ference of American States Members of the ILO at
Mexico City, it was agreed to include an authori-
zation to the organization "to convene such re-
gional conferences and establish such regional
JUNE 16, 1946
1033
agencies as may be desirable to promote the aims
and purposes of the Organization."
At the same time it \Yas found unwise to suggest
regional conventions since the basic concept of the
ILO is to promote world-wide improvement of
conditions. The possibility of including within
general conventions modifications designed to rec-
ognize regional circumstances having already been
demonstrated, it was felt that regional conferences
could fulfil reliable functions in advising on the
need for and nature of such modifications.
Application to Territories
Clarification of procedure and responsibilities
with respect to the ajjplication of conventions to
dependent territoi-ies is undertaken through a
series of amendments too detailed to permit full
analysis here. Essejitiaily it was aimed to achieve
a maxinuun of ILO service to territories through
the application of conventions by the responsible
metropolitan powers or their own authorities
wherever sufficient autonomy has been achieved.
The Working Party sought to balance the desire
for prompt application with respect for the delays
encountered wherever the metropolitan power has
accepted a substantial degree of autonomy by the
territories and has therefore yielded its authority
to legislate on behalf of such territories. The pro-
posed amendments call for detailed reports as to
the application and implementation of conventions
in each category of territory.
Respect for local autonomy where it exists is
also seen in the proposal to include in article 3 a
provision which, in the language of the report,
woidd authorize "each IMember responsible for the
international relations of non-metropolitan terri-
tories to appoint as additional advisers to each of
its delegates persons nominated by it as represen-
tatives of territories which have already attained
a certain stage of autonomous development and
persons nominated by it to advise its delegation in
regard to matters concerning non-self-governing
territories."
Representation
The only issue upon which unanimity was not
reached was that of representation at international
labor conferences. Tlie considerations which in-
duced the Versailles conferees to agree upon the
existing ratio of two government delegates to one
employer and one worker reiiresentative still
proved valid in the opinion of the majority.
Leon Jouhaux, on whose behalf the discussion was
originally delayed until February 6, was unable to
be present because of duties on a World Federation
of Trade Unions Commission studying conditions
in Germany. His exact position is therefore not
known, but his two associates representing work-
ers did not press for an increase in worker repre-
sentation as proposed in two pending suggestions,
one which had been advanced officially by the
Belgian Government for a 2-2-2' ratio and one by
a group of Latin American workers with Vi-
cente Lombardo Toledano as spokesman for a
2-1-2 ratio. Fernand Dehousse was designated by
the Belgian Government to attend the meeting on
February C at which the proposal was discussed,
in accordance with the invitation of the Confer-
ence, but since he was not a member of the Work-
ing Party the advocacy of the proposal within
the Working Party was performed by Henry
Hauck, who ofRcially presented the French Gov-
ernment's support of the Belgian proposal. Mr.
Hauck argued with great skill and effectiveness,
but the conclusion of the other members was that
the usefulness of the ILO depends upon the equal-
ity of employer and worker representation and
the present degree of government responsibility
for the adoption of decisions which can be imple-
mented effectively at this time only by government
action.
The Belgian proposal would have afforded rep-
resentation for minority as well as "the most
lepresentative" organization of workers and
would have designated one of the two employer
delegates, in the case of countries with mixed
economies, to represent the socialized part of in-
dustry. The Latin American proposal specifically
opposed the rej^resentation of minority groups
and proposed that the second workers' delegate
be named by the most representative organization
of workers to represent those engaged in social-
ized undertakings.
One consequence of the Belgian proposal would
be that the workers' delegation would become rep-
resentatives (1) of the most representative or-
ganization, and (2) of the minority group or
groups, rather than as at present the representa-
tive of all the workers of the country. It was
feared by the group that this would transfer the
lU'oblems of domestic labor disunity within any
country to the international level, with probable
disastrous effect upon the negotiation in connnit-
tees and conferences. The idea advanced by Mr.
1034
Dehousse that each delegate would have his own
group of advisers if agreement on a single slate
were not feasible proved particularly disconcert-
ing to the Working Party, which also saw no
easing of governmental difficulties in selection
if the second delegate must be accredited speciti-
cally as a minority delegate representing not only
the second largest but also any other representa-
tive minorities. It was pointed out that if domes-
tic agreement could not be reached in the selection
of delegates and advisers, it would be unlikely
that agreement would be reached if two rival
groups were participating at the international
level.
As for the Latin American proposal, the work-
ers' delegates insisted that workers in socialized
undertakings have essentially the same interest as
workers in private employment and that any rea-
sonable need for representation of such workers
could be obtained, as it was in the American dele-
gation to the 1945 conference, by the inclusion of
an officer of a state employees' organization
among the advisers to the workers' delegate.
With respect to the Belgian proposal concern-
ing the representation of the managements of
socialized undertakings, it was pointed out that
such an individual would presumably i-eflect gov-
ernment views and might more properly be in-
cluded within the government representation or,
with the concurrence of the most representative
organization of employers, might be included
within the employers' delegation as on at least one
previous occasion. It was also noted that during
the period of U.S.S.R. participation representa-
tives of Soviet industrial management were ac-
cepted as employers' delegates since no other such
representation was possible under the Soviet
economy.
All delegates emphasized the essential neces-
sity of maintaining the tripartite character of the
organization and, except for the French Govern-
ment spokesman, all agreed that the present ratio
is the one under which the financial, legislative,
and the proposed increase in administrative re-
sponsibility of the governments could be properly
reflected. It was also noted that equality of vot-
ing is practiced in the influential committees of
the conference and among the seven newly estab-
lished industrial committees, but that neither of
those agencies possesses the authority inherent in
the conference to draft conventions and reconi-
DEPARTMENT OF STATE BULLETIN
mendations which create certain obligations upon
the national states which compose the Interna-
tional Labor Organization.
Other Important Actions
Existing practice is recognized by a proposal
that the constitution provide for the election of a
chairman and two vice-chairmen of the Governing
Body, each from one of the three component
groups, and a further strengthening provides for
the election of the three vice-chairmen of the con-
ference to reflect the three groups.
A proposal is made similar to that of article 71
of the Charter of the United Nations whereby
"The International Labor Organization may make
suitable arrangements for such consultation as it
may think desirable with recognized non-
governmental international organizations, in-
cluding international organizations of employers,
workers, agriculturists and cooperators."
Similarly, the resources of non-governmental
organizations may be utilized through article 18,
which would permit the conference to appoint to
its committees technical experts without the power
to vote.
Authorization for laublications in such lan-
guages as the body may think desirable would
I'eplace the present more restrictive language
under another proposal.
Another change of more than technical impor-
tance is proposed : a simple majority of votes cast
by delegates present will be sufficient except as
otherwise specified in the constitution "or by the
terms of any Convention or other instiiunent
conferring powers upon the Conference or of the
financial and budgetary arrangements adopted in
virtue of Article 13".
The international character of the responsi-
bilities of the staff would be made entirely clear
and exclusive under other changes.
The Working Party also made a number of
administrative recommendations for considera-
tion of the Governing Body, arising out of the
suggestions before it.
The Declaration of Philadelphia
The objectives stated in the preamble of the
constitution of the ILO and the principles set
forth in article 41 were regarded in 1919 as em-
bodying unrealized objectives; in 1946 they had
(Continued on page 1052)
JUNE 16, 1946
1035
Selective Service Processing of American Citizens
Outside the United States
THE Selective Training and Service Act of
19-1:0, both before and after aniemlments, pro-
vided for the registration, training, and service of
"every male citizen of the United States" within
specified age grouiJS. Section 2 of the act, rehiting
to registration, provided that a citizen liable for
registration under the act should "present himself
for and submit to registration at such time or times
and place or places and in such manner and in such
age group or groups as shall be determined by laws
and regulations prescribed hereunder."
In pursuance of this authority regulations were
issued requiring persons liable for registration un-
der the act to present themselves at such time and
place as might be fixed by presidential proclama-
tion. Thus, while there was a general obligation
for all male citizens within the specified age limits
to register, the specific obligation did not arise in
the case of any individual until called upon by
jjresidential proclamation.
Between September 16, 1940 and November 17,
1942 the President issued a series of six proclama-
tions calling upon citizens in different age groups
to present themselves for registration. In each
case the proclamation excepted citizens residing
outside the "United States" (continental United
States, Alaska, Hawaii, and Puerto Rico) and pro-
vided that such citizens must register within five
clays after their return to this country. By im-
plication citizens who had not been in the "United
States" at a time when tliey were liable for regis-
tration had no obligations under tlie Selective
Service law.
In the early days of Selective Service operations
the armed forces were concentrating on numbers
of inductees to such an extent that little thought
was given to potential registrants living outside
the continental United States, Alaska, Hawaii,
and Puerto Rico. When over 400,000 men a month
were being inducted it did not seem urgent to ex-
pend valuable time and effort on the scattered
American citizens in outlying areas. Accordingly,
no procedures were established prior to October 26,
1943 to bring these citizens within the scope of the
operation of Selective Service.
During the latter part of 1943, when there began
to be a serious shortage of manpower in the United
States, when claims for both occupational and de-
j^endency deferments were being scrutinized care-
fully, and when a large perc&tage of such claims
were being denied, a demand arose for Selective
Service to take some action to impose equal obliga-
tions upon United States citizens who, by reason of
their geographic location, had not previously been
lecjuired to register.
On October 26, 1943 the President, having in
mind the situation as outlined above, issued a proc-
lamation calling for the registration between No-
vember 15, 1943 and January 1, 1944 of all United
States citizens between the ages of 18 and 45 re-
siding outside the United States who had not
previously been registered. In practical effect
only three groups of men were affected by the proc-
lamation : those living in foreign countries ; those
in the Panama Canal Zone ; and those in the Virgin
Islands. In his proclamation the President called
upon all other United States Government agencies
to assist Selective Service as far as possible.
The Department of State, thi'ough the instru-
mentality of its Foreign Service, was the obvious
agency to assist Selective Service with respect to
Americans in foreign countries. The Office of the
Panama Canal was the obvious agency to operate
on behalf of Selective Service in the Canal Zone.
Following the initial registration in the Virgin
Islands, which was accomplished by special regis-
trars, the usual Selective Service machinery was
set up there to operate in essentially the same way
as in continental United States.
In order to enable them to fulfil their role in the
registration, American diplomatic and consular
officers were appointed by the Director of Selec-
This article was prepared in the Division of Foreign
Service Administration, Office of the Foreign Service, De-
partment of State.
1036
tive Service to serve without additional compensa-
tion as chief registrars. In th:it capacity they
were not only enipowered personally to receive
registrations but also to appoint reliable American
citizens as volunteer registrars. American men
and women signed waiver-of-compensation forms
and were sworn in as registrars under such ap-
pointments at hundreds of outlying locations
where there was no American diplomatic or con-
sular office. Thus it was made as convenient as
possible for every American man, wherever situ-
ated, to meet his obligation to register by appear-
ing in person before a duly authorized registrar.
Through the press and radio, by the mailing of
circular letters and by the posting of notices in
public places, the American diplomatic and con-
sular offices gave publicity to the registration re-
quirement.^ The registration proceeded, com-
mencing November 16, 1943 as required by the
proclamation, without untoward incident; 19,557
citizens were registered in foreign countries from
November 16 to December 31, 1943, inclusive, and
the registration cards were forwarded to the Se-
lective Service System through the Department
of State. Citizens continued to be registered
after January 1, 1944 in foreign countries at the
rate of about 600 a month for the first few months,
a rate which gradually decreased.
As of November 1, 1945 there had been for-
warded to the Selective Service System 6,120
registration cards dated later than December 31,
1943. Some of the 6,120 were the registrations of
persons attaining the age of 18 years, but a number
were those of older men registering tardily for
miscellaneous reasons. Many of the latter were
Americans, including some internees, who, be-
cause they were in enemy or enemy-occupied ter-
ritory during November and December of 1943,
could not possibly have registered during those
months. Their registrations came in only when
one area after another was taken from the enemy
during 1944 and 1945 and representation of the
Department of State reestablished in those areas.
The 19,557 "on time" registrations, added to
the 6,120 "late" registrations, make a total of
25,677. This total does not include the figure for
the Panama Canal Zone, which was about 3,475,
or that for the Virgin Islands, which was about
3,500 persons.
All the foregoing figures are inclusive of men
• Bui.ij;tin of Oct. 30, 1943, p. 300.
DEPARTMENT OF STATE BULLETIN
up to 45 years of age. It is to be borne in mind
that, except for routine transmittal and record-
ing operations, the cases of persons over 38 have
been permitted to become inactive, since men in
that age bracket have not been acceptable for in-
duction either at the time of the foreign registra-
tion or subsequently. The foregoing figures do
laot, however, include several thousands of men
who had registered directly with local boards in
the United States in compliance with previous
proclamations and who, subsequent to registering,
left the country without having been called for
military service. Many had gone overseas as
civilians on war-connected work, and others in
line of their normal pursuits. In any event, the
net number of cases subject to processing through
Department of State facilities in foreign countries,
regardless of when or where originally registered,
proved prior to V-E Day to be about 25,000 in
the active bracket over 18 and under 38 years of
age. Since V-J Day when men over 26 years of
age became unacceptable to the armed forces, the
net number of active cases has, of course, been
gi'eatly reduced.
When citizens are registered abroad a special
form of registration card (DSS Form 1-F) is
used. This form allows the registrant to desig-
nate a residence in the United States, and the local
boai'd having jurisdiction over that place becomes
his local board, to which his registration card is
forwarded. If he does not designate a place of
residence in the United States his registration card
is forwarded to a specially established local
board, designated as Local Board No. 1 (For-
eign) of Washington, D. C. All registrants fail-
ing to designate a place of residence in the
United States thus become registrants of Local
Board No. 1 (Foreign). Approximately 60 per-
cent of all outside registrations have fallen within
the jurisdiction of Local Board No. 1 (Foreign)
of Washington. The remaining 40 percent have
been distributed among the local boards through-
out the United States. A copy of every registra-
tion card has been retained at National Head-
quarters of the Selective Service System.
Local Board No. 1 (Foreign) has as many regi-
strants as some of the larger local boards in the
United States. Under the special circumstances
of the "outside'" registration, it has been necessary
for the board to process these registi'ants within
the space of a few months, wheieas most local
boards have done the same work gradually over
JUNE 16, 1946
1037
a period of four years. The actual operational
functions have been much greater than for those
of ''inside" registrants, since all communications
witli registrants are of necessity in writing and
subject to special routing. Moreover, there are
difficulties of citizenship, transportation, unusual
occuijations, and dozens of decisions which are out
of the ordinary and require special action. Special
connnendation should be given to the members of
Local Board No. 1 (Foreign) and its clerks for
an excellent handling of the situation.
Prior to 1944, the Selective Service System had
adhered to a concept that registrants in foreign
countries were liable, when summoned, to report at
their respective local board.s (or at least at the
office of some local board in the United States) at
their own expense. With the extension of the
registration requirement to Americans living in
foreign countries. Selective Service regulations
were relaxed to make systematic allowance for
the time required to jirocess individual cases out-
side the United States, and to provide for the fur-
nishing of Government transportation to a regis-
trant who elected to report for induction at a near-
by installation of the United States armed forces
in lieu of reporting to his local board in the United
States (Selective Service Local Board Memoran-
dum No. 189) .
The actual classification of "outside" registrants
has been fundamentally no different from that
of registrants in this country. However, during
the war it was most difficult to determine whether
or not a registrant was in war work if, for ex-
ample, he was working in a neutral country or in
a co-belligerent nation which was in fact not sup-
plying either food or troops for the war effort.
In certain instances, the advice was sought of the
United States Department of Conunerce, the De-
partment of State, and other United States govern-
mental repiesentatives.
Under the system adopted for the processing of
cases in foreign countries. Selective Service reg-
isli'ants (other than delinquents) have not been
ordered to report for final i^hysical examination
and induction before they have had preliminai-y
physical examinations at or near their places of
foreign residence. American diplomatic and
consular officers have made arrangements for these
preliminary examinations, utilizing the services
of medical officers of the United States armed
forces or civilian medical officers of the United
697654— 4G 3
States Government wliere available. AVhere
American Government physicians have been un-
available, private American or foreign doctors
have been engaged to conduct the examinations
and furnish sworn reports thereof. As of Novem-
ber 1, 194.5 the Medical Division of National
Headquarters of the Selective Service System in
Washington had received through the Department
of State and had reviewed 4,.587 reports of pre-
liminary jihysical examinations. The same foi-ms
have been used and (with the exception that
practical considerations have necessitated the
omission of chest X-rays in most cases) the same
items have been covered as at induction stations in
the United States, including serological tests and
urinalj'ses.
About one fourth of the 4,587 examinees were
found, on tlie basis of the reports of preliminary
examinations, to have disqualifying defects and
were classified bj^ the Selective Service System as
physically unfit (4-F). Men whose preliminary
physical reports disclosed no disqualifying defects
were retained in class 1-A, to be processed for
induction.
A special form of "Order To Eeport for Induc-
tion" (DSS Form 150-F) was prescribed for
use by local boards in connection with the induc-
tion of men residing in foreign countries. This
form, in the name of the President of the United
States, orders the registrant to report at his own
expense to the office of liis local board within 60
days of the date of the order, or permits him either
to enlist at an armed-forces installation outside of
the United States or to report at Government
exjDense for induction at the particular installa-
tion named on the form, on a date specified. The
installation to which the registrant may jaroceed
at Govermnent expense is designated in each case
by either the Army or the Navy; the date upon
which the registrant sliould report is determined
by the American diplomatic or consular officer
allowing normal transit time from the registrant's
home to the place of induction plus 10 days.
Of 1,790 men known as of November 1, 1945 to
have entered the United States armed forces under
this method of processing, 300 returned at their
own expense to the offices of the respective local
boards ; 699 proceeded at their own expense to en-
list at an armed-forces installation of their own
choice outside the United States; and 891 pi'o-
( Continued on page 1051 )
1038
DEPARTMENT OF STATE BULLETIN
German Documents on Relations With Japan
Foreign Office Memorandum
Berlin, Augmt 26, 1939
St. S. Nr. 648. Secret.
I received the Japanese Ambassador this eve-
ning at his request. As we had already been in-
formed by Ambassador Ott, he had two matters
to discuss and took them up in the following
oi'der :
1. He handed me a note in which the Japanese
Government directed to the German Government
an "earnest protest" on account of the alleged in-
consistency of tiie German-Russian non-aggres-
sion pact with the German- Japanese agreement.
2. He read me a communication according to
which the Japanese Government took the view
that by the conclusion of the German-Russian
pact the negotiations which had been previously
carried on for a German-Italian-Japanese alliance
were terminated.
In accordance with instructions, I stated to the
Ambassador tliat I did not wish to discuss the
matter with him officially, but as a friend and
comrade. As far as tlie contents of the note went,
it was known that it had been agreed between
the Reich Foreign Minister and Oshima that the
legal exj^erts should get together to consult about
the alleged inconsistency of the two treaties. I
wanted to deny completely any inconsistency.
Besides, in such serious periods in the life of na-
tions, it was not legal technicalities that were of
consequence, but realities as they were understood
between men and soldiers. If at the present mo-
ment tlie Japanese Government considered it de-
sirable to come to us with such complaints and
even to present them to us in written form as
an "earnest protest", I could only assure Oshima
that his Government would get an ill-tempered
answer, which would not be serviceable to the
friendlj' relations between Japan and Germany
for which we were all concerned.
With regard to placing tlie blame for the ap-
parent end of the conversations about our treaty
alliance, I said to Oshima that if the matter of
blame was to be discussed, we were of the opinion
that the blame was solely that of Foreign Minister
Arita, who liad let us wait in a most unsuitable way
for the last six months in spite of Germany's com-
plete readiness. It was this conduct whicli would
liave to be blamed for the present development. I
could a.ssure Oshima also that this second part of
his business would be rejected just as firmly by the
Reich Foreign Minister if it came to his attention.
Then I suggested to Oshima, as a friend, that our
conversation be treated as though it had never
taken place and as if he had not even seen me at
the Foreign Ministi-y. He could take his note back
again and think over for twenty-four hours how
lie could get around carrying out the orders of his
Government, which, however they might perhaps
be required by Japanese domestic policy, did not
correspond to tlie well-known interests of both of
our countries.
Oshima took his documents back again and he
left me with the intention of considering once more
what he would do, but giving the impression of
deep anxiety over his course since he had received
unequivocal directions from Tokyo.
Weizsacker
Foreign Office Memorandum
Berlin, Septeviber 18, 1939
St. S. Nr. 734
The Japanese Ambassador was given consider-
able information about the situation today by me.
He referred to the visit of Take Ushi \_sic]. He
congratidatcd us on the success of the Polish cam-
paign, etc. In conclusion, he came out in a some-
what ashamed manner with the attached docu-
ment, which is dated August 26 and in connection
with which lie had the following to say :
Admittedly I had, at the end of August, talked
him — Oshima — out of the idea of lodging the ear-
nest protest of the Japanese Government on ac-
count of the inconsistency of the German-Russian
non-aggression laact with the secret agreement be-
tween Germany and Japan. Out of consideration
for the German Government at that critical stage,
he had followed my advice. However, it was im-
possible for him to go dii'ectly contrary to the
orders of his Government. He had, therefore,
JUNE 16, 1946
1039
simply telegraphed his Government that he had
followed their directions. In reality he, Oshima,
had postponed carrying out the step until now.
He had waited for the conclusion of the Polish
campaign and he declared that now the step was no
longer of so much consequence, especially since he
had, on his own account, taken all the bitterness
out of the oi'ders from Tokyo. He asked that I
understand the accompanying note in that light.
I read the note, which really is no longer of very
great consequence, but I received it from him for
study only in my personal capacity and not offi-
cially. Oshima will explain the matter further
himself if he sees the Reich Foreign Minister soon.
He will then suggest that this document, with our
consent, be allowed to disappear in the archives.
He did not consider a discussion, especially one of
a legalistic nature, to be desirable or timely.
I said to the Ambassador, in conclusion, that
his view did not agree entirely with ours and that
I had hoped that the matter could be finally dis-
posed of. I was, however, ready to inform the
Eeich Foreign Minister in advance to the effect
that he, Oshima, considered that he was bound to
bring the matter to a formal conclusion in some
way.
I did not consider it correct to refuse to receive
the note from the Ambassador for consideration,
since Oshima was apparently honestly concerned
about disposing of the matter completely.
Weizsacker
[Enclosure]
The Japanese Embassy in Berlin to the German
Foreign Office
The Japanese Embassy has the honor, on in-
structions from the Japanese Government, to
inform the Foreign Office of the views of the Jap-
anese Government in connection with the non-
aggression and consultative^ pact recently con-
cluded between the German Government and the
Government of the Union of Soviet Socialist Ee-
publics, as follows:
"The Japanese Government regards the non-
aggression and consultative pact, recently con-
cluded between the German Government and the
Government of the Union of Soviet Socialist Re-
publics, as in contradiction to the secret annex to
the agreement against the Communist Inter-
national."
Berlin, August 26, 1939.
Telegram from the German Ambassador in
Japan (Ott) to the German Foreign Office
Tokyo, June 19, 191,0, 10: IS a.m.
[Received June 19, 9 : 30 p.m.]
No. 594 of June 19.
Urgent. For the Reich Chancellery. Secret.
The Chief of the European Bureau of the For-
eign Ministry informed me confidentially that the
Japanese Ambassador in Bei-lin today received
instructions to express to the German Government
the congratulations of the Japanese Government
on the German victory, and on this occasion to
call attention to the special interest of Japan in
the future fate of French Indochina. The Am-
bassador was to repeat the thanks of Japan for the
friendly attitude of Germany in the Chinese con-
flict, and, at the same time, to indicate that Japan
believed that she had furnished substantial as-
sistance to Germany during the European war by
holding the American forces in the Pacific Ocean.
The Ambassador was instructed to suggest to the
German Government, in return for this attitude
of Japan, a friendly gesture with i-espect to Indo-
china. To the question of what form such a
gesture should take, the Chief replied that the
Foreign Ministry had in mind a German declara-
tion to the effect that Japan would have a free hand
in Indochina. According to the press the Japanese
Ambassador to Rome has received similar instruc-
tions.
Since, in the course of the French collapse, the
pressure of popular opinion urging the Govern-
ment to action has become stronger, the Foreign
Minister decided on this step to save his policy
and his cabinet from an otherwise unavoidable
fall. There was danger, however, that the For-
eign Minister would make tactical use of the Ger-
man free hand with respect to Indochina in
negotiations for an agreement with America.
Characteristic of the unaltered basic position of
the J'oreign Minister is the fact reported else-
where that, on the same day, he came to a friendly
agreement with England and France on [the ques-
tion of] Tientsin.
As seen from Tokyo, the strengthening of Jap-
anese power in East Asia through the addition
of Indochina would be likely to be in the German
interest. Thereby, on the one hand, the pros-
pects for a speedy conclusion of the China conflict
would be heightened and, on the other hand, the
tension between Japan and the Anglo-Saxon pow-
1040
ers would be so increased that danger of agree-
ment would be eliminated for some time. If,
therefore, it is intended to comply with the Jap-
anese desire, a formula must be found which will
bind Japan finally and unreservedly to our side.
This could be accomplished especially if Japan
had to pledge herself to take immediate possession
of Indochina.
I learn confidentially from Army circles that in
those circles the idea of occupation of the strate-
gically important Yunnan Road is being agitated.
If the Government should evade a similarly ex-
pressed demand for the occupation of Indochina,
in case the matter should become public, it would
have to expect at least that its position would be
shaken and possibly that it would be dissolved
and replaced by a cabinet closer to us.
Ott
Foreign Office Notation on Telegram No. 594
of June 19 from Tolcyo on the Subject of
Indochina
The thanks of Japan for the friendly attitude of
Germany in the China conflict come rather late.
The sacrifice which we have made on behalf of
Japan (shutting off of delivery of war materials
to China and the loss thereby of important Chinese
raw materials) have so far received no recognition
on the Japanese side, far less has any economic
compensation been made. The Japanese request
for a friendly gesture on the part of Germany is,
in view of the attitude adopted by Japan toward
Germany during the war in economic relations,
somewhat surprising.
In case this is mentioned to the Japanese Ambas-
sador in the course of the forthcoming discussion,
the following examples may be cited :
1. Japanese shipping has, from the beginning,
and in a most comprehensive manner, submitted
itself to the English and French blockade controls.
2. The Japanese Government for a long time did
not accede to the German desires for transit of
goods through Japan and only in the last few
months has she displayed some evidence of becom-
ing more accommodating. Thus a shipment of
wolfram from Canton and a shipment of tin from
Colombia were transmitted to Germany. The
Japanese Government also recently offered us,
from its own supply, 100 tons each of wolfram and
tin to be delivered without charge. There con-
tinue to be, however, requests that are still not com-
DEl'ARTMENT OF STATE BULLETIN
plied with ; for instance, increase of Japanese sea
trade with Vladivostok, which route is covered
only tlaree times per month by a Japanese steamer.
Also, further shipment of tin from Colombia has
so far been impossible on account of the refusal
of the Japanese shipping line.
3. Japan, in January of this year, concluded a
monopoly agi"eement with Manchukuo for her sup-
ply of soy beans without saying anything about it
to us, although previously we were the largest im-
jjorter; in 1938 — for example — to the extent of
800,000 tons. After representations were made,
Japan so far has only allotted 70,000 tons for de-
livery to us from Manchukuo.
4. Japan continues to refuse the return trans-
portation from America in small gi'oups of the
crew of almost 500 men of the Columbus, since the
members of the crew are regarded, from the
English point of view, as participants in the war,
although according to the American view they are
regarded as shipwrecked individuals.
5. Japan, it is true, is delivering to us her entire
production of whale oil from tlie last catch, some
75,000 tons. We know, however, from confidential
sources, that she first offered half of it to England
a7id decided to malie delivery to us only when she
got no satisfactory English offer.
For transmittal to the Secretary of State.
Berlin, June £0, 1940.
WiEHL
Telegram from the German Foreign Minister
to the German Ambassador in Japan
(Clear to the Foreign Ministry, in ciplier to Tolcyo)
EuROPA, July 1, 1941, 6: S6 p. m.
Europa No. 634 (Forwarded to Tokyo as No. 9.42)
Priority. Urgent. Secret.
I request you to deliver to the Foreign Minister
as speedily as possible the following telegram from
me addressed to him personally. The telegram
is to be drawn up there on white paper, without
heading, and with my signature. The text of the
telegram follows:
"To His Excellency the Japanese Foreign Minister,
Herr Matsuoka, Tokyo.
Personal. At the time of Your Excellency's
visit in Berlin it was our intention that on the
occasion of events which were of especial impor-
tance for the welfare of both our countries, we
JUNE 16, 1946
1041
would get into communication j)ersoniilly. Sucli
a moment has now arrived and I liave the honor
to inform Your Excelknicy as follows:
(1) By the mighty blows of the German Armed
Forces we have succeeded, in the first eight days
of the German-Russian campaign, in breaking the
backbone of the Russian Army. A considerable
part of the best combat divisions of the enemy
liave been in part annihilated, in part captured, in
part so shattered that the remnants will scarcely
be able to appear again as effectives during the
course of this war. The enemy air force is almost
completely defeated, so that on the principal fight-
ing front, since yesterday, German mastery of the
air has become complete. Incalculable stores of
material have been captured or destroyed. De-
tailed information about the cpiantities of such
material will be given in the Gernum Army
communique.
Meanwhile the German armies are continuing
to push farthei' east along the whole front. The
coming operations of the German Army will, I
have no doubt, destroy the remaining forces of the
enemy in the same manner and it can be counted
on, that perhaps even in only a few weeks Russian
resistance over the whole European area of the
Soviet Union will be broken. It is very likely,
as I already told Your Excellency a few days ago
through Ambassador Ott, that this in turn will re-
sult shortly in the total collapse of the Bolshevist
regime.
2. From this military success, unparalleled in
history, for which we have to thank first of all
the valor of the German soldiery, and by which
the great military threat to which Europe was
exposed has been eliminated, arises the obligation
on the part of the German leadership to create for
the future a political situation in the East which
would prevent for all time a repetition of such
events. It is also our conviction that as long as
Russia continues to exist as the nucleus of Bol-
shevism, neither Europe, nor East Asia, nor the
world at large will ever have quiet. Germany is
determined to draw the necessary consequences
from this knowledge. She hopes to have the col-
laboration of Japan, since a final solution of the
Russian question could be brought about most
speedily and completely by Japan and Germany
together.
3. The approaching collapse of the militai-y
power of Russia and the probable fall of the Bol-
shevist regime itself offers to Japan the unique
opportunity to free herself from the Russian threat
and to give the Japanese Empire security in the
north, which is a necessary prereciuisite to her
expansion in the south in accordance with her
vital needs. It seems to me, therefore, the require-
ment of the hour that the Japanese Army should,
as quickly as possible, get into possession of Vladi-
vostok and push as far as possible toward the
west. The aim of such an operation should be
that, before the coming of cold weather, the Jap-
anese Army advancing westward should be able
to shake hands at the half-way mark with the
German troops advancing to the east, that both
by way of the Trans-Siberian Railroad and by air
uninterrupted communication should be estab-
lished between Germany and Jajian by way of
Russian territory, and that finally the whole Rus-
sian question should be solved by Germany and
Japan in common in a way which would eliminate
the Russian threat to both Germany and Japan
for all time.
4. The defeat of the Soviet Union by Germany
and Japan would allow us to bring the actual
power of the states allied in the Three Power Pact
into effective cooperation for the first time. Ger-
many and Italy would then be the completely con-
trolling elements in the entire European-African
Hemisphere. They would then be in a position to
strengthen their pressure on England enormously
by bombardments from the air and by U-boats,
and by appropriate operations bring about the
final destruction of England. Japan, on her part,
with her back free, would be able to devote her
whole force to the final solution of the problems
affecting her in the south. That the elimination
of the Soviet regime would also ease the solution of
the Chinese conflict is mentioned only in passing.
In respect to America, I hope that, after the de-
feat of Russia, the weight of the Three Power
states, Germany, Italy, and Japan, and the powers
allied to them, to whom I hope a considerable
number of additional European states will soon be
added, will suffice to paralyze any rising tendency
in the United States to participate in the war.
Summing up I would like to state that :
I am convinced that with the triumph of Gennan
arms in the past weeks the historic opportunity has
now come, perhaps never to recur, for Japan, to-
gether with Germany, to solve the Russian question
and to free our peoples for a long time from every
(Continued on page 1050)
International Organizations and Conferences
Calendar of Meetings
Council of Foreign Ministers :
Meeting of Foreign Ministers
Meeting of Deputies
Far Eastern Commission
PICAO :
European and Mediterranean Air Route Services Con-
ference
Meeting of the First Annual Assembly
Allied-Swedish Negotiations for German External Assets
Inter-American Conference of Experts on Copyright
ILO: 28th (Maritime) Session of the International Labor
Conference
The United Nations :
Security Council
Military Staff Committee
Special Committee on Refugees and Displaced Persons
Commissions of the Economic and Social Council
Economic and Social Council
Commission on Atomic Enei^gy
International Health Conference
General Assembly : Second Part of First Session
Paris
Paris
Washington
Paris
April 25 — adjourned on May
16 until June 15
May 27
February 26
April 24
Montreal
May 21
Washington
May 31
Washington
June 1
Seattle
June 6
New York
March 25
New York
March 25
London
April 8
New York
April 29
New York
Jlay 25
New York
June 14
New York
June 19
New York
September
The dates in the calendar are as of June 9.
Activities and Developments
The Far Eastern Commission at its fourteenth
meeting on June 5 apiDroved unanimously a policy
statement with respect to aliens in Japan (text
follows). This policy statement embodies minor
changes in the basic directive from the United
States Government by which the Supreme Com-
mander for the Allied Powers has hitherto been
governed.
The Commission considered a proposed request
for consultation with the Supreme Commander for
the Allied Powers on the subject of the recent tours
of the Emperor through Japan. It was unani-
mously agreed that the Commission should take no
action on this subject at present, pending consid-
eration by the Commission of the basic question
of democratic reform or abolition of the Emperor
institution, and that both matters should be re-
ferred to Committee 3 for reconsideration and
report.
I. Statesient of Policy Regarding Aliens
IN Japan
1. The major policies in regard to aliens in Ja-
pan including Formosan-Chinese and Koreans are
that :
a. Aliens should be allowed, if they so desire,
to leave Japan as early as possible, except such
persons who are held as war criminals or for
security reasons; and
h. Subject to the general control of the Supreme
1042
JUNE 16, 1946
1043
Commander the Japanese authorities should be
hekl responsible for the care, safety, and welfare
of such persons and for their transportation to
jiorts of embarkation.
2. To carry out these policies, the following
steps should be taken :
a. Neutral Nati07ials.
All nationals of neutral nations should be re-
quired to register with the appropriate military
authorities and their respective governments
should be notified as to the location and status of
these persons. All nationals of neutral nations
who have actively participated in any way in the
war against one of the United Nations should be
arrested for disposition in conformity with other
instructions. Neutral nationals should be ac-
corded no special privileges of communications
or business relations with their home countries
or people resident outside Japan. The persons,
archives, and property of diplomatic and con-
sular officials of neutrals should be accorded full
protection.
1). United Nations Nationals.
(1) Civilians who are nationals of the United
Nations should be, except as noted below, repatri-
ated, if they so desire upon the concurrence of the
government concerned. All such civilians resi-
dent or interned in Japan should be identified,
examined closely and, if the Supreme Commander
deems it advisable, placed in custody or restricted
residence. The Supreme Commander should in-
form the representatives of the nationals' govern-
ment of the reasons for the arrest or restricted
residence of those nationals and consult with them
concerning future treatment of such persons.
Anj' such person who has played an active part
in the formulation or execution of the Japanese
program of aggression or who is believed to be de-
sired by his government as a renegade or quisling
should be held for disposition in accordance rfith
ai^plicable directives.
(2) Persons of Japanese race claiming citizen-
shiji of any other United Nation should be repa-
triated only upon concurrence of the government
of such nation.
c. Stateless persons, Central European refugees
from Nazi oppression and Italian non-Fascists
should be assimilated in treatment to United Na-
tions nationals, providing such persons have not
supported the Axis cause.
d. Responsibilities of the Japanese Authorities.
Measures should be taken on behalf of United
Nations nationals and neutrals to insure the
health, welfare and transportation to a port from
which they may embark for transoceanic desti-
nations, and shoidd, in so far as practicable, be
the responsibilitj' of the Japanese Government.
Any deficiencies resulting in the carrying out of
these measures in respect to United Nations na-
tionals should be supplied by the Supreme Com-
mander and the cost thereof should be charged
to the Japanese Government. Repatriation from
such a port should be provided in accordance with
appropriate arrangements between the govern-
ments concerned.
e. Political, Racial and Religious Prisoners.
Prisoners of non-Japanese nationality found
held by the Japanese should be examined for iden-
tification and their records reviewed for determi-
nation of the cause of detention. All those found
to be detained solely on political, racial or religious
grounds, should be released except those whom the
Supreme Commander decides to hold for security
reasons. Those detained should be given prompt
trial.
/. Non-Japanese Nationals of the Countries which
are or have been at war with the United Nations
in the Second World War.
(1) All nationals of countries except Japan
with which any of the United Nations are or have
been at war in the Second World War (Bulgaria,
Finland, Germany, Hungary, Italy, Rumania and
Siam) should be identified and registered and may
be interned or their activities curtailed as may be
necessary under the circumstances. Diplomatic
and consular otHcials of such countries except those
identified as loyal to the cause of the United Na-
tions should be taken into honorable custody, held
for investigation, and thereafter repatriated in
accordance with the provisions of subparagraphs
(2), (3), (4) and (5) below.
Property, real and personal, owned or controlled
by persons who have been detained or arrested
under the provisions of the foregoing paragraph
should be taken under control pending directions
as to its eventual disposition.
(2) Those non- Japanese enemy nationals who
were known as agents or propagandists of Nazism
and Fascism (including research experts and
students, scientifically skilled persons, persons
holding administrative posts in commerce or gov-
1044
DEPARTMENT OF STATE BULLETIN
ernnient and all those who sought repatriation to
enemy countries during the period of hostilities)
should be interned and. after confirmation and
agreement by the appropriate authorities in their
home countries, repatriated.
(3) Those non-Japanese enemy nationals not
subject to internment and repatriation should be
given their freedom unless internment is necessary
for their protection.
(4) The voluntary repatriation of enemy or
ex-enemy nationals of non-Japanese nationality
not subject to forceable repatriation should be
permitted.
(5) Transportation to a port of embarkation
for transoceanic destination should be at the ex-
pense of Japan and repatriation therefrom should
be provided in accordance with appropriate ar-
rangements between the governments concerned.
g. Forinosan-Chinese and Koreans.
(1) The Supreme Commander should treat
Formosan-Chinese and Koreans as liberated
people in so far as military security permits. They
are not included in the term "Japanese" as used in
this paper but they have been Japanese subjects
and may be treated, in case of necessity, as enemy
nationals. They should be identified as to nation-
ality, place of residence and present location.
They may be repatriated if they so desire under
such regulations as the Supreme Commander may
establish. However, priority will be given to the
repatriation of nationals of the United Nations.
The Supreme Commander, if he finds it neces-
sary, should direct the repatriation of Formosan-
Chinese and Koreans and coordinate such repatri-
ation with the repatriation of Japanese nationals
from Korea and Formosa.
(2) Arrangements for the repatriation of For-
mosan-Chinese should be made with the govern-
ment of China by the United States Government.
(.3) Pending completion of arrangements for
the i-epatriation of Koreans formerly resident in
Korea north of 38° North Latitude, between the
Soviet Unioii and the United States, the Supreme
Commander, if he finds it necessary, may repatri-
ate such Koreans to that part of Korea south of
38° North Latitude.
(4) When arrangements have been entered into
as indicated in subparagraphs (2) and (3) above,
and subject to such arrangements, the Supreme
Commander should permit voluntary i-epatriation
of Formosan-Chinese and Koreans and may direct
their repatriation if he deems such action neces-
sary. Priority, however, should be given to the
rei^atriation of nationals of the United Nations.
(5) Formosan-Chinese and Koreans should be
protected from hostile Japanese elements. The
Supreme Commander should insure that the Japa-
nese authorities make adequate provision in fact
for the care, safety and welfare of Formosan-
Chinese and Koreans pending their repatriation.
/;. Protection of Property.
(1) Within sucii limits as are inn^osed by the
military situation, the Supreme Commander
should take all reasonable steps necessary to pre-
serve and protect the pi'operty of United Nations
Nationals in Japan.
(2) Record of wages, bank deposits and owner-
ship of securities and other personal property of
all aliens should be preserved.
i. Return to Homes in Japan.
Aliens having homes in Japan and not held as
war criminals or for security reasons, should be
permitted to return to their homes as soon as con-
ditions permit.
y. Use of UiVRRA and Voluntary Agencies.
UNRRA and private relief agencies may be used
at the discretion of the Supreme Commander wher-
ever available in the cai'e and repatriation of
United Nations nationals and those assimiliated to
them in treatment.
Election of Bank and Fund Officials. Eugene
Meyer of the United States was unanimously
elected President of the International Bank for
Reconstruction and Development on June -t.
Camille Gutt of Belgium was elected Managing
Direct<^r of the International Monetary Fund at its
meeting on May 6.
The Record of the Week
'Random Harvest"
BY UNDER SECRETARY ACHESON
LITE Fdi! ALL OF VH has been so concentrated on
I the iinniediate in these past years — each day
with its pressing task; each meeting with its
agenihi ; each conversation with its nrgent need for
relevancy — that one faces a gathering which is not
going to end in a vote with a sense of emptiness.
For it takes a wise man and the long habit of con-
templation to spin threads from one's own in-
nards. The rest of us can only splice those odd
fragments of conclusion which tliis unaccustomed
effort pi'oduces.
The first task is repression. One who has been
serving in the field of foreign affairs must beware
at a moment like this of tliose ''pernicious ab-
stractions", in the Lincolnian phrase, which rise
in the heart and gather to the eyes — albeit only
the mind's eyes. Sovereignty, security — in a curi-
ous way so many of them begin with "s" — selfish-
ness, survival, sacrifice, self-executing, society,
social significance, and suicide. The "inters" also
dig a pit for the unwary — interdependent, inter-
national, inextricably intermingled. We turn
to tliem from an almost biological urge to stretch
from where we are to somewhere brighter, like a
sprout coming through the earth. But speeches
in which they appear usually jiortray a mood
rather than a thought, and are apt to end with a
paraphrase of the closing sentence of the Gettys-
burg address.
If one is to spin from his own visceral wisdom,
he nuist say, first, "I shall not be a fake"; and,
second, "What do I know, or think 1 know, from
my own experience and not by literary osmosis?"
An honest answer would be "Not much; and I am
not too sure of most of it."
One thing, however, seems pretty sure — that the
tasks which grow out of the relations of our
country with other countries are hard ones. This
does not come from any lack of ideas and sug-
gestions. These pour out on the unhappy laborer
in this vineyard in a generous, if varied, flood.
]Mr. Morrow remarked that there were two classes
of people : those who talked about things, and
those who did things. And he added that the
competition in the second group was not keen.
No, the difficulty does not come from any meager-
ness of choice of direction or method. It comes
pretty directly from the medium with which one
works, the human animal himself. Senator Bark-
ley observes resignedly from time to time that one
man has about as much human nature as another —
and perhaps a little more. And so, \^hen we tackle
the fundamental task in the conduct of our foreign
affairs, which Mr. Hull has described as focusing
the will of 140,000,000 people on problems beyond
our shores, we find ourselves in trouble. The trou-
ble comes from the fact that people are focusing on
140,000,000 other things — or, more accurately, not
focusing on them, but getting very nuich mixed up
with and about them — and the people in other
countries are doing the same thing.
The reasons M'hy this is so lie beyond the limits
of my knowledge and so talk about them is banned
bv my self-restraining ordinance. But there is one
contributing factor wiiich I have observed and
believe causes an immense amount of trouble.
Man has been poking about within his own mind
and has found out too nmch about it for his own
wisdom to handle.
For a long time we have gone along with some
well-tested principles of conduct : that it was better
to tell the truth than falsehoods ; that a half truth
was no truth at all ; that duties were older than
and as fundamenal as rights; that, as Justice
Holmes put it, the mode by which the inevitable
came to pass was effort ; that to perpetrate a harm
was always wrong no matter how many joined in
it, but to perpetrate it on a weaker person or people
was particularly detestable; and so on.
Our institutions are founded on the assumption
that most people follow these principles most of
' An address delivered before the Associated Harvard
Clubs in Boston, Mass., on .Tune 4 and released to the press
on the same date.
1045
1046
DEPARTMENT OF STATE BULLETIN
the time because they want to, and the institutions
work pretty well when this assumption is true.
More recently, however, bright people have been
fooling with the machinery in the human head and
they have discovered quite a lot. For instance, we
know that association and repetition play a large
part in the implanting of ideas. This has un-
expected results. We no longer engage in the
arduous task of making a better mouse trap to
induce the world to beat a path to our door. We
associate with our product a comely and exposed
damsel, or a continued story which speeds daily
through the air rejected only by the ionosphere.
So far the matter does not seem too serious. But
Avhen Hitler introduced new refinements they were
serious. It appears to be true that people can be
united most quickly by hatred of a comparatively
weak group in the community and by the common
sense of guilt which accompanies outrages against
its members. We have had some experience of this
ourselves. With this as a start and all the per-
verted ingenuity of propaganda, which uses fa-
miliar and respected words and ideas to implant
the exact opposite standard and goal, a whole peo-
ple have been utterly confused and corrupted. Un-
happily neither the possession of this knowledge
nor the desire to use it was confined to Hitler.
Others dip from this same devil's cauldron.
The politician who knows that notoriety survives
the context is anxious to be mentioned as often as
possible. The perfect tool at hand is controversy.
For controversy is far more diverting than expo-
sition, and, therefore, the press and radio ai-e more
than willing to assist. They have been known
to pitch some balls of their own. And no contro-
versy is safer than one with the foreigner, the
outsider. His defenders at oiice become suspect.
So a field which is difficult enough, where more
than anywhere widespread agreement is essential,
becomes a peculiar prey to controversy.
There is also the new psychology of crisis — ex-
emplified by the common expression "to build a
fire under him"'. Now in my archaic profession to
do that is to connuit arson, and the law takes a dim
view of it. But abroad and at liome it has been
observed that to obtain relief from the unendurable
produces a quite irrational sense of well-being.
Thei-efore, the iniendurable situation is created so
that one may profit from the circumstances of
relief.
It is, I believe, a Russian fable which recounts
the advice given by a priest to a peasant who in-
sisted that he was about to commit suicide because
his life was so unbearable. The advice was to
move his goats and chickens into his own hut for
a week, and then to move them out. The advice,
of course, was sound. Life took on a definitely
rosier hue and the idea of suicide was abandoned.
It is not recommended as a sound practice, like
swinging two bats before going to the plate.
The evil is not merely that the perpetrator of
the crisis misjudges his own skill and involves us
all in disaster, but that, as with all these practices,
a Gresham's law of politics and morals sets in.
The baser practice drives out the better. The
cheaper, the more fantastic, the more adapted to
prejudice, the more reckless the appeal or the man-
euver, the more attention, and excited attention, it
receives. And the less chance there is that we
shall listen to the often difficult analysis of the
facts and the always difficult consideration of duty.
It is evil for shrewd men to play on the minds
and loyalties and fears of their fellows as on an
instrument. It produces not only the degradation
of the democratic dogma about which Brooks
Adams warned, but the degradation of all man-
kind everywhere, paralyzing the very centers of
moral action, until these oceans of cunning words
wash through the minds of men like the sea
through the empty portholes of a derelict.
If the need for a remedy seems urgent, it might
be sought both through attaining an intellectual
immunity to this virus by identifying and isolating
it and also by making it plain to its carriers at
home and abroad by the plainest words and acts
that they are not fit company for morally healthy
p-eople.
These practices, I said a moment ago, seemed
to me a contributing factor in the trouble we have
in focusing the will of people on problems beyond
our shores. Perhaps, even more than this, they
have contributed to those problems. If it is true,
as I believe it is, that the continued moral,
militar}', and economic power of the United States
is an essential factor in the organization of peace,
then these matters about which we have been
talking have greatly contributed to our troubles.
They lie at the root of the hysteria which has
wrought such havoc with our armed services, and
continues to do so. They lie at the root, also, of
the difficulty which we have in using our great
economic power, in our own interest, to hasten
recovery in other countries along lines which are
essential to our own system. They have contrib-
JUNE 16, 1946
1047
uted largely to the weakening of our economic
strength itself. The slogans "Bring the boys
home!" and "Don't be Santa Clans!" are not
among our more gifted or thoughtful contribu-
tions to the creation of a free and tranquil world.
This seems to me true for the simplest of all rea-
sons, which is that the sensible way to strengthen
a structure is not to weaken its most essential
parts. I am often told that the way to solve this
or that problem is to leave it to the United Na-
tions. But it seems to me inescapable that if they
are, or we hope will be, united, they are still
nations ; and no more can be expected of this forum
for political adjustment than the sum total of the
contributions. If these are wise and steadfast and
supported by strength determined to organize
peace, the results will be good. But, in the Arab
proverb, the ass that went to Mecca remained an
ass, and a policy has little added to it by its place
• of utterance.
So, when one sees our military forces disrupted,
one is entitled to ask whether the considerations
which led to this were more valid and urgent than
the sense of steadiness and confidence which our
forces gave and would have continued to give to
millions all over a badly shattered and uncertain
world. The answer which one most often gets
does not go to the merits of the question. It goes
to another of our devices for finding out what we
think — opinion polls. It appears that we have
become extroverts, if of a somewhat hj'pochon-
driac type, and ascertain our state of health by
this mass temperature taking. Fortunately this
was not one of the hardships of Valley Forge.
So, too, those who must labor daily at the
crossings where the lives of many people meet
imderstand better than they can expound that
their tasks can be lightened but not performed by
a resolution drafted and passed at Hunter College.
These tasks are more deeply affected by how we
and others master the intricacies of the production
and movement of food and other goods, by how
successfully we deal with labor problems and in-
flation, with credits, with the wise use of natural
resources. They even involve the most national of
all problems — the efficiency of the administrative
and legislative processes.
At this point I am aware of voices whicli say
that national sovereignty is the root of the whole
trouble and that we must do away with all of that.
It may be so, but to a sinking heart there comes
the admonition of Old Hickorv at the battle of
New Orleans, apocryphally reported by Paul
Porter: "Boys, elevate them guns a little lower."
It may be that the way to solve a difficult prob-
lem is to transfer one's attention to an insoluble
one. But I doubt it.
Rather it seems to me the path of hope is toward
the concrete, toward the manageable, in the first
instance. A forum there should be, and there is,
for the adjustment, as best we can, of those criti-
cal issues which threaten the peace. But when we
come to tasks of common management, it seems
wise to start with those which through hard and
intelligent work can be reduced to manageable
dimensions and governed by pretty specific rules
and standards — like the moiretary fund, the bank,
the trade organization, and, if possible, the con-
trol of atomic energy. These are hard enough
in all conscience. I have chewed on them and
know their toughness and the frailty of the task
forces and their plans. But the jobs are doable
with good sense and good luck.
To do these jobs and conduct our own afl'airs
with passable restraint and judgment — the type
of judgment, as Justice Brandeis used to say,
which leads a man not to stand in front of a loco-
motive— will be an achievement. Moreover, it
will be an achievement which will profoundly
modify many situations which now concern us,
including — and I am now guessing — our relations
with the Soviet Union. Problems which are dif-
ficult against a background of confusion, hesita-
tion, and disintegration may well become quite
possible of solution as national and international
institutions and activities become healthy and
confident and vigorous in a large part of the
world. Certainly our troubles will not increase.
But it is a long and tough job and one for which
we as a people are not particularly suited. We
believe that any problem can be solved with a lit-
tle ingenuity and without inconvenience to the
folks at large. We have trouble-shooters to do
this. And our name for problems is significant.
We call them headaches. You take a powder and
they are gone. These pains about which we have
been talking are not like that. They are like the
pain of earning a living. They will stay with
us until death. We' have got to understand that
all our lives the danger, the uncertainty, the need
for alertness, for efl^ort, for discipline will be upon
us. This is new to us. It will be hard for us. But
we are in for it and the only real question is
whether we shall know it soon enoueh.
1048
DEPARTMENT OF STATE BULLETIN
Rumanian Reply to U. S. Note on General Elections and Public
Liberties
[Released to the press June 7]
?7ie following note from the Rumanian Minister
for Foreign Affairs was received hy the United
States representative in Bucharest on June 3, J946
and has now been released for publication by the
Rumaii ian. Go vern men t :
Sir:
I have the honor to acknowledge the receipt of
your note dated May the twenty-seventh and at
the same time to forward you the Rumanian Gov-
ernment's reply thereto.
From the contents of your note it follows that
the anxiety expressed by the United States Gov-
ernment is caused, first, by the non-fixation of the
date for the general elections and, secondly, by the
manner in which the Moscow decisions concernins:
public liberties are being carried out.
The Eumanian Government are eager to effect
the general elections as speedily as possible. To
this end they have, after laborious study, set up the
provisional draft of the electoral law, which they
have submitted to public discussion, in their desire
to win the assent of the entire public opinion to
the final wording of that law. After the law's
promulgation the Government will proceed with-
out delay to the establishing of the electoral lists
and then, after that procedure will have been ac-
complished, they will consult the electorate. With
regard to the public liberties, guaranteed by the
Moscow decisions, the Eumanian Government
have taken all measures to ensure their exercise.
The Rumanian Government wish to implement
the Moscow decisions in their entirety, yet with
constant mindfulness to defend the rule of public
order and security necessary for the fulfillment of
the obligations which they have assumed under
the Armistice Agreement as well as for the reali-
zation of the commandments of the States' per-
manent interests.
At present the opposition parties have at their
disposal 1() newspapers, wherein the free expres-
sion of opinion is complete, bordering as it does
on license, througli their violence of language.
On February the twenty-second last, the President
of the Council of Ministers, wishing to take co'>--
nizance personally of the complaints of the press,
called a conference of representatives of all news-
papers in the country, including opposition news-
papers. No complaint whatever was raised at that
conference by the representatives of the oppositioji
newspapers in connection with the action of the
services of censorship. The directives of the Allied
Control Commission aiming to prevent the dif-
fusion of polemics between the Allies have but
rarely been applied to certain statements from
abroad.
According to regulations in force, broadcasting
facilities are and remain available only to persons
with official responsibilities in the performance of
their governhncntal or administrative duties, yet
not to persons without responsibility.
The political violence which at times manifests
itself at public meetings and demonstrations is due,
for the most part, to the campaigns of agitation
and hatred that have been launched lately by the
opposition parties against the Government and its
members, and the responsible authorities are mak-
ing all efforts to hamper it and to maintain public
order and tranquillity.
The legal proceedings against the authors of
the incidents of November 8 have been continued
only in regard to those who, at the time of the
governmental statement, were under inquii-y for
offense against common law and were found in a
position of obvious and legally ascertained guilt,
as the application of the law cannot be suspended
ill favor of any citizen.
The ministers representing the National Liberal
Party under the leadership of Mr. Dinu Bratianu
and the National Peasant Party under the leader-
ship of Mr. lulius Maniu have participated and are
still participating in all cabinet meetings, where
they mean, however, to exercise, according to their
initial statements, only the function of observers,
not that of collaborators.
Thus the impressions abroad, to which your note
refers, can only be the consequence of a certain
propaganda that aims to misrepresent the acts of
the Government and to ignore realities in our
country.
Very truly j-ours,
G. Tatarescu
Vice President of the Council of Ministers,
Minister for Foreign Affairs.
JUNE 16, 1946
1049
Treaty Obligations and Philippine Independence
EXCHANGE OF NOTES BETWEEN THE U. S. AND BOLIVIAN GOVERNMENTS
Excellency :
With reference to the forthcoming independ-
ence of the Philippines on July -i, 194G, my Gov-
ernment considers that provision for a transitional
period for dealing witli tlie special tariff position
which Philippine products have occupied for many
years in the United States is an essential accom-
paniment to Philippine independence. Accord-
ingly, under the Philippine Trade Act approved
April 30, 1946, goods the growth, produce or man-
ufacture of the Philippines will enter the United
States free of duty until 1954, after which they will
be subject to gradually and I'egidarly increasing
rates of duty or decreasing duty-free quotas until
1974 when general rates will become applicable and
all preferences will be completely eliminated.
Since the enactment of the Philippine Inde-
pendence Act approved March 24, 1934, my Gov-
ernment has foreseen the probable necessity of
providing for such a transitional period and has
since then consistently excepted from most-fav-
ored-nation obligations which it has undertaken
toward foreign governments advantages which it
might continue to accord to Philippine products
after the proclamation of Philippine independence.
Some thirty instruments in force with other gov-
ernments, for example, permit the continuation of
the excejitional tariff treatment now accorded by
my Government to Philippine products, irrespec-
tive of the forthcoming change in the .Common-
wealth's political status.
With a view, therefore, to placing the relations
between the United States and Bolivia upon the
same basis, with respect to the matters involved,
as the relations existing under the treaties and
agreements referred to i nthe preceding paragraph,
I have the honor to pi'opose that the most-favored-
nation provisions of the treaty of Peace, Friend-
ship, Commerce and Navigation between the
United States and Bolivia signed May 13, 1858,
shall not be understood to require the extension
to Bolivia of advantages accorded by the United
States to the Philippines.
In view of the inaninence of the inauguration of
an independent Philippine Government, I should
be glad to have the reply of Your Excellency's
Government to this proposal at an early date.
Accept [etc.]
Dean Acheson
Acting Secretary of State
EjMBAJADA DE BdLIVLV
Washington
Excellency :
I have the honor to refer to Your Excellency's
note of May 4, 1946, with regard to the provision
that the most favored nation clause of the Treaty
of Peace, Friendship, Commerce and Navigation
between the United States and Bolivia, signed May
13, 1858, shall not be understood to require the
extension to Bolivia of advantages accorded by the
United States to the Philippines.
In aj^preciation of the facts explained in Your
Excellency's note, and as an act of friendship to
the Philippine Nation in the achieving its inde-
pendence, I have the honor to express, on behalf
of the Bolivian Government, the acceptance of this
proposition.
Accept [etc.]
V Andrade
WashiiHjtoiK D. C, June 10. 10^0
His Excellency
Mr. James F. By-enes,
Secretary of State,
Washington, D. C.
1050
DEPARTMENT OF STATE BULLETIN
Mission To Observe Revision of
Greek Electoral Lists
The United States Government has accepted an
invitation of the Greek Government to observe a
revision of the Greek electoral lists preparatory to
the plebiscite scheduled in Greece for September 1
on the question of tlie return of King George II.
The rei^ort of the Allied Mission which observed
the Greek elections on March 31 had recommended
that before any national question was again sub-
mitted to the people a complete revision of
registration lists be made.
The United States delegation will consist of
about 50 to 60 people, a number of whom were in
the United States delegation which assisted in
observing the March 31 elections.
It was pointed out that the United States dele-
gation will not participate in any manner in the
plebiscite. Its sole function is to assist in the
revision of voting lists which have not been revised
since 1936.
Letters of Credence
Ambassador of the U. S. S. R.
The newly appointed Ambassadoi' of the Union
of Soviet Socialist Republics, Nikolai Vasilievieh
Novikov, presented his letters of credence to the
President on June 3. For the texts of the Am-
bassador's remarks and the President's reply, see
Department of State press release 378.
Ambassador of Haiti
The newly apixiinted Amba.ssador of Haiti,
Dantes Bellegarde, presented his letters of cre-
dence to the President on June ;i. For the texts
of the Ambassador's remarks and the President's
reply, see Department of State press release 379.
Ambassador of Great Britain
The newly appointed British Ambassador,
Lord Inverchapel, presented his letters of cre-
dence to the President on June 5. For the texts
of the Ambassador's remarks and the President's
reply, see Department of State press release 385.
Signing of Military Mission
Agreement With Venezuela
[Released to the press June 3]
In conformity with the request of the Govern-
ment of Venezuela, there was signed on Monday,
June 3, 1946, by James F. Byrnes, Secretary of
State, and A. Machado-Hernatidez, Ambassador
of Venezuela in Washington, an agreement pro-
viding for tlie detail of a military mission by the
United States to serve in Venezuela.
The agi'eement will continue in force for two
years from the date of signature, but may be ex-
tended beyond that period at the request of the
Government of Venezuela.
The agreement contains provisions similar in
general to provisions contained in agreements be-
tween the United States and certain other Ameri-
can republics providing for the detail of officers
of the United States Army or Navy to advise the
armed forces of those countries.
GERMAN DOCUMENTS— (7on<mHe(f from page IO4I.
threat arising from that vast expanse, either as a
consequence of its political philosophy or of a mili-
tary nature. That our countries together, in pur-
suance of the Anti-Comintern policy hitherto car-
ried on by them in common, can give the decisive
blow for the elimination of Bolshevism, that great-
est enemy of mankind, will be for both our peoples
and their leaders the classic justification of their
common political ideas, and their greatest claim to
eternal fame.
In addition, I believe that the defeat of Russia
will materially hasten the conquest of England by
the Axis powers. Thereby there will be provided
tlie prerequisites for the New Order in Europe and
East Asia so desired by both our peoples, and no
one in the world will be able to dispute any longer
the right of the states united in the Three Power
Pact and now more closely joined than ever in
their struggle in Bolshevism, to set up a new and
just world order.
RlBBENTROP."
End of telegram.
RlBBENTROP
JUNE 16. 1946
1051
Philippine Independence Day
Ceremonies
[Released to the press June 7]
On July 4, lO-tC) the ceremonies attending the
prochimation of the independence of the Republic
of the Philippines and the inauguration of the
President and Vice President will take place in
Manila. The ceremonies are under the joint aus-
pices of the Government of the United States and
the Govei'nment of tlie Commonwealth of the
Philippines. Invitations to be represented at the
Independence Day ceremonies have been extended
jointl_v to all governments with which the United
States maintains diplomatic relations.
Transit Use of Azores Airports
[Released to the press June 4]
Under a wartime agreement made with the
Portuguese Government on November 28, 1944 the
United States and Portugal constructed on Santa
Maria Island in the Azores a modern and com-
plete airport which played an important role dur-
ing World War II. With the expiration of this
wartime agreement the airport has been i-eturned
to the Portuguese Government for conversion to
peacetime uses. Meanwhile, however, the United
States will be permitted the continued transit use
of airports in the Azores for 18 months to maiiitain
lines of communication with its occupation forces
in Germany and Japan.
SELECTIVE SEKy ICE— Continued from page 1037.
ceeded at Government expense to report for induc-
tion at the particular installation named in the in-
duction order. In the latter cases, transportation
arrangements were made by Department of State
representatives at the expense of the Selective
Service System.
Those who returned to the United States for in-
duction or who enlisted in the service branch of
their own choice apparently did so for a number of
reasons, such as preference relative to place where
basic training was expected to be received, oppor-
tunity to visit home before entering service, and
opportunity to transport the family to the United
States at the employer's expense.
A registrant appearing at the designated armed-
forces installation outside the United States for in-
duction is either (a) accepted and retained by the
armed foi-ces, or (b) rejected and retui-ned to his
home at the expense of the branch of the armed
forces concerned. If he fails to appear according
to the DSS Form 150-F, the armed-forces com-
manding otKcer returns the papers to the War or
Navy Department, as the case may be, with a nota-
tion showing I'egistrant's failure to appear in order
that his case may be processed under the regula-
tions relating to delinquency.
If the registrant chooses to return to his home
in the United States, it is his duty to report im-
mediately to the local board of jurisdiction, which
is instructed by general directive to proceed im-
mediately with his induction.
Although the record is, of course, still far from
complete, it is apparent from the figures given
above that the final total of men entering the armed
forces as a result of the extension of Selective
Service to Americans in foreign countries will be
small in relation to Selective Service operations in
the United States, which have resulted in the in-
duction of about 12,000,000 men. The fact that
the manpower yield of the operation in foreign
countries would be relatively small was realized
from the beginning. The significance of the oper-
ation and the justification for the effort have lain
not in numbers but in the underlying principles of
fairness which have characterized Selective Serv-
ice. The mere fact of foreign residence was recog-
nized as constituting no adequate basis for exempt-
ing American men living in foreign countries from
military service, and the practical problems of
reaching these men with a workable system for
their registration, classification, and physical ex-
amination and induction where required were met
and solved through the cooperative efforts of the
Selective Service System, the Department of State,
and the War and Navy Departments.
In December 1945 Maj. Gen. Lewis B. Hershey,
Director of Selective Service, wrote the Secretary
of State expressing his sincere appreciation of the
splendid assistance and cooperation of the Depart-
ment of State in the registration, physical exami-
nation, and induction of American citizens in for-
eign countries.
7052
DEPARTMENT OF STATE BULLETIN
Signing of Protocol Modifying
the Income-Tax Convention
With the United Kingdom
[Released to the press June 6)
On June C, lO-tC there was signed by James F.
Byrnes, Secretary of State, and J. Balfour, C.M.G.,
British Minister in Washington, a supplementary
protocol modifying in certain respects the income-
tax convention (that is, the convention for the
avoidance of double taxation and the prevention
of fiscal evasion with respect to taxes on income)
between the United States and the United King-
dom, signed at Washington on April 10, 1945.
The protocol provides that paragraph (3) of
article XI of the income-tax convention "shall be
deemed to be deleted and of no effect", and that
the protocol shall be regarded as an integral part
of the convention.
The Senate, on June 1, 1946, gave its advice and
consent to ratification of the income-tax conven-
tion with the United Kingdom, in accordance with
the recommendation of the Conmiittee on Foreign
Relations (S. Exec. Kept. 4, 79th Cong.. 2d sess.,
May 10, 1946) . However, in the report of the com-
mittee reference was made to hearings which were
lield before a subcommittee, in the course of which
liearings interested persons were heard with re-
spect to certain objections which had been raised
in regard to paragraph (3) of article XI of the
convention. Article XI contains three paragraphs,
under, the first two of which a reciprocal exemption
is accorded by each country, upon certain condi-
tions, with respect to compensation for personal
services performed within that country by a resi-
dent of the other country. Paragraph (3) specifi-
cally excludes public entertainers from the bene-
fits of such exemption.
The subconnnittee recommended approval of the
convention without amendment, at the same time
recommending that appropriate steps be taken
■v\itli a view to eliminating paragraph (3) of arti-
cle XI from the convention. The supplementary
protocol has been concluded for the latter purpose.
The Proclaimed List
[Ueleased to tlie press June 7]
The Secretary of State, acting in ctmjunction
with the Acting Secretary of the Treasury, the At-
torney General, and the Secretary of Commerce,
issued on June 7 Cumulative Supplement No. 3 to
Revision X of the Proclaimed List of Certain
Blocked Nationals.
Part I of Ciunulative Supplement No. 3 con-
tains three additional listings in the otlier Ameri-
can republics and 60 deletions; Part II contains
1)5 additional listings outside the American repub-
lics and 51 deletions.
An avenue named in honor of Franklin Delano
Roosevelt is now being cut through an important
downtown section of Lima, Peiii.
Representative on Commission
on Narcotic Drugs
The Senate confirmed on June 6 the nomination
of Harry J. Anslinger as United States representa-
tive on the Connnission on Narcotic Drugs of the
Economic and Social Council of the United Na-
tions.
WIESMAN — Continued from page 1034.
for the most part become historic milestones al-
ready passed by the vast majority of ILO
members.
In seeking language to set forth the principles
and purposes of the ILO, the Working Party
concluded that the Declaration of Philadelphia
unanimously adoi^ted there on May 10, 1944 is an
itleal statement of these objectives. It was decided
that reference to the Declaration of Philadelphia
shovdd be incorporated in the preamble and that
tlie declaration itself should be annexed to the
constitution, while original objectives of the
j)reamble and of article 41 would be deleted.
At the same time the Working Party report
seeks to make it clear that the functions at-
tributed to the International Labor Organization
by the terms of the Declaration of Philadelphia
differ in character from the coordinating re-
sponsibilities which have been entrusted to the
Economic and Social Council by the Charter of
the United Nations and have been designed from
the outset to be exercised within a wider frame-
work of coordinated effort to attain "better
standards of life in larger freedom."
JUISE 16, 1946
1053
Visit of Haitian Economist
Fiiiiicis Saliiado, a distinfriiislied lawyer and
political economist and chairman of the Inter-
American Commercial Arbitration Commission
in Haiti, is visiting the United States at the in-
vitation of the Department of State. He pnr-
poses to confer with colleagues in the field of eco-
nomics and to study the past economic relations
between Haiti and the United States and the
possible development and improvement of future
relations.
As a specialist in political economy and finance
he is prepared to lecture in American iniiversities
on either political economy, finance, or sociology,
and thus to promote a better understanding be-
tween Haiti and the United States.
Mv. Salgado will remain approximately six
weeks in AVashington, D. C, and then will visit
iniiversities in the northeast section of the United
States.
HOWARD— Coiiiiiiiicd from paye 1021.
of monetary gold. This method of distribution
was chosen because the losses of gold, amounting
to over a half billion dollars, were far in ex-
cess of the gold recovered, and because the gold
recovered was for the most part not identifiable.
As a part of the agreement with Switzerland I'e-
ferred to, Switzerland has agreed to make avail-
able to the "gold pot" $58.1 million of gold, in
recognition of the large amounts of gold she re-
ceived from Germany during the war.
8. The Paris Conference adopted a unanimous
resolution that, in the administration of benefits
for war damage to property, each government
shall in principle accord to the nationals of all
the other participating governments treatment not
less favorable than that accorded to its own na-
tionals. The important undertaking contained in
this resolution will help to assure non-discrimina-
tory treatment of United States and other foreign
nationals in the administration of compensation
benefits liy all the nations which participated in
the conference.
HI
The agreements reached by the Paris Confer-
ence were achieved in a remarkable spirit of coop-
ei-ation and good-will. On a number of occa-
sions during the 42 meetings and 6 weeks of con-
tinuous discussion, conflicts of interests threat-
ened the Confei'ence with disunity and even com-
plete dissolution. Nevertheless, out of the desire
of every delegate to reach agreement, conflicts
were overcome through compromise, and an ex-
ceptional atmosphere of mutual understanding and
connnon sense developed which prevailed during
even the most serious crises and finally led the
Confei'ence to success.
Informal discussions were held by the Ameri-
can, British, and French delegates to the Confer-
ence, both in advance of and during the confer-
ence, in order to obtain preliminary agreement on
as many points as possible. Through these dis-
cussions it was possible to provide general guid-
ance to the work of the conference itself. At the
same time there was full participation by all 18
delegates in the initiation of proposals, in the
drafting of final resolutions, and in the discussions
of the conference. Unanimous agreement was
sought on every point within the competence of the
confei-ence. With respect to matters within the
competence of the Control Council for Germany, a
number of non-unanimous resolutions were
adopted by delegates who desired to adhere, and
the delegates of the occupying powers inidertook
to bring these to the notice of their respective
governments.
The Congress
Study of luteniatioiial C<imimiiiicatioiis : Hearings
Before a Subcoiiiiiiittee of the Comiiiittee on Interstate
Commerce, Unitwl States Senate, Seventy-nintli Congress,
first session, ijursuant to S. Hes. 187 iTSth Congress)
(Extended by S. Res. 24 — TDth Congress), a resolution
directing a study of internatfonal communications by
wire and radio. Part 2. Exhibits submitted by Federal
Communications Commission, March 19-April 3, 1945.
iii, 3.30 pp.
Atomic Energy Act of 1940 : Hearings Before the Spe-
cial Committee on Atomic Energy, United States Senate,
Sevent.v-niuth Congress, second session, on S. 1717, a bill
for the development and control of atomic energy. Part 4.
February 18, 19, and 27, 1946. iii, 70 pp.
Administrative Expenses in Government Departments.
H. Kept. 2186, 79th Cong., to accompany H.R. 6.533. 24 pp.
[Favorable report.]
Providing Supi)ort for Wool, Amending the Agricultural
JIarketing Agreement Act of 19.37, and Providing for Wool
Standards, and for Other Purposes. S. Kept. 139S. 70th
Cong., to accompany S. 2033. IS pp. [Favorable reijort.]
1054
DEPARTMENT OF STATE BULLETIN
The Foreign Service
Confirmations
On June 5 the Senate confirmed the nomination of
Charles Ulricls Bay to be American AmbassaJor Extraor-
dinary and Plenipotentiary to Norway.
Consular Offices
The American Consulate General at Gdansk, Poland,
was established on May 7, 1846.
The status of the American Consulate at Saigon, French
Indochina, was changed to that of Consulate General on
May 23, 1946.
The American Vice Consulate at ManSos, Brazil, was
closed to the public on May 31, 1946.
The Consulate at Turin, Italy, was opened to the public
on June 1, 1946.
Resignation of George P. Baker
George P. Baker resigned as Director of the OflSce of
Tranisport and Communications Policy, effective June 30.
For the texts of Mr. Baker's letter of June 4 and Assistant
Secretary Clayton's letter of June 7 accepting the resig-
nation, see Department of State press release 394 of
June 8, 1946.
Appointment of Officers
William T. Stone, Director of the State Department's
Office of International Information and Cultural Affairs,
on June 6 announced the appointment of Kenneth D. Fry
as Acting Chief of QIC's International Broadcasting
Division. Mr. Fry had been Acting Associate Chief in
charge of the San Francisco office.
Training Announcements
Orientation Conferences
Departmental Series
General John H. Ililldring, Assistant Secretary of State for occupied areas, will speak on "American
Policies in Occupied Areas" Wednesday, June 26, at 10 a.m.
Foreign Service I'raining Series
Mr. John B. Appletun will present an "Introduction to India and the Far East" on Wednesday, June .
26, at 9 a. m. Mr. Appleton is the Geographic Adviser to the Division of Far East Intelligence (FEI).
These lectures will be held in Room 474, main State Department building.
A grieidtura I M iss ions
The Division of Training Services has been arranging orientation conferences in the Department for
personnel of two American agricultural missions which are going to China and the Philippines, respectively,
under the joint auspices of the Department of State and the Department of Agriculture. The missions were
requested by the Chinese and Philippine Governments.
The nine-man mission to China, headed by Dr. Claude B. Hutchison, dean of the College of Agriculture
and vice-president of the University of California, will leave Washington on June 27. The tive-man mission
to the Philippines, headed by Dean Leland E. Call, director, Agricultural Experiment Station, Kansas State
College, was to leave June 20.
During their stay in Washington the members of the two missions have been making an intensive study
of American policies in the Far East and of American trade relations with China and the Philippines.
Upon arrival at their respective destinations, the American personnel of the two missions will he
joined by Chinese and Philippine agricultural experts. After studying the possibilities of improving the agri-
cultural economies of the two countries, the joint missions will make recommendations to the Governments
at Nanking and Manila.
The missions were organized through the efforts of the Interdepartmental Committee on Cultural and
Scientilic Cooperation, working with the Office of Foreign Agricultural Relations of the Department of
Agriculture.
PUBLISHED WITH APPROVAL OF DIRECTOR OF BUREAU OF THE BUDGET
U. S. GOVERNMENT PRINTING OFFICE; I9<6
^3S3
THE DEPARTMENT OF STATE
VOL. XIV, m 364
JUNE 23, 1946
International Atomic Development Authority . page 1057
The Japanese General Elections .... page
1067
The Inter-Allied Reparation Agency
Article by JOHN B. HOWARD ....
page 1063
for complete contents
see inside cover
^Vl«^NT Oj;,
THE DEPARTMENT OF STATE
BULLETIN
Vol. XIV .No. 364 •
Publication 2557
June 23, 1946
For Bale by tbe Superinlendenl of DocumentB
U. S. Government Priming Oflfice
Waflhington 25, D. C.
Sdbscbiption:
52 ifiBues, $3.50; eingle copy. 10 cents
Special oCfer: 13 weeks for $1.00
(renewable only on yearly baeis)
The Department of State 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 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 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
at the end of each quarter, as well as
legislative materialin the field of inter-
national relations, are listed currently.
S. WPtRlNTENOENT OF P0CU«£NTS
JUL 16 1946
Contents
Economic Affairs
The I liter- Allied Reparation Agency. Article by John B. ^"se ■
Howard 1063
The Combined Food Board 1075
Resignation of Randolph Paul 1077
Procedures for Filing War Damage Claims: Poland and
the Netherlands 1083
Denmark Releases Assets of American Nationals .... 1083
Accommodation of American Businessmen in Paris .... 1086
Lend-Lease Operations: Twenty-Second Report 1091
General Policy
Council of Foreign Ministers 1074
Letters of Credence: Ambassador of Czechoslovakia . . . 1082
American Aid to India in World Food Crisis 1084
Cabinet Committee on Palestine and Related Problems
Statement by the President 1 089
Statement by the Secretary of State 1089
Executive Order 9735 1089
Hungarian Prime Minister Visits U. S 1091
Occupation Matters
The Japanese General Elections 1067
Far Eastern Commission: Interim Reparations Removals . 1074
The United Nations
Proposals for an International Atomic Development Au-
thority. By the United States Representatives to the
Atomic Energy Commission 1057
Final List of Delegates and Advisers to the United Nations
Commission to Deal With the Problems Raised by
the Discovery of Atomic Energy 1076
International Health Conference 1076
Negotiations on Legal Arrangements for LTnited Nations
Headquarters 1078
Treaty Information
The Inter-Allied Reparation Agency 1063
International Convention on Civil Aviation: President's
Message to the Senate 1079
Agreement on Transit Use of Azores Airfields 1080
1945 Sugar Protocol Proclaimed 1084
Transmittal to the Senate of Protocol Prolonging 1944
Sanitary Convention 1085
Supplementary Protocol to Income Tax Convention With
Great Britain 1087
Air-Transport Agreement With Egypt 1088
International Organizations and Conferences
Calendar of Meetings 1074
Activities and Developments 1074 "
Cultural Cooperation
Guatemalan Political Economist Visits U. S 1091
Application Date for Chinese Student Applications. . . . 1091
Visit of Chinese Geographer 1092
Visit of Chinese Scientist 1092
Political Scientist To Visit China 1092
Continuation of Scientific and Cultural Cooperation with
American Republics 1092
{Contents continued on page 1097)
Proposals for an International Atomic
Development Authority
By THE UNITED STATES REPRESENTATIVE TO THE ATOMIC ENERGY COMMISSION^
My Fellow Members of the United Nations
Atomic Energy Commission, and My Fellow
Citizens of the World :
We are here to make a choice between the quick
and the dead.
Tliat is our business.
Behind the black portent of the new atomic age
lies a hope which, seized upon with faith, can
work our salvation. If we fail, then we have
damned every man to be the slave of Fear. Let
us not deceive ourselves: We must elect World
Peace or World Destruction.
Science has torn from nature a secret so vast
in its potentialities that our minds cower from the
terror it creates. Yet terror is not enough to in-
hibit the use of the atomic bomb. The terror cre-
ated by weapons has never stojaped man from
employing them. For each new weapon a de-
fense has been produced, in time. But now we
face a condition in which adequate defense does
not exist.
Science, which gave use this dread power,
shows that it can be made a giant help to human-
ity, but science does not show us how to prevent
its baleful use. So we have been appointed to
obviate that peril by finding a meeting of the
minds and the hearts of our peoples. Only in the
will of mankind lies the answer.
It is to express this will and make it effective
that we have been assembled. We must provide
the mechanism to assure that atomic energy is
used for peaceful purposes and preclude its use in
war. To that end, we must provide immediate,
swift, and sure punishment of those who violate
the agreements that are reached by the nations.
Penalization is essential if peace is to be more
than a feverish interlude between wars. And,
too, the United Nations can prescribe individual
responsibility and punishment on the principles
applied at Niirnberg by the Union of Soviet So-
cialist Republics, the United Kingdom, France,
and the United States — a formula certain to
benefit the world's future.
In this crisis, we represent not only our govern-
ments but, in a larger way, we represent the
peoples of the world. We must remember that
the peoples do not belong to the governments but
that the governments belong to the peoples. We
must answer their demands; we must answer the
world's longing for peace and security.
In that desire the United States shares ardently
and hopefully. The search of science for the ab-
solute weapon has reached fruition in this coun-
tiy. But she stands ready to proscribe and de-
stroy this instrument — to lift its use from death
to life — if the world will join in a pact to that
end.
In our success lies the joromise of a new life,
freed from the heart-stopping fears that now be-
set the world. The beginning of victory for the
great ideals for which millions have bled and
died lies in building a workable plan. Now we
approach fulfilment of the aspirations of man-
' Bernard M. Baruch, who delivered this address at the
opening session of the United Nations Atomic Energy
Commission in New York, N. Y., on June 14. The address
was released to the press by the U.S. Delegation to the
United Nations on the same date.
1057
1058
kind. At the end of the road lies the fairer, bet-
ter, surer life we crave and mean to have.
Only by a lasting peace are liberties and de-
mocracies strengthened and deepened. War is
their enemy. And it will not do to believe that
any of us can escape war's devastation. Victor,
vanquished, and neutrals alike are affected physi-
cally, economically, and morally.
Against the degradation of war we can erect a
safeguard. That is the guerdon for which we
reach. Within the scope of the formula we out-
line here there will be fovuul, to those who seek it,
the essential elements of our purpose. Others
will see only emptiness. Each of us carries his
own mirror in which is reflected hope — or deter-
mined desperation — courage or cowardice.
There is a famine throughout the world today.
It starves men's bodies. But there is a greater
famine — the hunger of men's spirit. That star-
vation can be cured by the conquest of fear, and
the substitution of hope, from which springs
faith— faith in each other, faith that we want to
work together toward salvation, and determina-
tion that those who threaten the peace and safety
shall be punished.
The peoples of these democracies gathered here
have a particular concern with our answer, for
their peoples hate war. They will have a heavy
exaction to make of those who fail to provide an
escape. They are not afraid of an internation-
alism that protects; they are unwilling to be
fobbed off by mouthings about narrow sover-
eignty, which is today's phrase for yesterday's
isolation.
The basis of a sound foreign policy, in this new
age, for all the nations here gathered, is that any-
thing that happens, no matter where or how,
which menaces the peace of the world, or the eco-
nomic stability, concerns each and all of us.
That, roughly, may be sidd to be the central
theme of the United Nations. It is with that
thought we begin consideration of the most im-
portant subject that can engage mankind — life
itself.
Let there be no quibbling about the duty and the
responsibility of this group and of the govern-
ments we represent. I was moved, in the after-
noon of my life, to add my effort to gain the
world's quest, by the broad mandate under which
= BuiXETiN of Feb. 10, 1946, p. 198.
' BuixETiN of Dec. 30, 1945, p. 1031.
DEPARTMENT OF STATE BULLETIN
we were created. The resolution of the General
Assembly, passed January 24, 1940 in London,
reads :
^'■Section V. Terms of Reference of the Co-nmiis-
sion
"The Commission shall proceed with the utmost
despatch and enquire into all phases of the prob-
lems, and make such recommendations from time
to time with respect to them as it finds possible.
In particular the Commission shall make specific
proposals :
"(a) For extending between all nations the ex-
change of basic scientific information for peaceful
ends ;
"(5) For control of atomic energy to the extent
necessary to ensure its use only for peaceful pur-
poses ;
"(c) For the elimination from national arma-
ments of atomic weapons and of all other major
weapons adaptable to mass destruction;
"(f/) For effective safeguards by way of in-
spection and other means to protect complying
States against the hazards of violations and eva-
sions.
"The work of the Commission should proceed
by separate stages, the successful completion of
each of which will develop the necessary confi-
dence of the world before the next stage is under-
taken. . . ."^
Our mandate rests, in text and in spirit, upon
the outcome of the Conference in Moscow of
Messrs. Molotov of the Union of Soviet Socialist
Eepublics, Bevin of the United Kingdom, and
Byrnes of the United States of America. The
three Foreign Ministers on December 27, 1945 pro-
posed the establishment of this body.^
Their action was animated by a preceding con-
ference in Washington on November 15, 1945,
when the President of the United States, associ-
ated with Mr. Attlee, Prime Minister of the
United Kingdom, and Mr. Mackenzie King,
Prime Minister of Canada, stated that interna-
tional control of the whole field of atomic energy
was immediately essential. They propo.sed the
formation of this body. In examining that source,
the Agreed Declaration, it will be found that the
fathers of the concept recognized the final means
of world salvation — the abolition of war. Sol-
emnly they wrote :
"AVe are aware that the only complete protection
for the civilized world from the destructive use of
JUNE 23, 1946
1059
scientific knowledge lies in the prevention of war.
No system of safeguards that can be devised will
of itself provide an effective guarantee against
production of atomic weajions by a nation bent on
aggression. Nor can we ignore the possibility of
the development of other weapons, or of new
methods of warfare, which may constitute as great
a threat to civilization as the military use of atomic
energy." *
Through the historical approach I have outlined,
M-e find ourselves here to test if man can produce,
through his will and faith, the miracle of peace,
just as he has, through science and skill, the miracle
of the atom.
The United States proposes the creation of an
International Atomic Develoi^ment Authority, to
which should be entrusted all phases of the develop-
ment and use of atomic energy, starting with the
raw material and including —
1. Managerial control or ownership of all
atomic-energy activities potentiallj^ dangerous to
world security.
2. Power to control, inspect, and license all other
atomic activities.
3. The duty of fostering the beneficial uses of
atomic energy.
4. Research and development responsibilities of
an affirmative character intended to put the Au-
thority in the forefront of atomic knowledge and
thus to enable it to comprehend, and therefor to
detect, misuse of atomic energy. To be effective,
the Authority must itself be the world's leader in
the field of atomic knowledge and development and
thus supplement its legal authority with the great
power inherent in possession of leadership in
knowledge.
I offer this as a basis for beginning our dis-
cussion.
But I think the peoples we serve would not be-
lieve— and without faith nothing counts — -that a
treaty, merely outlawing possession or use of the
atomic bomb, constitutes effective fulfilment of the
instructions to this Commission. Previous failures
have been recorded in trying the method of simple
renunciation, unsupported by effective guaranties
of security and armament limitation. No one
would have faith in that approach alone.
Now, if ever, is the time to act for the common
good. Public oi^inion supports a world movement
toward security. If I read the signs aright, the
peoples want a jDrogram not composed merely of
pious thoughts but of enforceable sanctions — an in-
ternational law with teeth in it.
We of this nation, desirous of helping to bring
peace to the world and realizing the heavy obliga-
tions upon us arising from our possession of the
means of producing the bomb and from the fact
that ]t is part of our armament, are prepared to
make our full contribution toward effective control
of atomic energy.
When an adequate system for control of atomic
energy, including the renunciation of the bomb as
a weapon, has been agreed upon and put into ef-
fective operation and condign punishments set up
for violations of the rules of control which are to
be stigmatized as international crimes, we propose
that—
1. Manufacture of atomic bombs shall stop ;
2. Existing bombs shall be disposed of pursuant
to the terms of the treaty ; and
3. The Authority shall be in possession of full
information as to the know-how for the produc-
tion of atomic energy.
Let me repeat, so as to avoid misunderstanding :
My country is ready to make its full contribution
toward the end we seek, subject of course to our
constitutional processes and to an adequate system
of control becoming fully effective, as we finally
work it out.
Now as to violations : In the agi-eement, penal-
ties of as serious a nature as the nations may wish
and as immediate and certain in their execution
as possible should be fixed for —
1. Illegal possession or use of an atomic bomb;
2. Illegal possession, or separation, of atomic
material suitable for use in an atomic bomb;
3. Seizure of any plant or other property be-
longing to or licensed by the Authority;
4. Wilful interference with the activities of the
Authority ;
5. Creation or operation of dangerous projects
in a manner contrary to, or in the absence of, a
license granted by the international control body.
It would be a deception, to which I am unwill-
ing to lend myself, were I not to say to you and
to our peoples that the matter of punishment lies
at the very heart of our present security system.
'Bulletin of Nov. 18, 1945, p. 781.
1060
DEPARTMENT OF STATE BULLETIN
It might as well be admitted, here and now, that
the subject goes straight to the veto j^ower con-
tained in the Charter of the United Nations so
far as it relates to the field of atomic energy.
The Charter permits penalization only by con-
currence of each of the five great powers — the
Union of Soviet Socialist Kepublics, the United
Kingdom, China, France, and the United States.
I want to make very plain that I am concerned
here with the veto power only as it affects this
particular problem. There must be no veto to
protect those who violate their solemn agreements
not to develop or use atomic energy for destructive
purposes.
The bomb does not wait upon debate. To delay
may be to die. The time between violation and
preventive action or punishment would be all too
short for extended discussion as to the course to
be followed.
As matters now stand several years may be
necessary for another country to produce a bomb,
de novo. However, once the basic information is
generally known, and the Authority has estab-
lished producing plants for peaceful purposes in
the several countries, an illegal seizure of such a
plant might permit a malevolent nation to pro-
duce a bomb in 12 months, and if preceded by
secret preparation and necessary facilities per-
haps even in a much shorter time. The time re-
quired— the advance warning given of the possible
use of a bomb — can only be generally estimated
but obviously will depend upon many factors, in-
cluding the success with which the Authority has
been able to introduce elements of safety in the
design of its plants and the degree to which illegal
and secret preparation for the military use of
atomic energy will have been eliminated. Pre-
sumably no nation would think of starting a war
with only one bomb.
This shows how imiDerative speed is in detecting
and penalizing violations.
Tlie process of prevention and penalization — a
problem of profound statecraft — is, as I read it,
implicit in the Moscow statement, signed by the
Union of Soviet Socialist Republics, the United
States, and the United Kingdom a few months
ago.
But before a country is ready to relinquish any
winning weapons it must have more than words to
reassure it. It must have a guarantee of safety,
not only against the offenders in the atomic area
but against the illegal users of other weapons —
bacteriological, biological, gas — perhaps — why
not ? — against war itself.
In the elimination of war lies our solution, for
only then will nations cease to compete with one
another in the production and use of dread
"secret" weapons which are evaluated solely by
their capacity to kill. This devilish program
takes us back not merely to the Dark Ages but
from cosmos to chaos. If we succeed in finding a
suitable way to control atomic weapons, it is rea-
sonable to hope that we may also preclude the use
of other weapons adaptable to mass destruction.
When a man learns to say "A" he can, if he
chooses, learn the rest of the alphabet too.
Let this be anchored in our minds :
Peace is never long preserved by weight of
metal or by an armament race. Peace can be
made tranquil and secure only by understanding
and agreement fortified by sanctions. We must
embrace international cooperation or international
disintegration.
Science has taught us how to put the atom to
work. But to make it work for good instead of
for evil lies in the domain dealing with the prin-
ciples of human duty. AVe are now facing a
problem more of ethics tlian of physics.
The solution will require apparent sacrifice in
pride and in jjosition, but better pain as the price
of peace than death as the price of war.
I now submit the following measures as repre-
senting the fundamental features of a plan which
would give effect to certain of the conclusions
which I have epitomized.
1. General. The Authority should set up a
thorough plan for control of the field of atomic
energy, through various forms of ownership,
dominion, licenses, operation, inspection, research,
and management by competent personnel. After
this is provided for, there should be as little inter-
ference as may be with the economic plans and the
present private, corporate, and state relationshii^s
in the several countries involved.
2. Raw Materials. The Authority should have
as one of its earliest purposes to obtain and main-
tain complete and accurate information on world
supplies of uranium and thorium and to bring
them under its dominion. The precise pattern of
control for various types of deposits of such ma-
terials will have to depend upon the geological,
mining, refining, and economic facts involved in
different situations.
JUNE 23, 1946
1061
The Authority should conduct continuous sur-
veys so that it will have the most complete knowl-
edge of the world geology of uranium and tho-
rium. Only after all current information on world
sources of uranium and thorium is known to us
all can equitable plans be made for their produc-
tion, refining, and distribution.
3. Primary Production Plants. The Author-
ity should exercise complete managerial control
of the production of fissionable materials. This
means tliat it should control and operate all
plants producing fissionable materials in danger-
ous quantities and must own and control the
product of these plants.
4. Atomic Explosives. The Authority should
be given sole and exclusive right to conduct re-
search in the field of atomic explosives. Research
activities in the field of atomic explosives are es-
sential in order that the xluthoi'ity may keep in
the forefront of knowledge in the field of atomic
energy and fulfil the objective of preventing il-
licit manufacture of bombs. Only by maintain-
ing its position as the best-informed agency will
the Authority be able to determine the line be-
tween intrinsically dangerous and non-dangerous
activities.
5. Strategic Distribution of Activities and
Materials. The activities entrusted exclusivelj^
to the Authority because they are intrinsically
dangerous to security should be distributed
throughout the world. Similarly, stockpiles of
raw materials and fissionable materials should not
be centralized.
6. Non-Dangerous Activities. A function of
the Authority should be promotion of the peace-
time benefits of atomic energy.
Atomic research (except in explosives), the use
of research reactoi's, the production of radio-
active tracers by means of non-dangerous re-
actors, the use of such tracers, and to some ex-
tent the production of power should be open to
nations and their citizens under reasonable li-
censing arrangements fi'om the Authority. De-
natured materials, whose use we know also re-
quires suitable safeguards, should be furnished
for such purposes by the Authority under lease
or other arrangement. Denaturing seems to have
been overestimated by the public as a safety
measure.
7. Definition of Dangerous and Non-Danger-
ous Activities. Although a reasonable dividing
line can be drawn between dangerous and non-
dangerous activities, it is not hard and fast.
Provision should, therefore, be made to assure
constant reexamination of the questions and to
permit revision of the dividing line as changing
conditions and new discoveries may require.
8. Operations of Dangerous Activities. Any
plant dealing with uranium or thorium after it
once reaches the potential of dangerous use must
be not only subject to the most rigorous and com-
petent inspection by the Authority, but its actual
operation shall be under the management, super-
vision, and control of the Authority.
9. Inspection. By assigning intrinsically dan-
gerous activities exclusively to the Authority, the
difficulties of inspection are reduced; If the Au-
thority is the only agency which may lawfully
conduct dangerous activities, then visible opera-
tion by others than the Authority will constitute
an unambiguous danger signal. Insf)ection will
also occur in connection with the licensing func-
tions of the Authority.
10. Freedom of Access. Adequate ingress and
egress for all qualified representatives of the Au-
thority must be assured. Many of the inspection
activities of the Authority should grow out of, and
be incidental to, its other functions. Important
measures of inspection will be associated with the
tight control of raw materials, for this is a key-
stone of the plan. The continuing activities of
l^rospecting, survey, and research in relation to
raw materials will be designed not only to serve
the affirmative development functions of the Au-
thority but also to assure that no surreptitious
operations are conducted in the raw-materials
field by nations or their citizens.
11. Personnel. The personnel of the Author-
ity should be recruited on a basis of proven com-
petence but also so far as possible on an interna-
tional basis.
12. Progress by Stages. A primary step in
the creation of the system of control is the setting
forth, in comprehensive terms, of the functions,
responsibilities, jjowers, and limitations of the Au-
thority. Once a charter for the Authority has
been adopted, the Authority and the system of
control for which it will be responsible will re-
quire time to become fully organized and effective.
The plan of control will, therefore, have to come
into eifect in successive stages. These should be
specifically fixed in the charter or means should
be otherwise set forth in the charter for transitions
from one stage to another, as contemplated in the
1062
DEPARTMENT OF STATE BULLETIN
resolution of the United Nations Assembly which
created this Commission.
13. Disclosures. In the deliberations of the
United Nations Commission on Atomic Energy,
the United States is prepared to make available
the information essential to a reasonable under-
standing of the proposals which it advocates.
Further disclosures must be dependent, in the
interests of all, upon the effective ratification of
the treaty. When the Authority is actually cre-
ated, the United States will join the other nations
in making available the further information es-
sential to that organization for the performance
of its functions. As the successive stages of inter-
national control are reached, the United States
will be prepared to yield, to the extent required by
each stage, national control of activities in this
field to the Authority.
14. International Control. There will be ques-
tions about the extent of control to be allowed to
national bodies, when the Authority is established.
Purely national authorities for control and devel-
opment of atomic energy' should to the extent nec-
essary for the effective operation of the Authority
be subordinate to it. This is neither an endorse-
ment nor a disapiDroval of the creation of national
authorities. The Commission should evolve a
clear demarcation of the scope of duties and re-
sponsibilities of such national authorities.
And now I end. I have submitted an outline
for present discussion. Our consideration will be
broadened by the criticism of the United States
proposals and by the plans of the other nations,
wliich, it is to be hoped, will be submitted at their
early convenience. I and my associates of the
United States Delegation will make available to
each member of this body books and pamphlets,
° Department of State publication 2408 ; for excerpts
from the Acheson-Lilientlial report see Bulletin of Apr.
7, 1946, p. 553. The text of tlie McMahou bill is S. Kept.
1211, 79th Cong.
including the Acheson-Lilienthal report, recently
made by the United States Department of State,
and the McMahon Committee Monograph No. 1
entitled "Essential Information on Atomic
Energy" relating to the McMahon bill recently
passed by the United States Senate, which may
prove of value in assessing the situation.^
All of us are consecrated to making an end of
gloom and hopelessness. It will not be an easy
job. The way is long and thorny, but supremely
worth traveling. All of us want to stand erect,
with our faces to the sun, instead of being forced
to burrow into the earth, like rats.
The pattern of salvation must be worked out by
all for all.
The light at the end of the tunnel is dim, but
our path seems to grow brighter as we actually
begin our journey. We cannot yet light the way
to the end. However, we hope the suggestions of
my Government will be illuminating.
Let us keep in mind the exhortation of Abraham
Lincoln, whose words, uttered at a moment of
shattering national peril, form a complete text for
our deliberation. I quote, paraphrasing slightly :
"We cannot escape history. We of this meet-
ing will be remembered in spite of ourselves. No
personal significance or insignificance can spare
one or another of us. The fiery trial through
which we are passing will light us down in honor
or dishonor to the latest generation.
"We say we are for Peace. The world will not
forget that we say this. We know how to save
Peace. The world knows that we do. We, even
we here, hold the power and have the responsi-
bility.
"We shall nobly save, or meanly lose, the last,
best hope of earth. The way is plain, peaceful,
generous, just — a way which, if followed, the
world will forever applaud."
My thanks for your attention.
JUNE 23, 1946
1063
The Inter-Allied Reparation Agency
Article by JOHN B. HOWARD^
The Paris Agreement on Reparation, of Janu-
ary 14, 1946, as noted in an earlier article on that
Agreement,^ provided for the establishment of
an Inter-Allied Reparation Agency (lARA) at
Brussels as the mechanism for the division of Ger-
man reparation assets among the 18 governments
which are now signatory to the Agreement: the
United States, the United Kingdom, France, Al-
bania, Australia, Belgium, Canada, Denmark,
Egypt, Greece, India, Luxembourg, Norway, New
Zealand, Netherlands, Czechoslovakia, Union of
South Africa, and Yugoslavia. lARA came into
existence on January 14, 1946, the date of the
entry into force of the Paris Agreement.
Each of the member governments of lARA is
represented on the Agency by a delegate and his
staff. Under the terms of the Paris Agreement,
the Delegate of France is the president of the
Agency. Jacques Rueff holds this office. D.
Maynard Phelps served as the first United States
Delegate to lARA until late February 1946.
James W. Angell, United States Representative on
the Allied Commission on Reparation-Germany,
served as Acting United States Delegate during
the first session of the lARA Assembly in Febru-
ary and March. Russell H. Dorr is now the
United States Delegate, serving with the rank of
Minister.
The work of lARA is carried on by both the
national delegations and a Secretariat. The dele-
gates collectively constitute the Assembly. Since
the inception of the Agency, a committee struc-
698870—46 2
ture of the Assembly has been established which
enables the Assembly to carry out its work more
exjDeditiously and which, since the full Assembly
itself is not in continuous session, provides
greater continuity to the work of the Agency.
Standing committees of the Assembly, some of
which are discussed below, have been appointed
on the following subjects included within the
scope of the present work and contemplated fu-
ture work of the Agency : External Assets, Mer-
chant Shipjjing, Inland Water Transport,^ Cur-
rent Production, Industrial Property Rights, Fi-
nance and Accounts, and Credentials. Provision
was also made for the future appointment of ad
hoc committees to deal with such questions of res-
titution as may be referred to the Agency by the
Zone Commanders, with which lARA has au-
thority to deal under the Paris Agreement.
Every Delegate is a member of one or more of the
standing committees.
The Secretariat of lARA consists of a Secretary
General, two Deputy Secretaries General, and a
" Mr. Howard was Special Adviser to James W. Angell,
U. S. Representative on the Allied Commission on Repara
lion-Germany, with the rank of Minister and U. S. Dele-
gate to the Paris Conference on Reparation. Mr. Howard
also acted subsequentl.v as alternate to the U. S. Delegate
to the Inter-Allied Reparation Agency.
= Bulletin of June 16, 1940, p. 1023. Part II of the
Paris Agreement contains the charter of lARA. The
membership of the Agency consists of the signatories of
the Paris Agreement.
' No German inland water transport or current produc-
tion has as yet been declared available for reparation.
1064
DEPARTMENT OF STATE BULLETIN
staff.* The Secretariat, is international in char-
acter and acts for the Agency and not for the indi-
vidual member governments.
The exjienses of the national delegations are paid
by their respective governments. The common ex-
penses of the Agency, such as the salaries of the
Secretariat personnel and the administrative serv-
ices required by the Agency, are borne by all mem-
ber governments in proportion to their reparation
shares.'
II
lARA's primary function is the complex task
of allocating, among the 18 member governments,
German reparation assets varying from steel and
chemical plants to individual machine tools, from
ocean liners to whalers, from Russian reciprocal
deliveries of basic commodities to the monetary
proceeds resulting from the disposition of German
external assets in neutral counti'ies. Such alloca-
tions, with their attendant problems of valuation
and accounting, are to be made by the Agency in
conformity with the reparation shares of the sev-
eral governments and the general principles of
allocation and accounting established by the Paris
Agreement. The procetlures which have been
established for allocations are described below.
In making allocations of reparation assets,
lARA has responsibilities which are broader
than the mere technical implementation of the
Paris Agreement. German industrial equipment,
mercliant ships, and other reparation assets must
* The Secretary General is British. The two Deputy
Secretai-ies General, who are American and French, are,
respectively, in charge of the operational and administra-
tive activities of the Agency. Appointments to these three
offices are made jointly by the American, British, and
French Governments. Tlie personnel of the Secretariat
staff is selected from among the nationals of all the mem-
ber governments. The budget of the Agency for the cal-
endar year 1046, based on the presently estimated work-
load, provides for a maxinuun total of abont 200 persons
on the Secretariat staff.
" For the first two years of the Agency, contributions of
the member governments are in proportion to their per-
centage shares in Category B, as established in the Paris
Agreement, and thereafter in proportion to their per-
centage shares in Category A. This arrangement envisages
that the primary work of the Agency during the first two
years will be the allocation of merchant ships and of
industrial capital equipment under the removals program
and that the greater portion of the work of the Agency
thereafter will involve the allocation of assets in
Category A.
be allocated by lARA among its member coun-
tries in such a manner as to aid in the reconstruc-
tion and replacement of their war-damaged
industries ; in the reconversion of their economies
from war to peacetime production; and in the
economic reorientation required, in view of the
shifts in the structure of world economy arising
out of the war and the industrial disarmament of
Germany, to achieve full peacetime production
and employment in the member countries and in
the world as a whole. The greater the success
with which lARA exercises these responsibilities
in making its allocations, the greater will be the
fulfilment of one of the basic objectives of the
reparation program.
For the purpose of allocation, the Paris Agree-
ment provides that lARA shall be the medium
through which the member governments receive
information concerning, and express their wishes
in regard to, items available as reparation. lARA
is therefore the point of contact between the
member governments of the Agency and the Con-
trol Council for Germany in the over-all allocation
process of which lARA is only a part. In order to
give a better understanding of the procedures
adopted within lARA and the importance of close
liaison with the Control Council for Germany, it is
helpful to outline the over-all allocation process.
Under the Potsdam Agreement, the Control
Council is the agency which, from time to time, de-
clares plants and other industrial capital equip-
ment situated in tlie three western zones of Ger-
many available for reparation. On the basis
of the descriptive information furnished by the
Control Council concerning the plants and equijs-
ment thus declared available, the Soviet Govern-
ment and the memlier governments of lARA ad-
vise the Ccmtrol Council within spe^^ified periods
of time which items they are interested in obtain-
ing as reparation. The Control Council then
makes an allocation of the plants and equipment,
allotting 25 percent by value, on the average, to the
Soviet Government and the balance to the Govern-
ments of the United States, United Kingdom, and
France, that is, in effect, to the countries repre-
sented on lARA. lARA's internal allocation
process then takes place with respect to the items
allocated to its member countries. The Control
Council is notified of the final allocations which
lARA had made and, as the last step in the
process, the allocated plants, having been dis-
JUNE 23, 1946
1065
mantled, crated, and transported, are delivered by
the occupying authorities to the receiving govern-
ments, customarily at designated points on the
German border.
The pi'ocess of allocation internal to lARA be-
gins when informa,tion concerning a group of
reparation assets available for allocation among
the member governments is received by the Agency
and passed on to the delegates." When the re-
quests of the several governments for items which
they are interested in obtaining have been received,
the Secretariat prepares an initial program of
allocation. In this important task the Seci'etariat
consults with the delegates and attempts to recon-
cile competing requests by interested governments
for the same items. In the special case of mer-
chant ships, the initial programs of allocation are
prepared by the Committee on Merchant Shipping,
which is charged under the Paris Agreement with
the task of making recommendations concerning
the determination of war losses of merchant ship-
ping by the several governments and concern-
ing the allocation of German merchant ships avail-
able for distribution as reparation.
The initial programs of allocation are submitted
to the Assembly for approval or modification. The
decisions of the Assembly are taken by majority
vote, each delegate being entitled to one vote re-
gartUess of the size of his government's reparation
share. The Assembly's decisions are final, except
for the right of any delegate whose request for
an item has not been granted to have the alloca-
tion of that item referred to arbitration. A simple
procedure has been established for the selection
of an arbitrator, who will be either (1) a delegate
chosen by the delegates requesting the item under
arbitration, (2) the United States Delegate, if
these delegates cannot agree upon an arbitrator,
or (3) a delegate chosen by the president of the
Agency from among the delegates not requesting
the item in question, if the United States is a claim-
ant for the item. The arbitrator has authority to
make final allocation of the item among the claim-
ant governments or, at his discretion, either to
refer the item to the Secretariat for further study
or to require the Secretariat to resubmit the item
to the Assembly.
The allocation procedure thus established pro-
vides opportunity for mediation, negotiation, and
the settlement of conflicting claims at several
stages — in the Secretariat, in the Assembly, and
in the arbitration procedure. At all stages the
general principles of allocation contained in the
Paris Agreement serve as guides.
The successful carrying out of the reparation
program requires close working relations between
lARA and the Control Council, for which purpose
an lARA liaison office in Berlin has been estab-
lished. It requires also comprehensive descrip-
tions, and facilities for inspection in Gei'many,
of plants available for allocation, in order that
lARA and its member governments may have the
necessary information with which to make intelli-
gent decisions concerning the plants best suited
to the economies of particular countries.
Ill
In addition to its allocation functions, lARA
also has the task of charging to the reparation
share of every member government the value of
all German assets received by that government as
reparation. In the case of industrial capital equip-
ment and merchant ships, the value of individual
items, for the purpose of reparation accounting,
is fixed by authorities other than lARA in accord-
ance with established formulae.'' In the case of
German enemy assets within the jurisdiction of the
member governments, the Paris Agreement defines
the charge to be made against their reparation
accounts.**
In the latter situation, lARA exercises an im-
jjortant influence in furthering the Allied effort
to preclude the return of German external assets to
German ownership or control. Each of the mem-
ber governments is obligated to give the Agency all
information for which it asks as to the value of
such assets within the jurisdiction of that govern-
° In tbe case of industrial equipment tlie Agency re-
ceives information from tlie Control Council for Germany ;
in the case of merchant shii^s, from the American and
British Governments ; in the case of German assets in
neutral countries, from the American, British, and French
Governments.
' Industrial capital equipment is valued by the Control
Council in terms of pre-war prices in Germany, with allow-
ance for depreciation and damage. Merchant ships have
been valued, in terms of pre-war prices in England, with
similar allowances, by the Tripartite Merchant Shiijping
Commission, appointed pursuant to the Potsdam Agree-
ment.
* Such assets are to be charged "net of accrued taxes,
liens, exijenses of administration, other interim charges
against specific items and legitimate contract claims
against the German former owners of such assets'".
1066
DEPARTMENT OF STATE BULLETIN
ment and as to the amounts realized by their
liquidation. lARA has also established a com-
mittee of experts in matters of enemy-property
custodianship, in order to overcome practical dif-
ficulties of law and interpretation. This commit-
tee, which is appointed by and responsible to the
Connnittee on External Assets, is charged under
the Paris Agreement with the function in par-
ticular of guarding against schemes which might
result in effecting fictitious or otlier transactions
designed to favor enemy interests or to reduce im-
properljf the amount of assets which are made
available as reparation. One of the major tasks
immediately confronting the committee of experts
lies in the comiDlicated field of conflicting custodial
claims of two or more Allied governments to the
same enemy asset. The committee is currently
meeting in Brussels to discuss the ijrinciples which
should govei'n the settlement of these claims.
Whereas lARA, during its brief existence, has
not yet made final allocations of a large quantity
of rejjaration assets, it has made substantial prog-
ress in the development of programs for the allo-
cation of German merchant ships and a list of
German industrial j^lants allotted to the IAEA
countries by the Control Council. lARA has, at
the same time, served several other useful purposes.
It has provided a convenient forum in which the
governments which are not occupying powers in
Germany receive information and express their
opinions concerning occupation problems related
to reparation. Thus the three powers occupying
the westein zones of Germany have at the request
of the other member governments of lARA pro-
vided these governments through lARA with in-
formation concerning their activities in the collec-
tion of technical industrial information in Ger-
many and their policies governing the disposition
of this information. It is, for example, the policy
of the United States to throw open for public use
all information of this nature which it collects, so
that the information can be fully utilized in jieace-
time production on an equal footing by both the
nationals of foreign countries and Americans.
The delegates of the non-occupying powers have
also been infonned concerning the present and
foreseeable future economic conditions in Ger-
many which make it improbable that current
production in Germany will be sufficiently great in
the immediate future, over and above what is
needed for domestic consumption and for exports
to pay for imports, so as to constitute an available
source of reparation to the lARA countries. Ques-
tions of this nature, although not within the juris-
diction of lARA for the purpose of taking action,
have been usefully discussed in lARA, and the
opinions expressed by the non-occujjying powers
have been brought to thei attention of the Control
Council by lARA or to the attention of the govern-
ments of the occupjdng powers by their respective
delegates.
An important purpose has also been served by
the discussion, in the Committee on Industrial
Property Rights and in the Assembly, of the effect
of the disposition of German-owned patents on
the usefulness of plants available for allocation
as reparation. The usefulness of such a plant
obviously depends in large measure uj)on the
disposition to be made of the German-owned
patents — both in Germany and abroad — relating
to the industrial processes used by the plant or
to the products of the plant. It would greatly
assist a country to determine whether it should bid
for a particular plant if it knew in advance the
disposition to be made of German-owned patents
relating to that plant or its products. It is the
policy of the United States, provided a suitable
multilateral agreement can be reached in the mat-
ter, to throw open German patents within its juris-
diction, with projDer safeguards, to nationals of
reciprocating countries on the same terms on which
they are made available to United States nationals.
Discussion of this policy and exploration of the
general subject in lARA has been exceedingly
helpful in promoting a mutual understanding of
the technical problems involved. These prelimi-
nary discussions will serve to facilitate the work of
the conference which will meet in the near future
in London, apart from lARA, for tlie purjDose of
framing agreed principles to govern the disposi-
tion of German patents within the several Allied
countries.
Finally, it is at present contemplated that the
delegates of the United States, United ICingdom,
and France to lARA might usefully constitute a
committee, apart from their official positions in
IAEA, for the purpose of handling claims for the
restoration of looted gold in accordance with the
"gold pot" principle of restitution adopted in the
Paris Agreement.
JUNE 23, 1946
1067
The Japanese General Elections
GENERAL
1. Japan's first post-war election was the most
important event in the field of government and
politics and marked an important step in the de-
velojjment of Japanese democracy. Nearly three
fourtlis of the qualified voters went to the polls, a
iiigh percentage considering the time and circum-
stances. Contrary to previous expectations women
turned out in large numbers. The conduct of the
election was in the hands of the Japanese Govern-
ment. Occupation Forces carefully observed cam-
paign and election procedure throughout the coun-
try but refrained scrupulously from any kind of
interference. No disorder was reported on election
day and the number of irregularities was
negligible.
2. No partj secured a majority in the new Diet.
The Liberals emerged as the strongest single party,
followed by the Progressives and the Social Demo-
crats. Small blocs from the Cooperative and Com-
munist Parties with many representatives from
minor groups and independent members, including
38 women, completed the make-up of the Diet. The
bulk of its members had not served in any previous
Diet.
;l. Mounting public jiressure after the election
forced the resignation of the Shidehara Cabinet.
This was followed by an extended period of nego-
tiation among party leaders in an effort to agree
on a new premier and to form some kind of coali-
tion government. These negotiations had not been
completed as the month ended.
4. The constitution continued to be a live politi-
cal issue. It was subjected to extensive critical
discussions by the press and the major parties in
preparation for the meeting of the new Diet, which
will deliberate and act on the proposed govern-
ment draft. A new Japanese-language version of
this draft, written in popular style, was published
by the Government and attracted wide and
favorable comment.
THE GENERAL ELECTION
5. The national election was held on 10 April.
Twenty-six million voter's went to the polls to
choose a new House of Representatives, the lower
house of the Diet. Great significance was at-
tached to the election both in Japan and abroad.
Statement by the Supreme Commander
6. On 23 April the Supreme Commander is-
sued the following statement on the election :
"Pure democracy is inherently a spiritual qual-
ity which voluntarily must spring from the de-
termined will of the people. It thus, if it is to
become firmly rooted, may not be imposed upon a
people by force, trickery or coercion — nor is it a
quality for barter or trade. All men, since the
beginning of time, have had the smoldering desire
to achieve democracy — too few have had the un-
restricted right to express that desire for it — ■
fewer still to achieve.
"It was Lincoln who said 'the people are wiser
than their rulers'. The soundness of this state-
ment is historically evident — and the Japanese
people provide no exception. Given the oppor-
tunity for free expression of their popular will,
they responded wholeheartedly; and, rejecting
leadership dedicated to the political philosophies
of the two extremes, both of the right and of the
left, which experience has shown in practice in-
evitably lead to the same result — regimentation of
the masses and the su23pression of human lib-
erty— they took a wide central course which will
jjermit the evolvement of a balanced program of
government designed best to serve their interests
as a people.
"Democracy has thus demonstrated a healthy
forward advance. It is for the newly elected
representatives of the people in the National Diet,
' Excerpts from General Headquarters, Supreme Com-
mander for the Allied Powers, Summation No. 7, Non-
Military Activities in Japan, for the Month of April 1946,
which was released to the press by the War Deijartment
i>n June 8. These excerpts were taken from "Section 1,
Government and Civil Administration" of "Part II, Politi-
cal," pp. 23-36. General Headquarters, Commander-in-
Chief, United States Army Forces, Pacific, Summation
No. 7, United States Army Militaiy Government Activities
in Korea, for the Month of April 1946, was also released
to the press by the War Department on June S.
1068
ill vindication of the faith of the electorate, now to
consolidate and further that advance by develop-
ing a program of sound and constructive legis-
lation."
Number of Parties and Candidates
7. Competition for seats in the Diet was keen,
with nearly six times as many candidates regis-
tered as there were seats to be filled. On 3 April,
when the registration closed, 2,781 candidates had
entered the race, of whom 5 had died and 79 had
withdrawn, leaving 2,697. Distribution by par-
ties was :
Liberal 482
Progressive 373
Social Democratic 330
Communist 142
Cooperative 93
Small parties 566
Independent 795
Total 2, 781
Eighty-two of the candidates were women.
Ages of candidates ranged from 25 to 87. Can-
didates who had previously served in the Diet
numbered only 147; the predominance of "new
faces" reflected the results of the purge. Small
parties, local and national, numbered 251.
Campaign Activities
8. Campaign activities increased as the election
ajjproached. Parties and candidates appealed to
the voters by means of public meetings, radio
broadcasts, campaign literature, personal solici-
tation and other methods. During the last three
weeks of March in the Tokyo area 2,215 political
meetings were reported with a total attendance
of 169,281. In allocating radio time on both
national and local stations care was exercised to
make a fair distribution among parties and candi-
dates. Little disorder was reported at campaign
meetings.
Campaign Issues
10. All parties in appealing to the voters
stressed the promise of providing for their im-
mediate needs, such as food, clothing, housing,
farm necessities and jobs. As in other countries
they tended to be vague as to the exact methods by
which these promises were to be fulfilled.
All major parties, except the Communist, en-
DEPARTMENT OF STATE BULLETIN
doi-sed the general principles of the proposed
draft constitution and all save the Communists
advocated retention of the Emperor as a national
symbol. The Social Democrats emphasized more
than other parties the necessity of eliminating the
Empei'or's powers and strengthening those of the
elected legislature. The Communists called for
abolition of the Emperor system and establish-
ment by peaceful means of a people's republic with
a iniicameral legislatui'e. The election of pre-
fectural governors by the people was a poj^ular
issue. It was specifically promised by the Liberal
and Cooperative Parties and supported by many
small ])arties.
11. In every election district major emphasis in
the campaign was placed on the problem of food.
Virtually every candidate promised to raise the
rice ration to three go (a go is equivalent to .38
pints) per person. Few parties explained how
they expected to accomplish this, except by the
importation of food.
The system of compulsory rice deliveries was
criticized by all parties. The Communists flatly
opposed compidsory collections. Both they and
the Social Democrats advocated control of rice
colleciions by popular committees, though dif-
fering as to method. Other parties echoed this
more faintly by calling for "rationalization" or
"democratization" of the delivery system.
12. All parties called for a curb on inflation and
violently criticized the Government's ineffectual
efforts to solve this problem. None offered any
comprehensive program, with the possible excep-
tion of the Cooperative Party which would handle
all distribution through cooperative organs.
13. Taxation of war profits was endorsed by
the Progressives, Liberals and Cooperatives; the
Communists would confiscate them entirely. Some
kind of general property tax was favored by the
Progressives, Liberals, Social Democrats and
Communists. Payment of compensation to war
industries was in general opposed by all parties.
Most major parties proposed reduction or post-
ponement of the payment of interest and principal
on the war debt. The Social Democrats would
cancel payments to large holders of war bonds.
All parties called for increased production, speedy
reconversion and reconstruction but gave few
precise indications of the methods they proposed
to follow.
14. On broader issues of economic policy for
JUNE 23, 1946
1069
post-war Japan, campaign statements gave only
general indications of party attitudes. The Pro-
gressives and Liberals clearly desired restoration
of free enterprise so far as practicable under ex-
isting conditions and advocated certain measures
to aid business men. The Social Democrats put
forward a moderate socialist program including
nationalization of banks and key industries and a
planned economy. They also advocated shorter
hours, a mininuun wage and other benefits to
wage workers, as well as assistance to small-scale
business.
The CouHuunist program was essentially similar
to that of the Social Democrats, though it placed
more stress on "soaking the rich." The Coopera-
tives based their hopes on a thoroughgoing appli-
cation of the principle of cooperative enterprise.
Both Social Democrats and Communists favored
jjarticipation of the workers in management, an-
other practical question currently in the limelight.
Nearly all parties were on recoi'd as favoring some
form of social insurance.
15. All party platforms mentioned agrarian re-
form. The Progressives and Liberals favored an
increase in the number of small landowners and
payment of rents in cash or in kind. The Social
Democrats proposed government purchase of the
lands of absentee owners for resale to their present
cultivators. The Communists advocated confisca-
tion of idle and absentee-owned land and its dis-
tribution to working farmers.
Observation of Election
20. To ensure a free and fair election, the cam-
paign and the election itself were brought under
systematic observation by field forces under the
staff supervision of SCAP. All available person-
nel were mobilized for this purpose. The conduct
of the election was left in the hands of the Japa-
nese Government and Occupation Forces were or-
dered to refrain scrupulously from political inter-
ference. Their duty was merely to report on irreg-
ularities observed. An account of the prepara-
tions for carrying out this task, including orienta-
tion meetings and the detailed instructions issued
to the field forces, was carried in the Summation
for March. -
Election Maps
22. The accompanying maps ^ . . . illustrate
the extent of geographic coverage. One indicates
the cities, towns and villages in Hokkaido which
were visted to observe the election. The towns
circled in red * are those where one or more ob-
servations were made on 10 April. This is typical
of coverage in all prefectures. The second map
shows the town of Sapporo, with polling places
designated in red. In this instance each polling
place was visited at least twice on election day.
This is typical of coverage in cities and towns.
Observation During the Election
23. During the campaign each Military Govern-
ment comj)an}' and tactical unit was chai'ged with
definite responsibilities. In every prefecture an
initial contact was made with the prefectural gov-
ernor, who was advised that the Occupation Forces
would observe and report on the election, maintain
an attitude of impartiality and expect the Japa-
nese Government and officials to bear the I'esponsi-
bility of conducting a free and untrammeled elec-
tion. Throughout the country newspapers report-
ed that Military Government officers, aided by tac-
tical troops, would observe the elections to help
safeguard the right of free expression by the Japa-
nese people.
Care was taken to publicize tiie fact that candi-
dates cleared by the Japanese Government as free
from any taint of militant nationalism under the
Purge Directive of 4 January did not have SCAP
sanction and support, as some had claimed. On
the contrary, it was noted that the records of all
candidates would be subject to SCAP review.
In practically all prefectures the same informa-
tion was passed on to the prefectural chief of po-
lice. In most prefectures this information was
disseminated through Japanese channels direct
from the governor or the police chief to all mayors,
village headmen and subchiefs of police.
Military Government companies made periodic
checks to see that campaign expenditures were re-
ported weekly as provided by law and that re-
■ Not printed in the BxnxETiN.
' See pp. 1070 and 1071.
* Tlie following cities were encircled in red in the original
map : Wakkanai, Teshio, Haboro, Nayoro, Shibetsu,
Engarii, Rubeshibe, Bihoro, Abashiri, Neniuro, Rumoi,
Mashike, Asahigawa, Niimata, Biei, Takikawa, Sunagawa,
Furano, Ponibetsu, Akkeshi, Kushiro, Tobetsu, Shimizu,
Ikeda, Yubari, Memnro, Obihiro, Ebetsu, Otaru, Yoichi,
Furubira, Abira, Iwanai, Kutchian, Tomakomai, Urakawa,
Abuta, Oshamambe, Date, Muroran, Yalaimo, Setana, Mori,
Kaniiiso, Esa.shi, Hakodate.
1070
DEPARTMENT OF STATE BULLETIN
ported expenditures did not exceed the legal
maximvnn, which varied according to the popula-
tion of the district but approximated on the aver-
age ¥20,000 per candidate.
The Occupation Forces were also charged with
the responsibility of receiving and passing on to
the prefectural governors all complaints of viola-
tions of the election law. Any complaints re-
ceived were investigated generally by the police
at the direction of the governor. The number of
violations reported prior to election day was negli-
gible.
Activities on Election Day
24. On election day the activity of the Occupa-
tion Forces reached its peak. About 12,000 of
the 21,089 polling places in Japan were visited.
Coverage of polling places averaged about 90 per-
cent in cities and 40 percent in rural areas. The
rural figure is lower because of the poor condition
of roads and limitations of personnel. In some
prefectures close to 100 percent coverage was
achieved. Many polling places were covered "two
or three times.
These visits were in most cases not perfunctory
but included careful observation of the arrange-
ments and procedures followed as well as contact
with the election officials. Observers checked to
make sure that the names of all candidates were
posted in front of the polling place as required by
law and that election posters were not displayed
too near the polls. They also noted the procedure
Election Observations by Occupation Forces Representatives, Apr, 10, 1946 (GHQ-SCAP
no. 1, part 1)
HOKKAIDO
N
NEMURO
• TOWN.CITV OR VILLAGE IN WHICH ONE
OR MORE OBSERVATIONS WERE MADE ON
10 APRIL THIS IS TYPICAL OF COVER-
AGE IN ALL PREFECTURES
JUNE 23, 1946
1071
ElectionObservationsby Occupation Forces Representatives, Apr. 10, 1946 (GHQ-SCAP
no. 1, part 2)
followed from the time the voter entered the poll-
ing place until he deposited his ballot in the ballot
box and left the polls.
Methods of election officials in identifying voters
were noted. The actions of voters and officials
within the polling place were scrutinized to see
that secrecy of the ballot was not violated. Note
was taken of whether there appeared to be any con-
gregating place for large numbers of voters after
leaving the polls.
After the balloting Occupation Forces checked
to ascertain whether adequate provision had been
made by the Japanese authorities to safeguard the
ballots between the closing of the polls and the
counting of votes. There were no reported in-
stances of attempts to tamper with the ballot
boxes. During the counting Occupation Forces
made periodic but unscheduled inspections.
698870—46 3
Conduct of the Election
25. The consensus of the Occupation Forces who
observed the election was as follows :
Tlie arrangements by the Japanese officials for
handling voters in the polling places were worked
out in great detail and remarkably efficient. The
Japanese jjeople were orderly at the polls; there
were no recorded instances of misconduct or dis-
order. Women, voting for the first time, appeared
to have no difficulty with the voting procedure.
The police were conspicuous by their absence.
There were no reports of interference by police in
any prefecture, nor of intimidation of voters at or
near the polls. This was in sharp contrast to the
police control formerly exercised in Japanese elec-
tions. No charges of indirect pressure on voters by
employers, social leaders, cultural or economic
agencies have been brought to SCAP's attention
by any parties or defeated candidates.
1072
Observei's reported that the Japanese system of
registration was iinsatisfactorv. Much time was
involved in checking on voters who had niishaid
their identification cards, owing to the hick of sys-
tem in keeping records. Some complaints were
heard of the lack of a printed ballot, making it
necessary for voters to write in the names of the
candidates for whom they were voting. This prac-
tice is traditional in Japan and is defended on the
ground that it tends to prevent corrupt practices
and serves as a literacy test.
Omissions from Electoral Lists
26. Charges appeared in the press that large
numbers of voters had been deprived of their votes
through failure of authorities to place their names
on the official registration lists. These charges
were immediately investigated by the Home Min-
istry. Preliminary reports indicated that less than
one percent of the electorate was disfranchised in
this manner. In most cases omissions were due to
voters' having changed their residences since last
November ; some were chie to clerical errors. The
greatest number of complaints came from cities
such as Aomori and Sendai where there was heavy
displacement of population owing to destruction
by bombing. The omissions were too trivial to
affect the election results.
Participation of Voters in the Election
27. Contrary to the expectations of most polit-
ical observers, the turnout was heavy on election
day. According to final official figures 72.1 percent
of the registered voters cast their ballots. Moi-e
than three fourths of the men and two thirds of the
women voted, as shown below :
No. Registered
Meu 16,278,926
Women 20, 5.57, 564
Percent
No. Voting Toting
12, 778, 242 78. .5
13, 780, 369 67. 1
Total 36,836,490
26, 558, 611
72.1
When the pressing problems of daily livelihood,
the great difficulties of transportation and the ad-
dition of 13,000,000 new women voters to the elec-
torate are considered, the above figures compare
favorably with those of previous Japanese elec-
tions, given below :
1928
Percent
Voting
SO. 4
83.3
81. 7
1036
Percent
Voting
78. 7
1930
1937
73 3
1932
1942
83.2
DEPARTMENT OF STATE BULLETIN
The turnout on election day forms a striking
contrast with pre-election impressions of the apa-
thy of the electorate, especially as regards women.
Many competent observers had predicted that few
women would go to the jjolls.
The number who voted would indicate a high
degree of interest on the part of the electorate.
This was stimulated by the press campaign and
by the Premier's plea to citizens to vote, but was.
not due to coercion. The large number of men and
women who registered their will at the polls stands
as clear evidence of a high degree of participation
by the Japanese people in the democratic pi'ocess.
Composition of the New Diet
28. The strength of the various jDarties in the
new Diet the day after the election was, according
to official figures, as follows. Slight inaccuracies
are possible, owing to last-minute pre-election
changes in party affiliation.
I.iberal 140
Progressive 93
Social Demoeiatic 92
Cooperative 14
Coininunist 5
Minor jjartie.s 38
Independent 82
Total 464
The total number of Diet members is 466. In
two districts no candidate received enough votes
for election under the plural voting system and new
elections were necessary.
In addition to the five major parties, 28 minor
parties elected candidates to the Diet.
The composition of the new Diet is in sharp con-
trast to that of its predecessor, which contained
274 Progressives, 4G Liberals, 17 Socialists and 72
independents, with no representation of the Co-
operative and Communist Parties.
No less than 375 members of the new Diet have
had no previous parliamentary experience.
Thirty-eight served in the last Diet and 51 in
earlier Diets.
A number of independent members joined major
parties after the election. As changes in party
affiliation may occur frequently, the above figures
do not necessarily indicate the strength of the
parties in the Diet at any given time.
The new Diet contains 38 women, nearly half of
those who ran for election. They represent var-
ious parties, as follows: Social Democrats, 8; Pro-
gressives, 6 ; Liberals, 5 ; Communists, 1 ; New
JUNE 23, 1946
Japan "Women's Party, 1; other minor parties, 7;
and independents, 10.
29. According to an analysis by Kyodo news
service the occupational distribution of the new
Diet is as follows :
Coinpaiiy directoi-s 82
Law.vers .52
Fanners 49
No regular occupation 42
Organization leaders 36
Educators 32
Company employees 31
Authors 22
Government and public offlcials 21
Traders 19
Industrialists 15
Physicians 13
Religionists 11
Dealers in marine products 10
•Others 9
Politicians 6
Transportation agents 6
Jourualists 2
Building contractors 2
Mine operators 2
Factory employees 1
Technicians 1
Total 464
Fifty percent of the legislators are university
graduates. Former Japanese Diet members were
largely lawyers, big business representatives and
profes-^ional politicians. The presence of only six
professional '"Politicians" in the new Diet is espe-
cially noteworthy.
Significance of Election
30. Japan has had parliamentary government
in form for many years and her citizens are already
familiar with the mechanics of balloting and of
party organization. During the 1920's an ap-
proach was being made toward a true parliamen-
tary system with the executive responsible to the
legislature, a trend reversed when the militarists
gained control during the 1930's. Throughout
Japan's modern history the popular urge toward
development of genuine democracy has been con-
sistently blocked by the unjaelding opposition of
the dominant military-economic clique which re-
pressed popular aspirations through the police
state.
These checks on Japan's natural political evo-
lution have now been largely removed. The mili-
tary has disappeared as a political force. As a
1073
result of the Purge Directive of 4 Januaiy persons
with militaristic or ultra -nationalistic records have
been largely eliminated from public office and po-
litical life and are ineligible for Diet membership.
Restrictions on freedom of speech, press, organiza-
tion and assembly were canceled in consequence of
SCAP directives. The secret police was abolished
and political prisoners freed. Woman suflFrage
was granted, the voting age was lowered and a new
election law was adopted designed to ensure the
freest possible expression of the people's will.
31. The results of these earlier occupation meas-
ures were reflected in the election of 10 April.
The most significant feature of the election was ex-
pressed by Mamichi on 4 April : ''The outstanding
thing about the coming elections is that there has
been no government interference so far, which was
the usual thing in the past." Shortly after the
election Asahi observed : "In the latest elections no
interference was offered by the government officials
by the abuse of their power. This is the first time
interference of this sort was not made in this
country."
For the first time in decades Japan had a free,
fair and honest election. Careful observation
and investigation failed to reveal any substantial
police pressure, corruption, intimidation or ir-
regularities. No external barriers prevented a
free expression of the people's choice. Public in-
terest in the election was remarkably high in view
of prevailing conditions. The results reflected
the popular will in so far as its political expres-
sion has been consciously formulated.
32. Interpretation of the election results re-
quires considerable caution. Some observers saw
a tendency to vote for individuals rather than for
parties or programs. It seems clear that the pres-
ent temper of the electorate does not favor ex-
tremes either of the right or of the left. Japan
wants neither revolution nor reaction, but orderly
progress.
Within this "wide central course" there is still
broad scope for the exercise of democratic choices
among possibl"- ends and means. In general terms
a basic issue may be discerned between the older
political forces, chiefly represented by the Pro-
gressive and Liberal Parties, and the newer ele-
ments, represented by the Socialists and Com-
munists. All parties recognized the need for
change. The Progressives and Liberals would
(ContiiiKfd on page 1090)
International Organizations and Conferences
Calendar of Meetings
Council of Foreign Ministers :
Meeting of Foreign Ministers
Meeting of Deputies
Far Eastern Commission
PICAO :
European and Mediterranean Air Route Services
Conference
Meeting of the First Annual Assembly
Allied-Swedish Negotiations for German External Assets
Inter- American Conference of Experts on Copyright
ILO: 28th (Maritime) Session of the International Labor
Conference
Proposed International Emergency Food Council
The United Nations :
Security Council
Military Staff Committee
Special Committee on Refugees and Displaced Persons
Economic and Social Council
Commission on Atomic Energy
International Health Conference
General Assembly : Second Part of First Session
Paris
June 15
Paris
May 27— temporarily adjourned
Washington
February 26
Paris
April 24-June 15
Montreal
aiay 21-June 15
Washington
May 31
Washington
June 1
Seattle
June 6-29
Washington
June 20
New York
March 25
New York
March 25
London
April 8
New York
May 25
New York
June 14
New York
June 19
New York
September 3
The dates in the calendar are as of June 16.
Activities and Developments
Council of Foreign Ministers. On June 13 the
Secretary of State accompanied by Senator Con-
nally, Senator Vandenberg, and the Counselor of
the Department of State, Ben Cohen, left Wash-
ington by plane to attend the meeting of the
Council of Foreign Ministers in Paris.
Far Eastern Commission
/. Interim Reparations Removals: Iron and
Steel Industry; Thermal Electric Power; Soda
Ash, Chlorine, and Caustic Soda Industry ^
1. Iron and Steel Imlusti'y
(Definition : Plants and establishments pri-
marily engaged in the production of pig iron or
steel ingot.)
a. That portion of Japan's capacity for tlie \)vq-
' Approved by Far Eastern Commission on June 12, 1946.
duction of steel ingot that is in excess of 3.5 million
metric tons annually should be made available im-
mediatelj' for claim. In selecting plants for re-
moval first consideration should be given to elec-
tric furnace capacity, which should be reduced to
an aggregate of 100,000 metric tons annual capac-
itj^ made up as far as possible of furnaces of indi-
vidual charge capacity of liA tons or less. No
Bessemer steel capacity should be removed.
i. That portion of Japan's capacity for the pro-
duction of pig iron that is in excess of 2.0 million
metric tons annually should be made available
immediately for claim.
Plants and establishments engaged in the proc-
ess of rolling will be treated in a supplementai-y
paper.
1074
JUNE 23, 1946
1075
2. Thermal Electric Power
(Definition: Plants and establishments pri-
marily engaged in the production of electric
energy through the use of fuel (coal) as the basic
energy source.)
a. That i^ortion of Japan's thermal electric gen-
erating capacity that is in excess of her require-
ments after the reduction of her industrial capac-
ity in accordance with the remainder of this pro-
gram (tentatively estimated at capacity in excess
of 2.1 million kw.) should be made available for
claim subject to tlie following limitations :
(1) In undertaking removals giving effect to
this program, the Supi'eme Commander for the
Allied Powers should give special attention to the
interrelation of hydro- and thermal-electric capac-
ities, and should retain facilities, including stand-
by equipment, necessary to ensure at all seasons the
distribution of sufficient electric power to satisfy
demands as they may be manifested in each supply
area after completion of the other phases of the
interim program.
(2) If, in the course of effecting these removals,
the Supreme Commander for the Allied Powers
should find that thermal electric capacity i-educed
to 2.1 million kw. would not be adequate to meet
Japan's requirements as modified by the reduced
industrial demand consequent upon completion of
the other phases of the interim program, he should
so advise the Far Eastern Commission and should
state to what total capacity Japan's thermal elec-
tric generating plants can be reduced without vio-
lating the considerations set out in (1) above.
3. Soda Ash, Chlorine, and Caustic Soda
Industry
(Definition: Plants and establishments pri-
marily engaged in the production of soda ash (so-
dium carbonate), chlorine, and caustic soda
(sodium hydroxide).)
a. That portion of Japan's capacity for the pro-
duction of chlorine and caustic soda in electrolytic
plants which is in excess of about 75,000 metric
tons of chlorine and about 82,500 metric tons of
caustic soda, should be made available for claim.
h. That portion of Japan's capacity for the pro-
duction of soda ash that is in excess of 630,000
metric tons, should be made available for claim.
Removal of this excess soda ash capacity should be
accomi^lished by seizure of one large modern soda
ash plant, together with its integrated facilities
for conversion of soda ash to caustic soda.
The Combined Food Board, On June 3 the
member governments of the Combined Food
Board — the United States, the United Kingdom,
and Canada — acted on recommendations for the
establishment of an International Emergency
Food Council by addressing invitations to prospec-
tive members of the new organization — namely,
Argentina, Australia, Belgium, Brazil, Chile,
China, Cuba, Denmark, France, Greece, India, the
Netherlands, New Zealand, Norway, Siam, Tur-
key, the Union of South Africa, and the Union of
Soviet Socialist Republics.
Recommendations for the establishment of an
Intel-national Emergency Food Council to replace
the existing Combined Food Board were approved
at the Special Meeting on Urgent Food Problems
convened by the Director General of the Food and
Agriculture Organization and held in Washington
from May 20 to May 27.
The text of the letter of invitation, addressed to
each Government'' s respective ambassador, minis-
ter, or representative to the United States, follows:
Proposals for the establishment of an Interna-
tional Emergency Food Council to replace the ex-
isting Combined Food Board were considered at a
Special Meeting on Urgent Food Problems con-
vened by the Director General of the Food and
Agriculture Organization and held in Washington,
D. C, from May 20 to May 27. As a result of dis-
cussions at that meeting, the attached recommen-
dations were approved and submitted to all the
go^■ernments concerned. It is part of these rec-
ommendations that the Governments of the United
States, the United Kingdom and Canada arrange
without delay for a meeting of the Combined Food
Board. Accordingly, I am now writing on behalf
of the Combined Food Board to invite you to ap-
point a representative to attend a meeting to be
held on Thursday, June 20, 1946, at 2 p.m. in
Washington, D.C. You will be notified shortly of
the building and room in which the meeting will
be held.
The purpose of the meeting is to enable the gov-
ernments concerned, through their representatives,
to state whether they are ready to accept the at-
tached recommendations and thus to become mem-
bers of the new International Emergency Food
Council. I should therefore be glad if your repre-
sentative could be authorized to state your Govern-
ment's official position in regard to the proposal.
If the recommendations are generally accepted, the
1076
DEPARTMENT OF STATE BULLETIN
meeting will proceed forthwith to establish the
International Emergency Food Covmcil.
It is proposed that if the International Emer-
gency Food Council is established at the meeting
on June 20 the Council should immediately there-
after hold its first session and consider a number of
items of initial business. A draft agenda for the
first session is attached for your information and
comment.^
I should be grateful if you would advise me as
soon as possible whether your Government will be
able to be represented at the proposed meeting and
the name of your authorized representative.
Identical letters are being addressed to the diplo-
matic representatives in Washington of the Gov-
ernments of Argentina, Australia, Belgium, Bra-
zil, Chile, China, Cuba, Denmark, France, Greece,
India, Netherlands, New Zealand, Norway, Siam,
Turkey, Union of South Africa, and the U. S. S. K.
Final List of Delegates and Advisers to the
United Nations Commission To Deal With the
Problems Raised by the Discovery of Atomic
Energy
Australia:
Representative : Dr. H. V. Evatt
Scientific Advisers: Dr. M. L. E. Oliphant, Dr. G. H.
Briggs
Brazil:
Representative: Capt. Alv;ui> .VlhtMtn da Motta Silva
(Brazilian Navy)
Deputy Representative : Ma.i. Orlando Rangel (Brazilian
Array)
Canada:
Representative : Gen. A. G. L. JkNaugliton
China:
Representative: Dr. Quo Tai-chi
Technical Adviser : Dr. Hsioli-Reu Wei
Ef/yi>t:
Representative : Dr. Hafez Aflfi Pasha
Adviser: Ool. Mohamed Bey Abdel Halim Khalifa (Air
Attache to the Royal Egyjjtian Legation, Washing-
ton)
Alternate Adviser: Col. Hassan Bey Ragab (Military
Attach^ to the Egyptian Legation, Washington)
France:
Representative: Jlr. Alexandre Parodi
Assistants: Mr. Frederic Joliot Curie, High Comuiis-
sioner for Atomic Energy ; Prof. Pierre Auger
' Not printed.
■ Released to the press June 13.
Medfico:
Delegate : Mr. Manuel Sandoval Vallarta
Advisers : Gen. Cristobal Guzman Cardenas ; Mr. Xabor
Carrillo; Dr. Carlos Graef Hernandez
Netlierlands:
Permanent Representative : Dr. E. N. van Kleffeus
Alternate Delegate and Adviser on Questions Related
to Atomic Energy : Prof. H. A. Kramers
Poland:
Delegate : Prof. Stefan Pienkowski
Alternate : Prof. A. Soltan
Union of 8oi-iet Socialist Republics:
Reijresentative ; Mr. A. Gromyko
Advisers : Prof. D. V. Skobeltsin ; Prof. S. P. Alexaiidrov
United Kingdom:
Permanent Representative : Sir Alexander Cadogau
Scientific Adviser and Alternate Rejiresentative: Prof.
Sir James Chadwick, P.R.S.
United States:
Representative : Mr. Bernard M. Baruch
Associates : Mr. John M. Hancock ; Mr. Ferdinand Eber-
stadt ; Mr. Fred Searls, Jr. ; Mr. Herbert S. Swope ;
Dr. Richard C. Tolman ; Mr. Thomas F. Farrell
Mr. John Parks Davi.s. Executive Oflifer
International Health Conference.- The Depart-
ment of State announced on June 13 the composi-
tion of tlie United States Delegation which will
participate in the International Health Confer-
ence to be convened in New York, N. Y., on June
19, 1946. The purpose of this Conference, which
will be held under the auspices of the Economic
and Social Council of the United Nations, will be
to establish an international health organization.
Dr. Thomas Parran, Surgeon General of the
United States Public Health Service, has been
designated Chairman of the United States Dele-
gation. The complete composition of the Dele-
gation is as follows :
Chairman:
Thomas Parran, M.D., Surgeon General, United States
Public Health Service
Vice Chairman:
Martha M. Eliot, M.D.. Associate Director, Children's
Bureau, Department of Labor
Delegates:
Prank G. Boudreau, M.D.. Director, Milbank Memorial
Fund
JU1\E 23, 1946
1077
Edwin B. Fred, President, University of Wisconsin ;
Member, National Advisory Healtti Council
•Tames E. Paullin, ai.D., Past President, American Medi-
cal Association
Durward V. Sandifer, Chief, Division of International
Organization Affairs, Department of State
Secretarti General:
Otis E. MuUilven, Chief, Division of International Labor,
Social, and Health Affairs, Department of State
Chief Technical Adviser:
Louis L. Williams, Jr., M.D., Medical Director, United
States Public Health Service ; Chief, Health Branch,
Division of International Labor, Social, and Health
Affairs, Department of State
Ad risers:
Ward P. Allen, Regional Problems Branch, Division of
International Organization Affairs, Department of
State
Howard B. Caldervrood, Office of International Healtli
Relations, United States Public Health Service
James A. Doull, M.D., Medical Director, United States
Public Health Service; Director, Office of Interna-
tional Health Relations, United States Public Health
Service
Robert P. Fisehelis, Pharm.D., Executive Secretary,
American Pharmaceutical Association
H. Van Zile Hyde. M.D., Senior Surgeon, United States
Public Health Service; Assistant Chief, Healtli
Branch, Division of International Labor, Social, and
Health Affairs, Department of State
George Lull, M.D., Maj. Gen. U.S.A. (Ret), General
Manager, American Medical Association
John Maktos, Division of International Organization
Affairs, Department of State
Marcia Maylott, Division of luternational Organization
Affairs, Department of State
Alvin Roseman, Acting Chief, International Activities
Branch, Biu-eau of the Budget
Michael B. Shimkin, M.D., Surgeon, United States Pub-
lic Healtli Service ; Assistant Director, Office of
International Health Relations, United States Pub-
lic Health Service
Mary E. Switzer, Assistant to the Administrator, Federal
Security Agency
Elraira B. Wickenden, Executive Seci'etary, National
Nursing Council
Abel Wolman, Professor, Sanitary Engineering, Joluis
Hopkins School of Hygiene and Public Health ;
Consultant, United States Public Healtli Service ;
Chairman, Board, American Public Health Asso-
ciation
Executive Secretarij:
Richard S. Wheeler, Divisional Assistant, Division of
International Conferences, Department of State
Special Assistant to the Chairman:
Jean Henderson, Chief, Office of Health Information,
United States Public Health Service
Special Assistatit to the Secretary General:
Prances M. Wilson, Division of International Labor,
Social, and Health Affairs, Deiaartnieiit of State
ddminislrati-ve Assistant:
Dorothy H. King, Division of International Conferences,
Department of State
Dr. Parran, Chairman of the Delegation, served
as a member of the Technical Preparatory Com-
mittee which met at Paris in March of this year
and prepared a draft constitution for the organiza-
tion which will be considered by the Conference.
All members of the United Nations have been in-
vited to participate in this meeting. In addition,
the governments of the following countries have
been invited to send observers to the Conference:
Afglianistan, AlbaJiia, Austria, Bulgaria, Eire,
Finland, Hungary, Iceland, Italy, Portugal,
Rumania, Siam, Sweden, Switzerland, Trans-
Jordan, and Yemen. The Allied Control Commis-
sions in Germany, Japan, and Korea have been
invited to send observers. Official international
agencies interested in health and related fields
have also been invited to designate representatives
to attend as observers. These agencies are : Inter-
national Labor Organization, United Nations
Food and Agriculture Organization, United Na-
tions Relief and Rehabilitation Administration,
United Nations Educational, Scientific and Cul-
tural Organization. Provisional International
Civil Aviation Organization, Office -International
d'Hygiene Publique, Pan American Sanitary
Bureau, League of Red Cross Societies, Rockefeller
Foundation, World Federation of Trade Unions.
The sessions of the Conference will be held in
Hunter College, the headquarters of the United
Nations. Meetings of the United States Delega-
tion will be held in the Hotel Astor, New York
City.
Resignation of Randolph Paul
In a letter- dated Jime 12, 19-16 the President
accepted the resignation of Randolph Paul as Spe-
cial Assistant to conduct negotiations with the
Swiss Government on the subject of German exter-
nal assets in Switzerland. For texts of the letters
exchanged between the President and Mr. Paul
see White House press release of June 12.
1078
DEPARTMENT OF STATE BULLETIN
Negotiations on Legal Arrangements
for United Nations Headquarters
[Released to the press June 11]
Negotiations between the Department of State
and the United Nations with respect to the legal
arrangements for the establislnnent of the perma-
nent headquarters of the United Nations in this
country have now been started in Washington,
the Def)artment announced on June 11. The nego-
tiations are confined to legal matters and do not
concern the question of where the permanent head-
quarters are to be located. This will not be decided
until the September meeting of the General Assem-
bh' of the United Nations, which will be held in
the New York State Building at the former
World's Fair grounds in New York City. For
other i^urposes, including Security Council meet-
ings and offices for the Secretariat, the United
Nations has been using the Hunter College campus
in the Bronx, New York, but will move this sum-
mer to the Sperrj' Gyroscope Plant at Lake Suc-
cess, Long Island, New York.
The Charter of the United Nations provides
that the organization and its officials and the rep-
resentatives of the member nations shall enjoy in
the territory of each of its members such privileges
and immunities as may be necessary for the fulfil-
ment of its purposes and the exercise of tlieir
functions. The Charter states that the General
Assembly may make specific recommendations in
this respect. A "general convention" which was
approved by the General Assembly last January
defines the general privileges and immunities
which are to be afforded by each of the member
nations. At the same time, the General Assembly
submitted to the Secretary-General in draft form
as a basis for discussions a proposed special con-
vention between the United Nations and the
United States dealing with the particular legal
questions which would be involved in the location
of the headquarters in this country. It is this draft
which is the basis for the current negotiations.
To assist the Secretary-General in the negotia-
tions, the General Assembly appointed a commit-
tee consisting of the representatives of ten member
nations. This committee is now taking part in the
negotiations with the United States Government.
The Secretary-General of the United Nations is
being represented in the negotiations by Ivan
Kerno, Assistant Secretary-General for Legal Af-
fairs. He is assisted by Abraham H. Feller, Gen-
eral Counsel and Director of the Legal Department
of the United Nations. The Negotiating Com-
mittee includes the representatives of ten member
nations as follows: Hugh McKinnon-Wood,
United Kingdom, Chairman of the Committee;
A. H. Body, Australia; Joseph Nisot, Belgium;
Carlos Salamanca, Bolivia; Shuhsi Hsu, China;
Guillermo Belt, Cuba; Mahmoud Bey Fawzi,
Egypt ; Jean Cahen-Salvador, France ; Alexander
W. Kudzinski, Poland ; Valentin Tepliakov, Union
of Soviet Socialist Republics. Marc Schreiber,
Legal xYdviser in the United Nations Legal De-
partment, is acting as secretary of the United
Nations delegation.
Charles Fahy, who has been designated to be-
come Legal Adviser of the State Department, is in
charge of the negotiations for the United States
in collaboration M-ith the Office of Special Political
Affairs of the Department, under the directorship
of Alger Hiss. Officials of the Department of
Justice, including John W. Andrews, Chief of the
Federal-State Relations Section, are also partici-
pating in the discussions. Assistant Attorney
General Arthur F. Brown of Connecticut and
Orrin Judd, special counsel to the Governor of
New York, are likewise attending the meetings.
Addresses and Statements of the Week
Under Secretary Aclieson
Bernard M. Baruch
XJ. S. Representative to the
Atomic Energy Commission
The President 1
The Secretary of State/
On tlie subject of tlie democratic system Delivered before the graduating class of
and foreign affairs. Text issued as
press release 397 of June 10 ; not
printed
Pix)posals for an International Atomic
Development Authority. Printed In
this issue
Statements on the Cabinet Committee on
Palestine and Related Problems.
Printed in this issue
Bryn Mawr College at Bryn Mawr,
Pa., on June 11
Made before the opening session of the
United Nations Atomic Energy Com-
mission in New York on June 14
Alade on June 11
International Convention on Civil Aviation
THE PRESIDENT'S MESSAGE TO THE SENATE
[Released to tlie press by the White House June 11]
To the Senate of the United States:
In the autumn of 1944, at the invitation of the
United States, an International Civil Aviation
Conference was held in Chicago. The main pur-
pose and chief result of this Conference was the
preparation of an important treaty, the Interna-
tional Convention on Civil Aviation. On March
12, 1945, President Roosevelt referred this Con-
vention to the Senate, with a request for considera-
tion and ratification. It has now become a matter
of urgency to this nation, and to many other na-
tions, tliat the Senate act upon the Convention.
The Convention has two major elements : (1) It
restates and codifies the accepted principles of
international law pertaining to air navigation ; (2)
it provides for the establishment of an Interna-
tional Civil Aviation Organization.
The parts of the Convention dealing with the
principles of international air law are self-ex-
planatory, and I feel sure that the Senate will
recognize the value of the codification.
Similarly, I believe the proposed International
Civil Aviation Organization will recommend it-
self to the Senate. The most important task of
this Organization, under the terms of tlie Conven-
tion, will be the promotion of safety of life in
the air. In this connection, it will develop inter-
national standards for airworthiness of aircraft,
for competence of aviation personnel, and for
operating practices and facilities on the interna-
tional air routes. The Organization will also study
the economic problems of intei'national air trans-
port; and in certain instances it may be used as an
instrument through which such international
aviation facilities and services as aii'ports, radio
aids, and weather information could be interna-
tionally financed.
Tlie Organization will come into existence on a
permanent basis when the Convention has been
ratified by 26 Governments. It will have its liead-
qiiarters in Montreal, Canada. Meanwhile, as is
accejjted practice in such undertakings, and in ac-
cordance witli an Interim Agi'eement, the Organi-
zation has been temporarily established on a
provisional basis.
The Provisional Organization is concerned with
the same activities which will engage the perma-
nent Organization, but it laclcs full powers and its
life is limited. It is increasingly apparent that the
establishment of the permanent Organization can-
not be indefinitely delayed without damage to
interests vital to this and other countries. As mat-
ters stand, the safety regulations cannot be finished
or made fully effective, and the economic activities
remain merely exploratory. Meanwhile, as inter-
national air traffic rapidly expands, individual na-
tions and airlines are developing their own regula-
tions and operating practices. The guidance and
authority of an actively functioning international
Organization is urgently needed to assure the uni-
form standards required for safety, efficiency, and
economy.
The Convention makes no attempt to cover con-
ti'oversial questions of commercial aviation rights.
It leaves these questions to be settled by other in-
ternational agreements, which are entirely inde-
pendent of tlie Convention, and which provide for
the reciprocal exchange of commercial air trans-
port rights. Under authority vested in me, I have
actively undertaken to consummate such agree-
ments, in order to assure the most favorable devel-
opment of international civil aviation. Naturally,
agreements of this nature to which the United
States is a party are consistent with the require-
ments of the Civil Aeronautics Act, are valid under
its terms, and fully protect the public interest.
Under these agreements, before foreign air carrier
permits are issued by the United States to foreign
airlines, they must qualify under the provisions
of the Civil Aeronautics Act.
698870—46
1079
1080
DEPARTMENT OF STATE BULLETIN
It is very important to the future of American
aviation that the Convention be promptly ratified.
At the recent meeting of the Provisional Organi-
zation in Montreal, it was agreed that all the na-
tions concerned would aim at March 1, 1947, as the
ratification deadline. In order to make it possible
for the nations as a grouj) to meet this deadline,
it is vital tliat the United States ratify the Con-
A'ention during the present session of Congress.
At tlie present time, nine Governments have al-
ready ratified the Convention, but it is plain that
manj- others are withliolding action pending rati-
fication by this country. Hope of bringing the
Convention into effective operation in the near
future depends on promiit action by this country,
M-hicli would stimulate similar early action bj'
other Governments.
We need also to consider tlie possibility that, if
we hold back, the permanent Organization may
eventually be established without our participa-
tion. In that event, our airlines miglit be forced
to operate in foreign comitries under regulations
which we had had no part in framing, and which
might adversely affect our aircraft and air trans-
port industries. If the interests of this country
are to be fully represented in the work of the per-
manent Organization, the United States, which
sponsored the original International Civil Avia-
tion Conference in Chicago, needs to give evidence,
by prompt ratification of the Convention, of con-
tinued leadership. I feel confident that the Senate
will recognize tliis serious responsibility and
notable opportvniity.
Hakry S. Truman
The White House,
June n, 191,6.
Agreement on Transit Use of Azores Airfields
[Released to the press Juue 10]
The Secretary of State made public on June 10
the text of the agreement of November 28, 1944
between the Government of the United States and
the Government of Portugal which provided for
the establishment of an airfield on the Island of
Santa Maria in the Azores to be used by the mili-
tary aircraft of the United States. This agree-
ment expired on June 2, 1946. The text of the
agreement is attached hereto.
The Secretary of State also made public on June
10 the text of a note dated May 30, 1946 from the
Amba,ssador of the United States. Herman B.
Baruch, to the Minister of Foreign Affairs of Por-
tugal, Antonio de Oliveira Salazar, setting forth
an agreement between the Government of the
United States and tlie Government of Portugal,
providing for the return of the airfield to the Por-
tuguese Government, which will be converted to
peacetime uses, and permitting the United States
the continued transit use of airfields in the Azores
for eighteen months to maintain lines of communi-
cation witli its occupation forces in Germany and
Japan. Tlie text of this note is also apjDended.
APPENDIX 1
Santa Maria Agreement of November 28, 1944
Lisbon, November 28, 191,1,
Excellency :
The Government of the United States, conscious
of the legitimate desire of the Portuguese Govern-
ment to put an end to the Japanese occupation of
Timor and recognizing that this Portuguese ter-
ritory lies within the large area of operations
undertaken in the Pacific by the Government of
the United States and other allied governments,
accepts and agrees to the participation of Portu-
gal in such operations as may be conducted even-
tually to expel the Japanese from Portuguese
Timor in order that that territoi-y may be restored
to full Portuguese sovereignty. It recognizes
that such participation can be effected in direct
and indirect form: direct participation, by the
use of Portuguese forces, concerning which de-
tailed plans will be worked out as a result of the
studies conducted in staff conversations in Lisbon;
indirect participation by the concession to the
Government of the United States of facilities for
the construction, use, and control of an air base on
the Island of Santa Maria, for the purpose of fa-
cilitating the movement of American forces to the
theater of war in the Pacific or thence to the
United States under conditions to be set forth in
a S25ecial agreement between the Portuguese Gov-
ernment and the Government of the United
States.
Please accejjt [etc.] R. Henry Norweb
His Excellency
Dr. Antonio pe Oliveira Salazar,
Minister of Foreign Affairs,
Lisbon.
JUNE 23, 1946
1081
Agreement Between the Government of the
United States of America and the Portuguese
Government Establishing the Form of In-
direct Participation of Portugal in Operations
in the Pacific
Article 1st. The Portuguese Government and
the Government of the United States shall cause
to be constructed on Santa Maria Island an air-
drome to serve as an air base.
a. The principal constructions of the said base
appear on the layout which is an annex to this
agreement and which is an integral j^art thereof.
h. The Portuguese Government shall place at
the disposal of the construction entities the lands,
water and other local natural resources necessary
for the construction and utilization of the air-
di'ome.
c. The maximiUB ex[)enditure for the account
of the Portuguese Government is fixed at U.S.
$2,985,000. The Government of Portugal will
cause to be executed thi'ough the intermediary of
a private company that part of the work which
is for its account.
d. All constructions, once in serviceable condi-
tion, shall be considered ])roperty of the Portu-
guese State.
Article M. The Portuguese Government con-
cedes to the Government of the United States the
utilization without restrictions of the air base at
Santa Maria which shall be, in respect of opera-
tions, administration, and control under the com-
mand of the American Air Forces.
a. The aircraft of the British Commonwealth as
an allied power of the United States and of Portu-
gal may also utilize the field under conditions to
be determined.
1). The commercial utilization of Santa Maria
field or its use by commercial aircraft shall not
be permitted.
Article Srd. The utilization of the field by them
shall terminate within six months after the termi-
nation of hostilities or signature of an armistice
with powers with which the United States is at
present at war in the Far East. In case the said
period of six months is not sufficient to permit the
return of personnel and material, the Portuguese
Government will allow an extension up to three
months for that jiurpose, within which period all
military and civilian personnel will leave the field.
In case after signature of the armistice, hostilities
should recommence within the period fixed or ex-
tension thereof, the two governments shall decide
together upon the form of the measures to meet
the resulting situation.
Article J^th. In a complementary accord or ac-
cords to be negotiated immediately between the two
interested governments, the following shall be
regulated :
a. Everything with regard to the defense of the
field and of personnel and with regard to the
security of the o23erations ;
b. The exemptions from customs duties to be
conceded by the Portuguese Government relative
to imports which may be made for the construction
and utilization of the field ;
c. The conditions for the delivery of the field
and the disj^osal of the installations upon the ter-
mination of the facilities ;
d. The possible use of the field by commercial
or combat aircraft of the Portuguese Government ;
c. Any other matters relative to Santa Maria
field which may exceed the competence of the local
authorities and require solution by agreement be-
tween the two governments.
Article 5th. This agreement shall be treated as
secret so long as one of the governments considers
it inconvenient to divulge its contents.
Article 6th. This agreement has been made in
duplicate in English and Portuguese texts which
shall be considered of equal value, and enters im-
mediately into eii'ect.
Signed at Lisbon this 28th day of November,
A.D. 19i4.
For the Government of the
United States of AmeHca
R. H. N.
For the Portue/ue.se Republic
A. d'O. S.
Lisbon
Lisbon, November 38, 1944
Excellency :
I have the honor, for purposes of clarity and per-
fect interpretation of the Note and Agreement es-
tablishing the forms of Portuguese direct and
indirect participation in Pacific ojierations, signed
today, to inform Your Excellency, under instruc-
tions, that the emjaloyment of the word "control"
in the texts in no waj' suggests any thought on the
part of the United States Government to seek
1082
DEPARTMENT OF STATE BULLETIN
jurisdiction in matters witliin the sovereign pre-
rogatives of Portugal.
I liave [etc.] K. Henry Norweb
His Excellency
Doctor Antonio de Oliveira Salazar,
Minister of Foreign Affairs,
Lisbon.
Octoler 23, 19^3
Excellency :
In pursuance to instructions from my Govern-
ment I have the honor to inform Your Excellency
that in connection with the agreement recently
concluded between Portugal and Great Britain
the Govermnent of the United States of America
undertakes to respect Portuguese sovereignty in
all Portuguese Colonies.
Please accept [etc.]
George F. Kennan,
Counselor of Eiyibassy
His Excellency
Dr. Antonio de Oliveira Salazar,
Minister of Foreign Affairs,
Lisbon.
APPENDIX 2
The American Ambassador to the Portuguese
Minister of Foreign Affairs :
Lisbon, May 30, 19^6
Excellency :
I have the honor to acknowledge the receipt of
your Excellency's note of today's date in the fol-
lowing terms :
"Following the recent conversations concerning
the termination of the Azores Agreements and the
request put forward by the Governments of the
United States and United Kingdom with respect
to certain needs of the forces of occupation in
Germany and Japan, I have the honor to com-
municate to your Excellency the formula which
has been worked out to satisfy the various in-
terests concerned :
{a) The Governments of the United States and
United Kingdom will formally transfer on June
2nd to the Portuguese authorities designated for
this purpose the airfields of Santa Maria and
Lagens with their installations.
(6) The Portuguese Government authorizes for
the period of eighteen months from that date the
passage in transit through Lagens airfield of
American and British aircraft serving the forces
of occupation in Germany and Japan, the special
character of such aircraft being respected as far
as customs and otlier facilities are concerned.
{o) Temporarily, however, and until the estab-
lishment at Lagens of a Portuguese military avia-
tion unit, the Portuguese Government will allow
the aircraft referred to in the previous clause to
pass in transit eitlier through the Santa Maria air-
field or through the Lagens airfield.
{d) Until such time as the Portuguese author-
ities shall have organized the necessary services for
tlie operation of tlie airfields of Santa Maria and
Lagens, the American and British authorities
undertake to maintain, in collaboration with and
under tlie superintendence of the Portuguese au-
thorities, the existing services which are necessary
for the operation of the airfields.
(e) During a transitional period of 120 days
the American and British authorities will with-
draw from the airfields in question all the material
and personnel at present there whicli tlie Portu-
guese authorities do not consider to be indispen-
sable for the maintenance and operation of the
airfields and do not wish to acquire or engage.
Slioald the Governments of the United States
and United Kingdom accept the agreement set out
above, the affirmative reply of your Excellency
and of the British Ambassador, to whom an
identical note has today been sent, shall constitute,
together with this communication, the agreement
of tlie three Governments in tliis matter."
I hare the honor to inform your Excellency that
the United States Government accepts the agree-
ment set out in your Excellency's note quoted
above.
I avail myself [etc.]
Herman B. Baruch
His Excellency
Dr. Antonio de OLi\nEiRA Salazar,
Minister for Foreign Affairs,
Lisbon.
Letters of Credence
Ambassador of Czechoslovakia
The newly appointed Ambassador of Czecho-
slovakia, Juraj Slavik, presented his letters of
credence to the President on June 12. For the
texts of his remarks on the occasion of the presen-
tation of his credentials and the President's reply,
see Department of State press release 411.
JUIME 23, 1946
1083
Procedure for Filing
War Damage Claims
Poland
[Released to the press June 10]
The DeiJartment of State has received informa-
tion from the American Embassy in Poland that
Americans who sutfered war damages in Poland
may file claims for compensation with the Polish
Government. Appropriate forms for the filing
of such claims should be secured from the War
Losses Department, Central Office of War Repa-
rations Office, ulica Marszalkowska 8, Warsaw.
Claims should be presented by a resident of
Poland holding a power of attorney or they may
be forwarded to the American Embassy, Warsaw,
for further transmission to the Central Office of
the War Reparations Office. Although the period
for presenting claims for citizens of Poland has
elapsed, the War Reparations Office has agreed to
accept war damage claims by foi'eigners without
time limit.
According to the latest information the Polish
Government has not as yet begun tlie payment of
compensation to Polish citizens; however, the
Polish Foreign Office has advised that when Polish
citizens are given compensation for war damages,
American and other Allied nationals may expect
to receive like treatment.
The Netherlands
[Released to the press June 10]
The Department of State has been advised that
the Netherlands Government is accepting claims
from United States citizens for damage caused to
their property, real or personal, in the Nether-
lands arising from the war. The Netherlands
Commission for War Damages, which is the agency
of the Netherlands Government having jurisdic-
tion of the matter, is reported to have received
claims from United States citizens totaling 2,855,-
282 guilders. It has been estimated that the final
figure will be 25 percent higher.
At present, no provision exists for the payment
of claims of United States citizens, but it is recom-
mended that United States citizens file their claims
so that tliey may be of record. Persons interested
in making claims should contact the Netherlands
Commission for War Damages, Staadhouderslaan
130, The Hague, or the Office of the Netherlands
Financial Counselor, 25 Broadway, New York
City.
Denmark Releases Assets of
American Nationals
[Released to the press June 14]
All assets in Denmark belonging to United
States nationals will be released from controls
imposed during the German occupation of Den-
mark according to information received by the
Department of State.
An order of December 27, 1940 issued by the
Danish Ministry of Commerce provided for the
registration of all assets located in Denmark which
were foreigir-owned on or after April 9, 1940.
Furtliermore, disposition of such assets outside the
scojje of normal administration or beyond the re-
quirements for the upkeep of a household were
forbidden save by special authorization of the
Ministry of Commerce.
Another order of March 20, 1941 provided for
the appointment of trustees for foreign assets reg-
istered under the order of December 27, 1940, re-
ferred to above. These trustees were acting under
the supervision of the Probate Division of the
Copenhagen Maritime and Commercial Tribunal.
The above orders will now be repealed so far as
they cover assets belonging to physical or juridical
persons or companies domiciled in or carrying on
business in the United States of America at any
time after April 9, 1940, as well as assets belong-
ing to United States citizens domiciled in Den-
mark. Trustees appointed for American assets
will contact the owner of assets under such trustee-
ship with a view to the liquidation of the trustee-
shii5.
Through these measures American assets will
be exempted from the regulations resulting from
the German occupation of Denmark. Henceforth,
only certain general exchange controls will apply.
These do not have particular regard to American
assets, but apply universally to both Danish and
foreign nationals. Since the liberation of Den-
mark, these controls have been relaxed on several
jioints, and it is the intention of tlie Danish Gov-
ernment to pursue the policy of liberalizing the
administration of the exchange control restrictions
to tlie fullest extent that the Danish foreign ex-
change position will permit.
1084
American Aid to India in
World Food Crisis
[Released to the press June 15]
Text of letter sent to Pearl S. Buck, Chairman,
Indm. Famine Emergency Committee, hy Harold
B. Minor, Chief, Division of Middle Ea^stern
Affairs, Department of State
June 13, 19^6
My Dear Mrs. Buck :
I refer to the full-page advertisement that has
recently appeared in a Washington newspaper
under the name of the India Famine Emergency
Committee.
You may be sure that the Department fully
shares the concern of your connnittee over the
critical food situation in India. As the President
stated in a recent comnumication .to the Viceroy
of India, "the gravity of the food shortage in India
is thoroughly recognized by tlie United States Gov-
ernment and is receiving the fullest and most sym-
pathetic consideration on the highest levels of the
Government."
There appears to be a popular misconception,
both here and in India, regarding American aid to
India in the matter of food grains. The fact is
that since the first intimation of serious food short-
ages in India reached this country, in the early part
of 1946, the United States has been shipping in-
creasingly larger quantities of grain to India. It
will be recalled that the full extent of India's needs
was not known until a relatively late date after
comprehensive food programs, involving the ship-
ment of American gi-ain to other countries in
desperate need, had been more fully formulated.
Despite these difficulties, this country has been
able to make a substantial contribution toward the
prevention of famine in India. I am enclosing for
the infoi-mation of the India Famine Emergency
Committee a recent Department of State press re-
lease ^ clarifying the American position on the In-
dian food problem. Althou,gh strikes and floods
prevented full implementation of the May pro-
gram, it is expected that in addition to the quan-
tities cited in the press release, a further 85,000
tons of American grain can Be shipped to India
in June. In the absence of unpredictable transpor-
tation and other difficulties it is also confidently
' Department of State press release 354, not printed.
■ S. Exec. B, 79th Cong.
' Treaty Series 990.
DEPARTMENT OF STATE BULLETIN
hoped that even larger shipments can be made to
India from this country in July.
Your attention is particularly invited to tlie sec-
ond paragraph of the press release from which
it is made clear that the Combined Food Board
did not recunnuend the allocation to India of
1,400,000 tons of wheat referred to in your adver-
tisement.
For .several months representatives of India
have taken an active part in the deliberation of
the Rice and Cereals Committees of the Combined
Food Board. As you are doubtless aware, it is
expected that the Board will shortly be replaced
by an International Food Council of which India
will be a full-fledged member.
But American aid to India cannot be measured
solely in terms of grain shipments from this coun-
try. In working out over-all shipping programs
on a global basis in cooperation with other govern-
ments, the United States has enabled those coun-
tries to give more assistance to India than would
otherwise have been possible. Furthermore, sub-
stantial quantities of American canned and pow-
dered milk have also been allocated for shipment
to India in recent months, and plans are under
way to send India lai'ge amounts of dehydrated
vegetables from American stocks. Kecognition
was also given to India's food problem by Mr.
Hoover's recent visit to India, and many of his
recommendations are being implemented by the
Government of India.
I believe tlie foregoing facts indicate clearly that
India's need has been recognized by this Govern-
ment and that it is taking steps on many fronts
to help meet this need.
Sincerely yours,
Harold B. Minor
1945 Sugar Protocol
Proclaimed
On June 10 the President proclaimed the proto-
col of August 31, 1945 - prolonging for a further
period of one year after August 31, 1945 the inter-
national agreement regarding the regulation of
production and marketing of sugar which was
signed originally at London May 6, 1937,^ as re-
newed. The 1945 protocol was ratified by the
President on May 1, 1946 and the instrument of
ratification deposited in the archives of the British
Government on May 27, 1946.
JUNE 23, 1946
1085
Transmittal to the Senate of Protocol
Prolonging 1944 Sanitary Convention'
The White House, May 29, 1946.
To the Senate of the United States:
With a view to receiving the advice and consent
of tlie Senate to ratification, I transmit herewith a
certified copj' of each of the following two proto-
cols:
(1) Protocol to prolong the International Sani-
tary Convention, 1944, modifying the Interna-
tional Sanitary Convention of June 21, 1926;
(2) Protocol to prolong the International Sani-
tary Convention for Aerial Navigation, 1944,
modifying the International Sanitary Convention
for Aerial Navigation of April 12, 1933.
These protocols were open for signature at
Washington from April 23, 1946, to May 1, 1946,
and were signed on behalf of the United States of
America on April 30, 1946, witli the reservation,
"Subject to ratification."
I transmit also for the information of the Senate
a report regarding the two protocols made to me
by the Secretary of State, and an accompanying
memorandum.
Harry S. Truman.
The White House, May 29, 19^6.
(Enclosures: 1. Report of the Secretary of
State. 2. Certified copy of the protocol to pro-
long the International Sanitary Convention, 1944.
3. Certified copy of the protocol to prolong the
International Sanitary Convention for Aerial Nav-
igation, 1944. 4. Memorandum setting forth the
reservations with which Australia acceded to the
1944 Sanitary Conventions.)
Department of State,
Washington, May 28, 1946.
The President : The undersigned, the Secretary
of State, has the honor to lay before the President,
with a view to their transmission to the Senate to
receive the advice and consent of that body to
ratification, if his judgment approve thereof, a
certified copy of each of the following two proto-
cols:
(1) Protocol to prolong the International Sani-
tary Convention, 1944 modifying the International
Sanitary Convention of June 21, 1926 ;
(2) Protocol to prolong the International Sani-
tary Convention for Aerial Navigation, 1944,
modifying the International Sanitary Convention
for Aerial Navigation of April 12, 1933.
These protocols were open for signature in the
Englisli and French langaiages at Washington from
April 23, 1946, to May 1, 1946. Both protocols
were signed on behalf of New Zealand on April 23,
194G ; on behalf of Belgium on April 24, 1946 ; on
behalf of Canada on April 25, 1946 ; on behalf of
Nicaragua on April 26, 1946; on behalf of the
United Kingdom of Great Britain and Northern
Ireland on April 29, 1946; and on behalf of the
United States of America, Australia, China,
Ecuador, France, Greece, Haiti, and Luxembourg
on April 30, 1946.
Reservations requiring ratification of each of the
two protocols were made on behalf of the United
States of America, Belgium, and Ecuador. Both
protocols were signed on behalf of Australia,
"Subject to the reservations with which Australia
acceded to the 1944 convention to which this Proto-
col relates." Those reservations are set forth in a
memorandum which accomi^anies this report.
Each of the protocols remains open for accession
by any government which is a party to the 1944
Convention to which it relates and is not a signa-
tory to that protocol.
The purpose of the protocols is to continue in
force the International Sanitary Convention,
1944, Modifying the International Sanitary Con-
vention of June 21, 1926, and the International
Sanitary Convention for Aerial Navigation, 1944,
Modifying the International Sanitary Conven-
tion for Aerial Navigation of April 12, 1933.
These conventions came into force on January 15,
1945, and, by their terms, will expire on July 15,
1946, Information on their background and pur-
poses is set forth in detail in the report of March
10, 1945, by the Acting Secretary of State to the
' S. Exec. D and E, 79th Cong.
1086
DEPARTMENT OF STATE BULLETIN
President (Senate Executive B and C, Seventy-
ninth Congress, First Session.).
Advice and consent to ratification of the 1944
Conventions was given by the Senate on May 21,
1945. The Conventions were ratified by the
President of the United States on May 29, 1945,
and the instruments of ratification by the United
States deposited on May 29, 1945.
The protocols will continue the 1944 Conven-
tions without modification except for the limita-
tion provided for in Article II of both protocols.
Particular attention is invited to the fact that the
United Nations Relief and Rehabilitation Admin-
istration (UNRRA) will continue to perform the
duties and functions assigned to it by the 1944
Conventions, but only until such time as a new
international health organization is established.
In the event a new international health organiza-
tion has not been formed, or, having been formed,
is unable to perform the above duties and func-
tions by the date UNRRA terminates its activities,
the duties and functions are to be entrusted to the
Office International dTIygiene Publique.
Unless the 1944 Conventions are prolonged, con-
certed action on an international scale against
epidemic diseases after July 15, 1946, will again
be based upon the three older conventions relating
to quarantine and the exchange of epidemiological
information; namely, the International Sanitary
Convention of June 21, 1926, the International
Sanitary Convention for Aerial Navigation of
A])ril 12, 1933, and the Pan American Sanitary
Convention of November 14, 1924.
The technical provisions of the first two of these
three conventions are obsolete in many respects,
and the third convention is restricted in its appli-
cation to the American Republics. It is consid-
ei'ed essential, therefore, to continue in force the
technical provisions of the 1944 Conventions
which supplement those of the 1926 and 1933 con-
ventions. It is desirable to continue in force, also,
the provisions of the 1944 Conventions which re-
quire notification of epidemic diseases which are
not covered by the earlier conventions.
Respectfully submitted.
James F. Byrnes.
The President,
The White House
(Enclosures: 1. Certified copy of the protocol
to prolong the International Sanitary Conven-
tion, 1944.= 2. Certified co])y of the protocol to
prolong the International Sanitary Convention
for Aerial Navigation, 1944.^ 3. Memorandum
setting forth the reservations with which Australia
acceded to the 1944 Sanitary Conventions.^)
"The English text of the protocol appeared in the
Bulletin of M;i,v 19, lO-tO, p. 869.
^ Not printed.
Acconiniodatioii of American
Businessmen in Paris
IReleased to tbe press June 13)
The Hotel California in Paris will continue for
the present to accommodate American business-
men recommended by the American Embassy in
Paris. Earlier reports from Paris stated that
the restaurant would close on May 15 owing to
the termination of Army commissary facilities,
and that the hotel would no longer be available
exclusively for Americans. Arrangements have
since been made by the Embassy with the French
Tourist Bureau, however, to obtain enough food
to keep the hotel's restaurant operating, and the
management of the hotel is continuing to reserve
its rooms for American businessmen.
The American Embassy in Paris is receiving the
full cooperation of the hotel management and the
French Tourist Bureau. Current arrangements,
however, are only provisional, as French authori-
ties are working on a plan designed to provide
adequate, reasonably priced meals to all foreign
travelers.
It will be recalled that the Department of State
some time ago arranged for the Hotel California
to be operated under the sponsorship of the Em-
bassy as a part of the assistance it is rendering to
American businessmen who are reestablishing
international private trade. Owing to the de-
mand for accommodations, it was necessary to
put a limit of three weeks on the visit of any
businessman. The present crowded state of the
hotel may make it necessary to limit each stay to
two weeks if the demand for rooms increases. No
i-eservations are made on this side of the ocean,
but American businessmen arriving in Paris may
obtain accommodations, if available, by apply-
ing to the Visitor's Bureau of the American Em-
bassy.
JUNE 23, 1946
1087
Supplementaiy Protocol to Income-Tax Convention
With Great Britain
[Released to the press by the White House June 11]
I'o the Senate of tJie United States :
With a view to receiving the advice and consent
of the Senate to ratification, I transmit herewith
a supplementary i^rotocol, signed at Washington
on June (J, 1946, modifying in certain respects the
convention between the United States of America
and the United Kingdom of Great Britain and
Nortliern Ireland for the avoidance of double
taxation and the prevention of fiscal evasion with
respect to taxes on income which was signed at
Washington on April 16, 1945.
I also transmit herewith, for the information of
the Senate, the report of the Secretary of State
with respect to the protocol.
Harry S. Truman
The White House,
June 11, 19Jf6.
Report of the Secretary of State to the
President ^
June 10, 1946.
The President,
T/ie White House:
The undersigned, the Secretary of State, has the
honor to la,y before the President, with a view to
its transmission to the Senate to receive the advice
and consent of that body to ratification, if his
judgment approve thereof, a supplementary proto-
col, signed at Washington on June 6, 1946, modify-
ing in certain respects the convention between the
United States of America and the United King-
dom of Great Britain and Northern Ireland for
the avoidance of double taxation and the preven-
tion of fiscal evasion with respect to taxes on in-
comes whicli was signed at Washington April 16,
1945.
The convention was submitted by the President
to the Senate with a message of April 24, 1945,
and was referred to the Committee on Foreign
Relations (Executive D, 79th Cong., 1st sess.).
By its report of May 10, 1946 (Senate Executive
Report No. 4, 79th Cong., 2d sess.), the Committee
on Foreign Relations reported the convention fa-
vorably to the Senate without amendment and
recommended that advice and consent be given to
its ratification. However, in that report reference
was made to hearings which were held before a
subcommittee of the Committee on Foreign Rela-
tions, in the course of which hearings interested
persons were heard with respect to certain objec-
tions which had been raised in regard to paragraph
(?)) of article XI of the convention. The full com-
mittee concurred in the recommendations of the
subcommittee "(«) that the convention be ratified
without amendment ; (b) that the objections taken
to the presence in the convention of paragraph (3)
of article XI are sound; and (c) that appropriate
steps be taken, after ratification, looking to strik-
ing such paragraph from the convention."
Article XI of the convention contains three par-
agraphs, under the first two of which a recipi'ocal
exemption is accorded by each of the contracting
countries, upon certain conditions, with respect to
compensation for personal services performed
within such country by a resident of the other
country. Paragraph (3) of article XI specifically
excludes public entertainers from tlie benefits of
such exemption, the paragraph reading as follows :
(3) The lorovisions of thi.s article shall not apply to the
conippiisatlon, profits, emoluments or other remuneration
of public entertainers such as stage, motion picture, or
radio artists, musicians, and athletes.
The subcommittee of the Committee on Foreign
Relations reached the conclusion that a substantial
basis existed for the view that paragraph (3) of
article XI is open to the objection that it is dis-
criminatory. However, upon receiving assurances
that appropriate steps would be taken with a view
to eliminating the provision of that paragraph
from the convention, the subcommittee proceeded
to recommend approval of the convention without
amendment, at the same time recommending that
"appropriate steps be taken, after ratification,
looking to striking such paragraph from the
convention."
On June 1, 1946, the Senate gave its advice and
consent to the ratification of the convention, with-
out amendment.
' S. Exec. F, 79th Cong. Approved by the Senate on June
19, 1946.
1088
Without awaiting ratification of the convention,
the plenipotentiaries of the two Governments have
concluded and sigiaed the supplementary protocol,
enclosed herewith. The protocol provides in arti-
cle I that paragrapli {'A) of ai'ticle XI of the con-
vention "shall be deemed to be deleted and of no
effect." Article II of the protocol provides that
the protocol shall be regarded as an integral part
of the convention and shall be ratified, the in-
struments of ratification to be exchanged at
Washington.
It is believed that, by submitting the protocol
to the Senate at this time, action may be facilitated
with a view to bringing the convention into force
without the provisions to which objection has been
raised. It is hoped that the convention, together
with the protocol, may be brought into force as
soon as possible in order tliat the impediment to
international trade which results from the double
taxation of incomes may be removed as between
the United States of America and the United
Kiue-dom of Great Britain and Northern Ireland.
Kespectfully submitted.
James F. Byrnes.
(Enclosure: Protocol of June 6, 1946, modifying the con-
vention of April 16, 1945, relating to taxes on income, be-
tween the United States and the United Kingdom.)
PROTOCOL
The Government of the United States of Amer-
ica and the Government of the United Kingdom
of Great Britain and Northern Ireland,
Desiring to conclude a supplementary Protocol
modifying in certain respects the Convention for
the avoidance of double taxation and the preven-
tion of fiscal evasion with respect to taxes on in-
come which was signed at Washington on April
16, 1945,
Have agreed as follows :
Article I
Paragraph (3) of Article XI of the Convention
of April 16, 1945, for the avoidance of double taxa-
tion and the prevention of fiscal evasion with
respect to taxes on income shall be deemed to be
deleted and of no effect.
Article II
This Protocol, which shall be regarded as an
integral part of the said Convention, shall be rati-
fied and the instruments of ratification thereof
shall be exchanged at Washington.
DEPARTMENT OF STATE BULLETIN
In witness whereof the undersigned Plenipoten-
tiaries, being authorized thereto by their respective
Governments, have signed this Protocol and have
affixed thereto their seals.
Done at Washington, in duplicate, this sixth day
of June 1946.
For the Government of the United States of
America :
James F. Byrnes,
Secretat'y of State
of the United States of America.
For the Government or the United Kingdom of
Great Britain and Northern Ireland :
John Balfour.
His Majesty^s Envoy Extraordinary
and Minister Plenipotentiary in Washington.
Air-Transport Agreement
With Egypt
The Department of State on June 15 released
to the press the text of the air-transport agreement
concluded between the Governments of the United
States and Egypt. The text of the agreement
follows substantially that of the air-transport
agreement between the United States and the
United Kingdom, as printed in the Bulletin of
April 7, 1946, with the exception of that section
of the annex which provides for the air routes
as follows :
A. Airlines of the United States authorized un-
der the present agreement are accorded rights of
transit and non-traffic stop in Egyptian territoiy,
as well as the right to pick up and discharge inter-
national traffic in passengers, cargo, and mail, at
Cairo, on the following routes, in both direc-
tions : —
United States to Egypt and thence to Pales-
tine (Lydda), Iraq (Basra), and Saudi
Arabia (Dhahran), India, and beyond, via:
(a) Ireland, France, Switzerland, Italy and
Greece; {h) Portugal, Spain, Italy and
Greece; (c) Portugal, Spain, and North
African points.
B. Airlines of Egypt authorized under present
agreement are accorded rights of transit and non-
traffic stop in United States territory as well as
right to pick up and discharge international traffic
in passengers, cargo, and mail in the United States
on a route or routes to be determined at a later
date from Egypt via intermediate points to the
United States, in both directions.
JUNE 23, 1946
1089
Cabinet Committee on Palestine and Related Problems
STATEMENT BY THE PRESmENT
[Released to the press by the White House June 11]
In view of the urgency of various problems
relating to the displaced Jews in Europe and Pales-
tine, I am appointing under the chairmanship of
the Secretary of State a Cabinet Committee on
Palestine and Related Problems, composed of the
Secretaries of State, War and Treasury. The
Committee will be charged with assisting me in
formulating and implementing such policy with
regard to Palestine and related problems as may
be adopted by this Government. An Executive
order will be issued outliiiing the functions and
authority of the Committee in further detail.
The Committee will be authorized to negotiate
with the British Government and with other for-
eign governments and to maintain contact with
private organizations relative to the various mat-
ters arising out of the recommendations of the
Anglo-American Committee of Inquiry.
It is my earnest hope that the Cabinet Commit-
tee will be able to undertake its urgent tasks at the
earliest possible moment.
STATEMENT BY THE SECRETARY OF
STATE
[Released to the press June 11]
With reference to the establishment by the
President of a special Cabinet Committee on Pal-
estine and Related Problems, I have appointed
Mr. Henry F. Grady as my alternate on the Com-
mittee with the personal rank of Ambassador.
Mr. Grady was recently head of the American
Section of the Allied Mission to Observe the Elec-
tions in Greece and had previously served as
Assistant Secretaiy of State and on economic
missions to the Far East and to India.
EXECUTIVE ORDER 9735 >
Establishing a Cabinet Committee on
Palestine and Related Problems
[Released to the press by the White House June 11]
By virtue of the authority vested in me by the
Constitution and the statutes, and as President of
the United States and Commander in Chief of
the Army and Navy, it is hereby ordered as
follows :
1. In view of the urgency of the solution of
various problems relating to the displaced Jews
in Europe and to Palestine, there is hereby estab-
lished under the Chairmanship of the Secretary
of State, a Cabinet Committee on Palestine and
Related Problems (hereinafter referred to as the
Committee) composed of the Secretaries of State,
War, and the Treasury. The functions and duties
of the Committee shall be :
(a) To assist the President in the early con-
sideration of the recommendations of the Anglo-
American Committee of Inquiry (hereinafter re-
ferred to as the Anglo-American Committee) and
of the views which may be submitted as a result
of the consultations thereon, and in the determina-
tion of the steps to be taken by this Government
in regard to Palestine and related problems.
(h) To 2^ropose the specific measures considered
necessary or appropriate effectively to implement
the decisions made by the President with regard
to Palestine and related problems.
(c) So far as may be permitted by law, to imple-
ment and coordinate, either directly or through
the appropriate departments and agencies of the
United States Government, such policies or pro-
grams in respect of Palestine and related prob-
lems as may be approved and authorized by the
President.
(d) To perform such other tasks in connection
with the functions and duties described in sub-
paragraphs (a), (h), and (c) above as the Presi-
dent may from time to time direct.
2. Each member of the Committee shall desig-
nate a fully deputized alternate to act for and in
his behalf. The alternates thus selected shall func-
tion as the executive agency of the Committee and
shall be known as the Board of Alternates, whose
Chairman shall be the alternate for the Secretary
of State. The Committee is hereby empowered:
(a) To fix its rules of conduct and procedures
and the pattern of its internal organization.
(h) To employ a Secretariat to be headed by
a Secretary-General with such deputies and as-
sistants and such clerical and administrative per-
sonnel as may be necessary.
» 11 Federal Register 6481.
1090
DEPARTMENT OF STATE BVLLETIN
(e) To utilize to the maximum extent possible
by way of loan or otherwise such personnel, facil-
ities, and services of the State, War, and Treasury
Dei^artments as may be necessary or useful to the
Committee in the accomplishment of its functions
and duties.
{d) Subject to subparagraph (c) hereof and
within the limits of funds which may be made
available to it, to employ necessary technical per-
sonnel, consultants, or advisers without regard to
the civil service laws and regulations, and to make
provision for such supplies, facilities, and services
as may be necessary fully to discharge the Com-
mittee's responsibilities.
(e) Whenever necessary, to call upon the heads
of other departments and agencies of the Govern-
ment to sujjply experts or technical advisers to the
extent available to assist the Committee or its
staif in connection with its objectives.
3. In the formulation of its policy recommenda-
tions as provided in paragraph 1 hereof and in the
implementation of any policies and programs
approved by the President, the Committee shall
be empowered :
{a) To negotiate and consult, directly or
through its representatives, with accredited repre-
sentatives and agencies of other governments, with
public or private international bodies, with States
and municipalities and private and quasi-j)ublic
organizations in the United States or abroad.
( h ) Upon the written request of the Chairman,
or his alternate, to procure from all departments
and agencies of the Government such records and
documents in their possession as may be necessary,
relevant, or useful to the Committee in the ac-
complishment of its objectives hereunder.
4. In carrying out its functions and duties, and
within the limits of available funds, the members
of the Committee and its personnel are authorized
to engage in the necessary domestic and foreign
travel. When permitted by law and otherwise
practicable, the Secretary of War and the Secre-
tary of the Navy shall provide appropriate travel
assistance, including the furnishing of avail-
able Government-owned transportation and other
^^"lities. Harry S. Truman
The White House,
June 11, 191fi.
JAPANESE ELECTIONS— Co»i/j««crf p-om page 1073.
limit its scope and tempo, while the Socialists and
Communists would move more rapidly toward
fundamental reforms. Seen in this light the elec-
tion represents a victory, possibly temporary, for
the more conservative forces in Japanese civilian
life.
Commenting on this phenomenon the moderate
Nippon Times observed on 16 April : "Of course
there was no overwhelming victory for the revo-
lutionary forces of democracy ; of course the rem-
nants of the old conservative forces managed to
retain their advantage. But considering the tre-
mendous power which the old entrenched interests
used to exercise until so recently and the short pe-
riod of time in which the new forces of reform
have had to spread their influence, the outcome of
the election must be considered little short of as-
tounding. . . . The really significant fact is
the vigorous growth in the power of the liberal
elements like the Social Democratic Party. . . .
There is no question that the old order is doomed,
and that the new liberal movement, though not
yet in full tide, is sweeping on toward unprece-
dented levels." The Japanese press in general
tends to I'egard the election of 10 April as the first
stage in a continuing process.
33. Japanese politics is still in a state of flux.
The multiplicity of parties and candidates reflects
the confusion of a transitional period. Dui'ing
the war all political activity was strictly regi-
mented by the Government. Now the lid is off
and the political pot is boiling furiously. The
issues which will dominate Japanese political life
in the coming years have not yet been clearly de-
fined, nor have party lines been finally drawn.
Because of the fluidity of the political situation
the possibility of another election at a relatively
early date has been suggested by several news-
papers.
34. Japan's first post-war election was a valu-
able lesson in the mechanics and the meaning of
democratic government — a lesson which cannot be
learned from textbooks but only by the accumula-
tion of experience. The response of the electorate
gave encouraging promise for the future. Japan
has taken the first stejo on the road toward the
eventual creation of responsible popular govern-
ment.
JUNE 23, 1946
1091
Lend-Lease Operations:
Twenty-Second Report
THE PRESIDENT'S LETTER OF
TRANSMITTAL
To the Oo/igresf! of the U/uteJ States of America:
I am transmitting herewith the twenty-second
report of operations under the Lend-Lease Act.
This report contains an exphmation of the lend-
lease settlement reached with the United Kingdom
on December 6, 1945, and includes the specific
agreements of March 27, liUfi, between the United
States and the United Kingdom. I am convinced
that this settlement, which is in accordance with
the aims of Article VII of the Master Lend-Lease
Agreement between the two Governments, serves
the best interests of the United States and, at the
same time, will "promote mutually advantageous
economic relations" between the two countries.
This repoi't also discusses the continuation of
lend-lease aid to China, which has been necessary
to enable that country to take over the areas under
Japanese occupation, and information on the total
amount of lend-lease aid rendered.
Operations under the Lend-Lease Act which re-
main to be completed, in addition to accounting and
reporting activities, include the delivery of the
small quantity of supplies still in the lend-lease
"pipe-lines'', for which the foreign governments
have agreed to paj- on varying terms, and negotia-
tion of final settlements. Deliveries of "pipe-line"
supplies are being made as rapidly as circumstances
permit. As of this date final lend-lease settlements
have been negotiated with the United Kingdom,
Turkey, India, France and Australia. Negotia-
tions with other countries are being carried on and
will be completed as early as possible. Terms of
these settlements will be discussed in future reports.
Harry S. Truman.
The White House,
June 14, 1946.
Hnngarian Prime Minister
Visits U.S.
[Released to the press June 11]
Ferenc Nagy, Prime Minister of Hungary,
Mathias Kakosi, Deputy Prime Minister, John
Gyongyosi, Minister of Foreign Atfairs, and
Stephen Riesz, Minister of Justice, will arrive in
Washington June 11 as guests of the Go\ ernment
and will remain in Washington four or five days.
During their stay, they will be at the Blair
House and a reception will be given in their honor
by the Minister of Hungary on Wednesday, June
12,~at the Hungarian Legation. A dinner will be
given in their honor by the Acting Secretary of
State tlie evening of Thursday, June 13, at the
Blair-Lee House.
It is also expected that Their Excellencies will
make visits to Mount Vernon, Arlington, and
the Capitol.
Guatemalan Political
Economist Visits U.S.
Dr. Gustavo Miron, Dean of the Faculty of Eco-
nomics of the University of San Carlos, Guate-
mala, is visiting the United States at the invitation
of the Department of State. He will visit depart-
ments of economics and schools of business admin-
istration in American universities and acquaint
himself with their methods and organization.
The Guatemalan Government in its budget for
1946^7 has set aside an appropriation to send five
students to the United States to study business
organization and fiscal and budget policies. Three
of these students will be from the School of Eco-
nomics and two will be government employees.
Dr. Miron will remain in the United States for
two months.
Application Date for Chinese
Student Applications
[Released to the press June 14]
The Department of State announces that the
deadline for the receipt of applications for travel
grants to Chinese students appointed to research
and teaching posts in higher educational institu-
tions in China, announced on May 31, 1916, has
been extended from June 12 until July 15, 1946.
1092
DEPARTMENT OF STATE BULLETIN
Continuation of Scientific
and Cultural Cooperation
With American Republics
[Released to the press June 10]
A survey mission consisting of three United
States Government officials has recently returned
from six of the American republics and has re-
ported that those coimtries are anxious to continue
the program of cooperation in scientific and cul-
tural matters. This program, conducted by the
Interdepartmental Committee on Scientific and
Cultural Cooperation, began as an outgrowth of
the good-neighbor policy and was increased during
the war years. Members of the mission were Ray-
mond L. Zwemer, Executive Director of the Com-
mittee ; Olcott H. Deming, Planning Officer for the
Oommittee; and Edgar B. Brossard, Member,
United States Tariff Commission. The group
surveyed various projects in Mexico, Guatemala,
Colombia, Peru, Brazil, and Cuba, which have
received a proportion of their funds and personnel
from this Govei'nment.
The mission reports an increasing interest in
the program on the part of officials and people of
the counti-ies visited. The officially conducted
cooi^erative interchange, which has developed over
the past eight years, was warmly commended in
all quarters as one of the most effective means of
cementing hemispheric solidarity. It was found
that nationals of the various countries are partici-
pating more and more in the actual operations.
The projects embrace a wide variety of undertak-
ings ranging from the development of comple-
mentary agricultural products and the making of
tidal observations, through various categories of
personnel exchanges and the interchange of books
and publications. Cultural centers maintained
and operated jointly by the nationals of the United
States and the American republics are included in
this program.
Visit of Chinese Scientist
Dr. Hou Pao-chang, distinguished Chinese sci-
entist and Acting Dean, Cheeloo University Med-
ical School, invited to the United States for a
year's stay under the Department's cultural-coop-
eration progi-am, arrived in San Francisco on May
7. Before coming to Washington he visited the
medical departments of the Universities of Cali-
fornia, Southern California, and Utah.
While in the United States Dr. Hou plans to ob-
serve the most recent work in his field at the medi-
cal departments of American educational institu-
tions, hospitals, and research organizations.
Political Scientist
To Visit China
Nathaniel Peffer, professor of international re-
lations, Columbia Universitj^, will go to China as
a visiting professor under the State Department's
cultural-cooperation program, at the request of the
Chinese Ministry of Education, to lecture on in-
ternational relations in Chinese colleges and
universities.
Professor Peffer will leave for China about the
middle of June and will remain six months.
Visit of Chinese Geographer
Dr. Liu En-lan, professor of geography and
head of tlie geograjahy department of Ginling
College, Nanking, China, will arrive in this coun-
try in June for a year's stay under the State De-
partment's cultural-cooperation program.
Dr. Liu attended Clark University, where she
I'eceived her M.A. degree, and later obtained a
Ph.D. from Oxford. She is a specialist in the
geography of Western Szechwan and in the
ethnology of the border tribes.
The Department
Office of Under Secretary of
State for Economic Affairs'
The Coniiiiittee. on Foreign Affairs to whom was
referred the bill (H. K. 6G46) to establish the
Office of Under Secretary of State for Economic
Affairs, having considered the same, report favor-
ably and unanimously thereon with an amendment
and recommend that the bill, as amended, do pass.
The amendment is as follows :
In line 4, strike out the words "beginning imme-
diately"' and insert in lieu thereof "following the
enactment and approval of this legislation by the
President".
This amendment was made solely for the pur-
pose of making more i^recise the date upon which
the authority for the Office of Under Secretary of
State for Economic Affairs will expire.
Purpose
The Secretary of State appeared before the com-
mittee and discussed the greatly increased number
of responsibilities which had been given to the
Department of State since the end of the war. To
a large extent these responsibilities have related to
foreign economic affairs and have been added to
the already numerous functions with which the
present Assistant Secretary of State for Economic
Affairs has been charged. These new responsibili-
ties include the settlement of the lend-lease ac-
counts with foreign governments, the disposal of
surplus property abroad, the settlement of numer-
ous claims between the United States and other
countries, credits to foreign governments and our
economic policy with respect to Germany and
Jajjan. In addition, the United Nations has been
created, and the Economic and Social Council is
in operation ; the United Nations Food and Agri-
culture Organization, the International Monetary
Fund, the International Bank for Reconstruction
and Development and the United Nations Relief
and Rehabilitation Administration have been es-
tablished, and in the fields of aviation, shipping
and telecommunications additional discussions are
in prospect. This Government has also published
proposals for an international conference on trade
and employment.
All of these activities acquired new importance
when the fighting stopped and we were free to
turn to the building of a lasting peace. With all
of them the present Assistant Secretary of State
for Economic Affairs has a close association and
attendant heavy responsibilities.
Increased Administrati\'e Efficiency
During the next 2 years, the duties now per-
formed by the Assistant Secretary of State for
Economic Affairs will be of the greatest signifi-
cance in the conduct of our foreign relations, and
those duties will require the most thoughtful atten-
tion to the problems which confront us and the
most careful search for appi'opriate solutions.
The scope of the work requires the complete atten-
tion of more than one principal officer of the De-
partment. And quite apart from the fact that the
task is beyond the capacity or endurance of any
single individual, it will be most helpful in the
conduct of international discussions and negoti-
ations if the principal officer of the Department
of State concerned with economic affairs has a rank
commensurate with his duties.
With the creation of this office, the functions and
duties now assigned to the Assistant Secretary of
State for Economic Affairs can be shared with the
Under Secretary of State for Economic Affairs.
In this way it will be possible during the next 2
years to secure adequate and full consideration of
the serious problems with which the Department
of State will be faced. The term of the Office of
the Under Secretary of State for Economic Affairs
has been limited to 2 years because it is apparent
that during that period the Secretary of State will
require the assistance of ah officer of this rank.
It is not now contemplated that the office would
be established on a permanent basis and its creation
should not be considered a precedent for the estab-
' H. Kept. 2249, 79th Cong.
1093
1094
DEPARTMENT OF STATE BULLETIN
lishment of a similar office in any other depart-
ment. A number of the temporary war agencies
have been transferred to the Department of State
which makes the need for the proj^osed legishition
unique.
The recommendation for the establishment in
the Department of State of the office proposed in
the resolution was first made in the Eighth Report
of the Special Committee on Postwar Economic
Policy and Planning of the House of Representa-
tives. A subcommittee of this special committee
had traveled extensively abroatl and had devoted
special consideration to our foreign economic pro-
gram. It was the conclusion of that committee
that an Under Secretary of State for Economic
Affairs was necessary if the numerous and difficult
problems involved were to be jjroperly handled.
Conclusion
With our allies, we have successfully waged a
great war, and we must devote our best efforts to
the creation of a secure and lasting peace. If we
are to succeed in this task, the conduct of our for-
eign relations nuist be efficient and capable. Unless
the Secretary of State is authorized to have the
assistants he believes are reasonalily necessary it
will be impossible for him to adequately represent
this Government in its dealings with other coun-
tries. The establishment of the Office of Under
Secretary of State for Economic Att'airs will serve
to focus the attention on our foreign economic pro-
gram which it deserves and will provide the as-
sistance wliich is necessary if the problems involved
are to receive the care and vigorous analysis which
they require.
Organization of the Office
of Transport and
Commnnications Policy
[Released to the press June 11]
Effective June 1, 1946, the State Department's
Office of Transport and Communications Policy,
which comprises the xVviation. Shipping, and Tele-
conununications Divisions, has realigned its organ-
izational structure to carry out more effectively the
responsibility for the initiation and coordination
of iDolicy and action concerning the international
' Not printed.
aspects of transport and communications within
the jurisdiction of the Department of State.
The Aviation Division will consist of the Air
Transport Section, Facilities Section, and Tech-
nical Assistance Section.
The Shipping Division will consist of the Traffic
Section, Shipping Law and Ti'eaties Section, In-
land Transportation Section, and Seamen's Affairs
Section.
The Telecommunications Divisicjn will be com-
prised of the Telecommunications Law and Agree-
ments Section, the Communications Section, and
the Technical Plans Section.
In addition, each of these Divisions will be su-
pervised by the Chief of the Division with the
necessary athdsers and a Planning and Coordina-
tion Section.
An organizational chart of tlie Office is attached.'
Departmental Regulations
118.11 Division of International Organization Affairs
(OA): (Effective 2-21-4(5)
I Functions. OA is given responsibility for tlie per-
formance, in behalf of the .Secretary, and in collaboration
with the Division of Protocol (PR), of the Department's
responsibilities under the International Organizations
Immnnities Act. (See DR 240.1 for a statement of the
general provisions of the Act and OA's responsibilities
thereunder. )
121.4 Division of Central Services (CS): (Effective
4-1-46)
I Functions of the Division. CS of the Office of
Departmental Administration (ODA) shall be responsible
for advising and assisting the Assistant Secretary for
Administration with respect to all phases of central serv-
ices for the Department; and for the operation of pro-
grams with respect to procurement, transportation, space
management and planning, and general services including
a verbatim and summary-reporting service, telephone
operations, vehicle control, and mechanical services.
II Functions of the Staff and Sections.
A Office of the Chief. Responsible to the Director
of OD.\ for directing the performance of the functions of
the Division.
B Assistiint Chief of the Division. Responsible to
the Chief of the Division for assistance in the administra-
tion of the Division and acts for the Chief of the Division
in his absence.
C Procurement Section. Responsible for the admin-
istration of a complete procurement program for tlie De-
partment and the Foreign Service, including:
1 Procurement of all items necessary for the opera-
tion of the Department ; formulation of prociu'ement
JUNE 23, 1946
1095
policies governing expenditures for the Department ;
and, in collaboration with the Divisions of Foreign
Service Adniinistratiou (FA) and Foreign Buildings
Operations (FBO), formulation of procurement policies
governing exjjenditures from Foreign Service funds,
consistent with existing regulations.
2 Establishment and maintenance of standard
specifications for office supplies, equipment, and ma-
terials for tlie Department, and collaboration with the
Otlice of Foreign Service (OFS) in the establishment
of similar standards for the Foreign Service.
3 Maintenance of property accountability and
inventory control of all jaroperty u.sed in the Depart-
ment in accordance with existing regulations.
4 Procurement of all printing and binding used
for administrative purposes.
5 Establishment, operation, and maintenance of a
complete reproduction service for the Department, in-
cluding off-set, mimeograpliic, hectograpliic. photostatic,
photographic, and microfilm processes ; and the design
and composition of all forms, form letters, and so forth,
used in the Deijartment.
6 Establishment and maintenance of a system of
document distribution except publications and processed
material, circular instructions, circular airgrams, and
circular telegrams to the establishments in the field.
D International Transportation and Commercial
Priorities Section. Responsible for the administration
of a complete program governing the transportation of all
civilian passengers or cargoes on planes operated by the
Air Transport Command of the Army, and the Navy Air
Transport Services, including the allocation of priorities,
and tlie determination that the travel is of sucli importance
aa to justify air travel, in accordance with existing
regulations.
1 Authorization of all international and domestic
travel of personnel for the Department and the Foreign
Service, arrange 'for such travel, determine allowable
items which may be shipped at Government expense,
and arrange such travel and shipments, including esti-
mates of cost.
E Space Management and Planning Section. Ke-
sponsible for the administration of a complete sjiace-
management planning program, including:
1 Procurement, or arrangement for the procure-
ment, of all space needed for the Department within
the continental limits of the United States.
2 Final authority to allocate space.
3 Maintenance of a scientific space lay-out serv-
ice to assure maximum efficient utilization of all space
allocated between all components of the Department.
4 Determination of policy for the Department re-
garding the maintenance, repair, and alteration of
buildings and fixtures, as well as all other matters
under the jurisdiction of the Public Buildings Admin-
istration ; coordination of that policy with the policy
of the Public Buildings Administration: and mainte-
nance of all liaison with that agency.
F General Services Section. Responsible for the :
1 Ojieration of a secretarial and reporting service
including verbatim and summary-reporting of confer-
ences and secretarial services to United States Am-
bassadors on temporary assignment in Washington, and
such other services as may be requested.
2 Procurement of all telephone and other wire
communications services for the Department, and oper-
ation of all necessary telephone services and those serv-
ices incidental thereto, including related policy decisions.
3 Operation, maintenance, and control of all pas-
senger cars and trucks for the Department, including
the determination of policy with respect to the use of
this equipment.
4 Furnishing the necessary maintenance and re-
pair services for all office equipment including the De-
partment of State code machines.
5 Establishment and maintenance of a system em-
bracing all necessary reception services in all buildings
of the Department within the continental United States.
6 Determination of the need for, issuance of, and
maintenance of adequate security equipment based on
advice and counsel of the Chief Security Officer; and
maintenance of a system for issuing and controlling
identification passes to all personnel of the Department
within the continental limits of the United States.
7 Furnishing, on reqne.st, such services as may
be in the interest of the United States Government to
delegations of foreign countries, while in this country,
when such services are authorized by the Secretary of
State.
Ill Additional Functions. In addition to the func-
tions outlined above, the Division shall be re.sponsible for
providing the following services:
A Operation of such additional administrative serv-
ices as may be determined by the Secretary of State.
B Maintenance of a sufficiently large staff to permit
the Division to furnish any of its services to any domestic
or international conference at home or abroad, when called
upon for such service by the Division of International Con-
ferences (IC) or the United Nations Organization, without
interruption of such service to the regular components of
the Department.
122.1 Office of the Foreign Service (OFS): (Effective
5-2-46)
I Corps of Foehgn Service Inspectoks.
A Functions. The functions of the Corps of Foreign
Service Inspectors are as follows :
1 To give field personnel a better understanding
of the organization, functions, plans, and policies of the
Department and of the means by which the Foreign
Service can most effectively meet its responsibilities.
2 To make objective appraisals of the efficiency
and qualifications of Foreign Service personnel.
3 To improve office organization and administra-
tion and to raise the standard of performance through-
out the Service.
4 To promote Service morale.
5 To correct faulty practices.
6 To i>rovide a personal medium through which
1096
DEPARTMENT OF STATE BULLETIN
field personnel may isuliiiiit to the Department tlieir
problems as well as their ideas for the improvement of
the Service.
7 To make specific recommendations with respect
to any Foreign Service matters in which action by the
Department is considered to be necessary or desirable.
B Chief, Corps of Foreign Service Inspectors. The
Chief shall report to and be directly responsible to the
Director of OFS. His functions are to provide:
1 Effective direction of the work of Foreign Serv-
ice Inspectors.
2 A means for evaluating and having appropriate
action taken on their reports and recommendations.
3 Liaison between Foreign Service Inspectors and
the Department.
131.24 Motion Picture Section, Division of Commercial
Policy (CP): (Effective 4-24-46)
I Functions. The Motion Picture Section ' is respon-
sible for the formulation and coordination of policy and
action in matters pertaining to the international aspects
of commercial motion pictures- and, in this connection,
shall:
A Initiate policy and action on matters relating to
official mea.sures restricting the importation, distribution,
and exhibition of American films abroad.
B Serve as a point of contact with federal agencies
and others concerned with International aspects of com-
mercial motion pictures.
183.8 Policy Committee on Arms and Armaments:
(Effective 5-20-46)
I Functions. The Policy Committee on Arms and
Armaments (hereinafter referred to as the Armaments
Committee) is responsible for the coordination of State
Department policy with respect to all asiiects of arms and
armaments.
II Composition. The Armaments Committee consists
of a Chairman who represents the Secretary of State and
who is the State Department member of the State-War-
Navy Coordinating Committee (SWNCC) on all matters
of policy dealing with arms and armaments ; a representa-
tive of the Assistant Secretary for Economic Affairs; a
repre.sentative of the OfHce of European Affairs (EUR),
Office of Near Eastern and African Affairs (NEA), Office
of Far Eastern Affairs (FE), Office of American Republic
Affairs (ARA), Office of Special Political Affairs (SPA),
and Office of Controls (CON) ; a Deputy Chairman and an
Executive Secretary, designated by the Chairman.
A The Assistant Secretary for Occupied Areas is
Chairman of the Armaments Committee.
B The Chairman may invite to the meetings of the
Armament Committee repre.sentatives of Offices who do
not hold permanent membership thereon when matters of
special interest to such Offices are being considered by the
Committee.
' Transferred from the Telecommunications Division.
III RESPONsmrEiTiEs OP Chairman and Membees.
A The Chairman shall take the Initiative in submit-
ting to SWNCC, or to any appropriate subcommittee
thereof, such policy matters with respect to arms and
armaments as may require concerted study, consideration,
or action liy the State, War, and Navy Departments. No
policy matters or decisions with respect to arms or arma-
ments shall be presented in behalf of the State Depart-
ment to SWNCC except through the Chairman or with his
concurrence.
B Each member of the Armaments Committee is
authorized to bind his Office on any matter coming before
the Armaments Committee for consideration or action.
IV Peoceduees.
A The Armaments Committee shall hold stated meet-
ings and a record of its proceedings shall be maintained.
The Chairman, with the advice and counsel of the mem-
bership of the Committee shall compile a list of projects
and studies with respect to arms and armament matters.
These projects shall be assigned for research, develop-
ment, and analysis to the membersliip of the Committee
as their respective interests may appear. Consideration
by the Committee and submission to SWNCC of any such
projects or studies shall be on the basis of relative urgency,
as determined by the Chairman.
B The Chairman of the Armaments Committee shall
prescribe the rules of conduct of the Committee and the
time and place of its meetings. All Interdepartmental
liaison by members of the Committee or of its Secretariat
with respect to arms and armaments matters shall be
accomplished as the Chairman may determine or with his
concurrence.
C The Chairman of the Armaments Committee shall
place matters on the SWNCC agenda for. consideration.
He shall recommend to the Chairman of SWNCC duly
qualified candidates to represent the State Department on
any SWNCC subcommittee appointed to consider any
matter in respect of arms or armaments, and no one shall
represent the State Department on any such subcom-
mittee without the approval of the Chairman.
D It is expected that the Armaments Committee
will formulate Departmental policy in matters of arms
and armaments b.v unanimous action; however, in the
event that unanimity cannot be attained, determination
shall be made by the Chairman. Any such determination
by the Chairman shall be final unless certified to the
Secretary's Staff Committee for review, upon the motion
of an Assistant Secretary. Such motion shall be made
in writing on not less than five days' notice and shall
state the grounds upon which review is sought.
E Technical and secretarial facilities shall be pro-
vided the Committee in the first instance by the Central
Secretariat of the Executive Staff Committees and shall
be augmented to such extent as may be necessary by
contribution of personnel and facilities by the offices par-
ticipating in the membership of the Committee. Upon
the .request of the Chairman, the Assistant Secretary for
Administration shall, to the extent necessary, in his opin-
ion, levy on any Office or Division of the Department for
such personnel and facilities as the Secretariat may
require.
JUNE 23, 1946
1097
Training Announcements
Special Motion-Picture Programs
In the belief that personnel of the Department
of State and the Foreign Service should be pre-
eminently well informed, not only about peoples
and conditions of lite in other nations but also
about the United States of America in all its
parts and all its activities, the Division of Train-
ing Services has inaugurated two series of film
showings directed toward these ends.
The first series of films, generally entitled
Other Lands and Peoples, will be shown on Tues-
day of each week. The second series, to be
shown on Thursday of each week, is generally
entitled Know Your America.
Showing of these films has been scheduled for
the noon hours in order that personnel may
attend without loss of time from their work. All
films will be run twice, at 12 o'clock and at 1
o'clock, in Room 474, main State Department
building. Length of showing is approximately
30 minutes.
The first film to be shown in the Other Lands
and Peoples series was "Know Tour Ally —
Britain", which was produced by the United
States Army to help American soldiers under-
stand their British allies.
The film scheduled for the opening of the sec-
ond series, Knoiv Tour America, is "The United
States", produced by the British Army to intro-
duce Americans to the British. It is a companion
piece to the United States Army film "Know Your
Ally — Britain", presented in the first series.
Appointment of Officers
George F. Luthringer as Director of the Ofiice of Finan-
cial and Development Policy, effective May 7, 1946.
Edward R. Gray as Assistant Adviser on European
Reconstruction and Development, Division of Investment
and Economic Development, effective May 15, 1946.
Clifford C. Matlock as Special Assistant, Division of
Lend-Lease and Surplus War Property Affairs, effective
May 15, 1946.
Joseph C. Satterthwaite as Special Assistant to the
Director, OflJce of Near Eastern and African Affairs,
effective May 21, 1946.
Thomas C. Mann as Chief, Division of River Plate
Affairs, effective May 28, 1946.
Confirmation of Charles Fahy
On June 13 the Senate confirmed the nomination of
Charles Fahy to be legal adviser of the Department of
State.
Corrigenda
In Bulletin of May 12, 1946, page 816, second
column, line 22-23, substitute "Commission of
Control, for the numbers" for "Commission of
Control. For the numbers".
In Bulletin of June 16, 1946, page 1026, first
column, second paragraph, for fifth line substitute
the following: "governmental war expenditures
and other losses of".
Contents Continued
The Department ' ^<^se
Addresses and Statements of the Week 1078
Office of Under Secretary of State for Economic Affairs. . . 1093
Departmental Regulations 1094
Organization of Office of Transport and Communications
Policy 1094
Confirmation of Charles Fahy 1097
Training Announcements 1097
Publications of the Department of State 1098
1098
Publications
of the DEPARTMENT OF STATE
For sale Ml the Si(i>criiitiii(Unt fif Documents, Oovern-
mtnt Printinr/ Offlre. Wasliiiii/lou 2.5, 1>. C. Address re-
quests direct to the Siipcrhitciidciit of Documents, except
in the case of free publications, uhich mail lie obtained
from the Department of State.
The International Court of Justice. Confer-
ence Series 84. Pub. 2491. 1G7 pp. $1.
A selection of documents fi-om the meeting of the
United Nations Committee of Jurists and also the
texts of the Statute of the Permanent Court of Inter-
national Justice and Chapter VII of the Dumbarton
Uaks Proposals.
Cultural Centers in the Other American Re-
publics. Article by Dorothy Greene and Sherly
G. Esman, Department of State. Pub. 2503. 20
pp. Free.
An explanation of the activities and studies in the
cultural centers established by local groups and U. S.
nationals abroad. (Map included.)
Report to Congress on Foreign Surplus Dis-
posal. April 1946. Pub. 2518. 54 pp.
Report of the Department of State, Office of the For-
eign Liquidation Commissioner, on the disposal of
U.S. surplus property in foreign areas. The appen-
dixes include texts of Executive orders and legislation
on surplus property.
Report of the Allied Mission to Observe the
Greek Elections. Pub. 2522. 3G pp. Free.
Reiwrt signed on behalf of the three sections of the
Mission (the United States, British, and French Gov-
ernments). The appendixes explain the scientific
sampling method used during the observation period.
Suggestions as to the Method and Character of
Representations to the Committee for Reciproc-
ity Information, Conference Series 86. Pub.
2534. 5 pp.
Suggestions offered by the Committee for Reciprocity
Information on data to be submitted with respect to
import and export items of trade agreements.
Diplomatic List, May 1946. Pub. 2527. 145 pp.
Subscription, $2 a year ; single copy 20^4.
Monthly list of foreign diplomatic representatives in
Washington, with their addresses, prepared by the
Division of Protocol of the Department of State.
DEPARTMENT OF STATE BULLETIN
Anglo-American Committee of Inquiry. Near
Eastern Series 2. Pub. 2536. 92 pp.
Report to the Governments of the United States and
the United Kingdom on (1) conditions in Palestine
relating to the ijroblem of Jewish immigration and
the well-being of peoples now living there and (2) the
position of Jews in Europe. The committee made
recommendations on the future immigration policy
and future government of Palestine. Background
information is furnished in the seven appendixes.
Paris Meeting of Foreign Ministers. Report of
Secretary Byrnes, May 20, 1946. Conference Se-
ries 86. Pub. 2537. 16 pp.
Report of the meeting of the Council of Foreign
Ministers which took place between April 25 and May
10, 1046.
International Monetary Fund. Articles of
Agreement Between the United States of America
and Other Powers — Formulated at the United Na-
tions Monetary and Financial Conference at
Bretton Woods. New Hampshire, July 1 to 22,
1944; signed at Washington December 27, 1945;
effective December 27, 1945. Treaties and Other
International Acts Series 1501. Pub. 2512.
43 pp. m.
International Bank for Reconstruction and De-
velopment. Articles of Agreement Between the
United States of America and Other Powers —
Formulated at the United Nations Monetary and
Financial Conference at Bretton Woods, New
Ham])shire, July 1 to 22, 1944 ; signed at Washing-
ton December 27, 1945; effective December 27,
1945.' Treaties and Other International Acts
Series 1502. Pub. 2511. 33 pp. 10^.
Exchange of Information on Penicillin. Agree-
ment Between the United States of America and
the United Kingdom of Great Britain and Norih-
ern Irehand — Effected by exchange of notes sig-
at Washington January 25, 1946; effective .'.e-
cember 1, 1943. Treaties and Other International
Acts Series 1506. Pub. 2521. 14 pp. 5^.
Text of agreement on the principles applying to the
exchange of information looking to the synthesis of
penicillin together with a memorandum of agreement.
A cumulative list of the publications of the Department of
State, from Oct. 1. JS29 to Jan. 1, 191,6 (pub. 21,GJi), may be
obtained from the Department of State.
U. S. GOVERNMENT PRINTING OFFICE; 1946
THE DEPARTMENT OF STATE
VOL. XIV, m. 365
JUNE 30, 1946
Draft Treaty on the Disarmament and
Demilitarization of Japan .... page 1113
Danubian Transportation Problems
Article by DORIS WHITNACK and DAVID HANDLER . . . page 1108
German Documents: Conferences With Axis
Leaders page 1103
German Assets in Switzerhmd .... page 1101
For complete contents
see inside cover
^CNT o^
'-4TES O^
THE DEPARTMENT OF STATE
BULLETIN
Vol. XIV -No. 365-
F'UBLICATION 2561
June 30, 1946
For Bale by the Superintendent of Documents
U. S. Government Printing Oflfice
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The Department of State BULLETIN,
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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 BULLETIN
includes press releases on foreign
policy issued by the Tf 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
international affairs and thefunctions
of the Department. Information con-
cerning treaties and international
agreements towhich the United Stales
is or may become a party and treaties
of general international interest is
included.
Publications of the Department, cu-
ntulalive lists of which are published
at the end of each quarter, as well as
legislative materialin the field of inter-
ruttional relations, are listed currently.
,,s«pe.KTe.oe.TO.ooco«^
Contents
Economic Affairs Page.
Disposition of German Assets in Switzerland 1101
Danubian Transportation Problems in Relation to Develop-
ment of the Basin
Article by Doris S. Whitnack and David Handler . . . 1108
U.S. -Mexican Discussions on Air-Services Agreement . . 1112
United States Delegation to the Conference on German-
Owned Patents Outside Germany 1112
Agreement for Purchase of Rubber From Far East .... 1119
Remittances to Albania Limited 1120
UNRRA Operations: Seventh Quarterly Report: The
President's Letter of Transmittal to the Congress . . 1126
General Policy
Military Assistance to China
Remarks by Acting Secretary Acheson 1115
LT.S.-Hungarian Relations
Hungarian OfKcials Conclude Visit to U.S 1120
Restitution of Property and Gold to Hungarian Govern-
ment 1120
Further Protests to Rumania on Election Matters: Exchange
of Notes Between the U.S. and Rumanian Govern-
ments 1125
Allied Mission to Observe Revision of Greek Electoral Lists:
Lelaud Morris to Head U.S. Section 1128
Visit of General von der Becke of Argentina 1 129
German Documents
German Documents: Conferences with Axis Leaders . . . 1103
Occupation Matters
FEC: Interim Reparations Removals: Privately Owned
Munitions Plants 1111
Draft Treaty on the Disarmament and Demilitarization of
Japan 1113
The United Nations
Trygve Lie Invited to Atomic Bomb Tests 1130
Treaty Information
Disposition of German Assets in Switzerland 1101
Drafting of Copyright Document by Inter-American Copy-
right Conference 1112
U.S. -Mexican Discussions on Air-Services Agreement . . 1112
United States Delegation to the Conference on German-
Owned Patents Outside Germany 1112
Draft Treaty on the Disarmament and Demilitarization of
Japan 1113
Lend-Lease and Surplu.s- Property Settlement with AustraUa. 1118
Lend- Lease Settlement W ith China 1118
Agreement for Purchase of Rubber From Far East . . . . 1119
Negotiations on German Holdings in Switzerland: Under-
standing Reached Between Allied and Swiss Govern-
ments 1121
Agreements on pjconomic and Financial Prol)lems Reached
by U.S. and Provisional French Governments .... 1127
International Organizations and Conferences
Calendar of Meetings 1111
Activities and Developments 1111
(Contents continued on page 1136)
Disposition of German Assets in Switzerland'
THE TEXT of the "Accord and Annex," consti-
tuting letters of understanding reached be-
tween the Governments of France, the United
Kingdom, the United States, and Switzerland in
negotiations held in Washington from March IS
to May 26, 1946 regarding German external as-
sets, looted gold, and other related topics, was re-
leased on June 17, 1916.^
Chief negotiators for the Allies were Randolph
Paul, Special Assistant to the President, repre-
senting the United States ; F. W. McCombe, Chief
of Charitable Institutions and presently Counselor
at the British Embassy, Washington, representing
the United Kingdom; and Paul Chargueraud.
Director of the Blocus Division of the Foreign
Office, representing France. Switzerland was rep-
resented by Walter Stucki, Chief of Foreign Af-
fairs, Federal Political Department, who also
acted on behalf of the Principality of Liechten-
stein.
In all but one respect the letters exchanged be-
tween the Allies and the Swiss are identical. The
sole difference is in paragi-aph V of the Accord, in
which the Swiss representative stated he also acted
on behalf of the Principality of Liechtenstein
whereas the Allies stated they acted on behalf of
the governments signatory to the Paris Reparation
Agreement.
The agreement as achieved attained the Allied
objective of immobilizing and liquidating German
property in Switzerland owned by Germans in
Germany or Germans dangerous enough to be
repatriated to Germany. Thus, German assets
which at some future date could have been em-
ployed as a threat to world peace will be re-
moved from a potential safe-haven. At the same
time the Swiss prerogative to exercise sovereign
authority within Switzerland is fully recognized.
The Swiss themselves will investigate property
within their borders and will liquidate the German
property as desired by the Allies.
The Allied objective of using all proceeds made
available by this liquidation for the rehabilitation
and reconstruction of countries devastated or de-
pleted by Germany during the war was only par-
tially achieved. The Swiss argued against recog-
nition of the Allied legal claim to such property.
They indicated also that their financial claims
against Germany were greater than German
claims against Switzerland. Their interest, how-
ever, in making available a contribution to re-
habilitation and reconstruction as well as in settle-
ment of these issues led them to an offer that .50
percent of the proceeds of liquidation be put at
the disposal of tiie Allies.
The third objective sought by the Allies in the
negotiations, namely the return of gold from
Switzerland alleged to have been wrongfully taken
by Germany from the occupied countries during
the war and transferred to Switzerland, was also
the subject of agreement. Although the Swiss
argued that gold acquired by the Swiss National
Bank from Gennany during the war was acquired
in good faith, the issue was resolved by Switzer-
land's undertaking to place 250,000,000 Swiss
francs (approximately $58.14 million) at the dis-
posal of the three Allied Governments payable
on demand in gold in New York. The gold re-
ceived by the Allied Governments will go into the
gold pool established by the Paris Reparation
Agreement and will be divided in accordance with
that agreement among the countries from whom
gold was looted. Therefore, neither the United
States nor the United Kingdom will share in the
pool.
In reaching this agreement, it was determined
that provision would be made for indemnification
in Reichsmarks of German owners of property
' Prepared by the Division of Economic Security Con-
trols, OflSce of Economic Security Policy, Department of
State.
' See this issue, p. 1121.
1101
1102
DEPARTMENT OF STATE BULLETIN
liquidated in Switzerland. Sucli German prop-
erty would not include looted property, since the
Government of Switzerland had long prior to this
understanding offered to aid in restoring such
property to rightful owners. As to the method
of compensation, it is intended to establish a reg-
ister in Germany which will record the names of
all owners of liquidated property. They will re-
ceive the right to the counter value of their prop-
erty in German money. The rate of excliange to
be calculated will be uniform for these cases. The
Swiss portion will be debited from the Swiss Gov-
ernment's Clearing Credit in Berlin; but it is
stipulated that no precedent for recognition of
any Swiss claims on Germany is thereby estab-
lished. The implementation and execution of this
indemnification arrangement will be left to tlie
Allied Control Authority in Germany.
To collaborate with tlie Swiss Compensation
Office in the exercise of its investigating and
liquidating functions, a Joint Commission com-
posed of repi'esentatives of the four governments
party to the understanding is to be established.
The Joint Commission will suggest inquiries re-
lating to the uncovering, the census, and the liqui-
dation of German property, and will make known
to the Swiss Compensation Office all background
information or documentary evidence available
to it. Thus material gathered by Allied investi-
gators in Germany revealing, for example, the
cloaking of German property under simulated
ownership can be forwarded to the Joint Com-
mission in Switzerland and brought to the at-
tention of the Swiss Compensation Office.
Once the property has been determmed to be
subject to liquidation, the terms and conditions of
sale will be settled by the Swiss Compensation
Office in consultation with the Joint Commission.
In so doing it will be necessary to take into account
such factors as the national interests of each gov-
ernment including those of the Swiss economy, as
well as tlie best possible price and the intent to
favor freedom of trade. Purchases will be per-
mitted only to people of non-German nationalit;y.
Provision is made in the Accord for the deter-
mination of disagreements arising in the imple-
mentation of this understanding. A preliminary
administrative review of such disagreements as
' Text of an agreement pertaining to reparation funds
for noii-rppatriable victims of German action will lie
printed in an early issue of the Bulletin.
may arise between the Swiss Compensation Office
and the Joint Commission is established in a three-
man Swiss Authority of Review presided over by
a Swiss judge. If this Authority's decision is dis-
puted by the Joint Commission, the three Allied
Governments may, M'ithin one month, submit the
difference to arbitration.
Arbitration will be conducted by an Arbitral
Tribunal composed of one member designated by
the three Allied Governments, one member desig-
nated by the Swiss Government, and a third mem-
ber to be determined by all the four Governments.
It is intended that in disputes of secondary impor-
tance the question can be submitted to the third
member alone who will then sit as the Arbitral
Tribunal. It is agreed that the Arbitral Tribunal's
decision shall be final.
The Swiss Compensation Office and the Joint
Commission will enter upon their functions as soon
as possible after the coming into force of the
Accord. But before the "Accord and Annex" can
be put into effect, it is required that the Swiss Par-
liament ratify this understanding. It is now
under their consideration.
Because of the immediate and special circum-
stances presently prevailing in Europe, the Swiss
Government agreed to permit the Allies to with-
draw immediately up to 50,000,000 Swiss francs
against their share of the proceeds of liquidation.
These advances will be devoted to the non-repatri-
able victims of German action and will be used for
their rehabilitation and resettlement. The Inter-
governmental Committee on Refugees will be in
charge of the money so obtained.^
Not all questions on the original agenda of the
Washington conference were finally determined in
the "Accord and Annex". The question of the
disposition of German official assets, including
projDerty of the Reichsbank and the German rail-
roads in Switzerland, was left for further discus-
sion. So far as the repatriation of Germans from
Switzerland to Germany is a charge on these assets,
it is understood that the official assets are being
debited for that purpose. It is not expected, how-
ever, that these official assets, which have been
estimated in the neighborhood of $13,000,000, will
be exhausted by i-ejaatriation costs.
Patents, trademarks, and copyrights of German
origin in Switzerland, too, were not subject to final
(Continiird on page 1128)
German Documents: Conferences With Axis Leaders'
Memorandum of the Interview Between the Reich Foreign Minister and the Duce, with
Count Ciano Present, at the Palazzo Venezia on May 13, 1941
Foreign Minister's Memorandum 31/41
The Keich Foreign Minister first conveyed the
greetings of tlie Fiihrer to the Duce. He wanted
first to propose to the Duce a time for the meeting
which was being planned and whicli he would like
to have take place as soon as possible. The
Brenner Pass seemed to him probably the most
appropriate place for the interview. At the mo-
ment, as the Duce could well understand, the
Fiihrer was still occupied by the Hess affair and
by several military problems, but thereafter he
would be available for a conference.
The Duce replied that he was in agreement with
all of the proposals of the Fiilirer regarding the
place and date of this conference. He was pre-
pared to come to Germany, to travel to the Bren-
■ ner, or to have the meeting take place anywhere
in Italy.
The Eeich Foreign Minister then stated that
the F'lihrer had sent him to the Duce in order to
inform the latter about the Hess incident and the
conferences with Admiral Darlan.
With regard to the Hess affair he declared that
the Fiihrer and his associates had been astounded
by Hess' undertaking. It was the act of a lunatic.
Hess had suffered for a long time from a bilious
trouble and had fallen into the hands of magnetic
and nature healers, who permitted his condition
to continue to grow worse. All these matters were
being investigated at the moment, also the re-
sponsibility of the adjutant who had known of
Hess' forbidden plane. Hess for weeks had been
taking secret practice flights in a ME-110. He
had of course acted from idealistic motives.
Treachery to the Fiihrer was out of the question.
His proceedings [which clearly bore the stamp of
infantilism] - were to be explained as arising from
a certain unworldliness, as well as from the state
of mind produced by his illness.
The Keich Foreign Minister continued that he
may well have been convinced that England faced
disaster. Only the English could not bring them-
selves to draw the necessary conclusions there-
from. With his sympathies for England he had
gotten the foolish idea of pursuading the English
to give in, by negotiations with Fascist circles in
Great Britain. He had set forth all this in a long
and rambling letter to the Fiihrer. When this
letter reached the Fiihrer, Hess was already in
England. In Germany people had hoped that
perhaps on the way some accident would happen
to him. He was, however, actually in England and
he had attempted to get into communication with
the previous Marquess of Clydesdale, the present
Duke of Hamilton. Entirely incorrectly he con-
sidered the latter as a great friend of Germany and
he had flown to the neighborhood of the Duke's
castle in Scotland. Thus at the risk of his life he
had carried through his insane plan. [He had
already for some time impressed the Keich Foreign
Minister as being out of balance mentally. Espe-
cially at the recent session of the Reichstag, during
which the Keich Foreign Minister had sat next
to him, his eyes had had a completely abnormal
' These are translations of documents on Axis con-
ferences, secured from German Government files, and
are among the German official papers which the Bulletin
is currently publishing.
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.
- This phrase stricken out in the original.
1103
7704
DEPARTMENT OF STATE BULLETIIS
look.]' The Fiilirer, who was understandably
deeply affected personally by the incident, took a
very firm stand in the matter. He had innnediately
removed Hess from his offices and he would have
liad him shot if he had returned to Germany. The
investigation of the incident was proceeding fur-
ther, but it was entirely clear that Hess had not
acted out of treachery to the Fiilirer.
The Duce replied that he also had the impres-
sion that Hess was no traitor. From the political
point of view he did not consider the consequences
of the incident as serious. He could not imagine
what Hess would have to say in England. Appar-
ently his first words when he was discovered were
to the effect that he had always had great sym-
pathy for England.
Witliout failing to recognize that psychologi-
cally the results of the Hess flight were not unim-
portant, yet one could say that the conduct of
the war and the morale in the Axis countries would
not be disturbed thereby. In three or four days
the whole episode would have been generally
passed over. The question arose as to whether
anyone in Germany had known of Hess' attitude
toward E)igland and whether Hess liad possibly
the idea of rescuing England.
The Reich Foreign Minister declared in that
connection that Hess in Germany had had a fol-
lowing principally among the less important mem-
bers of the Party, but that every German was now
asking himself how Hess could have done such a
thing. [In addition, he had apparently had con-
nections with pacifist circles. Even people like
Professor Haushofer by their intrigues had at-
tracted him more and more into their following, y
The Filhrer would first wait and see in what
way the episode was exploited in enemy pi-opa-
ganda. Witli sentiment in England and the con-
dition of tlae country as it was, Churchill could, of
course, make no propaganda use of Hess' peace
ideas; that would get him immediately into diffi-
cidties with his own people. Apparently the
English would rather base their propaganda
tactics on the idea that the whole incident was
an evidence of disunity and inner dis.sension and
a result of an ostensibly serious situation in the
Reicli and would accordingly allege that Germany
would now soon have to make peace. In case it
became necessary the Fiihrer would deliver an
energetic counter-stroke against this propaganda
' This passage stricken out in tlie original.
and possibly even summon the Reichstag to clear
up the entire incident there.
The Duce lepeated his calm estimate of the
incident and declared that it seemed best to him
also if tlie complete truth were to be told about
the whole episode.
Passing to the conversations with Admiral
Darlan, the Reich Foreign Minister told the Duce
that two subjects were gone into particularly —
(1) The help which France could supply in
Syria for the support of Iraq, and
(2) The assistance which she could give in
supplying German-Italian forces in North
Africa.
Darlan had agreed to deliver to Iraq certain
(juantities of weapons and war materials from the
supplies in storage under Italian control in Syria.
These weapons were in part already en route to
Iraq. Minister Rahn and a French official had
flown to Syria and had presented to General
Dentz, the French Commissioner there, an au-
thorization of the Vichy Government according to
wliich he was to fulfil all of the requests made by
the two envoys for deliveries or other assistance.
Additionally Darlan had made landing fields
and fuel suj^plies available for German planes.
At the same time Ambassador von Papen had
been summoned to Germany and had received (as
tlic Reich Foreign Minister could inform the Duce
confidentially) the commission to attempt to ob-
tain from the Turks jDermission for surreptitious
transit traffic in arms for Iraq across Turkish
territory.
Darlan, to judge from the impression he gave,
would certainly do everything he could to assist
the Axis. Though one could, of course, not be
certain about his inmost feelings, he definitely
ai)peared to be an enemy of the English. If
transportation of arms to Iraq in large quantities
could be successfully carried out, airborne troops
could be employed in tliose areas, who, equipped
with the supplies brought up in advance, could
operate against the English and under certain cir-
cumstances might be able to attack Egypt from
the east.
The Duce amplified his standpoint on the Iraq
question :
(1) Iraq nuits be helped at all events, since
thus a new front would be pstal)lished against
the English and the sympathy would be aroused
not only of the Arabs, but also of the majority
JUr^E 30, 1946
1105
of Mohammedans. The Grand Mufti had ah-eady
summoned the Arabs of the world to a holy war
against the English. To an interpellation of the
Reich Foreign Minister, the Duce declared that
he considered this action of considerable im-
portance.
(2) It was necessary to get control of Crete and
Cyprus (the gateway to Syria). If, then, per-
mission liad been obtained from the French for
landing of troops and planes in Syria, the as-
sistance of the Axis powers to Iraq could be of
very considerable proportions. The Italians had
already prepared five airplanes with arms, which
would travel by way of Rhodes to Baghdad to
transport thence 400 machine-guns and 20 anti-
tank guns. Also 12 fighter planes were ready to
take part.
If transport of arms through Turkey was im-
possible, the attack on England would have to be
made from Syria. The great advantage therein
lay in there being only a 100-kilometer stretch of
desert to be covered in an attack on Egypt from
Syria, against 500 kilometers of desert in an at-
tack on Egypt from the west.
To an interpellation from the Reich Foi'eign
Minister as to how long Iraq could hold out
against the English, the Duce replied that the
head of the Iraq Government had declared that
he could withstand the English if only he re-
ceived some war material. If he received no sup-
port, resistance in the Duce's opinion would be
broken in a period of three to four weeks. Be-
sides, it was a question with him whether the
GauUist movement in Syria would not place diffi-
culties in the way of France's providing aid. The
Reich Foreign Minister replied that Darlan was
apparently of the opinion that he could arrange
things in Syria as was planned.
On the subject of Tunis the Reich Foreign Min-
ister reported on the liiirchase of motor transports
and the recent arrangement that these vehicles
could be dispatched with loads to Tripolitania.
Darlan had agreed that he would provide an Al-
gerian port, Bone (since these things could be car-
ried out more easily in Algeria than in Tunis) , for
the unloading of material brought up by sea. The
Reich Foreign IVIiiiister mentioned also in this
connection that Darlan had told him that it seemed
desirable to him for reasons of internal policy
that the motor transports should be sold only to
Germany. If Italy wanted to secure that type
of vehicle from the French, he proposed that the
sale be made to Germany first and that then the
trucks be given by Germany to Italy. To this pro-
cedure the Duce and Count Ciano agreed.
To the Duce's question of what Germany had
promised France in compensation for these con-
cessions the Reich Foreign Minister mentioned a
reduction of 15,000,000 to 20,000,000 in occupa-
tion costs, which, it was true, had not yet been
finally determined, as well as certain relaxations
in respect to the demarcation line and the rearma-
ment of torpedo boats.
The Fiilirer had established the basic principle
that France could be granted concessions to the
degree that she furnished assistance to the Axis
in the war against England.
To the Duce's question of whether concessions
would be made regarding the French prisoners of
war the Reich Foreign Minister replied in the
negative and stated that the Fiihrer had reminded
Darlan at the outset how the German war prison-
ers had only been released in the year 1920, when
the World War had been over for a long time.
The Reich Foreign Minister then stated that
he had told Darlan that if France now provided
assistance for the conduct of the war against Eng-
land such an attitude would be taken into consid-
eration when peace was concluded. In addition
he had emphasized to Darlan the necessity that
France should now make a choice and place her-
self whole-heartedly on the side of the Axis system.
Germany had certain requirements regarding
naval bases in Morocco for supplying submarines
and surface craft. If France agreed, the arming
of several destroyers, which she had requested for
a long time, could be conceded. Beyond that, on
the part of Germany, large-scale assistance from
France was not expected, or even possible naval
assistance from the French fleet.
It had been made clear to Darlan that for the
future the Axis powers would be the decisive
power center of Europe and that France would
have to adjust herself accordingly. Also it had
been mentioned that France would naturally have
to count on having to make concessions in the
Mediterranean area in the peace treaty. The Ital-
ian claims were already known to her. She might,
however, receive compensations for these cessions
elsewhere, at the expense of England, e. g., in
Africa.
In a confidential interview, after the Reich For-
eign Minister had explained to him the three pos-
sibilities confronting France, Darlan had stated
1106
DEPARTMENT OF STATE BULLETIN
to the Reich Foreign Minister that under any cir-
cumstances he wished to aid the Axis powers
against England. There was the possibility that
France might work against Germany. In that
case she would be destroyed. Or she might adopt
an attitude of reserve, which would also result to
her disadvantage. Lastly, she miglit give clear
proof of her will to collaborate with the Axis,
whereupon she would take an honorable place
among the peoples of Europe.
The Duce replied that there were two camps in
J'rance, those who wanted to wait and those who
came out for collaboration. When the war in
Yugoslavia began people in France had hoped
that it would turn out unfavorably for the Axis.
The attitude of the French politicians had been
hesitant. Regarding the state of public opinion,
it was significant that in those days the memorial
to King Alexander of Yugoslavia in France had
been bedecked with ilowers by the public. How-
ever, as tlie French saw how speedily the Germans
were victorious in the Balkans, they had im-
mediatel}' switched back to collaboration. Even
in Vichy most people belonged to the camp of
those who wished to await developments. Count
Ciano added here that the only difference between
Vichy and Paris was that in Paris people said,
"Let us hope the English win", while in Vichy
they said, "Let us hope the English swine win".
The Reich Foreign Minister remarked that nat-
urally there were still Chauvinists in France who
must be eliminated as a continuing source of
danger. Petain, in his opinion, was an old fox,
who suffered loss of memory at just such moments
as suited him best. A few days ago in connection
with the invitation of Admiral Darlan to the
Berghof, he had written a letter to the Fiihrer,
which contained nothing of consequence, but
whicli indicated that it was now becoming gener-
ally cleai-er in France that the war had been finally
lost. The Fiihrer held the view that at all events
the final victory against England must be at-
tained. To this end he desired that a maximum of
concessions be granted to F'rance, without pledg-
ing himself definitively in any way. The French
question was being handled on that principle and
it would now be seen how far Darlan was willing
to go on that path. As had been noted already,
however, concessions would be only granted item
for item in return for assistance in the fight
against England. Whether France would take
part to a large extent in the struggle against
England remained inidetei-mined.
In that connection the Duce remarked that
France could perform many small but very im-
portant services for the Axis. He emphasized in
this relation that France always aiDproached the
Axis more closel^y when the Axis was victorious.
When things were not going right, however, she
exchanged loving glances with England and the
LTnited States. Special attention shoiild be given
to the latter in this connection. The Reich For-
eign Minister agreed and remarked that if
France could somehow be aligned in the Axis or-
ganization, it would make a deep impression on
the United States.
The Duce agreed with this idea, alluding to the
policy exjDressed by the Fiihrer of uniting all
EuroiDe against England. Onlj' Russia and Spain
were missing from this united front. Serrano
Suner had, it was true, declared that Spain would
enter the war after this year's harvest. This
seemed to him, however, highly doubtful. The
Reich Foreign Minister remarked that unfor-
tunately, at the beginning of this year. Franco had
left the Axis in the lurch. He would have to say
that to his great regret. If Franco had come
along at that time, Gibraltar would by now have
been seized from the English and the Spanish
people would likely have had much more to eat
tlian now, when nothing could be gotten by way
of alms from England and America.
The Duce resumed his remarks on the subject
of the united front of Europe against England
and the two nations missing therefrom, Spain and
Russia, by again declaring that it seemed to him
to be advantageous if a policy of collaboration
with Russia could be carried out. He asked the
Reich Foreign Minister whether Germany con-
sidered such a policy, i. e., collaboration with
Russia, as impossible. The Reich Foreign Min-
ister replied that Germany had treaties with
Russia and that aside from that the relations be-
tween the two countries were correct. He per-
sonally did not believe tliat Stalin would under-
tfdie anything against Germany. If he did, or if
he pursued a policy which Germany could not
tolerate, he would be destroyed within three
months. The Duce agreed to this. The Reich
Foreign Minister continued that the Fiihrer
would certainly not seek a quarrel ; he had, how-
ever, made preparations for all eventualities. He
had come to no final decisions, but he had become
JUNE 30, 19-16
1107
distrustful on account of certain happenings and
obscurities on tlie Russian side. Thus, for exam-
ple, the Russians had strengthened their troops on
their western boundary, which naturally had im-
pelled Germany on her part to increase the
numbers of her troops, only, however^ after Russia
had made a beginning.
Russia would certainly never be a problem
which could influence the final victory over Eng-
land. Russia could never prevent Germany from
achieving this, for Germany had so many troops
available that she was prepared to cope immedi-
ately with all eventualities.
The Duce inquired whether Germany did not
receive raw materials from Russia, whereupon
the Reich Foreign Minister quoted figures of
1,000,000 tons of oil and 1,500,000 tons of grain
and added that these deliveries were coming in
comparatively well.
In the further course of the conversation the
subject of Japan was touched on and especially
the Japanese-American exchange of views. The
Reich Foreign Minister stated that the principle
that Japan shai-ed a common destiny with Ger-
many and Italy had been so clearly understood by
the Japanese that he did not think that Japan
would pursue a policy that would not in the end
align itself once more with the policy x^ursued
by Germany and Italy. The Reich Foreign Min-
ister referred in this connection to the remark of
Matsuoka that he was frequently forced as a re-
sult of internal politics into maneuvering and
perhaps into doing some things which miglit not
be readily understood in Germany. He trusted
Matsuoka, though he could not, of cour.se, see
what was in his heart. He was not pleased that
the conversations with President Roosevelt were
carried on by Admiral Nomura, for Nomura was
inclined at heart toward the Anglo-Saxons.
Matsuoka had first put the following further in-
quiries: (1) whether the United States were will-
ing to enter into an undertaking not to enter the
European conflict; (2) what was the attitude of
the United States on the problem of the Philip-
pines. If, contrary to expectations, Japanese pol-
icy followed a course contrary to the spirit of
the Three Power Pact, general opposition on a
large scale would certainly arise in Japan and
Ambassador Oshima would probably become the
soul of a real revolution. These matters must b?
handled carefully so as to avoid causing Matsuoka
unnecessary difficulties.
The whole affair showed that Roosevelt was be-
ginning to become alarmed, probably because he
was gradually realizing that in case of warlike com-
plications he could accomplish nothing because of
America's bad armament position and therefore
wished to keep his back free.
The Duce remarked that it would certainly be
advantageous for Germany and Italy if Matsuoka
in this way kept the United States from entry into
the war. On the other hand the basis for his course
could also be the desire of Japan herself to remain
out of the war.
The Reich Foreign Minister remai-ked that if a
strong attitude were adopted and the declaration
made that American protective convoys meant war,
the Americans would probably hesitate, for Amer-
ican rearmament was the biggest bluff in the
world's history.
The Duce referred in this connection to the
division which had arisen in the United States
and cited the speeches of Hoover and Lindbergh
as those of the most prominent opponents of the
Roosevelt policy. On the other hand, however,
were the Jews, and their propaganda was so strong
that they had gotten the whole of America under
their influence. However, if a struggle arose in a
country between a war party and a peace party,
the war party generally won, since war was closer
to the souls of men than peace.
The Reich Foreign Minister replied that the
same naturally held good for Japan and he ex-
pressed the conviction that Japan sooner or later
would enter the war on the side of the Axis powers,
in order to seize the best opportunities open to her.
He was absolutely sure that Japan would honor
her treaty obligations.
In conclusion the Duce came to the subject of
Turkey, which he described as Germany's and
Italy's best card. He asked the Reich Foreign
Minister whether he believed that Turkey would
go along with Germany and Italy.
The Reich Foreign Minister replied that on
Germany's part attempts had already been made to
influence Turkey in that direction. The predis-
posing factors were favorable, in that Turkey had
no interest in allowing larger massing of English
troops in Iraq, so that Germany had hopes of being
able to bring the Turks over to her side. A certain
improvement in the attitude of the Turkish press
could ahead}' bs observed.
{Contiiinnl on pane 112Ji)
1108
DEPARTMENT OF STATE BULLETIN
Danubian Transportation Problems in Relation to
Development of the Basin
Article bv DORIS S. WHITNACK and DAVID HANDLER '
ALTHOUGH the Danube is one of the world's
longest navigable rivers, draining f)art of
seven populous countries," it has never carried a
large vohane of traffic, either in relation to other
rivers and canals in Europe or in relation to its
capacity. Failui-e of riparians to develop and
utilize the actual and potential economic advant-
ages of the river as a cheap artery of commerce has
had serious repercussions on a large region of
southeastern Europe, whose low income can be
traced in a significant part to its lack of adequate
and efficient low-cost transportation. With the
exception of Rumanian petroleum, the bulk of the
area's trade consists of agricultural, mineral, and
forest products which must be transported
cheaply if they are to move at all over any distance.
The selling price of such raw materials in relation
to their weight and bulk is not sufficient to sup-
port high transport charges, hence the extent of
the market is limited by the rate level. Since river
transport is cheaper than other forms of inland
transport, the improvement of navigation facili-
' Mrs. Whitnack is head and Mr. Handler is a member
of the Transiiortatioii and ronuuunication Section in the
Division of International and Functional Intelligence,
OfHce of Intelligence Coordination and Liaison. Depart-
ment of State.
' On the basis of jjre-war bonndaries.
' In addition to these bodies there was a special sub-
coniinissidu for the Iron (Jates and The Middle Danube
Technical Hydraulic ('ommission. The functions of the
latter were not directly cdiicerned with navigation.
ties and the development of Danube shipping
would constitute a major facilitating factor in the
economic rehabilitation of southeastern Europe.
By making possible an expansion of trade and the
development of a shipping industry, riparian
states could realize increases in national produc-
tion, employment, and income which might then
be available for increasing the purchasing power
and standard of living of the people and woidd
also provide domestic sources of investment capital
for industrial development. Should the power
resources of the area be exploited and industriali-
zation i^romoted, the availability of inexpensive
water transportation and its coordination with
other forms of inland carriers would be an invalu-
able asset for economic improvement of the whole
basin particularly in the develoijmental stages of
industrialization.
Prior to the war, regulation and improvement of
Danube transportation was primarily the respon-
sibility of two commissions, the International
Danube Connnission and the European Commis-
sion of the Danube.^ These commissions had at-
tained a considerable measure of success in secur-
ing freedom of transit, prohibition of excessive
and discriminatory charges for river and port
facilities, simplification of customs formalities,
improvement of navigability in the Iron Gates
sector and the Sulina channel, unification of traffic
rules and regulations, etc. The river is at present
controlled bv militarv authorities in both the
JUNE 30, 1946
1109
American zone in Germany and Austria and the
Soviet zone downstream, but when occupation and
military control is ended, it will be desirable that
any future civilian commission maintain accom-
plishments which were achieved only with con-
siderable difficulty over a great number of years.
Although much was accomplished prior to the
war, the nationalism of the Danubian states and
lack of necessary funds made it difficult for the
commissions to overcome a number of the most
serious obstacles to maximum utilization of the
river. Technical and theoretical freedom of navi-
gation and transit benefited the river basin very
little as long as riparians wei'e either unwilling or
unable to provide the works necessary to make
possible safe, efficient, and low-cost vessel opera-
tion and as long as they continued to impose eco-
nomic measures designed to divert traffic from the
river and to protect high-cost domestic water
carriers.
Without numerous technical worlis, the cost of
transportation on the Danube cannot be reduced
to the low levels which would provide a great
stimulus to trade witliin the region and even with
other parts of the world. Constant or overhead
costs ai-e ordinarily a substantial part of total cost
of conducting water operations. Since hazards
forced layover of vessels for one-half to one-third
of the year, it follows that unit operating costs
were necessarily high. In the upper course of the
river fi'om Gonyii to Ratisbon, night navigation
was possible only in the upstream direction, and
in the Iron Gates sector there was no night naviga-
tion at all. These conditions also added to cost
and lengthened transit time, which under the best
conditions is relatively greater on waterways than
on railways and often makes water service less
desirable to shippers. The need for engineering
works has of course been increased by neglect and
damage during the war.
Tlie volume of the Danube changed in diti'erent
seasons, but there was enough water at all times
to provide adequate levels for ordinary river ves-
sels if the proper engineering woi'ks had been un-
dertaken. Reefs and silt reduced depth and
delayed large barges or prevented full loading
in seasons of low water, and in some sectors the
lack of a fixed channel without a relatively con-
stant depth necessitated pilotage or a good system
of shore and channel markers and lights. In the
future the elimination of navigation hazards bv
the institution of engineering works, such as dams
and locks and regular dredging programs, would
reduce costs by decreasing transit time, eliminat-
ing pilotage, permitting greater pay loads, and
lessening the risk of damaging or losing vessels —
which in turn would lower insurance rates and
might enable operators to use smaller crews.
Port and bunkering facilities and winter shel-
ters were inadequate even before the war. Load-
ing and unloading devices were few in number
and general]}' antiquated. Lack of wharfage and
warehousing facilities prevented maximum smooth
flow of trade and impaired the coordination of
rail and river transport. When both vessels and
cars were relatively scarce, it should not have been
necessary to use any of them for storage pur-
poses. It is evident that unless piers, wharves,
or docks are adequate in number and conveniently
located, shippers sometimes find water transport
inappropriate for their needs. Insufficient bunk-
ering facilities necessitated the reduction of pay-
load to accommodate large quantities of fuel, lead-
ing to an obvious reduction of revenue and in-
crease in unit costs. Winter havens were also
scarce, and a great portion of those in existence
were not open to public use. Therefore, naviga-
tion was very hazardous and generally restricted
during the months when floating ice and swift
currents were prevalent.* This risk also resulted
in service curtailment which would not have been
necessary had there been sufficient winter havens
located at frequent intervals along the way and
had these been made available to all vessels. Be-
cause facilities of the types mentioned above were
scarce and generally provided by operators for
their own use, only large or nationally subsidized
companies with substantial capital were able to
enter the field. This condition restricted entry of
small operators ^ and contributed to the formation
of large combines whose monopolistic power was a
threat to consumer interests because there were
inadequate regulatory safeguards.
The hazards imposed by the dangerous reefs
and swift current of the Iron Gates were never
' The icing period varied for different sections of the
river and was of course longer in some years than in
others. In general, however, icing has disturbed the main
flow of traffic from December to March.
''There were a number of small-scale Greek companies
on the Danube, but their operations were confined pri-
marily to the lower section of the river.
1110
DEPARTMENT OF STATE BULLETIN
adquately overcome. Long delays were common,
and there was no night navigation in some sec-
tors. Locomotive haulage was necessary for up-
stream traffic, but even with this assistance, barge
trains had to be broken up and then reassembled
above the rapids. These conditions also operated
to increase costs substantially, and in the event of
increased traffic during peak seasons, the Gates
sometimes proved a serious bottleneck.
If the aforementioned pre-war difficulties and
the further problems arising as a result of the war
are to be overcome and lower-cost river transport
made possible, a number of serious stumbling-
blocks must be removed. Probably the most se-
rious problems were connected with the traditional
reluctance or financial inability of riparians to
cooperate in the execution of an international plan
for i^ort and river works. Aside from differences
of opinion on the desirability of particular proj-
ects, many states lacked the funds required for
improvements and considered that their sover-
eignty would be jeopardized if another state con-
structed the works. Private capital, which might
have been attracted to port development, was
either excluded or discouraged by the refusal
of riparian states to grant adequate guaranties
of undisputed possession. Another major prob-
lem affecting transportation-works programs arose
from the necessity for coordinating such programs
with the needs of other river interests such as
power, irrigation, and flood control.
In addition to technical physical factors which
imjDeded navigation and raised operating costs,
numerous economic factors militated against full
utilization of the river. Development and regula-
tion of the Danube has been in the past, and will
probably continue to be, a regional rather than a
national problem and should be treated as such
if any measui'e of success is to be obtained. Ri-
parians have, however, imposed economic and
political measures in order to maximize their indi-
vidual benefit from their portion of the river.
These measures have hampered the development
of the Basin as a whole and in the long run have
reacted to the detriment of the individual states.
A number of the Danubian states took steps to
foster and protect their national shipping indus-
tries through subsidies and restriction of foreign
entry into the cabotage trade. The resulting or-
ganization of shipping companies on the river
produced high-cost operations because there were
neither the economies of regulated integrated
large-scale operation nor the advantages of free
competition which could result in the elimination
of inefficient and high-price transportation. These
operating conditions coupled with physical diffi-
culties mentioned above almost precluded profit-
able small-scale operation, with the result that in
the decade before the war, Danube shipping was
dominated, by several large cartels. Although
rational application of geography and economics
suggests numerous advantages for monopoly on a
regional basis, some form of regulation in the
economic sphere might be desirable for the pro-
tection of the interests of shippers and individual
states.
To carry a large volume of traffic a river must
have a coordinated feeder system of roads and rail-
roads. Railroads, however, were more often dis-
posed to transfer traffic to other railroads and to
compete with the waterway than to cooperate in
the coordination and rationalization of the trans-
port system. Rail-Danube rates and through bills
of lading wei'e not provided on enough routes to
facilitate, expedite, and promote the interchange
of traffic between rail and water carriers. Many
rail tariffs quoted rates designed to draw traffic
from tiie river in order to lengthen the haul on
nationally owned railroads, thereby increasing
government revenues. Rebates or low rates were
offered in Hungary to shippers who used rail
transport exclusively. Political considerations in
several cases dictated the establishment of special
low rates favoring routes competitive with the
Danube, for example, the special rail rates designed
to induce the movement of Czechoslovakian foreign
traffic by rail to the port of Trieste, and German
rates designed to move traffic out of Hamburg or
Bremen rather than down the Danube.
Past experience indicates that the practice of
using rates as an instrument of national policy
should be carefully examined in each instance to
determine whether the use of uneconomical trans-
portation is compensated by other considerations
such as national welfare and at the same time is
not inimical to the intei'ests of the region as a
whole. Before the transportation system of the
Danube Basin can perform efficiently and make
its maximum contribution to the region, rail, road,
and river services must be coordinated in such a
way that the distinctive inherent advantages of
each are preserved.
International Organizations and Conferences
Calendar of Meetings
Wasliington
Far Eastern Commission _
Council of Foreign Ministers:
Meeting of Foreign Ministers Paris
Meeting of Deputies Paris
Allied-Swedish Negotiations for German Exter-
nal Assets Washington
Inter-American Conference of Experts on Copy-
right Washington
ILO: 28th (Maritime) Session of the Interna-
tional Labor Conference Seattle
Proposed International Emergency Food Council Washington
U. S.-Mexican Discussions on Air Services Agree-
ment Mexico City
Conference on German-Owned Patents Outside
Germany London
The United Nations :
Secui-ity Council ' New York
Military Staff Committee New York
Sjjecial Committee on Refugees and Displaced
Persons . London
Economic and Social Council New York
Commission on Atomic Energy New York
International Health Conference New York
General Assembly : Second Part of First Session New York
February 26
June 15
May 27 — temporarilj' adjourned
May 31
June 1
June 6-29
June 20
June 24
July 10
March. 25
March 25
April 8-June 1
May 25
June 14
June 19
September 3
The dates in the calendar are as of June 23.
Activities and Developments
Far Eastern Commission
Interim Reparations Removals : Privately
Owned Munitions Plants ^
1. Pricately orvned Munitions Plants
(Definition: Privately owned plants and estab-
lishments primarily engaged in manufacture of
weapons, missiles, ammunition, and military ex-
plosives.)
All facilities within this category that were
originally organized for munitions production, or
were converted to munitions production through
such major change in the volume and character of
their equipment as to render them unsuitable for
reconversion to peacetime purposes, should be
made available for claim, subject to the following
limitation :
a. Special Purpose Maehinei'y and Equipment.
All machinery, equipment, and accessories, which
by virtue of initial design, construction, or major
structural change, are, as individual items, of spe-
cial purj^ose in nature and functionally limited to
' Approved by FEC on June 20, 1946.
nil
1112
use in connection with the manufacture of equip-
ment or supplies for war or warlike purposes,
should be held pending further instructions con-
cerning their disposition.
Drafting of Copyright Document by Inter-
American Copyright Conference. The Commit-
tee of the Whole of the Inter- American Copyright
Conference^ now meeting at the Pan American
Union had before it for consideration and ap-
proval the draft of a proposed instrument. This
document is the result of the work of the sub-
committeees which have been in session daily since
the Conference opened.
The Coordinating Committee lias been working
actively in trying to reconcile the different ap-
proaches to the subject which have become ap-
parent. The principal points of difference that
have developed revolve around copyright regis-
tration and the inalienability of authors' riglits.
The Latin American Delegations generally take
the position that the moral right cannot be alien-
ated, while the position of the United States is
that this may be done under certain circumstances.
A few delegations also advocated the abolishment
of all foi-malities, while others maintained that
registration if required by the country of origin
should be maintained as a prerequisite to copy-
right protection in the other contracting states.
The Conference has also approved that notice of
copyright protection no longer need appear in a
book or other work in order that the author may be
protected.
The delegations from the other American re-
publics also are unanimous in their disapproval
of the use of their works in juke boxes. Under
current practice the author receives no royalty for
music played through the medium of slot machines.
It is their feeling that if any profits are derived
therefrom, the author has a right to share in
same.
All the delegations are in complete agreement as
to the right of an author to safeguard the transla-
tion of his work. Heretofore some countries have
openly disregarded such rights.
Despite the intricacy of the subject and diffi-
culties which obviously must be overcome, there is
' Released to the press by the Pan Ameritiin Union on
June 13.
' Released to the press .Tune 17.
' Released to the press June 21.
DEPARTMENT OF STATE BULLETIN
evident in all the representatives of the 21 re-
publics a desire to harmonize their differences.
They are eager to draft a document which, when
submitted to their governments, may have a good
possibility of being ratified, thus bringing increas-
ing order and cooperation to the field of copyright
in the Americas.
U.S.-Mexican Discussions on Air-Services
Agreement.- The Department of State announced
that discussions between the United States and
Mexican Governments, looking toward the conclu-
sion of a bilateral agreement for reciprocal air
services between the two countries will take place
in Mexico City beginning June 24. These con-
versations are a sequel to discussions on the same
subject which were held in "Washington in October
of last year.
A delegation from the United States will assist
the American Embassy at Mexico City in these
negotiations. The Civil Aeronautics Board will
be represented by Oswald Ryan, Vice Chainnan
(who will head the delegation) ; George Neal,
pre.sently General Counsel; Emory T. Nunneley,
Jr., General Counsel-designate; and John Sher-
man, International Counsel. The Department of
State will be represented by Joe D. Walstrom,
Acting Chief, Aviation Division, and William G.
MacLean of the Division of Mexican Affairs.
Members of the Embassy staff at Mexico City
who will also participate in the talks will be
Merwin L. Bohan, Counselor for Economic
Affairs, and Robert W. Bradbury, specializing
in civil-aviation matters for the Embassy.
Representatives of the five United States air-
lines who already operate or plan to operate serv-
ices to Mexico will serve as unofficial advisers to
the United States Delegation.
United States Delegation to the Conference on
German-Owned Patents Outside Germany,
which was approved by the President, was an-
nounced by Acting Secretary Acheson on June
21,^ as follows :
Delegate :
Casper W. Ooms, United States Commissioner
of Patents.
Advisers:
Bennett Boskey, Adviser, Division of Economic
Security Controls, Department of State.
(Continued on page 1129)
The Record of the Week
Draft Treaty on the Disarmament and Demilitarization of Japan
[Released by the press June 21)
On April li'J, 19i6 in Paris the Secretary of
State released to the press the text of the United
States Draft Treaty for the Disarmament and
Demilitarization of Germany. He also announced
at that time that a similar draft prepared by the
United States with respect to Japan had been cir-
culated to interested Governments. The Draft
Treaty for Japan, which has been circulated to
the Governments of China, the Soviet Union, and
the United Kingdom, is released for publication
herewith :
Draft Treaty on the Disarmament and De-
militarization OF Japan
Preamble
The Governments of the United Kingdom,
China, the Union of Soviet Socialist Republics
and the United States have declared their inten-
tion to effect the total disarmament and demili-
tarization of JajDan. This intention was expressed
in the Potsdam Declaration of July 26, 1945. In
substantial measure, it has already been fulfilled.
Nothing shall prevent or delay the completion of
the process. It remains to ensure that the total
disarmament and demilitarization of Japan will
be enforced as long as the peace and security of
the world may require. Only this assurance will
permit the nations of Asia and the world to return
singlemindedly to the habits of peace. To achieve
this objective, the governments of the United
Kingdom, the Republic of China, the Union of
Soviet Socialist Republics, and the United States
agree to engage in the common undertaking defined
in this treaty.
Article I
The High Contracting Parties agree that they
shall take steps jointly to ensure that:
(a) All Japanese armed forces, including land,
air anti-aircraft and naval forces, all para-military
forces, such as the Gendarmerie (Kempei Tai),
the Garde Mobile (Keipei Tei) and the Special
Police (Tokka Ka) , and all organizations auxiliary
to the foregoing shall be and shall remain com-
pletely disarmed, demobilized and disbanded.
(b) The Japanese Imperial General Head-
quarters, the staffs of the Army and the Navy, and
the staffs of any para-military organizations shall
be and shall remain disbanded.
(c) No Japanese military or para-military or-
ganizations in any form or guise shall be permitted
in Japan.
((/) The manufacture, production, or importa-
tion of military equipment in Japan shall be pre-
vented. In particular, the High Contracting
Parties shall prevent the manufacture, produc-
tion, or importation of:
(1) All arms, ammunition, explosives, military
equipment, military stores and supplies and other
implements of war of all kinds ;
(2) All fissionable materials for any purpose,
except under conditions approved by the high con-
tracting parties;
(3) All naval vessels of all classes, both surface
and submarine, and auxiliary naval-craft ;
(4) All aircraft of all kinds, aviation equip-
ment and devices, and equipment for anti-aircraft
defense.
(e) The establishment, utilization or operation
for military purposes of any of the following
shall be prevented :
(1) All military structures, installations and
establishments, including but not limited to mili-
tary air fields, seaplane bases, and naval bases,
military and naval storage depots, permanent and
temporary land and coast fortifications, fortresses
and other fortified areas;
(2) All factories, plants, shops, research insti-
tutions, laboratories, testing stations, technical
data, patents, plans, drawings and inventions, de-
signed or intended to produce or to facilitate the
production of items listed in the paragraph (d)
above.
(/) Under conditions which may be established
1113
1114
DEPARTMENT OF STATE BULLETIN
by the High Contracting Parties, the demilitari-
zation and disarmament required by this Article
shall be subject to the following exceptions and
to no others :
(1) The formation and employment of such
detachments of Japanese civil police, and their
equipment with such types and quantities of im-
l^orted small arms as may be essential to the main-
tenance of ijublic security; and
(2) The importation of minimum quantities of
those items listed in paragraph {d) (1) above,
such as explosives or ingredients of explosives,
■which may be essential for purposes of construc-
tion, mining, agriculture, or for other peaceful
purposes.
Article II
To implement the disarmament and demilitari-
zation provisions set forth in Article I, the High
Contracting Parties agree that they shall make
provision for a system of quadripartite inspection,
which shall become operative upon the termina-
tion of the Allied occupation of Japan. This sys-
tem of inspection shall be conducted through a
Commission of Control to be established by the
High Contracting Parties on a quadripartite basis.
The Commission of Control, through its officers
and agents, shall conduct, in any and all parts of
Japanese territory, such inspections, inquiries and
investigations as it may deem necessary to deter-
mine whether the disarmament and demilitariza-
tion provisions set forth in Article I are being
observed.
Article III
The High Contracting Parties agree that for
the duration of the period of Allied occupation of
Japan, they shall support the strict enforcement
of the disarmament and demilitarization provi-
sions set forth in Article I. They agree further
that the express acceptance by Japan of the pro-
visions of Articles I and II shall be an essential
condition to the termination of Allied occupation
of Japanese territory.
Article IV
The Commission of Control provided for in Ar-
ticle II shall keep the high contracting parties and
the Security Council of the United Nations in-
formed of the results of the inspections, inquiries
and investigations authorized by that article. The
Commission of Control shall submit a report to
tlie high contracting parties whenever in the opin-
ion of a majority of the members of the Commis-
sion, it has reason to believe that a violation of the
disarmament and demilitarization provisions of
Article I has occurred or is about to occur. In
conjunction with such report the Commission shall
submit a recommendation for action on the part
of tlie high contracting parties which appears ap-
propriate to a majority of the members of the
Commission. Upon receipt of such report and rec-
ommendation, the high contracting parties will, by
common agreement, take such prompt action —
including action by air, sea or land forces — as may
be necessary to assure the unmediate cessation or
prevention of such violation or attempted viola-
tion. The high contracting parties shall immedi-
ately report to tlie Security Council of the United
Nations the action taken or to be taken.
The high contracting parties agree that, within
six months of the effective date of this treaty, they
shall consult for the purpose of negotiating special
quadripartite agreements which shall provide in
the greatest practicable detail for inspection, in-
quiry and investigation by tlie Commission of Con-
trol, for the numbers and types of forces which
each party shall make available for purposes of
this treaty, for their degree of readiness and gen-
eral location, and for the nature of the facilities
and assistance which each shall provide. Such spe-
cial quadripartite agreements shall be subject to
ratification by the high contracting parties in
accordance with their respective constitutional
processes.
Article V
This treaty shall be ratified by the High Con-
tracting Parties in accordance with their respec-
tive constitutional processes. The ratifications
shall be deposited with the Government of
, which shall notify all the High Contract-
ing Parties of each deposit. This treat j' shall come
into force upon the deposit of ratifications by each
of the High Contracting Parties. This treaty
shall remain in force for a period of twenty-five
years from its effective date. The High Contract-
ing Parties agree to consult six months before the
date of expiration of this treaty for the purpose of
determining whether the interests of international
peace and security require its renewal, with or
without modification, or whether the Japanese
people have so far progressed in the reconstruc-
tion of their life on a democratic and peaceful basis
that the continued imposition of the controls
defined herein is no longer necessary.
IVi\E 3(1. lUh
Military Assistance to China
Remarks by ACTING SECRETARY ACHESON "
1115
Mr. Chairman and Members op the Committee :
I am hei-e today to speak briefly about H. R.
67D5, which will provide for military advice and
assistance to the Republic of Cliina. The Chinese
Republic has been at war with our enemies for a
longer period than any of the other Allies and
fought valiantly to halt mounting Japanese ag-
gression before we entered the war. Now that
Japan has been defeated, China must turn again,
after eight years of fighting, to the rebuilding and
reconstruction of her land. But the end of the
war has not solved all of the war's problems in
that vast country.
Weakened from years of occupation and war-
fare, one of the principal problems which faces
the Chinese Government is the restoration of order
at home and the repatriation of enormous numbers
of Japanese soldiers who were on Chinese soil at
the time of the surrender. China had to work
toward a solution of this problem and also seek
fjuickly to i)iovide herself with the means of meet-
ing her obligations under the United Nations
Charter foi- the preservation of peace.
From the time of the passage of the Lend-Lease
Act, the Chinese military forces have received
American sup]:)lies and equipment and have been
provided training by American military missions,
By these means, China was able to contimie to
fight, and the war effort was measurably advanced
because tlie Chinese military forces became ad-
justed to the use of our techniques and our sup-
lilies. In the Twenty-second Report to Congress
on Lend-Lease Operations, it is stated that from
Y-J Day through February 1946, $600,000,000
worth of supplies had been furnished to China.
I think it is helpful in considering a bill which
will permit the extension of further aid to the
Cliinese to review briefly the efl'orts this country
lias made to assist the Chinese in combating Jap-
;Miese aggression. It is a story of which we can
be proud and one which serves to illustrate most
vividly the tremendous advantages to world peace
which can accrue if this collaboration in the in-
terest of both countries can continue. General
Marshall has now been in China since last Decem-
ber, seeking to effect an agreement between the
various Chinese groups in the interest of peace.
700202—46 3
He has made a great deal of progress, and it is
certainly urgently necessary that we be in a posi-
tion to provide the additional aid which General
Marshall may feel is required if the agi-eement he
is seeking is to be concluded and the Chinese are
to proceed with us under the United Nations Char-
ter to an orderly world.
Shortly before Pearl Harbor, the first lend-lease
materials were shipped to China, and the Army
sent Brigadier General John Magruder to advise
and assist the Chinese in the utilization of these
materials. A few months later, General Stilwell
replaced General Magruder, and at Generalissimo
Chiang Kai-shek's request General Stilwell was
api)ointed Chief of Staff to the Generalissimo
shortly after his arrival.
The early war years were a period of dark
despair for the Allied cause in the Far East. The
Japanese landed successfully on both coasts of the
^lalay Peninsula and drove steadily southward.
This campaign ended in the capture of Singapore.
Still other Japanese troops advanced up through
the Burma jungles and captured the Burma teimi-
nal of the life-line of China — the famous Burma
Road. With this event, the already meager supply
line to China was cut off, and outside aid was re-
duced to a trickle. In this desiderate situation, the
Generalissimo turned to the American forces for
assistance. The Generalissimo agreed to furnish
Chinese troops if we could supply ecjuipment and
training.
By this time the flights over "the Hump" had
begun, and approximately five Chinese divisions of
ten to twelve thousand men each were transported
by air to India where a training center was set up
at Ramgaih. This incredible feat brought to the
Allies fresh manpower which could be speeded to
the furthermost point of Japanese penetration
after training in small-unit tactics as well as the
basic fundamentals of soldiering according to our
American standards. This training included In-
fantry, Artillery, Armor, Signal Corps and
Transportation Corps type units. With these
forces trained at Ramgarh, which were commonly
i-eferred to as the "X forces"', we had the support of
' Made before the House Foreign Affair.? Committee on
June 10, 1946 and released to the press ou the same date.
1116
DEPARTMENT OF STATE BULLETIN
a powerful body of troops which, combined with
our own limited forces, were able eventually to
expel tlie Japanese f I'om northern Burma and open
the Burma end of the Burma Road. By this means
we accomplished one of our principal objectives far
earlier than if we had been forced to wait for fresh
troops from this country or elsewhere.
The training of Chinese troops in Burma having
proved so tremendously successful. General Stil-
well initiated the so-called "39-Division Progi-am"
in China, and General Wedemeyer, who succeeded
him, abl}' carried it forward. This was a critical
period for the Chinese. StejD by step they had
been driven back from the sea coast and the prin-
cipal industrial cities of central China. In order
to combat this withdrawal as effectively as possible,
U. S. officers were sent to China, and a training
center was established at Kimming where training
similar to that given at Ramgarh was started.
The forces trained in this Kunming area were given
the titles of the "Y forces".
Major General Claire L. Cliennault, who had led
the famous Flying Tigers in the early period of the
war, had been called back into the U. S. Army and
was given the mission of assisting in tlie training
of the Chinese Air Force in China simultaneously
with the training of the "Y forces" at Kunming.
Concurrently with his duties in training an effec-
tive Chinese Air Force, Cliennault continued to
provide magnificent support for the Chinese armies
fighting througliout the heart of China.
All of the supplies needed for the training pro-
gram in China, as well as the supplies which we
could furnish to the Chinese armies in the field,
had to be flown over the Hump by transport
planes which had to load and make the dangerous
trip over the Himalayan Mountains with a fre-
quency and efficiency which was astonishing. But
the arms and the other equipment did reach China,
and to a large degree it was these supplies and the
morale which they induced in the Chinese armies
which sustained China in the war through the
j'ears of difficult and depressing defeats.
All equipment furnished the Chinese has been
on a lend-lease basis. Upon cessation of hostilities,
additional equipment and supplies were needed by
the Chinese if they were effectively to carry out
reoccui^ation. In view of this, the President ex-
tended the period during which lend-lease could
be furnished to the Chinese to March 31, 1046.
Early this year it became evident that the reoccupa-
tion of the invaded parts of China would not be
completed nor would the needed equipment be fur-
nished by March 31. Therefore, the President
again extended the time during which supplies
could be furnished to China under lend-lease until
June 30, 1946.
As this Committee knows, the authority under
the Lend-Lease Act expires on that date, and we
shall not be able to continue to make agreements
for the furnishing of the equipment which China
will need if her reasonable peacetime Army pro-
gram is to be carried out. I think you will recog-
nize how serious it would be to our efforts to build
upon the foundations of the United Nations Char-
ter if the Chinese Army were to find itself lacking
in the essential supplies which are still required to
maintain itself in the areas from which the Japa-
nese are still lieing removed. China must be able
to establish and maintain order in these areas, and
the Government must be able to rely upon ade-
quately equipped troops to can-y out its obligations
to its own people and under the Charter of the
United Nations. That is the reason for this addi-
tional legislation.
With the support of the War and Navy Depart-
ments, the State Department has requested legis-
lation to provide advice and assistance to China.
Authority for furnishing naval vessels and other
naval equij^ment is provided in a bill which has
already passed the House of Representatives and is
now in the Senate. I might add that legislation
has also passed the House which makes provision
for the furnishing of military missions themselves,
as distinguished from supplies to other countries,
but it would appear desirable to repeat that au-
thority in the bill for military assistance to China
in view of the special urgency of that situation and
the possibility, although I do not anticipate that
it will occur, that the bill you have already passed
on this subject might fail of final passage in this
session.
General Marshall has recognized the compelling
necessity of combining into one Army the military
forces operating in that country. This has been
one of his principal objectiA'es. He is working
toward that solution of a complex problem, and
we have every hope that he will succeed in its
accomplishment. The Communist forces were
lacking in the type of organization, training, and
equipment which would have made practicable
their incorporation into the new non-political Na-
tional Army. Therefore, the Communist leaders
lUNE 30, 1946
1117
have asked, and General Marshall has agreed, that
their integration with the other forces be preceded
by a brief period of United States training and by
the supply of minimum quantities of equipment.
Any such assistance in the months ahead will hinge
upon the progi-ess of the plan for the amalgama-
tion of all the armed forces. We are dealing here
with very large forces. The Chinese National
Ai'niy is now estimated to contain approximately
300 divisions of some 10,000 to 12.000 men each.
The strength of the Cumnuinist Army is esti-
mated, at present, to be about one fourth as
great. To effect a solution and combine these
forces into one Chinese Army will require a
flexible and adequate authority, such as the bill
before you provides.
Under the reorganization which General Mar-
shall proposes this enormous number of men under
arms will be drastically reduced, and selected units
will be integrated into a new and well-trained
Ijeacetime Army of a reasonable size. It is im-
l)()ssible for me to give you in detail this proposal
at this time, but the ultimate goal is an Army of
some sixty divisions. General Marshall's proposal,
if it can be carried out, and if we continue to bear
the share of the responsibility which he recom-
mends that we undertake, will provide China with
a far moi-e effective fighting organization than
she has ever had, while it will, at the same time,
bring the size and type of that organization within
limit.s consonant with Chinese peacetime obliga-
tions. The effects of this action will be far-reach-
ing— great numbers of men freed for the job of
reconstructing ruined areas, rehabilitating farm
land, planting crops desperately needed to meet
the famine emergency, and reconverting and de-
\eloping Chinese industries; and the Goveimment
will no longer find its finances drained away to
support an immense and badly organized military
force. Not until this is done can we expect the
Chinese Government to provide an efficient and
orderly administration which can combat infla-
tion and deal with the aftermath which years of
war have left in their M'ake.
Of primary importance to the program pro-
posed by General Mar-shall will be the sending of
a Military Advisoi-y Group to China which was
requested by the Generalissimo some months ago.
It is at the heart of the program for which author-
ity is now being requested. The Joint Chiefs of
Staff, in consultation with the State Department,
have drawn up a plan which has already been
approved by the President, for this Military Ad-
visory Group. Under the President's emergency
powers, he has directed that the formation of this
group be undertaken on a temporary basis, but
without additional legislation the period of the
group's existence will be uncertain and the formu-
lation of long-range plans, which are certainly
required in this situation, will be impossible. At
present, it is contemplated that the Military Ad-
visory Group will consist of approximately 750
U. S. Army personnel and 250 U. S. Navy per-
sonnel. With 1,000 men. General Marshall be-
lieves that we will be able to advise and assist the
Chinese in a progi-am for the modernization of
China's armed forces and determine the supplies
and equipment which they will have to have.
It would, of course, be presmuptuous for me to
sjDeak to this Committee about the details of the
military program. I can only emphasize to the
Committee the very great concern of the State
De23artment that General Marshall's task be
facilitated in carrying out the jirogram he has
proposed. Representatives from the War and
Navy Departments are here and will, I am sure,
be able to give you the more specific information
which you may wish in connection with the use of
United States armed-forces personnel and the
shipment of United States military supplies to
carry out the proposed program.
I believe that it is highly desirable and in the
best interests of the United States that the bill
be enacted into law as soon as possible. It will
enable this Government to fulfil the commitments
made by the President in his statement of Decem-
ber 15, 1945, to assist China in the establishment
of a "military organization capable of dischai'ging
China's national and international resjDonsibilities
for the maintenance of peace and order." As the
President indicated in that statement, "a China
disorganized and divided ... is an undermining
influence to world stability and peace" and would
invite outside interference in its own affairs. On
the other hand, a well-trained and adequately
ecjuipped peacetime army of reasonable size, such
as is contemplated in the military reorganization
program sponsored by General Marshall, would
be of the greatest benefit to China, not only in the
maintenance of peace and in setting its own house
in order, but also in the fufilment of such obli-
gations as may devolve upon it under the Charter
of the United Nations.
7778
DEPARTMENT OF STATE BULLETIN
Lend-Lease Settlement With China
[Keleased to the press June 17]
Representatives of the Government of the
United States and the Republic of China have
signed an agreement for the disposal of all lend-
lease supplies which were in inventory or pro-
curement in the United States for China prior to
the cessation of active military hostilities against
the common eneni}'.' The agreement was signed
021 behalf oi the United States by Chestei' T. Lane,
Deputy Foreign Liquidation Commissioner, State
Department, and on behalf of the Republic of
China by Shou Chin AVang, Chairman of the
Chinese Supply Mission.
The agreement, jiopularly known as a "pipe-line
agreement," stipulates that China will pay full
procurement cost in American dollars for the lend-
lease suj^plies involved, and in addition will pay
inland accessorial expenses and ocean freight
charges. The total amount to be paid is approxi-
mately LT. S. $58,900,000, of which approximately
$48,000,000 is for the lend-lease supplies. Cate-
gories of surplus involved are as follows: trans-
portation and signal communications, industry
and mining, ordnance (arsenal and industrial
equipment), medical, textile, and miscellaneous
items.
Payment of the total amount shall be made on
or before July 1, 1976 in thirty annual instal-
ments, the first of which shall become due and
payable on July 1, 1947. Interest shall be at the
rate of 2% percent per annum, accruing from July
1 next succeeding the date of transfer. Interest
shall be payable annually, the first payment to be
made July 1, 1947.
The agreement shall take effect as from 12:01
a.m., September 2, 1945.
Lend-Lease and Surplus-Property Settlement With Australia
Representatives of the Government of the
United States and the Government of the Com-
monwealth of Australia signed on June 7 an
agreement rei^resenting an over-all settlement of
lend-lease and reciprocal aid, and providing for
the sale of certain United States surplus property.
The agreement was signed on behalf of the Gov-
ernment of the United States by the Secretary of
State, James F. Byrnes, and on behalf of the
Commonwealth of Australia by Herbert V. Evatt,
Minister for External Affairs for Australia.-
The agreement signed on June 7 constitutes a
final settlement for lend-lease and reciprocal aid
and for the financial claims of each Government
against the other arising as a result of the war.
Australia made a major contribution to the war
effort of the United Nations measured in sacrifice
of both manpower and materiel. During the
'Not priuted. For text of jigivement, see Depart iiiwit
of State press release 421 of June 17.
"Not printed. For text of agreement, see Department
of State press release 303 of June 7, 1946.
war Australia served as a vital base of supply for
the southwest Pacific area, and General Mac-
Arthur's headquarters were located in Australia
and Australian territories for approximately
three jears. Throughout the war in the Pacific
Australia was a vital source of supply for food-
stuffs and other materials for the United States
armed forces, all of which were furnished under
reverse lend-lease without charge to the United
States. This contribution by Australia relieved
the United States of a great part of the burden of
supplying its armed forces in the Pacific area.
The saving in shipping space alone was enormous.
The quantities of food provided by Australia eased
the demands on our own supplies but forced the
Australian Government to impose stricter ration-
ing on its own citizens.
In the settlement just concluded it has been
agreed that neither Government will make any
payment to the other for lend-lease and recipro-
cal-aid articles and services used in the achieve-
ment of the common victory. Prior to the nego-
tiation of the present agreement, Australia had
JUNE 30, 1946
1119
uiKlertaken to pay for the post-war value of cer-
tain machine tools transferred under lend-lease.
As part of the settlement Australia has also agreed
to pay for the post-war value of certain other
items of capital equipment transferred mider lend-
lease, and for certain lend-lease non-combat air-
craft and spares remaining in Australia. This
agreement also calls for the purchase by Australia
of $0,500,000 of United States Army and Navy
surplu.ses. The total payment to be made by
Australia under the settlement amounts to
$27,000,000. Of this total payment $7,000,000 will
be made available in Australian currency for the
acquisition of real estate, construction of United
States Government buildings, and furtherance of
cultural relationships of mutual benefit to the two
countries.
This settlement is in accord with the principles
of the master lend-lease agreement to which Aus-
I ralia subscribed. That agreement provided that
the settlement for lend-lease and reverse lend-
lease should be such as not to burden commerce
between the two countries but to promote mutually
advantageous economic relations between them
and the betterment of world-wide economic rela-
tions. The settlement of the war account just
completed thus opens the way for further collabo-
ration between the two countries in the sphere
of world economics.
The two Governments are in full accord on the
objectives of high level of employment and in-
creased international commerce. Australia will
take part in the forthcoming International Trade
and Employment Conference, jiroposed by the
United States, the purpose of which is to work
out agreed measures for the expansion of world
trade, employment, and production, and to estab-
lish jiermanent international machinery to foster
these jiurposes. These proposals will be consid-
ered at the preliminary meeting to be held under
the auspices of the United Nations Economic and
Social Council in October of this year. Australia
luis also accepted the invitation of the United
States to take j^art in a further conference to be
held early next year at which a group of the major
trade countries will consider specific reciprocal
trade arrangements for mutual relaxation of trade
l)arriers and active promotion of wider trade be-
tween themselves and with other countries.
Negotiations between the Governments of the
United States and the Commonwealth of Aus-
tralia are proceeding on questions relating to civil
aviation in an endeavor to arrive at a mutually
satisfactory agreement.
Agreement for Purchase of Rubber From Far East
[Rele-ised to the press June 20]
Agreements have been I'eached after discussions
between the United States Government and the
Governments of the United Kingdom, the Nether-
lands, and France regarding the purchase of natu-
ral rubber from British, Netherlands, and French
Far Eastern sources for the period July 1 through
December 31, 194(5. These bilateral discussions,
which were carried on in a most frank and friendly
spirit, were occasioned by the expiration of the
present contracts on June 30, 1946.
The position of each country in relation to rub-
ber was examined most carefully and consideration
was given to the immediate difficulties faced by
natural rubber-producing areas, together with the
longer-iun implications of any price decision at
the present time. Determining factors in the
agreements reached were the continuing shortage
of natural rubber in relation to demand and the
present exceptionally high costs of producing
natural ruliber in these areas.
In accordance with the agreements reached the
governments concerned will support the continu-
ance of international allocation of natural rubber
by the Combined Rubber Committee for the above
period. The United States Government will apply
to the CRC for allocations for shipments during
this period of 145,000 long tons of natural rubber
from British. French, and Netherlands sources.
Tiie Rubber Development Corporation will pur-
chase the quantity of rubber allocated to the United
States during this period at a fixed basic price of
23^2 United States cents per pound f.o.b. Far
Eastern ocean ports for No. IX ribbed smoked
1120
DEPARTMENT OF STATE BULLETIN
sheet and other grades at agreed differentials. In
order to ensure the ready movement of rubber and
the economical use of go-down and shipping space
the Government of the United Kingdom will be
constantly in the market to buy rubber in British
Far East territories at a price equivalent to that
indicated above.
The present arrangements whereby the Govern-
ment of the United Kingdom purchases all rubber
for export from Malaya and resells to the United
States or other govei'nments will cease from the
end of June 19-16 in respect to shipments elsewhere
than to the United Kingdom. From July 1 to
December 31, 1946, the United States will be able
to purchase rubber from Malaya in such manner
as they may desire. The Governments of the
Malayan Union, Singapore Colony, and Brit-
ish dependencies in Borneo have been requested to
prohibit the export of rubber except under license
and to relate the amount licensed for export to
each destination to the. quantity deteiniined by
international allocation.
United States arrangements for procurement
in Netherlands and French Far East territories are
at present under discussion.
F'urther consultations will be held from time to
time as may be necessary on the detailed arrange-
ments required to carry out this agreement.
The arrangements already in force for the pur-
chase of rubber from Ceylon will of course con-
tinue to the end of Sejstember 1946. A further
statement regarding the position in Ceylon after
tliat date will be made in due cour.se.
Remittances to Albania Limited
[Released to the press June 21 1
It has come to the attention of this Government
that dollar funds transmitted to persons in Al-
bania are rigidly controlled by the Albanian au-
thorities. Remittances in amounts not exceeding
$200 are made available to the recipient by the
authorities without too much difficulty. Amounts
in excess of $200 are made available only after
considerable delay and then only in small in-
stalments.
Informed sources suggest that senders of re-
mittances to relatives or friends in Albania limit
each remittance to $200 until such time as the Al-
banian authorities are able to modify their pres-
ent system.
U.S.-Hnngarian Relations
HUNGARIAN OFFICIALS CONCLUDE VISIT
TO U. S.
[Released to the press June 191
Ferenc Nagy, Prime Minister of Hungary,
Mathias Rakosi, Deputy Prime Minister, Jolm
(iyongyosi, Minister of Foreign Affairs, and
Stephen Riesz, Minister of Justice, who arrived in
Washington on June 11, have concluded their
official visit to the United States and departed
from New York for London by air on June 19.
RESTITUTION OF PROPERTY AND GOLD TO
HUNGARIAN GOVERNMENT
[Released to the press June lU]
. During their stay here as the guests of this Gov-
ernment, Their Excellencies were received by the
President, the Secretary of State, the Acting Sec-
retary of State, and congressional leaders. In
tlie course of conversations, which touched on vari-
ous matters of mutual interest to Hungary and the
United States and took place in an atmosphere of
cordiality and understanding, there w^as indicated
this Government's intention to proceed promptly
with the restitution to Hungary of identifiable
displaced property removed under duress from
Hungary. Hungarian gold now in the custody of
the United States forces in Germany will also be
returned to the Hungarian Government, which de-
sires to utilize this reserve for the stabilization
of the Hungarian monetary system and economy.
In addition, the Prime Minister was informed of
this Government's readiness to consider sympathet-
ically an increase in the present limit of the credit
arrangement for the purchase of American surplus
war property abroad, which was recently concluded
with the Hungarian Govermnent.
JUNE 30, 1946
1121
Negotiations on German Holdings in Switzerland
UNDERSTANDING REACHED BETWEEN ALLIED AND SWISS GOVERNMENTS
[Released to the press June 17]
The Department of State released on June 17
the text of the "Accord and Annex", constituting
letters of understanding reached between the
Allied governments and the Government of
Switzerland in the recently concluded negotiations
on German holdings in Switzerland, looted gold,
and related matters.
Letters identical in all but one respect were
exchanged between the Allies and the Swiss Dele-
gation on May 25, 1946.^ The sole difference was
in paragraph V, in which the Swiss Delegation
stated that it acted on behalf also of the Prin-
cipality of Liechtenstein, whereas the Allies
stated that they acted on behalf of the govern-
ments signatory to the Paris Reparation Agree-
ment.
The understanding will come into effect upon
ratification by the Swiss Parliament where the
subject is expected to be discussed during its cur-
rent session.
The understanding, whose essential details have
alread}^ been announced, provides for the elimina-
tion of German interests in property in Switzer-
land, for allocation of half of the proceeds to the
Allies, and for payment by Switzerland of
250,000,000 Swiss francs in gold, payable on de-
mand in New York.
The letters were exchanged in both French and
English, both texts having equal validity.
Legation or Switzerland
Swiss Delegation
Washington, D. C, May 25, 19^6
Gentlemen :
In the course of the discussions which have taken
place, the Allied Governments, fully recognizing
Swiss sovereignty, claimed title to German prop-
erty in Switzerland by reason of the capitulation
of Germany and the exercise of supreme authority
within Germany, and sought the return from
Switzerland of gold stated to have been wrongfully
taken by Germany from the occupied countries
during the war and transferred to Switzerland.
The Swiss Government stated it was unable to
recognize the legal basis of these claims but that
it desired to contribute its share to the pacification
and reconstruction of Europe, including the send-
ing of supplies to devastated areas.
In these circumstances we have arrived at the
Accord which follows :
1. The Swiss Compensation Office shall pursue
and complete its investigations of property of
every description in Switzerland owned or con-
trolled by Germans in Grermany and it shall liqui-
date such property. This provision shall apply
equally to the property of such other persons of
German nationality as are to be repatriated.
2. The Germans affected by this measure shall
l)e indemnified in German money for the property
which has been liquidated in Switzerland pursuant
to this Accord. In each such case an identical rate
of exchange shall be applied.
3. Switzerland will, out of funds available to it
in Germany, furnish one-half of the German money
necessary for this purpose.
4. The Swiss Compensation Office shall exercise
the functions entrusted to it in close cooperation
with a Joint Commission which shall be composed
of a representative of each of the three Allied
Governments, and a representative of the Swiss
Government. The Joint Commission, as all inter-
ested private persons, shall have a right of appeal
against the decision of the Swiss Compensation
Office.
5. The Swiss Government will bear the cost of
the administration and liquidation of German
property.
II
1. Of the proceeds of the liquidation of property
in Switzerland of Germans in Germany, 50 per-
cent shall accrue to the Swiss Government and 50
'The Allied correspondence is not Included here.
7722
DEPARTMENT OF STATE BULLETIN
percent shall be placed at the disposal of the Allies
for the rehabilitation of countries devastated or
depleted by the war, including the sending of
supplies to famine sti'icken people.
2. The Government of Switzerland undertakes
to place at the disposal of the three Allied Govern-
ments the amount of 250,000,000 Swiss francs pay-
able on demand in gold in New York. The Allied
Governments declare on their part that, in accept-
ing this amount, they waive in their name and in
the name of their banks of issue all claims against
the Government of Switzerland and the Swiss
National Bank in connection with gold acquired
during the war from Germany by Switzerland.
All questions relative to such gold will tluis be
regidated.
Ill
The procedures relating to the application of
the present Accord are set out in the Annex.
IV
1. The Government of the United States will
unblock Swiss assets in the United States. The
necessary procedure will be determined without
delay.
2. The Allies will discontinue without delay the
"black lists" insofar as they concern Switzerland.
The undersigned representative of the Swiss
Government declares on his part that he is acting
also on behalf of the Principality <>i Liechten-
stein.
VI
In case differences of opinion arise with regard
to the ajjplication or interpretation of this Accord
which cannot be settled in any other way, recourse
shall be had to arbitration.
VII
This Accor(_l anil the Annex shall take eti'ect upon
their aj^proval by the Swiss Parliament.
This Accord and the Annex have been written
in English and J'rench, both texts having the
same validity.
Very truly yours,
Stuck:
7'o the Ch lefts of the Allied Dehgaf/onfi,
Washington, B.C.
ANNEX
I
A. Property in Switzerland of Germans in Ger-
many as defined under IV below, hereinafter
termed "German property", .shall be liquidated in
tlie following manner :
a. Persons in Switzerland indebted to Germans
in Germany shall be required to pay their debts
into an account in the name of the Swiss Com-
pensation Oihce with the Swiss National Bank and
thus absolve themselves of liability.
h. All natural and juridical pei'sons in Switzer-
land who in any form administer German prop-
erty are to be required to surrender these assets
to the Compensation Ofhce. Such action will ter-
minate their liability. The Compensation Office
will liquidate the property and pay the proceeds
into the account mentioned under "a"'.
c. The Compensation Office shall take title to all
participations in Swiss enterprises or organiza-
tions belonging to Germans in Germany and shall
liquidate them. The proceeds of liquidation shall
be paid into the account mentioned under "a".
d. The Compensation Office will similarly pro-
ceed with the liquidation of any other German
property.
e. The Joint Commission will give sympathetic
consideration to cases, brought to their attention
by the Conqjensation Office, relating to property
of Swiss origin located in Switzerland and belong-
ing to women of Swiss birth married to Germans
and residing in Germany.
B. The Conq)ensation Office will make every
effort with the assistance of the Joint Commission
to vnico\er all transactions of a cloaking nature
whether by pawn, pledge, mortgage or otherwise,
by which German property was concealed, and
will ensure their annulment.
C The Compensation Office will notify to the
Joint Commission, for ti'ansmission to the com-
petent authorities in Germany, the amount realized
by the liquidation in each case of German prop-
erty with particulars of the names and addresses
of the German owners of that property. The
competent authorities in Germany will take the
necessary measures in order that there will be
recorded the title of the German owners of the
property liquidated to receive the counter value
thereof in German money, calculated at a uni-
form rate of exchange. An amoiuit equal to one-
JUNE 30, 1946
1123
half of the total of the indemnities accruing to
the German owners will be debited to the credit
existing in the name of the Swiss Government at
the "Verrechnungskasse" in Berlin. Nothing in
this arrangement shall hereafter be invoked by one
or the other party to this Accord as a precedent
for the settlement of any Swiss claim upon Ger-
many nor shall it be alleged that the Allied Gov-
ernment thereby recognized any right on the part
of Switzerland to dispose of the credit above men-
tioned.
II
A. The Compensation Office will be empowered
to uncover, take into possession, and liquidate Ger-
man property.
B. The Swiss Government shall carry out this
Accord in collaboration with the Governments of
the United States, France, and the United King-
dom. For this purpose there shall sit in Berne or
Zurich a Joint Conunission composed of repre-
sentatives of each of the four Governments, which
shall act by majority vote. The functions of the
Joint Commission are enumerated below.
C. The Compensation Office and the Joint Com-
mission will enter upon their functions as soon as
possible after the coming into force of the Accord.
D. The Compensation Office will exercise its
functions in collaboration with the Joint Com-
mission. It will keep the Joint Commission
periodically informed about its activities; it will
reply to inquiries submitted by the Joint Com-
mission relative to the common objective, i.e., the
uncovering, the census, and the liquidation of
German property. The Compensation Office will
consult the Joint Commission before making im-
portant decisions. The Compensation Office and
the Joint Commission shall place at the disposal
of each other all information and documentary
evidence likely to facilitate the accomplishment
of their tasks.
E. The Compensation Office shall as hitherto
investigate the locus and status of items of proji-
erty suspected by it or reported to it by the Joint
Commission as being or believed to comprise a
German property, or to be of doubtful or disputed
bona fide Swiss ownership. The conclusions of the
Compensation Office will be discussed with the
Joint Commission.
F. The Compensation Office will settle, in gen-
eral or particular, in consultation with the Joint
Commission, the terms and conditions of sales of
German property, taking into reasonable account
the national interests of the signatory Govern-
ments and those of the Swiss economy together
with the opportunity of obtaining the best price
and of favoring freedom of trade. Only persons
of non-German nationality who are in a position to
present suitable guarantees will be permitted to
particiiDate in the purchase of such property, and
all possible measures will be taken to prevent
resales to German persons.
Ill
If the Joint Commission after consultation with
the Compensation Office is unable to agree to the
decision of that office, or if the party in interest so
desires, the matter may within a period of one
month, be submitted to a Swiss Authority of Re-
view. This Authority shall be composed of three
members and shall be presided over by a Judge.
This review will be administrative in form and the
procedure shall be prompt and simple. The deci-
sions of the Compensation Office, or of the Author-
ity of Review, should the matter be referred to it,
shall be final.
Nevertheless, if the Joint Commission is in dis-
agi'eement with any decision of the Authority of
Review, the three Allied Governments maj^, within
one month, require the difference to be submitted
to arbitration as follows : if the difference concerns
matters covered by the Accord or the Annex or
their interpretations, the difference may, if the
Allied Governments desire, be submitted to an
Arbitral Tribunal. This Tribunal shall be com-
230sed of one member designated by the thi-ee Allied
Governments, a member designated by the Swiss
Government, and a third member designated by the
four Governments. Any such difference which is
not of primary importance may, if the Joint Com-
mission and the Compensation Office agree, be sub-
mitted for decision to the member of the Tribunal
who has been designated by agreement of the four
Governments, who in such cases will sit as the
Arbitral Tribunal.
The Arbitral Tribunal will not be restricted as
regards the nature or proof of evidence produced
before it and will have full jurisdiction to consider
all mattei-s of fact or law submitted to it.
The decision of the Arbitral Tribunal shall be
final.
1124
DEPARTMENT OF STATE BULLETIN
The expenses of the Arbitral Tribunal shall be a
charge on the proceeds of the liquidation of Ger-
man property, before their division.
IV
A. The term "property", as used in the Accord
and this Annex, includes all jjroperty of every kind
and description and every right or interest of what-
ever nature in property acquired before the first of
January, 1048. For the purposes of the Accord
sums paid or payable by persons in Switzerland
through the German-Swiss Clearing shall not be
regarded as German property.
B. The expression "Germans in Germany"
means all natural persons resident in Germany
and all juridical persons constituted or having a
place of business or otherwise organized in Ger-
many, other than those organizations of whatever
nature the ownership or control of which is held
by persons who are not of German nationality.
Appropriate measures will be taken to liquidate
the interests in Switzerland which German na-
tionals resident in Germany have through such
organizations and equally to safeguard substan-
tial interests of non-German persons which would
otherwise be liquidated.
Germans who have been repatriated before the
first of January 194S, or in connection with whom,
before that date, a decision by the Swiss authori-
ties has been taken that such persons should be
repatriated from Switzerland, are to be consid-
ered as falling within the expression "Germans
in Germany".
The Swiss Government undertakes, in recog-
nition of the special circumstances, to permit the
three Allied Governments to draw immediately up
to 50,000,000 Swiss francs upon the proceeds of
liquidation of German property against their
share thereof. These advances will be devoted to
the rehabilitation and resettlement of non-repatri-
able victims of German action, through the Inter-
Governmental Committee on Refugees.
VI
A. Pending the conclusion of multilateral ar-
rangements to which it is the intention of the
three Allied Governments to invite the Swiss Gov-
ernment to adhere, and pending the participation
of the Swiss Government in such arrangements, no
German-owned patent in Switzerland shall be sold
or otherwise transferred without the concurrence
of the Compensation Office and the Joint Commis-
sion.
B. No German-owned trademark or copyright
shall be sold or transferred without the concur-
rence of the Compensation Office and the Joint
Commission.
VII
The 2)receding provisions do not apply to jDrop-
erty in Switzerland of the German State, including
property of the Reichsbank and the German rail-
roads.
Stucki
Washington, D.C., May 25, 19Jfi
GERMAN DOCUMENTS — Continued from page 1101.
In the further course of the conversation the
Reich Foreign Minister referred to a plan for
undertaking extensive propaganda in the British
Empire, with the slogan that the Axis was coming
out for the liberation of all those peoples who wei-e
oppressed by the English. In this connection he
i-eferred to the presence in Germany of the Indian
Nationalist leader, Bose, a report which the Duce
heard with astonislmient and much interest. The
Duce declared that he was in agreement with such
a propaganda plan.
The Reich Foreign Minister in conclusion then
went into the plans by which he would employ
Bose for Indian propaganda and declared that
opposition between Bose and Ghandi must be pre-
vented. Ghandi had recently written a very good
article against the English.
The Duce noted in this connection in conclusion
that Italy had connections with the Fakir of Ipi
and by extensive use of money was attempting to
induce him and the Grand Mufti to activity on the
side of the Axis. Even if these activities were
not very extensive, they would still cause a num-
ber of unwelcome difficulties for the English.
At leave-taking there was left open the possi-
bility of holding a further conversation the next
morning, shortly before the Reich Foreign Min-
ister's return flight.
The tone of the meeting was especially cordial.
Schmidt
FuscHi,, May U, 1941.
JLNE 30, 1946
1125
Further Protests to Rumania on Election Matters
EXCHANGE OF NOTES BETWEEN THE U. S. AND RUMANIAN GOVERNMENTS
[Released to the press June 17]
Text of note delivered bij the United States rep-
resentative in Rumania, Burton Y. Berry, to the
Rumanian Foreign Minister on June H :
Upon instructions from my Government, I have
the honor to acknowledge the receipt of your note
of June 3, 194G in reply to my communication of
May 27 setting forth the views of the United States
Government with respect to the non-fulfillment by
the Rumanian Government of tlie assurances which
it gave in accepting the decisions of the Moscow
Conference.'
Notwithstanding the comments of your note
concerning elections, my Government observes that
no dates have been fixed for consideration by the
Rimaanian Government of the draft electoral law
to which you allude or for the promulgation of
an electoral law. Moreover, no steps have been
taken for the registration of the electorate, and
still no date has been set for elections.
With legard to the other matters in question,
my Government considers that the reply of the
Rumanian Government presents a wholly inade-
quate account of the actual situation and contains
a number of inaccuracies.
In the circumstances, therefore, my Govern-
ment has instructed me to inform you that it
regrets to find the response of the Rumanian Gov-
ernment unsatisfactory, and that it earnestly
hopes that the Rumanian Government will see fit
to take appropriate steps effectively to implement
the assurances it has given.
[Released to the press June 191
The following is a translation of a note received on
June 17 iy the United States representative in
Rumania, Burton Y. Berry, from the Rumanian
Foreign Minister:
Sir : I have the honor to acknowledge the receij)t
of your note of June the fourteenth whereby you
are notifying me upon instructions received the
reply of the United States Government to the
Rumanian Government's note of June 3.-
The Rumanian Government regret that the
account and statements contained in that note have
failed to satisfy the United States Government.
They regret even more the appreciation made of
the explanations and statements that have been
presented. Since these explanations and state-
ments are based exclusively upon facts which have
been scrupulously ascertained and verified, the
Rumanian Government find themselves obliged
not to retain the appreciation formulated in your
note.
On the other hand, the Rumanian Government
in receiving this new note of the United States
Cxovernment cannot refrain from observing that
the Moscow decisions have been the result of dis-
cussions and of decisions arrived at jointly by the
governments of the Union of the Soviet Socialist
Republics, the United States and Great Britain.
Tlierefore, the Rumanian Government must assume
that any observatory act destined to control and to
direct the implementation of the Moscow decisions
cannot be the woi-k of the signatory governments
individually but the collective work of these gov-
ernments.
The Rumanian Government, however, have not
received from the government of the Union of the
Soviet Socialist Republics any objection or any
observation regarding the implementation of the
Moscow decisions and they cannot therefore disre-
gard this situation.
In formulating this observation the Rumanian
Government are prompted only by the determina-
tion to implement within the scope of a unitary
conception and action all obligations they have
assumed towards the three governments that are
parties to the Moscow decisions. General elections
which will be held as soon as possible and not later
than September as the President of the Council has
specified in his repeated statements to the internal
and foreign press, will provide the most imj^ortant
implementation of these obligations, the total ful-
fillment of which remains the constant purpose of
their internal jDolicy.
' For text of U.S. coiuiuunication, see Bulletin of June
9, 1946, p. 1007.
" For text of Rumanian communication, see Bxjlletin of
June 16, 1946, p. 1048.
1126
DEPARTMENT OF STATE BULLETIN
UNRRA Operations: Seventh Quarterly Report
THE PRESIDENT'S LETTER OF TRANSMITTAL TO THE CONGRESS
To the Congress of the United States of America:
I am transmitting herewith the seventh quar-
terly report on the operations of UNRRA and ex-
penditure of funds appropriated by the Congress.
The food crisis, foreshadowed in my last report
on UNRRA operations, is now \vpo\\ us. Many of
the countries receiving UNRRA assistance have
only a few weeks' stocks remaining and the orderly
distribution of food supplies is increasingly diffi-
cult. In many countries even minimum food
rations may not be met for people who have lived
too long on the borderline of starvation.
Much has been done by this and other countries
to avert this tragedy and the Congress is aware of
the measures taken in the United States to conserve
food and to make it available to the millions
abroad in urgent need of help. In spite of all that
has been undertaken millions overseas are threat-
ened with disaster. Although it may now be too
late to save some, it is not too late to save many
others. What can be done by the American people
and their Government will be done. I am confident
that the Congress and the people of the United
States will support any further measures whicli
may be necessary to meet the critical situation.
The food crisis has greatly retarded progress in
the devastated countries towaitl recovery from the
war. It has weakened their ability to help them-
selves, for the tremendous task of reconstruction
requires strength as well as determination.
Difficult as UNRRA's task has been, UNRRA
has at this date in the face of severe world short-
ages shipped over ten million tons of vitally needed
supplies which have enabled the countries receiv-
ing assistance to survive the winter. In addition
to the food which has been provided, transporta-
tion facilities have been vastly improved in the
year since war's end and seeds and agricultural
equijament in substantial quantities are now avail-
able where they are needed for the spring planting.
Some of the more important basic sinews of peace
have been provided or are on the way. Clouded
as it is by the famine in Eurof)e and Asia, a real
job has been done of which the United Nations
may be proud.
Through March 31, 1946, UNRRA shipped
8,251,736 gross long tons of relief supplies valued
at $1,140,419,000. Every American can take pride
in the fact that our share in this achievement was
5,917,785 tons valued at $750,563,000, which is 71.7
I^ercent of the tonnage and 65.8 percent of the
value of all UNRRA shipments.
In the crucial weeks and months ahead until
the new crojj comes in, we must bend every effort,
leave no jDossibility unexplored, and take every
necessary step to relieve the suffering of millions
who look for assistance to the United States and
the other uninvaided United Nations. We are
providing assistance as a matter of humanity and
as a mark of comradeship for those who fought
with us to victory over our common enemy. And
we are doing it in the conviction that peace and
security throughout the world can only be built
on cooperation and mutual assistance. We can-
not look to a world of freedom and security in the
midst of famine and impoverishment.
The funds which the Congress has already ap-
propriated to UNRRA will remain available only
through this fiscal year. Also, the Congress at the
end of the quarter covered by this report had not
yet appropriated to UNRRA $600,000,000 which
it had authorized for United States participation
in the work of UNRRA. Since the close of the
quarter the Congi-ess has appropriated an addi-
tional $135,000,000, leaving $465,000,000 author-
ized but not appropriated. I strongly urge that
Congress take all further action necessary to avoid
any interruption in the participation of our coun-
try in UNRRA's job.
H.\RRY S. TrUMAK
The White Hotjse
June 19, 19^6.
JUNE 30, 1946
Erratum
1127
Agreements on Economic and Financial Problems Reached
by U. S. and Provisional French Governments
DECLARATION MADE IN PARIS BY THE
PRESIDENT OF THE PROVISIONAL GOV-
ERNMENT OF THE FRENCH REPUBLIC
AND IN WASHINGTON BY THE PRESI-
DENT OF THE UNITED STATES ON MAY
28, 1946
[In the BULUWiN of June 0, 1946. p. 004, the text of
this Dedanitiou appeared. Inadvei-tently the paragraphs
were printed out of order. Here follows the correct
version:]
Eepresentatives of the Provisional Goverimient
of the French Republic and the Government of
the United States have met together in AVashing-
ton and have discussed important economic and
financial problems of common interest. These
problems have included the need for foreign credits
for reconstructing and modernizing the French
economy, the settlement of lend-lease reciprocal
aid and other war accounts, the purchase of
United States surplus property situated in France
and certain French overseas territories, the pur-
chase of ships owned by the United States, and
international commercial policy.
The discussions have brought out clearly the
full agreement of tlie two Governments on co-
oiDeration in the fulfillment of the economic objec-
tives which both Governments recognize as essen-
tial to world peace and prosperity. The well-being
of the people of all nations can be advanced
through a full flow of trade which enables each
country to maintain higher levels of ]3roduction
and better standards of living. These benefits of
world trade can be realized only as the markets
of the world are opened to all countries on fair and
equal terms. The two Governments are deter-
mined to work together in securing general inter-
national acceptance of the world trade proposals
of the United States to be considered by a con-
ference of the United \ations.
The reconstruction and modernization of the
French economy will facilitate the integration of
Europe in the world economy and enable France
to I'esume her place as a great producing and trad-
ing nation. The French Delegation has presented
a program for reconstructing and modernizing
the economy of France. The immediate objective
is to restore French production to the prewar
level; the ultimate objective is to expand French
px'oduction to higher levels commensurate with the
technical progress of the past two decades. One
requisite for the fulfillment of this program is an
adequate and assured sup^Dly of coal, not only from
increased French production, but also from im-
ports of German coal. The United States Govern-
ment will continue to assist France in securing an
adequate supply of coal from Germany.
In the opinion of the American representatives,
attainment of the objectives of increased produc-
tion and trade presented by the French Delegation
is necessary to the full and effective participation
of France in the woi'ld economy. In furtherance
of the efforts of the French people to this end, the
United States has agreed to the extension of addi-
tional credits to France.
At the end of 1945 the Export-Import Bank
made a loan of $550 million to France. The Board
of Directors of the Export-Import Bank have now
approved a new line of credit of $650 million.
This action has been taken pending the time when
the International Bank for Eeconstruction and
Development will be in full operation.
The two Governments have reached complete
agreement for the final settlement of all lend-lease
and recijDrocal aid, including military and civilian
supjilies furnished by each Government to the
other. They have also agreed on the acquisition
of United States army and navy surplus pi-operty
located in France and certain French overseas
territories. Under this Agreement, credits of $720
million have been provided for the purchase of
surplus property and for goods supplied to France
since the end of the war.
Discussions are taking place for an additional
credit, subject to the provisions of the Merchant
Ship Sales Act of 1946, whereby France will ac-
quire approximately 750,000 tons of merchant
{Continued on next payc)
1128
DEPARTMENT OF STATE BULLETIN
Allied Mission to Observe Revision of Greek Electoral Lists
LELAND MORRIS TO HEAD U. S. SECTION
[Released to the press Jiiiic IS]
Leland Morris, Foreign Service officer and for-
mer United States Ambassador to Iran, lias been
apjiointed by the President, with the personal rank
of Ambassador to head the United States Section
of the Allied Mission to Observe the Revision of
Greek Electoral Lists.
In accordance with a recommendation contained
in the recent report of the Allied Mission to Ob-
serve the Greek Elections that the electoral lists
should be revised before the will of the Greek peo-
ple was again sought on any national question, the
Greek Government is now in the process of revising
electoral lists in anticipation of the plebiscite
which it has announced for September 1. The
Greek Government has invited this Government
to send observers to Greece to assist with and re-
port on this revision of lists. In response to this
request the United States, along with Great Brit-
ain, South Africa, Australia, and New Zealand,
has accepted this invitation with the desire to aid
a gallant ally to continue the task of restoring its
democratic procedures which have been denied to
the Greek people during the past decade.
This Government therefore plans to send to
Greece shortly a group of about fifty jaeople to
carry out in a friendly spirit the task of observa-
tion. Many of this group are .statistical and
sampling experts who will plan and administer a
scientific program for checking the validity of the
U.S.-FRENCH AGREEMENT— ('o/i//)i»C(Z from pane 1127.
shipping owned by the Government of the United
States.
The two Governments believe that the results
of the discussions which have now been concluded
will help France in reconstructing and moderniz-
ing the French economy and are a substantial step
towards the achievement of the international eco-
nomic cooi^eration which is the prerequisite of a
peaceful and prosperous world. They welcome the
support of all of the United Nations in establish-
ing a world trading and monetary system which
will assure a full flow of commerce to the benefit
of the peoples of all countries.
revised lists and the conditions under which such
revisions are being carried out by the Greek Gov-
ernment during the months of June, July, and
August. American civilian observers will travel
over the Greek mainland and the islands to col-
lect first-hand information. All of these observ-
ers, veterans of World War II with overseas ex-
perience, have been recruited from universities and
graduate schools where they are specializing in the
fields of government, politics, and international
affairs.
Except for a few advance members who are pro-
ceeding to Greece by air within the week, the
group, headed by Ambassador Morris, will depart
Thursdaj', June 20, from New York on the S.S.
Tidcania for Naples, from which place they will
be flown to Greece to begin their duties in coop-
eration with the other Allied representatives now
assembling in Athens.
It is anticipated that the report of the mission
will be presented to the Greek Government and
made available to the public in the latter part of
August, at -which time the United States Section
will return to this country.
GERMAN ASSETS — Continued from page 1102.
consideration. It was agreed that none should be
sold or transferred without the concurrence of the
Conii^ensation Office and the Joint Commission.
At the same time it was stated in the Annex that
the Allies intended to arrange a multilateral con-
ference on the jDatent question in which the Swiss
would be invited to participate.
It should finally be noted that the Accord states
tliat the United States will unblock Swiss as-sets
in the United States, determining the necessary
jnocedure without delay, and that the Allies will
discontinue the "Black Lists" so far as the}' con-
cern Switzerland. Both these measures have been
subject to criticism in the Swiss press, particularly
since the end of the war. It was felt that these
were measures necessary to control possible dan-
gerous activities and "cloaking" operations, that
the agreement arrived at provided cooperative
methods of eliminating these dangers, and that
these controls were therefore no longer necessarv.
JUNE 30, 1946
1129
Publication of "Papers Relating
to the Foreign Relations of the
United States, 1931", Volume
III
[Released to the press June 23)
Documentation on the beginning of the Far East-
ern crisis precipitated by the Japanese seizure of
Manchuria in 1931 forms the chief substance of
vohune III of Papers Relating to the Foreign Re-
lations of the United States. This volume deals
entirely with matters connected with United States
relations with the Far East. It is the first of the
regular amuial volumes of Foreign Relations to
deal primarily with the origins of World War II.
More than two thirds of the volume is concerned
with the menace to peace arising from Japan's ag-
gression in Manchuria. There are also chapters on
United States relations with China, including a
comprehensive section on the negotiations for the
relinquishment of extraterritorial rights, which
were carried on in 1931, and a chapter on United
States relations with Japan, including the incident
of the Pangborn-Herndon flight over Japanese
territory.
Additional documents on the Far Eastern crisis
of 1931 were published in 1943 in Foreign Rela-
tions, Japan, 1931-194:1, volume I, pp. 1-75. Those
documents, aside from a small selection of back-
ground reports necessary for an understanding of
the situation, are limited to papers relating directly
to United States - Japanese relations without en-
tei'ing into the ramifications of discussions with
third powers. The documents now released trace
United States relations with other countries and
organizations, including the League of Nations.
Background reports, analyses, and discussions of
the day-by-day situation relating to the Far East
are a significant part of this present record.
Among some of the interesting evidences of mod-
ern diplomacy in action may be cited trans- Atlantic
telephone conversations between Washington and
Geneva, London, and Paris.
The Foreign Relations volumes are prepared in
the Division of Research and Publication under the
direction of E. Wilder Spaulding, Chief of the
Division, and E. R. Perkins, Editor of Foreign
Relations. The volume now being released on
the Far East was comijiled by John Gilbert Reid.
The set of Foi^eign Relatio7is for 1931 will consist
of three volumes. Volumes I and II will appear
subsequently.
Copies of volume III (cviii, 1091 pages) may be
purchased from the Superintendent of Documents,
Government Printing Office, for $2.75 each.
Visit of General von der Becke
of Argentina
Pursuant to a request made by the Argentine
Embassy for General von der Becke, until recently
Chief of Staff of the Argentine Army, for an ap-
pointment to pay his respects to the Acting Sec-
retary, he was received on June 18 by Mr. Acheson
and Assistant Secretary Braden. General von
der Becke was accompanied by Sr. Enrique Ferrer
Vieyra, Counselor of the Argentine Embassy.
General von der Becke spoke at length in respect
to hemispheric defense. The Acting Secretary set
forth the position of this Government in keeping
with a statement made by Secretary Byrnes on
April 8, 1946.1
GERMAN-OWNED PATENTS CONFERENCE— ro«
finned from page 1112.
Francis C. Brown, Consultant to Alien Property
Custodian.
John Green, Director of the Office of Technical
and Scientific Services, Department of Com-
merce.
Rowland M. Sargeant, Chief, Division of Pat-
ents, Office of Alien Property Custodian.
James Simsarian, Special Assistant to the
United States Delegate to the Inter-Allied
Reparation Agency, Department of State.
Robert P. Terrill, Assistant Chief, Division of
International Resources, Department of
State.
The Conference is being held to consider the for-
mulation of principles for the opening up of Ger-
man-owned patents outside Germany, subject to
certain qualifications, on a reciprocal, non-exclu-
sive, and royalty-free basis.
' Bulletin of Apr. 21, 1946, p. 666.
1130
DEPARTMENT OF STATE BULLETIN
Trygve Lie Invited to Atomic
Bomb Tests
[Released to the press June 19]
Acting Secretary Acheson announced on June
19 that an invitation is being extended to Trygve
Lie, Secretary-General of the United Nations, to
witness the atomic bomb tests known as "Opera-
tion Crossroads."
Invitations have previously been extended to the
member states of the United Nations Atomic En-
ergy Commission to designate governmental and
press observers to "Operation Crossroads."
Visit of Uruguayan Librarian
Juan Silva Vila, Director of the National
Libi*ary of Uruguay, is visiting the United States,
at the invitation of the Department of State, to
study library techniques and methods. He is a
professor of literature in the University of Monte-
video, a member of the National Committee on
Intellectual Cooperation, and also a member of
the Subcommittee on Exchange of Publications
of this organization ; a member of the Commission
of the Artigas Archives, and Chief of its Depart-
ment of Publication, Filing, and Index.
Mr. Silva Vila will spend several weeks work-
ing with the Library of Congress and later will
visit libraries of universities in the northeastern
section of the United States.
The Foreign Service
Consular Offices
The American Consulate at Oran, Algeria, was closed
on May 0, 1940.
The American Consulate at Tunis, Tunisia, was raised
to the status of Consulate General on May 22, 1946.
The American Vice Consulate at Tapachula, Mexico,
was closed on May 31, 1946.
The American Consulate at Malmu, Sweden, was closed
March 24, 1946.
The American Consulate at Zagreb, Yugoslavia, was
established May 9, 1946.
The American Consulate at Horta, Fayal, Azores, was
closed to the public June 14, 1946.
The Congress
The Inter-American Military Cooperation Act. H. Rept.
2230, 79th Cong., To accompany H.R. 6326. 9 pp. [Favor-
able report.]
Investigation of Un-American Activities and Propa-
ganda. Report of the Committee on Un-American Activi-
ties, pursuant to H. Res. 5, (79th Congress), H. Rept. 2233,
79th Cong, ix, 73 pp.
Republic of the Philippines Military Assistance Act.
H. Rept. 2243, 79th Cong.; To accompany H.R. 6572. 5 pp.
[Favorable report.]
Establishing the Office of Under Secretary of State for
Economic Affairs. H. Rept. 2249, 79th Cong., To accom-
pany H.R. 6646. 3 pp. [Favorable report.]
Foreign Service Buildings Act. H. Rept. 2251, 79th
Cong., To accompany H.R. 6627. 4 pp. [Favorable
report.]
Government Corporations Appropriation Bill, 1947, H.
Rept. 2269, 79th Cong., To accompany H. R. 6777. 06 pp.
Implementation of the Financial Agreement Dated De-
cember 0, 1945, Between the United States and the United
Kingdom. H. Rept. 2289, 79th Cong., To accompany S.J.
Res. 138. 31 pp. [Favorable report.]
Reports to be Made to Congress. Letter from the Clerk
of the House of Representatives transmitting a list of
reports which it is the duty of any officer or Department
to make to Congress. H. Doc. 573, 79th Cong. 33 pp.
[Indexed.]
Supplemental Estimates of Appropriation for the De-
partment of State. Communication from the President
of the United States transmitting supplemental estimates
of appropriation for the fiscal year 1947 in the amount
of $l.."i40,S0O. for the Department of State. H. Doc. 631,
79th Cong. 2 pp.
Supplemental Estimates of Appropriation for the Philip-
pine War Damage Commission and the Department of
State. Communication from the President of the United
States transmitting supplemental estimates of appropria-
tion for the fiscal year 1947 in the amount of $66,000,000,
for the Philippine War Damage Commission and the De-
partment of State. H. Doc. 632, 79th Cong. 3 pp.
Supplemental Estimates of Appropriation for the State
Department. Communication from the President of the
United States transmitting supplemental estimates of ap-
propriation for the fiscal year 1947 in the amount of $730,-
000, for the Department of State. H. Doc. 659, 70th Cong.
2 pp.
Amending the Second War Powers Act, 1942, as
Amended. S. Rept. 14i4, 79th Cong., To accompany H.R.
5716. 4 pp. [Favorable report.]
Providing for the Return of Certain Securities to the
Philippine Commonwealth Government. S. Rept. 1420,
79th Cong., To accompany S. 2210. 4 pp. [Favorable
report. ]
Providing for United States Participation in the Philip-
pine Independence Ceremonies on July 4, 1946. S. Rept.
1421, 79th Cong., To accompany H.J. Res. 360. 1 p.
J [WE 30, 1946
1131
Authorizing the Naturalization of Filipinos. S. Rept.
1439, 79th Cong., To accompany H.R. 776. 3 pp.
Authorizing the Admission into the United States of
Persons of Races Indigenous to India, to make them
Racially EQigible for Naturalization. S. Rept. 1-140, 79th
Cong,, To accompany H.R. 3517. 3 pp.
Extending Temporarily the Time for Filing Applications
for Patents, for Taking Action in the United States Patent
Otfice with Respect Thereto, for Preventing Proof of Acts
Abroad with Respect to the Making of an Invention. S.
Rept. 1502, 79th Cong., To accompany H.R. 5223. [Favor-
able report.]
The Department
Dep
artmental Regulations
131.10 Office of Transport and Communications (TRC):
(Ett'ective 6-3-40)
I Responsibility. TRO shall be responsible for the
initiation and coordination of policy and action concern-
ing the international aspects of transport and communi-
cations.
II
Functions.
A The office of the Director shall direct and coordi-
nate the activities of the Divisions ; review and integrate
policies formulated in the Divisions ; represent the Depart-
ment of State on international bodies, and interdepart-
mental committees concerned with transportation and
ccunmunication matters; and establish and maintain ade-
quate liaison at the Office level and above within the
Department, and with other Government agencies.
B The otfice of the Executive Officer shall plan, rec-
ommend, and install methods and procedui-es designed to
improve the effectiveness of TRC ; advise as to the admin-
istrative feasibility of proposed programs ; represent TRC
on all management and administrative service matters,
and provide administrative services for TRC.
Ill
Relationships.
A TRC, which for the purpose of this paragraph
shall include the constituent Divisions of TRC, shall main-
tain continuous liaison with other offices of the Depart-
ment of State having an interest in policy and action in
connection with transport and communications, and shall
give consideration to the views of such offices. Other
offices of the Department shall refer to TRC all matters
concerning transport and communications.
B In the conduct of negotiations with foreign govern-
ments on transport and communications matters and in
the advance preparations for such negotiations, TRC shall
act in collaboration with all interested United States Gov-
ernment agencies and shall coordinate and integrate the
policy formulated in connection with such preparation.
IV Organization. TRC shall be headed by a Director
who shall report and be responsible to the Assistant Secre-
tary for Economic Affairs, and it shall consist of the fol-
lowing organization units :
A Office of the Director which shall consist of a
Director, a Deputy Dii-ector, and such a.ssistants and
advisers as may be necessary.
B Office of the Executive Officer.
C Aviation Division (AV).
D Shipping Division (SD).
E Telecommunications Division (TD).
131.11 Aviation Division (AV): (Effective 6-.3-46)
I Functions. AV shall initiate and coordinate policy
and action in all matters pertaining to the international
aspects of aviation, including the development and oper-
ation of airlines and air transportation, the handling of
problems relating to airports and air-navigation facilities,
and the acquisition of landing rights abroad ; and in
matters relating to international airmail. Specifically
AV shall :
A Conduct discussions and negotiations with for-
eign governments on civil-aviation matters and draft
agreements on this subject.
B . Assemble and analyze data and documents and
otherwise prepare for international aviation conferences,
and represent the Department on international bodies deal-
ing with aeronautical affairs.
C Maintain liaison with and/or representation on
interdepartmental committees and other government
agencies concerned with problems of aviation.
D Observe and review developments in the field of
aviation in the United States and other countries in order
to identify and advise on their implications to tlie foreign
policy of the United States, and disseminate pertinent in-
formation to offices of the Department and other govern-
ment agencies; collaborate in drafting instructions to
Foreign Service establishments regarding reports on mat-
ters of economic and political significance in the field of
aviation.
E Collaborate with the Civil Aeronautics Board, and
other government agencies, and with foreign agencies en-
gaged in similar activities, in planning and making ar-
rangements for training foreign aircraft and ground per-
sonnel in the United States and abroad.
F Collaborate with other offices of the Department
and other government agencies on matters relating to the
export of aircraft and aeronautical equipment.
G Obtain civil and military flight permits for United
States aircraft proceeding abroad and for foreign aircraft
visiting the United States and its possessions.
H Perform such additional functions as may be neces-
sary in the discharge of the assigned respousibilities.
II Organization. AV shall be composed of the follow-
ing organization units :
A Office of the Chief.
B Office of the Adviser on Air-Law.
C Planning and Coordination Section.
D Air Transport Section.
E Facilities Section.
F Technical Assistance Section.
1132
DEPARTMENT OF STATE BULLETIN
131.12 Shipping Division (SD): (Effective 6-3-46)
I Functions. SD shall initiate and coordinate policy
and action in all matters relating to the international
aspects of shipping. Specifically, SD shall :
A Conduct discussions and negotiations with foreign
governments on shipping matters and draft agreements
on this subject.
B Assemble and analyze data and documents and
otherwise prepare for international shipping conferences,
and represent the Department on international bodies
dealing with shipping affairs.
C Maintain liaison witli and/or repre.sentation on
other government agencies and interdepartmental com-
mittees concerned witli shipping problems.
D Observe and review develojiments in the mari-
time services and laws of the United States and other
countries in order to identify and advise on their im-
plications to the foreign policy of the United States, and
disseminate pertinent information to oflicers of the De-
partment and to other interested government agencies ;
collaborate in drafting instructions to Foreign Service
establishments regarding reports on matters of economic
and political signiticance in the maritime services and
shipbuilding industries of other countries.
E Initiate and coordinate policy and action relating
to international conventions concerning seamen, and ad-
vi.se Foreign Service establishments as to the handling
of individual cases.
F Perform such additional functions as may be
necessary in the discharge of the assigned responsibilities.
II Organization. SD shall be composed of tlie fol-
lowing organization units :
A Office of the Chief.
B Planning and Coordination Section.
C Traffic Section.
D Shipping Law and Treaties Section.
E Inland Transportation Section.
F Seamen Affairs Section.
131.13 Telecommunications Division (TD) : (Effective
6-3-46)
I Functions. TD shall initiate and coordinate policy
and action in all matters relating to the international
aspects of telegraph, telephone, cable, and postal com-
munications, and the technical aspects of radio. Specifi-
cally TD shall :
A Conduct discu.ssions and negotiations with foreign
governments on telecommunications matters and draft
agreements on this subject.
B Assemble and analyze data and documents and
otherwise prepare for international telecommunications
conferences, and represent the Department on interna-
tional bodies dealing with telecommunication affairs.
C Maintain liaison with and/or representation on
other government agencies and interdepartmental com-
mittees concerned with problems of postal and telecom-
munications affairs.
D Observe and review developments in the field of
telecommunications in the United States and other coun-
tries in order to identify and advise on their implications
to the foreign policy of the United States, and disseminate
pertinent information to offices of the Department and
other government agencies ; collaborate in drafting in-
structions to Foreign Service establishments regarding
reports on matters of economic and political significance
in the field of telecommunications.
E Perform such additional functions as may be nec-
essary to the discharge of the assigned responsibilities.
II Okganization. TD shall be composed of tlie follow-
ing organization units :
A Office of the Chief.
B Planning and Coordination Section.
C Telecommunications Law and Agreements Section.
D Communications Section.
E Technical Plans Section.
134.1 Assistant Secretary of State for Occupied Areas:
(Effective 4-8—46) For the purpose of this regulation,
the term "occupied areas" shall include Germany, Austria,
Japan, and Korea ; and the term "United States Policy"
shall mean all policy which requires concerted study, con-
sideration, or coordination by the State, War, and Navy
Departments.
I Functions. The Assistant Secretary of State for
Occupied Areas shall be directly responsible to the Secre-
tary of State for the coordination of State Department
policy with respect to all occupation matters. He shall be
the State Department member of the State-War-Navy Co-
ordinating Committee ( SWNCC) on all matters of occupa-
tion policy; and shall take the initiative in submitting to
SWNCC, or to any appropriate subcommittee thereof, such
policy matters as may require concerted study, considera-
tion, or action. All occupation policy matters or decisions
shall he presented by the State Department to SWNCC or
communicated outside of the State Department through
the Assistant Secretary of State for Occupied Areas or
with his concurrence.
II Depaetmental Secretariats. The coordination of
Departmental policy provided for in paragraph I, whether
political, cultural, or economic, shall be accomplished by
the Assistant Secretary of State for Occupied Areas, and
under his direction and control, through the mechanism of
the Secretariats as provided below.
A Germany-Ausfria Secretariat. The Departmental
position with respect to any and all matters of United
States policy in respect of Germany and/or Austria shall
be developed by a Secretariat organized and maintained
for the purpose under the Chairmanship and administra-
tion of the Chief, Division of Central European Affairs
(CE), Office of European Affairs (EUR). The Chairman
shall report and be responsible to the Assistant Secretary
with respect to the operation of his Secretariat.
B Japan-Korea Secretariat. The Departmental po-
sition with respect to any and all matters of United States
policy in respect to Japan and Korea shall be developed
by a Secretariat organized and maintained for the pur-
pose under the Chairmanship and administration of the
Director, Office of Far Eastern Affairs (FE), or his des-
]L!\E 30, 2946
1133
ignee. The Cliainuaii shall report and be respousible to
the Assistant Secretary with respect to the operation of
his Secretariat.
C: Mcmhcrs. Each Secretariat sliall iiicluile appro-
priate membership from the Oliices of Research and Intel-
ligence (OKI). luteriiational Information and Cultural
Affairs (OIC). EuroiH'ari Affairs (EUR), Far Eastern Af-
fairs (FE), Economic Security I'olicy (ESP), Financial
and Development Policy (OFD), Legal Adviser (Le) and
such other Oflices of the Department as the Chairman may
determine.
D Functions.
1 Each Secretariat shall hold stated meetings and
a record of its proceedings shall be maintained. Each
Chairman shall compile a list of projects and studies In
respect of occupational affairs, as suggested by the mem-
bers of the Secretariat. These projects shall be assigned
for study and preparation and submission to SWNCC on
the basis of relative urgency as determined by the Assist-
ant Secretary of State for Occupied Areas.
2 Subject to the approval of the Assistant Secre-
tary of State for Occupied Areas, each Chairman shall
prescribe the rules of conduct of his Secretariat, the
time and place of its meetings, and the functional
relationship thereof to the Central Secretariat (ESC)
of the Department. All interdepartmental liaison by
members of the Secretariat with respect to matters
within its cognizance shall be accomplished as the
Assistant Secretary of State for Occupied Areas may
determine.
3 Subject to the approval of the Assistant Secretary
of State for Occupied Areas, or by his direction the
Chairman of each Secretariat shall place matters on the
SWNCC agenda for consideration. He shall recommend
to the Assistant Secretary of State for Occupied Areas
duly qualified candidates for State Department member-
ship on any SWNCC subcommittee appointed to con-
sider any matter in respect of occupation affairs, and
no one shall be appointed as the State Department mem-
ber of any such subconmiittee of SWNCC without the
approval of, or clearance by, the Assistant Secretary of
State for Occupied Areas.
III Responsibility With Respect to REPtJCEES and
Displaced Persons. The Assistant Secretary of State for
Occupied Areas shall be responsible for the Coordination
of State Department policy and action with respect to
refugees and displaced persons and shall direct and super-
vi.se the activities of the Adviser on Refugees and Dis-
placed Persons (A-C/R). (Added 6-15-16)
IV Utiuzation of Departmental RESOtmcES. The
Directors of all Offices of the Department are hereby sev-
erally directed to take any and all action as may be
necessary or appropriate f\illy to implement the fore-
going. Upon the approval of the Assistant Secretary of
State for Occupied Areas, the Chairman of each Secretariat
established in paragraph II may apply from time to time,
or at any time, to the Assistant Secretary of State for
Administration for such personnel and facilities as, in
his opinion, may be necessary or appropriate for the proper
execution of the mi.ssion hereby assigned to such Secre-
tariat. The Assistant Secretary of State for Administra-
tion shall, to the extent necessary, in his opinion, levy on
any office or Division of the Department for such personnel
and facilities as the Secretariats may require. (Renum-
bered 6-15^6)
Training Announcements
Dr. Henry Lee Smith, Jr., has assumed his duties
in the Division of Training Services as Director of
Language Studies for the Department of State and
the Foreign Service.
Dr. Smith brings to his position a sound founda-
tion in the science of linguistics and a thorough
knowledge of the application of the principles of
that science as develoi)ed during the war. li'rora
October 19-12 to April 1940 he serve<l in the United
States Army where he was directly responsible for
the staff work which produced many of the new
techniques and new materials perfected for the
more rapid and efficient teaching of languages. This
work was carried on with the cooperation of the
Intensive Language I'rogram of the American Coun-
cil of Learned Societies. He also was in charge of
teaching English as a foreign language to selected
cooperative (ierman prisoners of war, employing
similar methods and techniques.
It is hoped that the language-training program
will be begun in the near future. The objective of
this program Is to equip every officer and other
employee of the Foreign Service with at least the
rudiments of the language of the country to which
he is assigned. Thorough and intensive courses
will be given where required, and it is contemplated
that equipment and materials will be shipped to
posts overseas in order to facilitate language train-
ing in the field.
Language training will also be made available to
such State Department personnel as require knowl-
edge of languages as an important factor in their
work.
Agricvilture in the Americas
The following article of interest to readers
of the Bulletin appeared in the May issue of
Agriculture in the Americas, a publication of the
Department of Agriculture, copies of which may
be obtained from the Superintendent of Docu-
ments, Government Printing Office, for 10 cents
each :
"Dominican Coffee", by RoUo P. Stovall, eco-
nomic analyst, American Embassy, Ciudad
Trujillo, Dominican Republic.
1134
DEPARTMENT OF STATE BULLETIN
Publications
Department of State
During the quarter beginning April 1, 1946, tlie
following publications liave been released by the
Department : ^
2459. Mutual Aid : Agreements Between the United
States of America and the Netherlands, including : Agree-
ment Relating to Supplies and Services, signed at Wash-
ington April 30, 1945, effective April 30, 1945; Accompany-
ing Memorandum and Exchange of Notes ; Agreement
Relating to Principles Applying to the Provision of Aid to
the Armed Forces of the United States ; and Exchanges of
Notes. Executive Agreement Series 480. 17 pp. 10<f.
2472. Charter of the United Nations (a poster). 2 pp.
Free.
2479. Health and Sanitation Program : Agreement Be-
tween the United States of America and Nicaragua —
Effected by exchange of notes signed at Managua March 30
and 31, 1944. Executive Agreement Series 484. 5 pp. 5^.
2480. Mutual Aid: Agreements Between the United
States of America and Belgium, including: Agreement
Relating to Supplies and Services, signed at Washington
April 17, 1945, effective April 17, 1945; Memorandum of
Interpretation; Exchanges of Notes; and Agreement Re-
lating to Principles Applying to the Provision of Aid to
the Armed Forces of the United States. Executive Agree-
ment Series 481. 18 pp. 54.
2481. Health and Sanitation Program : Agreement Be-
tween the United States of America and Chile — Effected
by exchange of notes signed at Santiago May 5 and 11, 1943.
Executive Agreement Series 485. 5 pp. 5^.
2484. The United States and the United Nations. Re-
port of the U. S. Delegation to the First Part of the First
Session of the General Assembly of the United Nations,
London, England, January 10 to February 14, 1946. Con-
ference Series 82. X, 54 pp. 150. (Reprinted.)
2485. The British Loan. Message of President Tru-
man to the Congress, January 30, 1946. Address by
Secretary of State Byrnes before the Foreign Policy Asso-
ciation, February 11, 1946. Commercial Policy Series 85.
26 pp. 10«'.
2487. Armistice : Agreement Between the United States
of America, the Union of Soviet Socialist Republics, and
the United Kingdom, and Rumania, together with Annex,
Protocol and Letter of September 12, 1944 — Agreement
and protocol signed at Moscow September 12, 1944; effec-
tive September 12, 1944. Executive Agreement Series 490.
17 pp. lOif.
2488. Anglo-American Committee of Iniiuiry: Agree-
ment Between the United States of America and the
United Kingdom of Groat Britain and Northern Ireland —
Effected by exchange of notes signed at Washington De-
cember 10, 1945. Executive Agreement Series 491. 2 pp. 5^.
2489. Commercial Relations : Agreement Between the
United States of America and Italy — Effected by exchange
of notes signed at Washington December 6, 1945. Execu-
tive Agreement Series 492. 2' pp. 5((.
2491. The International Court of Justice. Selected
Documents Relating to the Drafting of the Statute. Con-
ference Series 84. 167 pp. $1.
2492. Address by the Honorable James F. Byrnes, Sec-
retary of State. February 28, 1946. 14 pp. 50.
2493. The Department of State Bulletin, vol. XIV, no.
350, March 17, 1946. 52 pp. lO^i.^
2494. Diplomatic List, March 1946. 145 pp. Subscrip-
tion, .$2 a year ; single copy 20^.
2495. Jurisdiction Over Prizes : Agreement Between the
United States of America and the United Kingdom of
Great Britain and Northern Ireland for India (and Procla-
mation)— Agreement effected by exchange of notes signed
at London June 10 and September 24, 1943. Executive
Agreement Series 489. 5 pp. 5^'.
249ti. The Department of State Bulletin, vol. XIV, no.
351, March 24, 1946. 48 pp. 10^.
2497. Report of the Delegation of the United States of
America to the Inter-American Conference on Problems
of War and Peace, Mexico City, Mexico, February 21-
Mareh 8, 1945. Conference Series 85. 371 pp. 55«*.
2498. A Report on the International Control of Atomic
Energy, xiii, 61 pp. 20^. (Reprinted twice.)
2499. Air Transport : Agreement Between the United
States of America and Other Powers — Opened for signa-
ture at Chicago December 7, 1944, and signed for the
United States of America December 7, 1944; accepted by
the United States of America February 8, 1945, with
an understanding. Executive Agreement Series 488.
9 pp. 54.
2500. The Department of State Bulletin, vol. XIV, no.
352, March 31, 1946. 44 pp. 10«i.
2501. Air Services Transit Agreement Between the
United States of America and Other Powers — Opened for
signature at Chicago December 7, 1944 and signed for the
United States of America December 7, 1944 ; accepted by
the United States of America February 8, 1945, with
an understanding. Executive Agreement Series 487.
8 pp. 5(*.
2502. Relations Between Armed Forces in Iceland :
Agreement Between the United States of America and
Norway — Effected by exchange of notes signed at London
' Serial numbers which do not appear in this list have
appeared previously or will appear in subsequent lists.
■ Subscription, $3.50 a year ; trial subscription for 13
weeks, $1 (renewal only on yearly basis).
JUNE 30, 1946
1135
August 28, 1942; effective August 28. 1942. Executive
Agreement Series 497. 3 pp. .'')<?.
2503. Cultural Centers in tlie Other American Repub-
lics. Article by Dorothy Greene and Sherly Goodman
E.sujiin, Department of State. 20 pp. Free.
2504. Surrender by Japan : Terms Between the United
States of America and the Other Allied Powers and Japan
(together with proclamation by the Emperor of Japan) —
Terms signed at Tokyo Bay September 2, 1945; effective
September 2, 1945. Executive Agreement Series 493. 7
pp. 5i}.
2505. Agreement Regarding Japan : Agreement Between
the Leaders of the Three Great Power.s— The United
States of America, the Union of Soviet Socialist Repub-
lics, and the United Kingdom of Great Britain and North-
ern Ireland— Signed at Yalta February 11, 1945. Execu-
tive Agreement Series 498. 4 pp. 5^.
2506. The Department of State Bulletin, vol. XIV, no.
353, April 7, 1946. 52 pp. 10«!.
2507. Military Mission : Agreement Between the United
States of America and Costa Rica — Signed at Washington
December 10, 1945; effective December 10, 1945. Execu-
tive Agreement Series 486. 12 pp. 5<S.
2508. The Department of State Bulletin, vol. XIV, no.
354, April 14, 1946. 48 pp. 10«(.
2509. Diplomatic List, April 1946. 145 pp. Subscrip-
tion, $2 a year ; single copy 20<f.
2510. Recent Publications of the Department of State,
1946. 4 pp. Free.
2511. International Bank for Reconstruction and De-
velopment : Articles of Agreement Between the United
States of America and Other Powers — Formulated at the
United Nations Monetary and Financial Conference at
Bretton Woods, New Hampshire, July 1 to 22, 1944 ; signed
at Washington December 27, 1945 ; effective December 27,
1945. Treaties and Other International Acts Series 1502.
33 pp. lO^".
2512. International Monetary Fund : Articles of Agree-
ment Between the United States of America and Other
Powers — Formulated at the United Nations Monetary and
Financial Conference at Bretton Woods, New Hampshire,
July 1 to 22, 1944 ; signed at Washington December 27,
1945; effective December 27, 1945. Treaties and Other
International Acts Series 1501. 43 pp. 10^.
2513. Commercial Relations : Agreement Between the
United States of America and Greece — Effected by ex-
change of notes signed at Washington January 2 and 11,
1946. Treaties and Other International Acts Series 1505.
2 pp. 5t
2514. Commercial Relations : Agreement Between the
United States of America and Colombia relating to waiver
in respect of tariff preferences accorded Ecuador by Co-
lombia under a treaty of commerce between Colombia and
Ecuador signed July 6, 1942, as amended October 14,
1943 — Effected by exchange of notes signed at Bogota
April 17, 1945. Executive Agreement Series 496. 4 pp.
54.
2515. Surrender by Germany : Terms Between the
United States of America and the Other Allied Powers
and Germany — Signed at Bheims May 7, 1945 and at
Berlin May 8, 1945; effective May 8, 1945. Executive
Agreement Series 502. 10 pp. 5^.
2516. The Department of State Bulletin, vol. XIV, no.
355, April 21, 1946. 44 pp. 10«S.
2517. Foreign Service List, January 1, 1946. 147 pp.
Sub.scription, 50^^ a year, single copy 204.
2518. Report to Congress on Foreign Surplus Disposal.
April 194G. 54 pp.
2.519. The Department of State Bulletin, vol. XIV, no.
356, April 28, 1946. 48 pp. 10(f.
2520. Atomic Energy : Agreed Declaration by the Presi-
dent of the United States of America, the Prime Minister
of the United Kingdom, and the Prime Minister of Can-
ada— Signed at Washington November 15, 1945. Treaties
and Other International Acts Series 1504. 5 pp. 54-
2.521. Exchange of Information on Penicillin : Agree-
ment Between the United States of America and the
United Kingdom of Great Britain and Northern Ireland —
Effected by exchange of notes signed at Washington
January 25, 1946; effective December 1, 1943. Treaties
and Other International Acts Series 1506. 14 pp. 5^.
2522. Report of the Allied Mission to Observe the Greek
Elections. 36 pp.
2523. Military Mission to Honduras : Agreement Be-
tween the United States of America and Honduras — Signed
at Washington December 28, 1945 ; effective December 28,
194.5. Treaties and Other International Acts Series 1503.
10 pp. 54.
2524. The Department of State Bulletin, vol. XIV, no.
357, May 5, 1946. 44 pp. 10<f.
252G. The Department of State Bulletin, vol. XIV,
no. 358, May 12, 1946. 48 pp. 104-
2527. Diplomatic List, May 1946. 145 pp. Subscription,
$2 a year ; single copy 20^.
2530. Liberated Prisoners of War and Civilians : Agree-
ment Between the United States of America and the Union
of Soviet Socialist Republics — Signed in the Crimea Febru-
ary 11, 1945 ; effective February 11, 1945. Executive
Agreement Series 505. 9 pp. 54-
2533. The Department of State Bulletin, vol. XIV, no.
359, May 19, 1946. 44 pp. IO4.
2534. Suggestions as to the Method and Character of
Representations to the Committee for Reciprocity Infor-
mation. Commercial Policy Series 86. 5 pp.
2536. Anglo-American Committee of Inquiry. Near
Eastern Series 2. 92 pp.
2537. Paris Meeting of Foreign Ministers. Report of
Secretary Byrnes, May 20, 1946. Conference Series 86.
16 pp.
2538. The Department of State Bulletin, vol. XIV, no.
360, May 26, 1946. 48 pp. 104-
2541. The Department of State Bulletin, vol. XIV, no.
361, June 2, 1946. 52 pp. 100.
2543. The Proclaimed List of Certain Blocked Nationals,
Cumulative Supplement No. 3, June 6, 1946, to Revision X
of December 20, 1945. 20 pp. Free.
2544. The Department of State Bulletin, vol. XIV, no
362, June 9, 1946. 48 pp. 10^.
2549. Seventh Report to Congress on Operations of
UNRRA, as of March 31, 1946. 62 pp.
Tre.\tt Series
994. Utilization of Waters of the Colorado and Tijuana
1136
DEPARTMENT OF STATE BULLETIIS
Rivers and of the Rio Grande : Treaty Between the United
States of America and Mexico, and Protocol — Treaty
signed at Washington February 3, 1944, protocol signed at
Washington November 14, 1944; ratified by the President
of the United States November 1, 1945, subject to certain
understandings; ratified by Mexico October IG, 1945; pro-
claimed by the President of the United States November
27, 1945, subject to said understandings; effective Novem-
ber S, 1945. 57 pp. 15^.
The Department of State publications ehtitled Treaty
Scries and Executive Agreement Series have been discon-
tinued. The Treaties and Other International Acts Series
has been inaugurated to make available in a single series
the texts of treaties and otiier instruments (such as con-
stitutions and charters of international organizations, dec-
larations, agreements effected by exchanges of diplomatic
notes, et cetera) establishing or defining relations be-
tween the United States of America and other countries.
The texts printed in the present series, as in the Treaty
Scries and Executive Agreement Scries, are authentic and,
in appropriate cases, are certified as such by the Depart-
ment of State. The Treaties and Other International Acts
Series begins with the number 1501, the combined num-
bers in the Treaty Series and Executive Agreement Scries
having reached 1500, the last number in the Treaty Series
being i;94 and the last number in the Executive Agreernent
Scries being .500.
The Department of State also publishes the United
States Statutes at Large which contain the laws of the
United States and concurrent resolutions of Congress,
proclamations of the President, treaties, and international
agreements other than treaties. The Statutes are issued
after adjournment sine die of each regular session of Con-
gress. The laws are also published in separate prints,
popularly known as slip laws, immediately after enact-
ment. These are issued in two series : Public Laws and
Private Laws, consecutively numbered according to the
dates of approval or the dates upon which bills or joint
resolutions otherwise become law pursuant to the provi-
sions of the Constitution. Treaties also are issued in a
special series and are numbered in the order in which
they are proclaimed. Spanish, Portuguese, and French
translations, prepared by the Department's Central Trans-
lating Division, have their own publication numbers run-
ning consecutively from 1. All other publications of the
Department since October 1, 1929 are numbered consecu-
tively in the order in which they are sent to press ; in
addition, some of them are subdivided into series accord-
ing to general subject.
To avoid delay, requests for publications of the Depart-
ment of State should be addressed direct to the Superin-
tendent of Documents, Government Printing Office, Wa.sh-
ington 2.">, D. C, except in the case of free publications,
which may be obtained from the Department. The Super-
intendent of Documents will accept deposits against which
the cost of publications ordered may be charged and will
notify the depositor when the deposit is exhausted. The
cost to depositors of a complete set of the publications of
the Department for a year will probably be somewhat in
excess of $15. Orders may be placed, however, with the
Superintendent of Documents for single publications or
for one or more series.
The Superintendent of Documents also has, for free
distribution, the following price lists which may be of
interest: Foreign Relations of the United States; Ameri-
can History and Biography; Laws; Commerce and Man-
ufacture; Tariff; Immigration; Alaska and Hawaii: Insu-
lar Possessions; Political Science; and Maps. A list of
publications of the Bureau of Foreign and Domestic Com-
merce may be obtained from the Department of Commerce.
/
Contents continued
^
Cultural Cooperation Page.
Visit of Uruguayan Librarian 1130
The Foreign Service 1130
The Congress 1130
The Department
Departmental Regulations 1131
Publications
Publication of "Papers Relating to the Foreign Relations of
the United States, 1931", Volume III 1129
Quarterly List of Department of State 1134
Agriculture in the Americas 1133
Training Announcements 1133
U. S, GOVERNMENT PRINTING OFFICE: 1946
}
llmiK,';,V,?>'C LIBRARY
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